Summary of Public Storage Q2 2026 Earnings Call

1Key Financial Results and Metrics

Core FFO: $4.17 per share, down year-over-year, with a sequential decrease from Q1 due to higher financing costs and G&A.

Same Store Revenue Growth: -0.6%; Same Store NOI Growth: -2.2%, both exceeding internal expectations.

Occupancy Rate: 92.5%, up 0.2% year-over-year.

Average Move-In Rent: Increased by 1.6%, marking the first positive growth since 2021.

Expense Growth: 4.4% for the quarter, primarily driven by property taxes and marketing.

Non-Same Store NOI Growth: 22% and ancillary growth at 15%, contributing positively to overall results.

2Strategic Updates and Business Highlights

NSA Acquisition: Successfully integrated a portfolio of 1,100 stores and 575,000 units, marking a significant milestone in their PS 4.0 strategy.

Public Storage Canada Acquisition: Announced acquisition of a high-quality portfolio in Canada, expected to enhance growth opportunities in an underpenetrated market.

PSNext Operating Platform: Continues to improve customer experience and operational efficiency, with positive leading indicators and a focus on technology-driven enhancements.

Own It Culture: Launched to foster accountability and urgency within the organization, aiming to align teams with strategic goals.

3Forward Guidance and Outlook

Guidance Raised: Revenue and NOI growth forecasts improved to -0.2% and -1.1%, respectively, with expectations for positive revenue growth in Q4 2026.

Core FFO Guidance: Increased to a range of $16.75 to $17.05 per share, reflecting improved same-store performance and financing benefits from acquisitions.

Future Demand: Anticipated growth driven by demographic trends as Millennials and Gen Z age into core storage usage years.

4Bad News, Challenges, or Points of Concern

Same Store Revenue and NOI Decline: Continued challenges with negative growth metrics, particularly in Sunbelt markets.

Expense Pressures: Increased expenses due to property taxes and marketing, alongside higher G&A costs.

LA Market Dynamics: While the expiration of rent restrictions is expected to provide a revenue boost, there may be a temporary increase in turnover as market rates are adjusted.

Competitive Pressures: New supply in certain markets continues to impact pricing power and occupancy rates.

5Notable Q&A Insights

LA Revenue Recovery: Management indicated a phased approach to recapturing revenue in LA post-state of emergency, with expectations for gradual improvement.

Integration Synergies: Confidence in identifying additional revenue and cost synergies from the NSA acquisition, with plans for micro-market focused strategies.

Demand Trends: Steady demand noted across various markets, with some regions showing signs of improvement, particularly in coastal and Midwest areas.

Acquisition Strategy: Emphasis on targeting micro-markets for future acquisitions, balancing near-term dilution with long-term growth potential. Overall, Public Storage's Q2 2026 results reflect a mix of strategic advancements and ongoing challenges, with a cautiously optimistic outlook for the second half of the year driven by recent acquisitions and improving operational metrics.