Public Storage (PSA) Earnings

metirFinance

Sep 2026upcoming

Next quarter

Reports Nov 4, 2026.

Consensus is $4.30 EPS for Sep 2026 across 6 estimates, ranging $4.25 to $4.39.

PSA Jun 2026

Reported Jul 29, 2026

: 1.88%
: -3.64%

: $4.25
: $4.17
: —
: $1.23B

Reported results

: $1.23B; from $1.20B
: $466.68M; from $500.00M
: 37.85%; from 41.63%
: $499.96M; from $358.42M
: $2.55; from $1.76

Highlights

Core FFO: Core FFO per share was $4.17, down 2.6% from $4.28 a year ago, $0.04 below the $4.21 prior-quarter level and 1.88% below the $4.25 consensus estimate.
Guidance: Public Storage raised 2026 Core FFO guidance to $16.75-$17.05 per share from $16.35-$17.00, while lifting the same-store NOI growth range to negative 2.0% to negative 0.3% from negative 3.9% to negative 0.5%.
Same-store pressure: Same-store revenue fell 0.6% to $1.01 billion and NOI declined 2.2% to $746.4 million, as realized rent per occupied square foot fell 0.8% and costs rose 4.4%, despite average occupancy improving to 92.5%.
External growth: Non-same-store revenue and NOI increased 25.6% and 21.5%, respectively, driven by acquired, developed and expanded facilities; Public Storage acquired 20 facilities for $222.5 million during the quarter.
NSA merger: The company closed its all-stock National Storage Affiliates merger on July 22, expanding the platform to more than 4,500 locations and 327 million square feet, with expected run-rate synergies of $110 million-$130 million over three to four years.
PS Canada: Public Storage agreed to acquire PS Canada for $1.2 billion, comprising 68 properties and 5.3 million square feet, with an additional $288 million earn-out tied to NOI targets; closing is expected in the third quarter.
Capital markets: Public Storage ended June with $10.3 billion of debt, 2.9x net debt to EBITDA and approximately $3.8 billion of liquidity, while adding a $3.0 billion revolver, a $500 million delayed-draw term loan and a $1.0 billion commercial paper program.
Net income: Net income allocable to common shareholders rose 45.7% to $450.3 million, or $2.55 per diluted share, largely because the prior-year quarter included a $146.1 million foreign-exchange loss versus a $17.2 million gain this quarter.

Analysis

Public Storage’s second quarter was a mixed operating print but a stronger strategic quarter. Core FFO per share of $4.17 missed the $4.25 consensus estimate by 1.88%, declined from $4.28 a year ago and was below the implied $4.21 in the first quarter. Revenue of $1.23 billion increased 2.6% year over year and was slightly above the $1.22 billion prior-quarter level, while operating income of $466.7 million fell from $500.0 million a year ago and $474.3 million in the first quarter. Net income was $500.0 million, versus $358.4 million a year ago and $526.3 million in the prior quarter.

The core issue was still pressure in the stabilized portfolio: same-store revenue declined 0.6% and NOI fell 2.2% as rent per occupied square foot decreased 0.8% and costs rose 4.4%, principally from property taxes, marketing and other operating expenses. That weakness was offset by 25.6% revenue growth and 21.5% NOI growth in the non-same-store pool, alongside higher ancillary income. Management nevertheless raised full-year guidance, supported by first-half performance and expected external-growth accretion. The NSA merger closed after quarter-end, PS Canada is pending, and a substantial capital-markets program has been assembled to fund expansion while maintaining leverage.

Earnings and guidance

The quarter’s recurring earnings were modestly below expectations, even as management characterized the first half as strong enough to support a higher full-year outlook. Core FFO per share declined 2.6% year over year to $4.17, compared with $4.28 in the second quarter of 2025 and an implied $4.21 in the first quarter. The reported $2.55 diluted EPS was not the best measure of operating performance because foreign-exchange movements materially affected GAAP earnings.

Full-year outlook: Core FFO guidance increased to $16.75-$17.05 per share from $16.35-$17.00, a $0.22 increase at the midpoint. The company expects $0.02 of near-term accretion from financing the NSA and PS Canada transactions.
Operating guidance: Same-store NOI growth guidance improved to negative 2.0% to negative 0.3%, from negative 3.9% to negative 0.5%. Non-same-store NOI guidance rose to $343 million-$357 million from $335 million-$355 million.
Cost structure: General and administrative expense rose 72.5% to $44.4 million, reflecting $4.7 million of NSA transaction and integration costs, $4.2 million of transformation costs and $5.1 million of executive severance and CEO transition costs.

Same-store operations

The stabilized portfolio, representing 2,755 facilities and approximately 192.1 million square feet, remained the principal operating drag. Occupancy was healthy, but pricing and expense trends were unfavorable. Management attributed lower realized rents to lower average rates on move-ins relative to move-outs and expects same-store revenue to be modestly below 2025 levels for the full year.

Revenue and NOI: Same-store revenue decreased 0.6% to $1.01 billion, while NOI fell 2.2% to $746.4 million. The gross margin after indirect costs contracted to 74.2% from 75.4%.
Occupancy and rent: Average occupancy increased 0.2 percentage points to 92.5%, while realized annual rent per occupied square foot declined 0.8% to $21.89. At quarter-end, occupancy was 92.4% and annual contract rent per occupied square foot was $22.09, down 0.7%.
Expenses: Same-store operating costs rose 4.4% to $260.2 million. Property taxes increased 5.9% to $111.4 million, marketing increased 6.3% to $22.0 million, and other direct property costs rose 5.4% to $27.9 million.
Customer activity: Same-store churn declined to 18.2% from 19.6%, but move-in square footage decreased 5.2% and promotional discounts increased 16.1% to $17.7 million.

External growth platform

Growth outside the stabilized portfolio continued to compensate for same-store weakness. Public Storage’s 441 non-same-store facilities generated 25.6% revenue growth and 21.5% NOI growth during the quarter. Acquired-facility NOI rose 34.8% to $50.9 million, while developed and expanded facility NOI increased 9.0% to $32.8 million.

NSA: The July 22 all-stock merger added more than 1,000 properties and 69 million square feet before the formation of a joint venture containing 313 properties valued at approximately $3.3 billion. Public Storage expects $110 million-$130 million of run-rate synergies within three to four years and $0.35-$0.50 of eventual annualized FFO accretion per share.
PS Canada: The proposed $1.2 billion acquisition includes 68 properties in major Canadian markets and will be funded with approximately $889 million of Public Storage OP units and $310 million of cash. The filing also discloses a $288 million potential earn-out based on NOI performance.
Pipeline: Public Storage acquired or was under contract to acquire 44 facilities totaling 3.2 million square feet for $454.9 million through quarter-end and subsequent activity. Its development and expansion pipeline totals 4.0 million square feet at an estimated cost of $691.7 million, with $431.6 million still to be spent.

Capital markets and liquidity

The company used the quarter to prepare its balance sheet for the NSA and PS Canada expansion rather than to reduce absolute leverage materially. Debt stood at $10.3 billion at June 30, with a 3.3% weighted-average interest rate, 2.9x net debt to EBITDA and $650 million, or 6.3%, maturing in 2026. The capital structure remains highly rated at A2 by Moody’s and A by S&P.

New facilities: Public Storage replaced its $1.5 billion revolver with a $3.0 billion unsecured revolver maturing in 2030, added a $500 million delayed-draw term loan maturing in 2031, and established a $1.0 billion commercial paper program.
Debt issuance: The company issued $500 million of senior notes at a fixed 5.00% rate due 2035 during the quarter and issued another $900 million after quarter-end at an effective rate of 4.855%.
Equity capacity: Forward sales under the ATM program covered 796,009 shares through July 29 at a weighted average price of $326.32, representing approximately $258 million of future net proceeds.
Liquidity: Cash, undrawn credit capacity and expected retained cash flow provided approximately $3.8 billion of liquidity. The company had no borrowings under the new credit facility at June 30, although $800 million of commercial paper was outstanding as of July 29.

Ancillary income

Ancillary operations provided a meaningful offset to the same-store decline. Revenue increased 12.7% to $92.9 million and ancillary NOI rose 15.3% to $56.6 million, led by tenant reinsurance and a growing third-party management footprint.

Tenant reinsurance: Premium revenue increased 11.8% to $68.9 million and NOI rose 15.8% to $53.9 million, supported by a larger customer base, increased coverage and higher premium rates.
Third-party management: Revenue increased 19.1% to $17.1 million, although NOI declined to $0.5 million from $0.7 million as the company invested in expanding the program.
Scale: Public Storage added 22 facilities net to its management program during the quarter and had 463 facilities managed or under contract, totaling 34.2 million square feet, including 68 facilities under construction.

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