Public Storage

Core FFO in 2Q26 was $4.17 per share, down year over year and sequentially due to higher financing costs and G&A. Same-store revenue declined 0.6% and same-store NOI declined 2.2%, both ahead of internal expectations. Occupancy was 92.5%, up 0.2% year over year, and average move-in rents turned positive at 1.6%. Expense growth was 4.4% in the quarter, while non-same-store NOI grew 22% and ancillary NOI grew 15%. For 2026, management raised same-store revenue guidance to a midpoint of -0.2% and same-store NOI to -1.1%, and raised core FFO guidance to $16.75-$17.05 per share. Management also said LA County now represents a -50 basis point same-store revenue headwind this year, improved from the prior -80 basis point assumption, and that financing benefits from NSA and PS Canada should add about $0.02 per share to 2026 core FFO versus prior neutral expectations.

Tom Boyle framed the quarter as the launch of “PS4.0,” emphasizing greater energy, urgency, and a sharper focus on per-share value creation. He highlighted four pillars: the NSA closing, the Canada acquisition, continued PSNext operating improvements, and a strengthening “Own It” culture. His tone was optimistic and execution-oriented, with repeated emphasis on building blocks for stronger growth in the second half and into the next several years.

Joe Fisher focused on improving operating momentum and balance sheet strength. He cited core FFO of $4.17 per share, same-store revenue of -0.6%, same-store NOI of -2.2%, occupancy of 92.5%, and move-in rents up 1.6%, then said guidance was raised across all key metrics. He outlined 2026 core FFO guidance of $16.75-$17.05 per share, said the Canada/NSA financing mix should be about $0.02 per share positive this year, and pointed to about $12 billion of capital markets activity year to date, including $5.9 billion announced subsequent to quarter-end. He also noted $3.8 billion of available liquidity at quarter-end, net debt to EBITDA of 2.9x, and net debt plus preferred equity to EBITDA of 4.2x.

Analysts focused on LA County repricing after the state-of-emergency restrictions expired, and management said it expects a measured phased recapture rather than an immediate reset to market rates. Questions also centered on NSA integration and synergies; management said it has already identified expansion opportunities and roughly 14,000 units that could be brought back online, while saying confidence in top-line, bottom-line, and ancillary synergy execution has increased. Other questions probed whether the strong 2H guidance depends mainly on LA, and management said LA helps but is not the sole driver; coastal and Midwest markets are already growing 2%-4%, and Sunbelt conditions are improving sequentially though still uneven.