Public Storage raises 2026 Core FFO per share guidance after third-quarter results

Public Storage (PSA) raised its 2026 guidance on Monday as it reported third-quarter results. The company said in a press release that Core funds from operations, or Core FFO, was $4.34 per share, while net income per diluted share fell to $1.69 from $2.62 a year earlier.

Here's how the company did:

• Net income per diluted share: $1.69 vs. $2.62 a year earlier
• Core FFO per share: $4.34 vs. $4.31 a year earlier
• Total revenues: $1.37 billion vs. $1.22 billion a year earlier
• Nine-month net income per diluted share: $6.92 vs. $6.42 a year earlier
• Nine-month Core FFO per share: $12.74 vs. $12.71 a year earlier

Total revenues rose to $1.37 billion from $1.22 billion. Self-storage facility revenue rose to $1.25 billion from $1.14 billion a year earlier, and ancillary operations revenue rose to $112.1 million from $85.2 million.

Same Store revenue rose 0.5% to $1.02 billion, and net operating income rose 0.5% to $768.8 million. Average occupancy across the 2,755 Same Store Facilities was 92.2%, up from 91.9%. That pool covers 192.1 million net rentable square feet, about 71% of the U.S. consolidated portfolio.

Non-Same Store facilities, a group of 1,017 acquisition, development and expansion facilities still in lease-up, grew revenue 90.8% and net operating income 91.8% during the quarter.

Raised 2026 guidance

Public Storage raised its previously provided 2026 guidance for Core FFO per share to $16.90 to $17.10, from $16.75 to $17.05. The midpoint rose by $0.10.

Same Store revenue growth is now between 0% and 0.5%, up from a range of a 0.7% decline to 0.3% growth. Same Store net operating income growth is now a decline of 0.8% to growth of 0.2%, from a decline of 2.0% to 0.3%.

Same Store expense growth is now projected at 1.5% to 2.5%, from 2.0% to 3.0%. Non-Same Store net operating income is now guided at $355 million to $363 million, from $343 million to $357 million. The company said that figure excludes the impact of NSA and PS Canada.

CEO Tom Boyle said, “We continue to post encouraging trends on churn, occupancy, and move-in rates, which drove positive Same Store revenue, NOI and Core FFO per share growth.”

Chief Revenue and Marketing Officer Ayash Basu said, “During the third quarter, we saw lower customer churn, higher occupancy and strong move-in rates.”

Acquisitions

Public Storage completed its all-stock acquisition of National Storage Affiliates (NSA) on July 22, 2026, expanding its portfolio to over 4,500 locations and more than 327 million operating square feet.

The company completed its acquisition of Public Storage Canada on Sept. 1, 2026, for US$1.2 billion including assumed debt. The portfolio has 68 properties totaling 5.3 million square feet. Sellers may also receive up to 768,000 PS OP Units if certain NOI performance targets are achieved.

For NSA, the company expects about $110 million to $130 million of run-rate synergies within the next three to four years. The company cites an enhanced customer experience, NOI opportunity, tenant reinsurance uplift and G&A savings as sources.

Transaction and integration expense was $114.6 million in the quarter, compared with none a year earlier.

Capital markets activity and balance sheet

President and Chief Financial Officer Joe Fisher said, “This activity has fully funded the acquisitions of NSA and Public Storage Canada, while enhancing our liquidity and financial flexibility.”

Year to date, the company has completed $6.2 billion of debt capital markets activity and $6.0 billion of common share and partnership unit issuance or committed issuance.

Total indebtedness was $12.2 billion at Sept. 30, with $650 million, or 5.3%, maturing in the fourth quarter of 2026. Liquidity was about $4.1 billion.

In the quarter, the company issued C$400 million of senior notes in its first Canadian offering, at 4.54%. It also issued $900 million of senior notes at an effective rate of 4.85%, after giving effect to related derivative hedging activities.

Through Oct. 26, the company had entered forward sale agreements under its at-the-market program for 1,230,141 common shares at a weighted average price of $326.51. The company expects those agreements to generate about $399 million of net proceeds upon settlement.

Net debt to EBITDA, or earnings before interest, taxes, depreciation and amortization, was 3.4 times at Sept. 30, up from 3.0 times a year earlier. Moody's and S&P ratings were unchanged at A2 and A.

Depreciation and amortization rose to $412.6 million from $290.4 million. General and administrative expense was $38.3 million, up from $28.8 million, and executive severance and CEO transition costs totaled $7.5 million. The filing does not disclose headcount changes.

At Sept. 30, the company owned and/or operated 4,764 self-storage facilities with about 339 million net rentable square feet in 42 states, Puerto Rico and Canada.