Public Storage Q2 Earnings Call Highlights

Public Storage raised its 2026 guidance as operating trends improved, including higher occupancy and move-in rents. Core FFO guidance increased to $16.75–$17.05 per share, while same-store revenue and NOI forecasts were upgraded. The company completed its acquisition of National Storage Affiliates, adding roughly 1,100 stores and 575,000 units, and expects to close its $1.2 billion acquisition of Public Storage Canada in the third quarter. Public Storage maintains a strong financial position, with $3.8 billion in available liquidity, net debt to EBITDA of 2.9 times and significant debt-market access. It also reported more than $450 million in property acquisitions and a $692 million development pipeline year to date.

Public Storage NYSE: PSA said its second-quarter operating trends improved and raised its 2026 guidance, while highlighting the completed acquisition of National Storage Affiliates and a planned entry into Canada through the acquisition of Public Storage Canada. Core funds from operations totaled $4.17 per share in the second quarter, down from a year earlier and sequentially, which President and CFO Joe Fisher attributed to higher financing costs and general and administrative expenses. Same-store revenue declined 0.6% year over year and same-store net operating income fell 2.2%, though both measures exceeded the company’s internal expectations.

The company reported improving forward-looking operating indicators. Average move-in rents increased 1.6%, marking the first time since 2021 that both move-in rates and occupancy rose year over year, Fisher said. Occupancy was 92.5%, up 20 basis points from the prior year, while move-in rates rose 18% from the fourth quarter of 2025.

Public Storage raised its full-year outlook across key metrics. The company now expects same-store revenue growth at a midpoint of negative 0.2% and same-store NOI growth at a midpoint of negative 1.1%, representing improvements of 90 basis points and 110 basis points, respectively, from its previous guidance. The revised outlook assumes positive low-double-digit new move-in rate growth, compared with a prior expectation for mid-single-digit declines, and occupancy growth of 30 basis points year over year, versus a previous assumption of flat occupancy. Core FFO guidance was increased to a range of $16.75 to $17.05 per share, with a midpoint of $16.90, a $0.22-per-share increase from the prior forecast. Fisher said the increase reflects stronger same-store trends, lower-than-expected interest expense, and contributions from non-same-store properties and ancillary businesses, partly offset by higher G&A expenses.

Public Storage expects same-store revenue growth to improve in the second half of the year and turn positive in the fourth quarter. Fisher said the company’s performance in Los Angeles, where pricing restrictions have expired, will contribute to that improvement but will not be the sole driver. Stronger coastal and Midwestern markets, along with improving Sun Belt conditions, are also expected to help. CEO Tom Boyle said June move-in rents were up 4% year over year, aided by a more consistent year-over-year promotional strategy, and July trends remained positive. July occupancy was up about 30 basis points year over year, according to Boyle.

Public Storage closed its acquisition of National Storage Affiliates on July 22 and transitioned the acquired portfolio of approximately 1,100 stores and 575,000 units to Public Storage systems overnight, Boyle...