Public Storage — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net income per share (diluted) for the three months ended September 30, 2026, was $1.69, a 35.5% decrease from $2.62 in the prior year period; for the nine months ended September 30, 2026, it was $6.92, a 7.8% increase from $6.42.
• Core FFO per share for the three months ended September 30, 2026, was $4.34, a 0.7% increase from $4.31; for the nine months ended September 30, 2026, it was $12.74, a 0.2% increase from $12.71.
• Same Store Revenues for the three months ended September 30, 2026, were $1,021.9 million (0.5% increase), and for the nine months ended September 30, 2026, were $3,029.3 million (flat).
• Same Store Net Operating Income (NOI) for the three months ended September 30, 2026, was $768.8 million (0.5% increase), and for the nine months ended September 30, 2026, was $2,254.6 million (0.5% decrease).
• Same Store Gross Margin (before indirect costs) for the three months ended September 30, 2026, was 77.9% (down 0.3%); for the nine months ended September 30, 2026, it was 77.5% (down 0.3%).
• Average Occupancy for Same Store Facilities was 92.2% for the three months ended September 30, 2026 (up 0.3%), and 92.0% for the nine months ended September 30, 2026 (up 0.2%).
• Total Revenues for the three months ended September 30, 2026, were $1,366.2 million; for the nine months ended September 30, 2026, were $3,816.8 million.
• Total Expenses for the three months ended September 30, 2026, were $1,049.2 million; for the nine months ended September 30, 2026, were $2,558.9 million.
• Operating Income for the three months ended September 30, 2026, was $317.0 million; for the nine months ended September 30, 2026, was $1,257.9 million.
• Net Income for the three months ended September 30, 2026, was $378.3 million; for the nine months ended September 30, 2026, was $1,410.7 million.
• Total Indebtedness as of September 30, 2026, was $12.2 billion.
• Weighted Average Interest Rate as of September 30, 2026, was 3.6% (up from 3.0% in the prior year period).
• Net Debt to EBITDA as of September 30, 2026, was 3.4x (up from 3.0x).
• Net Debt and Preferred Equity to EBITDA as of September 30, 2026, was 4.7x (up from 4.2x).
• EBITDA to Fixed Charges as of September 30, 2026, was 6.3x (down from 6.8x).
• Cash and equivalents as of September 30, 2026, were $560.4 million.
• Total Assets as of September 30, 2026, were $28.99 billion.
• Total Equity as of September 30, 2026, was $15.22 billion.

Guidance and Future Outlook:

• Raised full-year 2026 Same Store Net Operating Income growth guidance to a range of -0.8% to 0.2% (previously -2.0% to -0.3%), an upward adjustment of 0.9 percentage points.
• Raised full-year 2026 Same Store Revenue growth guidance to a range of 0% to 0.5% (previously -0.7% to 0.3%), an upward adjustment of 0.5 percentage points.
• Raised full-year 2026 Same Store Expense growth guidance to a range of 1.5% to 2.5% (previously 2.0% to 3.0%), an upward adjustment of 0.5 percentage points.
• Raised full-year 2026 Non-Same Store Net Operating Income guidance to a range of $355.0 million to $363.0 million (previously $343.0 million to $357.0 million), an upward adjustment of $9.0 million.
• Raised full-year 2026 Core FFO per share guidance to a range of $16.90 to $17.10 (previously $16.75 to $17.05), an upward adjustment of $0.10.
• Management expressed optimism regarding improving industry fundamentals, including lower churn, higher occupancy, and strong move-in rates.

Business Segments and Product Lines:

• Completed the acquisition of National Storage Affiliates (NSA) on July 22, 2026, expanding the portfolio to over 4,500 locations and more than 327 million operating square feet.
• Completed the acquisition of Public Storage Canada on September 1, 2026, for $1.2 billion, adding 68 properties totaling 5.3 million square feet.
• Acquired 25 self-storage facilities with 1.7 million net rentable square feet for $258.4 million during the quarter, excluding NSA and PS Canada.
• Year-to-date (including activity subsequent to September 30, 2026), the Company acquired or was under contract to acquire 65 facilities with 4.7 million net rentable square feet for $713.2 million.
• Opened four newly developed facilities and various expansion projects during the nine months ended September 30, 2026, contributing 0.5 million net rentable square feet at a cost of $84.1 million.
• At September 30, 2026, had 3.3 million net rentable square feet in development estimated to cost $571.2 million and 1.3 million net rentable square feet in expansion projects estimated to cost $217.8 million.
• Added a net 31 facilities to the third-party property management program during the quarter; managed or under contract to manage 493 facilities (35.4 million net rentable square feet) at September 30, 2026.
• Originated $34.0 million of bridge loan financing during the quarter at an average rate of 7.7%.
• Provided a $237 million mezzanine loan to the PS-NSA JV at an average interest rate of 10.22%.
• Total notes receivable at September 30, 2026, were $445.3 million at an average annual interest rate of 9.0%.

Market and Competitive Landscape:

• The Company's platform now includes over 4,764 self-storage facilities with approximately 339 million net rentable square feet located in 42 states, Puerto Rico, and Canada.
• The Company owns a 35% common equity interest in Shurgard Self Storage Limited, which owns 338 facilities in seven Western European countries with approximately 19 million net rentable square feet.
• Same Store Facilities represent approximately 71% of the net rentable square feet in the U.S. consolidated portfolio.
• Non-Same Store facilities (primarily acquisition, development, and expansion) grew revenues by 90.8% and NOI by 91.8% during the quarter.
• Realized annual rental income per occupied square foot for Same Store Facilities was $22.29 for the three months ended September 30, 2026, up 0.2% from $22.24.

Risks and Challenges:

• Forward-looking statements include risks such as changes in demand, macroeconomic conditions, failure to realize benefits of the NSA Acquisition, and integration difficulties.
• Risks include adverse changes in laws and regulations governing property tax, evictions, rental rates, minimum wage levels, and insurance.
• Potential impacts from natural disasters, public health emergencies, international military conflicts, and international trade disputes.
• Risks related to increases in customer acquisition channel costs, high interest rates, inflation, and unfavorable foreign currency fluctuations.
• Security breaches, including ransomware, or failure of networks, systems, or technology.

Management Commentary and Tone:

• Tom Boyle, Chief Executive Officer, stated that third-quarter performance was better than expected, demonstrating the strength and scalability of the platform and improving industry fundamentals.
• Ayash Basu, Chief Revenue and Marketing Officer, noted encouraging momentum across the portfolio driven by lower customer churn, higher occupancy, and strong move-in rates.
• Joe Fisher, President and Chief Financial Officer, highlighted the execution of a significant capital markets program in 2026, strengthening the balance sheet and funding substantial external growth.
• Management expressed confidence in the value creation opportunities available across the broader North American footprint and the successful integration of the NSA and PS Canada portfolios.

Other Key Points:

• Executed forward sale agreements under its ATM program totaling 1.2 million shares (weighted price $326.51) during the year, securing approximately $399 million in future settlement proceeds.
• Completed a public offering of $900 million aggregate principal amount of senior notes at an interest rate of 4.85% (after hedging).
• Completed an inaugural Canadian public offering of C$400 million principal amount of senior notes at an interest rate of 4.54%.
• Entered into Canadian dollar cross-currency swaps to reduce the effective interest rate on $900 million of existing debt from 4.64% to 3.43%.
• Year-to-date, completed $6.2 billion of debt capital markets activity and $6.0 billion of common share and partnership unit issuance or committed issuance.
• Published the annual Corporate Sustainability Report and earned the Great Place to Work Certification for the 5th consecutive year.
• Credit ratings remain A2/Moody's and A/S&P.
• Approximately $650 million of total indebtedness matures in the fourth quarter of 2026.
• As of September 30, 2026, the Company had approximately $4.1 billion of liquidity through cash, undrawn credit facility capacity, and expected retained cash flow.