Third quarter 2026
Filed Oct 26, 2026PUBLIC STORAGE REPORTS THIRD QUARTER 2026 RESULTS AND RAISES GUIDANCE
Same Store revenue and NOI grew 0.5%, Core FFO per share increased 0.7%, occupancy improved, and the Company raised full-year Same Store NOI and Core FFO per share guidance. GAAP net income per diluted common share declined 35.5%, while acquisitions, transaction and integration expense, higher depreciation and amortization, and higher interest expense materially affected reported results.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenues, three months ended September 30, 2026GAAP | $1.37B | – | – |
| Operating income, three months ended September 30, 2026GAAP | 316,960 | – | – |
| Net income, three months ended September 30, 2026GAAP | 378,348 | – | – |
| Net income allocable to common shareholders, three months ended September 30, 2026GAAP | $312.3M | – | (32.3) % |
| Net income per common share – Basic, three months ended September 30, 2026GAAP | $ 1.70 | – | – |
| Net income per common share – Diluted, three months ended September 30, 2026GAAP | $ 1.69 | – | (35.5)% |
| FFO allocable to common shares and units, three months ended September 30, 2026non-GAAP | $722.2M | – | (5.3) % |
| Core FFO allocable to common shares and units, three months ended September 30, 2026non-GAAP | $822.8M | – | 8.2 % |
| FFO per share and unit, three months ended September 30, 2026non-GAAP | $ 3.81 | – | (12.0)% |
| Core FFO per share and unit, three months ended September 30, 2026non-GAAP | $ 4.34 | – | 0.7% |
| FAD, three months ended September 30, 2026non-GAAP | $688.6M | – | (4.1) % |
| Self-storage NOI, three months ended September 30, 2026non-GAAP | 920,917 | – | – |
| Same Store revenues, three months ended September 30, 2026other | $1.02B | – | 0.5% |
| Same Store direct cost of operations, three months ended September 30, 2026other | (226,132 ) | – | 2.0% |
| Same Store direct net operating income, three months ended September 30, 2026non-GAAP | 795,815 | – | —% |
| Same Store net operating income, three months ended September 30, 2026non-GAAP | $768.8M | – | 0.5% |
| Same Store gross margin before indirect costs, three months ended September 30, 2026other | 77.9% | – | (0.3)% |
| Same Store gross margin after indirect costs, three months ended September 30, 2026other | 75.2% | – | —% |
| Same Store weighted average square foot occupancy, three months ended September 30, 2026other | 92.2% | – | 0.3% |
| Same Store realized annual rental income per occupied square foot, three months ended September 30, 2026non-GAAP | $ 22.29 | – | 0.2% |
| Same Store realized annual rental income per available square foot, three months ended September 30, 2026non-GAAP | $ 20.54 | – | 0.5% |
| Same Store square foot occupancy at September 30other | 90.4% | – | 0.1% |
| Same Store annual contract rent per occupied square foot at September 30non-GAAP | $ 22.75 | – | 1.2% |
| Total revenues, nine months ended September 30, 2026GAAP | 3,816,812 | – | – |
| Operating income, nine months ended September 30, 2026GAAP | 1,257,919 | – | – |
| Net income, nine months ended September 30, 2026GAAP | 1,410,661 | – | – |
| Net income per common share – Diluted, nine months ended September 30, 2026GAAP | $ 6.92 | – | 7.8% |
| Core FFO per share and unit, nine months ended September 30, 2026non-GAAP | $ 12.74 | – | 0.2% |
| Same Store net operating income, nine months ended September 30, 2026non-GAAP | $2.25B | – | (0.5)% |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Self-storage facilities, three months ended September 30, 2026Same Store Facilities, Acquired Facilities, Newly Developed and Expanded Facilities, and Other Non-Same Store Facilities contributed to self-storage revenues. | $1.25B | – | – |
| Ancillary operations, three months ended September 30, 2026Ancillary revenues were reported with ancillary cost of operations of 43,698. | 112.1M | – | – |
| Same Store Facilities, three months ended September 30, 2026Lower customer churn, higher occupancy and strong move-in rates were cited; average occupancy was 92.2% and realized annual rental income per available square foot was $ 20.54. | $1.02B | – | 0.5% |
| Non-Same Store pool, three months ended September 30, 2026Revenue growth reflected primarily acquisition, development, and expansion facilities in various stages of lease-up. | – | 90.8% |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Full-year 2026 outlook
- RevenueSame Store revenue growth: —% to 0.5%
- Operating expensesSame Store expense growth: 1.5% to 2.5%
- NoteSame Store net operating income growth: (0.8)% to 0.2%
- NoteNon-Same Store net operating income: $355,000 to $363,000
- NoteCore FFO per share: $16.90 to $17.10
- NoteNon-Same Store net operating income excludes the impact of NSA and PS Canada.
- NoteThe Company does not provide guidance for GAAP net income per share or a reconciliation of estimated 2026 Core FFO per share to estimated GAAP net income per share because it is unable to reasonably predict certain items that are included in GAAP net income, including gains or losses on sales of real estate investments and foreign exchange.
What drove it
- Same Store revenue increased 0.5%, supported by 92.2% weighted average occupancy, 0.3% occupancy growth, and 0.5% growth in realized annual rental income per available square foot.
- Non-Same Store revenues and net operating income grew 90.8% and 91.8%, respectively, during the quarter.
- The NSA Acquisition closed on July 22, 2026 and expanded the portfolio to over 4,500 locations and more than 327 million operating square feet. The Company expects approximately $110 million to $130 million of run-rate synergies within the next three to four years.
- PS Canada closed on September 1, 2026 for US $1.2 billion, including assumed debt. The portfolio consists of 68 properties totaling 5.3 million square feet.
- Excluding NSA and PS Canada, the Company acquired 25 self-storage facilities with 1.7 million net rentable square feet for $258.4 million during the quarter.
- During the quarter, the Company originated $34.0 million of bridge loan financing at an average rate of 7.7% and provided a $237 million mezzanine loan to the PS-NSA JV at an average interest rate of 10.22%.
- The Company added a net 31 facilities to its third-party property management program during the quarter.
Concerns
- GAAP net income per diluted common share was $ 1.69, compared with $ 2.62, a change of (35.5)%.
- Same Store direct cost of operations rose 2.0%, including repairs and maintenance growth of 17.4% and marketing growth of 12.5%.
- Same Store gross margin before indirect costs was 77.9%, compared with 78.2%, a change of (0.3)%.
- Transaction and integration expense was 114,642 for the quarter, compared with — in the prior-year quarter.
- Depreciation and amortization was 412,614, compared with 290,364, and interest expense was 102,534, compared with 79,692.
- Weighted Average Interest Rate was 3.6%, compared with 3.0%; Net Debt to EBITDA was 3.4x, compared with 3.0x.
- Same Store net operating income for the nine months ended September 30, 2026 was $ 2,254,606, compared with $ 2,265,090, a change of (0.5)%.
What to watch
- Execution against the increased full-year 2026 Same Store net operating income growth guidance of (0.8)% to 0.2% and Core FFO per share guidance of $16.90 to $17.10.
- Whether lower churn, higher occupancy and strong move-in rates continue through the fourth quarter.
- Integration of NSA and PS Canada and progress toward approximately $110 million to $130 million of expected run-rate synergies within the next three to four years.
- Completion of forward sale agreements for 1,230,141 common shares, expected to generate approximately $399 million of future net proceeds upon settlement.
- Development and expansion commitments: aggregate costs of $788.9 million, of which $466.6 million remains to be incurred, primarily over the next 18 to 24 months.
Balance sheet and cash flow
- Cash and equivalents at September 30, 2026: $ 560,379; December 31, 2025: $ 318,095.
- Total assets at September 30, 2026: $ 28,997,613; December 31, 2025: $ 20,208,604.
- Notes payable at September 30, 2026: $ 11,992,033; unsecured credit facility and commercial paper: 200,000.
- Total indebtedness as of September 30, 2026 was $12.2 billion, with $650 million, or 5.3%, maturing in the fourth quarter of 2026.
- The Company had approximately $4.1 billion of liquidity through cash, undrawn capacity on its credit facility, and expected retained cash flow over the next twelve months.
- Weighted Average Interest Rate: 3.6%; Weighted Average Years to Maturity: 6.1; Net Debt to EBITDA: 3.4x; Net Debt and Preferred Equity to EBITDA: 4.7x; EBITDA to Fixed Charges: 6.3x.
- The Company issued C$400 million aggregate principal amount of senior notes at a fixed rate of 4.54% maturing on September 16, 2033.
- The Company issued $900 million aggregate principal amount of senior notes and settled interest rate swaps that reduced the effective interest rate on the issuance to 4.85%.
- Canadian dollar cross-currency swaps reduced the effective interest rate on $900 million of existing debt from 4.64% to an effective rate of 3.43%.
- FAD for the three months ended September 30, 2026 was $ 688,621, compared with $ 718,134, a change of (4.1) %.
- Capital expenditures to maintain real estate facilities for the three months ended September 30, 2026 were (34,216), compared with (52,649).
Analysis
Public Storage reported third-quarter total revenues of $ 1,366,190, operating income of 316,960, and GAAP net income per diluted common share of $ 1.69, compared with $ 2.62 in the prior-year quarter. Core FFO per share and unit increased 0.7% to $ 4.34, while Core FFO allocable to common shares and units increased 8.2% to $ 822,758. The divergence between GAAP and Core FFO reflected, among other items, 114,642 of transaction and integration expense, depreciation and amortization of 412,614, and interest expense of 102,534.
Same Store operating trends improved modestly. Revenue increased 0.5% to $ 1,021,947 and Same Store NOI increased 0.5% to $ 768,833. Weighted average square foot occupancy increased 0.3% to 92.2%, while realized annual rental income per available square foot increased 0.5% to $ 20.54. Expense growth remained above revenue growth at 2.0%, driven in part by repairs and maintenance growth of 17.4% and marketing growth of 12.5%. Gross margin before indirect costs declined 0.3% to 77.9%, while gross margin after indirect costs was unchanged at 75.2%.
External growth was the principal portfolio change. The NSA Acquisition closed on July 22, 2026, and PS Canada closed on September 1, 2026 for US $1.2 billion, including assumed debt. Excluding those transactions, the Company acquired 25 facilities for $258.4 million during the quarter. Non-Same Store revenues and NOI grew 90.8% and 91.8%, respectively, during the quarter. Management expects approximately $110 million to $130 million of run-rate NSA synergies within the next three to four years.
The Company raised its full-year 2026 outlook. Same Store revenue growth is guided at —% to 0.5%, Same Store expense growth at 1.5% to 2.5%, Same Store NOI growth at (0.8)% to 0.2%, Non-Same Store NOI at $355,000 to $363,000, and Core FFO per share at $16.90 to $17.10. Funding activity was substantial: the Company reported $12.2 billion of total indebtedness, approximately $4.1 billion of liquidity, C$400 million of Canadian senior notes, $900 million of senior notes, and forward ATM sale agreements expected to generate approximately $399 million of future net proceeds.
Balance-sheet leverage and financing costs warrant attention as external growth is integrated. The weighted average interest rate was 3.6%, Net Debt to EBITDA was 3.4x, and Net Debt and Preferred Equity to EBITDA was 4.7x. The Company also had $466.6 million of aggregate development and expansion costs remaining to be incurred, primarily over the next 18 to 24 months. The fourth-quarter operating trajectory, integration progress, and delivery within the raised Core FFO guidance range are the central reported execution measures.
Management, verbatim
Public Storage’s third quarter performance was better than expected and demonstrates the strength and scalability of our platform as well as improving industry fundamentals. 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.
Tom Boyle, Chief Executive Officer
During the third quarter, we saw lower customer churn, higher occupancy and strong move-in rates, contributing to an improving same-store revenue growth trajectory and results ahead of our expectations.
Ayash Basu, Chief Revenue and Marketing Officer
Year-to-date, we have completed $6.2 billion of debt capital markets activity and $6.0 billion of common share and partnership unit issuance or committed issuance. This activity has fully funded the acquisitions of NSA and Public Storage Canada, while enhancing our liquidity and financial flexibility and leaving us well positioned to pursue additional value-creating opportunities.
Joe Fisher, President and Chief Financial Officer
Not in the filing
stated, not guessed- Operating cash flow was not reported in the filing text.
- GAAP free cash flow was not reported in the filing text.
- Common dividend declarations or payments were not reported in the filing text.
- Share repurchases were not reported in the filing text.
- GAAP gross margin was not reported in the filing text.
- A GAAP effective tax rate was not reported in the filing text.
- Prior-quarter comparisons for reported third-quarter metrics were not reported in the filing text.
- A previous earnings release outlook was not provided; therefore, no actual-versus-prior-guidance comparisons are included.
- GAAP net income per share guidance was not provided.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.