second quarter 2026
Filed Jul 29, 2026PUBLIC STORAGE REPORTS SECOND QUARTER 2026 RESULTS AND RAISES GUIDANCE
Public Storage raised full-year 2026 guidance and reported strong GAAP net income per share growth, but Core FFO per share declined and same-store revenue and net operating income remained lower than the prior-year quarter.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net Income per shareGAAP | $2.55 | – | 44.9% |
| Core FFO per sharenon-GAAP | $4.17 | – | (2.6)% |
| Six Months Net Income per shareGAAP | $5.26 | – | 38.8% |
| Six Months Core FFO per sharenon-GAAP | $8.38 | – | (0.1)% |
| Same Store Revenuesother | $ 1,006,549 | – | (0.6)% |
| Same Store Direct Cost of Operationsother | (227,671 ) | – | 4.3% |
| Same Store Direct Net Operating Incomenon-GAAP | 778,878 | – | (1.9)% |
| Same Store Indirect Cost of Operationsother | (32,505) | – | 5.7 % |
| Same Store Net Operating Incomenon-GAAP | $ 746,373 | – | (2.2)% |
| Same Store Gross Margin (before indirect costs)other | 77.4% | – | (1.0)% |
| Same Store Gross Margin (after indirect costs)other | 74.2% | – | (1.2)% |
| Same Store Average Occupancyother | 92.5% | – | 0.2% |
| Same Store Realized annual rental income per occupied square footother | $ 21.89 | – | (0.8)% |
| Same Store Realized annual rental income per available square footother | $ 20.24 | – | (0.6)% |
| Six Months Same Store Revenuesother | $ 2,007,382 | – | (0.3)% |
| Six Months Same Store Direct Cost of Operationsother | (456,959 ) | – | 1.3% |
| Six Months Same Store Direct Net Operating Incomenon-GAAP | 1,550,423 | – | (0.8)% |
| Six Months Same Store Indirect Cost of Operationsother | (64,650) | – | 4.1 % |
| Six Months Same Store Net Operating Incomenon-GAAP | $ 1,485,773 | – | (1.0)% |
| Six Months Same Store Gross Margin (before indirect costs)other | 77.2% | – | (0.4)% |
| Six Months Same Store Gross Margin (after indirect costs)other | 74.0% | – | (0.5)% |
| Six Months Same Store Average Occupancyother | 92.0% | – | 0.3% |
| Six Months Same Store Realized annual rental income per occupied square footother | $ 21.94 | – | (0.5)% |
| Six Months Same Store Realized annual rental income per available square footother | $ 20.18 | – | (0.2)% |
| Non-Same Store revenue growthother | 25.6% | – | 25.6% |
| Non-Same Store net operating income growthnon-GAAP | 21.5% | – | 21.5% |
| Six Months Non-Same Store revenue growthother | 25.2% | – | 25.2% |
| Six Months Non-Same Store net operating income growthnon-GAAP | 24.3% | – | 24.3% |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Same Store FacilitiesAverage Occupancy was 92.5%, compared with 92.3%, while realized annual rental income per occupied square foot was $ 21.89, compared with $ 22.06. | $ 1,006,549 | – | (0.6)% |
full-year 2026 outlook
- RevenueSame Store: Revenue growth (0.7)% to 0.3%
- Operating expensesSame Store: Expense growth 2.0% to 3.0%
- NoteSame Store: Net operating income growth (2.0)% to (0.3)%
- NoteNon-Same Store net operating income $343,000 to $357,000
- NoteCore FFO per share: $16.75 to $17.05
- NoteNon-Same Store net operating income does not include the impact of NSA and PS Canada.
What drove it
- The 2,755 Same Store Facilities contained 192.1 million net rentable square feet and represented approximately 83% of net rentable square feet in the U.S. consolidated portfolio.
- The non-same-store pool contained 441 primarily acquisition, development, and expansion facilities with 39.3 million rentable square feet, representing the remaining 17% of net rentable square feet in the portfolio.
- During the quarter, the Company acquired 20 self-storage facilities with 1.5 million net rentable square feet for $222.5 million.
- On July 22, 2026, the Company closed its all-stock merger with NSA, expanding the Public Storage brand portfolio to over 4,500 locations and more than 327 million operating square feet.
- The NSA transaction is expected to generate approximately $110 million to $130 million of run-rate synergies within the next three to four years.
- The Company entered into an agreement to acquire PS Canada for US$1.2 billion, consisting of approximately $889 million of Public Storage OP units and approximately $310 million in cash. The portfolio consists of 68 properties totaling 5.3 million square feet.
- At June 30, 2026, the Company managed or was under contract to manage 463 facilities with 34.2 million net rentable square feet through its third-party management program, including 68 facilities currently under construction.
Concerns
- Same Store Revenues declined (0.6)% and Same Store Net Operating Income declined (2.2)% in the three months ended June 30, 2026.
- Same Store Direct Cost of Operations increased 4.3% and Indirect Cost of Operations increased 5.7 % during the quarter.
- Same Store Gross Margin after indirect costs declined to 74.2% from 75.4%.
- Core FFO per share declined to $4.17 from $4.28.
- Realized annual rental income per occupied square foot declined (0.8)% and realized annual rental income per available square foot declined (0.6)% during the quarter.
What to watch
- Same Store Revenue growth guidance of (0.7)% to 0.3% and Same Store Net Operating Income growth guidance of (2.0)% to (0.3)% for full-year 2026.
- Core FFO per share guidance of $16.75 to $17.05 for full-year 2026.
- The expected third-quarter 2026 closing of the PS Canada acquisition.
- Execution of NSA integration, including the expected approximately $110 million to $130 million of run-rate synergies within the next three to four years.
- Development and expansion projects expected to deliver 4.0 million net rentable square feet at an aggregate cost of approximately $691.7 million.
Balance sheet and cash flow
- The Company’s total indebtedness as of June 30, 2026 was $10.3 billion, with $650 million, or 6.3%, maturing in 2026.
- As of June 30, 2026, the Company had approximately $3.8 billion of liquidity through a combination of cash, undrawn capacity on its credit facility, and expected retained cash flow over the next twelve months.
- Completed a public offering of $500 million aggregate principal amount of senior notes at a fixed rate of 5.00% maturing on December 15, 2035.
- Entered into a new $3.0 billion unsecured revolving credit facility, plus a $500 million delayed draw term loan facility, and established a $1.0 billion unsecured commercial paper program.
- Executed forward sale agreements under its ATM program totaling 796,009 shares at a weighted price of $326.32 per share, securing approximately $258 million in future settlement proceeds.
- Subsequent to quarter-end, completed a public offering of $900 million aggregate principal amount of senior notes at an effective rate of 4.855%.
- At June 30, 2026, total notes receivable were $173.3 million at an average annual interest rate of 7.6%, with $44.3 million of unfunded loan commitments expected to close in the next twelve months.
Analysis
Public Storage reported divergent second-quarter operating and per-share results. GAAP net income per share increased to $2.55 from $1.76, while Core FFO per share declined to $4.17 from $4.28. For the six months ended June 30, 2026, net income per share increased to $5.26 from $3.79 and Core FFO per share was $8.38 versus $8.39. The company nevertheless raised its full-year 2026 Core FFO per share outlook to $16.75 to $17.05.
Same-store performance remained pressured. Same Store Revenues declined (0.6)% to $ 1,006,549, and Same Store Net Operating Income declined (2.2)% to $ 746,373. Occupancy improved to 92.5% from 92.3%, but realized annual rental income per occupied square foot declined to $ 21.89 from $ 22.06. Direct Cost of Operations increased 4.3% and Indirect Cost of Operations increased 5.7 %, resulting in a 1.2% decline in gross margin after indirect costs to 74.2%.
Growth outside the same-store pool was substantially stronger. The 441 primarily acquisition, development, and expansion facilities in lease-up generated revenue growth of 25.6% and net operating income growth of 21.5% during the quarter. The company acquired 20 facilities for $222.5 million during the quarter and, for the six months ended June 30, 2026 including subsequent activity, acquired or was under contract to acquire 44 facilities for $454.9 million. The NSA merger closed on July 22, 2026, and the proposed PS Canada transaction would add 68 properties totaling 5.3 million square feet if completed.
Capital markets activity supports this external-growth program. Public Storage reported $10.3 billion of total indebtedness, approximately $3.8 billion of liquidity, a new $3.0 billion revolver, a $500 million delayed draw term loan facility, and a $1.0 billion commercial paper program. It also completed a $500 million senior-note offering during the quarter, completed a $900 million offering after quarter-end, and entered forward sale agreements expected to provide approximately $258 million in future settlement proceeds.
The raised guide reflects management's stated confidence in the second half and financing accretion from the Strategic Acquisitions of NSA and PS Canada. The guide still contemplates Same Store Revenue growth of (0.7)% to 0.3% and Same Store Net Operating Income growth of (2.0)% to (0.3)%, so improvement in occupancy and the integration and synergy realization from external growth are central reported items to monitor.
Management, verbatim
Public Storage’s second quarter results reflect the strength of our platform and the disciplined execution of our long-term strategy, allowing us to raise our outlook for the back half of the year.
Tom Boyle, Chief Executive Officer
2026 has been a very strategic and beneficial year in the capital markets for Public Storage, setting up our balance sheet and value creation engine for years to come.
Joe Fisher, President and Chief Financial Officer
Not in the filing
stated, not guessed- Consolidated total revenue
- Consolidated operating income
- Consolidated net income amount
- GAAP diluted EPS beyond the reported Net Income per share measure
- Operating cash flow
- Free cash flow
- Cash balance
- Share repurchases
- Dividend amount
- Consolidated gross margin
- Consolidated operating expenses
- Tax rate
- Prior-quarter comparisons for reported metrics
- Previous-release outlook for comparison with reported actual results
- Full financial statements and CFO commentary beyond the filing text provided, which is truncated after the commercial paper program description
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.