Core Insights - Public Storage (PSA) reported a third-quarter 2025 core funds from operations (FFO) per share of $4.31, exceeding the Zacks Consensus Estimate of $4.24, and reflecting a 2.6% year-over-year increase [1][10] - The company raised its 2025 FFO outlook, citing stabilizing operations, declining supply, and increased acquisition activity [10][11] Financial Performance - Quarterly revenues reached $1.22 billion, surpassing the Zacks Consensus Estimate of $1.21 billion, and increased by 3.1% year over year [2][10] - Same-store revenues remained flat at $948.9 million, with a 0.6% increase in realized annual rental income per occupied square foot to $22.67, while occupancy declined by 0.5% to 92.2% [3][4] - The cost of operations for same-store facilities decreased by 0.6% year over year to $203.7 million, contributing to a flat same-store net operating income (NOI) of $717.1 million [4][5] Portfolio Activity - In Q3, PSA acquired 49 self-storage facilities for $511.4 million, adding 3.4 million net rentable square feet [6] - Following September 30, 2025, PSA was under contract to acquire an additional 12 facilities for $119.9 million, contributing 0.9 million net rentable square feet [6] - The company has ongoing development projects expected to contribute around 2.6 million net rentable square feet, with estimated costs of $483.8 million [7] Balance Sheet Position - As of September 30, 2025, PSA had $296.5 million in cash and equivalents, a decrease from $1.1 billion as of June 30, 2025 [8] 2025 Guidance - PSA raised its core FFO per share projections to a range of $16.70-$17.00, up from the previous range of $16.45-$17.00 [11] - The company anticipates a decline to growth in same-store revenues of 0.3% to 0.3%, and a rise in same-store expenses of 1.8% to 2.8% [12][13]

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Core Insights - Public Storage (PSA) reported revenue of $1.22 billion for the quarter ended September 2025, reflecting a 3.1% increase year-over-year and a surprise of +1.22% over the Zacks Consensus Estimate of $1.21 billion [1] - Earnings per share (EPS) for the quarter was $4.31, significantly up from $2.16 in the same quarter last year, with an EPS surprise of +1.65% compared to the consensus estimate of $4.24 [1] Financial Performance Metrics - Square foot occupancy was reported at 90.7%, which is below the average estimate of 92.2% from three analysts [4] - Annual contract rent per occupied square foot was $22.88 million, exceeding the two-analyst average estimate of $22.41 million [4] - Revenues from ancillary operations reached $85.21 million, surpassing the four-analyst average estimate of $82.33 million, marking a year-over-year increase of +9.7% [4] - Revenues from self-storage facilities amounted to $1.14 billion, slightly above the estimated $1.12 billion from four analysts, representing a +2.6% change compared to the previous year [4] - Net earnings per share (diluted) were reported at $2.62, exceeding the four-analyst average estimate of $2.54 [4] Stock Performance - Over the past month, shares of Public Storage have returned +3.2%, compared to a +3.8% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Public Storage (PSA) came out with quarterly funds from operations (FFO) of $4.31 per share, beating the Zacks Consensus Estimate of $4.24 per share. This compares to FFO of $4.2 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an FFO surprise of +1.65%. A quarter ago, it was expected that this self-storage facility real estate investment trust would post FFO of $4.23 per share when it actually produced FFO of $4.28, delivering a surprise of +1.18%.Ov ...

Financial Performance - For the three months ended September 30, 2025, net income allocable to common shareholders was $461.4 million, or $2.62 per diluted common share, an increase of $80.7 million, or $0.46 per diluted common share, compared to the same period in 2024 [124]. - For the nine months ended September 30, 2025, net income allocable to common shareholders was $1.1 billion, or $6.42 per diluted common share, a decrease of $179.7 million, or $1.01 per diluted common share, compared to the same period in 2024 [126]. - Net income allocable to common shareholders for Q3 2025 was $461,408, a 21.2% increase from $380,712 in Q3 2024 [131]. - Total net income for Q3 2025 was $554,008, a 2.1% increase from $542,350 in Q3 2024 [134]. - The company reported a net loss of $12,209,000 for the three months ended September 30, 2025, an improvement from a net loss of $18,455,000 in 2024 [161]. Revenue and Income Sources - Revenues from Same Store Facilities increased by 0.1%, or $2.8 million, for the nine months ended September 30, 2025, compared to the same period in 2024 [127]. - Total revenues for the three months ended September 30, 2025, were $948.9 million, a slight increase of 0.02% compared to $948.7 million in 2024 [157]. - Total revenues for the nine months ended September 30, 2025, increased by 0.1% to $2,828,661,000 compared to $2,825,867,000 in 2024 [160]. - The company acquired 260 facilities from 2023 to 2025, with total revenues from these facilities reaching $175,913,000 for the nine months ended September 30, 2025, up from $138,136,000 in 2024 [161]. - Tenant reinsurance premium revenue increased by $5.9 million or 10.2% for the three months ended September 30, 2025, and by $17.3 million or 10.3% for the nine months ended September 30, 2025, compared to the same periods in 2024 [181]. Funds from Operations (FFO) - Funds from Operations (FFO) for the three months ended September 30, 2025, was $4.33 per diluted common share, an increase of 13.9%, or $0.53 per diluted common share, compared to the same period in 2024 [129]. - FFO for the nine months ended September 30, 2025, was $11.48 per diluted common share, a decrease of 7.0%, or $0.86 per diluted common share, compared to the same period in 2024 [129]. - FFO allocable to common shares for Q3 2025 was $761,194, representing a 14.0% increase compared to $667,631 in Q3 2024 [131]. - Core FFO allocable to common shares for Q3 2025 was $758,690, a 2.8% increase from $738,243 in Q3 2024 [131]. Acquisitions and Developments - The company acquired a total of 260 facilities with 19.0 million net rentable square feet for $3.8 billion since the beginning of 2023 [120]. - The acquisition of BREIT Simply Storage LLC included 127 self-storage facilities (9.4 million square feet) and 25 managed facilities (1.8 million square feet) for a purchase price of $2.2 billion, generating revenues of $116.9 million and $113.9 million for the nine months ended September 30, 2025, and 2024, respectively [164]. - During the nine months ended September 30, 2025, the company acquired 74 self-storage facilities across 19 states for $814.6 million, with total planned or completed acquisitions amounting to $934.5 million [165]. - Newly developed and expanded facilities included 40 developed since January 1, 2020, and 63 expanded facilities, with total revenues of $134.3 million for the nine months ended September 30, 2025, compared to $117.5 million in 2024, reflecting a $16.8 million increase [168]. - The company has a total of 103 self-storage facilities with 12.4 million net rentable square feet, incurring a total cost of $1.5 billion for developments and expansions completed by September 30, 2025, contributing net operating income of $32.0 million and $90.9 million for the three and nine months ended September 30, 2025, respectively [171]. Operating Metrics - The number of Same Store Facilities remained stable at 2,565 as of September 30, 2025 [136]. - The total net rentable square footage at period end increased by 4.0% to 227,670 from 218,840 [134]. - Average occupancy across all markets is 92.2% for 2025, a decrease of 0.5% from 2024 [156]. - The average square footage occupancy for the Simply portfolio was 88.3% for the nine months ended September 30, 2025, compared to 87.4% in 2024 [164]. - The occupancy rate for 2023 acquisitions as of September 30, 2025, was 86.1%, down from 87.6% in 2024, reflecting a decrease of 1.5% [162]. Expenses and Costs - Property tax expense increased by 4.9% for the three months ended September 30, 2025, due to higher assessed values [151]. - Marketing expenses decreased by 5.3% for the three months ended September 30, 2025, compared to the same period in 2024 [153]. - General and administrative expenses increased by $2.6 million for the three months ended September 30, 2025, primarily due to transaction costs and corporate transformation costs [188]. - The total costs to acquire facilities amounted to $3,756,868,000, with $2,674,840,000 attributed to 2023 acquisitions [162]. - The total costs to develop facilities amounted to $1.53 billion as of September 30, 2025, with significant investments in facilities developed in 2023 totaling $217.6 million [170]. Debt and Financing - As of September 30, 2025, the company had $10.1 billion in outstanding notes payable with a weighted average interest rate of approximately 3.0% [192]. - The company’s total debt amounts to approximately $10.1 billion as of September 30, 2025, with a weighted average effective interest rate of 3.0% [220]. - The company has three interest rate swaps with a notional amount of $475 million, converting fixed rate senior unsecured notes into a floating rate instrument based on a SOFR index [221]. - The company has committed cash requirements of $119.9 million for property acquisitions and $381.4 million for development spending over the next 18 to 24 months [203]. - The company expects retained operating cash flow of approximately $650 million for 2025, up from $400 million in 2024 [195]. Market Conditions and Expectations - The company expects Same Store Facilities revenues in 2025 to be similar to those earned in 2024 due to various market uncertainties [148]. - The company remains active in seeking additional self-storage facility acquisitions, with future acquisition volume potentially impacted by capital costs and macroeconomic uncertainties [165]. - The company expects to add 1.3 million net rentable square feet of storage space through ongoing expansions at an aggregate direct development cost of $165.4 million by September 30, 2025 [176]. - The company has 29 additional facilities in development, totaling 2.6 million net rentable square feet with an aggregate development cost of approximately $483.8 million, expected to open in the next 18 to 24 months [178]. Shareholder Returns - The company declared a quarterly dividend of $3.00 per common share, totaling approximately $527 million, to be paid in December 2025 [210]. - The Board has authorized a share repurchase program allowing the purchase of up to 35,000,000 common shares, with 24,448,781 shares repurchased at an aggregate cost of approximately $879.1 million as of October 29, 2025 [216]. - Future levels of common share repurchases will depend on available capital, investment alternatives, and the trading price of common shares [216].

News Release Public Storage 701 Western Avenue Glendale, CA 91201-2349 www.publicstorage.com | For Release | Immediately | | --- | --- | | Date | October 29, 2025 | | Contact | Ryan Burke | | | (818) 244-8080, Ext. 1141 | Public Storage Reports Results for the Three and Nine Months Ended September 30, 2025 GLENDALE, California – Public Storage (NYSE:PSA) announced today operating results for the three and nine months ended September 30, 2025. "Public Storage's third quarter results reflect differentiated st ...

Company Overview - Public Storage (NYSE: PSA) is a leading real estate investment trust (REIT) focusing on self-storage facilities, providing storage solutions across various locations [1] - As a REIT, the company benefits from tax advantages and is required to distribute a significant portion of its income to shareholders [1] - Public Storage competes with other self-storage providers such as Extra Space Storage and CubeSmart [1] Stock Performance and Analyst Sentiment - The consensus target price for PSA's stock has shown fluctuations, with the average price target recently at $324, up from $321 in the previous quarter, indicating positive sentiment among analysts [2] - A year ago, the average price target was $330, reflecting more optimistic expectations for the company's growth or market conditions at that time [3] - Analyst Keegan Carl from Berenberg Bank has set a price target of $357 for PSA, reflecting strong confidence in the company's future performance [3][6] Earnings Reports and Market Outlook - Public Storage is set to release its third-quarter 2025 earnings results on October 29, 2025, with a conference call scheduled for the following day [4] - The recent earnings season for REITs concluded positively, with many companies surpassing expectations, which may contribute to a favorable outlook for PSA [4] - Investors are encouraged to monitor upcoming earnings reports and company announcements to understand potential future movements in PSA's stock price [5][6]

Core Insights - Public Storage (PSA) is expected to report third-quarter 2025 results on October 29, with anticipated increases in revenues and core funds from operations (FFO) per share [1][11] Financial Performance - In the last reported quarter, PSA achieved a core FFO per share of $4.28, exceeding the Zacks Consensus Estimate of $4.23, driven by top-line growth despite a decline in occupancy [2][3] - The Zacks Consensus Estimate for third-quarter revenues from self-storage facilities is $1.122 billion, up from $1.110 billion in the same period last year, while revenues from ancillary operations are projected to rise to $82.33 million from $77.64 million [5][6] Market Position and Strategy - PSA benefits from strong brand recognition and economies of scale, with a presence in major metropolitan markets, contributing to its competitive advantage in the self-storage industry [3][4] - The self-storage sector is characterized by low capital expenditure requirements and high operating margins, making it resilient during economic downturns [4] Projections and Analyst Sentiment - The consensus estimate for third-quarter core FFO per share has been slightly revised down to $4.24, indicating a year-over-year growth of 0.95% [7] - PSA currently holds a Zacks Rank of 3 and an Earnings ESP of -0.06%, suggesting uncertainty regarding a surprise in FFO per share this quarter [8][9]

Core Insights - Wall Street analysts forecast Public Storage (PSA) will report quarterly earnings of $4.24 per share, reflecting a year-over-year increase of 1% [1] - Anticipated revenues are projected to be $1.21 billion, showing a 1.8% increase compared to the same quarter last year [1] - The consensus EPS estimate has remained unchanged over the past 30 days, indicating analysts' reassessment of their projections [1] Revenue Estimates - Analysts estimate 'Revenues- Ancillary operations' will reach $82.33 million, representing a year-over-year change of +6% [4] - The estimated 'Revenues- Self-storage facilities' is projected at $1.12 billion, indicating a year-over-year change of +1.1% [4] Occupancy and Rent Metrics - Expected 'Square foot occupancy' is 92.2%, down from the year-ago figure of 92.7% [4] - The consensus estimate for 'Annual contract rent per occupied square foot' is $22.41 million, compared to $23.04 million from the previous year [5] Depreciation and Stock Performance - Analysts project 'Depreciation and amortization' to be $287.93 million [5] - Public Storage shares have increased by +9.3% in the past month, outperforming the Zacks S&P 500 composite's +1.3% [6]

Core Viewpoint - Public Storage is a leading self-storage REIT with a strong market presence, but faces challenges in profit growth and stock performance compared to broader market indices [1][2][5]. Company Overview - Public Storage is based in Glendale, California, and operates thousands of facilities across the U.S. and internationally, providing secure storage solutions [1]. - The company has a market capitalization of $51.66 billion, indicating its significant size within the industry [2]. Financial Performance - Analysts expect Public Storage's profit for the third quarter to grow marginally year-over-year to $4.24 per diluted share, with a mixed record of meeting Wall Street estimates [3][4]. - For the current fiscal year, profit is projected to reach $16.82 per diluted share, reflecting modest growth expectations [4]. Stock Performance - Public Storage's stock has underperformed the broader market, declining by 13.9% over the past 52 weeks and 1.7% year-to-date, while the S&P 500 Index has gained 13.4% and 11.4% respectively [5]. - The real estate sector, represented by the Real Estate Select Sector SPDR Fund, has seen a less pronounced decline of 5.4% over the same period [6]. Recent Results and Guidance - In the second quarter of fiscal 2025, Public Storage reported total revenues of $1.20 billion, a 2.4% increase year-over-year, surpassing analyst expectations [7]. - However, rising costs have pressured margins, with net income per share dropping from $2.66 in Q2 2024 to $1.76 in Q2 2025, and the company provided weak guidance for the current year [8].