Public Storage's Q3 FFO & Revenues Beat Estimates, '25 View Raised

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]