Public Storage(US:PSA)2026-02-13 18:00Financial Data and Key Metrics Changes - Core FFO per share for Q4 was $4.26, resulting in full-year core FFO of $16.97 per share, at the high end of guidance [23] - Same-store revenue and NOI growth for the quarter were -0.2% and -1.5% respectively, with declines in move-in rents offset by strong existing customer performance [23] - Non-same-store NOI growth was 20%, contributing to a 1.2% year-over-year increase in Core FFO per share [24] Business Line Data and Key Metrics Changes - The company acquired $131 million in new acquisitions during the quarter, bringing the total for 2025 to $953 million [25] - Development openings totaled $409 million for the year, with a total development pipeline of $610 million targeting stabilized yields of 8% [25] - The lending platform grew with $131 million deployed in 2025, totaling $142 million at a current rate of approximately 7.9% [25] Market Data and Key Metrics Changes - 10% of the U.S. population currently uses storage, with increasing adoption among Generation Z, millennials, and the 65+ cohort [12] - Competitive supply is slowing as new development becomes harder and more expensive, with momentum building in the strongest markets [12] - The company expects occupancy to remain stable, with new move-in rents projected to improve throughout the year [27] Company Strategy and Development Direction - The company unveiled PS 4.0, focusing on customer experience, strong capital allocation, and a winning culture to drive performance [4][15] - The strategic vision includes three core pillars: PS Next operating platform, value creation engine, and an "own it" culture [15][19] - The company is investing in AI and data science to enhance customer interactions and operational efficiency [16][69] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the team's ability to drive outperformance and revenue growth despite recent challenges [24] - The economic backdrop for 2026 is expected to be slightly better than 2025, with same-store revenue and NOI guidance at -1.1% and -2.2% respectively [27] - Management highlighted the importance of investing in the platform to control outcomes and prepare for future improvements [86] Other Important Information - The company is relocating its headquarters to Frisco, Texas, to consolidate operations and leverage talent [62] - The transition in leadership includes Tom Boyle as CEO and Joe Fisher as President and CFO, with a focus on succession planning [4][5] Q&A Session Summary Question: What are the greatest near-term opportunities for growth? - Management noted a variety of seller types and sizes, with a focus on single and double opportunities, as well as small and medium-sized portfolios [32] Question: What is the expected cadence of same-store revenue growth throughout the year? - Management indicated that year-over-year revenue is a backward-looking indicator, with expectations for improvement in the fourth quarter of 2026 [36][40] Question: Can you provide an update on move-in rents thus far into Q1? - Move-in rents for January were down 7%, but occupancy remained stable, indicating a healthy start to the year [44] Question: What is the long-term growth profile of the company with PS Next? - The company aims to build on past outperformance through organic growth and a strong focus on customer experience, with additional contributions from acquisitions and ancillary businesses [58] Question: What are the operational or financial benefits of relocating the headquarters? - The relocation is expected to enhance operational efficiency and talent acquisition, with some associated costs already factored into corporate transformation expenses [62][64]