Public Storage(US:PSA)2026-02-13 18:02Financial Data and Key Metrics Changes - Core FFO for Q4 was $4.26 per share, resulting in full-year core FFO of $16.97 per share, at the high end of guidance [22] - 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 [22] - Non-same-store NOI growth was 20%, contributing to a 1.2% year-over-year increase in Core FFO per share [23] - The company has established an initial Core FFO range for 2026 of $16.35-$17, indicating a year-over-year decline of 1.7% [27] Business Line Data and Key Metrics Changes - The company has invested over $12 billion, expanding its portfolio by 763 assets, which are expected to deliver outsized growth [10] - The development pipeline at year-end was $610 million, with stabilized yields targeting 8% [24] - The lending platform has grown, with $131 million deployed in 2025, bringing the total outstanding lending business to $142 million [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 [13] - Competitive supply is slowing as new development becomes harder and more expensive, with momentum building in the strongest markets [13] Company Strategy and Development Direction - The company is unveiling PS 4.0, a new strategic vision designed to drive accelerated performance and long-term value creation [5][14] - The strategy focuses on three core pillars: PS Next operating platform, a value creation engine, and an "Own It" culture [15][19] - The company aims to enhance customer experience through AI and data science, optimizing pricing and operational efficiency [16][70] Management's Comments on Operating Environment and Future Outlook - Management expects 2026 to be slightly better than 2025, with same-store revenue and NOI guidance at -1.1% and -2.2% respectively [27] - The company anticipates occupancy to remain stable, with new move-in rents expected to improve throughout the year [27][39] - Management is optimistic about the potential for organic growth and value creation through acquisitions and operational improvements [60] Other Important Information - The company has made significant leadership changes, including the promotion of Tom Boyle to CEO and the addition of Joe Fisher as President and CFO [6][7] - The headquarters is relocating to Frisco, Texas, which is expected to enhance operational efficiency and talent acquisition [62] Q&A Session Summary Question: What are the greatest near-term opportunities for external growth? - Management highlighted a variety of seller types and sizes, with a focus on single and double type opportunities, as well as small and medium-sized portfolios [32][33] Question: What is the expected cadence of same-store revenue growth throughout the year? - Management indicated that while there may be pressure on year-over-year revenue initially, they expect improvements by the fourth quarter of 2026 [36][39] Question: Can you provide an update on move-in rents thus far into Q1? - Move-in rents for January were down 7%, but occupancy increased by about 40 basis points, indicating a healthy start to the year [44] Question: What is the long-term growth profile of the company? - 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 [60]