Public Storage Lifts 2026 Core FFO Outlook After NOI Turn

The Tip Desk · October 27, 2026 · 4 min read

Third-quarter Core FFO was $4.34 a share, up 0.7%, as Same Store NOI rose 0.5% and the company raised full-year Core FFO guidance to $16.90–$17.10.

Public Storage (PSA), the self-storage REIT, reported Same Store net operating income up 0.5% in the third quarter and raised its full-year 2026 Core FFO per share outlook to $16.90–$17.10 from $16.75–$17.05, a $0.10 increase after a $0.22 lift in the second quarter.

Core FFO per share was $4.34, up 0.7% from $4.31 a year earlier, reversing a 2.6% year-over-year decline in the second quarter. GAAP net income was $1.69 a share, down 35.5% from $2.62 a year earlier.

Same Store revenue rose 0.5% to $1.022 billion, after a first-half guide that had been flat-to-negative and a second-quarter outlook that had already been raised 0.9 percentage points. Same Store NOI was $768.8 million. The company now guides Same Store NOI growth for 2026 at (0.8)% to 0.2%, up 0.9 percentage points from (2.0)% to (0.3)%. Same Store revenue growth guidance is 0.0% to 0.5%. Same Store expense growth guidance was lowered to 1.5% to 2.5% from 2.0% to 3.0%.

Chief Executive Officer Tom Boyle said third-quarter performance was better than expected and pointed to improving churn, occupancy and move-in rates. Chief Revenue and Marketing Officer Ayash Basu said lower customer churn, higher occupancy and strong move-in rates contributed to an improving same-store revenue trajectory.

Average occupancy at the 2,755 Same Store Facilities was 92.2%, up 0.3 percentage points from 91.9% a year earlier. Period-end occupancy was 90.4%. Realized annual rental income per occupied square foot was $22.29. Annual contract rent per occupied square foot at September 30 was $22.75, up 1.2% from $22.48 a year earlier. Gross margin before indirect costs was 77.9%; after indirect costs it held at 75.2%.

Direct cost of operations rose 2.0%. Repairs and maintenance were up 17.4% and marketing up 12.5%, while property taxes fell 0.8% and on-site payroll fell 2.7%. Indirect costs fell 11.2%.

The company completed the all-stock acquisition of National Storage Affiliates on July 22, expanding the portfolio to more than 4,500 locations and more than 327 million operating square feet, and closed Public Storage Canada on September 1 for US$1.2 billion including assumed debt, adding 68 properties and 5.3 million square feet. Together the deals added more than 1,100 stores to the PS Next platform. Public Storage expects about $110 million to $130 million of run-rate synergies from NSA within three to four years.

Non-same store revenues and NOI grew 90.8% and 91.8%, respectively, reflecting those additions. The company now has 1,017 primarily acquisition, development and expansion facilities, or 78.3 million rentable square feet, in lease-up. Non-Same Store NOI guidance excluding NSA and PS Canada was raised $9.0 million to $355.0 million–$363.0 million.

Excluding NSA and PS Canada, Public Storage acquired 25 facilities with 1.7 million net rentable square feet for $258.4 million in the quarter. Year to date, including activity after September 30, it acquired or was under contract to acquire 65 facilities with 4.7 million net rentable square feet for $713.2 million.

Total indebtedness was $12.2 billion at September 30, with $650 million, or 5.3%, maturing in the fourth quarter of 2026. Liquidity was about $4.1 billion. Net debt to EBITDA was 3.4x versus 3.0x a year earlier; the weighted average interest rate was 3.6%. Credit ratings were A2 at Moody’s and A at S&P.

The company issued C$400 million of Canadian senior notes at 4.54% and $900 million of U.S. senior notes at an effective 4.85% after hedges. Through October 26 it had entered forward sale agreements under its ATM program for 1,230,141 shares at a weighted average $326.51, expected to generate about $399 million of future net proceeds.