Public Storage (PSA Quick QuotePSA - Free Report) reported fourth-quarter 2025 core funds from operations (FFO) per share of $4.26, which surpassed the Zacks Consensus Estimate of $4.21. The figure increased 1.2% year over year.

Results were backed by stable same-store operations and incremental contributions from non-same-store properties. The self-storage REIT experienced higher realized annual rent per occupied square foot, though a fall in occupancy partly offset the upside. PSA also issued its 2026 outlook.

Quarterly revenues of $1.22 billion exceeded the Zacks Consensus Estimate of $1.21 billion. Revenues were also up 3.3% year over year.

For full-year 2025, PSA reported core FFO per share of $16.97 compared with $16.67 in 2024, representing an increase of 1.8% year over year. Full-year revenues of $4.82 billion were up 2.7% year over year.

Separately, Public Storage announced the launch of PS4.0, a new strategic initiative focused on leadership transition and long-term value creation. The company announced that Tom Boyle will succeed Joe Russell as chief executive officer effective April 1, 2026, alongside additional executive appointments aimed at strengthening operational execution and digital capabilities. The PS4.0 strategy is designed to enhance customer experience, improve margins and drive sustainable shareholder value creation.

Behind PSA’s Headlines

Public Storage’s same-store revenues marginally (0.2%) declined year over year to $936.2 million in the fourth quarter. Higher realized annual rent per occupied square foot was offset by a decrease in occupancy. This storage REIT witnessed a 0.2% increase in realized annual rental income per occupied square foot to $22.53. The weighted average square foot occupancy of 91.6% was down 0.2% year over year. The cost of operations for same-store facilities increased 3.6% year over year to $202.6 million. PSA’s same-store net operating income (NOI) was down 1.5% year over year at $703.7 million. 

Beyond its same store portfolio, PSA had 606 acquisition, development and expansion properties totaling 54.1 million rentable square feet, accounting for roughly 24% of total portfolio space. Revenues and NOI from this non-same-store segment rose 18.7% and 20%, respectively, year over year in the quarter.

PSA achieved a 78.4% same-store NOI margin in the quarter, down 0.8% from the prior-year quarter.

Interest expenses increased 12.5% year over year to $81.2 million in the fourth quarter.

PSA’s Portfolio Activity

In the fourth quarter, Public Storage acquired 13 self-storage facilities, comprising 0.9 million net rentable square feet of space, for $131.0 million. During the quarter, PSA completed development and expansion projects that together added roughly 1.0 million net rentable square feet, costing approximately $140 million.

As of Dec. 31, 2025, Public Storage had facilities in development and expansion expected to contribute roughly 3.5 million net rentable square feet at an aggregate cost of around $609.9 million, with remaining development costs of $415.6 million to be incurred over the next 18 to 24 months.

In the fourth quarter, PSA expanded its third-party property management platform by onboarding 28 facilities. As of Dec. 31, 2025, the company managed 362 facilities, representing 28.2 million net rentable square feet, under this program. PSA was under contract to manage 84 more facilities totaling 7.1 million net rentable square feet, including 78 properties currently under construction.

PSA’s Balance Sheet Position

Public Storage exited the fourth quarter of 2025 with a strong liquidity position of $2.4 billion. The weighted average interest rate on total debt was approximately 3.2%, with a weighted average maturity of about 6.3 years, reflecting a well-structured debt ladder. Total indebtedness as of Dec. 31, 2025 was $10.3 billion.

PSA’s 2026 Guidance

Public Storage provided its initial 2026 core FFO per share outlook in the range of $16.35-$17.00. The Zacks Consensus Estimate is currently pegged at $17.06.

The company’s full-year assumptions include 2.2% decline-to-flat same-store revenue growth, a 1.5%-2.8% same-store expense increase and a fall of 3.9% to 0.5% in same-store NOI.

The outlook reflects expectations of modest same-store softness, partially offset by contributions from acquisitions and development completions. Non-same-store NOI is projected to be in the range of $335-$355 million.

Public Storage currently carries a Zacks Rank #4 (Sell). 

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Public Storage Price, Consensus and EPS Surprise

Public Storage price-consensus-eps-surprise-chart | Public Storage Quote

Upcoming Earnings Releases

We now look forward to the earnings releases of other REITs — Host Hotels & Resorts, Inc. (HST Quick QuoteHST - Free Report) and Extra Space Storage Inc. (EXR Quick QuoteEXR - Free Report) — which are slated to report on Feb. 18 and 19, respectively.

The Zacks Consensus Estimate for Host Hotels & Resorts’ fourth-quarter 2025 FFO per share stands at 47 cents, indicating a 6.8% increase year over year. HST currently has a Zacks Rank #3 (Hold).

The Zacks Consensus Estimate for Extra Space Storage’s fourth-quarter 2025 FFO per share stands at $2.03, implying no change year over year. EXR currently has a Zacks Rank #4.

Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.