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Public Storage Q3 FFO Rises, Same-Store NOI Grows, 2026 Outlook Raised
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Key Takeaways
Public Storage's Q3 core FFO reached $4.34 per share as revenues rose 11.6% to $1.37 billion.
Same-store NOI rose to $768.8 million as occupancy improved and lower customer churn supported revenue trends.
Public Storage raised 2026 core FFO guidance to $16.90-$17.10 per share on stronger operating trends.
Public Storage (PSA - Free Report) reported third-quarter 2026 core funds from operations (FFO) per share of $4.34, beating the Zacks Consensus Estimate of $4.27. Core FFO moved up marginally from the year-ago quarter. Results benefited from improving same-store operating trends, growth in non-same-store properties and strong ancillary operations.
Quarterly revenues increased 11.6% year over year to $1.37 billion and surpassed the consensus estimate of $1.27 billion. Same-store net operating income (NOI) rose marginally, while average occupancy improved 30 basis points to 92.2%. The company also raised its 2026 core FFO outlook.
PSA's Same-Store Portfolio Returns to Growth
Same-store revenues increased marginally year over year to $1.02 billion. Realized annual rental income per occupied square foot rose to $22.29, while rental income per available square foot improved to $20.54.
Direct operating costs increased 2% to $226.1 million, primarily reflecting higher repairs, maintenance and marketing expenses. However, indirect operating costs declined 11.2% to $27 million. Same-store NOI increased to $768.8 million from $765.1 million, while the NOI margin remained unchanged at 75.2%.
Management highlighted lower customer churn, higher occupancy and strong move-in rates as factors supporting improving revenue trends. These developments helped the mature portfolio return to positive NOI growth despite continued operating cost pressures.
Public Storage's Non-Same-Store Assets Fuel Growth
The non-same-store portfolio remained a major contributor to PSA's operating performance. It comprised 1,017 acquisition, development and expansion properties totaling 78.3 million rentable square feet, representing nearly 29% of its U.S. consolidated portfolio.
Revenues from these properties surged 90.8% during the quarter, while NOI advanced 91.8%. The gains reflected contributions from acquisitions and lease-up properties, including the recently completed strategic transactions.
Excluding strategic acquisitions, acquired facilities generated revenues of $85.4 million, up 20.6%. Revenues from developed and expanded facilities increased 17.4% to $54.7 million, supporting growth across the broader self-storage platform.
PSA's Ancillary Operations Strengthen Results
Ancillary revenues increased 31.5% year over year to $112.1 million from $85.2 million. Tenant reinsurance premiums grew 20.4% to $77.1 million, while management fee revenues surged 90.1% to $28.6 million.
Ancillary operating costs increased 20.1% to $43.7 million. Nevertheless, ancillary NOI climbed 40.1% to $68.4 million, reflecting strong contributions from tenant reinsurance and property management activities.
Public Storage Expands Through Strategic Acquisitions
During the quarter, PSA completed its acquisition of National Storage Affiliates on July 22, 2026. The transaction expanded its operating footprint and is expected to generate annual run-rate synergies of $110-$130 million over the next three to four years.
The company also completed its $1.2-billion acquisition of Public Storage Canada on Sept. 1, adding 68 properties with 5.3 million rentable square feet. The transaction strengthened its presence in major Canadian self-storage markets.
Excluding these transactions, PSA acquired 25 facilities totaling 1.7 million rentable square feet for $258.4 million during the quarter. Its development and expansion pipeline totaled 4.6 million square feet, with estimated aggregate costs of $788.9 million.
Public Storage ended September with total indebtedness of $12.2 billion and approximately $4.1 billion in liquidity. Net debt to EBITDA increased to 3.4X from 3X a year earlier, while the weighted average interest rate rose to 3.6% from 3%.
During the quarter, the company issued C$400 million of senior notes at a 4.54% interest rate. It also completed a $900-million senior notes offering at an effective interest rate of 4.85%, following related hedging activities.
PSA additionally secured approximately $399 million in expected future proceeds through forward equity sale agreements under its at-the-market offering program.
Public Storage Raises Its 2026 Core FFO Outlook
Public Storage raised its 2026 core FFO per share guidance to $16.90-$17.10 from the previous projection of $16.75-$17.05. The revision reflects stronger year-to-date performance and management's optimism regarding operating trends.
The company now expects same-store revenue growth between flat and 0.5% compared with its earlier expectation of a 0.7% decline to 0.3% growth. Same-store NOI is projected to range from a 0.8% decline to 0.2% growth compared with the previous projected decline of 0.3%-2%.
PSA also increased its non-same-store NOI guidance, excluding strategic acquisitions, to $355-$363 million from $343-$357 million, reflecting improved expectations for its operating portfolio.
Crown Castle Inc. (CCI - Free Report) reported third-quarter 2026 adjusted FFO per share of $1.24, up 10.7% year over year. The metric surpassed the Zacks Consensus Estimate of $1.20 by 3.3%. Results benefited from lower interest expenses.
Prologis (PLD - Free Report) reported third-quarter 2026 core FFO per share of $1.60, outpacing the Zacks Consensus Estimate of $1.58. Results benefited from higher rental revenues, steady leasing demand and improved occupancy levels.
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.
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Public Storage Q3 FFO Rises, Same-Store NOI Grows, 2026 Outlook Raised
Key Takeaways
Public Storage (PSA - Free Report) reported third-quarter 2026 core funds from operations (FFO) per share of $4.34, beating the Zacks Consensus Estimate of $4.27. Core FFO moved up marginally from the year-ago quarter. Results benefited from improving same-store operating trends, growth in non-same-store properties and strong ancillary operations.
Quarterly revenues increased 11.6% year over year to $1.37 billion and surpassed the consensus estimate of $1.27 billion. Same-store net operating income (NOI) rose marginally, while average occupancy improved 30 basis points to 92.2%. The company also raised its 2026 core FFO outlook.
PSA's Same-Store Portfolio Returns to Growth
Same-store revenues increased marginally year over year to $1.02 billion. Realized annual rental income per occupied square foot rose to $22.29, while rental income per available square foot improved to $20.54.
Direct operating costs increased 2% to $226.1 million, primarily reflecting higher repairs, maintenance and marketing expenses. However, indirect operating costs declined 11.2% to $27 million. Same-store NOI increased to $768.8 million from $765.1 million, while the NOI margin remained unchanged at 75.2%.
Management highlighted lower customer churn, higher occupancy and strong move-in rates as factors supporting improving revenue trends. These developments helped the mature portfolio return to positive NOI growth despite continued operating cost pressures.
Public Storage's Non-Same-Store Assets Fuel Growth
The non-same-store portfolio remained a major contributor to PSA's operating performance. It comprised 1,017 acquisition, development and expansion properties totaling 78.3 million rentable square feet, representing nearly 29% of its U.S. consolidated portfolio.
Revenues from these properties surged 90.8% during the quarter, while NOI advanced 91.8%. The gains reflected contributions from acquisitions and lease-up properties, including the recently completed strategic transactions.
Excluding strategic acquisitions, acquired facilities generated revenues of $85.4 million, up 20.6%. Revenues from developed and expanded facilities increased 17.4% to $54.7 million, supporting growth across the broader self-storage platform.
PSA's Ancillary Operations Strengthen Results
Ancillary revenues increased 31.5% year over year to $112.1 million from $85.2 million. Tenant reinsurance premiums grew 20.4% to $77.1 million, while management fee revenues surged 90.1% to $28.6 million.
Ancillary operating costs increased 20.1% to $43.7 million. Nevertheless, ancillary NOI climbed 40.1% to $68.4 million, reflecting strong contributions from tenant reinsurance and property management activities.
Public Storage Expands Through Strategic Acquisitions
During the quarter, PSA completed its acquisition of National Storage Affiliates on July 22, 2026. The transaction expanded its operating footprint and is expected to generate annual run-rate synergies of $110-$130 million over the next three to four years.
The company also completed its $1.2-billion acquisition of Public Storage Canada on Sept. 1, adding 68 properties with 5.3 million rentable square feet. The transaction strengthened its presence in major Canadian self-storage markets.
Excluding these transactions, PSA acquired 25 facilities totaling 1.7 million rentable square feet for $258.4 million during the quarter. Its development and expansion pipeline totaled 4.6 million square feet, with estimated aggregate costs of $788.9 million.
PSA Maintains Financial Flexibility Amid Expansion
Public Storage ended September with total indebtedness of $12.2 billion and approximately $4.1 billion in liquidity. Net debt to EBITDA increased to 3.4X from 3X a year earlier, while the weighted average interest rate rose to 3.6% from 3%.
During the quarter, the company issued C$400 million of senior notes at a 4.54% interest rate. It also completed a $900-million senior notes offering at an effective interest rate of 4.85%, following related hedging activities.
PSA additionally secured approximately $399 million in expected future proceeds through forward equity sale agreements under its at-the-market offering program.
Public Storage Raises Its 2026 Core FFO Outlook
Public Storage raised its 2026 core FFO per share guidance to $16.90-$17.10 from the previous projection of $16.75-$17.05. The revision reflects stronger year-to-date performance and management's optimism regarding operating trends.
The company now expects same-store revenue growth between flat and 0.5% compared with its earlier expectation of a 0.7% decline to 0.3% growth. Same-store NOI is projected to range from a 0.8% decline to 0.2% growth compared with the previous projected decline of 0.3%-2%.
PSA also increased its non-same-store NOI guidance, excluding strategic acquisitions, to $355-$363 million from $343-$357 million, reflecting improved expectations for its operating portfolio.
PSA’s Zacks Rank
Public Storage currently carries a Zacks Rank #3 (Hold). 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
Performance of Other REITs
Crown Castle Inc. (CCI - Free Report) reported third-quarter 2026 adjusted FFO per share of $1.24, up 10.7% year over year. The metric surpassed the Zacks Consensus Estimate of $1.20 by 3.3%. Results benefited from lower interest expenses.
Prologis (PLD - Free Report) reported third-quarter 2026 core FFO per share of $1.60, outpacing the Zacks Consensus Estimate of $1.58. Results benefited from higher rental revenues, steady leasing demand and improved occupancy levels.
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.