Public Storage

PSA · NYSE · USD

Analysis

Last 4 earnings calls · through Q2 FY2026

Public Storage has stopped waiting for a storage recovery and started buying one. Same-store rents are growing again for the first time since 2021, but the earnings increasingly come from outside the core portfolio. How much do the new deals add to earnings per share by 2029?

  • The rent slump has finally turned.

    Move-in rents rose 1.6% in Q2 FY2026, the first time since 2021 that new rents and occupancy both grew. Customers are staying longer, so guidance was raised across the board. What did the LA rent freeze actually cost?

  • Growth now comes from buying, not from the core stores.

    Same-store revenue was slightly negative in Q2 FY2026 while total revenue grew, because the non-same-store pool lifted NOI 22%. They closed the National Storage Affiliates deal and are buying Canada's third-largest portfolio.

  • Per-share earnings are falling while the deals close.

    Core FFO per share fell year over year in Q2 FY2026, pulled down by higher interest costs and pay. Management calls the low-occupancy buildings it is buying dilutive today. How long until those new buildings earn their cost?

Bullish
  • Move-in rents turning positive
    The bull case is that new customer rents and occupancy are now rising together for the first time in years, so the pricing pressure of the past few years is ending.
  • New supply slowing
    Building competing storage has become harder and more expensive, and the company expects fewer new facilities opening each year through next year and beyond.
  • Acquisitions adding earnings
    Buying National Storage Affiliates and Public Storage Canada adds properties the company believes it can operate better, lifting earnings per share rather than just size.
Bearish
  • Same-store revenue still falling
    The bear case is that same-store revenue and net operating income are still shrinking, so any recovery rests on markets that have lagged for several years running.
  • Sunbelt supply overhang
    New supply in Dallas, Atlanta, Florida and other Sunbelt markets keeps dragging rents and occupancy there, and management expects those markets to stay negative.
  • Large integration burden
    Absorbing a thousand-plus store portfolio and a Canadian platform at the same time tests management, and the revenue benefit from those deals takes years to arrive.
See the full bull & bear case
PoliticiansInstitutionsInsiders
PoliticianTransactionAmountTradedFiled
Donald Trump
Republican · Executive
Purchase≥$50KJul 31Sep 22
Donald Trump
Republican · Executive
Purchase≥$1KJul 23Sep 22
Donald Trump
Republican · Executive
Purchase≥$250KMay 18Jul 1
Donald Trump
Republican · Executive
Sale≥$15KMar 18May 13
Alan Armstrong
Republican · Senate · OK
Purchase≥$1KMar 27Jul 21

Congressional trading data provided by QuiverQuant

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Product segmentsGeography
FY2025 · USD

How Public Storage turned $4.8B of revenue into $1.2B of gross profit.

Revenue
Self Storage Operations$4.5B▲ 2.13% YoY
Ancillary Operations$334.7M▲ 11.71% YoY
Total revenue$4.8B
Gross profit$1.2B25.0%
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