Public Storage

Q3 performance beat expectations; company raises 2026 guidance again - Core FFO was $4.34/share (+0.7% YoY). - Same-store revenue +0.5% and same-store NOI +0.5%; forward indicators strengthened meaningfully. - The company raised full-year 2026 core FFO guidance by $0.10 (+0.6%) to $16.90–$17.10/share (midpoint $17.00)—second raise this year. - At the midpoint, outlook implies same-store revenue +0.25% and same-store NOI -0.3% (improved +45 bps and +85 bps vs the prior outlook, respectively). - Expectation/focus for the year remains: low single-digit move in rate growth and modestly positive YoY occupancy, with ECRIs improving as churn falls.

Demand not uniformly strong, but pricing and retention improved; supply backdrop improving - Management described no major macro change, but saw: - Customer retention improving (lower churn). - New customer pricing improving for the 2nd consecutive quarter. - Occupancy ahead of prior year. - Move-in rates accelerated in the quarter: ~+9% YoY (described as the strongest since Q2 2022). - Move-in rates: +28% vs Q4 2025 (positioning as beyond “stabilization”). - Same-store revenue acceleration: sequential +110 bps from Q2 to Q3 into positive territory. - Challenges/negatives: demand remains uneven by geography; Sunbelt new supply still pressures some markets. - Oct/trend so far: trends are consistent; occupancy roughly flat in October; no major deterioration indicated.

PS Next + AI is a strategic execution engine (improving customer experience and supporting underwriting/returns) - Nearly 90% of interactions are digital and ~3/4 of leases are completed digitally. - AI agent “Ellie” has handled 300,000+ customer interactions and continues to expand to improve service while shifting humans to high-touch needs. - Management expects increasing customer interactions through AI agents (e.g., third-party interfaces), and says Public Storage is tuning PS Next for seamless experiences regardless of discovery channel. - Investor-relevant opportunity: PS Next is positioned as a platform advantage that drives higher NOI/cash flow per property and supports disciplined growth.