Public Storage

Raised 2026 guidance again; operating momentum stronger than expected - Core FFO (full year): raised $0.10 (+0.6%) to $16.90–$17.10 per share (midpoint $17.00). - Q3 Core FFO: $4.34/share (+0.7% YoY). - Same-store performance (Q3): Revenue +0.5% YoY, NOI +0.5% YoY. - Forward-looking indicators improved: Average move-in rents +9% YoY (strongest since Q2 2022); move-in rates +28% vs Q4 2025; ECRIs expected higher in 4Q due to churn improvements. - Occupancy: remains roughly flat in October; full-year outlook expects modestly positive YoY occupancy.

Demand looks better as retention improves and supply pressure moderates (but macro demand still uneven) - Management says no major macro change, but the setup is improving via: - Better retention (churn down, surveys/operating metrics improving). - Lower move-out pressure (move-out revenue still down, but move-in revenue strength is outpacing it). - Supply backdrop improving: new construction slowing, helping Sunbelt/coastal recovery over time. - Geographic nuance: - Sunbelt: some markets still face supply, but supply declining should support recovery. - Coastal/Midwest: revenue growth ~2% to 4% range with further improvement likely as supply declines. - Los Angeles: after state emergency pricing restrictions expired earlier in 2026, LA returned to positive revenue growth.

PS Next + AI is a core competitive advantage; “AI doesn’t change storage demand,” it changes discovery/lease flow - Digital engagement is already dominant: ~90% of customer interactions are digital and ~3/4 lease digitally. - AI virtual agent (Ellie): now handled 300k+ customer interactions, expanding capability to improve customer experience and reduce team load. - Expectation: more customers will interact via AI agents (e.g., Meta/Grok and others), and Public Storage is tuning the platform for seamless experiences across channels. - Investor takeaway: management links PS Next to better retention, pricing performance, and improved returns versus competitors.