Public Storage

Raised full-year 2026 guidance again; operating momentum improving - Management raised Core FFO to $16.90–$17.10/share (midpoint $17.00), up $0.10 (+0.6%) for the second time this year. - At the midpoint, same-store revenue expected +0.25% YOY (improved +45 bps from prior outlook) and same-store NOI expected -0.3% YOY (improved +85 bps). - Q3 performance: Core FFO $4.34/share (+0.7% YOY); same-store revenue/NOI each +0.5% YOY. - Earnings driver “leading indicators” strengthened: average move-in rent up +9% YOY (strongest since Q2 2022) and move-in rate up +28% vs Q4 2025, signaling a shift beyond stabilization. - Expense growth ~flat; G&A and financing headwinds were more than offset by improving core and external/ancillary income.

Demand/supply dynamics: better retention and pricing; occupancy stabilizing; uneven by geography - Management attributes improvement to better customer retention/churn and stronger new-customer pricing, plus a more favorable supply backdrop as new construction slows. - Occupancy remained ahead of prior year; same-store revenue accelerated sequentially from Q2 to Q3 by +110 bps into positive territory. - October trends were described as consistent (not a material change vs Q3), with occupancy roughly flat as of October. - Exit 2026 positioning: confidence that the business is moving from stabilization to gradual recovery. - Geographic mix: Sunbelt faces ongoing supply pressure; coastal/Midwest show more normalized revenue growth in the ~2%–4% range. Los Angeles improving after emergency pricing restrictions expired.

PS Next + AI: scale-up of digital/AI capabilities expected to improve customer experience and efficiency (not change storage demand) - Nearly 90% of customer interactions digital; about ¾ complete leases digitally. - AI agent (“Ellie”) now handled 300k+ customer interactions and continues expanding. - Management expects AI interfaces (their agent and third-party AI agents) to increasingly mediate how customers discover and engage—but underlying storage need remains physical and local. - Investor-relevant implication: PS Next is positioned as a durable moat improving NOI and cash flow, strengthening underwriting and execution speed.