Public Storage

Raised 2026 guidance again (core momentum improving; stabilization → gradual recovery) - Management raised full-year Core FFO to $16.90–$17.10 per share (midpoint $17.00), up $0.10 (+0.6%)—the second raise this year. - For the full year at the midpoint, they now expect same-store revenue +0.25% YoY and same-store NOI -0.3% YoY (improved by +45 bps and +85 bps, respectively, vs prior outlook). - Back half assumptions remain broadly steady: low-single-digit move in rent growth, modestly positive occupancy YoY, and churn improvement supporting higher ECRIs.

Strong Q3 operating indicators (best-in-class pricing strength; retention improving) - Q3 Core FFO: $4.34/share (+0.7% YoY). - Same-store revenue and NOI each +0.5% in Q3. - Key leading indicators: - Average move-in rent growth +9% YoY (described as best since Q2 2022). - Move-in rates +28% vs Q4 2025, signaling pricing is moving beyond “stabilization.” - Occupancy remained ahead of prior year, and same-store revenue accelerated sequentially by 110 bps into positive territory. - Demand is still described as uneven, but conditions improved due to better retention and a more favorable supply backdrop as new construction slows.

PS Next + AI “Elli” advancing customer experience and operational efficiency (surprising: scale of AI interactions) - Nearly 90% of customer interactions are digital; ~3/4 of customers complete leases digitally. - Elli (AI virtual agent) has handled 300k+ customer interactions (already meaningful adoption). - Expectation: customers increasingly engage through AI agents (Meta, Grok bots, etc.), so Public Storage is tuning its experience to remain seamless across interfaces. - Investor-relevant framing: AI changes discovery/engagement, not the underlying storage demand (storage remains local/physical/need-based).