Public Storage

Guidance raised again (second time in 2026) on improving fundamentals - Management raised full-year Core FFO to $16.90–$17.10 per share (midpoint $17.00), up $0.10 (+0.6%) vs prior outlook. - At the midpoint, revised outlook implies same-store revenue +0.25% (was lower) and same-store NOI -0.3% (improved by ~85 bps vs prior) — reflecting stabilization and improving operating momentum rather than a full recovery yet. - Expectations remain low single-digit move-in rent growth, modestly positive occupancy YoY, and churn improvement supporting higher ECRIs (Expected Customer Rent Increases).

Third-quarter operating performance strengthened more than expected (and the “trajectory” improved) - Core FFO (Q3): $4.34/share, +0.7% YoY. - Same-store revenue +0.5% YoY; same-store NOI +0.5% YoY. - Key leading indicator: move-in rate up +9% YoY (described as the strongest since Q2 2022), with move-in rates up +28% vs Q4 2025 (clear sign of pricing power returning). - Churn improving and occupancy ahead of prior year; same-store revenue accelerated sequentially by +110 bps into positive territory. - Demand is still uneven and market-by-market, but the company is seeing a better setup from lower new supply and improving retention.

Macro/supply mix is improving but still a risk; LA rebound is a support, not a surprise - Management sees some Sunbelt pressure from declining/new supply, but supply should moderate, supporting recovery “over time.” - In coastal/Midwest markets, they cite more normalized revenue growth in the ~2% to 4% range. - Los Angeles improved after expiration of state-of-emergency pricing restrictions; LA is not a material outlier relative to the national average, but supports the year. - New California “state of emergency” measures tied to recent storm activity: company expects a de minimis impact to 2026, hoping to return to normal course soon (but it was explicitly mentioned as something monitored).