Public Storage.

Q2 operating momentum improved; key core metrics stabilized/turned positive - Core FFO: $4.17/share, down YoY (sequentially down from Q1) due mainly to higher financing costs and G&A. - Same-store revenue / NOI: -0.6% / -2.2% YoY; both still negative but ahead of internal expectations. - “Turning point” signals: Average move-in rents +1.6% YoY (first time since 2021 that both new move-in rates and occupancy were up YoY); occupancy 92.5% (+0.2% YoY). - Expense +4.4% YoY pressured by property taxes and marketing (property tax timing: Q1 benefited from earlier appeals wins; 2Q did not), partly offset by payroll savings and machine-learning-based staffing. - Customer churn improved: material reduction in move-out/churn cited; move-out activity ~80% lower in the quarter vs prior period; supports pricing power.

2026 guidance raised across the board; expects improvement over H2 and positive Q4 exit - Same-store revenue growth forecast: midpoint -0.2% (previously worse by +90 bps). - Same-store NOI growth forecast: midpoint -1.1% (improved by +110 bps). - Trajectory: company reiterates 2Q & 3Q were the low points; updated guidance implies improvement from 2Q in H2 and Q4 expected to exit with positive revenue growth. - Key assumptions driving the raise: - New move-in rates improving to positive low single digits (vs prior assumption down mid single digits). - Occupancy forecast +30 bps YoY vs prior flat. - LA State of Emergency headwind now -50 bps to same-store revenue (improved from original -80 bps), with recapture expected to be measured/phased after July 1 expiration. - Core FFO guidance raised: $16.75–$17.05, midpoint $16.90 (+$0.22/share vs prior), driven by better same-store performance, better interest expense, and strong non-same-store/ancillary contributions, partly offset by higher G&A. - Financing benefit from acquisitions: now expected about + $0.02/share positive to core FFO in 2026 (NSA + PS Canada), previously assumed neutral.

Value-creation “engine” executing: NSA closed + PS Canada announced; integration already underway - NSA transaction closed (July 22): - ~1,100 stores / 575k units transitioned overnight onto Public Storage systems; operations began immediately post-close. - Early execution metrics cited: ~1,500 reservations, ~265k autopay switches, started collecting rents, rebranding with temporary signage day 1. - Confidence increasing as PSNext capabilities are applied across portfolio (customer experience, revenue management, efficiencies, pet insurance, G&A reductions). - Expansion opportunities surfaced during integration planning: - Developments/expansions on existing NSA assets (one greenlit at most recent IC). - ~14k units identified to bring back online to drive incremental inventory in 2H 2026. - Public Storage Canada acquisition announced (June; closing expected in Q3): - Adds infill Canada exposure in underpenetrated markets (Toronto/Vancouver concentration). - Strong embedded economics: stated 83% occupancy / 65% NOI margins for the target. - Transaction size: $1.2B funded with ~$900M OP units + ~$300M Canadian debt; seller also has potential $288M additional OP units and earn-outs over 5 years tied to NOI outperformance thresholds. - Capital allocation benefit: helps fund part of NSA with lower-cost Canadian debt (management cited ~100 bps below underwritten US levels). - Non-same-store growth remains a key offset: non-same-store NOI +22% and ancillary growth +15% in Q2 (supporting overall results while same-store remains pressured).