Public Storage

Raised 2026 guidance again on improving fundamentals (core demand + supply moderating) - Management said Q3 operating fundamentals exceeded expectations, supporting an increase to full-year guidance for the 2nd time in 2026. - Core FFO: raised $0.10 (+0.6%) to $16.90–$17.10/share (midpoint $17.00). - Same-store outlook (at midpoint): revenue +0.25% (improved +45 bps vs prior outlook) and NOI -0.3% (improved +85 bps). - Leading indicators strengthened: average move-in rent +9% YoY (strongest since Q2 2022); move-in rates +28% vs Q4 2025. - Expects stabilization → gradual recovery by year-end/into 2027; macro not described as changing materially, but retention improved and new supply is slowing.

Company dynamics in Q3: better retention, sequential acceleration, but demand still uneven - Same-store revenue and NOI each +0.5% in Q3; revenue acceleration sequentially from Q2→Q3 by +110 bps into positive territory. - Occupancy “ahead of prior year” and churn improving (linked to stronger customer focus/culture and customer mix). - Demand described as “uneven” by geography; some Sunbelt markets still pressured by supply, but supply “should support a recovery over time.” - LA improved after expiration of earlier state emergency restrictions; LA is not a major driver of the unusually strong national move-in rent (LA move-in rent slightly under national average).

PS Next + AI: scaling digital/AI operations (surprising strength: Ellie >300k interactions) - PS Next remains central: ~90% of customer interactions are digital; ~3/4 of customers complete leases digitally. - AI virtual agent “Ellie” handled 300k+ customer interactions (management sees this expanding). - Expectation: customers will increasingly engage directly and via AI agents, but AI doesn’t change storage need—just discovery/evaluation. - Investors take-away: platform is positioned to improve customer experience, pricing execution, and operating efficiency, which supports better retention and potentially more ECRI contributions.