Public Storage

Strong Q3 operating momentum → guidance raised again (core FFO +0.6% y/y at midpoint) - Core FFO: $4.34/share, +0.7% y/y. - Same-store: Revenue +0.5% and NOI +0.5%; also occupancy ahead of prior year and same-store revenue accelerated sequentially by +110 bps into positive territory. - Leading indicators improved: Average move-in rent growth +9% y/y (best since Q2 2022), and move-in rates +28% vs Q4 2025 (management says beyond recent stabilization). - Guidance (raised second time in 2026): Core FFO $16.90–$17.10/share (+ $0.10, +0.6%) with midpoint $17.00. - At midpoint, management now expects same-store revenue +0.25% and same-store NOI -0.3% for the full year (improvements of +45 bps and +85 bps, respectively, vs prior outlook). - Q4 cadence / outlook: implied Q4 same-store revenue growth ~+1%; October trends are described as consistent (no material shift), with expectations for low single-digit rent growth and modestly positive occupancy y/y, plus ECRIs supported by churn improvements.

Demand backdrop improving but still uneven; supply moderating helps the recovery narrative - Management explicitly says no major macro change, but conditions are shifting: - Demand uneven by geography, with Sunbelt still pressured by new supply but new construction slowing. - Churn improving (helped by “customer obsession” culture and teammate execution) and move-out revenue staying negative, but move-in revenue strength is offsetting. - Market examples: - 2%–4% same-store revenue growth range expected in many coastal/Midwest markets as supply is lower. - Los Angeles returned to positive revenue growth after the earlier expiration of emergency pricing restrictions; management believes improvement continues beyond LA into parts of the Sunbelt. - New “recent” CA storm emergency: assumed in expectations; described as de minimis for 2026 with hope it rolls off soon to restore normal operations.

PS Next + AI are treated as the competitive moat (not a demand driver) - Digital-first execution: ~90% of customer interactions are digital; ~3/4 complete leases digitally. - AI agent traction: “Ellie” handled 300k+ customer interactions (in aggregate) and is expanding. - Management position: AI does not change storage demand (storage remains need-based, local, physical)—it changes how customers discover/compare and engage with operators. - Opportunity presented: customers will increasingly interact via AI agents (Meta/Grok/Dots/etc.), and Public Storage is tuning PS Next to be seamless across those channels.