Public Storage

Strong Q3 operating momentum → confidence to raise 2026 outlook (2nd raise this year) - Core FFO: $4.34/share, +0.7% YoY. - Same-store: Revenue +0.5% YoY, NOI +0.5% YoY. - Leading demand indicators improved: Average move-in rent +9% YoY (strongest since Q2 2022); move-in rent rates +28% vs Q4 2025. - Occupancy: remained ahead of prior year; same-store revenue accelerated sequentially by +110 bps into positive territory. - Churn improving: lower churn and better retention cited as key drivers; move-in volumes were modestly lower but pricing strength offset.

2026 guidance raised again; expects modest recovery pattern (but not a “major macro shift”) - Core FFO guidance raised to $16.90–$17.10/share (midpoint $17.00), +$0.10 (+0.6%) from prior outlook. - At the midpoint: same-store revenue +0.25% and same-store NOI -0.3% (both improved vs prior guidance by +45 bps (revenue) and +85 bps (NOI)). - Assumptions remain conservative: low single-digit move-in rate growth and modestly positive YoY occupancy; churn improvement expected to support ECRIs. - Demand remains uneven geographically—supply is easing as new construction slows, but pressure persists in some Sunbelt markets.

PS Next & AI are execution engines (not demand drivers), with measurable early traction - Digital scale: nearly 90% of customer interactions are digital; about 3/4 of customers complete leases digitally. - AI virtual agent “Ellie”: handled 300k+ customer interactions; expected to expand as customers interact directly and via AI agents (Meta/Grok/Dots and others). - Management’s stance: AI doesn’t change storage demand (still local/need-based/physical), but changes how customers discover and transact, supporting retention, pricing, and operating efficiency. - Investors should view this as a margin/retention/efficiency advantage that also improves underwriting and execution speed for growth.