Public Storage Stock Earnings Reports

Public Storage reported better-than-expected Q3 2025 results and raised its 2025 outlook for the second consecutive quarter. Key operational drivers were stronger-than-anticipated same-store revenue and NOI, outperformance in the non-same-store (lease-up and acquired) pool, and continued expense control. Management highlighted technology and AI investments that have driven customer digitization (85% of interactions now digital) and reduced property labor hours by over 30%, contributing to margin improvement. Acquisition and development activity is elevated: >$1.3 billion of wholly owned acquisitions/developments announced YTD and a $650 million development pipeline to be delivered over the next two years. Balance sheet metrics support further growth (net leverage ~4.2x, retained cash flow ~ $650 million for the year). Management expects supply delivery to remain subdued into 2026–2027, which supports demand and pricing in many markets (West Coast, Chicago, Minneapolis, Tampa, Honolulu noted as strong). Los Angeles remains a headwind due to state-imposed price restrictions (expected to moderate the overall same-store result into Q4), but the company sees the LA drag improving vs. initial expectations. Financial details and trends: move-in rents remain down year-over-year (move-in rate declines ~10–11%), move-in volumes are improving, occupancy is ~40 bps lower year-over-year, core FFO/share grew ~2.6% in Q3 (a 560 bps acceleration vs. prior-year quarter). Underwriting / transaction commentary: management sees attractive opportunities across stabilized and non-stabilized assets, targeting ~5.25% going-in yields that can stabilize into the mid-6% range after operating improvements; nonsame-store incremental stabilized NOI was increased to ~$130 million for 2026 and beyond.