Public Storage Stock Earnings Reports

Public Storage reported stronger-than-expected Q3 2025 results and raised its full-year 2025 outlook for the second straight quarter. Key drivers were better same-store revenue (in-place rents +0.6% but offset by slightly lower occupancy), disciplined expense control (same-store expenses held flat), and outperformance in the non-same-store pool, which helped core FFO per share grow 2.6% in the quarter. Management emphasized technology and AI-led operating changes (omnichannel digital customer path now 85% of interactions, reduced labor hours >30%) that are improving margins and enabling more efficient property staffing. Capital deployment was active: >$1.3 billion of wholly owned acquisitions and developments announced YTD, a $650 million development pipeline to be delivered over the next two years, and an advantaged balance sheet (net leverage ~4.2x) with retained cash flow of roughly $650 million this year. Management sees continued industry supply moderation for 2026–2027, attractive acquisition and development opportunities (targeting ~5.25% going-in yields, stabilizing into the 6% range), and remains confident in driving compounding returns via revenue optimization and platform scale. Near-term headwinds include Los Angeles pricing restrictions (state of emergency in place through early January) and tough property-tax comps in Q4, but L.A. impact is tracking better than initial guidance (now expected to be roughly a -1% to -2% drag for the year vs. ~-3% prior). Overall, the company expects steady stabilization in demand, continued margin upside from operational and tech initiatives, and the capacity to continue accretive acquisitions and developments.