Public Storage Stock Earnings Reports

Public Storage reported better-than-expected Q3 2025 results and raised its full-year 2025 outlook for the second consecutive quarter. Same-store revenue and NOI outperformance was driven by strong in-place customer behavior (existing-customer stickiness), while non-same-store (acquisitions and developments) also contributed meaningfully to core FFO per share growth (core FFO per share +2.6% in Q3, a 560 bps acceleration y/y). Management emphasized technology and operating initiatives—omnichannel/digital adoption (85% of interactions now digital), AI-driven field operations and revenue/asset management—that have cut property labor hours by over 30% and improved margins. Capital deployment remains active: >$1.3 billion of acquisitions and developments announced YTD, a $650 million development pipeline to be delivered over the next two years, and targeted going-in yields around the mid-5% range that are expected to stabilize into the 6% range. Balance sheet remains strong (net leverage ~4.2x, retained cash flow ~ $650 million), enabling continued acquisitions and development. Industry supply is moderating (fewer new deliveries expected through 2026–2027), supporting a stabilizing demand backdrop. Near-term headwinds include Los Angeles pricing restrictions (now expected to be a milder drag—roughly -1% to -2% on LA for the year vs. prior -3% expectation) and a tough property-tax comp in Q4. Management remains opportunistic on transactions and confident in continued margin and FFO per share upside from their operating and capital-allocation platform.