Public Storage Q2 same-store revenue falls 0.6%; raises 2026 outlook

Overview

• U.S. self-storage REIT's Q2 same-store revenue fell 0.6% yr/yr, Core FFO per share down 2.6%

• Net income per share rose 44.9% yr/yr, reflecting acquisition activity

• Company raised 2026 Core FFO per share and NOI growth guidance after closing NSA merger, PS Canada deal

Outlook

• Public Storage raises 2026 Core FFO per share guidance to $16.75-$17.05 from $16.35-$17.00

• Company now sees 2026 same store net operating income growth of (2.0)% to (0.3)%

• Company expects 2026 non-same store net operating income of $343 mln to $357 mln

Result Drivers

• SAME-STORE WEAKNESS - Co said Q2 same-store revenue and net operating income declined due to lower realized annual rent per occupied square foot and higher operating expenses

• ACQUISITIONS AND EXPANSION - Co completed NSA merger and agreed to acquire PS Canada, expanding portfolio and expecting future synergies and accretion to FFO

• NON-SAME STORE GROWTH - Revenues and net operating income from non-same store facilities grew over 20% in Q2, reflecting impact of acquisitions and development activity

Company press release: ID:nBw1FT9r4a

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 7 "strong buy" or "buy", 14 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the specialized reits peer group is "buy."

• Wall Street's median 12-month price target for Public Storage is $338.00, about 2.6% above its July 29 closing price of $329.44

• The stock recently traded at 32 times the next 12-month earnings vs. a P/E of 27 three months ago

Reuters Recommended Reads

• July 28 - Extra Space Storage lifts 2026 FFO forecast on higher pricing, cost controls

• July 29 - Mid-America Apartment Q2 core FFO per share falls on historically low resident turnover

• July 28 - REIT BXP raises 2026 FFO forecast amid return-to-office push

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)