Public Storage (PSA) Q3 2026: Same-Store Revenue and NOI Turn Positive

Public Storage (PSA) third-quarter 2026 results show same-store revenue and NOI growing again: the company filed its third-quarter 10-Q on October 26, 2026, held its earnings call on October 27, and raised its full-year guidance [1][2]. Going into the quarter, three questions mattered: whether same-store revenue could recover from its second-quarter low, whether same-store costs would ease, and whether the first partial quarter of the NSA and PS Canada acquisitions would dilute Core FFO per share. In the third quarter, same-store revenue and same-store NOI each rose 0.5% year over year, after declines of 0.6% and 2.2% in the second quarter [1][3]. The revenue gain came from pricing in the existing business, part of the cost relief came from one-time items, and the acquisitions did not dilute Core FFO per share in their first quarter. The effect of a full quarter of both deals has yet to be tested.

Public Storage is the largest owner and operator of self-storage facilities in the United States. It rents storage units to individuals and small businesses on a month-to-month basis. In 2025, self-storage rental revenue was $4.489 billion, about 93% of total revenue, with the rest coming from ancillary businesses such as tenant reinsurance and third-party property management [4]. The company added 550 properties when it closed NSA in July and PS Canada in September [1].

Same-store rent turned positive for the first time this year

Same-store revenue at the 2,755 same-store facilities was $1.022 billion in the third quarter. Realized annual rent per occupied square foot rose 0.2% year over year, compared with a 0.8% decline in the second quarter [1][3].

Higher rents for new customers and lower churn drove the improvement. Average annual contract rent for customers moving in rose 9.3%, while move-in square footage fell 7.1%. Contract rents gained from move-ins still rose 1.6%, so the higher prices more than offset the lower volume [1]. Churn fell to 20.8% from 21.9% a year earlier, average occupancy rose 0.3 percentage points to 92.2%, and in-place annual contract rent per occupied square foot was up 1.2% at September 30 [1].

Public Storage raised its full-year same-store revenue growth guidance by 45 basis points to +0.25%, which implies roughly 1% growth in the fourth quarter [2]. Management said about half of the fourth-quarter uplift comes from Los Angeles, where the company is moving back to market rents after pricing restrictions expired [2]. The 10-Q has no market-level data, so the Los Angeles contribution cannot be verified independently. Move-in volume keeps falling, and it is not yet clear whether the price gains are coming at the expense of demand.

Same-store cost growth slowed, partly because of one-time items

Same-store operating costs rose only 0.4% year over year in the third quarter, below the company's July guidance of 2.0% to 3.0% expense growth for the full year [1][5]. In the second quarter, costs had risen 4.4% [3].

Some of the cost relief looks durable and some does not. On-site payroll fell another 2.7%, and property taxes rose only 1.4% over the first nine months [1]. Third-quarter property taxes fell 0.8% because of refunds, and indirect costs fell 11.2%, partly because of share-based compensation forfeitures. Marketing rose 12.5% as the company used more online paid search, repairs and maintenance rose 17.4%, and direct costs rose 2.0% [1].

Same-store NOI rose 0.5% to $768.8 million [1], but excluding the tax refunds and the forfeitures it was roughly flat. The company raised its full-year same-store NOI guidance by 85 basis points to −0.3% [2]. It did not disclose the size of the refunds or the forfeitures.

The acquisitions did not dilute Core FFO per share in their first partial quarter

Core FFO per share was $4.34 in the third quarter, up 0.7% year over year and above $4.17 in the second quarter [1][3]. NSA and PS Canada contributed $58.6 million of NOI for part of the quarter, and ancillary revenue rose 31.5%. Together these offset a $22.8 million year-over-year increase in interest expense and a 7.6% increase in diluted shares [1].

Public Storage raised its full-year Core FFO guidance to $16.90 to $17.10 per share [2]. Against $12.74 for the first nine months, that implies $4.16 to $4.36 in the fourth quarter, below the third quarter. That gap suggests a full quarter of interest and share costs will weigh more heavily [1][2]. Management said NSA has already moved onto Public Storage systems and PS Canada should complete its systems migration in November. Bringing vacant units back online and capturing synergies are still plans [2].

Conclusion

The third quarter strengthens the case for growth. Same-store revenue is growing again on higher new-customer rents and lower churn, and the acquisitions did not dilute Core FFO per share in their first quarter. Profit conversion is weaker than the headline numbers suggest: tax refunds and share-based compensation forfeitures account for part of the turn in same-store NOI, and higher marketing and repair costs absorbed most of the revenue gain. On cash, the $114.6 million of transaction and integration expense is excluded from Core FFO but is still a real outlay [1].

The next annual report should answer three questions. Can fourth-quarter same-store revenue accelerate to about 1% without relying only on Los Angeles? Can costs stay within 3% without refunds? And in the first full quarter of both acquisitions, can Core FFO per share stay at or above the $4.26 implied by the guidance midpoint?

Sources

1. [1] PSA 10-Q filed 2026-10-26 · 3Q26, 10-Q, 2026-10-26, https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001393311&type=10-Q&dateb=20261026&owner=include&count=10
2. [2] PSA earnings call 2026-10-27 · 3Q26 call summary, earnings call, 2026-10-27, https://investors.publicstorage.com/
3. [3] PSA 10-Q filed 2026-07-29 · same store operating data 2Q26, 10-Q, 2026-07-29, https://www.sec.gov/Archives/edgar/data/1393311/000162828026050612/
4. [4] PSA 10-K filed 2026-02-12 · consolidated statements of income 2023-2025, 10-K, 2026-02-12, https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001393311&type=10-K&dateb=20260212&owner=include&count=10
5. [5] PSA 8-K filed 2026-07-29 · 2026 guidance table, 8-K, 2026-07-29, https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001393311&type=8-K&dateb=20260729&owner=include&count=10