Public Storage Q1 FY2025 earnings call

• Move-in volumes increased over 2% as website traffic and customer conversion were driven. Same-store occupancy gap closed. Revenue growth in same-store pool turned positive. Non-same-store pool (21% of portfolio) had revenue growth near 11%. • Core FFO per share grew over 2% for the quarter. • Industry-leading revenue management, 85% of customer interactions are digital, new operating model using AI for efficient staffing. • Broad ancillary and growth avenues: acquisitions, development, redevelopment, domestic and international expansion, tenant insurance, etc. $184 million acquired or under contract as of today, ahead of last year. Non-same-store pool to deliver $80 million of NOI through stabilization in 2026 and beyond. • Self-storage is needs-based, affordable, resilient to economic conditions; industry normalized with move-in rents declining, new customers at affordable rents in line with 2013 levels.

In the first quarter, move-in volumes increased over 2%. The same-store occupancy gap closed from down 80 basis points on December 31 to down 30 basis points on March 31. Revenue growth in the same-store pool turned positive and improved sequentially. The non-same-store pool, comprising 520 properties (21% of the portfolio) saw revenue growth accelerate to nearly 11%. Core FFO per share grew more than 2% for the quarter, a 200 basis point improvement sequentially.

• 2025 guidance unchanged. • Fire-related pricing restrictions in Los Angeles expected to have a 100 basis point impact on same-store revenue growth for the year. • Move-in rates down circa 5%, in line with midpoint of outlook for the year. • April move-in volumes up 3%, move-in rate down 8%, occupancy improved with start of month occupancy down 30 basis points, finishing April down 10 basis points.

• Market volatility, trade policy news flow. • Impact of fire-related pricing restrictions in Los Angeles. • Cost increases related to land, labor, component costs, potential tariffs. • Uncertainty in housing market recovery and its impact on self-storage demand.

Q: Can you help us square away the increasing confidence in fundamentals bottoming with the rate gap staying down 5% through the year?

A: Tom Boyle mentioned move-in volume was strong, move-in rates down circa 5%, monitored customer behavior in April with good payment patterns, move-in volumes up 3% in April, move-in rate down 8%, occupancy improved.

Q: How has the private capital raising environment for storage evolved?

A: Joe Russell said there's still institutional capital interested, but transaction volumes in 2024 and 2025 are light.

Q: Any updates on rent restrictions in L.A.?

A: Tom Boyle said fire-related state of emergencies declared by the governor last until beginning of 2026, impact anticipated to be 100 basis point on same-store revenue, back half weighted.

Q: Color on the dynamic staffing model and payroll expense?

A: Joe Russell said they've optimized labor hours with data, 85% of interactions digital, labor hours down ~12% in Q1 2025, good runway for continued optimization.