Public Storage Raises 2026 Forecast to $17.10 per Share After Third-Quarter Results
Key Facts
Public Storage raised its 2026 core funds from operations forecast after reporting third-quarter results, setting a range of $16.90 to $17.10 per share, compared with a previous range of $16.75 to $17.05. Total revenue was $1.366 billion, versus $1.224 billion in the same period last year. The company also reported core funds from operations of $4.34 per share, up from $4.31 a year earlier. The company said results improved as customer move-outs declined, occupancy rose and customer transfers into its facilities strengthened. The higher forecast signals that management expects these improvements to continue to have an effect through the rest of the year.
But total revenue growth came alongside a more modest increase at same-store properties on the same comparison basis. Revenue at those properties was $1,021.947 million in the third quarter, up 0.5% year over year. This comparison reflects part of the performance of existing locations, while total revenue encompasses the company’s broader business. Public Storage said lower customer move-outs, higher occupancy and stronger customer transfers into its facilities contributed to improved same-store revenue growth. The company said results came in better than its expectations. The company did not provide an analyst consensus estimate in its statement, so its announcement does not rely on a formal comparison of revenue with market expectations.
On profitability, core funds from operations per share rose to $4.34 from $4.31 in the year-earlier quarter, while diluted net income per share fell to $1.69 from $2.62. The divergence between the two metrics gives a different picture of the quarter depending on the profitability measure used. Second-quarter results had shown core funds from operations of $4.17 per share, down 2.6% year over year, while net income was $2.55 per share, up 44.9% year over year. The quarterly comparison highlights the differing direction of net income and funds from operations across the two quarters. The company had said in July that its second-quarter results and strategy enabled it to raise its forecast for the second half of the year.
The results follow the company’s completion of its acquisitions of National Storage Affiliates and Public Storage Canada, and it said it is moving to integrate the two portfolios. Following completion of the National Storage Affiliates deal, the company said in its second-quarter results announcement that its portfolio exceeded 4,500 locations and 327 million square feet. This expansion provides context for total revenue growth, while same-store revenue growth remained at 0.5% in the third quarter. The company did not detail in the information provided how much each acquisition contributed to quarterly revenue. Public Storage said it would continue integrating the portfolios after completing the two deals.
On financing, the company issued a total of $900 million in senior notes at an interest rate of 4.85% after derivative-related hedging activities. The issuance came amid a quarter that combined completed acquisitions, the start of portfolio integration and a higher core funds from operations forecast. The company’s statement did not directly link the interest rate to its earnings forecast or specify in the information provided a quantitative effect of the issuance on results. Public Storage operates as a real estate investment trust focused primarily on acquiring, developing, owning and operating self-storage facilities. Its shares closed at $309.89 on October 23, according to EL7 data.
The company had set its third-quarter results call for October 27, 2026, at 11:00 a.m. Central Time. The call is expected to give management an opportunity to present results and updated forecasts, after the company raised its annual core funds from operations range to $16.90–$17.10 per share. The call also follows the completion of the National Storage Affiliates and Public Storage Canada acquisitions and comes as the portfolios are being integrated. Occupancy, customer move-outs and customer transfers, which the company linked to improved performance, remain operating indicators to watch alongside the updated guidance. The comparison between total revenue growth and growth at existing properties shows an expansion in revenue alongside a limited increase at comparable locations.