Financial Data and Key Metrics Changes - Core FFO for Q4 was $4.26 per share, resulting in full-year core FFO of $16.97 per share, at the high end of guidance [23] - Same-store revenue and NOI growth for the quarter were -0.2% and -1.5% respectively, with declines in move-in rents offset by strong existing customer performance [23] - Outside the same-store pool, NOI growth of 20% in the non-same-store pool contributed to a 1.2% year-over-year increase in Core FFO per share [24] - The company ended the year with available liquidity of $1.8 billion and a debt plus preferred equity to EBITDA ratio of 4.2x [26] Business Line Data and Key Metrics Changes - The company acquired $131 million in new acquisitions during the quarter, bringing the total for 2025 to $953 million [25] - Development openings totaled $409 million for the year, with a total development pipeline of $610 million targeting stabilized yields of 8% [25] - The lending platform grew with $131 million deployed in 2025, bringing the total outstanding lending business to $142 million [25] Market Data and Key Metrics Changes - 10% of the U.S. population currently uses storage, with self-storage adoption increasing among Generation Z, millennials, and the 65+ cohort [12] - Competitive supply is slowing as new development becomes harder and more expensive, with momentum building in the strongest markets [13] Company Strategy and Development Direction - The company is unveiling PS 4.0, a new strategic vision designed to drive accelerated performance and long-term value creation [5][14] - The strategic vision focuses on three core pillars: PS Next operating platform, value creation engine, and an "own it" culture [15][19] - The company aims to enhance customer experience through AI and data science, optimizing pricing and operational efficiency [16][70] Management's Comments on Operating Environment and Future Outlook - Management expects 2026 to show slight improvement over 2025, with same-store revenue and NOI guidance at -1.1% and -2.2% respectively [27] - The company anticipates occupancy to remain stable, with new move-in rents expected to improve throughout the year [40] - Management is optimistic about the potential for organic growth driven by strong customer performance and decreasing supply [60] Other Important Information - The company has undergone significant leadership changes, with Tom Boyle promoted to CEO and Joe Fisher appointed as President and CFO [6][7] - The headquarters is relocating to Frisco, Texas, which is expected to enhance operational efficiency and talent acquisition [62] Q&A Session Summary Question: What are the greatest near-term opportunities for growth? - Management highlighted a variety of seller types and sizes, with a focus on single and double opportunities, as well as small and medium-sized portfolios [32] Question: What is the expected cadence of same-store revenue growth? - Management indicated that while there may be pressure on year-over-year revenue initially, they expect improvements by the fourth quarter of the year [40] Question: Can you provide an update on move-in rents? - Move-in rents for January were down 7%, but occupancy remained stable, indicating a healthy start to the year [44] Question: What is the long-term growth profile of the company? - The company aims to build on past outperformance through organic growth and a strong focus on customer experience, supported by a value creation engine [60]

Financial Data and Key Metrics Changes - Core FFO per share for Q4 was $4.26, resulting in full-year core FFO of $16.97 per share, at the high end of guidance [23] - Same-store revenue and NOI growth for the quarter were -0.2% and -1.5% respectively, with declines in move-in rents offset by strong existing customer performance [23] - Non-same-store NOI growth was 20%, contributing to a 1.2% year-over-year increase in Core FFO per share [24] Business Line Data and Key Metrics Changes - The company acquired $131 million in new acquisitions during the quarter, bringing the total for 2025 to $953 million [25] - Development openings totaled $409 million for the year, with a total development pipeline of $610 million targeting stabilized yields of 8% [25] - The lending platform grew with $131 million deployed in 2025, totaling $142 million at a current rate of approximately 7.9% [25] Market Data and Key Metrics Changes - 10% of the U.S. population currently uses storage, with increasing adoption among Generation Z, millennials, and the 65+ cohort [12] - Competitive supply is slowing as new development becomes harder and more expensive, with momentum building in the strongest markets [12] - The company expects occupancy to remain stable, with new move-in rents projected to improve throughout the year [27] Company Strategy and Development Direction - The company unveiled PS 4.0, focusing on customer experience, strong capital allocation, and a winning culture to drive performance [4][15] - The strategic vision includes three core pillars: PS Next operating platform, value creation engine, and an "own it" culture [15][19] - The company is investing in AI and data science to enhance customer interactions and operational efficiency [16][69] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the team's ability to drive outperformance and revenue growth despite recent challenges [24] - The economic backdrop for 2026 is expected to be slightly better than 2025, with same-store revenue and NOI guidance at -1.1% and -2.2% respectively [27] - Management highlighted the importance of investing in the platform to control outcomes and prepare for future improvements [86] Other Important Information - The company is relocating its headquarters to Frisco, Texas, to consolidate operations and leverage talent [62] - The transition in leadership includes Tom Boyle as CEO and Joe Fisher as President and CFO, with a focus on succession planning [4][5] Q&A Session Summary Question: What are the greatest near-term opportunities for growth? - Management noted a variety of seller types and sizes, with a focus on single and double opportunities, as well as small and medium-sized portfolios [32] Question: What is the expected cadence of same-store revenue growth throughout the year? - Management indicated that year-over-year revenue is a backward-looking indicator, with expectations for improvement in the fourth quarter of 2026 [36][40] Question: Can you provide an update on move-in rents thus far into Q1? - Move-in rents for January were down 7%, but occupancy remained stable, indicating a healthy start to the year [44] Question: What is the long-term growth profile of the company with PS Next? - The company aims to build on past outperformance through organic growth and a strong focus on customer experience, with additional contributions from acquisitions and ancillary businesses [58] Question: What are the operational or financial benefits of relocating the headquarters? - The relocation is expected to enhance operational efficiency and talent acquisition, with some associated costs already factored into corporate transformation expenses [62][64]

1 4Q25 Earnings & 2026 Guidance Presentation including Leadership Announcements and PS4.0 Introduction Public Storage Executive Speakers Tom Boyle CEO Effective April 1st Joe Fisher President & CFO Effective February 16th 2 Joe Russell President & CEO Retiring March 31st Key Takeaways | Looking Back on Our Success | Industry leadership in Operations, Core FFO growth, and Total Shareholder return – A great foundation for future success | | --- | --- | | Self-Storage Industry Outlook | Strong long-term outloo ...

Core Insights - Public Storage (PSA) reported Q4 2025 core funds from operations (FFO) per share of $4.26, exceeding the Zacks Consensus Estimate of $4.21, marking a 1.2% year-over-year increase [1] - The company announced its 2026 outlook, projecting core FFO per share in the range of $16.35-$17.00, with expectations of modest same-store softness offset by contributions from acquisitions and development [11][12] Financial Performance - Q4 revenues reached $1.22 billion, surpassing the Zacks Consensus Estimate of $1.21 billion, and increased by 3.3% year over year [2] - For the full year 2025, PSA reported core FFO per share of $16.97, up 1.8% from $16.67 in 2024, with total revenues of $4.82 billion, reflecting a 2.7% year-over-year increase [2] Operational Highlights - Same-store revenues slightly declined by 0.2% year over year to $936.2 million in Q4, with a 0.2% increase in realized annual rental income per occupied square foot to $22.53, while occupancy decreased [4] - PSA's same-store net operating income (NOI) fell by 1.5% year over year to $703.7 million, with a same-store NOI margin of 78.4%, down 0.8% from the previous year [5] Strategic Initiatives - PSA launched PS4.0, a strategic initiative aimed at leadership transition and long-term value creation, with Tom Boyle set to succeed Joe Russell as CEO on April 1, 2026 [3] - The PS4.0 strategy focuses on enhancing customer experience, improving margins, and driving sustainable shareholder value [3] Portfolio Activity - In Q4, PSA acquired 13 self-storage facilities for $131 million, adding 0.9 million net rentable square feet, and completed development projects adding approximately 1.0 million net rentable square feet at a cost of around $140 million [6] - As of December 31, 2025, PSA had 606 acquisition, development, and expansion properties totaling 54.1 million rentable square feet, accounting for about 24% of its total portfolio space [5] Balance Sheet and Liquidity - PSA ended Q4 2025 with a strong liquidity position of $2.4 billion, with total indebtedness of $10.3 billion and a weighted average interest rate on total debt of approximately 3.2% [10] 2026 Guidance - The company anticipates a 2.2% decline to flat same-store revenue growth and a same-store expense increase of 1.5%-2.8% for 2026, with same-store NOI expected to fall by 3.9% to 0.5% [11][12]

Core Insights - Public Storage (PSA) reported a revenue of $1.22 billion for the quarter ended December 2025, marking a year-over-year increase of 3.3% and exceeding the Zacks Consensus Estimate of $1.21 billion by 0.57% [1] - The earnings per share (EPS) for the same period was $4.26, up from $3.21 a year ago, and also surpassed the consensus EPS estimate of $4.21 by 1.18% [1] Financial Performance Metrics - Square foot occupancy was reported at 91%, slightly below the estimated 92.1% by analysts [4] - Annual contract rent per occupied square foot was $22.55 million, slightly above the estimated $22.5 million [4] - Revenues from ancillary operations reached $86.87 million, exceeding the average estimate of $84.12 million, representing a year-over-year change of 12.3% [4] - Revenues from self-storage facilities were $1.13 billion, matching the four-analyst average estimate and reflecting a year-over-year increase of 2.6% [4] - Net earnings per share (diluted) were reported at $2.60, surpassing the average estimate of $2.52 [4] Stock Performance - Shares of Public Storage have returned 2.1% over the past month, in contrast to the Zacks S&P 500 composite's decline of 0.3% [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

分组1 - Public Storage reported quarterly funds from operations (FFO) of $4.26 per share, exceeding the Zacks Consensus Estimate of $4.21 per share, and showing an increase from $4.21 per share a year ago, resulting in an FFO surprise of +1.18% [1] - The company achieved revenues of $1.22 billion for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 0.57%, and an increase from $1.18 billion in the same quarter last year [2] - Public Storage has consistently outperformed consensus FFO and revenue estimates over the last four quarters, indicating strong operational performance [2] 分组2 - The stock has gained approximately 13.2% since the beginning of the year, significantly outperforming the S&P 500's gain of 1.4% [3] - The future performance of Public Storage's stock will largely depend on management's commentary during the earnings call and the outlook for FFO [3][4] - The current consensus FFO estimate for the upcoming quarter is $4.14 on revenues of $1.21 billion, and for the current fiscal year, it is $17.06 on revenues of $4.95 billion [7] 分组3 - The Zacks Industry Rank indicates that the REIT and Equity Trust - Other sector is currently in the bottom 27% of over 250 Zacks industries, which may negatively impact stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in estimate revisions, which can be tracked by investors [5]

Financial Performance - In 2025, net income allocable to common shareholders was $1.6 billion or $9.01 per diluted common share, a decrease of $287.1 million or $1.63 per diluted common share compared to 2024 [158]. - In 2024, net income allocable to common shareholders was $1.9 billion or $10.64 per diluted common share, a decrease of $76.1 million or $0.42 per diluted common share compared to 2023 [160]. - Net income allocable to common shareholders decreased by 15.3% to $1,585,585 in 2025 from $1,872,685 in 2024 [165]. - FFO allocable to common shares declined by 8.1% to $2,780,451 in 2025 compared to $3,025,914 in 2024 [165]. - Core FFO allocable to common shares increased by 1.7% to $2,985,489 in 2025 from $2,935,068 in 2024 [165]. - Net operating income for 2025 was $2,828,915, down 0.5% from $2,844,219 in 2024 [196]. - Overall, the company reported a 1.1% decrease in net operating income across all markets, totaling $115,545 in 2025 compared to $109,041 in 2024 [196]. Revenue and Operations - Revenues from Same Store Facilities remained relatively unchanged in 2025, while Same Store cost of operations increased by 1.8% ($16.6 million) due to higher property tax expenses [154]. - Total revenues for the year ended December 31, 2025, reached $3,764,833, a slight increase from $3,763,553 in 2024, reflecting a change of 0.03% [196]. - Total revenues from Same Store Facilities remained stable at $3,764,833 in 2025, a slight increase from $3,763,553 in 2024 [168]. - Revenues from Acquired Facilities surged by 32.7% to $246,669 in 2025, up from $185,924 in 2024 [168]. - Newly Developed and Expanded Facilities generated revenues of $183,022 in 2025, reflecting a 14.0% increase from $160,615 in 2024 [168]. - Total revenues from ancillary operations reached $334.7 million in 2025, up from $299.6 million in 2024, reflecting a year-over-year increase of 11.7% [226]. Acquisitions and Expansions - The company acquired 273 facilities with 19.9 million net rentable square feet for $3.9 billion since the beginning of 2023, contributing to a 25.6% increase ($59.5 million) in net operating income from Acquired Facilities and Newly Developed and Expanded Facilities in 2025 [155]. - The company acquired BREIT Simply Storage LLC for $2.2 billion, which included 127 self-storage facilities totaling 9.4 million square feet [207]. - The company acquired a total of 273 facilities across 2023, 2024, and 2025, enhancing its market presence [204]. - The company expects to add 0.9 million net rentable square feet of storage space through ongoing expansions at an estimated cost of $130.4 million [220]. - As of December 31, 2025, the company has 29 additional facilities in development, totaling 2.6 million net rentable square feet with an aggregate development cost of approximately $479.5 million [221]. Costs and Expenses - Total cost incurred for development and expansions completed by December 31, 2025, was $1.7 billion [155]. - Total depreciation and amortization expense increased by 2.0% to $1,151,840 in 2025 from $1,129,766 in 2024 [168]. - Direct expenses increased to $820,373 in 2025, up 1.2% from $810,293 in 2024 [196]. - Interest expense increased to $311.0 million in 2025 from $297.9 million in 2024, primarily due to the issuance of unsecured notes [237]. - The company spent $218 million on capital expenditures in 2025 and expects to spend approximately $175 million in 2026, including $60 million for solar panel installations [252]. Market and Economic Conditions - The company expects Same Store Facilities revenues in 2026 to be modestly below those earned in 2025 due to potential macroeconomic uncertainties [184]. - Elevated interest rates could significantly increase debt service costs and impact the attractiveness of the company's dividend yield [261]. - Economic downturns or high inflation could adversely affect the company's financial results and access to capital [84]. Risks and Compliance - The company is exposed to risks related to its investment in Shurgard, including currency risks and legislative changes in European markets [85]. - The company faces risks related to the failure or disruption of its computer and communications systems, which could result in significant costs and operational challenges [94]. - The company is subject to increasing regulatory scrutiny related to information security and data privacy, which could result in additional compliance costs and operational challenges [96]. - The company may face significant excise or penalty taxes if it fails to qualify as a REIT, which would reduce cash available for distributions to shareholders [111]. Technology and Innovation - The company has begun utilizing artificial intelligence technologies in various aspects of its business, which may lead to operational challenges and reputational risks due to potential errors and malfunctions [92]. - Cybersecurity incidents have not had a material impact on the company's business or operations to date, but the frequency and magnitude of such attacks are increasing, raising concerns about the adequacy of cybersecurity insurance coverage [98]. - The company has implemented policies to manage risks associated with artificial intelligence and cybersecurity, but there is no guarantee that these measures will be effective [93].

Financial Performance - Net income per share for Q4 2025 was $2.60, a decrease of 19.0% from $3.21 in Q4 2024; full-year net income per share was $9.01, down 15.3% from $10.64 in 2024[2] - Core FFO per share for Q4 2025 was $4.26, an increase of 1.2% from $4.21 in Q4 2024; full-year Core FFO per share was $16.97, up 1.8% from $16.67 in 2024[2] - Net income for the year ended December 31, 2025, was $1,797,032, down from $2,084,410 in 2024, a decrease of 13.8%[38] - Net income allocable to common shareholders decreased by 19.0% to $456,979 in Q4 2025 from $564,398 in Q4 2024[40] - Funds from Operations (FFO) allocable to common shares decreased by 10.8% to $761,581 in Q4 2025 compared to $853,679 in Q4 2024[40] - Core FFO allocable to common shares increased by 1.2% to $749,853 in Q4 2025 from $740,962 in Q4 2024[40] Revenue and Occupancy - Same Store revenue growth was positive in 56% of markets, up from 49% in Q4 2024; Same Store net operating income margin was 78.4%[4] - Self-storage revenues from same store facilities were $936,172 in Q4 2025, slightly down from $937,686 in Q4 2024[43] - Total revenues for Q4 2025 reached $1,215,792, a 3.5% increase from $1,177,427 in Q4 2024[38] - Square foot occupancy at December 31, 2025, was 91.0%, an increase of 0.5% from 90.5% in the previous year[35] - Realized annual rental income per occupied square foot for 2025 was $22.54, a 0.5% increase from $22.43 in 2024[35] - The annual contract rent per occupied square foot decreased by 0.7% to $22.55 as of December 31, 2025, compared to $22.72 in 2024[35] Expenses and Liabilities - Total expenses for Q4 2025 were $739,743, up from $702,699 in Q4 2024, reflecting a 5.3% increase[38] - Interest expense rose to $81,185 in Q4 2025, compared to $72,135 in Q4 2024, marking a 12.8% increase[38] - As of December 31, 2025, the company had total indebtedness of $10.3 billion, with a weighted average interest rate of 3.2% and a weighted average term of 6.3 years[16] - Total liabilities rose to $10,866,770, compared to $9,941,282, reflecting an increase of approximately 9.3%[45] Acquisitions and Developments - The company acquired 13 self-storage facilities for $131.0 million, adding 0.9 million net rentable square feet; total acquisitions for the year reached 90 facilities for $966.3 million[11] - New developments and expansions added 1.0 million net rentable square feet at a cost of $140.1 million in Q4 2025; for the year, 2.1 million net rentable square feet were added at a cost of $408.9 million[12] - The company is in the process of developing facilities expected to add 3.5 million net rentable square feet at an estimated cost of $609.9 million over the next 18 to 24 months[13] Strategic Vision and Management - PS4.0 was announced as a new strategic vision aimed at enhancing shareholder returns and improving customer and employee experiences[18] - The company managed 362 facilities through its third-party property management program, with an additional 84 facilities under contract[15] Market Conditions and Future Outlook - The company anticipates potential impacts from inflation and macroeconomic conditions on future performance, as outlined in their forward-looking statements[31] - The company expects Same Store revenue growth in 2026 to range from (2.2)% to 0%; Core FFO per share guidance is set between $16.35 and $17.00[6] Financial Position - Total assets increased to $20,208,604, up from $19,754,934, representing a growth of approximately 2.3% year-over-year[45] - Cash and equivalents decreased to $318,095 from $447,416, a decline of about 29%[45] - Public Storage shareholders' equity decreased to $9,248,128 from $9,712,606, a decline of about 4.8%[45] - Accumulated deficit increased to $(1,219,273) from $(699,083), indicating a worsening financial position[45] - Total real estate facilities, net, increased to $18,804,558 from $18,360,653, a growth of approximately 2.4%[45] - Notes payable increased to $10,253,881 from $9,353,034, an increase of about 9.6%[45] - Investment in unconsolidated real estate entity rose to $388,586 from $382,490, a slight increase of about 1.3%[45] - Accumulated other comprehensive loss improved to $(47,799) from $(71,965), indicating a positive change[45] - Construction in process decreased to $194,355 from $308,101, a decline of approximately 37%[45]

Core Insights - Public Storage (PSA) is expected to report fourth-quarter 2025 results on February 12, with anticipated revenue growth and stable core funds from operations (FFO) per share [1][10] Financial Performance - In the last reported quarter, PSA achieved a core FFO per share of $4.31, exceeding the Zacks Consensus Estimate of $4.24, driven by higher annual rent per occupied square foot, despite a decline in occupancy [2] - The Zacks Consensus Estimate for fourth-quarter revenues from self-storage facilities is projected at $1.13 billion, an increase from $1.10 billion in the same period last year, while revenues from ancillary operations are expected to rise to $84.1 million from $77.3 million [5][10] - The overall quarterly revenue estimate stands at $1.21 billion, reflecting a 2.7% year-over-year increase [6] Market Position and Strategy - PSA benefits from a strong brand presence in the self-storage industry and operates in major U.S. metropolitan markets with high population density, which supports revenue growth [3][10] - The self-storage sector is characterized as need-based and resilient during economic downturns, with low capital expenditure requirements and high operating margins, contributing to PSA's growth through acquisitions and expansion [4] Analyst Sentiment - Analysts have shown some caution, as the Zacks Consensus Estimate for fourth-quarter core FFO per share has been slightly revised down to $4.21, indicating no year-over-year change [7] - PSA currently holds a Zacks Rank of 4 (Sell) and an Earnings ESP of -0.07%, suggesting limited potential for a positive surprise in FFO this quarter [9]

Group 1 - Public Storage (PSA) and Extra Space Storage (EXR) stocks experienced declines following a downgrade from BofA Securities, which cited lower earnings estimates for the self-storage REITs [4] - PSA's stock price decreased by 1.79%, reaching $283.34 during Thursday morning trading [4] - EXR's stock price fell by 1.42%, settling at $139.70 [4]