- Company name
- Public Storage
- Sector
- Self-storage REIT
- About
- Public Storage is a real estate investment trust (REIT) based in Frisco, Texas, and the largest owner and operator of self-storage facilities in the United States. Customers rent storage units, usually by the month. After it bought National Storage Affiliates (NSA) in July 2026, it operates more than 4,500 locations with more than 327 million square feet under the Public Storage brand. On September 1, 2026, it also bought PS Canada, which owns 68 facilities in Canada. Public Storage also earns money from tenant insurance and storage products.
- Thesis
- The market prices Public Storage for weak rent growth in self-storage. Same store revenue fell in the first half of 2026, because realized rent per occupied square foot fell while costs rose. In Q3 2026, same store revenue rose 0.5% and same store net operating income was flat. Public Storage raised its 2026 guidance for same store revenue to a range from flat to a 0.5% gain. Public Storage also grows by purchase: it bought NSA in an all-stock deal and PS Canada for about $1.2 billion, which add debt, new shares and integration work. For the gap to close, same store revenue growth must rise in 2027. Public Storage must reach its raised 2026 Core FFO guidance of $16.90 to $17.10 per share. Its operating platform must also raise the margins of the NSA properties, as management expects, with $110 million to $130 million of yearly synergies within three to four years. The Q4 2026 report and the 2027 outlook, expected in early 2027, are the next test. If these checks pass, the gap can close over the next four to six quarters. The main reason it may not close is a longer period of flat or falling rents.
- Risks
- Same store revenue fell in the first half of 2026 and rose only 0.5% in Q3 2026. If rents stay weak in 2027, same store revenue and net operating income can fall while costs rise.
The NSA and PS Canada purchases add many properties, a joint venture and a new country. Transaction and integration costs were $114.6 million in Q3 2026. Integration problems or weaker results can make the deals add less to Core FFO than planned.
Interest expense rose 29% in Q3 2026, to $102.5 million, because Public Storage added debt for its purchases. Higher interest rates make new debt more costly.
- Balance sheet
- Cash: $560M
Debt: $12.0B
Net debt: $11.4B
Net debt / EBITDA: 3.4× (medium)
Interest cover: 5.7×
Ratings: Moody's A2, S&P A
Public Storage funds itself mostly with unsecured notes, preferred shares and common equity. At September 30, 2026, notes payable were $11.99 billion and cash and equivalents were $560 million. Total debt was $12.2 billion, and $650 million of it matures in Q4 2026. The weighted average interest rate was 3.6% and the weighted average time to maturity was 6.1 years. Net debt was 3.4 times EBITDA, and net debt and preferred equity were 4.7 times EBITDA. Liquidity was about $4.1 billion, from cash, undrawn credit and the cash flow that Public Storage expects to keep over the next 12 months. In Q3 2026, it issued C$400 million of 4.54% notes due 2033 and $900 million of notes at an effective rate of 4.85%, and it fully drew its $500 million term loan. Through October 26, 2026, forward sale agreements under its at-the-market program covered 1,230,141 shares, for about $399 million of future proceeds. Interest cover is operating income before interest expense divided by interest expense for the first nine months of 2026.
As of Sep 30, 2026.
- Checkpoints
- Oct 26, 2026: Q3 2026 earnings: same store revenue. Passed. Watch: Same store revenue near flat or better and Core FFO on track for the $16.75 to $17.05 guidance pass; a guidance cut fails. Outcome: Same store revenue rose 0.5%, Core FFO was $4.34 per share and Public Storage raised its 2026 Core FFO guidance to $16.90 to $17.10 per share.
Jan 26, 2027 (estimate): Q4 2026 results and the 2027 outlook. Pending. Watch: A 2027 outlook with same store revenue growth and a gain in Core FFO from NSA passes; an outlook for another year of falling same store revenue fails.
- Recent events
- Oct 29, 2026: Public Storage Operating Company, a subsidiary, sold $500 million of 5.600% senior notes due 2036, which Public Storage guarantees. The sale closed on November 6, 2026. Public Storage plans to use the money to repay commercial paper and part of the $650 million of 1.500% notes due in 2026.
Oct 26, 2026: Public Storage reported Q3 2026 results. Core FFO was $4.34 per share, up from $4.31. Same store revenue rose 0.5%, same store net operating income was flat and average occupancy was 92.2%. Net income fell to $1.69 per share, from $2.62, mostly because of $114.6 million of transaction and integration costs for NSA and PS Canada and higher depreciation. Public Storage raised its 2026 Core FFO guidance to $16.90 to $17.10 per share and its same store revenue guidance to flat to plus 0.5%.
Oct 5, 2026: Public Storage said that it will report Q3 2026 results after the market closes on October 26, 2026, with a conference call on October 27.
Sep 16, 2026: PS Canada Finance, a subsidiary, issued C$400 million of 4.540% senior notes due 2033, guaranteed by Public Storage. The money replaces cash used for the PS Canada purchase.
Sep 1, 2026: Public Storage completed its purchase of PS Canada, which owns 68 self-storage facilities with about 5.3 million net rentable square feet in Canada. The price was about $1.2 billion: about $900 million in operating partnership units and about $310 million in cash. The sellers can receive up to 768,000 more units if the business reaches profit targets. Public Storage fully drew its $500 million term loan on August 31, 2026.
Jul 29, 2026: Public Storage reported Q2 2026 results. Core FFO was $4.17 per share, down from $4.28. Same store revenue fell 0.6%, same store net operating income fell 2.2% and average occupancy was 92.5%. It raised its 2026 Core FFO guidance to $16.75 to $17.05 per share. It also signed a new $3.0 billion revolving credit facility and a $500 million term loan and set up a $1.0 billion commercial paper program.
Jul 22, 2026: Public Storage completed its all-stock purchase of NSA. NSA shareholders received 0.14 Public Storage shares for each NSA share. A new joint venture holds 313 properties worth about $3.3 billion, with former NSA operating partnership unitholders owning about 80% and Public Storage 20%. After the quarter, Public Storage also sold $900 million of senior notes at an effective rate of 4.855%.