Asked for clarification on the expected cadence of revenue growth for the upcoming quarters, given the strong Q1 start.

Joe Fisher explained that while leading indicators are positive, year-over-year revenue growth, a lagging indicator, is expected to soften in Q2 and Q3 due to pressures from Q3 and Q4 of the previous year. Sequentially, positive trends continue. “year-over-year revenue is a lagging indicator, does get a little bit worse before it gets better. And so we had some pressures in third quarter and fourth quarter of last year, flow into that year-over-year number as we get into 2Q and 3Q.”

Asked about measures to ensure NSA's operations remain intact during peak leasing season and incremental thoughts on expected revenue/expense synergies from the transaction.

Tom Boyle highlighted strong collaboration for integration. Joe Fisher reiterated the synergy target of $110M-$130M over time, with 2026 accretion breakeven and $0.35-$0.50 per share earnings by stabilization in FY28-FY29. “no changes at this point in time in terms of what we put out in early March from that presentation that we put together. We still expect $110 million to $130 million of synergies over time.”

Inquired about the difference in year-over-year occupancy delta between Q4 and Q1, and if any late-quarter pricing push impacted ending occupancy.

Joe Fisher clarified that Q1 occupancy was better than expected due to lower move-outs. The sequential dip from Q4 to Q1 was attributed to adding 17 million square feet of Sunbelt properties (with lower occupancy) to the same-store pool. Tom Boyle added that lower churn led to more pricing power. “we did add about 17 million square feet into the same-store pool from '25 to '26 and predominance of that was a little bit more heavily weighted towards our Sunbelt markets, which are running a little bit lower from an occupancy perspective.”

PSA

Public Storage (PSA) Q1 FY26 earnings call: guidance and Q&A

Earnings call· Mar 2026 (Q1 FY26)· Real Estate· Apr 28, 2026

Source: earnings call transcript

Executive summary

Public Storage Q1 FY26 — PS 4.0 Era Launched with NSA Acquisition and Better-Than-Expected Results

Public Storage launched its PS 4.0 strategy, marked by the announced acquisition of National Storage Affiliates (NSA) and continued advancement of its PS Next operating platform. The company reported better-than-expected Q1 results, driven by strong same-store NOI and improved occupancy, despite an uneven operating environment. Management remains optimistic about long-term fundamentals and value creation through strategic investments.

Highlights

Core FFO increased 2.4% year-over-year to $4.22 per share.
Same-store NOI growth was positive 0.4% year-over-year.
Move-in rates came in better than expected at -2.4% compared to full-year expectations of down mid-single digits.
Occupancy was positive 0.4% year-over-year, exceeding guidance which assumed flat occupancy.
Expense growth performed very well, decreasing 1.1% for the quarter.

Concerns

The operating environment remains uneven with lower customer move-in activity overall in Q1.
New supply continues to weigh on performance and pressure revenues in Sunbelt markets.
The Los Angeles market is hindered by a state of emergency, resulting in a negative 80 basis point impact to same-store performance.
Year-over-year revenue growth is expected to soften mid-year due to prior-year pressures.

Guidance & targets

Category	Target	Timeline	Confidence
NSA acquisition accretion	breakeven high materiality	FY26 · 2026	High
NSA acquisition accretion	$0.35 to $0.50 per share earnings high materiality	FY28-FY29 · 2029	High

Segment performance

Segment	Revenue	YoY	QoQ	Margin
Same-store portfolio Driven by better-than-expected same-store NOI and significant growth from our non-same-store portfolio and ancillary income initiatives. Existing customers continue to perform well as demonstrated by a material reduction in churn. Move-in rates: -2.4% (vs. full year expectation of down mid-single digits)Occupancy: +0.4% YoY (vs. guidance assumed flat)Expense growth: -1.1%	flat	flat	—	positive 0.4%
Los Angeles market Continues to be hindered by the state of emergency with the most recent extension through the end of May. Expected to be a strong tailwind for performance in the future once restrictions are lifted. Impact on same-store performance: -80 bps (assumed for full year)	—	—	—	—
Non-same-store portfolio NOI growth of 27% in our non-same-store pool and ancillary growth of 12% lifted results.	—	27%	—	—

PSA operating KPIs by quarter

PSA operating KPIs stated on its earnings calls, by fiscal quarter
KPI	Dec 2024 Q4 FY24	Mar 2025 Q1 FY25	Change vs prior quarter
Properties Non-same-store	500+ Our outsized non-same-store portfolio of over 500 properties is poised to be a strong contributor again in 2025 with $454 million of NOI assumed at the midpoint. Source: earnings call transcript	520 Revenue growth in our non-same-store pool, which comprises 520 properties and 21% of our portfolio, accelerated to nearly 11%, as it continues to be an engine of growth. Source: earnings call transcript	—

Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

Orderbook & backlog

Development pipeline $618 million Q1 FY26

Stabilized yields targeting 8%; Remaining unfunded: $416 million

Acquisitions under contract $186 million Q1 FY26

Acquired or under contract year-to-date

Deals & partnerships

National Storage Affiliates (NSA) acquisition $10 billion

Public Storage will wholly own 46% of the over 1,000 assets, with the remaining in joint ventures. Integration planning is progressing well.

Welltower partnership

Strategic data science partnership combining Welltower's capital allocation-oriented data science platform with Public Storage's operational pricing and customer analytics to improve micro market targeting and portfolio construction.

Capital programs

Development and expansion openings completed

Period spend: $45 million

Openings during the quarter.

Risks & headwinds

Uneven operating environment and lower customer move-in activity Q1 FY26, near-term

lower customer move-in activity overall in the first quarter with some weather impacts and modest demand.

Mitigation:PS Next operating platform, focus on customer experience, driving better rental rates, strong existing customer base.

New supply competition in Sunbelt markets ongoing, modest improvement expected through '26 and forward

new supply continues to weigh on performance and pressure revenues.

Mitigation:Expectation that new supply will taper down, absorption taking place, development becoming harder/more expensive.

Los Angeles market state of emergency all year (FY26), through the end of May (current extension)

negative 80 basis point impact to same-store performance (assumed for full year); L.A. on a same-store revenue basis does continue to get worse throughout the year, assuming that the state of emergency remains in place.

Mitigation:High quality portfolio, low supply, high occupancy in other Southern California markets, expectation of strong tailwind in the future.

Year-over-year revenue growth softening mid-year Q2 and Q3 FY26

year-over-year revenue growth as a lagging indicator will soften midyear.

Mitigation:Leading indicators remain positive, sequential trends continue to be positive.

Q&A highlights

Inquired about the specifics and drivers of the material reduction in churn and its financial impact.

Joe Fisher explained that lower move-outs were seen throughout the quarter, driven by healthy existing customer payment rates and a focus on customer experience under PS 4.0. Lower churn leads to more profitable existing customers and helps new pricing.

“we've been very encouraged by the existing customer dynamic and them staying with us longer. So we did see a pretty material reduction in that churn number and move-outs coming down in the quarter.”

asked by Michael Goldsmith · answered by Joseph Fisher

2 min read 6 chapters

Detailed narrative

PS 4.0 Era and Strategic Vision

Public Storage has launched its PS 4.0 strategy, focusing on leveraging its scale, brand, portfolio quality, "Own-It" culture, and data analytics. This initiative aims to build the next phase of the company by aligning the organization around a new strategic vision, with internal teams showing enthusiasm and urgency for execution. The strategy emphasizes combining existing strengths with enhanced data and analytics capabilities to create value.

NSA Acquisition as a Key Milestone

The announced acquisition of National Storage Affiliates (NSA) is highlighted as a major step in the PS 4.0 strategy. The transaction is structured as a win-win joint venture, with Public Storage wholly owning 46% of the over 1,000 assets and the remainder in JVs, maintaining a strong balance sheet while deepening its brand, scale, and operating presence.

Integration planning is progressing well, with teams engaged to execute upon closing in the third quarter.

PS Next Operating Platform Advancement

PS Next is an evolving operating platform designed to enhance customer experience, optimize inventory pricing, manage demand, and drive efficiency across the business. It supports increasing digital customer interactions and is crucial for integrating NSA assets and improving the broader portfolio's performance. The platform is seen as a key advantage for the company's value creation engine, shaping how customers are served and operations are managed.

Uneven Operating Environment & Performance

The operating environment remains mixed, with lower customer move-in activity but better-than-expected rental rates and significantly lower move-out activity, leading to improved occupancy year-over-year. While Sunbelt markets face pressure from new supply, coastal and Midwest markets show strong growth. The Los Angeles market continues to be impacted by a state of emergency, creating a drag on performance.

Value Creation Engine & External Growth

Public Storage is actively investing in a broader value creation engine through acquisitions, development, expansion, and its lending platform, aiming to drive stronger per-share growth. This includes a strategic data science partnership with Welltower to enhance micro-market targeting and portfolio construction. The company is positioning itself to outperform as the environment improves, leveraging its capital resources across these levers.

Capital Allocation and Balance Sheet Strength

The company maintains a fortress balance sheet with $1.3 billion in available liquidity and approximately $600 million in annual free cash flow, alongside low leverage ratios. It continues to be disciplined in capital deployment, focusing on opportunities that fit its PS Next operating platform. Recent activities include $186 million in acquisitions/under contract and $45 million in development openings, with a significant development pipeline.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.