Public Storage (PSA) Q2 2025 earnings summary

Executive summary

• Raised 2025 outlook due to stabilizing operations and accelerated acquisitions, with over $1.1 billion in investments anticipated and $785 million closed or under contract year to date.

• Maintains industry leadership in revenue per square foot and operational efficiency, leveraging technology and platform transformation to enhance satisfaction and margins.

• Portfolio expansion driven by best-in-class acquisition and development teams, supported by a growth-oriented balance sheet.

• Ancillary businesses, including tenant insurance and third-party management, are expanding and contributing to growth.

• International growth opportunities highlighted by success with Shurgard in Europe and a revised offer to acquire Abacus Storage King, with an estimated $710 million share funded by AUD-denominated debt.

Financial highlights

• Q2 2025 net income allocable to common shareholders was $309.0 million ($1.76/share), down from $468.4 million ($2.66/share) year-over-year, mainly due to higher foreign currency losses.

• Core FFO per share was $4.28 for Q2 2025, up 1.2% year-over-year; FFO per share was $3.44, down 20%.

• Same-store revenue growth in key markets ranged from 2% to 4% year-over-year, while overall Same Store Facilities revenue rose 0.2% and NOI margin was 78.8%.

• Non-same-store and ancillary NOI growth outperformed expectations, with acquired and newly developed facilities driving NOI growth.

• Lifted low end of 2025 core FFO guidance from $16.35 to $16.45 per share.

Outlook and guidance

• 2025 Core FFO per share guidance raised to $16.45–$17.00, reflecting (1.3)% to 2.0% growth from 2024.

• Same Store revenue growth expected between (1.3)% and 0.8%, with net operating income growth between (2.6)% and 0.3%.

• Second-half deceleration expected, mainly due to fire-related pricing restrictions in Los Angeles, with a projected negative 6% same-store revenue growth in LA for H2 and a negative $0.23 per share impact.

• Non-same-store pool expected to generate $470 million NOI in 2025, with $110 million more through stabilization in 2026 and beyond.

• Development pipeline of $648 million to be delivered over the next two years; $370 million in deliveries expected this year, over $300 million next year.