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 for the year and $785 million closed or under contract year to date.

• Industry leadership demonstrated by highest revenue per square foot and efficient operating platform, leveraging technology for customer and employee satisfaction.

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

• Ancillary businesses such as tenant insurance, third-party management, and lending are expanding.

• International growth potential highlighted by success with Shurgard in Europe and a potential partnership in Australia and New Zealand, including a revised offer to acquire Abacus Storage King for 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 (West Coast, D.C., Chicago) ranged from 2% to 4%, while overall same-store revenue increased 0.2% year-over-year.

• Non-same-store and ancillary NOI growth exceeded expectations, with non-same-store pool expected to generate $470 million NOI in 2025 and $110 million in 2026 and beyond.

• Cash and equivalents at June 30, 2025: $1.10 billion; total assets: $20.54 billion; total liabilities: $11.07 billion.

Outlook and guidance

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

• Same-store revenue growth guidance remains wide at -1.3% to 0.8%, with net operating income growth between (2.6)% and 0.3%.

• Guidance includes a negative $0.23 per share impact from temporary pricing limitations in Los Angeles County due to wildfires, with a rebound anticipated once restrictions expire.

• Property tax expense projected to grow ~5% in 2025.

• Retained operating cash flow expected to be ~$600 million for 2025.