Core FFO per share rose 0.7% to $4.34 against a year earlier while operating income fell 35.5%, with deal costs and higher depreciation weighing on it 8-K. Management raised 2026 Core FFO guidance to $16.90 to $17.10 from $16.75 to $17.05 8-K.
Public Storage · Q3 2026 · Reported 26 Oct 2026 · US
Key figures
Million USD | Q3 2026 | Q3 2025 | Change |
|---|---|---|---|
Total revenues | 1,366.19 | 1,224.04 | +11.6 % |
Operating income | 316.96 | 491.52 | -35.5 % |
Net income | 378.35 | 514.77 | -26.5 % |
Diluted EPS | 1.69 USD/share | 2.62 USD/share | -35.5 % |
Core FFO per share | 4.34 USD/share | 4.31 USD/share | +0.7 % |
Operating margin | 23.2 % | 40.2 % | -17.0 pp |
Net margin | 27.7 % | 42.1 % | -14.4 pp |
Figures in USD, as reported. Margins are computed from the reported lines.
Deal costs and higher depreciation weighed on GAAP results
Operating income fell to $316.96 million from $491.52 million a year earlier, a 35.5% decline, as operating margin fell to 23.2% from 40.2% 8-K. A $114.6 million transaction and integration expense explains much of it 8-K. Excluding that item, operating income would have fallen 12.2% and the margin would be 31.6% against 40.2% a year earlier, a calculation that removes the item and is not a company figure 8-K. Depreciation and amortization also rose to $412.6 million from $290.4 million 8-K.
Diluted EPS fell 35.5% to $1.69 while net income fell 26.5%, because the diluted share count rose about 14% 8-K. Net income was helped by a $27.0 million gain on real estate sales and a $15.0 million tax benefit 8-K. Nareit FFO per share fell 12.0% to $3.81, but company-defined Core FFO per share, which excludes transaction costs, rose 0.7% to $4.34 8-K.
Same-store growth is positive but thin, and costs are rising
Same-store revenue and NOI each rose 0.5%, with average occupancy at 92.2% against 91.9% a year earlier 8-K. Direct costs rose 2.0%, led by repairs and maintenance (up 17.4%) and marketing (up 12.5%), so direct gross margin slipped to 77.9% from 78.2% 8-K. Management cites lower churn, higher occupancy and strong move-in rates 8-K. Annual contract rent per occupied square foot at September 30 was 1.2% higher than a year earlier 8-K. Nine-month same-store NOI is still down 0.5% 8-K.
Acquisitions add scale, and leverage rose with them
Total revenue rose 11.6% to $1.37 billion, and acquired-facility revenue climbed to $174.2 million from $70.8 million, while same-store revenue grew only 0.5% 8-K. Management expects $110 million to $130 million of run-rate synergies from NSA within three to four years 8-K.
Net debt to EBITDA was 3.4x against 3.0x a year earlier, and EBITDA to fixed charges was 6.3x against 6.8x 8-K. The weighted average interest rate rose to 3.6% from 3.0% 8-K. Total indebtedness was $12.2 billion, with $650 million maturing in the fourth quarter 8-K.
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The release does not give operating cash flow.
Sources
Produced by Clarifo Research with the Clarifo financial research engine from the company's public filings. AI was used in parts of the analysis and drafting. Figures are checked automatically against the filings they come from. This is not investment advice.