PSA US S&P 500Russell 1000 Earnings call · transcribed from the recording

Public Storage (PSA) · Q3 2026 results and valuation

Share price: $335.73 · 2026-11-11

Public Storage is a real estate investment trust that owns, develops, and operates self-storage facilities for personal and business use. The company provides storage space rentals, manages third-party facilities, and offers bridge lending to other self-storage owners across the United States and parts of Western Europe. Source: 10-K annual report (2026-02-12)

Results Q3 2026 vs Q2 2026 · previous quarter · published 26 Oct 2026 and 30 Jul 2026

Net income down 26.6% on the previous quarter. Management sounded upbeat, in its script and in answers to analysts.

1 · Numbers

−26.6%

Net income vs Q2 2026

Outlook given

Net income 366.9M vs 500.0M

Revenue +10.8%

Against the same quarter last year (Q3 2025) it is −28.2%, so it is not just seasonal.

2 · How management spoke

Upbeat

More upbeat than 70% of company calls

Answers to analysts: typical, in line with the script.

Similar to last call.

3 · What stood out

Public Storage acquired a $150 million portfolio in desirable coastal locations, marking the largest transaction of the quarter.

Valuation

Is Public Storage undervalued?

Reverse DCF on net income from the last full fiscal year (no meaningful free cash flow: a bank, insurer or a year of negative cash flow) (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.

At 4.9% growth a year (3-year revenue growth), the model's fair value is $90.19 a share — the stock trades 272% above it. Today's price assumes 18.3% growth a year.

Current price

$335.73

close of 2026-11-11

Market implies growth of i

+18.3% for 10 yrs

Fair value / share

$90.19

Buy below

$67.64

Price vs fair value

Overvalued >200%

Price vs buy-below price

Overvalued >200%

FCF growth / yr i Discount rate i Terminal growth i Margin of safety i

Official channels

The company's own website and social media accounts.

Read between the lines

Key theme

Available liquidity reached approximately $4.1 billion between cash and the line of credit, supplemented by approximately $600 million of expected annual free cash flow at quarter end.

Source quote
“At quarter end, available liquidity was approximately $4.1 billion between cash and our line of credit, supplemented by approximately $600 million of expected annual free cash flow.”
Figure

Same-store revenue accelerated from the second quarter to the third quarter by 110 basis points into positive territory while occupancy remained ahead of the prior year.

Source quote
“Occupancy remained ahead of the prior year and same-store revenue accelerated sequentially from the second quarter to the third quarter by 110 basis points into positive territory.”
Guidance

PSA raised guidance across all key metrics for the second time this year due to continued robust operating momentum.
Figure

Ellie has handled more than 300,000 customer interactions, and this capability continues to expand.

Source quote
“Ellie has now handled more than 300,000 customer interactions, and that capability continues to expand.”
Figure

The largest transaction in the quarter was an off-market $150 million portfolio acquisition in desirable coastal locations from a family exiting the business.

3 more

Figure

Average move-in rents improved 9% to their strongest level since 2q of 22 and move-in rates rose 28% from the fourth quarter of 2025.

Source quote
“Average move-in rents improved a positive 9%, our strongest level since 2q of 22 and move-in rates are up 28 percent from the fourth quarter of 2025 well ahead of historical trends and a clear indication that the business is moving beyond the last few years of stabilization.”
Guidance

Move-in rates are expected to stay positive but will not reach the same magnitude as the 9% seen in the third quarter.
Key theme

New customer pricing improved year over year for the second consecutive quarter, contributing to revenue growth.

Source quote
“New customer pricing improved year over year for the second consecutive quarter.”

Tone

How upbeat the language was, compared with other companiesi. Dot: Q3 2026. Ring: Q2 2026.

Prepared remarks Upbeat (was upbeat)

Answers to analysts Typical (was upbeat)

Script and answers carried a similar tone, so the script's message held up under questioning.

Sentences that drove the tone

“And we're doing all of this with a strong balance sheet, an aligned leadership team, and an own-it culture that is gaining momentum across the organization.”

“As the assets season on our PS Next platform, we see meaningful opportunities to improve the customer experience, increase utilization, address offline units, and deploy high return capital.”

“In summary, operating momentum improved, guidance increased, the value creation engine remained active, and the balance sheet was further strengthened.”

Full figures

USD · SEC EDGAR XBRL (10-Q, period end 2026-09-30)

Metric	Q3 2026period end 2026-09-30	Q2 2026period end 2026-06-30	Change	Q3 2025	YoY
Revenue	1.37B	1.23B	+10.8%	1.22B	+11.6%
Operating income	317.0M	466.7M	−32.1%	491.5M	−35.5%
Net income	366.9M	500.0M	−26.6%	511.1M	−28.2%
EPS	1.69	2.55	−33.7%	2.62	−35.5%
P/E today 35.5	29.7	30.4	−0.7	30.0	−0.3

Topics

Most discussed now

Public Storage is seeing better customer retention, stronger new customer pricing, and a more favorable supply backdrop as new construction…
Public Storage has been really pleasantly surprised by the move-in volume that it has seen coming into that portfolio.
The resolution was seamlessly real-time supported by Public Storage's data science engines.
New Although utilization across the industry remains strong, storage continues to provide an affordable space alternative to housing.
As you go into R &M, Public Storage actually have some new tests and initiatives taking place that it continues to...

Faded since Q2 2026

Fading Public Storage Canada is a strong strategic addition to the portfolio, and an attractive entry point into an underpenetrated...
Fading The PSNext operating platform continues to improve with improving leading indicators in the business and new capabilities that are...
Fading Before I dive in, several key highlights from the quarter include: number 1, continued momentum in operations including occupancy churn,...
Fading Public Storage is gonna take, a really a micro market focus strategy as it relates to the pricing opportunity from here.

Latest announcements

Official filings, newest first. Summaries are generated from each filing and its attachment; every figure is checked against the source.

2026-11-06 Material agreement; New financial obligation · SEC 8-K
2026-10-30 Material agreement · SEC 8-K
2026-10-26 Results of operations · SEC 8-K
For the quarter ended September 30, 2026, the company reported net income of $1.69 per share, down 35.5% from $2.62 in 2025, and Core FFO of $4.34 per share, up 0.7% from $4.31.
2026-09-16 Material agreement; New financial obligation · SEC 8-K
The company entered into a new indenture and supplemental indenture dated September 16, 2026, involving PS Canada Finance ULC and Public Storage.
2026-09-14 Regulation FD disclosure · SEC 8-K
Public Storage posted an investor presentation on its website on September 14, 2026, for use at an upcoming investor conference.
2026-09-10 Material agreement · SEC 8-K
Public Storage filed a Form 8-K on September 9, 2026, regarding a material agreement involving various series of cumulative preferred stock and guarantee notes.
2026-09-01 Regulation FD disclosure; Other events · SEC 8-K
Public Storage completed the acquisition of Public Storage Canada for approximately $1.2 billion, consisting of $900 million in units and $310 million in cash.
2026-08-10 Director or officer change · SEC 8-K
The company filed a Form 8-K on August 4, 2026, regarding a change in directors or officers.

Balance sheet & ownership

From SEC filings; short interest is FINRA data via Yahoo. Collected 2026-10-28.

Cash & runway

Cash & equivalents

$560.4M

2026-09-30

Implied runway

—

operating cash flow positive over the TTM window

Dilution

weighted-average basic shares, per quarter. Change: +5.0% YoY, +4.9% QoQ.

Quarter	Shares
Q1 2025	175.4M
Q2 2025	175.4M
Q3 2025	175.5M
Q1 2026	175.5M
Q2 2026	175.6M
Q3 2026	184.2M

Shares outstanding: 186.8M (2026-10-19)

Insider transactions

Form 4 open-market trades (codes S/P), trailing 12 months. Coverage: newest 50 of 58 filings; 50 filings parsed.

Sold by insiders

2.4K shares

$771.7K · 2 transactions

Bought by insiders

0 shares

0 transactions

Net direction

net selling

Catalyst calendar

management-stated targets — from the latest earnings call; plans, not promises.

by year-end

rebranding of approximately a third of the portfolio

Source quote
“Rebranding is underway, with approximately a third of the portfolio expected to be fully rebranded by year-end.”
next month

systems integration

Source quote
“Systems integration is expected next month, ahead of the original schedule.”
fourth quarter

shift of focus towards 2027

Source quote
“As we enter the fourth quarter, our focus is increasingly shifting towards 2027.”
2027

deployment of capital with more precision, faster timelines, and better data

Source quote
“We are preparing to deploy capital into 2027 with more precision, faster timelines, and better data.”
2027

favorable supply conditions

Source quote
“Our focus is on carrying this momentum into 2027, when supply conditions should become more favorable.”