PUBLIC STORAGE REPORTS FIRST QUARTER 2026 RESULTS (Form 8-K)

PUBLIC STORAGE REPORTS FIRST QUARTER 2026 RESULTS

Public Storage (the "Company") (NYSE: PSA) announced today its results for the quarter ended March 31, 2026 and its updated outlook for full-year 2026. Net income and core funds from operations ("Core FFO") per share for the quarter are presented below:

			Three Months Ended March 31,						Change
Metric (per share)			2026			2025			$			%
Net Income			$2.71			$2.04			$0.67			32.8%
Core FFO			$4.22			$4.12			$0.10			2.4%

Highlights for the quarter:

•Announced the pending acquisition of National Storage Affiliates Trust (NYSE: NSA) in an all-stock transaction valued at an enterprise value of approximately $10.5 billion.

•Achieved 2.4% Core FFO growth and 2.6% Total Self-Storage growth during the first quarter of 2026.

•Achieved a 77.1% Same Store net operating income margin, an expansion of 0.4% compared to the first quarter of 2025.

•Tom Boyle appointed as Chief Executive Officer and a trustee of the Board effective April 1, 2026.

•Shank Mitra appointed as Chairman of the Board effective April 1, 2026.

•Development and expansion expected to add 3.5 million net rentable square feet at an estimated cost of $618.4 million primarily over the next 18 to 24 months.

•Entered into a strategic data science partnership with Welltower to advance the application of AI in capital allocation.

•Subsequent to quarter end, the Company completed a public offering of $500 million aggregate principal amount of senior notes at a fixed rate of 5.00% maturing on December 15, 2035.

"Public Storage's first quarter results reflect differentiated strategies that continue to drive our performance," said Tom Boyle, Chief Executive Officer. "We are excited about the announcement of our acquisition of National Storage Affiliates and its ability to drive per share earnings growth. The pending acquisition will build upon our leading platform, which we expect to enhance customer experience, unlock operating upside, and jump start our Value Creation Engine."

2026 Guidance
Public Storage has reaffirmed its previously provided guidance for NOI Growth (Same Store and Non-Same Store) and Core FFO per share as included in the table below.

			2026 Guidance
			Low			High
			(Dollar amounts in thousands, except per share data)
Same Store:
Revenue growth			(2.2)%			-%
Expense growth			1.5%			2.8%
Net operating income growth			(3.9)%			(0.5)%
Non-Same Store:
Non-Same Store net operating income			$335,000			$355,000
Core FFO per share:			$16.35			$17.00

*Additional guidance assumptions can be found in the Company's accompanying quarterly financial supplement.

*As described in more detail in the Company's accompanying quarterly financial supplement, consistent with applicable SEC rules, we do not provide guidance for GAAP net income per share, the most comparable GAAP financial measure, or a reconciliation of estimated 2026 Core FFO per share to estimated GAAP net income per share because we are unable to reasonably predict certain items that are included in GAAP net income, including gains or losses on sales of real estate investments.

Operating Results
"Occupancy and move-in rates were ahead of expectations through the first quarter, but the true standout was our ability to utilize our integrated PS Next Operating Platform to mitigate inflationary pressures on our direct cost of operations. This focus on digital transformation has allowed us to maintain superior margins even as we navigate a shifting market" said Natalia Johnson, President, Chief Digital and Transformation Officer. "We are incredibly excited about the pending acquisition of National Storage Affiliates, as it provides a premier opportunity to demonstrate the scalability of our digital ecosystem as we onboard these assets and realize the benefits of our PS Next platform."

The operating results of our 2,755 Same Store Facilities (192.1 million net rentable square feet), which represent approximately 84% of the net rentable square feet in our U.S. consolidated portfolio, are as follows:

Same Store Summary			Three Months Ended March 31,
			2026						2025						Change (a)
			(Dollar amounts in thousands, except for per square foot data)
Revenues			$	1,000,833					$	1,001,021					-%
Direct Cost of Operations			(229,288		)				(232,939		)				(1.6)%
Direct Net Operating Income (b)			771,545						768,082						0.5%
Indirect Cost of Operations			(32,145)						(31,385)						2.4		%
Net Operating Income (b)			$	739,400					$	736,697					0.4%
Gross Margin (before indirect costs)			77.1%						76.7%						0.4%
Gross Margin (after indirect costs)			73.9%						73.6%						0.3%
Average Occupancy			91.5%						91.1%						0.4%
Realized annual rental income per (b):
Occupied square foot			$	22.00					$	22.06					(0.3)%
Available square foot			$	20.12					$	20.10					0.1%

(a)Represents the absolute nominal change with respect to gross margin and square foot occupancy, and the percentage change with respect to all other items.

(b)See Definitions for description of non-GAAP measures.

In addition to the Same Store Facilities, we have 421 primarily acquisition, development, and expansion facilities (37.7 million rentable square feet) in various stages of lease-up that represent the remaining 16% of the net rentable square feet in our portfolio. During the quarter, revenues and net operating income from this non-same store pool grew 24.8% and 27.5%, respectively, as compared to the same period in 2025.

Investment and Third-Party Management Activity

NSA Merger: On March 16, 2026, the Company announced that it had entered into a merger agreement to acquire National Storage Affiliates Trust ("NSA"), a Maryland real estate investment trust, listed on the New York Stock Exchange, in an all-stock transaction. NSA's portfolio includes more than 1,000 properties, 69 million rentable square feet, and 550,000 units across 37 states and Puerto Rico. The merger is expected to add $0.35 to $0.50 to Core FFO Per Share at stabilization. In connection with the transaction, Public Storage and limited partners in NSA's operating partnership will form a joint venture consisting of certain properties on NSA's operating platform. The NSA operating partnership unitholders are expected to own approximately 80% of the joint venture at inception, with Public Storage holding the remaining interest. Public Storage will exclusively manage the joint venture portfolio and will earn customary property management, asset management and tenant reinsurance income. The merger transaction, which is expected to close in the third quarter of 2026, is subject to the approval of NSA equity holders and satisfaction of other customary closing conditions.

Acquisitions: During the quarter, we acquired three self-storage facilities with 0.2 million net rentable square feet for $20.8 million. For the three months ended March 31, 2026 and including activity subsequent to quarter end, we acquired or were under contract to acquire 18 facilities with 1.4 million net rentable square feet for $186.3 million.

New Developments and Expansions: During the quarter, we completed new developments and various expansion projects, which contributed 0.3 million net rentable square feet at a cost of $45.4 million.

At March 31, 2026, we had various facilities in development (2.5 million net rentable square feet) estimated to cost $449.8 million and various expansion projects (1.0 million net rentable square feet) estimated to cost $168.6 million. In total, these development and expansion projects are expected to deliver 3.5 million net rentable square feet at an aggregate cost of approximately $618.4 million. The remaining $415.7 million of development costs for these projects are expected to be incurred primarily in the next 18 to 24 months.

Lending: At March 31, 2026, we have total notes receivable of $142.5 million at an average annual interest rate of 7.9%.

Third-Party Management: During the quarter, we added 20 facilities to our third-party property management program. At March 31, 2026, we managed or were under contract to manage 441 facilities (35.1 million net rentable square feet) through the program including 68 facilities currently under construction.

Capital Markets Activity and Balance Sheet
The Company's total indebtedness as of March 31, 2026 was $10.1 billion, with $650 million, or 6.4%, maturing in 2026. As of March 31, 2026, the Company had approximately $1.9 billion of liquidity through a combination of cash, undrawn capacity on its credit facility, and expected retained cash flow over the next twelve months. Subsequent to quarter end, we issued $500 million of senior notes, bearing interest at a fixed rate of 5.000% per year and maturing on December 15, 2035. We used a portion of these proceeds to repay the $325 million balance on our line of credit.

Selected balance sheet metrics as of March 31, 2026:

			Three Months Ended March 31, 2026
Metric			2026			2025			Change (a)
Weighted Average Interest Rate			3.3%			3.1%			0.2%
Weighted Average Years to Maturity (b)			6.4			7.1			(0.7)
Debt to EBITDA			2.9x			2.8x			0.1x
Net Debt and Preferred Equity to EBITDA (c)			4.1x			4.0x			0.1x
EBITDA to Fixed Charges (c)			6.7x			6.8x			(0.1)x
Credit Ratings (Moody's / S&P)			A2 / A			A2 / A			-

(a)Represents the absolute nominal change.

(b)The weighted average years to maturity does not include preferred stock.

(c)Computations of EBITDA and Fixed Charges can be found in the Company's accompanying quarterly financial supplement.

Supplemental Information