- Price
- $298.31
- Fair value
- $338.00
- Discount
- 11.7%
- Uncertainty
- Medium
- LSEG rating
- 2.64
- Moat
- None
- Next earnings
- 2026-10-26
- Next earnings is estimate
- No
- Company name
- Public Storage
- Sector
- Self-storage REIT
- About
- Public Storage is a real estate investment trust (REIT) based in Frisco, Texas, and the largest owner and operator of self-storage facilities in the United States. Customers rent storage units, usually by the month. After it bought National Storage Affiliates (NSA) in July 2026, it operates more than 4,500 locations with more than 327 million square feet under the Public Storage brand. On September 1, 2026, it also bought PS Canada, which owns 68 facilities in Canada. Public Storage also earns money from tenant insurance and storage products.
- Thesis
- The market prices Public Storage for weak rent growth in self-storage. In Q2 2026, same store revenue fell 0.6% and same store net operating income fell 2.2%, because realized rent per occupied square foot fell 0.8% while costs rose. Its 2026 guidance for same store revenue is a range from a 0.7% decline to a 0.3% gain. Public Storage also grows by purchase: it bought NSA in an all-stock deal and PS Canada for about $1.2 billion, which add debt, new shares and integration work. For the gap to close, same store revenue must return to growth in 2027. Public Storage must reach its raised 2026 Core FFO guidance of $16.75 to $17.05 per share, and its operating platform must raise the margins of the NSA properties, as management expects. Public Storage reports Q3 2026 results on October 26, 2026, which is the next test. If these checks pass, the gap can close over the next four to six quarters. The main reason it may not close is a longer period of flat or falling rents.
- Risks
- Same store rents fell in 2026. If rents stay weak in 2027, same store revenue and net operating income keep falling while costs rise.
The NSA and PS Canada purchases add many properties, a joint venture and a new country. Integration problems or weaker results can make the deals add less to Core FFO than planned.
Interest expense rose 18% in Q2 2026, and Public Storage added more debt after the quarter. Higher interest rates make new debt more costly.
- Balance sheet
- Cash: $260M
Debt: $10.2B
Net debt: $9.9B
Interest cover: 6.7×
Public Storage funds itself mostly with unsecured notes, preferred shares and common equity. At June 30, 2026, notes payable were $10.18 billion and cash was $260 million. After June 30, it added debt for its purchases: $900 million of senior notes at an effective rate of 4.855%, a fully drawn $500 million term loan from August 31, 2026, and C$400 million of 4.540% notes due 2033 from September 16, 2026. It also issued Series T and Series U preferred shares in exchange for the NSA preferred shares. In Q2 2026, it signed a new $3.0 billion unsecured revolving credit facility and set up a $1.0 billion commercial paper program, and it signed forward sale agreements for new shares under its at-the-market program. Interest cover is operating income before interest expense divided by interest expense for the first half of 2026.
As of 2026-06-30.
- Checkpoints
- Oct 26, 2026: Q3 2026 earnings: same store revenue. Pending. Watch: Same store revenue near flat or better and Core FFO on track for the $16.75 to $17.05 guidance pass; a guidance cut fails.
Feb 2027 (estimate): Q4 2026 results and the 2027 outlook. Pending. Watch: A 2027 outlook with same store revenue growth and a gain in Core FFO from NSA passes; an outlook for another year of falling same store revenue fails.
- Recent events
- 2026-10-05: Public Storage said that it will report Q3 2026 results after the market closes on October 26, 2026, with a conference call on October 27.
2026-09-16: PS Canada Finance, a subsidiary, issued C$400 million of 4.540% senior notes due 2033, guaranteed by Public Storage. The money replaces cash used for the PS Canada purchase.
2026-09-01: Public Storage completed its purchase of PS Canada, which owns 68 self-storage facilities with about 5.3 million net rentable square feet in Canada. The price was about $1.2 billion: about $900 million in operating partnership units and about $310 million in cash. The sellers can receive up to 768,000 more units if the business reaches profit targets. Public Storage fully drew its $500 million term loan on August 31, 2026.
2026-07-29: Public Storage reported Q2 2026 results. Core FFO was $4.17 per share, down from $4.28. Same store revenue fell 0.6%, same store net operating income fell 2.2% and average occupancy was 92.5%. It raised its 2026 Core FFO guidance to $16.75 to $17.05 per share. It also signed a new $3.0 billion revolving credit facility and a $500 million term loan and set up a $1.0 billion commercial paper program.
2026-07-22: Public Storage completed its all-stock purchase of NSA. NSA shareholders received 0.14 Public Storage shares for each NSA share. A new joint venture holds 313 properties worth about $3.3 billion, with former NSA operating partnership unitholders owning about 80% and Public Storage 20%. After the quarter, Public Storage also sold $900 million of senior notes at an effective rate of 4.855%.