REITs: Adjusting NSA and PSA NFFO Estimates, Raising Price Targets

Research evidence excerpt

REITs: Adjusting NSA and PSA NFFO Estimates, Raising Price Targets

Truist Securities

Equity Research Report June 22, 2026

REAL ESTATE INVESTMENT

TRUSTS: Self Storage REITs REITs: Adjusting NSA and PSA NFFO

Estimates, Raising Price Targets

What’s Incremental to Our View: We are modeling NSA as a going concern, though Michael Lewis, CFA we expect the announced sale to PSA at 0.14 PSA share per NSA share to close in

212-319-5659

Michael.R.Lewis@truist.com 3Q26. Our PSA model is essentially our combined merger model. PSA’s 6/18 closing

stock price values NSA at $44.54ps and we are setting our NSA price target accordingly

at $45. Our 12-month price target for PSA is $338 (was $302), which would value NSA Alex Murphy at $47.32ps, or 6% higher than its $44.45ps closing price on 6/18. It implies a 10% 212-319-2173

Alex.Murphy@truist.com potential total return for PSA, including its 3.8% dividend yield.

11 Page Document We are maintaining our Buy rating on PSA and not changing our Hold on NSA, though

the two stocks are linked with what we think is minimal chance the deal does not

close ($202 million termination fee). PSA’s stock originally fell when the NSA acquisition

Reasons for this report was announced, but it is now up 23% year-to-date versus 8% for REITs overall. Even

after the recent rebound, we think the stock has upside, supported by bottoming

✓ Adjusting Estimates and Price Targets fundamentals and an excellent low-levered balance sheet.

Figure 1: Truist Securities FFO Estimate Updates

Source: Company Filings, Truist Securities Estimates, Factset

Adjusting NSA Normalized FFO Estimates: We are increasing our 2026

normalized FFO estimate by a penny per share to $2.22 per share from $2.21ps,

which is a penny per share above the $2.21ps consensus. We are lowering our