Public Storage: 2Q CFFO below JPM/Street FY guidance raised; "Normal course" deal flow picked up

Research evidence excerpt

Public Storage: 2Q CFFO below JPM/Street FY guidance raised; "Normal course" deal flow picked up

J P M O R G A N North America Equity Research

29 July 2026

Public Storage Neutral

PSA, PSA US

2Q CFFO below JPM/Street FY guidance Price (29 Jul 26):$329.44

raised; “Normal course” deal flow picked up

REITs

After Wednesday’s close, Public Storage reported 2Q operating results and Michael W. Mueller, CFA AC

updated its outlook. As discussed below, the 2Q CFFO print came in below JPM/ (1-212) 622-6689

Street, but management’s tone in the release related to improving fundamentals michael.w.mueller@jpmorgan.com

and platform potential, which caused it to increase its FY SS NOI and CFFO Anthony Paolone, CFA

outlooks. In terms of the core, SS revenues were fairly close to our forecast but (1-212) 622-6682

expenses ran a bit higher. A notable positive to flag was that move-in rate comps anthony.paolone@jpmorgan.com

improved significantly compared to 1Q’s results. On the transaction front, while Nahom Tesfazghi

we are sure that NSA and PSA Canada will take up a lot of airtime on tomorrow’s (1-212) 622 4884

nahom.tesfazghi@jpmchase.com

call, what we see as “normal course” transaction activity picked up considerably

Daniella De Armas Rosales

relative to 1Q. (1-212) 622-0050

daniella.dearmasrosales@jpmchase.com

2Q CFFO print below JPM/Street… PSA reported 2Q26 CFFO/share of $4.17, J.P. Morgan Securities LLC

which compares to JPM/Street at $4.26/$4.23. Relative to our forecast, NOI came

in ~$0.03 lower than we expected, interest expense was $0.02 higher, and higher

G&A (ex-normalizing items) plus smaller items accounted for the rest.

…But management raised the FY outlook. Turning to guidance, we came into

earnings expecting upward revisions from the self-storage sector as a whole, and