Public Storage Reports Mixed Q4 Results, Guides for Lower 2026 Core FFO
Public Storage (NYSE:PSA) reported financial results for the fourth quarter and full year 2025, delivering core funds from operations (Core FFO) that modestly exceeded analyst expectations while providing a 2026 outlook that fell short of current estimates. The market reaction in after-hours trading was negative, with shares declining approximately 1.8%.
Earnings and Revenue Versus Estimates
The self-storage REIT’s fourth-quarter performance presented a nuanced picture. Core FFO, a key profitability metric for REITs, came in at $4.26 per share. This result surpassed the analyst consensus estimate of $2.53 per share by a significant margin.
On the revenue front, the company reported total revenue of $1.216 billion for the quarter, essentially matching the analyst estimate of $1.216 billion.
The full-year 2025 Core FFO was $16.97 per share, a 1.8% increase over the prior year, while GAAP net income per share declined by 15.3% to $9.01.
2026 Outlook and Market Reaction
The primary driver of the negative after-market price action appears to be the company’s guidance for the coming year. Public Storage issued its initial 2026 Core FFO per share guidance in a range of $16.35 to $17.00. This outlook falls below the current analyst consensus estimate of $17.36 for the full year 2026.
The company’s same-store net operating income (NOI) guidance also points to potential pressure, with a projected range of -3.9% to -0.5% growth. This is attributed to an expected same-store revenue range of -2.2% to 0.0%, coupled with expense growth of 1.5% to 2.8%.
Key Operational Highlights from Q4 2025
Beyond the headline financials, the earnings release highlighted several operational and strategic developments:
- Portfolio Growth: The company remained active in expanding its footprint, acquiring 87 facilities (6.1 million square feet) for $945.6 million in 2025 and completing development projects adding 2.1 million square feet.
- Stabilizing Fundamentals: Management noted signs of industry stabilization. Fourth-quarter occupancy at year-end was 0.5% higher than the prior year, marking the first year-over-year increase in over four years. The percentage of markets achieving positive same-store revenue growth improved from 49% in Q4 2024 to 56% in Q4 2025.
- Strong Balance Sheet: Public Storage maintains a robust financial position with a weighted average debt interest rate of 3.2% and an average term of 6.3 years. The company reported $2.4 billion in total liquidity.
- Leadership Transition (PS4.0): Subsequent to the quarter’s end, the company announced a generational leadership transition dubbed “PS4.0.” CEO Joe Russell will retire effective March 31, 2026, succeeded by current CFO Tom Boyle. A new CFO, Joe Fisher, has been appointed.
Conclusion
Public Storage’s fourth-quarter results demonstrated resilience in its core profitability metric, comfortably beating estimates. However, the market’s focus quickly shifted to the future, with the provided 2026 Core FFO guidance coming in softer than analysts had anticipated. This outlook reflects the company’s expectation of continued, though stabilizing, pressure on same-store revenue and rising operational expenses. The announced leadership transition adds another layer of change as the company navigates this evolving operating environment.
For a detailed look at historical earnings and future analyst estimates for Public Storage, you can review the data here.
Disclaimer: This article is for informational purposes only and does not constitute financial advice, investment recommendation, or an offer to buy or sell any security. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
