Public Storage Q3 2026: Big Acquisitions Drive an 89% EPS Beat
As seen on the 24/7 Wall St. homepage on October 26, 2026.
The storage slump that spooked REIT investors is easing: management raised full-year Core FFO guidance to $16.90 to $17.10 per share. The National Storage Affiliates and PS Canada deals push the portfolio past 4,500 locations.
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Public Storage reported adjusted Core FFO per share of $4.34 for the third quarter of 2026, far exceeding expectations and marking the fourth consecutive quarter the company has beaten earnings expectations. Revenue also came in above estimates and grew from the same period a year ago.
The magnitude of the EPS beat is largely explained by two landmark deals that closed during the quarter: the acquisition of National Storage Affiliates, completed July 22, 2026, which added more than 1,100 stores in an all-stock transaction, and the purchase of PS Canada on September 1, 2026, which brought 68 properties in major Canadian markets into the fold. Together, the deals pushed the total portfolio past 4,500 locations.
The acquisitions came with real costs. Transaction and integration expenses totaled $114.6 million in the quarter, weighing on GAAP net income per diluted share even as the non-GAAP Core FFO figure expanded. Leverage and interest expense both rose to fund the expansion.
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On the underlying operating business, same-store occupancy averaged 92.2% in the quarter, a sign that the storage industry's demand environment is stabilizing after a stretch that had unsettled REIT investors. Same-store revenue grew in the quarter, an improvement from the flat trend recorded through the first half of the year.
Management raised full-year 2026 Core FFO guidance and lifted its same-store revenue growth outlook. The company expects to realize $110 million to $130 million in run-rate synergies from the NSA acquisition within three to four years, though the integration work is still in its early stages.
Mentioned: PSA