Public Storage's Per-Share Profit Fell A Third, Yet Core FFO Edged Up As NSA Costs Hit
Merger costs and a tax release pushed the self-storage landlord's two profit measures in opposite directions in the third quarter.
Public Storage, the real estate investment trust that owns and runs self-storage facilities, posted net income of $1.69 per diluted share for the third quarter, down 35.5% from $2.62 a year earlier. Its adjusted Core FFO measure edged up 0.7%, to $4.34 from $4.31, as the company reported results Monday.
Why the two measures split
The gap comes from the National Storage Affiliates (NSA) deal, which closed July 22. The quarter carried a $114.6 million increase in transaction and integration expense, or $0.60 per share, plus a $122.3 million jump in depreciation. Core FFO adds the deal costs back.
It also subtracts a $22.8 million tax benefit. A $16.7 million release of a valuation allowance on deferred tax assets, tied to deferred tax liabilities booked in the NSA deal, turned a $2.8 million tax provision a year ago into a $15.0 million benefit. Shares of the stock are not part of this comparison; the filing's pro forma and nine-month figures are separate.
Growth bought, not grown
Same-store revenue rose 0.5% in the quarter and was roughly unchanged over nine months. The lift came from acquisitions: Acquired Facilities revenue climbed to $174.2 million from $70.8 million, and the NSA and PS Canada properties added $58.6 million of net operating income.
The company's own count of facilities it bought since the start of 2024 now stands at 881, costing $11.6 billion. The PS Canada purchase, from a seller group that includes board member Tamara Hughes Gustavson and her adult children, closed at $934 million, with up to 768,000 more OP Units possible as an earn-out. The NSA accounting is preliminary, with $451.5 million booked to goodwill.
Debt due in November
The company has $650.0 million of notes due November 9, 2026, and $1.2 billion due across April and September 2027. In its earnings release, it raised 2026 Core FFO guidance by $0.10 a share at the midpoint, and said commercial paper outstanding was $375 million as of October 26.
At Monday's market close the company was valued at $57.9 billion.
Management discusses the quarter on a call Tuesday at 11:00 a.m. CT.
Sources
- 10-Q Filing — Public Storage (PSA) — SEC EDGAR
- 10-Q Filing — Public Storage (PSA), Q2 FY2026 filed 2026-07-29 (comparison basis) — SEC EDGAR
- Earnings release (8-K Item 2.02, psa-102626xex99_1.htm) — Public Storage, filed 2026-10-26 — SEC EDGAR
- Public Storage: Q3 Earnings Snapshot | king5.com — Associated Press
- Public Storage Stock Before Q3 Earnings: Smart Buy or Risky Move? — Yahoo Finance
- Public Storage Q3 earnings grow amid reduced churn, guidance raised (PSA:NYSE) | Seeking Alpha — seekingalpha.com
- Public Storage (PSA) Stock Price, News, Quote & History - Yahoo Finance — Yahoo Finance
- Ellison v. Public Storage, Inc. et al — law360.com
