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Facility DispatchREITs & consolidationUnited States, Canada

Public Storage same-store revenue rose 0.5% in the third quarter. Direct NOI was flat

Same-store revenue and net operating income each rose 0.5%. Direct NOI did not. Public Storage Canada closed September 1. Extra Space had not printed when this was filed, so this is one company’s quarter, not a three-REIT comparison.

By Christopher Ross, Editor and publisherOctober 27, 2026, 5:59 a.m.3 min read

Why this matters: our read

Same-store operations barely moved. The drop in net income per share sits next to a $114.6 million transaction-and-integration line that was zero a year earlier, and higher depreciation. Core FFO, which the company says excludes those costs, is the figure it raised guidance on. The Canada close is in the same release. Extra Space’s print was still ahead, so the pools are not compared here.

Key points

  • Public Storage’s same-store revenue for the quarter ended September 30, 2026 was $1,021,947 thousand, up 0.5% from $1,017,135 thousand.
  • Same-store net operating income was $768,833 thousand, up 0.5%. Direct NOI was $795,815 thousand against $795,450 thousand, which the company marked as unchanged.
  • Core FFO was $4.34 a share, from $4.31. Diluted net income was $1.69 a share, from $2.62.
  • Public Storage Canada closed September 1 for US$1.2 billion including assumed debt: 68 properties and 5.3 million square feet.

Public Storage reported third-quarter results on October 26 in a Form 8-K Exhibit 99.1. The same-store pool is 2,755 facilities totaling 192.1 million net rentable square feet, which the company said represented about 71% of the net rentable square feet in its U.S. consolidated portfolio. It counts facilities owned and operated at a stabilized level since January 1, 2024.

Same-store revenue rose to $1,021,947 thousand from $1,017,135 thousand, up 0.5%. Direct cost of operations rose 2.0%, with repairs and maintenance up 17.4% and marketing up 12.5%. Direct net operating income was $795,815 thousand against $795,450 thousand, which the table marks as unchanged. After indirect costs, same-store net operating income was $768,833 thousand, up 0.5% from $765,060 thousand. Weighted-average square-foot occupancy was 92.2%, from 91.9%. Occupancy at September 30 was 90.4%, from 90.3%. Realized annual rental income per occupied square foot was $22.29, from $22.24, up 0.2%.

Core FFO per share was $4.34, from $4.31. Diluted net income per common share was $1.69, from $2.62. On the income statement, transaction and integration expense was $114,642 thousand, against zero a year earlier. Depreciation and amortization was $412,614 thousand, from $290,364 thousand. The company defines Core FFO as FFO excluding, among other items, foreign-currency exchange gains and losses and transaction and integration costs related to the National Storage Affiliates and Public Storage Canada acquisitions. Those are the company’s adjustments, not a second set of operating results.

On September 1 the company completed the acquisition of Public Storage Canada for US$1.2 billion, including assumed debt, with an opportunity for the sellers to receive earn-out consideration of up to 768,000 PS OP Units contingent on NOI performance targets. The portfolio is 68 properties totaling 5.3 million square feet. During the quarter the company completed an inaugural Canadian public offering of C$400 million of senior notes at 4.54%, maturing September 16, 2033. National Storage Affiliates closed July 22 in an all-stock transaction. The company said it expects approximately $110 million to $130 million of run-rate synergies from NSA within three to four years. That range is the company’s figure.

Full-year same-store net operating income growth guidance moved from a range of negative 2.0% to negative 0.3%, to a range of negative 0.8% to positive 0.2%. Same-store revenue growth is now zero to 0.5%. Non-same-store net operating income guidance, the company says, excludes NSA and Public Storage Canada, so it is not a read on those stores. Extra Space Storage said it would release its quarter after the close on October 27. That print is not in this story. The second-quarter three-REIT comparison on this desk remains a second-quarter story.

Sources