Public Storage PSA is slated to release third-quarter 2026 results on Oct. 26, after market close. The quarterly results are expected to reflect an increase in revenues but a dip in core funds from operations (FFO) per share.
In the last reported quarter, this self-storage real estate investment trust (REIT) reported a core FFO per share of $4.17, lagging the Zacks Consensus Estimate of $4.25. Results reflected a 2.2% decrease in same-store net operating income (NOI). Growth from non-same-store properties and ancillary operations offset weaker same-store revenues.
Over the last four quarters, Public Storage outpaced the Zacks Consensus Estimate on three occasions and missed once, the average surprise being 0.79%. The graph below depicts the surprise history of the company:
Public Storage Price and EPS Surprise
Public Storage price-eps-surprise | Public Storage Quote
Let's dive deep to get an understanding of the factors that may impact Public Storage’s third-quarter 2026 results.
Factors at Play and Projections for PSA’s Q3 Results
Public Storage’s third-quarter 2026 results are likely to benefit from its strong brand recognition, extensive self-storage portfolio and PS Next operating platform. Improving occupancy, lower customer churn and strengthening move-in rental rates are expected to have supported performance. These favorable trends continued into July, with occupancy increasing approximately 30 basis points year over year. Management expects third-quarter same-store revenue performance to improve.
The expiration of Los Angeles County's emergency-related rental restrictions on July 1 is also expected to have supported rental revenue growth.
However, elevated operating expenses and continued supply pressures in certain Sunbelt markets are likely to have weighed on performance. Management indicated that the third quarter would face the toughest year-over-year expense comparison of 2026, with higher incentive compensation costs adding to expense growth.
The Zacks Consensus Estimate for third-quarter revenues from self-storage facilities is pegged at $1.16 billion. This suggests an increase from the $1.14 billion witnessed in the year-ago period. The consensus mark for quarterly revenues from ancillary operations stands at $92.7 million, up from the $85.2 million registered in the comparable period last year.
The Zacks Consensus Estimate for quarterly revenues is pegged at $1.27 billion. This indicates a 3.4% year-over-year increase.
PSA’s activities during the quarter under review were not adequate to gain analysts’ confidence. The Zacks Consensus Estimate for the third-quarter core FFO per share has been revised downward to $4.27 over the past month.
Here Is What Our Quantitative Model Predicts for PSA:
Our proven model does not conclusively predict a surprise in terms of FFO per share for Public Storage this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an FFO beat, which is not the case here.
Public Storage currently carries a Zacks Rank of 3 and has an Earnings ESP of -0.23%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks That Warrant a Look
Here are two stocks from the broader REIT sector, SBA Communications SBAC and Host Hotels & Resorts HST, which you may want to consider, as our model shows that these have the right combination of elements to report an FFO beat this quarter.
SBA Communications is slated to report quarterly numbers on Nov. 2. SBAC has an Earnings ESP of +1.54% and carries a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Host Hotels & Resorts is slated to report quarterly numbers on Nov. 4. HST has an Earnings ESP of +2.80% and a Zacks Rank of 3 at present.
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Public Storage (PSA): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).