Adjustments for Non-Cash Items [USD, Thousands]

Stock-Based Compensation [USD, Thousands]

Changes in Working Capital [USD, Thousands]

Capital Expenditures (CapEx) [USD, Thousands]

Proceeds from / Repayments of Debt [USD, Thousands]

Share Repurchases [USD, Thousands]

Dividend Payments [USD, Thousands]

Net Change in Cash [USD, Thousands]

f8714f93d57a6bc656216844aa765b3856e36d776fca4412e8d18ae9315db573

Public Storage, a Maryland real estate investment trust (REIT), specializes in owning and operating self-storage facilities that offer storage spaces for lease on a month-to-month basis for both personal and business use **[0001393311-24-000109_psa-20240331.htm:6]** **[0001393311-24-000167_psa-20240630.htm:7]** **[0001393311-24-000193_psa-20240930.htm:7]**. The company also engages in ancillary activities such as tenant reinsurance, merchandise sales, and third-party management, alongside the acquisition and development of additional self-storage space **[0001393311-24-000109_psa-20240331.htm:6]** **[0001393311-24-000167_psa-20240630.htm:7]** **[0001393311-24-000193_psa-20240930.htm:7]**. Public Storage's self-storage operations are the primary source of its net income, with significant earnings growth driven by its Same Store Facilities, Acquired Facilities, and Newly Developed and Expanded Facilities **[0001393311-24-000043_psa-20231231.htm:42]**.

1. **Self-Storage Operations** - Provides storage spaces for lease on a month-to-month basis, catering to personal and business needs, and is the main source of the company's net income.
   - **Same Store Facilities** - Contributes to earnings growth through consistent performance and management of existing storage facilities.
   - **Acquired Facilities** - Enhances revenue by integrating newly acquired storage properties into the company's portfolio.
   - **Newly Developed and Expanded Facilities** - Drives growth by developing new storage spaces and expanding existing ones.
2. **Tenant Reinsurance** - Offers insurance products to tenants, providing additional protection for stored items and contributing to the company's ancillary revenue.
3. **Third-Party Management Services** - Manages self-storage facilities owned by other parties, expanding the company's operational reach and service offerings.
4. **Merchandise Sales** - Sells packing and moving supplies, complementing the storage services and enhancing customer convenience.

686cc69d5554d08292a2f5166712f23c93df6c953aea2d93c72e99191f6c12c4

| Metric [Unit: $ Thousand] | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 |
|---------------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| Self-Storage Operations   | **1,032,184**  **[0001393311-23-000025_psa-20230331.htm:15]**  | **1,056,120**  **[0001393311-23-000080_psa-20230630.htm:17]**  | **1,078,721**  **[0001393311-23-000096_psa-20230930.htm:19]**  | N/A     | **1,086,045**  **[0001393311-24-000109_psa-20240331.htm:18]**  | **1,099,736**  **[0001393311-24-000167_psa-20240630.htm:20]**  | **1,110,115**  **[0001393311-24-000193_psa-20240930.htm:20]**  | N/A     |
| Ancillary Operations      | **62,048**  **[0001393311-23-000025_psa-20230331.htm:40]**    | **63,650**  **[0001393311-23-000080_psa-20230630.htm:17]**    | **65,099**  **[0001393311-23-000096_psa-20230930.htm:19]**    | N/A     | **71,175**  **[0001393311-24-000109_psa-20240331.htm:18]**    | **73,475**  **[0001393311-24-000167_psa-20240630.htm:20]**    | **77,643**  **[0001393311-24-000193_psa-20240930.htm:20]**    | N/A     |

c8f97c1ca801e3a420a10a13a572f202b69fdd731404005f4189618944c9d544

Total Revenue [USD, Thousands]

Cost of Goods Sold (COGS) [USD, Thousands]

SG&A [USD, Thousands]

R&D [USD, Thousands]

D&A [USD, Thousands]

Interest Expense [USD, Thousands]

Operating Income (EBIT) [USD, Thousands]

Net Income [USD, Thousands]

EPS - Basic [USD]

EPS - Diluted [USD]

052d63282d3c0c5ff144e6a36ba17ed6bedb6608ed19e2a673f53237ee8730ff

Number of Facilities

Square Feet (millions)

Realized Rent per Occupied Square Foot ($)

Average Occupancy (%)

Realized Rent per Available Square Foot ($)

Square Foot Occupancy (%)

Annual Contract Rent per Occupied Square Foot ($)

f72e906eaf9f5d216220896eb521592aae650020747ff85e858cd3300c8a6698

| Metric | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|--------|---------|---------|---------|---------|---------|---------|---------|---------|
| Number of Facilities | 2,869 **[0001393311-23-000012_psa-20221231.htm:35]** | 2,877 **[0001393311-23-000025_psa-20230331.htm:23]** | 2,888 **[0001393311-23-000080_psa-20230630.htm:28]** | 3,028 **[0001393311-23-000096_psa-20230930.htm:29]** | 3,044 **[0001393311-24-000041_psa-22024xex99_1.htm:6]** | N/A | 3,049 **[0001393311-24-000167_psa-20240630.htm:30]****[0001393311-24-000166_psa-73024xex99_1.htm:6]** | 3,053 **[0001393311-24-000193_psa-20240930.htm:30]** |
| Square Feet (millions) | 204.2 **[0001393311-23-000012_psa-20221231.htm:35]** | 204.9 **[0001393311-23-000025_psa-20230331.htm:6]** | 206.0 **[0001393311-23-000080_psa-20230630.htm:7]** | 218.071 **[0001393311-24-000043_psa-20231231.htm:37]** | 218.071 **[0001393311-24-000043_psa-20231231.htm:37]** | 218.071 **[0001393311-24-000043_psa-20231231.htm:37]** | 218.0 **[0001193125-24-185158_d826091dex991.htm:0]** | 219.5 **[0001393311-24-000193_psa-20240930.htm:50]** |
| Realized Rent per Occupied Square Foot ($) | 22.74 **[0001393311-23-000011_psa-22123xex99_1.htm:4]** | 22.65 **[0001393311-23-000025_psa-20230331.htm:26]** | 22.99 **[0001393311-23-000080_psa-20230630.htm:31]****[0001393311-23-000080_psa-20230630.htm:37]** | 23.20 **[0001393311-23-000096_psa-20230930.htm:32]****[0001393311-23-000096_psa-20230930.htm:38]** | N/A | 22.53 **[0001393311-24-000109_psa-20240331.htm:30]** | 22.54 **[0001393311-24-000167_psa-20240630.htm:33]** | 22.71 **[0001393311-24-000193_psa-20240930.htm:33]** |
| Average Occupancy (%) | 94.9 **[0001193125-23-076669_d347280ddef14a.htm:41]** | 93.2 **[0001393311-23-000025_psa-20230331.htm:28]****[0001393311-23-000025_psa-20230331.htm:26]** | 93.7 **[PSA_3306787_15]****[0001393311-23-000080_psa-20230630.htm:39]** | 93.4 **[0001393311-23-000096_psa-20230930.htm:34]** | 93.3 **[0001393311-24-000043_psa-20231231.htm:56]** | 92.1 **[0001393311-24-000109_psa-20240331.htm:35]** | 92.6 **[0001393311-24-000167_psa-20240630.htm:40]****[0001393311-24-000167_psa-20240630.htm:38]** | 92.7 **[0001393311-24-000193_psa-20240930.htm:35]** |
| Realized Rent per Available Square Foot ($) | 21.25 **[0001393311-23-000011_psa-22123xex99_1.htm:4]** | 21.10 **[0001393311-23-000025_psa-20230331.htm:26]** | 21.54 **[0001393311-23-000080_psa-20230630.htm:31]** | 21.65 **[0001393311-23-000096_psa-20230930.htm:32]****[0001393311-23-000095_psa-103023xex99_1.htm:4]** | 21.23 **[0001393311-24-000041_psa-22024xex99_1.htm:4]** | 20.76 **[0001393311-24-000109_psa-20240331.htm:30]** | 20.96 **[0001393311-24-000167_psa-20240630.htm:33]** | 21.06 **[0001393311-24-000193_psa-20240930.htm:33]****[0001393311-24-000192_psa-103024xex99_1.htm:4]** |
| Square Foot Occupancy (%) | 92.4 **[0001393311-23-000004_psa-20230103.htm:3]** | 92.8 **[0001393311-23-000025_psa-20230331.htm:26]** | 93.5 **[0001393311-23-000080_psa-20230630.htm:31]****[0001393311-23-000079_psa-8223xex99_1.htm:4]** | 93.4 **[0001393311-23-000095_psa-103023xex99_1.htm:4]****[0001393311-23-000096_psa-20230930.htm:32]** | 91.6 **[0001393311-24-000043_psa-20231231.htm:50]** | 92.1 **[0001393311-24-000109_psa-20240331.htm:30]****[0001393311-24-000108_psa-43024xex99_1.htm:4]** | 93.0 **[0001393311-24-000166_psa-73024xex99_1.htm:4]****[0001393311-24-000167_psa-20240630.htm:33]** | 91.4 **[0001393311-24-000192_psa-103024xex99_1.htm:4]** |
| Annual Contract Rent per Occupied Square Foot ($) | 23.02 **[0001393311-23-000004_psa-20230103.htm:3]** | 22.94 **[0001393311-23-000025_psa-20230331.htm:26]** | 23.34 **[0001393311-23-000080_psa-20230630.htm:31]** | 23.44 **[0001393311-23-000096_psa-20230930.htm:32]** | 23.04 **[0001393311-24-000022_psa-20240109.htm:3]** | 22.59 **[0001393311-24-000109_psa-20240331.htm:30]** | 22.72 **[0001393311-24-000167_psa-20240630.htm:33]** | 23.04 **[0001393311-24-000193_psa-20240930.htm:33]** |

02eddf29c60ddb79aae3487d498fda7887a1a5d3858294b6307763530ccc9b5c

Cash and Cash Equivalents [USD, Thousands]

Property, Plant, and Equipment [USD, Thousands]

Goodwill [USD, Thousands]

Intangible Assets [USD, Thousands]

Accrued Expenses [USD, Thousands]

Long-term Debt [USD, Thousands]

Shareholders' Equity [USD, Thousands]

Retained Earnings [USD, Thousands]

Common Stock [USD, Thousands]

Additional Paid-in Capital [USD, Thousands]

1066eb82336ea22e38ebfe3f0c3efcb41b2d090b15e85e692bd6db42b445ac08

9b4033e57652a75a3cbe6e89f6cc4796e0e8e8713f2c6ea3b61c21365c56f6dd

1. Given that promotional discounts reached up to **60% of customers receiving promotions** in the third quarter, compared to **40% to 60% earlier in the year**, what is driving this increase, and how do you anticipate it will impact your revenue growth in upcoming quarters?  **[PSA_3405183_14]** 

2. With a **record $430 million in development deliveries** in 2024 but expecting a decrease in 2025, can you explain the challenges you're facing in maintaining a consistent pace of development, and how you plan to address potential project delays affecting future growth?  **[PSA_3405183_25]** ,  **[PSA_3405183_29]** 

3. Considering the low transaction volumes over the past two years and your target for **stabilized acquisition yields in the 6% range**, are you willing to adjust your acquisition criteria if market conditions don't meet your expectations, and how would that impact your growth strategy?  **[PSA_3405183_18]** ,  **[PSA_3405183_12]** 

4. As you reduce on-site staff to optimize operations, how do you balance labor cost savings with the risk of negatively affecting customer service, and what measures are you taking to ensure customer satisfaction isn't compromised?  **[PSA_3405183_26]** 

5. With **move-in rents down 9% year-over-year in the third quarter** and **down 5% in October**, yet showing signs of stabilization, can you elaborate on the drivers behind this trend and how sustainable you believe it is, especially considering factors like housing turnover and customer length of stay?  **[PSA_3405183_7]** ,  **[PSA_3405183_1]** 

8161579b96fe1af6f911ed6618fdd50180beb40fc229fb3021f0de8fd9676654

Self-Storage Operations

- Same Store Facilities

- Acquired Facilities

- Newly Developed and Expanded Facilities

- Other Non-Same Store Facilities

Ancillary Operations

- Tenant Reinsurance Premiums

- Merchandise Sales

- Third Party Property Management

- Commercial

Total Revenue

1ab3727b12856faa0c490ac693d65416728549fba7229dd54c4aceed4abc45a9

### Q3 2024 Earnings Call
- **Issued Period**: Q3 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Core FFO Guidance**: $16.50 to $16.85 per share  **[PSA_3405183_2]** .
  2. **Same-Store Revenue Outlook**: Expectation for nominal same-store revenue growth to begin improving  **[PSA_3405183_2]** .
  3. **Incremental NOI from Non-Same-Store Pool**: Increased to $120 million in total through stabilization  **[PSA_3405183_2]** .

### Q2 2024 Earnings Call
- **Issued Period**: Q2 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Core FFO per Share**: $16.50 to $16.85 per share, reflecting an approximate 1% reduction compared to the midpoint of prior guidance  **[PSA_3395575_2]** .
  2. **Same-Store Revenue Growth**: Move-in rents down 12% for the full year, occupancy down 80 basis points, consistent contribution from existing customer rent increases  **[PSA_3395575_2]** .
  3. **Non-Same-Store NOI Growth**: 32% growth expected, with an additional $110 million of incremental NOI in 2025 and beyond  **[PSA_3395575_2]** .
  4. **Capital Allocation**: $450 million in new development activity  **[PSA_3395575_2]** .
  5. **Property Taxes**: Approximately 5% for the year  **[PSA_3395575_10]** .

### Q1 2024 Earnings Call
- **Issued Period**: Q1 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Core FFO Guidance**: $16.90 midpoint  **[PSA_3382028_2]** .
  2. **Acquisitions**: $500 million, expected to be more back-ended in the year  **[PSA_3382028_22]** .
  3. **Development Deliveries**: $450 million, expected to be a record year  **[PSA_3382028_2]** .
  4. **Operating Expenses**: Property tax growth of approximately 5%, moderation in marketing expenses  **[PSA_3382028_14]** .
  5. **Capital and Liquidity**: Leverage of 3.9x net debt and preferred to EBITDA  **[PSA_3382028_2]** .
  6. **Occupancy and Move-in Rents**: Occupancy down 80 basis points, move-in rents to cross 0 threshold later in the summer  **[PSA_3382028_11]** .
  7. **Non-Same-Store Pool Growth**: NOI growth approaching nearly 50% during the first quarter  **[PSA_3382028_1]** .

### Q4 2023 Earnings Call
- **Issued Period**: Q4 2023
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Core FFO Guidance**: $16.90 midpoint  **[PSA_3374507_2]** .
  2. **Same-Store Revenue**: Growth range from down 1% to up 1%  **[PSA_3374507_5]** .
  3. **Same-Store Expense Growth**: Expected to be 2.75%  **[PSA_3374507_2]** .
  4. **Same-Store NOI Growth**: Decline of 90 basis points expected  **[PSA_3374507_2]** .
  5. **Occupancy**: Down 80 basis points  **[PSA_3374507_2]** .
  6. **Nonsame-Store NOI Contribution**: Growth from $370 million in 2023 to $505 million at the midpoint in 2024  **[PSA_3374507_2]** .
  7. **Acquisitions and Development**: $500 million in acquisitions and $450 million in development  **[PSA_3374507_2]** .
  8. **Seasonality**: Peak-to-trough change in occupancy of over 200 basis points  **[PSA_3374507_16]** .

22e2fb84411cdb30c8d32f6bb3b1261663c9ed81f19ca85abd03b39135269569

**Annual guidance for FY 2024:**
- **Core FFO per share**: $16.50 to $16.85  **[PSA_3405183_2]**  (no change from $16.50 to $16.85  **[PSA_3395575_2]** )  
- **Same-store revenue**: Expectation for nominal same-store revenue growth to begin improving  **[PSA_3405183_2]**  (raised from prior outlook emphasizing move-in rents down 12%  **[PSA_3395575_2]** )  
- **Incremental NOI from non-same-store pool**: $120 million in total through stabilization  **[PSA_3405183_2]**  (raised from $110 million  **[PSA_3395575_2]** )  

b25fbb342da15ee20a9f58c01b027e4e86c81a0fcb794de528b51e1f23660614

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

| Program Details          | Program 1       |
|--------------------------|-----------------|
| Approval Date            | May 2008  **[0001393311-24-000193_psa-20240930.htm:65]**     |
| End Date/Duration        | No expiration  **[0001393311-24-000193_psa-20240930.htm:65]**  |
| Total additional amount  | 35,000,000 shares  **[0001393311-24-000193_psa-20240930.htm:65]**  |
| Remaining authorization amount | 10,551,219 shares  **[0001393311-24-000193_psa-20240930.htm:65]**  |
| Details                  | Future repurchases depend on available capital, investment alternatives, and trading price  **[0001393311-24-000193_psa-20240930.htm:65]** **[0001393311-24-000193_psa-20240930.htm:60]**  |

18312edcbf97ae56f172595bd6da8d58923385d3ee05305581023a0e515acf5e

| Name                  | Position                                      | Start Date          | Short Bio                                                                                                                                                                                                 |
|-----------------------|-----------------------------------------------|---------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Joseph D. Russell, Jr.| Chief Executive Officer and President         | January 1, 2019     | Joseph D. Russell, Jr. has served as the CEO of Public Storage since January 1, 2019, and as President since July 2016. He was previously the President and CEO of PS Business Parks, Inc.  **[0001393311-24-000043_psa-20231231.htm:84]** **[0001393311-23-000012_psa-20221231.htm:82]** .                                             |
| H. Thomas Boyle       | Chief Financial Officer and Chief Investment Officer | January 1, 2019 (CFO), January 1, 2023 (CIO) | H. Thomas Boyle has been the CFO of Public Storage since January 1, 2019, and the CIO since January 1, 2023. He joined the company in November 2016 as Vice President and CFO, Operations  **[0001393311-24-000043_psa-20231231.htm:84]** **[0000950170-24-035899_psa-20240322.htm:33]** **[0001193125-23-076669_d347280ddef14a.htm:40]** . |
| Natalia N. Johnson    | Chief Administrative Officer                  | August 4, 2020      | Natalia N. Johnson has been the Chief Administrative Officer since August 4, 2020. She was previously the Senior Vice President, Chief Human Resources Officer from April 2018  **[0001393311-24-000043_psa-20231231.htm:84]** **[0000950170-24-035899_psa-20240322.htm:33]** .                                                      |
| Nathaniel A. Vitan    | Chief Legal Officer and Corporate Secretary   | April 20, 2019      | Nathaniel A. Vitan has served as Senior Vice President, Chief Legal Officer, and Corporate Secretary since April 20, 2019. He was previously Vice President and Chief Counsel for Litigation and Operations  **[0001393311-24-000043_psa-20231231.htm:84]** **[0000950170-24-035899_psa-20240322.htm:33]** .                           |
| Christopher Sambar    | Chief Operating Officer, Principal Operating Officer | October 30, 2024   | Christopher Sambar was appointed as the COO and principal operating officer on October 30, 2024. He joined Public Storage on October 14, 2024, after serving as President of AT&T Network  **[0001193125-24-248690_d873750d8k.htm:2]** .                                               |

2baaaffef13a303dba4a63073b213d19398db771af9e8d374007ed9c015cf945

b833b482e739c62393cf728e2bcc3a3172caffd9ea555dd9f6d11a47a793a2f0

| Name              | Start Date | End Date | Reason for Change |
|-------------------|------------|----------|-------------------|
| Ernst & Young LLP | 1980  **[0001393311-24-000043_psa-20231231.htm:98]**  | Present  | Current auditor   |

8eb3aa88c0d6e4c159f9cd2f77f5c6e97a3f16094a39a0c13d3f57762e75d0f6

- Total Revenue (Q3 2024): $1,187.8 million (+3.8% YoY)  **[0001393311-24-000193_psa-20240930.htm:3]** **[0001393311-24-000193_psa-20240930.htm:49]** **[0001393311-23-000096_psa-20230930.htm:4]**   
- Net Income (Q3 2024): $433.1 million (**-30% YoY**)  **[0001393311-24-000193_psa-20240930.htm:3]** **[0001393311-24-000193_psa-20240930.htm:20]** **[0001393311-23-000096_psa-20230930.htm:4]** **[0001393311-23-000096_psa-20230930.htm:19]**   
- EPS (Diluted, Q3 2024): $2.17 (**-32% YoY**)  **[0001393311-24-000193_psa-20240930.htm:3]** **[0001393311-24-000193_psa-20240930.htm:20]** **[0001393311-23-000096_psa-20230930.htm:4]** **[0001393311-23-000096_psa-20230930.htm:19]**   
- Self-Storage Operations (Q3 2024): $1,110.1 million (+2.9% YoY)  **[0001393311-24-000193_psa-20240930.htm:3]** **[0001393311-24-000193_psa-20240930.htm:49]** **[0001393311-23-000096_psa-20230930.htm:4]**   
- Ancillary Operations (Q3 2024): $77.6 million (+19% YoY)  **[0001393311-24-000193_psa-20240930.htm:3]** **[0001393311-24-000193_psa-20240930.htm:49]** **[0001393311-23-000096_psa-20230930.htm:4]**   
   - Third Party Property Management: $12.6 million (**+87% YoY**)  **[0001393311-24-000193_psa-20240930.htm:3]** **[0001393311-24-000193_psa-20240930.htm:49]** **[0001393311-23-000096_psa-20230930.htm:49]**   
- Key Geographic Revenue (Q3 2024): $926.3 million (+6.5% YoY)  **[0001393311-24-000193_psa-20240930.htm:40]** **[0001393311-23-000096_psa-20230930.htm:39]**   
   - Washington DC: **+34% YoY**  **[0001393311-24-000193_psa-20240930.htm:40]** **[0001393311-23-000096_psa-20230930.htm:39]**   
   - Dallas-Ft. Worth: +21% YoY  **[0001393311-24-000193_psa-20240930.htm:40]** **[0001393311-23-000096_psa-20230930.htm:39]**   
   - Houston: +22% YoY  **[0001393311-24-000193_psa-20240930.htm:40]** **[0001393311-23-000096_psa-20230930.htm:39]**   
   - Orlando-Daytona: -6% YoY  **[0001393311-24-000193_psa-20240930.htm:40]** **[0001393311-23-000096_psa-20230930.htm:39]**   
- Interest Expense (Q3 2024): $74.3 million (**+27% YoY**)  **[0001393311-24-000193_psa-20240930.htm:3]** **[0001393311-24-000193_psa-20240930.htm:20]** **[0001393311-23-000096_psa-20230930.htm:4]** **[0001393311-23-000096_psa-20230930.htm:19]**   
- SG&A (Q3 2024): $26.2 million (-8% YoY)  **[0001393311-24-000193_psa-20240930.htm:3]** **[0001393311-24-000193_psa-20240930.htm:20]** **[0001393311-23-000096_psa-20230930.htm:4]** **[0001393311-23-000096_psa-20230930.htm:19]**   

29b07be6040e75e0eb3e7734924041ad05bfeea0d607b5ee701f1d93264b2ef1

9ea97f984fc8afb5e84d96996d08cb41672da9c8f0dfcd5f9f5b5cbe9f3d8df6

d22b1e787f492e4274171ab04fe693d813f5ac2db35c6602b73d8fee96945beb

| Year | Amount Due (in billions) | Debt Type | Interest Rate (%) | % of Total Debt |
|------|--------------------------|-----------|-------------------|-----------------|
| 2025 | 0.670 **[0001393311-24-000193_psa-20240930.htm:58]** **[0001393311-24-000193_psa-20240930.htm:14]**    | Unsecured | SOFR + 0.60% **[0001393311-24-000193_psa-20240930.htm:12]** | 7.0% = (0.670 / 9.528) * 100 **[0001393311-24-000193_psa-20240930.htm:58]** **[0001393311-24-000193_psa-20240930.htm:14]** |
| 2025 | 0.131 **[0001393311-24-000193_psa-20240930.htm:14]**            | Mortgage  | N/A               | 1.4% = (0.131 / 9.528) * 100 **[0001393311-24-000193_psa-20240930.htm:14]** |
| 2026 | 1.150 **[0001393311-24-000193_psa-20240930.htm:58]** **[0001393311-24-000193_psa-20240930.htm:14]**    | Unsecured | 0.875% **[0001393311-24-000193_psa-20240930.htm:12]**   | 12.1% = (1.150 / 9.528) * 100 **[0001393311-24-000193_psa-20240930.htm:58]** **[0001393311-24-000193_psa-20240930.htm:14]** |
| 2026 | 0.138 **[0001393311-24-000193_psa-20240930.htm:14]**            | Mortgage  | N/A               | 1.4% = (0.138 / 9.528) * 100 **[0001393311-24-000193_psa-20240930.htm:14]** |
| 2027 | 1.200 **[0001393311-24-000193_psa-20240930.htm:58]** **[0001393311-24-000193_psa-20240930.htm:14]**    | Unsecured | SOFR + 0.70% **[0001393311-24-000193_psa-20240930.htm:12]** | 12.6% = (1.200 / 9.528) * 100 **[0001393311-24-000193_psa-20240930.htm:58]** **[0001393311-24-000193_psa-20240930.htm:14]** |
| 2027 | 0.146 **[0001393311-24-000193_psa-20240930.htm:14]**            | Mortgage  | N/A               | 1.5% = (0.146 / 9.528) * 100 **[0001393311-24-000193_psa-20240930.htm:14]** |
| 2028 | 1.200 **[0001393311-24-000193_psa-20240930.htm:58]** **[0001393311-24-000193_psa-20240930.htm:14]**    | Unsecured | 1.850% **[0001393311-24-000193_psa-20240930.htm:12]**   | 12.6% = (1.200 / 9.528) * 100 **[0001393311-24-000193_psa-20240930.htm:58]** **[0001393311-24-000193_psa-20240930.htm:14]** |
| 2028 | 0.129 **[0001393311-24-000193_psa-20240930.htm:14]**            | Mortgage  | N/A               | 1.4% = (0.129 / 9.528) * 100 **[0001393311-24-000193_psa-20240930.htm:14]** |
| Thereafter | 5.308 **[0001393311-24-000193_psa-20240930.htm:58]** **[0001393311-24-000193_psa-20240930.htm:14]** | Unsecured | Various **[0001393311-24-000193_psa-20240930.htm:12]** | 55.7% = (5.308 / 9.528) * 100 **[0001393311-24-000193_psa-20240930.htm:58]** **[0001393311-24-000193_psa-20240930.htm:14]** |
| Thereafter | 0.001 **[0001393311-24-000193_psa-20240930.htm:14]**      | Mortgage  | N/A               | 0.0% = (0.001 / 9.528) * 100 **[0001393311-24-000193_psa-20240930.htm:14]** |

3a61ec4428267380d5e9572874185d29fca364641ce2628643b0d55ae46fa745

- The integration of the **Simply Self Storage acquisition** is progressing well, with **rents improving** and **occupancy expected to reach the 90% range upon stabilization**, indicating successful expansion and enhanced future revenue streams.  **[PSA_3374507_14]**
- **Existing customers are demonstrating strong payment behavior and acceptance of rate increases**, with **payment patterns better than pre-pandemic levels**, suggesting **stable and resilient revenue** from the current customer base.  **[PSA_3374507_6]** ,  **[PSA_3374507_24]**
- The company anticipates **reacceleration of financial metrics in the second half of 2024**, with **operating metrics such as occupancy and move-in rent trends already showing improvement**, positioning the company for growth.  **[PSA_3374507_5]**

5fc49a284324df359843e10e428c58faec7328f8798ca87b5b3a88c7331103dd

- **Delayed Acquisition Activity May Impede Growth**: The company has reduced its acquisition guidance for the year, with some deals slipping into 2025 rather than closing in 2024. This delay suggests that growth through acquisitions may be slower than anticipated. **"Some of it will slip into '25."**  **[PSA_3405183_24]**
- **Continued Pressure on Move-In Rents and Declining Occupancy**: Despite some markets showing stabilization, overall move-in rents remain under pressure, and occupancy is declining. In October, move-in rents were down **5%** year-over-year, and occupancy was down about **90 basis points**. This indicates ongoing challenges in improving revenue through pricing and occupancy gains. **"Move-in rents again, down 5% for the month... Occupancy is down about 90 basis points."**  **[PSA_3405183_6]**
- **Weakness in Key Markets Due to Supply and Storm Impacts**: Certain markets, particularly in Florida, are underperforming due to normalization, new supply, and the impact of recent hurricanes. Orlando's revenue was down **6.1%** in the quarter, and the company anticipates a financial impact of about **$7 million** from storm-related expenses. This could continue to pressure performance in these markets. **"Revenue was down 6.1%... Likely to have about a $7 million impact financially."**  **[PSA_3405183_27]** ,  **[PSA_3405183_28]**

ea5614ca814aef092164ae98d11b4dbbd690e5ff3013338c311e9c96519eb1de

1. **2025 Outlook Improvement**  
   **Q:** Do you expect improvement into 2025 regardless of housing?  
   **A:** Yes, we have confidence that **2024 is a year of stabilization**  **[PSA_3405183_4]** , leading to improvement in **2025**.  **[PSA_3405183_4]**  We've seen better market improvement across more of the portfolio than at the beginning of the year.  **[PSA_3405183_4]**  Factors like an improved housing market, interest rates, and economic growth could add positively.  **[PSA_3405183_4]**  Overall, we're in a better position going into 2025 than we were going into 2024.  **[PSA_3405183_4]** 

2. **Demand Stabilization and Growth**  
   **Q:** Does steady demand tie into your thoughts on improvement?  
   **A:** Yes, we've seen **stabilization of demand throughout this year**.  **[PSA_3405183_5]**  Markets like **Seattle** show consistent improvement  **[PSA_3405183_5]** , though overall growth isn't significant yet.  **[PSA_3405183_5]**  Our outlook still calls for same-store revenue growth to be down just over **1%** for the year.  **[PSA_3405183_5]**  Stabilization is the first step, observed across many markets.  **[PSA_3405183_5]** 

3. **Acquisition Timing and Guidance**  
   **Q:** Is reduced acquisition guidance due to timing of deals?  
   **A:** Yes, it's a timing issue.  **[PSA_3405183_24]**  The transaction market improved notably in the last **60 to 90 days**.  **[PSA_3405183_24]**  Much activity is expected to close in early **2025** rather than **2024**.  **[PSA_3405183_24]**  We have increased acquisition volumes under contract, with some deals slipping into **2025**.  **[PSA_3405183_24]** 

4. **Move-in Rent Trajectory**  
   **Q:** How will move-in rates trend ahead?  
   **A:** We're seeking demand stabilization to stabilize move-in rents.  **[PSA_3405183_8]**  We anticipated move-in rents down **mid-single digits** by year-end  **[PSA_3405183_8]** , and October performance aligns with this.  **[PSA_3405183_8]**  After a seasonal trough, we expect improvement in spring.  **[PSA_3405183_8]** 

5. **Acquisition Cap Rates**  
   **Q:** What's your expectation for cap rates in acquisitions?  
   **A:** We're targeting stabilized yields around **6%**  **[PSA_3405183_18]** , acquiring assets typically in the **5%** range.  **[PSA_3405183_18]**  This has been consistent over the past year.  **[PSA_3405183_18]** 

6. **Labor Savings via Digital Platform**  
   **Q:** Is payroll down due to e-rentals? Further savings ahead?  
   **A:** Yes, with **70–75%** of customers using our digital leasing platform  **[PSA_3405183_9]** , we're optimizing staffing.  **[PSA_3405183_9]**  This benefits customer interaction and employee engagement  **[PSA_3405183_9]** , leading to ongoing optimization.  **[PSA_3405183_9]** 

7. **Demand Drivers**  
   **Q:** What factors are driving demand improvement?  
   **A:** Demand shifted with softer home sales but strong **apartment renter activity**.  **[PSA_3405183_7]**  Record usage from customers running out of space at home.  **[PSA_3405183_7]**  Overall demand levels are consistent year-over-year.  **[PSA_3405183_7]**  Length of stays remain longer than pre-pandemic.  **[PSA_3405183_7]** 

8. **Market Performance**  
   **Q:** Which markets are performing best or struggling?  
   **A:** **Seattle**, **DC**, and **San Francisco** are accelerating.  **[PSA_3405183_27]**  **Atlanta** is normalizing with new supply.  **[PSA_3405183_27]**  Some markets are improving even if they had strong performance in prior years.  **[PSA_3405183_27]**  In **Florida**, increased move-ins relate to storm rebuilding.  **[PSA_3405183_27]** 

9. **Existing Customer Rent Increases**  
   **Q:** Is ECRI contribution higher this quarter? Year-end outlook?  
   **A:** Yes, third-quarter ECRI was better year-over-year.  **[PSA_3405183_17]**  Driven by newer customers from the past **12–18 months** contributing more.  **[PSA_3405183_17]**  We expect strong trends to continue.  **[PSA_3405183_13]** 

10. **Promotional Discounts**  
    **Q:** What's driving higher promotions, and future impact?  
    **A:** Promotions were used more in Q3, with about **60%** of customers receiving them.  **[PSA_3405183_14]**  Still modest compared to **85–90%** in 2019.  **[PSA_3405183_14]**  Used tactically to optimize customer acquisition.  **[PSA_3405183_14]**  October promotions were consistent year-over-year.  **[PSA_3405183_20]** 

11. **Digital Adoption and Savings**  
    **Q:** Is there more room for digital growth and cost savings?  
    **A:** Yes, **75%** of customers now use digital channels.  **[PSA_3405183_23]**  We're optimistic usage will grow, leading to further optimization.  **[PSA_3405183_23]**  Our **PS app** has **2 million** users  **[PSA_3405183_23]** , enhancing customer interaction.

12. **Development Outlook**  
    **Q:** How do development deliveries in '24 compare to '25/'26?  
    **A:** **2024** will be a record with **$430 million** in deliveries.  **[PSA_3405183_25]**  We'll see a slight drop in **2025** due to development challenges  **[PSA_3405183_25]** , but aim to increase in **2026**.  **[PSA_3405183_25]** 

13. **Transaction Landscape**  
    **Q:** Seeing single assets or portfolios marketed?  
    **A:** Both.  **[PSA_3405183_16]**  Individual and small assets remain, with larger portfolios starting to surface.  **[PSA_3405183_16]** 

14. **Demand Elasticity and Pricing**  
    **Q:** Is demand less elastic when adjusting pricing?  
    **A:** We continually test price elasticity.  **[PSA_3405183_11]**  Customers are price-sensitive when moving in but value units highly after.  **[PSA_3405183_11]**  We optimize revenue based on inventory and demand.  **[PSA_3405183_11]** 

15. **Balancing Labor Savings**  
    **Q:** How do you balance labor savings with service risk?  
    **A:** We use analytics to optimize staffing per property.  **[PSA_3405183_26]**  Tools help us ensure effective customer service.  **[PSA_3405183_26]**  Specialized roles and vibrant care centers enhance service.  **[PSA_3405183_26]** 

16. **Occupancy Clarification**  
    **Q:** Is October occupancy down 90 bps year-over-year?  
    **A:** Yes, down **90 basis points** year-over-year.  **[PSA_3405183_21]**  We anticipated this seasonal decline.  **[PSA_3405183_21]**  Average occupancy expected to be down about **70 basis points** for the year.  **[PSA_3405183_21]** 

17. **Hurricane Impact**  
    **Q:** What's the financial impact from hurricanes?  
    **A:** We anticipate about a **$7 million** financial impact.  **[PSA_3405183_27]**  Increased move-ins due to storm rebuilding  **[PSA_3405183_27]** , but too early to quantify NOI impact.  **[PSA_3405183_29]** 

18. **Accounting for Promotions**  
    **Q:** How are promotional dollars accounted for?  
    **A:** Promotions like the **dollar special** are contra revenue in the first month.  **[PSA_3405183_15]**  A customer pays **$1** for the first month's rent.  **[PSA_3405183_15]** 

19. **Land for Development**  
    **Q:** How many years of development starts do you control?  
    **A:** We own about **$60 million** in land   , providing visibility over the next couple of years.    We often use contractual options until ready to build.   

20. **COO Hiring Strategy**  
    **Q:** What's behind the new COO hiring?  
    **A:** We're excited to have **Chris Sambar** join as COO  **[PSA_3405183_19]** , bringing over **20 years** of AT&T experience  **[PSA_3405183_19]**  in technology and infrastructure.  **[PSA_3405183_19]** 

21. **Rent Trends Clarification**  
    **Q:** Do sequential rent trends show improvement?  
    **A:** Yes, October rents are compared apples-to-apples.  **[PSA_3405183_28]**  We're on track for move-in rents down single digits by year-end.  **[PSA_3405183_28]** 

22. **Website Data Confirmation**  
    **Q:** Does website data confirm stabilization?  
    **A:** Yes, industry-wide demand reached parity in September/October.  **[PSA_3405183_22]**  Web visits are up year-over-year with good conversion rates.  **[PSA_3405183_22]** 

23. **ECRI Trends**  
    **Q:** Are rent bumps higher this quarter?  
    **A:** Yes, third-quarter contribution was better year-over-year.  **[PSA_3405183_17]**  Driven by newer customers' contributions.  **[PSA_3405183_17]** 

24. **Hurricane-Related Move-ins**  
    **Q:** How much NOI benefit from hurricane move-ins?  
    **A:** Too early to tell.  **[PSA_3405183_29]**  We have associated financial costs.  **[PSA_3405183_29]** 

25. **Promotional Accounting**  
    **Q:** How are promotions treated in accounting?  
    **A:** Promotions are contra revenue in the first month.  **[PSA_3405183_15]**  Customer pays **$1** under the dollar special.  **[PSA_3405183_15]** 

2fbd8cb4489a2f70e5e00ed0d4584c65e7bf0ced8827ecb4a15d6f2a20094492

1. **Revenue Guidance for 2024**  
   **Q:** What is your same-store revenue growth outlook for 2024?  
   **A:** The company expects same-store revenue growth to range from **down 1% to up 1%** in 2024, with a dip anticipated in the first half before reacceleration in the second half. This outlook assumes that operating metrics will stabilize and improve as the year progresses.  **[PSA_3374507_5]** **[PSA_3374507_25]** 

2. **Move-in Rent Trends**  
   **Q:** How are move-in rents trending, and what's expected ahead?  
   **A:** Move-in rents began the year **down 10–11%** year-over-year but are expected to cross zero and turn positive by **late summer**. This improvement is due to both seasonal uplift and stabilizing demand, leading to higher rates by the end of the year.  **[PSA_3374507_6]** **[PSA_3374507_17]** 

3. **ECRI Outlook**  
   **Q:** What is the outlook for Existing Customer Rent Increases?  
   **A:** The contribution from ECRIs is expected to be consistent with 2023, as higher replacement costs from lower move-in rents will be offset by more customers eligible for rent increases. The company anticipates **no significant change** in customer price sensitivity or behavior.  **[PSA_3374507_3]** **[PSA_3374507_19]** 

4. **Acquisition Environment**  
   **Q:** What's the outlook for acquisitions and cap rates?  
   **A:** The acquisition market remains slow, with limited opportunities due to sellers' high price expectations. The company observes cap rates for stabilized assets in the **mid-5% to 6%** range, targeting returns over **6%**. While no acquisitions are currently under contract, active discussions are ongoing.  **[PSA_3374507_8]** **[PSA_3374507_13]** 

5. **Occupancy Trends**  
   **Q:** What are the occupancy trends and expectations for 2024?  
   **A:** Occupancy is expected to be down about **80 basis points** year-over-year at the midpoint of guidance, similar to the end of 2023. Some markets are already showing reacceleration, but overall, a significant increase in occupancy levels is not expected this year.  **[PSA_3374507_5]** **[PSA_3374507_15]** 

6. **Expense Growth and Marketing**  
   **Q:** How are marketing expenses impacting overall expense growth?  
   **A:** Marketing expenses contribute to an overall expected expense growth of approximately **2.75%** at the midpoint. The company increased marketing spend to **2.5%** of revenue in 2023 and plans to maintain this level to support demand in a challenging environment.  **[PSA_3374507_4]** 

7. **Development Pipeline**  
   **Q:** What's the status of the development pipeline and expected deliveries?  
   **A:** The company plans to deliver **$450 million** in developments in 2024, up from **$360 million** in 2023. Deliveries are expected to be balanced across the year, with a mix of new developments and expansions. The company aims to grow this business despite the industry-wide slowdown in new deliveries.  **[PSA_3374507_11]** 

8. **Management Platform Acquisitions**  
   **Q:** Have you sourced acquisitions from your management platform?  
   **A:** The company has acquired close to **40 assets** from its management platform and expects it to be a significant source of future acquisitions as the platform grows beyond **325 assets**.  **[PSA_3374507_22]** 

0e9f4e58e51cb4d49d417bc1d89cd254a13f3cf09d4eaa9a182e547c5173882c

1. **Revenue Growth Reacceleration**  
   **Q:** Are you seeing accelerating year-over-year revenue growth in certain markets?  
   **A:** Yes, we're witnessing month-over-month improvements in year-over-year revenue growth in several markets. For example, if a market grew **1%** in February and **1.5%** in March, that's a reaccelerating market.  **[PSA_3382028_7]** 

2. **Guidance Affirmation**  
   **Q:** Do you still expect move-in rents to improve and occupancy to remain down slightly?  
   **A:** Yes, our previous guidance remains intact. We're encouraged by performance to date and anticipate move-in rents crossing the zero threshold later in the summer, with occupancy down about **80 basis points** for the year.  **[PSA_3382028_11]** 

3. **Supply Forecast Divergence**  
   **Q:** How does your supply forecast compare to industry estimates?  
   **A:** We see supply tapering down in **2024**, differing from some industry forecasts. Development headwinds like entitlement delays and higher costs make new projects challenging, pushing potential new supply out to **2026 or 2027**.  **[PSA_3382028_10]** 

4. **Acquisition Guidance**  
   **Q:** What's your acquisition guidance for 2024?  
   **A:** We project **$500 million** in acquisitions for **2024**, with activity likely back-ended. We're actively engaging with various sellers and remain confident in meeting this target.  **[PSA_3382028_20]** 

5. **Expense Outlook**  
   **Q:** How do you expect same-store expenses to trend this year?  
   **A:** We anticipate expense growth to improve over the year. Property taxes are expected to increase by about **5%** year-over-year. First-quarter expenses were elevated due to early reassessments and higher marketing spend, which will moderate as the year progresses.  **[PSA_3382028_14]** 

6. **Existing Customer Rent Increases**  
   **Q:** Will existing customer rent increases pick up as markets improve?  
   **A:** Yes, as markets show momentum, we'll evaluate increasing the magnitude or frequency of rent hikes for existing customers, factoring in demand and cost to replace tenants.  **[PSA_3382028_16]** 

7. **Marketing Expense Trends**  
   **Q:** Is your marketing spend at a five-year high?  
   **A:** Marketing spend was elevated in the first quarter, similar to levels in **2018-2019**. We expect it to decline as a percentage of revenue in the coming quarters, adjusting dynamically based on local demand trends.  **[PSA_3382028_25]** 

8. **Commercial Tenant Health**  
   **Q:** How is the health of your commercial tenants?  
   **A:** We see no elevated stress among commercial tenants. Demand remains strong and consistent, with various industries utilizing our storage solutions without significant changes from last year.  **[PSA_3382028_17]** 

9. **Labor Optimization**  
   **Q:** Can you further reduce labor costs and FTEs?  
   **A:** Yes, we continue to optimize labor hours using digital tools. We've surpassed previous targets and see additional opportunities to reduce FTE hours while maintaining or increasing customer satisfaction.  **[PSA_3382028_23]** 

10. **Move-in Rate Trends**  
    **Q:** How do current move-in rents compare to normal seasonal patterns?  
    **A:** Year-to-date, move-in rents are consistent with, and slightly better than, last year's seasonal trends, aligning with our expectations.  **[PSA_3382028_28]** 

5d6f6618c7eb3cbc9ca18e96a2cb9991919a774332b159cf317437c7daa84038

- **Non-same-store portfolio is an engine of growth:** The company expects an additional **$110 million of incremental NOI** in 2025 and beyond from its non-same-store pool, which is leasing up quickly and contributing strongly to growth.  **[PSA_3395575_15]**
- **Positive momentum in key markets:** The company is seeing **continued positive momentum** in markets like **Seattle, San Francisco, and the Mid-Atlantic**, with some markets experiencing **move-in rents nearly flat** year-over-year, suggesting improvements and stabilization.  **[PSA_3395575_3]**
- **Effective cost management through digital and solar initiatives:** Implementation of the **digital leasing platform (eRental)**, with **70% of new lease transactions signed digitally**, has allowed for reduced staffing levels and operational efficiencies. Additionally, **utilities expenses are down 8%** due to the company's **solar power initiatives**, with plans to install solar on over 1,000 properties over the next several years.  **[PSA_3395575_10]**

c9fa03e8a431b6291f6879e63602901fe297704593869572e0ab6f9c0d10a479

1. **Guidance Changes**  
   **Q:** What impacts revised revenue guidance?  
   **A:** Management stated same-store revenue growth was down **0.5%** in the first half and is expected to be down **1.5%** in the second half, reflecting modest improvements but at a recalibrated pace due to slower-than-anticipated move-in rent improvements.  **[PSA_3395575_5]** 

2. **Move-in Rent Trends**  
   **Q:** How are move-in rents performing?  
   **A:** Move-in rents were down **16%** in Q1, **14%** in Q2, and now down **12%** in July, showing modest sequential improvement, though not at the pace originally outlined.  **[PSA_3395575_3]** **[PSA_3395575_7]** **[PSA_3395575_12]** 

3. **Acquisitions and Cap Rates**  
   **Q:** What's the outlook for acquisitions and cap rates?  
   **A:** Cap rates have increased from around **4%** two years ago to about **6%** today; management is confident in pursuing opportunities at these levels but notes more transaction activity is needed to stabilize rates.  **[PSA_3395575_6]** 

4. **Capital Allocation**  
   **Q:** Why were shares repurchased?  
   **A:** With limited acquisition opportunities, management saw a good opportunity to buy back shares, extracting value from their stock while remaining well-capitalized to deploy capital when opportunities arise.  **[PSA_3395575_4]** 

5. **Demand and Competition**  
   **Q:** What's driving competitive move-in environment?  
   **A:** While the company's move-in traffic remains strong, overall industry demand is down year-over-year, with Google search volumes for storage terms decreasing, leading to increased competition and aggressive pricing.  **[PSA_3395575_11]** 

6. **Expenses and Operational Efficiencies**  
   **Q:** How are expenses trending?  
   **A:** Property taxes are up around **5%** as expected, while property payroll expenses are reduced through digital initiatives like eRental, with **70%** of leases signed digitally, enabling cost savings and further optimization.  **[PSA_3395575_10]** 

7. **Supply and Development Activity**  
   **Q:** What's the status of new supply?  
   **A:** Development activity remains low nationally at about a **mid-2%** increase in existing stock, due to factors like cost of capital and entitlement timing; this allows the company to pursue record development in 2024.  **[PSA_3395575_9]** 

8. **Existing Customer Rent Increases**  
   **Q:** Any changes in ECRIs?  
   **A:** Price sensitivity among existing tenants remains consistent, with no change to ECRIs' contribution to revenue growth; an increased volume of recent move-ins is positively impacting the program.  **[PSA_3395575_7]** **[PSA_3395575_18]** 

9. **Consumer Trends**  
   **Q:** Seeing any consumer stress?  
   **A:** No signs of new or evolving consumer stress; payment behaviors and delinquency remain consistent, with no risk factors emerging.  **[PSA_3395575_16]** 

10. **Third-Party Management Growth**  
    **Q:** How is the third-party management platform performing?  
    **A:** The platform has grown to approximately **375 assets**, with ongoing additions and increased activity, enhancing scale and benefiting both clients and the company.  **[PSA_3395575_17]** 

ff5297a2e96db4506f10f19b7a146dbd89a896fe9a832b8099254a10594571a1

- **Negative same-store revenue growth is expected in the first half of 2024**, indicating a challenging operating environment. Management anticipates a deceleration with potential negative performance year-over-year before a possible reacceleration in the second half.  **[PSA_3374507_25]** ,  **[PSA_3374507_5]**
- **Move-in rents are down 10-11% year-over-year in January and February 2024**, reflecting persistent weakness in new customer demand. Despite expectations for improvement later in the year, the current trend shows move-in rents declining by double digits.  **[PSA_3374507_6]** ,  **[PSA_3374507_10]** ,  **[PSA_3374507_9]**
- **The low end of the company's guidance assumes prolonged negative move-in rent trends**, with move-in rents not reaching year-over-year parity until the **end of the year**, and occupancy potentially declining by **about 120 basis points**, suggesting risks to achieving revenue growth targets.  **[PSA_3374507_7]**

3ddec860b85a72d7dcf6c80f98c8f9ff49f1889811af4d0a21f635b3531ccce7

- **Momentum Building in the Transaction Market for Acquisitions**: After nearly two years of low transaction volumes, the company is seeing increased activity with more assets coming to market, both small and large, indicating potential growth opportunities through acquisitions.  **[PSA_3405183_12]**
- **Improving Demand Trends and Strong Online Engagement**: Industry-wide demand is improving, reaching parity in September and October. The company is experiencing **positive year-over-year web visits** and **good conversion rates**, supporting stabilizing operating fundamentals.  **[PSA_3405183_22]**
- **Investment in Technology and Operational Optimization**: The company is investing in technology and analytics to optimize operations, including hiring a new **Chief Operating Officer** with significant experience in technology and infrastructure. They are using advanced analytics to **optimize staffing levels** and have created specialized roles within property management, enhancing efficiency and customer service.  **[PSA_3405183_19]** **[PSA_3405183_26]**

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- **The company anticipates a deceleration of financial performance into the second quarter of 2024**, indicating potential short-term revenue challenges.  **[PSA_3382028_2]**
- **Same-store net operating income declined 1.5% in the first quarter**, driven by a 4.8% increase in operating expenses, including higher property taxes and marketing costs.  **[PSA_3382028_2]**
- **The transaction market for acquisitions remains subdued with limited volumes due to a volatile cost of capital environment**, potentially limiting growth opportunities.  **[PSA_3382028_2]** **[PSA_3382028_26]**

91cacc57608ad4e507b424ccf4887fc2d1790f209fb78122c52671eeb9b910ef

- **PSA revised its guidance downward** due to lower-than-expected move-in rents and increased competitive pressures. Move-in rents were down **14%** in the second quarter, compared to an original forecast of down **6%**.  **[PSA_3395575_1]**  As a result, core FFO guidance has been reduced to a range of **$16.50 to $16.85 per share**, an approximate **1% reduction** compared to the midpoint of prior guidance.  **[PSA_3395575_2]**
- **Same-store revenues declined** by **1%** in the second quarter, driven by lower occupancy and rents.  **[PSA_3395575_2]**  The company expects further pressure on occupancy, with an implied decline of **1.5%** in same-store revenues in the second half.  **[PSA_3395575_24]**  Lower market move-in rents are expected to persist due to a **competitive pricing environment**, impacting revenue growth.  **[PSA_3395575_12]**
- **Demand is down year-over-year**, contributing to the competitive environment and declining move-in rents. Google keyword search volumes for storage-related terms are **down year-over-year**, which impacts the competitive move-in dynamic.  **[PSA_3395575_27]**  This decreased demand may lead to continued pressure on move-in rents and occupancy levels.

538ccd56fb7a234564c7fd3b416df2bd8d8b790ee36f47cd8cf3734df69e80b5

- **Strong performance and growth prospects in key markets like Southern California**, with continued **strong customer activity** and **very limited new competitive supply**, enabling expansion and consistent levels of activity.  **[PSA_3382028_24]**
- **Lower delinquency rates** and a **healthy consumer base**, including both **individual and commercial customers**, indicating strong demand factors and a positive outlook for the company's financial health.  **[PSA_3382028_32]** **[PSA_3382028_18]**
- The company maintains confidence in achieving its **8% NOI yield target within 3-4 years**, continuing to find attractive development opportunities despite industry headwinds, expected to deliver strong returns.  **[PSA_3382028_15]**

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Public Storage (PSA)

Financials