Public Storage, Extra Space raise 2026 Core FFO guidance

The Print Public Storage (NYSE: PSA ) and Extra Space Storage Inc. (NYSE: EXR ) both raised full-year 2026 Core FFO guidance when they reported second-quarter results, but their annualized dividends claim different shares of those higher ranges.

Public Storage’s $3.00 quarterly dividend annualizes to $12.00.

Against the $16.90 midpoint of its $16.75 to $17.05 Core FFO per share guidance, the payout is 71.0%.

Extra Space’s $1.62 quarterly dividend annualizes to $6.48.

Against the $8.325 midpoint of its $8.25 to $8.40 Core FFO guidance, the payout is 77.8%.

The gap is 6.8 percentage points.

The same-store operating results underneath it moved in opposite directions during the quarter.

Public Storage raised guidance while same-store NOI fell.

Extra Space raised guidance while same-store NOI grew.

Both companies also entered the second half after fresh financing activity.

Public Storage expanded its bank capacity, created a commercial paper program and issued $900 million of senior notes before closing the National Storage Affiliates acquisition.

Extra Space priced $550 million of senior notes on June 24, completed the offering on July 6 and had $850 million of commercial paper outstanding at June 30.

Public Storage Raised Guidance With Same-Store NOI Down 2.2% Public Storage reported second-quarter Core FFO of $4.17 per share, down 2.6% from $4.28 a year earlier.

Against the $3.00 dividend, the quarterly payout was 71.9%.

Same-store revenue fell 0.6% and same-store NOI declined 2.2% as direct operating costs rose 4.3%.

Average same-store occupancy was 92.5%.

The company nevertheless raised full-year Core FFO guidance to $16.75 to $17.05 from $16.35 to $17.00.

The midpoint moved from $16.675 to $16.90, a 22.5-cent increase by DFB calculation.

Public Storage said the new outlook included two cents of accretion from financing its National Storage Affiliates and Public Storage Canada acquisitions.

Public Storage had already expanded its funding capacity before the NSA deal closed on July 22.

On June 25, Public Storage replaced a $1.5 billion revolver with a $3.0 billion unsecured revolving facility, added a $500 million delayed-draw term loan and established a $1.0 billion commercial paper program.

On July 20, Public Storage Operating Company, a subsidiary of Public Storage, completed $400 million of 4.700% notes due 2032 and $500 million of 5.150% notes due 2036.

The notes were subject to special mandatory redemption if the NSA acquisition failed to close by the specified outside date or if Public Storage notified the trustee that it would not pursue the deal.

The acquisition closed two days after the notes were issued, and that redemption provision ceased to apply.

Extra Space Raised Guidance With Same-Store NOI Up 3.5% Extra Space reported second-quarter Core FFO of $2.15 per share, up 4.9% from $2.05 a year earlier.

Against the $1.62 dividend, the quarterly payout was 75.3%.

Same-store revenue rose 2.4%, operating expenses fell 0.5% and same-store NOI increased 3.5%.

Ending same-store occupancy was 94.2%.

Full-year Core FFO guidance moved to $8.25 to $8.40 from $8.05 to $8.35.

The midpoint rose by 12.5 cents per share.

The company also lifted its same-store revenue growth range to 1.0% to 2.0% from negative 0.5% to positive 1.5%.

The financing picture is different in scale and form.

Extra Space priced $550 million of 4.900% senior notes due 2032 on June 24 and completed the offering on July 6.

At June 30, its $1.0 billion commercial paper program had $850 million outstanding.

The company reported a 4.3% combined weighted-average interest rate on debt and a weighted-average maturity of approximately four years.

Net of variable-rate receivables, Extra Space said 88.4% of debt was effectively fixed rate.