Public Storage (PSA) Q2 2026: EPS +45% on FX, Core FFO -2.6%
Public Storage's headline quarter looks like a breakout — diluted EPS of $2.55 versus $1.76 a year ago, up 44.9% — but almost none of it came from storing anything. A $163.3 million swing in foreign currency gains on the company's euro-denominated notes more than accounts for the entire $141.3 million increase in net income allocable to common shareholders, and once that and other non-core items are stripped out, Core FFO per share actually fell to $4.17 from $4.28, down 2.6%. The operating reality underneath is a same-store portfolio whose revenue declined 0.6% while its cost base rose 4.4%; across the whole owned portfolio, self-storage NOI was essentially flat at $832.1 million against $833.9 million. What makes this quarter consequential is not the earnings optics but what closed three weeks after the balance sheet date: the all-stock merger with National Storage Affiliates, which pushes the combined platform past 4,500 locations and roughly 327 million net rentable square feet.
All figures below are from Public Storage's Form 10-Q for the quarter ended June 30, 2026, unless otherwise sourced.
1. Consolidated Balance Sheet
1-1. Principal asset movements
| Item | Dec 31, 2025 ($M) | Jun 30, 2026 ($M) | Change % |
|---|---|---|---|
| Cash and equivalents | 318.1 | 259.9 | -18.3% |
| Total real estate facilities, net | 18,804.6 | 18,754.1 | -0.3% |
| — Construction in process | 194.4 | 260.1 | +33.8% |
| Investment in Shurgard (unconsolidated) | 388.6 | 364.8 | -6.1% |
| Goodwill and other intangibles, net | 251.6 | 228.0 | -9.4% |
| Notes receivable, net | 142.1 | 173.3 | +21.9% |
| Other assets | 303.6 | 337.6 | +11.2% |
| Total assets | 20,208.6 | 20,117.7 | -0.4% |
The balance sheet shrank slightly, which is itself the story of a company mid-pause before a large acquisition. Gross land and buildings rose 1.4% to $30,502.8 million, but accumulated depreciation grew faster — up $540.7 million to $12,008.8 million — so net real estate declined. Construction in process jumping 33.8% to $260.1 million is the forward-looking line: development spend is being staged, not wound down. The 21.9% rise in notes receivable to $173.3 million reflects lending against third-party storage assets, a channel that later produced the $237 million mezzanine loan extended to the post-merger joint venture.
