Public Storage

All revenue comes from month-to-month storage leases with high tenant retention, creating a recurring monthly payment base without multi-year contractual backlog. Same-store revenue was positive across FY2022-FY2025 before being guided to approximately -1% in 2026, reflecting meaningful sensitivity to U.S. housing market activity.

Revenue is essentially 100% self-storage, with no meaningful second product line; ancillary services such as tenant insurance and merchandise are immaterial to the consolidated mix. Within the single product type, tenant mix spans residential, small-business, and military customers, providing limited diversification.

Substantially all revenue comes from U.S. properties across 40-plus states, with international exposure limited to a minority equity stake in Shurgard (listed separately in Europe). The single-country footprint amplifies sensitivity to U.S. housing cycles, Federal Reserve rate moves, and domestic regulatory changes.

Same-store NOI margins held near 78% across FY2023-FY2025, demonstrating genuine operating leverage on the existing facility base. Growth, however, requires acquiring or developing new physical locations, creating a capex-dependent expansion model typical of the REIT structure.

Leases are month-to-month residential and small-business agreements without the multi-year contractual duration or investment-grade counterparty credit of triple-net REITs. Practical stickiness from the cost and effort of relocating stored goods provides some retention, but no long-term contractual obligation anchors the revenue base.