Public Storage

To access the queue, please press star 1 on your telephone keypad. If anyone should require operator assistance during the conference, please press star 0 on your telephone keypad. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Mr. Ryan Burke. Thank you. You may begin.

Thank you, Rob. Hello, everyone. Thank you for joining us for our second quarter 2025 earnings call. I'm here with Joe Russell and Tom Boyle. Before we begin, we want to remind you that certain matters discussed during this call may constitute forward-looking statements within the meaning of the federal securities laws. These forward-looking statements are subject to certain economic risks and uncertainties. All forward-looking statements speak only as of today, July 31st, 2025, and we assume no obligation to update, revise, or supplement statements that become untrue because of subsequent events. A reconciliation to GAAP of the non-GAAP financial measures we provide on this call is included in our earnings release. You can find our news release, supplement report, SEC reports, and an audio replay of this conference call on our website at publicstorage.com. We do ask that you initially limit yourself to two questions. After that, of course, feel free to jump back in queue. With that, I'll turn the call over to Joe.

Thank you, Ryan, and thank you all for joining us today. Tom and I will walk you through our performance, industry views, and outlook. Then we'll open it up for Q&A. We are raising our outlook for 2025 based on stabilizing operations and accelerated acquisitions, which reached 785 million closed or under contract year to date. Public storage's industry leadership is proven by, among other things, the highest revenue generation per square foot among peers. the most efficient operating platform, including customer and employee-centric technologies that are enhancing satisfaction while bolstering our revenue and margin advantages, and the strongest ability to drive portfolio expansion through our best-in-class acquisition and development teams backed by our growth-oriented balance sheet. As the operating environment stabilizes, new competitive supply deliveries decline further and the transaction market becomes more active, we are holistically enhancing our advantages and positioning for growth. From a performance perspective, the West Coast in particular, along with other markets, including Washington, D.C., and Chicago, are standouts, with same-store revenue growth in the 2% to 4% range. Our expectation for the impact of fire-related pricing restrictions in Los Angeles is unchanged. Similar to most of California, Los Angeles will return to being a higher growth market when the restrictions end. Speaking more broadly, the trusted public storage brand and our geographically diversified portfolio are highly recognizable to consumers and businesses and a source of pride for our team. We have developed an optimized mix of digital and in-person service options that have modernized the customer experience while driving returns and revenues. With our broader operating model transformation, we have created a win-win-win for customers, team members, and our profitability through higher engagement, satisfaction, and efficiency. Our ancillary businesses, including tenant insurance, third-party management, and lending, are expanding. Our acquisition and development teams are executing on accretive portfolio growth with a 538 property non-same store pool expected to generate approximately 470 million of high growth NOI in 2025, with an additional 110 million coming through stabilization in 2026 and beyond. And public storage is uniquely positioned to grow internationally. as demonstrated by our success with SureGuard in Europe and the potential new partnership in Australia and New Zealand. As announced, we are currently in due diligence and therefore in a quiet period. We are excited about the potential to partner with Abacus, Storage King, and Kai Corporation, their major shareholder, to enhance the company's customer experience, operating performance, and portfolio growth. Now I'll turn the call over to Tom.