Q4 2025 Public Storage Earnings Call

February 13, 2026

Operator: Greetings, and welcome to the Public Storage Q4 2025 earnings call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. To join the question queue, please press star one on your telephone keypad. If anyone should require operator assistance during the conference, please press star zero. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Mr. Brandon Regan, Director of Investor Relations. Thank you. You may begin.

Speaker #2: To join the question queue, please press star 1 on your telephone keypad. If anyone should require operator assistance during the conference, please press star 0.

Speaker #2: As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Mr. Brandon Regan, Director of Investor Relations. Thank you.

Speaker #2: You may begin.

Speaker #1: Hello, everyone, and thank you for joining us for our fourth quarter 2025 earnings call. I'm here with the Public Storage leadership team: Joe Russell, Tom Boyle, and Joe Fisher.

Brandon Reagan: Hello, everyone, and thank you for joining us for our Q4 2025 Earnings Call. I'm here with the Public Storage leadership team, Joe Russell, Tom Boyle, and Joe Fisher. 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, 13 February 2026, 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.

Speaker #1: 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.

Speaker #1: These forward-looking statements are subject to certain economic risks and uncertainties. All forward-looking statements speak only as of today, February 13, 2026. We assume no obligation to update, revise, or supplement statements that become untrue because of subsequent events.

Speaker #1: 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 press release, supplemental report, earnings presentation—which we will refer to during this call—SEC reports, and an audio replay of this conference call at our Investor Relations website.

Brandon Reagan: You can find our press release, supplement report, earnings presentation, of which we will refer to during this call, SEC reports, and an audio replay of this conference call at our investor relations website, investors.publicstorage.com. We ask that you initially limit yourself to two questions. However, if you have any additional questions, please feel free to jump back into queue. With that, I'll turn the call over to Joe Russell.

Speaker #1: Investors.publicstorage.com. We ask that you initially limit yourself to two questions. However, if you have any additional questions, please feel free to jump back into the queue.

Speaker #1: With that, I'll turn the call over to Joe Russell. Thanks, Brandon. Good morning, and thank you for joining us. Today is a significant day for Public Storage.

Joe Russell: Thanks, Brandon. Good morning, and thank you for joining us. Today is a significant day for Public Storage. We're here to discuss our Q4 and full year results, but more importantly, we're unveiling PS 4.0, the next era of Public Storage leadership and strategy. Tom, Joe, and I will walk you through the full range of changes we're making to drive accelerated performance and long-term value creation. Then we'll open it up for your questions. Let me start with the leadership transitions and additions we announced yesterday. Succession planning has always been a top priority for our board, and the objective has been crystal clear: place exceptional talent in every single leadership position at Public Storage. I'm pleased to say we've met that objective. On the management side, I'm thrilled to announce Tom Boyle's promotion to CEO and trustee.

Speaker #1: We're here to discuss our fourth quarter and full-year results, but more importantly, we're unveiling PS 4.0—the next era of Public Storage leadership and strategy.

Speaker #1: Tom, Joe, and I will walk you through the full range of changes we're making to drive accelerated performance and long-term value creation. Then we'll open it up for your questions.

Speaker #1: Let me start with the leadership transitions and additions we announced yesterday. Succession planning has always been a top priority for our board, and the objective has been crystal talent in every single leadership position at Public Storage.

Speaker #1: I'm pleased to say we've met that objective. On the management side, I'm thrilled to announce Tom Boyle's promotion to CEO and trustee. Tom and I have been partners for nearly a decade, since we both joined Public Storage in 2016.

Joe Russell: Tom and I have been partners for nearly a decade since we both joined Public Storage in 2016. As you know, Tom has proven to be an exceptional leader in both his CFO and CIO roles, with outstanding accomplishments across capital allocation, operations, and financial strategy. Tom is more than ready to lead Public Storage into PS 4.0. Our board, management team, and I could not be more confident in his skill, drive, and vision. Congratulations, Tom. I'm also pleased to welcome Joe Fisher to the executive team as President and CFO. Joe's tenure at UDR as President, CFO, and CIO, along with his stature in the REIT industry, made him an exceptional fit for our senior leadership team. Joe joins Public Storage at a great time and adds outstanding depth to our leadership ranks. Welcome, Joe. Tom will cover other significant leadership changes in a moment.

Speaker #1: As you know, Tom has proven to be an exceptional leader in both his CFO and CIO roles, with outstanding accomplishments across capital allocation, operations, and financial strategy.

Speaker #1: Tom is more than ready to lead Public Storage into PS 4.0. Our board, management team, and I could not be more confident in his skill, drive, and vision.

Speaker #1: Congratulations, Tom. I'm also pleased to welcome Joe Fisher to the executive team as president and CFO. Joe's tenure at UDR as president, CFO, and CIO, along with his stature in the REIT industry, made him an exceptional fit for our senior leadership team.

Speaker #1: Joe joins Public Storage at a great time and adds outstanding depth to our leadership ranks. Welcome, Joe. Tom will cover other significant leadership changes in a moment.

Speaker #1: At the board level, Ron Havner is stepping down as chairman after 15 years of iconic leadership and will continue as a trustee. Ron is a legend in our industry, and has been a tremendous mentor to me and the management team at Public Storage.

Joe Russell: At the board level, Ron Havner is stepping down as chairman after 15 years of iconic leadership and will continue as a trustee. Ron is a legend in our industry and has been a tremendous mentor to me and the management team at Public Storage. I can't thank him enough for his dedication and insight. John Reyes, our former CFO and current trustee, is retiring from the board. John has guided Public Storage with nearly three decades of financial acumen and discipline. His impact on this company is immeasurable. I'm excited to announce that Shankh Mitra, CEO of Welltower, and an independent Public Storage trustee for the last five years, will now take the role of chairman. Shankh brings a proven track record of value creation, strategic clarity, and leadership. We're excited to have him guide and mentor the management team in his new role.

Speaker #1: I can't thank him enough for his dedication and insight. John Reyes, our former CFO and current trustee, is retiring from the board. John has guided Public Storage with nearly three decades of financial acumen and discipline.

Speaker #1: His impact on this company is immeasurable. And I'm excited to announce that Shock Mitra, CEO of Welltower and an independent Public Storage trustee for the last five years, will now take the role of chairman.

Speaker #1: Shock brings a proven track record of value creation, strategic clarity, and leadership. We're excited to have him guide and mentor the management team in his new role.

Speaker #1: And as noted in our press release, Shock Mitra and Ron Havner have purchased $25 million and $5 million, respectively, of out-of-the-money, 10-year options with a six-year lockout.

Joe Russell: As noted in our press release, Shankh Mitra and Ron Havner have purchased $25 million and $5 million, respectively, of out-of-the-money, 10-year options with a 6-year lockout, demonstrating their commitment and confidence of what PS 4.0 will deliver to shareholders. Now let's go to page 4 of the earnings presentation and briefly step back to reflect on our financial performance and highlight how we've built the platform to drive value. From 2023 to 2025, Public Storage has led the sector in same-store revenue growth, NOI growth, and NOI margins. Our core FFO per share growth leads the sector, and our total shareholder returns of 18.6% outperformed our peers over that timeframe. Over the last five years, we've built a platform designed to win.

Speaker #1: Demonstrating their commitment and confidence in what PS 4.0 will deliver to shareholders. Now, let's go to page 4 of the earnings presentation and briefly step back to reflect on our financial performance and highlight how we've built the platform to drive value.

Speaker #1: From 2023 to 2025, Public Storage has led the sector in same-store revenue growth, NOI growth, and NOI margins. Our core FFO per share growth leads the sector.

Speaker #1: And our total shareholder returns of 18.6% outperformed our peers over that time frame. Over the last five years, we've built a platform designed to win.

Speaker #1: Here are a few significant accomplishments. First, deployment of the most robust omnichannel digital ecosystem in the industry. Over 85% of our customers are engaged with us using self-help tools, and we're infusing AI to optimize conversion and cost.

Joe Russell: Here are a few significant accomplishments: First, deployment of the most robust omni-channel digital ecosystem in the industry, where over 85% of our customers engage with us using self-help tools, and we're infusing AI to optimize conversion and cost. Second, completion of the Property of Tomorrow program, a $600 million investment to rebrand and modernize all 3,400+ properties, with solar on nearly half of the portfolio by the end of 2026. Third, executing accretive growth at scale. We've invested over $12 billion, expanding our portfolio by 763 assets, which are delivering outsized growth with more to come in the future. Fourth, inspiring the team through our winning culture, and also being named Best Place to Work for four consecutive years. I'm proud of what we've built, and I'm even more excited about what's next.

Speaker #1: Second, completion of the Property of Tomorrow program—a $600 million investment to rebrand and modernize all 3,400-plus properties, with solar on nearly half of the portfolio by the end of 2026.

Speaker #1: Third, executing creative growth at scale. We've invested over $12 billion expanding our portfolio by 763 assets, which are delivering outsized growth, with more to come in the future.

Speaker #1: And fourth, inspiring the team through our winning culture, and also being named Best Place to Work for four consecutive years. I'm proud of what we've built.

Speaker #1: And I'm even more excited about what's next. On a personal note, as I retire from Public Storage, I want to thank the investor and analyst community for the opportunity to work with you over the last decade.

Joe Russell: On a personal note, as I retire from Public Storage, I want to thank the investor and analyst community for the opportunity to work with you over the last decade. I've enjoyed our relationship and the healthy respect we've developed. I've lived by a philosophy of telling it like it is, and I know Tom and the team will continue to communicate with you under that same doctrine. And to my Public Storage colleagues, thank you for the tenacity, fellowship, and commitment to success. Public Storage has a strong and vibrant culture and has always been a team of winners. I've been humbled to lead you over the last 10 years. I could not be more excited to hand the reins over to Tom and the team and cheer them on as they take Public Storage into its next era. Now I'll pass the call over to Tom.

Speaker #1: I've enjoyed our relationships and the healthy respect we've developed. I've lived by a philosophy of telling it like it is, and I know Tom and the team will continue to communicate with you under that same doctrine.

Speaker #1: And to my Public Storage colleagues, thank you for the tenacity, fellowship, and commitment to success. Public Storage has a strong and vibrant culture and has always been a team of winners.

Speaker #1: I've been humbled to lead you over the last 10 years. I could not be more excited to hand the reins over to Tom and the team and cheer them on as they take Public Storage into its next era.

Speaker #1: Now, I'll pass the call over to Tom.

Speaker #2: Thank you, Joe. I'm incredibly humbled and grateful for this opportunity to lead Public Storage forward. Joe, to you and the entire Board of Trustees, thank you for the trust you've placed in me.

Tom Boyle: Thank you, Joe. I'm incredibly humbled and grateful for this opportunity to lead Public Storage forward. Joe, to you and the entire board of trustees, thank you for the trust you've placed in me. I'm energized about the next era. And Joe, on behalf of the entire Public Storage team, thank you for a decade of exceptional leadership. Your accomplishments resulted in sector-leading total shareholder returns over the past 1, 3, and 5 years. But beyond the numbers, your personal impact on the team, from property managers, corporate teams in Dallas and Glendale, inspired us to be our best through every challenge and opportunity. Thank you for your mentorship. I also want to recognize Ron Havner and John Reyes at the board level. The three of you have built a tremendous foundation for what's next.

Speaker #2: I'm energized about the next era. And Joe, on behalf of the entire Public Storage team, thank you for a decade of exceptional leadership. Your accomplishments resulted in sector-leading total shareholder returns over the past 1, 3, and 5 years.

Speaker #2: But beyond the numbers, your personal impact on the team—from property managers to corporate teams in Dallas and Glendale—inspired us to be our best through every challenge and opportunity.

Speaker #2: Thank you for your mentorship. I also want to recognize Ron Havner and John Reyes at the board level. The three of you have built a tremendous foundation for what's next.

Speaker #2: Now on page 5, let's talk about where the industry is headed—and where we're headed. The pandemic created noise, but the signal was clear.

Tom Boyle: Now, on page 5, let's talk about where the industry is headed and where we're headed. The pandemic created noise, but the signal is clear. Self-storage adoption has increased over the last decade. Generation Z, millennials, and the 65-plus cohort are all participating. Today, 10% of the US population uses storage, and that trajectory is building. Storage is an affordable space solution in a high cost of living environment. Competitive supply is slowing as new development becomes harder and more expensive. While we haven't yet seen a national inflection point on rents, momentum is building in our strongest markets. The trends are there. The self-storage industry also remains highly fragmented. Generational transitions and continued institutionalization of ownership will create more trading activity from here on.

Speaker #2: Self-storage adoption has increased over the last decade. Generation Z, millennials, and the 65-plus cohort are all participating. Today, 10% of the U.S. population uses storage, and that trajectory is building.

Speaker #2: Storage is an affordable space solution in a high cost-of-living environment. Competitive supply is slowing as new development becomes harder and more expensive. And while we haven't yet seen a national inflection point on rents, momentum is building in our strongest markets.

Speaker #2: The trends are there. The self-storage industry also remains highly fragmented. Generational transitions and continued institutionalization of ownership will create more trading activity from here on.

Speaker #2: Industry fundamentals have been some of the best in real estate longer term. And while they haven't been exciting for a few years, we're not waiting around.

Tom Boyle: Industry fundamentals have been some of the best in real estate longer term, and while they haven't been exciting for a few years, we're not waiting around. We're building the team and the platform for the future today. Moving to page six, we're unveiling PS 4.0, the fourth era of Public Storage leadership, 53 years from our founding by industry visionary, Wayne Hughes. This is a generational transition and a strategic vision designed to drive accelerated performance. As Joe said, our objective is simple: build the best team to attack the opportunity ahead, and we have. We have new leaders joining the effort. Joe Fisher, President and CFO, here with us today, most recently with UDR. Aayush Basu, Chief Revenue and Marketing Officer, most recently with Boston Consulting Group. Gwen Montgomery, Chief Human Resources Officer, most recently with Gates Corporation. And we have leaders stepping up.

Speaker #2: We're building the team and the platform for the future today. Moving to page 6, we're unveiling PS 4.0—the fourth era of Public Storage leadership.

Speaker #2: Fifty-three years from our founding by industry visionary Wayne Hughes, this is a generational transition and a strategic vision designed to drive accelerated performance. As Joe said, our objective is simple.

Speaker #2: Build the best team to attack the opportunity ahead. And we have. We have new leaders joining the effort—Joe Fisher, President and CFO, here with us today, most recently with UDR.

Speaker #2: Ayash Basu, Chief Revenue and Marketing Officer, most recently with Boston Consulting Group. Gwen Montgomery, Chief Human Resources Officer, most recently with Gates Corporate. And we have leaders stepping up.

Speaker #2: Natalia Johnson, promoted to President, Chief Digital and Transformation Officer. Chris Sambar, promoted to President, and Paul Spittel, who's stepping up to head our acquisitions efforts.

Tom Boyle: Natalia Johnson, promoted to President, Chief Digital and Transformation Officer. Chris Sambar, promoted to President and Chief Operating Officer, and Paul Spittle, who's stepping up to head our acquisitions efforts. We've brought in diverse perspectives from multifamily, consulting, manufacturing, and telecommunications. This complements our multifaceted and experienced leaders in every part of the company, with proven capabilities that have driven our outperformance over the last several years. We've also shifted our headquarters to Frisco, Texas, where our largest corporate presence is today, and with our LA team relocating to a new long-term office space. I'm delighted to lead this premier team into the next era. On the next slide, our strategic vision rests on three core pillars: PS Next, our value creation engine, and Own It Culture, which will collectively drive performance for our shareholders.

Speaker #2: We've brought in diverse perspectives from multifamily, consulting, manufacturing, and telecommunications. This complements our multifaceted and experienced leaders in every part of the company, with proven capabilities that have driven our outperformance over the last several years.

Speaker #2: We've also shifted our headquarters to Frisco, Texas, where our largest corporate presence is today, and with our LA team relocating to a new long-term office space.

Speaker #2: I'm delighted to lead this premier team into the next era. On the next slide, our strategic vision rests on three core pillars: PS Next, our value creation engine, and Own It culture.

Speaker #2: Which will collectively drive performance for our shareholders. First is the launch of the PS Next operating platform, to meet the customer where they're going.

Tom Boyle: First is the launch of the PS Next operating platform to meet the customer where they're going. Today's customer expects a fast, seamless, and quality experience, which will rapidly evolve, with AI playing an important part of all customer journeys. PS Next combines the industry's leading own property portfolio with the only scaled, omni-channel, digital-first platform, advanced data science, and exceptional property managers and care center agents. Customers demand more from the brands they do business with today. Not only a core, reliable in-store experience, which we enhance with our Property of Tomorrow program, but also the digital and AI-led interactions of the future. We commit to innovate, to meet, and exceed those expectations across both the customer experience and the operational delivery of that experience. Customer obsession is critical. PS Next will drive both revenues and expenses, building on our margin leadership. Our third-party management platform benefits, too.

Speaker #2: Today's customer expects a fast, seamless, and quality experience, which will rapidly evolve with AI playing an important part in all customer journeys. PS Next combines the industry's leading owned property portfolio with the only scaled, omnichannel, digital-first platform.

Speaker #2: Advanced data science and exceptional property managers and care center agents. Customers demand more from the brands they do business with today—not only a core, reliable in-store experience, which we enhance with our Property of Tomorrow program, but also the digital and AI-led interactions of the future.

Speaker #2: We commit to innovate to meet and exceed those expectations across both the customer experience and the operational delivery of that experience. Customer obsession is critical.

Speaker #2: PS Next will drive both revenues and expenses, building on our margin leadership. Our third-party management platform benefits too. The target result is organic growth acceleration.

Tom Boyle: The target result is organic growth acceleration. The second pillar, the value creation engine, captures the external growth opportunity. Building on PS Next operational leadership is a critical component for value creation, capital allocation. With PSA's capital resources and costs, we have a capital opportunity each and every year. I've grown increasingly passionate and energized about this opportunity over my time at Public Storage, leading to my expanded role several years ago as Chief Investment Officer. We will allocate our capital resources to, 1, improve our portfolio, 2, accelerate our per share earnings and cash flow, and 3, compound our returns. My vision of our value creation engine is not just about doing more, given our capital resources, but also better across our acquisitions, development, expansions, and lending investments. These four value creators will differentiate our return profile by fueling our non-same store growth.

Speaker #2: The second pillar is the value creation engine, which captures the external growth opportunity. Building on PS Next, operational leadership is a critical component for value creation.

Speaker #2: Capital allocation. With PSA's capital resources and costs, we have a capital opportunity each and every year. I've grown increasingly passionate and energized about this opportunity over my time at Public Storage.

Speaker #2: Leading to my expanded role several years ago as Chief Investment Officer. We will allocate our capital resources to, one, improve our portfolio; two, accelerate our per-share earnings and cash flow.

Speaker #2: And three, compound our returns. My vision of our value creation engine is not just about doing more given our capital resources, but also better.

Speaker #2: Across our acquisitions, development, expansions, and lending investments, these four value creators will differentiate our return profile by fueling our non-same-store growth. Assets that are placed into the PS Next operating platform will earn more cash flow than others in the industry.

Tom Boyle: Assets that are placed into the PS Next operating platform will earn more cash flow than others in the industry. Data science will lead our underwriting and targeting, leveraging the industry's largest data sets to enhance portfolio composition. Scale advantages compound as we reinforce PS Next and drive earnings growth. And lastly, the industry's best balance sheet is a competitive advantage and prepared to support it all. We have significant capacity paired with a differentiator, $600 million of retained cash flow that's growing and will help us execute our strategy. We're investing in this value creation engine. We're growing deal teams, streamlining processes, and infusing data science to increase the speed of execution.

Speaker #2: Data science will lead our underwriting and targeting, leveraging the industry's largest data sets to enhance portfolio composition. Scale advantages compound as we reinforce PS Next and drive earnings growth.

Speaker #2: And lastly, the industry's best balance sheet is a competitive advantage and prepared to support it all. We have significant capacity paired with a differentiator—$600 million of retained cash flow that's growing and will help us execute our strategy.

Speaker #2: We're investing in this value creation engine. We're growing deal teams, streamlining processes, and infusing data science to increase the speed of execution. We've been active over the last several years amidst a slower transaction market industry-wide.

Tom Boyle: We've been active over the last several years amidst a slower transaction market industry-wide. The transaction market is poised to accelerate from here, driven by those generational sales and institutionalization, setting the table for our value creation opportunity. The target result is accretive portfolio growth. The third pillar is what I call the own it culture. As a leadership team, we're enhancing our strong culture that's been built over the past 53 years. With an infusion of new talent and perspectives complementing our strong team, we are raising the bar for performance. We will empower with accountability, and I've been working with Shankh on redesigning our incentives, given their power as we launch our new era at Public Storage. With Shankh and the board, we have redesigned our NEO incentive program for 2026, with a focus on per share and total return outperformance.

Speaker #2: The transaction market is poised to accelerate from here, driven by those generational sales and institutionalization, setting the table for our value creation opportunity. The target result is accretive portfolio growth.

Speaker #2: The third pillar is what I call the Own It culture. As a leadership team, we're enhancing our strong culture that's been built over the past 53 years.

Speaker #2: With an infusion of new talent and perspectives complementing our strong team, we are raising the bar for performance. We will empower with accountability. And I've been working with Shonk on redesigning our incentives, given their power as we launch our new era at Public Storage.

Speaker #2: With Shonk and the Board, we have redesigned our NEO incentive program for 2026, with a focus on per-share and total return outperformance. And now, with the launch, we have the opportunity to rethink the incentive structures throughout the organization.

Tom Boyle: Now, with the launch, we have the opportunity to rethink the incentive structures throughout the organization, to get the incentives right. Meaningful incentives, not based on marginal improvements or tweaks, but on the same per-share earnings growth and total return for alignment across the teams. Our goal is clear: We will win or lose as a team. The target is more energy, urgency, and engagement, driving results for our shareholders. We're just getting started. PS 4.0 is about customer obsession, strong capital allocation, with a focus on per-share earnings and cash flow growth. Over the coming year, you'll see these initiatives come to life as we showcase these pillars. Now I'd like to turn over the call to Joe Fisher for his first Public Storage earnings call. Joe, welcome to the team.

Speaker #2: To get the incentives right—meaningful incentives, not based on marginal improvements or tweaks, but on the same per-share earnings growth and total return for alignment across the teams.

Speaker #2: Our goal is clear. We will win or lose as a team. The target is more energy, urgency, and engagement driving results for our shareholders.

Speaker #2: We're just getting started. PS 4.0 is about customer obsession, strong capital allocation, with a focus on per-share earnings and cash flow growth. Over the coming year, you'll see these initiatives come to life.

Speaker #2: As we showcase these pillars, now I'd like to turn over the call to Joe Fisher for his first Public Storage earnings call. Joe, welcome to the team.

Speaker #3: Thank you, Tom. And good morning, everyone. I want to start by saying how excited I am to be here. I've known and followed Public Storage for the last 20 years of my career, and I've known many of you and members of this team for much of that time.

Joe Fisher: Thank you, Tom, and good morning, everyone. I wanna start by saying how excited I am to be here. I've known and followed Public Storage for the last 20 years of my career, and I've known many of you and members of this team for much of that time. I wanna first thank Joe Russell, Tom Boyle, Shankh Mitra, Ron Havner, and the entire PS team and board for the opportunity to join this great company. It was clear from our initial discussions last September, that the vision and strategy we are unveiling here today was something I wanted to be a part of. Over the past several months, I've spent substantial time with the teams in Dallas and Glendale and on-site at properties, getting up to speed. What I've witnessed is a team full of talented, dedicated, A players with a will to win.

Speaker #3: I want to first thank Joe Russell, Tom Boyle, Shonk Mitra, Ron Havner, and the entire PS team and board for the opportunity to join this great company.

Speaker #3: It was clear from our initial discussions last September that the vision and strategy we are unveiling here today was something I wanted to be a part of.

Speaker #3: Over the past several months, I've spent substantial time with the teams in Dallas and Glendale, and on-site at properties, getting up to speed. What I've witnessed is a team full of talented, dedicated A-players, with a will to win.

Speaker #3: There's a clear excitement for PS 4.0 and a shared commitment to drive performance for our stakeholders through our three key pillars. Now, let's get into the results on slide 8.

Joe Fisher: There's a clear excitement for PS 4.0, and a shared commitment to drive performance for our stakeholders through our three key pillars. Now, let's get into the results on slide 8. First, you'll notice we've made several enhancements to our press release and supplemental. As always, we're seeking to be best in class in all areas of our business, and we welcome your feedback. Core FFO in the quarter was $4.26 per share, resulting in full-year Core FFO of $16.97 per share, at the high end of our guidance range. Same-store revenue and NOI growth in the quarter were -0.2% and -1.5%, respectively. Declines in move-in rents were offset by strong existing customer performance, resulting in in-place rents up 20 basis points and occupancy down 20 basis points.

Speaker #3: First, you'll notice we've made several enhancements to our press release and supplemental. As always, we're seeking to be best in class in all areas of our business, and we welcome your feedback.

Speaker #3: Core FFO in the quarter was $4.26 per share, resulting in full-year core FFO of $16.97 per share, at the high end of our guidance range.

Speaker #3: Same-store revenue and NOI growth in the quarter were minus 0.2% and minus 1.5%, respectively. Declines in move-in rents were offset by strong existing customer performance, resulting in in-place rents up 20 basis points and occupancy down 20 basis points.

Speaker #3: We're confident in our team's ability to continue driving outperformance and revenue growth, just as we have in recent years. I've been incredibly impressed by the sophistication of our revenue platform and the intersection of pricing, data analytics, machine learning, AI, marketing, and customer experience.

Joe Fisher: We're confident in our team's ability to continue driving outperformance and revenue growth, just as we have in recent years. I've been incredibly impressed by the sophistication of our revenue platform and the intersection of pricing, data analytics, machine learning, AI, marketing, customer experience, and I'm excited to see where Aayush and the team will take it next. Expense growth was contained for the year, with Q4 at 4.2%. Property tax growth was offset by continued benefits from payroll optimization, utilities, and marketing. Outside the same-store pool, NOI growth of 20% in our non-same store pool helped drive core FFO per share higher by 1.2% year over year. This is a critical area of our value creation engine and our ability to drive core FFO performance well in excess of our stabilized same-store growth.

Speaker #3: And I'm excited to see where Ayash and the team will take it next. Expense growth was contained for the year, with Q4 at 4.2%.

Speaker #3: Property tax growth was offset by continued benefits from payroll optimization, utilities, and marketing. Outside the same store pool, NOI growth of 20% in our non-same store pool helped drive core FFO per share higher by 1.2% year over year.

Speaker #3: This is a critical area of our value creation engine and our ability to drive core FFO performance well in excess of our stabilized same-store growth.

Speaker #3: It's also worth noting, if we utilized a same-store definition similar to our peers, 2025 NOI growth would have been positive 0.2% instead of the negative 0.5% reported.

Joe Fisher: It's also worth noting, if we utilized a same-store definition similar to our peers, 2025 NOI growth would have been positive 0.2% instead of the negative 0.5% reported. On to transactions. During the quarter, we acquired $131 million of accretive new acquisitions that will drive growth through our industry-leading PS Next operating platform. This brings our 2025 total to $953 million, with deployment diverse across size, geography, and seller type at stabilized yields in the high sixes. On the development and expansion front, we had openings of $409 million during the year. We ended the year with a total development pipeline of $610 million... with stabilized yields targeting 8% and remaining amounts unfunded of $416 million.

Speaker #3: On to transactions. During the quarter, we acquired $131 million of accretive new acquisitions that will drive growth through our industry-leading PS Next operating platform.

Speaker #3: This brings our 2025 total to $953 million, with deployment diverse across size, geography, and seller type, at stabilized yields in the high sixes.

Speaker #3: On the development and expansion front, we had openings of $409 million during the year; we ended the year with a total development pipeline of $610 million, with stabilized yields targeting 8%, and remaining amounts unfunded of $416 million.

Speaker #3: Our lending platform continues to grow. With $131 million deployed in 2025, bringing our total outstanding lending business to $142 million at a current rate of approximately 7.9%.

Joe Fisher: Our lending platform continues to grow, with $131 million deployed in 2025, bringing our total outstanding lending business to $142 million at a current rate of approximately 7.9%. Lastly, our fortress balance sheet remains an excellent position from both a metric and liquidity perspective. At quarter end, we had available liquidity of $1.8 billion between our line of credit and cash on hand, plus approximately $600 million per year of annual free cash flow. Our balance sheet remains one of the strongest in the REIT sector, with debt plus preferred equity to EBITDA at 4.2x, and debt plus preferred equity to enterprise value in the low 20% range. Moving on to guidance on slide 9.

Speaker #3: Lastly, our fortress balance sheet remains in excellent position from both a metric and liquidity perspective. At quarter end, we had available liquidity of $1.8 billion between our line of credit and cash on hand.

Speaker #3: Plus approximately $600 million per year of annual free cash flow. Our balance sheet remains one of the strongest in the REIT sector, with debt plus preferred equity to EBITDA at 4.2 times, and debt plus preferred equity to enterprise value in the low 20% range.

Speaker #3: Moving on to guidance on slide 9. We've established an initial core FFO range of $16.35 to $17.00, resulting in a midpoint of $16.68 and a year-over-year decline of 1.7%.

Joe Fisher: We've established an initial Core FFO range of $16.35 to $17, resulting in a midpoint of $16.68, and a year-over-year decline of 1.7%. Negative same-store NOI growth and refinancing activity is being offset by positive contributions from our non-same store pool and our tenant insurance program. From an economic backdrop perspective, we expect 2026 to look slightly better than 2025, consistent with consensus expectations. Same-store revenue and NOI guidance are -1.1% and -2.2% at the midpoint, respectively. We believe occupancy for the year will remain roughly stable. Move-in rents will remain negative in the mid-single digits for the year, but will improve throughout the year, and our ECRI contribution will continue to help support total revenue.

Speaker #3: Negative same-store NOI growth and refinancing activity is being offset by positive contributions from our non-same-store pool and our tenant insurance program. From an economic backdrop perspective, we expect 2026 to look slightly better than 2025, consistent with consensus expectations.

Speaker #3: Same-store revenue and NOI guidance are minus 1.1% and minus 2.2% at the midpoint, respectively. We believe occupancy for the year will remain roughly stable.

Speaker #3: Move-in rents will remain negative in the mid-single digits for the year, but will improve throughout the year, and our ECRI contribution will continue to help support total revenue.

Speaker #3: Specific to Los Angeles, we've guided to the state of emergency staying in place for all of 2026, resulting in a drag on same-store revenue of approximately 80 basis points.

Joe Fisher: Specific to Los Angeles, we've guided to the state of emergency, staying in place for all of 2026, resulting in a drag on same-store revenue of approximately 80 basis points. With good demand and limited supply, it is a matter of when, not if, LA returns to strong outperformance down the road. To attain the high end of guidance, we would need to see the state of emergency end sooner, and for occupancy, new move-in rates, and ECRIs all to perform slightly better. The inverse would take us to the low end. Expense growth is expected to remain constrained again in 2026, with mid-single digit property tax growth being offset by expense constraining initiatives in personnel and R&M. In addition, our non-same-store NOI is once again expected to be a significant contributor with year-over-year growth of 16%, before factoring in future transaction activity.

Speaker #3: With good demand and limited supply, it is a matter of when, not if, L.A. returns to strong outperformance down the road. To attain the high end of guidance, we would need to see the state of emergency end sooner and for occupancy, new move-in rates, and ECRIs all to perform slightly better.

Speaker #3: The inverse would take us to the low end. Expense growth is expected to remain constrained again in 2026, with mid-single-digit property tax growth being offset by expense-constraining initiatives in personnel and R&M.

Speaker #3: In addition, our non-same store NOI is once again expected to be a significant contributor, with year-over-year growth of 16%, before factoring in future transaction activity.

Speaker #3: We also continue to drive cash flow growth in areas beyond property operations, including our tenant insurance business and third-party property management platform. From a capital perspective, we expect to remain active in driving future FFO accretion through our various capital deployment levers. We have substantial amounts of free cash flow and debt capacity; however, we have not factored in additional acquisitions or lending into our guidance at this time.

Joe Fisher: We also continue to drive cash flow growth in areas beyond property operations, including our tenant insurance business and third-party property management platform. From a capital perspective, we expect to remain active in driving future FFO accretion through our various capital deployment levers. We have substantial amounts of free cash flow and debt capacity. However, we have not factored in additional acquisitions or lending into our guidance at this time. With that, I'd like to turn the call back over to Tom for some closing remarks.

Speaker #3: With that, I'd like to turn the call back over to Tom for some closing remarks.

Speaker #1: Thanks, Joe. Let me close with: storage has never been stronger. Our target is clear—elevated customer experience, strong capital allocation, a winning culture, and compounding shareholder outperformance.

Tom Boyle: Thanks, Joe. Let me close with this. The opportunity ahead for Public Storage has never been stronger. Our target is clear: elevated customer experience, strong capital allocation, a winning culture, and compounding shareholder outperformance. I'm energized by the team and the platform we're building. This is PS 4.0. With that, let's open it up for questions.

Speaker #1: I'm energized by the team and the platform we're building. This is PS 4.0. With that, let's open it up for questions.

Speaker #3: Thank you. If you'd like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue.

Operator: Thank you. If you'd like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you'd like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. To allow for as many questions as possible, we ask that you each keep to one question and one follow-up. Our first question comes from the line of Eric Wolfe with Citi. Please proceed with your question.

Speaker #3: You may press star 2 if you'd like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset.

Speaker #3: Before pressing the star keys, to allow for as many questions as possible, we ask that you each keep to one question and one follow-up.

Speaker #3: Our first question comes from the line of Eric Wolf with Citi. Please proceed with your question.

Speaker #4: Thanks. It's Nick here with Eric. So I guess just asking about capturing the external growth opportunity—you talked about allocating capital aggressively and intelligently.

Smedes Rose: Thanks. It's Nick Joseph here with Eric. So I guess just asking about capturing the external growth opportunity. You talked about allocating capital aggressively and intelligently. What are the greatest near-term opportunities you're seeing, you know, is it one-off assets, smaller portfolios, I guess, larger M&A, international, you know, and how's that different based on PSA 4.0 than what you were seeing previously?

Nick Joseph: Thanks. It's Nick Joseph here with Eric. So I guess just asking about capturing the external growth opportunity. You talked about allocating capital aggressively and intelligently. What are the greatest near-term opportunities you're seeing, you know, is it one-off assets, smaller portfolios, I guess, larger M&A, international, you know, and how's that different based on PSA 4.0 than what you were seeing previously?

Speaker #4: What are the greatest near-term opportunities you're seeing? Is it one-off assets, smaller portfolios, or maybe larger M&A, international? And how is that different based on PSA 4.0 than what you were seeing previously?

Speaker #1: Yeah, sure, Nick. This is Tom. I think there's a couple of components there. One, we were encouraged by what we saw through 2025 in terms of the breadth and variation of seller type, as well as size of activity.

Tom Boyle: Yeah, sure, Nick, this is Tom. I think there's a couple components there. One, we were encouraged by what we saw through 2025 in terms of the breadth, and variation of seller type, as well as size of activity. So we had a good number of single and double type opportunities, which are really the bread and butter of the industry, and we continue to try to capture, as well as small and medium-sized portfolios. We underwrote a lot. We probably underwrote $7 billion of real estate last year, ultimately transacted on about $1 billion of that. The majority of what we underwrote did not trade, and so there continues to be active dialogue amongst larger portfolios and a breadth of different seller types as we move into 2026.

Speaker #1: So, we had a good number of single and double-type opportunities, which are really the bread and butter of the industry, and we continue to try to capture those, as well as small and medium-sized portfolios.

Speaker #1: We underwrote a lot, and we probably underwrote $7 billion of real estate last year, ultimately transacting on about $1 billion of that. The majority of what we underwrote did not trade.

Speaker #1: And so there continues to be active dialogue amongst larger portfolios and a breadth of different seller types as we move into 2026. And as we think about—you also highlighted international—that's an area, certainly, we spent some time on last year and continue to spend time on going forward as well.

Tom Boyle: You know, as we think about, you also highlighted international. That's an area certainly we spent some time on last year and continue to spend time on going forward as well. So a broad set of opportunities and one that we think is building from here into 2026. In terms of what's different as we head into PS 4.0, there's a number of things that I just highlighted that are important to note. It's not just about capturing the opportunity and growing more. As I said, it's about how do we fine-tune and get better. So we're investing in the team.

Speaker #1: So, a broad set of opportunities, and one that we think is building from here into 2026. In terms of what's different as we head into PS 4.0, there are a number of things that I just highlighted that are important to note.

Speaker #1: It's not just about capturing the opportunity and growing more, as I said—it's about how do we fine-tune and get better. So, we're investing in the team. Our data science team has done tremendous work with our revenue management and marketing team over the last several years, and we're spending more time with them now and going forward on capital allocation as we think about targeting sites and underwriting, streamlining our processes, and looking to take advantage of the industry's largest data set that we have at our disposal.

Tom Boyle: You know, our data science team has done tremendous work with our revenue management and marketing team over the last several years, and we're spending more time with them now and going forward on capital allocation as we think about targeting sites and underwriting, streamlining our processes, and looking to take advantage of the industry's largest data set that we have at our disposal. So, all of those things will set us up to be a better buyer and enhance our reputation in the industry, and we look forward to taking advantage of that and deploying capital. You know, the last piece you didn't ask about, but I'd highlight, is just to reinforce the balance sheet opportunity that we have.

Speaker #1: So, all of those things will set us up to be a better buyer and enhance our reputation in the industry. And we look forward to taking advantage of that and deploying capital.

Speaker #1: The last piece you didn't ask about, but I'd highlight, is just to reinforce the balance sheet opportunity that we have. The company has competitive advantages across the balance sheet, as well as retained cash flow, which means we have a capital opportunity every year.

Tom Boyle: You know, the company has competitive advantages across the balance sheet, as well as retained cash flow, which means we have a capital opportunity every year, and one that we wanna maximize.

Speaker #1: And one that we want to maximize.

Speaker #4: Thanks, Seth. That's helpful. This is actually Eric—sorry to keep switching analysts on you—but you mentioned in your prepared remarks that momentum was building in your markets.

[Analyst] (Citi): Thanks. That's helpful. This is actually Eric. Sorry to keep switching analysts on you, but you mentioned in your prepared remarks that momentum was building in your markets. But it does look like your same-store revenue guidance, excluding LA, so putting LA aside, it looks like things are expected to get a little bit worse from current levels. So could you just talk about, you know, what you expect from same-store revenue growth, you know, again, putting LA aside, just for the other 85%, and what do you expect the cadence of that same-store revenue growth to be throughout the year?

Eric Wolfe: Thanks. That's helpful. This is actually Eric. Sorry to keep switching analysts on you, but you mentioned in your prepared remarks that momentum was building in your markets. But it does look like your same-store revenue guidance, excluding LA, so putting LA aside, it looks like things are expected to get a little bit worse from current levels. So could you just talk about, you know, what you expect from same-store revenue growth, you know, again, putting LA aside, just for the other 85%, and what do you expect the cadence of that same-store revenue growth to be throughout the year?

Speaker #4: But it does look like your same store revenue guidance, excluding L.A.—so putting L.A. aside—it looks like things are expected to get a little bit worse from current levels.

Speaker #4: So, could you just talk about what you expect from same-store revenue growth? Again, putting L.A. aside, just for the other 85%, what do you expect the cadence of that same-store revenue growth to be throughout the year?

Speaker #5: Hey, Eric. It's Joe. So as you guys all know, year-over-year revenue is a backward-looking indicator. And so that minus 30 bps or so, when you back into what the rest of the same store pool would be doing excluding L.A., is really a byproduct of what's been taking place more recently—not necessarily the forward indicators that will drive revenue growth into the future.

Joe Fisher: Hey, Eric, it's Joe. So as you guys all know, year-over-year revenue is a backward-looking indicator, and so that minus 30 bips or so, when you back into what the rest of the same-store pool would be doing, excluding LA, is really a byproduct of what's been taking place more recently, not necessarily the forward indicators that will drive revenue growth into the future. So as we start to pull in the fourth quarter results, which did have a little bit more challenged new move-in environment, although I'd point out that occupancy at year-end did pick up, we do still expect new move-ins to be kind of the worst of 2026 here in the first quarter, although we are seeing improvement relative to fourth quarter.

Speaker #5: So as we start to pull in the fourth quarter results, which did have a little bit more challenged new moving environment—although I'd point out that occupancy at year-end did pick up.

Speaker #5: We do still expect new move-ins to become the worst of 2026 here in the first quarter, although we are seeing improvement relative to the fourth quarter.

Speaker #5: And so, we do think we're going to see a little bit of pressure on year-over-year revenue as we move into the middle of the year.

Joe Fisher: So we do think we're gonna see a little bit of pressure on year-over-year revenue as we move into the middle of the year, from a lagged perspective. The piece that we're excited about is how we think about the exit velocity and what we're seeing kinda underneath the hood as a forward indicator. So occupancy for the year, we expect, will be relatively static. You know, we continue to see really good customer activity in terms of pricing power, length of stay, and retention. And then new move-ins, we do forecast that we're down mid-single digits for the year.

Speaker #5: From a lagged perspective, the piece that we're excited about is how we think about the exit velocity and what we're seeing kind of underneath the hood as a forward indicator.

Speaker #5: So occupancy for the year, we expect, will be relatively static. We continue to see really good existing customer activity in terms of pricing power, length of stay, and retention.

Speaker #5: And then, new move-ins—we do forecast that, while down mid-single digits for the year, we’re going to start low and continue to lift throughout the year.

Joe Fisher: We're gonna start low and continue to lift throughout the year, and that's really driven by our view of a little bit of improvement on the macro environment, you know, what we're seeing with existing customers as well as those coming in the funnel, and then, of course, supply decreasing throughout the year. So we do expect that year-over-year revenue starts to improve probably by the Q4 of next year, or this year, rather.

Speaker #5: And that's really driven by our view of a little bit of improvement on the macro environment—what we're seeing with existing customers, as well as those coming in the funnel, and then, of course, supply decreasing throughout the year.

Speaker #5: So, we do expect that year-over-year revenue starts to improve probably by the fourth quarter of next year. Or this year, rather.

Speaker #1: Yeah, and Eric, maybe just to add to that, my comments earlier around momentum building—we've been highlighting for some time the strength in some of the markets, be it West Coast, Midwest, Northeast—that continue to show good trends there.

Tom Boyle: Yeah, and Eric, maybe just to add to that, you know, my comments earlier around, you know, momentum building. You know, we've been highlighting for some time, you know, the strength in some of the markets, be it West Coast, Midwest, Northeast, that continue to show good trends there, and you can obviously see that evidence in Q4 performance as well. But I think, you know, big picture, as we sit here today, we're focused on not knowing exactly which quarter things are going to move around. Obviously, we gave you a range of estimates. The focus is on what is it we can do now with the platform and the team to set us up for success moving forward? And obviously, that's the focus of PS 4.0, and where we're headed from here.

Speaker #1: And you can obviously see that evidence in fourth quarter performance as well. But I think, big picture, as we sit here today, we're focused on not knowing exactly which quarter things are going to move around.

Speaker #1: Obviously, we gave you a range of estimates. The focus is on what it is we can do now with the platform and the team to set us up for success moving forward.

Speaker #1: And obviously, that's the focus of PS 4.0, and where we're headed from here.

Speaker #4: Got it. Thank you.

[Analyst] (Citi): Got it. Thank you.

Eric Wolfe: Got it. Thank you.

Speaker #6: Thank you. Our next question comes from Spencer Glimsher with Green Street. Please proceed with your question.

Operator: Thank you. Our next question comes from the line of Spencer Glimcher with Green Street. Please proceed with your question.

Speaker #7: Yeah, thank you. Can you provide an update on move-in rents as far into one queue? And then can you just remind us how your pricing strategy has evolved with the growing use of AI?

Spenser Allaway: Yeah, thank you. Can you provide an update on move-in rents thus far into Q1? And then can you just remind us how your pricing strategy has evolved with the growing use of AI?

Spenser Glimcher: Yeah, thank you. Can you provide an update on move-in rents thus far into Q1? And then can you just remind us how your pricing strategy has evolved with the growing use of AI?

Speaker #1: Yeah, sure, Spencer. Happy to cover that. So, we did have a January that was a healthy one. Move-in rents for January—which I know is one of the things you're getting to—were down 7% in the month of January.

Tom Boyle: Yeah, sure, Spencer. Happy to cover that. So we did have a January that was a healthy one. Move-in rents for January, which is I know one of the things you're getting to, down 7% in the month of January. So sequential improvement as we moved into the month of January. We did experience interesting weather across the country in the month of January, so we had lower move-ins, but also lower move-outs. Occupancy right around where we finished the year on a year-over-year basis, up about 40 basis points over the course of January. So a good start to the year, and the start of and continuation of the trends that we saw through the fourth quarter and speaks to the trends that Joe just highlighted.

Speaker #1: So sequential improvement as we moved into the month of January. We did experience interesting weather across the country in the month of January, so we had lower move-ins, but also lower move-outs.

Speaker #1: Occupancy is right around where we finished the year on a year-over-year basis, up about 40 basis points over the course of January. So, a good start to the year.

Speaker #1: And the start of and continuation of the trends that we saw through the fourth quarter, and speaks to the trends that Joe just highlighted.

Speaker #7: Okay, great. And then, are you able just to comment on the pricing strategy and how often you guys are kind of resetting rents, just with the growing use of your AI platform?

Spenser Allaway: Okay, great. And then, are you able just to comment on the pricing strategy and how often you are kind of resetting rents just with the growing use of your AI platform?

Spenser Glimcher: Okay, great. And then, are you able just to comment on the pricing strategy and how often you are kind of resetting rents just with the growing use of your AI platform?

Speaker #1: Yeah, as I noted earlier, the data science team and revenue management team have been working together for the last several years, and we continue to evolve our processes there.

Tom Boyle: Yeah. As I, as I noted earlier, you know, the data science team and revenue management team have been working together for the last several years, and we continue to evolve our processes there. I just highlighted we, we hired a new leader for that effort, who is getting up to speed, and we're excited about where he and the team are gonna take it from here. But the continued evolution there as we think about attracting the right customers at the top of funnel, being able to understand what we think their length of stays are gonna be and their price elasticities, and then toggling our, our pricing, promotion, advertising, in order to be able to maximize NOI from that customer base as it goes.

Speaker #1: I just highlighted we hired a new leader for that effort who is getting up to speed, and we're excited about where he and the team are going to take it. From there, we think about attracting the right customers at the top of the funnel.

Speaker #1: Being able to understand what we think their length of stays are going to be, and their price elasticities. And then toggling our pricing, promotion, advertising in order to be able to maximize NOI from that customer base as it goes.

Speaker #1: So, continued efforts there, and we're excited about where Ayash and the team are going to take it going forward.

Tom Boyle: Continued efforts there, and we're excited about where Aayush and the team are gonna take it going forward.

Speaker #7: Okay, thank you.

Brandon Reagan: Okay. Thank you.

Speaker #6: Thank you. Our next question comes from the line of Juan Sinabria with BMO Capital Markets. Please proceed with your question.

Operator: Thank you. Our next question comes from the line of Juan, Juan Sanabria with BMO Capital Markets. Please proceed with your question.

Speaker #8: Hi, thanks for the time. Good morning, and congrats to all. Tom and Joe—welcome back, Joe. Just on the 2026 same-store revenue guidance, Joe, you made an allusion to improving it year-end.

Juan Sanabria: Hi. Thanks for your time. Good morning, and congrats to all, Tom and Joe. Welcome back, Joe. Just on the 2026 same-store revenue guidance, Joe, you made an allusion to improving at year-end. Wondering if you could give us a general sense of where you expect to end the year, the Q4 run rate, as we think about kind of the trend, the improving trend throughout the year that is in the forecast?

Speaker #8: Wondering if you could give us a general sense of where you expect to end the year, the fourth quarter run rate as we think about the trend—the improving trend throughout the year—that is in the forecast.

Speaker #4: Yeah, hey, Juan. So, we typically don't go into true quarter-by-quarter guidance. What I would say is, you've kind of grouped the portfolio into a couple of different buckets.

Joe Fisher: Yeah. Hey, Juan. So we typically don't go into true quarter-by-quarter guidance. What I would say is, you've kind of grouped the portfolio into a couple different buckets, and if you look at our coastal markets in combination with some of the Midwest markets, so some of the leaders like Chicago and Minneapolis, you know, that portfolio continues to do really well in terms of ±2% revenue growth through the year. And we do think that lifts a little bit going into the Q4 of next year. When you look at the more supply-challenged markets, so primarily the Sun Belt markets, so Dallas, Atlanta, Florida's, et cetera, that's probably gonna be down a couple percent on same-store revenue throughout the year.

Speaker #4: And if you look at our coastal markets in combination with some of the Midwest markets, so some of the leaders like Chicago and Minneapolis, that portfolio continues to do really well in terms of plus or minus 2% revenue growth through the year.

Speaker #4: And we do think that lifts a little bit going into the fourth quarter of next year. When you look at the more supply-challenged markets—so, primarily, the Sunbelt markets, so Dallas, Atlanta, Florida, etc.—that's probably going to be down a couple of percent on same-store revenue throughout the year.

Speaker #4: But again, we expect that to start to lift as we get into kind of the fourth quarter of this year, just given the fact that we're comping against an easier fourth quarter, as we did have a little bit more challenged new move-ins in the fourth quarter.

Joe Fisher: But again, we expect that to start to lift as we get into kinda Q4 of this year, just given the fact that we're comping against an easier Q4, as we did have a little bit more challenged new move-ins in the Q4, and then given that supply really starts to dissipate as we continue to move throughout the year.

Speaker #4: And then, given that supply really starts to dissipate as we continue to move throughout the year.

Juan Sanabria: Good segue to my next question. Supply, I'm not sure if you saw, but Yardi kinda put out a revised supply stack for this year. For the end of last year and this year. They came to the conclusion that supply actually re-accelerated in the back half of the year. So just curious if that jibes with what you guys are seeing on the ground, and if you could kinda quantify exposure of assets to supply in 2026 versus 2025, or any sort of numbers you can put around supply and, and how you think about it, would be helpful. Thanks.

Speaker #8: Good segue to my next question. Supply—I’m not sure if you saw, but you already kind of put out a revised supply stack for this year, for the end of last year, and this year.

Speaker #8: They came to the conclusion that supply actually re-accelerated in the back half of the year. So just curious if that drives what you guys are seeing on the ground.

Speaker #8: And if you could kind of quantify exposure of assets to supply in '26 versus '25, or any sort of numbers you can put around supply and how you think about it, that would be helpful.

Speaker #8: Thanks.

Tom Boyle: Yeah, Juan. You know, I think we've been more right than wrong on the trajectory, literally over the last four or five years, debating, you know, some of the external tracking data sets out there. I think more often than not, they seem to overemphasize or overplay potential momentum coming into markets. We don't really see a trend or a change in the trajectory that's been going on now for the last four or five years, which is year-by-year decelerated deliveries. So, you know, hard to justify what kind of data they're looking at to say there's a re-acceleration. By all accounts, the development business continues to be quite complicated, quite commanding approval levels, costs, underwriting issues.

Speaker #1: Yeah, Juan, I think we've been more right than wrong on the trajectory literally over the last four or five years, debating some of the external tracking data sets out there.

Speaker #1: I think more often than not, they seem to overemphasize or overplay potential momentum coming into markets. We don't really see a trajectory that's been going on now for the last four or five years, which has year by year decelerated.

Speaker #1: Deliveries—so hard to justify what kind of data they're looking at to say there's a re-acceleration. By all accounts, the development business continues to be quite complicated, quite commanding.

Speaker #1: Approval levels, costs, underwriting, issues. There certainly are a handful of markets that may see supply as they have over the last year or two, but we're not seeing any re-acceleration.

Tom Boyle: There certainly are a handful of markets that may see supply as they have over the last year or two, but we're not seeing any re-acceleration. And, you know, as you know, we have, you know, a very strong team out in the markets nationally. We're being very judicious, and we're putting our own development activity, and we see that as a great tool for us to continue to deploy capital, even under the umbrella of, you know, PS 4.0, that Tom and Joe are talking about.

Speaker #1: And as you know, we have a very strong team out in the markets nationally. We're being very judicious on where we're putting our own development activity.

Speaker #1: And we see that as a great tool for us to continue to deploy capital, even under the umbrella of PS 4.0 that Tom and Joe are talking about.

Speaker #6: Thank you. Our next question comes from the line of Samir Kanal with Bank of America. Please proceed with your question.

Operator: Thank you. Our next question comes from the line of Sameer Kanal with Bank of America. Please proceed with your question.

Speaker #9: Good afternoon, everybody. I guess with the implementation of 4.0 PS Next, which you all have talked about—I mean, what is the long-term profile?

Samir Khanal: Good afternoon, everybody. I guess with the implementation of 4.0 PS Next, which you all have talked about, I mean, what is the long-term profile, so the growth profile of the company, you think, from a same-store NOI or a FFO growth perspective? Thanks.

Speaker #9: So, the growth profile of the company, you think, from a same-store NOI or an FFO growth perspective. Thanks.

Speaker #8: Well, I think you highlighted a couple of different components there. And we can talk more about PS next if you're interested in it. As we think about PS 4.0, in aggregate, the objective is to build on the outperformance that we've been able to put together over the last several years through organic growth.

Tom Boyle: Well, I think you highlighted a couple different components there, and we can talk more about PS Next if you're interested in it. As we think about PS 4.0, in aggregate, you know, the objective is to build on the outperformance that we've been able to put together over the last several years through organic growth, and that is driven by a strong focus on the customer, the customer experience, our leading brand, and then also embracing, you know, continued digitalization and now AI interactions that are gonna be ever more present going forward with between us and our customers, and build on that outperformance as we think about how we deliver that customer experience, so both on the revenue side as well as the expense side, for organic growth outperformance.

Speaker #8: And that is driven by a strong focus on the customer, the customer experience, our leading brand, and then also embracing continued digitalization and now AI interactions that are going to be ever more present going forward between us and our customers.

Speaker #8: And build on that outperformance as we think about how we deliver that customer experience. So both on the revenue side, as well as the expense side, for organic growth outperformance.

Speaker #8: That's then paired with the value creation engine that we're speaking to. And that is an opportunity year in and year out across four different levers as we think about acquisitions, which we just spoke to, Joe just spoke to development, our expansion efforts, as well as our lending platform, which will all be additive to FFO growth.

Tom Boyle: That's then paired with the value creation engine that we're speaking to, and, and that is an opportunity year in and year out across four different levers. So we think about acquisitions, which we just spoke to, Joe just spoke to development, our expansion efforts, as well as our lending platform, which will all be additive to FFO growth. And you've seen that over the last several years with our non-same store performance, with our operating platform being able to achieve more cash flow than when we purchased the property. And so, I'm very encouraged by that opportunity and where we're going, and that will be additive to FFO growth. And then our ancillary businesses, right?

Speaker #8: And you've seen that over the last several years with our non-same store performance, with our operating platform being able to achieve more cash flow than when we purchased the property.

Speaker #8: And so, very encouraged by that opportunity and where we're going. And that will be additive to FFO growth. And then our ancillary businesses, right?

Speaker #8: Some of the things that I just hit on, like lending, for instance, also support our third-party management business and our tenant insurance business, which are also having a healthy growth year this year.

Tom Boyle: You know, some of the things that I just hit on, like lending, for instance, also support our third-party management business and our tenant insurance business, which are also having a healthy growth year this year. So looking to drive organic growth, performance, and outperformance, stronger value creation engine as we look to plug assets into that operating platform and utilize our capital competitive advantages and drive our ancillary businesses, all to a stronger FFO growth profile going forward.

Speaker #8: So, looking to drive organic growth, performance, and outperformance—stronger value creation engine as we look to plug assets into that operating platform and utilize our capital competitive advantages and drive our ancillary businesses, all to a stronger FFO growth profile going forward.

Speaker #9: Got it. And I guess, on the move of the headquarters to Frisco, I guess what's the operational or financial benefit from that? And is there any sort of costs associated with the relocation that we need to think about?

Samir Khanal: Got it. And I guess, on the move of the headquarters to Frisco, I guess, what's the operational or financial benefit from that? And is there any sort of costs associated with sort of the relocation that we need to think about? Thanks.

Speaker #9: Thanks.

Speaker #8: Yeah, so I think a few things to highlight there. One, we've had a presence in both Glendale, as well as in Dallas, for a long time.

Tom Boyle: Yeah. So, I think a few things to highlight there. One, we've had a presence in both Glendale as well as in Dallas for a long time, and we've been growing both offices. But as we moved through the last 5 to 7 years, we oftentimes would open roles in both places, in Dallas as well as Glendale, and oftentimes we would fill those roles in Dallas. So we did see the office increase in size there to the point where today, our office in Dallas is our largest corporate presence, so it makes sense to relocate the corporate headquarters' name tag to that Dallas office. And we're moving into new space there.

Speaker #8: And we've been growing both offices. But as we move through the last five to seven years, we oftentimes would open roles in both places, be it in Dallas as well as Glendale.

Speaker #8: And oftentimes, we would fill those roles in Dallas. So we did see the office increase in size there, to the point where, today, our office in Dallas is our largest corporate presence.

Speaker #8: So it makes sense to relocate the corporate headquarters name tag to that Dallas office. And we're moving into new space there. In addition, as I noted earlier, we're going to be moving into new space in the Glendale area as well.

Tom Boyle: In addition, as I noted earlier, we're gonna be moving into new space in the Glendale area as well, with a long-term commitment to be in that market. So it's about finding the right talent across the country and building the team going forward. And we look forward to strong leadership in both offices going forward.

Speaker #8: With a long-term commitment to be in that market, it's about finding the right talent across the country and building the team going forward.

Speaker #8: And we look forward to strong leadership in both offices going forward.

Speaker #10: Hey, Samir. And just related to the cost question, that is embedded within the corporate transformation costs that the team announced about a year ago.

Joe Fisher: Hey, Samir, just related to cost question. So that is embedded within the corporate transformation cost that the team announced about a year ago. We've incurred roughly $4 million of that, I believe, of that $15 to 20 million, so we will see more costs this year. A lot of that's due to relocation, hiring, severance, the office change, et cetera. But what the group had talked about in the past was from a return on capital perspective, you have both offices, you have great pools of talent in both locations, but this also allows us to do more with an automation perspective and offshore perspective to the tune of about $4 million in run rate benefit. So it's a good ROI as well.

Speaker #10: We've incurred roughly $4 million of that, I believe, of that $15 to $20 million, so we will see more costs this year. A lot of that's due to relocation, hiring, severance, the office change, etc.

Speaker #10: But what the group had talked about in the past was, from a return on capital perspective, you have both offices. You have great pools of talent in both locations.

Speaker #10: But this also allows us to do more from an automation perspective and offshoring perspective, to the tune of about $4 million in run-rate benefit.

Speaker #10: So, it's a good ROI as well.

Speaker #6: Thank you. Our next question comes from the line of Ronald Camden with Morgan Stanley. Please proceed with your question.

Operator: Thank you. Our next question comes from the line of Ronald Kamdem with Morgan Stanley. Please proceed with your question.

Speaker #11: Hey, thanks so much for having me on. Congrats to everyone, first of all. But the question is, just thinking about the re-acceleration of organic growth that you sort of mentioned.

Ronald Kamdem: Hey, thanks so much for having me on. Congrats to everyone, first of all. But the question is just thinking about re-acceleration of organic growth that you sort of mentioned. Is there any sort of large capital plan or a reinvesting plan that's sort of coming with that, or you think that could be done sort of, you know, based on sort of the existing platform, existing system? Thanks.

Speaker #11: Is there any sort of large capital plan or reinvesting plan that's sort of coming with that? Or you think that could be done sort of based on sort of the existing platform, existing system?

Speaker #11: Thanks.

Speaker #8: Sure. So let me talk a little bit about the PS Next platform and what it represents, and the investments that we'll continue to make within that platform.

Tom Boyle: Sure. So let me talk a little bit about the PS Next platform and what it represents and the investments that we'll be continuing to make within that platform. I think is... You know, we've continuously gotten the question over the last year or two, like, what's next and how are you gonna take the platform from here? And PS Next is really the answer to that. If you step back about 10 years ago, honestly, storage was behind in terms of digital customer experience and interacting with our customers. Ten years ago, our customers would show up at a property and sign a paper lease, for instance.

Speaker #8: I think we've continuously gotten the question over the last year or two: what's next, and how are you going to take the platform from here?

Speaker #8: And PS Next is really the answer to that. If you step back about ten years ago, honestly, storage was behind in terms of digital customer experience and interacting with our customers.

Speaker #8: Ten years ago, our customers would show up at a property and sign a paper lease, for instance. I think what the team has accomplished over the last ten years has been impressive.

Tom Boyle: You know, I think what the team has accomplished over the last ten years has been impressive, and we've obviously been communicating that over the last several years in terms of how we interact with our customers today across both a stronger digital experience on our website, our e-rental platform, our app, but also reinvesting in the brand and the platform there, and then also how we deliver that customer experience. So we've spoken about the operating model transformation and getting more efficient and effective throughout how we deliver that customer experience. So that's all shifted us forward into a very omni-channel and digital-first environment. But we're now sitting at an inflection point going forward, and that inflection point does center around AI and a further digital investment.

Speaker #8: And we've obviously been communicating that over the last several years in terms of how we interact with our customers today—across both a stronger digital experience on our website, our e-rental platform, our app—but also reinvesting in the brand and the platform there.

Speaker #8: And then also, how we deliver that customer experience. And we've spoken about the operating model transformation and getting more efficient and effective throughout how we deliver that customer experience.

Speaker #8: So that's all shifted us forward into a very omnichannel and digital-first environment. But we're now sitting at an inflection point going forward. And that inflection point does center around AI and further digital investment.

Speaker #8: And you think about what customers were expecting 10 years ago from an Amazon or a Starbucks. We sought to replicate and deliver a customer experience that was more similar to what consumer businesses were offering at the time.

Tom Boyle: And you think about what customers were expecting 10 years ago from an Amazon or a Starbucks, we sought to replicate and deliver a customer experience that was more similar to what consumer businesses were offering at the time. That is moving even further ahead, and customers are expecting more. They're not just expecting options; they're expecting recommendations and fast answers to questions. And we're investing as a team across the platform to deliver AI-infused experiences, both across the customer experience, but also to our teams and how we deliver that customer experience. So more to come there as we launch that PS Next platform.

Speaker #8: That is moving even further ahead. And customers are expecting more. They're not just expecting options; they're expecting recommendations and fast answers to questions. And we're investing as a team across the platform to deliver AI-infused experiences—not just across the customer experience, but also to our teams and how we deliver that customer experience.

Speaker #8: So, more to come there as we launch that PS Next platform. In terms of the investment that will go on, they will be throughout that customer delivery, both in terms of team as well as technology platforms, etc.

Tom Boyle: In terms of the investments that will go on, they will be, you know, throughout that customer delivery, both in terms of team as well as technology platforms, et cetera, and we'll share those as we go. But we're excited about them because the returns on them will be strong.

Speaker #8: And we'll share those as we go. But we're excited about them because the returns on them will be strong.

Speaker #11: Great. And then my quick follow-up is just on the top-of-the-funnel demand, some of the other indicators that you sort of look at from website visits and so forth.

Ronald Kamdem: Great. And then my, my quick follow-up is just on the top of the funnel demand, some of the other indicators that you sort of look at from website visits and so forth. Maybe can you just talk about what you're seeing there, and how that sort of correlates to maybe the slow, housing activity we've been seeing? Thanks.

Speaker #11: Maybe can you just talk about what you're seeing there, and how that sort of correlates to the slow housing activity we've been seeing?

Speaker #11: Thanks.

Speaker #8: Yeah, top-of-funnel activity has been pretty consistent at the start of the year. The one thing I would note is January and the start of February have been pretty unique, given the weather across the country.

Tom Boyle: Yeah. Top of funnel activity has been pretty consistent at the start of the year. The one thing I would note is January and the start of the year has been pretty unique given the weather across the country. So we've had weeks where you've seen activity really drop off because of the weather and then pick right back up as things warmed up. And so the start of the year has been really embodied by that. But if you kind of look through the peaks and the troughs, as I noted earlier, seeing good trends across move-in customer demand as well as existing customer performance. Move-in rents, again, trending in a better direction into January. The existing customer continues to perform incredibly well.

Speaker #8: So, we've had weeks where you've seen activity really drop off because of the weather, and then pick right back up as things warmed up.

Speaker #8: And so, the start of the year has been really embodied by that. But if you kind of look through the peaks, and of seeing good trends across moving customer demand as well as existing customer performance, move-ins and rents, again, trending in a better direction into January.

Speaker #8: The existing customer continues to perform incredibly well. Move-outs were down again in January, like they were in the fourth quarter, just demonstrating the strength of the storage consumer.

Tom Boyle: Move-outs down again in January, like they were in the fourth quarter, just demonstrating the strength of the storage consumer. Thanks so much.

Speaker #11: Thanks so much.

Speaker #6: Thank you. Our next question comes from the line of Nicholas Yulikov, Wisconsin Bank. Please proceed with your question.

Operator: Thank you. Our next question comes from the line of Nicholas Ulacco with Scotiabank. Please proceed with your question.

Speaker #12: Hello, this is Victor Cadewan with Nick Yulikov. I have a follow-up on the external growth opportunities you mentioned. So, you stated that you executed around $1 billion of acquisitions in 2025, while roughly $7 billion was under consideration?

Victor Fedion: Hello, this is Victor Fedion with Nick Ulico. I have a follow-up on the external growth opportunity set. So you mentioned that you executed around $1 billion of acquisitions in 2025, while roughly around $7 billion was under consideration. Have you noticed any recent shift in seller expectations, and how is this translating into bid-ask spreads and this 1 to 7 conversion ratio, so to speak?

Victor Fediv: Hello, this is Victor Fedion with Nick Ulico. I have a follow-up on the external growth opportunity set. So you mentioned that you executed around $1 billion of acquisitions in 2025, while roughly around $7 billion was under consideration. Have you noticed any recent shift in seller expectations, and how is this translating into bid-ask spreads and this 1 to 7 conversion ratio, so to speak?

Speaker #12: Have you noticed any recent shift in seller expectations? And how is this translating into bid-ask spreads and these 1-to-7 conversion ratios, so to speak?

Speaker #8: That's been something that's been really evolving over the last several years, right? I mean, we had a time period where cost of debt was really low.

Tom Boyle: You know, that's been something that's been really evolving over the last several years, right? I mean, we had a time period where cost of debt was really low, cap rates were lower, and it's been a readjustment for both sellers and buyers over the last several years. As time has gone on, and you've seen a 10-year treasury, for instance, just to pick one metric that's been in a relatively tight band for the last several years, there's been an ability to transact more rationally, I think, for both sellers and buyers, and that led to some of our successes last year. And I think momentum is building towards that in 2026, based on our dialogue. No question, in many instances, there's still a healthy disconnect between buyers and sellers, and that's okay.

Speaker #8: Cap rates were lower, and it's been a readjustment for both sellers and buyers over the last several years as time has gone on. And you've seen a 10-year Treasury, for instance, just to pick one metric, that's been in a relatively tight band for the last several years.

Speaker #8: There's been an ability to transact more rationally, I think, for both sellers and buyers. And that led to some of our successes last year.

Speaker #8: And I think momentum is building towards that into 2026, based on our dialogue. No question, in many instances, there's still a healthy disconnect between buyers and sellers.

Speaker #8: And that's okay. We're ready to transact when sellers are ready to transact, and continue to monitor the marketplaces they're in. But we are optimistic around 2026 and 2027 as the cap rate ranges start to narrow.

Tom Boyle: We're ready to transact when sellers are ready to transact and continue to monitor the marketplaces they're in. But we are optimistic around 2026 and 2027 as you know, the cap rate ranges start to narrow.

Speaker #13: And I'd just add to that, as Tom mentioned, as opening comments, part of the multi-year trend—and this has been going on literally for the last decade plus—is the number of owners coming into the sector with a different set of capital, either constraints or opportunities, that can feed activity, either predictable or unpredictable, based on their need to bring assets to market.

Joe Russell: And I'd just add to that, you know, as Tom mentioned in his opening comments, you know, part of the multiyear trend, and this has been going on literally for the last decade plus, is the number of owners coming into the sector with a different set of capital, either constraints or opportunities, that can feed activity, either predictable or unpredictable, based on their need to bring assets to market. We saw a fair amount of that in 2025, where some larger portfolios ended up coming to the market. We curated a number of those larger portfolios into the assets that we thought were best suited for our own investment requirements.

Speaker #13: We saw a fair amount of that in 2025, where some larger portfolios ended up coming to the market. We curated a number of those larger portfolios into the assets that we thought were best suited for our own investment.

Speaker #13: Requirements. But that activity and that level of ownership structure within the REIT sector continue to grow. And that, too, is going to create opportunities—some predictable, and in some cases, some unpredictable.

Joe Russell: But, you know, that activity and that level of ownership structure within the REIT sector continues to grow, and that, too, is gonna create opportunities, some predictable and, in some cases, some unpredictable. The team's ready to embrace those opportunities, and, you know, a lot of those conversations take time to cure. That's why some of the volume that we saw from an underwriting standpoint has yet to play through from a transaction. But, step-by-step, we're more confident more activity along those lines could come through.

Speaker #13: The team's ready to embrace those opportunities. And a lot of those conversations take time to cure. That's why some of the volume that we saw from an underwriting standpoint has yet to play through from a transaction.

Speaker #13: But step by step, we're more confident, and more activity along those lines could come through.

Speaker #12: Got it. And then, geographically speaking, where do you kind of want to grow the most? And where do you see most of the opportunities available for you?

Victor Fedion: Got it. And then, geographically speaking, where, where do you kind of want to grow the most, and where do you see the most of opportunities available for you? And probably, do we, should we expect to see more growth in taxes even more than recently? Yeah.

Victor Fediv: Got it. And then, geographically speaking, where, where do you kind of want to grow the most, and where do you see the most of opportunities available for you? And probably, do we, should we expect to see more growth in taxes even more than recently? Yeah.

Speaker #12: And probably we should expect to see more growth in Texas, even more than recently? Yeah.

Tom Boyle: Sure. You know, we have tremendous advantages because of the operating platform we have across the country, in terms of understanding trends, having long-term datasets to understand what's taking place in submarkets. So you may see in the supplemental, for instance, you know, we're acquiring in this state or that state, but what we're really focused on is capturing the opportunity at the submarket level and being able to identify those submarkets where there's a real fit for our portfolio, and a fit from a customer demand standpoint, where there's an opportunity to deploy capital. That goes to the data-driven approach that we use today and one that we continue to infuse energy into, moving forward. It's a submarket story in storage, and that's the opportunity we're chasing.

Speaker #8: Sure. We have tremendous advantages because of the operating platform we have across the country. In terms of understanding trends, having long-term data sets to understand what's taking place in submarkets.

Speaker #8: And so you may see in the supplemental, for instance, we're acquiring in this state or that state, but what we're really focused on is capturing the opportunity at the submarket level.

Speaker #8: And being able to identify those submarkets where there's a real fit for our portfolio, and a fit from a customer demand standpoint, where there's an opportunity to deploy capital.

Speaker #8: And that goes to the data-driven approach that we use today, and one that we continue to infuse energy into moving forward. It's a submarket story in storage.

Speaker #8: And that's the opportunity we're chasing.

Speaker #12: Thank you.

Victor Fedion: Thank you.

Victor Fediv: Thank you.

Speaker #6: Thank you. Our next question comes from the line of Michael Goldsmith with UBS. Please proceed with your question.

Operator: Thank you. Our next question comes from the line of Michael Goldsmith with UBS. Please proceed with your question.

Speaker #14: Good afternoon. Thanks for taking my questions, and congratulations to everyone involved, including Joe, Tom, and Joe. Lots of exciting announcements about the platform and the customer experience today.

Operator 2: Good afternoon. Thanks for taking my questions, and congratulations to everyone involved, including Joe, Tom, and Joe. Lots of exciting announcements about the platform and the customer experience today. How much of what you are doing is reliant on an improving demand environment versus what you can control, you know, given the existing demand background? Thanks.

Michael Goldsmith: Good afternoon. Thanks for taking my questions, and congratulations to everyone involved, including Joe, Tom, and Joe. Lots of exciting announcements about the platform and the customer experience today. How much of what you are doing is reliant on an improving demand environment versus what you can control, you know, given the existing demand background? Thanks.

Speaker #14: How much of what you are doing is reliant on an improving demand environment versus what you can control, given the existing demand background?

Speaker #14: Thanks.

Speaker #15: Yeah, thanks, Michael. Good question. We sit here today—obviously, I highlighted earlier our views around the industry outlook, which we do think is a strong one over time.

Tom Boyle: Yeah, thanks. Thanks, Michael. Good question. Yeah, as we sit here today, obviously, I highlighted earlier our views around the industry outlook, which we do think is a strong one over time, and storage has been one of the strongest performing subsectors within real estate over time. The last several years have not been particularly exciting, as I noted earlier. And certainly as we look at 2026, it looks pretty similar to 2025 in terms of many of the trends. That's not holding us back. In fact, it just energizes us in terms of what it is we can do now with the team and the platform, and to be able to take advantage of this environment, both in terms of capital allocation opportunities-

Speaker #15: And storage has been one of the strongest performing subsectors within real estate over time. The last several years have not been particularly exciting. As I noted earlier, and certainly as we look at 2026, it looks pretty similar to 2025 in terms of many of the trends.

Speaker #15: That's not holding us back. In fact, it just energizes us in terms of what it is we can do now with the team and the platform, and to be able to take advantage of this environment, both in terms of capital allocation opportunities as well as platform investments, to set ourselves up for the future.

Joe Russell: ... as well as, platform investments to set ourselves up for the future. And, you know, we can't guess exactly when, you know, same-store trends are going to be, what they've been, in the past. But what we can do is invest in the platform and control there, and that will benefit us in the interim period and certainly when things improve as well.

Tom Boyle: ... as well as, platform investments to set ourselves up for the future. And, you know, we can't guess exactly when, you know, same-store trends are going to be, what they've been, in the past. But what we can do is invest in the platform and control there, and that will benefit us in the interim period and certainly when things improve as well.

Speaker #15: And we can't guess exactly when the same-store trends are going to be what they've been in the past. But what we can do is invest in the platform and control there.

Speaker #15: And that will benefit us in the interim period, and certainly when things improve as well.

Speaker #14: Thanks for that, Tom. And my follow-up question is, you've hired some new executives, you're building out the acquisitions team. Is that built into the G&A number?

Tom Boyle: Thanks for that, Tom. And my follow-up question is, you've hired some new executives, you're building out the acquisitions team. Is that built into the G&A number? You did $107 million in the last two years, and guidance is calling for roughly the same. So just trying to understand the trajectory of that expense. Thanks.

Speaker #14: You did $107 million in the last two years, and guidance is calling for roughly the same. So just trying to understand the trajectory of that expense.

Speaker #14: Thanks.

Speaker #16: Hey, Michael, it's Joe. We have factored in a lot of those expectations related to new hires, as well as investments into the platform. So Tom talked a lot about technology, data science, AI.

Joe Fisher: Hey, Michael, it's Joe. We have factored in a lot of those expectations related to new hires, as well as investments into the platform. So Tom talked a lot about technology, data science, AI. We'll be investing in the platform in that respect as well. So that is captured in those numbers. What we obviously hope to do is go out there and drive performance for shareholders, and as it occurs, performance improves, and hopefully compensation improves along with it.

Speaker #16: We'll be investing in the platform in that respect as well, so that is captured in those numbers. What we obviously hope to do is go out there and drive performance for shareholders.

Speaker #16: And as that occurs, performance improves, and hopefully compensation improves along with it.

Speaker #14: Congratulations again. Good luck in 2026.

Tom Boyle: Congratulations again. Good luck in 2026.

Speaker #16: Thank you.

Joe Fisher: Thank you.

Speaker #6: Thank you. Our next question comes from the line of Todd Thomas with KeyBanc Capital Markets. Please proceed with your question.

Operator: Thank you. Our next question comes from the line of Todd Thomas with KeyBanc Capital Markets. Please proceed with your question.

Speaker #17: Yeah. Hi. Thank you. And yeah, congrats on all the promotions and appointments, and Joe Russell, best of luck in your next chapter. I wanted to ask, with regard to some of the leadership changes, just curious how the Board sees its oversight role evolving under 4.0 here, particularly with regard to capital deployment and capital allocation, and sort of tying into that on the balance sheet.

Todd Thomas: Yeah. Hi, thank you. And, yeah, congrats on all the promotions and appointments, and Joe Russell, you know, best of luck in your next chapter. I wanted to ask with, you know, with regard to some of the leadership changes, I'm just curious how the board sees its oversight role evolving under, you know, 4.0 here, particularly with regard to capital deployment and capital allocation. And, sort of tying into that on the balance sheet, should we expect any changes to the company's capital structure or leverage policy? PSA used to be, you know, unlevered. You mentioned, Tom, it's, you know, 4.2 times on a net debt to EBITDA basis, and talked about some of the refinancing headwinds this year and, perhaps over the next couple of years.

Speaker #17: Should we expect any changes to the company's capital structure or leverage policy? PSA used to be unlevered. You mentioned, Tom, it's 4.2 times on a net debt-to-EBITDA basis and talked about some of the refinancing headwinds this year and perhaps over the next couple of years.

Speaker #17: Should we expect any evolution or changes around the company's cap structure moving forward?

Todd Thomas: Should we expect any evolution or changes around the company's cap structure moving forward?

Speaker #18: Okay. I don't know how many parts are in that question, Todd. We'll do our best to cover them all.

Joe Russell: Okay, um-

Joe Fisher: I don't know how many parts are in that question, Todd. We'll do our best to cover them all.

Speaker #19: I'll start off, Todd, and then Tom and Joe can add any additional color. So, first of all, just as far as the board's role and where we have gotten to relative to the host of announcements as part of PS 4.0—without question, our board's always had a high degree of commitment on succession planning, seeding the company with the most robust and talented set of leaders. No change relative to their continued involvement as the team moves forward. In my experience over the last decade with the board itself, I would say that's an active and continued discussion that's always quite helpful to the management team as a whole.

Joe Russell: I'll start off, Todd, and then Tom and Joe can add any additional color. So, you know, first of all, just as far as, you know, the board's role and, you know, where we have gotten to relative to the host of announcements, as part of PS 4.0. Without question, you know, our board's always had a high degree of commitment on succession planning, seating you know the company with you know the you know most robust and talented set of leaders. No change relative to their you know continued involvement as you know the team moves forward. In you know my experience over the last decade you know with the board itself you know I would say that's an active and continued discussion that's always quite helpful to the management team as a whole.

Speaker #19: And with the talent, and the range of perspective that we have on our board—and in our case—we feel like we've got a very talented board with a great range of experiences.

Joe Russell: And, you know, with the talent and a range of perspective that we have on our board, and, you know, in our case, we feel like we've got a very talented board with, you know, great range of experiences. They're there for counsel, advice, and perspective. We're really excited about Shankh taking his role, knowing, you know, his knowledge of the REIT industry as a whole and, you know, his success at Welltower, et cetera. So, you know, all, you know, very powerful components of what led to the whole host of decisions that came through the announcements yesterday.

Speaker #19: They're there for counsel, advice, and perspective. We're really excited about Sean taking his role, knowing his knowledge of the REIT industry as a whole and his success at Welltower, etc.

Speaker #19: So, all very powerful components of what led to the whole host of decisions that came through the announcements yesterday. To go more specifically into how that translates into some of our more tactical components in the very near term, I'll let Tom talk a little bit more about that and give you more color.

Joe Russell: You know, to go more specifically, you know, into how that translates into, you know, some of our more tactical components in the very near term, I'll let Tom talk a little bit more about that, and he'd give you more color.

Speaker #15: Yeah, thanks, Joe. I think the only other thing that I'd highlight related to the board and oversight and guidance and perspectives that I look forward to is around the formation of a new investment committee of the board.

Tom Boyle: Yeah. Thanks, Joe. I think the only other thing that I'd highlight related to the board and oversight and guidance and perspectives that I look forward to is around the formation of a new investment committee of the board. And obviously, you know, our board does have a lot of capital allocation experience and perspectives, and so look forward to that. That committee is going to be chaired by Ron Spogli, who's a founder of Freeman Spogli & Co. And him, alongside with Shank, obviously bring very strong capital allocation perspectives, and I look forward to having lots of good dialogue and perspectives from that group moving forward as we launch our value creation engine.

Speaker #15: And obviously, our board does have a lot of capital allocation experience and perspectives, and so I look forward to that. That committee is going to be chaired by Ron Spogli, who's a founder of Freeman Spogli & Co.

Speaker #15: And him, alongside with Sean, obviously bring very strong capital allocation perspectives. And I look forward to having lots of good dialogue and perspectives from that group moving forward as we launch our value creation engine.

Speaker #16: Hey, Todd. This is Joe. And I'll try to close this question out relatively efficiently. But from a balance sheet perspective, I'm very fortunate as CFO to be able to inherit a fantastic balance sheet.

Joe Fisher: Hey, Todd, this is Joe, and I'll try to close this question out relatively efficiently. But from a balance sheet perspective, I'm very fortunate as CFO to be able to inherit a fantastic balance sheet. The team has done a phenomenal job, as everybody knows, in terms of setting up the balance sheet for success and having both defensive and offensive capabilities, depending on the period of time that we're in. And so, you know, from a metric and policy perspective, the team's talked about in the past, wanting to be in that 4 to 5 times debt to EBITDA range. Today, we're at 4.2 times, so the expectation is to continue to stay there, continue to manage our liquidity, continue to have phenomenal balance sheet metrics and duration overall.

Speaker #16: The team has done a phenomenal job, as everybody knows, in terms of setting up the balance sheet for success and having both defensive and offensive capabilities depending on the period of time that we're in.

Speaker #16: And so, from a metric and policy perspective, the team's talked about in the past wanting to be in that 4 to 5 times debt-to-EBITDA range.

Speaker #16: Today, we're at 4.2 times. So the expectation is to continue to stay there, continue to manage our liquidity, and continue to have phenomenal balance sheet metrics and duration overall.

Speaker #16: I do think we're in a position where we can be offensive with this to really support the value creation engine. So, we have that $600 million of free cash flow each and every year.

Joe Fisher: I do think we're in a position where we can be offensive with this to really support the value creation engine. So we have that $600 million of free cash flow each and every year. In addition, we have roughly $1.5 billion of capacity on debt, just to go to the midpoint of that debt to EBITDA range. So I do think we're in a position to potentially be offensive with the balance sheet, depending on the opportunities and accretion that are out there. As well as, you know, with a balance sheet and platform of this size, there's a multitude of sources to fund the business, and that goes beyond just the typical debt sources or equity sources. We've had discussions on, you know, do we look at joint venture capital and dispositions in the future as well?

Speaker #16: In addition, we have roughly $1.5 billion of capacity on debt just to go to the midpoint of that debt to EBITDA range.

Speaker #16: So, I do think we're in a position to potentially be offensive with the balance sheet, depending on the opportunities and accretion that are out there.

Speaker #16: As well as with a balance sheet and platform of this size, there’s a multitude of sources to fund the business. And that goes beyond just typical debt sources or equity sources.

Speaker #16: We've had discussions on whether we look at joint venture capital and dispositions in the future as well. And so, there are a lot of different levers to pull here to evaluate value creation for the investor base.

Joe Fisher: There's a lot of different levers to pull here to evaluate value creation for the investor base.

Speaker #17: All right, thanks, that's helpful. And then, just following up on acquisitions—as you look to sort of accelerate those efforts a little bit—what's been the biggest constraint for acquisitions as you look back over the last several years?

Todd Thomas: ... All right, thanks. That's helpful. And then just following up on acquisitions, you know, as you look to sort of, you know, accelerate those efforts a little bit, you know, what's been the biggest constraint for acquisitions as you kinda look back, over the last several years? Obviously, you know, you've been very active, but I'm just curious. It sounds like, you know, the efforts, you know, sort of ramping up a little bit, and I'm just curious if you feel there was sort of a constraint and whether, you know, you're looking to maybe increase your, your risk appetite or, or, you know, change your return hurdles at all as you, you know, layer assets onto the platform, see the value there.

Speaker #17: Obviously, you've been very active. But I'm just curious—it sounds like the efforts are sort of ramping up a little bit. And I'm just curious if you feel there was sort of a constraint, and whether you're looking to maybe increase your risk appetite or change your return hurdles at all as you layer assets onto the platform.

Speaker #17: See the value there.

Speaker #18: Yeah, thanks, Todd. I would say—I think the question earlier was around buyer and seller expectations and transaction volumes. I'd say that's been probably the biggest impediment to accomplishing more capital allocation over the last several years.

Tom Boyle: Yeah. Thanks, Todd. I would say, you know, I think the question earlier was around, you know, buyer and seller expectations and transaction volumes. I'd say that's been probably the biggest impediment to accomplishing more capital allocation over the last several years. But as we look ahead, you know, the value creation engine we're speaking to is not about lowering our return hurdles or getting into assets that we didn't view as attractive in the past. It's around how can we be better in what it is we're doing? How can we build the relationships with a growing team? How can we be faster in terms of how we underwrite and provide feedback to brokers and sellers?

Speaker #18: But as we look ahead, the value creation engine we're speaking to is not about lowering our return hurdles or getting into assets that we didn't view as attractive in the past.

Speaker #18: It's around: how can we be better in what it is we're doing? How can we build the relationships with a growing team? How can we be faster in terms of how we underwrite and provide feedback to brokers and sellers?

Speaker #18: How can we get more off-market opportunities and more singles and doubles in those pockets and submarkets that we're attracted to? And if we think, if we’re successful in doing those things, there’ll be more activity and better activity for us to deploy our capital into.

Tom Boyle: How can we get more off-market opportunities and more singles and doubles in those pockets and submarkets that we're attracted in? And if we think if we're successful in doing those things, there'll be more activity, and better activity for us to deploy our capital into.

Speaker #17: All right. Thank you.

Todd Thomas: All right. Thank you.

Speaker #18: Thanks, Todd.

Tom Boyle: Thanks, Todd.

Speaker #19: Thank you.

Hong Zhang: Thank you.

Joe Russell: Thank you.

Speaker #20: Thank you. Our next question comes from the line of Brad Hafern with RBC Capital Markets. Please proceed with your question.

Operator: Thank you. Our next question comes from the line of Brad Heffern with RBC Capital Markets. Please proceed with your question.

Speaker #21: Yeah. Hey, everybody. Thanks. Big picture question on moving rates—why do you think we haven't found the floor yet? COVID was a long time ago.

Brad Heffern: Yeah, paper rate. Thanks. Big picture question on move-in rates. Why do you think we haven't found the floor yet? You know, COVID was a long time ago. The consumer's been stable, housing's been stable, supply is declining. So I'm just curious, like, why are we still seeing these year-on-year declines? And do you think that we get to neutral at some point, maybe late in the year?

Speaker #21: The consumer's been stable. Housing's been stable. Supply's declining. So I'm just curious, why are we still seeing these year-on-year declines? And do you think that we get to neutral at some point, maybe late in the year?

Speaker #22: Yeah, so I guess two components there. One is maybe looking back in time—how have we gotten here from a move-in rate standpoint? And I think there’s a couple of things there.

Tom Boyle: Yeah. So I guess two components there. One is maybe looking back in time, how have we gotten here from a move-in rate standpoint? And I think there's a couple things there. One is, you know, new supply in some of the markets that we operate in continues to come in. And so we spoke about some of the markets in the Sun Belt, for example, Atlanta, Dallas, Charlotte, Orlando, where, you know, new supply is weighing on performance. No question that competition of new supply drags down move-in rents, and I think we're still seeing that and absorbing that. The good thing is, occupancies are lifting there, and that absorption is taking place, which is encouraging in a forward look as it relates to where move-in rents will trend in some of those markets.

Speaker #22: One is, new supply in some of the markets that we operate in continues to come in. And so we spoke about some of the markets in the Sunbelt, for example, Atlanta, Dallas, Charlotte, Orlando, where new supply is weighing on performance.

Speaker #22: No question that competition from new supply drags down moving rents, and I think we're still seeing that and absorbing that. The good thing is occupancies are lifting there.

Speaker #22: And that absorption is taking place, which is encouraging in a forward look as it relates to where moving rents will trend in some of those markets.

Tom Boyle: You know, the flip side is we are seeing move-in rent growth in lots of our markets. So we highlighted, you know, some of those stronger markets that Joe mentioned earlier, Minneapolis, Chicago, San Francisco, DC, for instance, we have move-in rate growth. And that move-in rate growth is supported by good demand and more limited supply. And so it's really not a story of a national phenomenon, but I think really a summation of market dynamics at play.

Speaker #22: The flip side is, we are seeing moving rent growth in lots of our markets. So, we highlighted some of those stronger markets that Joe mentioned earlier: Minneapolis, Chicago, San Francisco, and D.C., for instance.

Speaker #22: We have moving rate growth, and that moving rate growth is supported by good demand and more limited supply. So, it's really not a story of a national phenomenon.

Speaker #22: But I think, really, it's a summation of the market dynamics at play.

Speaker #21: Okay, got it. Thank you for that. And then on the new compensation plan, Tom, you mentioned you were working with Shonk. Obviously, Welltower has a new compensation plan as well.

Brad Heffern: Okay. Got it. Thank you for that. And then on the new compensation plan, Tommy, you mentioned you were working with Shankh. Obviously, Welltower has a new compensation plan as well. Are there any similarities there, or are they unrelated?

Speaker #21: Are there any similarities there? Are they unrelated?

Speaker #22: Sure. I think there are a couple of things to highlight there. The incentives are an important part of what I call the 'own it' culture.

Tom Boyle: Sure. I think there's a couple things to highlight there. The incentives is an important part of what I call the own it culture. The program that I've been working with Shank on for the NEOs is very different than the program that he more recently announced in October. And it's more similar to a more traditional plan that you've seen from us, but at the same time, very, very different. And the differences relate to the performance period being around a three-year period with delayed vesting. The focus really is around total shareholder return, absolute and relative performance versus storage, as well as the RMZ, as well as stretch goals.

Speaker #22: The program that I've been working with Shonk on for the NEOs is very different than the program that he more recently announced in October.

Speaker #22: And it's more similar to a more traditional plan that you've seen from us, but at the same time, very, very different. And the difference relates to the performance period being around a three-year period with delayed vesting. The focus really is around total shareholder return—absolute and relative performance.

Speaker #22: Versus storage as well as the RMZ, as well as stretch goals. And I'd say that's one of the biggest components—stretching the goals for us as an NEO team, and obviously stretching those goals out to benefit shareholders as well, if we can go out and achieve those stretch goals.

Tom Boyle: And I'd say that's one of the biggest components there, is stretching the goals for us as an NEO team, and obviously stretching those goals out to benefit shareholders as well, if we can go out and achieve those stretch goals. So very much aligned with shareholders, 100% performance-based, and the shareholders and the team will win together. And that's really the focus around that incentive redesign. It's a big shift, and as we think about taking that as part of the own it culture and PS 4.0, we have an opportunity to rethink incentives across the organization. And that is really the goal, to infuse energy, urgency, and engagement across the organization to drive results.

Speaker #22: So, very much aligned with shareholders, 100% performance-based, and the shareholders and the team will win together. And that's really the focus around that incentive redesign.

Speaker #22: It's a big shift. And as we think about taking that as part of the 'Own It' culture, and PS—

Speaker #1: We have an opportunity to rethink incentives across the organization, and that is really the goal: to infuse energy, urgency, and engagement across the organization to drive results.

Speaker #1: So, I'm passionate about how we think about incentives for the organization, and excited about where we're going from here.

Tom Boyle: So I'm passionate about how we think about incentives for the organization, and excited about where we're going from here.

Speaker #2: Okay . Thank you

Brad Heffern: Okay, thank you.

Speaker #3: Thank you. Our next question comes from the line of Ravi Vaidya with Mizuho Securities. Please proceed with your question.

Operator: Thank you. Our next question comes from the line of Ravi Vadia with Mizuho Securities. Please proceed with your question.

Speaker #4: Hi there . Thank you for taking my question . I wanted to ask about expenses . The expense forecast came in relatively low , about 100 bips below last year's inaugural forecast .

Todd Thomas: Hi there. Thank you for taking my question. I wanted to ask about expenses. The expense forecast came in relatively low, about 100 basis points below last year's inaugural forecast. Can you comment on some of the line items that are driving this, and maybe if there are any areas where there could be some levels of conservatism built in? Thanks.

Ravi Vaidya: Hi there. Thank you for taking my question. I wanted to ask about expenses. The expense forecast came in relatively low, about 100 basis points below last year's inaugural forecast. Can you comment on some of the line items that are driving this, and maybe if there are any areas where there could be some levels of conservatism built in? Thanks.

Speaker #4: Can you comment on some of the line items that are driving this, and maybe if there are any areas where there could be some levels of conservatism built in? Thanks.

Speaker #5: Hey, Ravi, it's Joe. So, it's really just a continuation of what you've seen from this team for a number of years now.

Joe Fisher: ... Hey, Robbie, it's Joe. So it's really just a continuation of what you've seen from this team for a number of years now. They continue to attack with a whole series of initiatives, all the various line items, while also being cognizant of the delivery of the value to the customer. And so when you look at what took place in 2025, obviously, you saw from a personnel perspective, we kept that constrained. Utilities was constrained, R&M constrained. I think you're seeing a continuation of that within our guidance of that 2.2% midpoint. You have property tax leading the way, but if you jump into things like payroll, there's continued initiatives on that front from a hours perspective, as we continue to use machine learning to really understand when are the customers there, what do the customers need, and how can we better serve them?

Speaker #5: They continue to attack with a whole series of initiatives. All the various lines also being cognizant of the delivery of the value to the customer.

Speaker #5: And so, when you look at what took place in 2025, obviously you saw from a personal perspective, we kept that constrained.

Speaker #5: Utilities was constrained, RAM constrained. I think you're seeing a continuation of that within our guidance at the 2.2% midpoint. You have property tax leading the way.

Speaker #5: But if you jump into things like payroll, there are continued initiatives on that front from an hours perspective. We continue to use machine learning to really understand when the customers are there.

Speaker #5: What do the customers need, and how can we better serve them? So, more hours reductions, but a critical offset within that is increasing pay for those property managers on site at the same time.

Joe Fisher: So more hours reductions, but a critical offset within that is increasing pay for those property managers on site at the same time. So trying to get a win-win there. I think on the R&M side, you're seeing continued initiatives around how can we reduce costs there. So there's a number of pilots in terms of insourcing various aspects of R&M. When you go onto the utility side, we've had a pretty consistent solar effort over the last number of years to the tune of $50 to 70 million a year. So you continue to see constraint from a utility perspective, and then you get into some of the centralization efforts that are taking place. So trying to find a more specialized approach to certain things.

Speaker #5: So, trying to get a win-win there. I think on the RAM side, you're seeing continued initiatives around how can we reduce costs there.

Speaker #5: So, there's a number of pilots in terms of insourcing various aspects of RAM. When you go into the utility side, we've had a pretty consistent solar effort over the last number of years, to the tune of $50 to $70 million a year.

Speaker #5: So you continue to see constraint from a utility perspective, and then you get into some of the centralization efforts that are taking place.

Speaker #5: So trying to find a more specialized approach to certain things . So thinking about sales functions , customer relations , bad debt issue resolution , you know , moving some of those efforts off of the field and into the centralized team to try to get better outcomes .

Joe Fisher: So thinking about sales functions, customer relations, bad debt, issue resolution, you know, moving some of those efforts off of the field and into the centralized team to try to get better outcomes. So it's a whole slew of initiatives. There's a whole stack of them that we'd be happy to take you through offline at some point, but a continuation of what the team's done here for a number of years.

Speaker #5: So it's a whole slew of initiatives. There's a whole stack of them that we'd be happy to take you through offline at some point.

Speaker #5: But continuation of what the team has done here for a number of years.

Speaker #4: Thank you. Thank you for the color. Just one more here. Can you offer some more color on your current ECR policy?

Ravi Vaidya: Thank you. Thanks for the color. Just one more here. Can you offer some more color on your current ECRI policy? And if you're expecting any other regulatory or legislative restrictions that are outside of California that may weigh on same-store revenue growth, do you have a buffer or something like that built into the guide? Because it seems that this has become a category that more municipalities are likely to include in moratoriums. Thanks.

Speaker #4: If you're expecting any other regulatory or legislative restrictions that are outside of California, that may weigh on same-store revenue growth, do they have a buffer or something like that built into the guide? Because it seems that this has become a category that more municipalities are likely to include in moratoriums.

Speaker #4: Thanks

Tom Boyle: Great. So I guess two parts to that question. One is in terms of how we think about the existing customer rate increase program, and, you know, we've communicated in the past, we think about that in terms of a number of components. One is, what's the health of the customer base? What do we think the price sensitivity is, and their behavior? And we continue to be encouraged by that. As I noted earlier, you know, vacates are down, customer price sensitivity is consistent, and so a very healthy storage consumer. The other side is the replacement cost and, you know, what our occupancies are, what demand is for that unit, what marketing costs are, all those sorts of things play into the replacement cost side.

Speaker #1: Great . So I guess two parts to that question . One is in terms of how we think about the existing customer rate increase program , and we we've communicated in the past .

Speaker #1: We think about that in terms of a number of components. One is, what’s the health of the customer base? What do we think the price sensitivity is?

Speaker #1: In their behavior . And we continue to be encouraged by that . As I noted earlier , vacates are down . Customer price sensitivity is consistent .

Speaker #1: And so, a very healthy storage consumer. The other side is the replacement cost, and what our occupancies are, what demand is for.

Speaker #1: That unit , what marketing costs are all those sorts of things play into the replacement cost side . And that's something we we , we navigate on a unit by unit .

Tom Boyle: And that's something we navigate on a unit by unit and property by property basis. So those two combine to really drive that program, and it's a very data-driven approach to meet the customer and move rents as appropriate, based on the dynamics at play at the local market. In terms of the regulatory environment, you know, certainly we've spoken over the last year around some of the California activities and SB 709 specifically. You know, we're certainly compliant with that and communicating with our customers around the disclosure requirements for customers in California.

Speaker #1: And, and property by property basis. So those two combined to really drive that program, and it's a very data-driven approach to meet the customer.

Speaker #1: And, and move rents as appropriate based on the dynamics that play at the local market in terms of the regulatory environment.

Speaker #1: You certainly know we've spoken over the last year around some of the California activities and SB 709, specifically. And, you know, certainly compliant with that.

Speaker #1: And communicating with our customers around the disclosure requirements for customers in California. We're certainly aware of some of the recent pronouncements out of New York.

Tom Boyle: We're certainly aware of some of the recent pronouncements out of New York, for instance, and other states around pricing transparency, storage-specific or not, and certainly monitoring those around the country and making sure we're in compliance with all of those laws, and being transparent with our customers around our pricing approach and what they can expect.

Speaker #1: For instance . And other states around pricing transparency , storage specific or not , and certainly monitoring those around the country and making sure we're in compliance with all of those laws and being transparent with our customers around our pricing approach .

Speaker #1: And what they can expect

Speaker #4: Thank you

Ravi Vaidya: Thank you.

Speaker #3: Thank you. Our next question comes from the line of Michael Griffin with Evercore ISI. Please proceed with your question.

Operator: Thank you. Our next question comes from the line of Michael Griffin with Evercore ISI. Please proceed with your question.

Speaker #6: Great . Thanks . First off , congrats to the team all around Joseph Russell . Best of luck in retirement . And Joe Fisher , welcome to the team .

Michael Griffin: Great, thanks. First off, congrats to the team all around. Joe Russell, best of luck in retirement, and Joe Fisher, welcome to the team. Maybe just stepping back to get some perspective on sort of the PS 4.0 initiative. Can you give us some context, you know, what was the genesis behind this? You know, Joe, maybe you went to the board, maybe it came down from the board. It seems like it's been in the hopper for some time. So just ultimately, what was the catalyst that brought this about, given that, you know, despite the headwinds the industry has faced, Public has been a leader throughout it?

Speaker #6: Maybe just stepping back to get some perspective on sort of the PS 4.0 initiative . Can you give us some context ? You know , what was the genesis behind this You know , Joe , maybe you went to the board .

Speaker #6: Maybe it came down from the board . It seems like it's been in the hopper for some time . So just ultimately , what was the catalyst that brought this about , given that , you know , despite the headwinds , the industry has faced , public has has been a leader throughout it .

Speaker #7: Yeah . Griff , I wouldn't say there was a trigger or a catalyst . This is I would say an outgrowth of what the board and the management team constantly do , which is look at strategic initiatives , look at generational opportunities in terms of , again , our own skills investments , the deployment , particularly in our case of a very robust environment where we've continued to optimize and drive the level of success through the portfolio .

Joe Fisher: Yeah, Griff, I wouldn't say there was a trigger or a catalyst. This is, I would say, an outgrowth of what the board and the management team constantly do, which is look at, you know, strategic initiatives, look at generational opportunities in terms of, again, our own skills, investments, the deployment, particularly in our case, of a very robust environment, where we've continued to optimize and drive the level of success through the portfolio operationally, our tools tied to capital allocation, our balance sheet, et cetera. And then, you know, putting, you know, that entire, you know, set of opportunities into the hands of, you know, very skilled and talented leaders in every part of the company. So, you know, this is the outgrowth of a very intentional and ongoing strategic process.

Speaker #7: Operationally , our tools tied to capital allocation , our balance sheet , etc. . And then , you know , putting , you know , that entire set of opportunities into the hands of , very skilled and talented leaders and every part of the company .

Speaker #7: So , you know , this is the outgrowth of a very intentional and ongoing strategic process when Tom and I and , you know , some other significant leaders of the company , Natalia Johnson , etc.

Joe Fisher: When Tom and I and, you know, some other significant leaders of the company, Natalia Johnson, et cetera, all came into the company about a decade ago, we went through, frankly, a pretty similar process as well, and that, you know, internally, was called 3.0. We've learned and-

Speaker #7: , all came into the company about a decade ago , we went through , frankly , a pretty similar process as well . And that , you know , internally was called 3.0 .

Speaker #7: We've learned and optimized many things for the last decade . And step by step , we we felt and , you know , everything percolated to the point it was time for 4.0 .

Tom Boyle: ... and optimized many things through the last decade, and step by step, we felt and, you know, everything percolated to the point it was time for 4.0. So very excited about what it entails. I think the team's gonna be transparent around the more direct things that will come from 4.0, based on all the things that, you know, Tom and Joe are already speaking to, and we're excited about what's ahead. Time and again, through our history, you know, 53 years now plus, we've led the industry on a whole host of initiatives. We've been very proud of the fact that, over the last decade, we continued to lead the industry in many areas. And yet again, we're gonna challenge ourselves to take the next opportunity to drive forward.

Speaker #7: So, very excited about what it entails. I think the team's going to be transparent around the more direct things that will come from 4.0, based on all the things that Tom and Joe are already speaking to, and we're excited about what's ahead, time and again through our history.

Speaker #7: You know , 53 years now , plus , we've led the industry on a whole host of initiatives . We've been very proud of the fact that over the last decade , we can continue to lead the industry in many areas .

Speaker #7: And yet again, we're going to challenge ourselves to take the next opportunity to drive forward. So it's a really great time.

Tom Boyle: So it's a really great time. Super excited about Joe Fisher coming into the company, as well as some other key hires, too. It's a great time for us to launch, and with this launch, we don't stop either. We keep challenging ourselves to reinvent, to optimize, and that's the DNA of Public Storage.

Speaker #7: Super excited about Joe Fisher coming into the company , as well as some other key hires too . So it's it's a great time for us to launch and with this launch , we don't stop either .

Speaker #7: We keep challenging ourselves to reinvent, to optimize. And that's the DNA of Public Storage.

Speaker #6: Great . I certainly appreciate the context , Joe . And I know a question was just asked sort of on the regulatory front , but maybe if I could sort of spin it a different way .

Michael Griffin: Great. I certainly appreciate the context there, Joe. And then I know a question was just asked sort of on the regulatory front, but maybe if I could sort of spin it a different way. You know, obviously, there was one of your peers named in a lawsuit with New York earlier this week. Is stuff like this maybe the canary in the coal mine as it relates to sort of the pricing practices in the industry? I know there have been pushes, whether it's, you know, at SSA or the trade level around greater disclosures, but like is there a worry that, you know, greater, I guess, regulatory oversight from these municipalities could preclude what has been this ECRI pricing strategy regime we've been in, call it, over the past couple years?

Speaker #6: You know, obviously there was one of your peers named in a lawsuit with New York earlier this week. Is stuff like this...

Speaker #6: Maybe the canary in the coal mine as it relates to sort of the pricing practices in the industry. I know there have been pushes, whether it's at SSA or the trade level, around greater disclosures.

Speaker #6: But like, is there a worry that greater regulatory oversight from these municipalities could preclude what has been this ECRI pricing strategy regime?

Speaker #6: We've been in, call it, over the past couple of years?

Speaker #1: Sure . So I think there's a couple components to that . One , obviously , we saw some of the New York activity and we continue to work with the National self-storage Association and the state self-storage associations around working with regulators and legislators .

Tom Boyle: Sure, Griff. So I think there's a couple components to that. One, obviously, we saw some of the New York activity, and, you know, we continue to work with the National Self Storage Association, and the state self-storage associations around, working with regulators and legislators, and, and frankly, and ensuring that they understand the benefits of our business, how affordable our business is, you know, how affordable some of our new customer promotional rates are, some of those things that, that... And, you know, earlier in the conversation, we spoke about how affordable it is versus other space alternatives. So, being able to communicate that and, and educate folks.

Speaker #1: And frankly , ensuring that they understand the benefits of our business . How affordable our business is , how affordable some of our new customer promotional rates are , some of those things such that and , you know , earlier in the conversation , we spoke about how affordable it is versus other space alternatives .

Speaker #1: So being able to communicate that and educate folks, and then obviously part of pH 4.0 is a customer focus and improving the customer experience.

Tom Boyle: And then, obviously, part of PS 4.0 is a customer focus and improving the customer experience, and that goes everything from pricing all the way through to the day-to-day experience at the property. And so, as a team, we're very focused on that customer experience, and will be moving forward.

Speaker #1: And that goes everything from from pricing all the way through to the day to day experience at the property . And so as a team , we're very focused on that customer experience .

Speaker #1: And we'll be moving forward

Speaker #2: Great .

Michael Griffin: Great. That's it for me. Thanks for the time.

Speaker #6: That's it for me. Thanks for the time.

Speaker #1: Thanks , Chris .

Tom Boyle: Thanks, Griff.

Speaker #3: Thank you. Our next question comes from the line of Hong Jean with JP Morgan. Please proceed with your question.

Operator: Thank you. Our next question comes from the line of Hong Zhang with J.P. Morgan. Please proceed with your question.

Speaker #8: Yeah . Hey , I guess should we expect any changes with the third party management platform ? As as it relates to PSA 4.0 , especially revolving around , I income .

Hong Zhang: Yeah, hey. I guess, should we expect any changes with the third-party management platform as it relates to PS 4.0, especially revolving around, I guess, income, since you've traditionally ran the platform of less of an immediate profit mode in mind?

Speaker #8: Since you've traditionally run the platform with less of an immediate profit motive in mind,

Speaker #1: Sure . So in terms of the third party management platform , we're excited . Obviously , to launch the next , next generation operating platform as part of that .

Tom Boyle: Sure. So in terms of the third-party management platform, you know, we're excited, obviously, to launch the PS Next, next generation operating platform. As part of that, you know, our third-party management clients will benefit from those advances that we make in the customer experience and our operational delivery of that experience. So we're excited to share more with them as well as we move forward. In addition to that, as part of the leadership appointments, Chris Sambar, our Chief Operating Officer, is gonna be working very closely with Pete Panos, who runs that business day-to-day, and seeking to grow it, and to grow our third-party platform from here.

Speaker #1: You know , our third party management clients will will benefit from those advances that we make in the customer experience . And our operational delivery of that experience .

Speaker #1: So we're excited to share more with them as well as we move forward . In addition to that , as part of the leadership appointments , Chris Sambar , our chief operating officer , is going to be working very closely with Pete Panos , who runs that business day to day and seeking to grow it and to grow our third party platform from here .

Speaker #1: In terms of profitability , you know , profitability of that program has increased modestly over time . And as that portfolio stabilizes and grows from here , the profitability will will grow as well .

Tom Boyle: In terms of profitability, you know, profitability of that program has increased modestly over time, and as that portfolio stabilizes and grows from here, the profitability will grow as well, in addition to the lending components and the tenant insurance components, which are synergistic with that platform.

Speaker #1: In addition to the lending components and the tenant insurance components, which are synergistic with that platform.

Speaker #8: Got it. That leads to my follow-up, I guess. Is there any color you could provide about how we should expect growth in the lending program over the near term?

Hong Zhang: Got it. That, that leads to my follow-up. I guess, is there any color you could provide about how we should expect growth in the lending program over the near term?

Speaker #1: Yeah , we think that's an opportunity for us . You , Joe Fisher , walked earlier through the book . As it stands .

Tom Boyle: You know, we think that's an opportunity for us. You know, Joe Fisher walked earlier through the book as it stands, so certainly an opportunity to grow that going forward in support of our third-party management customers and the synergistic benefits, again, around the third-party platform, tenant insurance, as well as the capital component of the investment. So, something we look forward to growing from here.

Speaker #1: So certainly an opportunity to grow that going forward In support of our third party management customers and the synergistic benefits . Again , around the third party platform tenant insurance as well as the capital component of the investment .

Speaker #1: So, something we look forward to growing from here.

Hong Zhang: Yeah. Thank you.

Speaker #8: Thank you

Speaker #3: Thank you. Our next question comes from the line of Brendan Lynch with Barclays. Please proceed with your question.

Operator: Thank you. Our next question comes from the line of Brendan Lynch with Barclays. Please proceed with your question.

Speaker #9: Great . Thanks for taking my question . And Joe , congrats on a terrific career . And Tom and Joe , congrats on your new positions .

Brendan Lynch: Great. Thanks for taking my question. And, Joe, congrats on a terrific career, and Tom and Joe, congrats on your new positions. Maybe a question on what the primary KPIs you are measuring, when you think about the customer experience component of the platform enhancements and how we can measure, the progress that you're making?

Speaker #9: Maybe a question on what the primary KPIs you are measuring when you think about the customer experience component of the platform enhancements, and how we can measure the progress that you're making.

Speaker #1: Sure . I think there's a couple there . I think stepping back , obviously . PS next overall is about customer experience . It's about brand , but it's also about our financial and organic growth performance as well .

Tom Boyle: Sure. I think there, there's a couple there. I think, you know, stepping back, obviously, PS Next overall is about customer experience, it's about brand, but it's also about our, our financial and organic growth performance as well. So across that, that metric, you know, some customer metrics you can look at are certainly some of them operationally that you see, move-ins, move-outs, tenant retention, that you'll see from a financial standpoint. As we think about the platform overall, the focus is clearly around, where we're headed with organic growth and organic growth performance and outperformance over time.

Speaker #1: So across that that metric , you know some customer metrics you can look at are certainly some of them operationally that you see move ins , move outs , tenant retention that you'll see from a financial standpoint .

Speaker #1: As we think about the platform overall, the focus is clearly around where we're headed with organic growth, and organic growth performance and outperformance over time.

Speaker #9: Great, thank you. That's helpful. And then maybe just quickly on international growth, could you give us an update on what your appetite is to maybe test the waters in some of these international markets that you've looked at in the recent past?

Samuel Ohiaeri: ... Great. Thank you. That's helpful. And then maybe just quickly on international growth, just give us an update on what your appetite is to maybe test the waters in some of these international markets that you've looked at in the recent past.

Samuel Ohiomah: ... Great. Thank you. That's helpful. And then maybe just quickly on international growth, just give us an update on what your appetite is to maybe test the waters in some of these international markets that you've looked at in the recent past.

Speaker #1: Yeah , we continue to have appetite to explore international opportunity . Obviously , you've heard from us around Australia in the past . We have a strong presence in Western Europe charade platform .

Tom Boyle: Yeah, we continue to have appetite to explore international opportunity. Obviously, you've heard from us around Australia, in the past. We have a strong presence in Western Europe, with our Shurgard platform there. And there are markets around the world where the storage is growing as an industry, and customer demographics are supportive of a growing storage industry. So we evaluate those over time and are looking for the right entry points, in order to purchase a platform that will give us access to an expanded pie of both operational as well as capital allocation opportunities into growing storage markets. I will say, and we always caveat that with the US continues to be, by far, the deepest and most vibrant storage market, in the world, and we're not taking our eye off that ball.

Speaker #1: There . And there are markets around the world where the storage is growing as an industry and customer demographics are supportive of a growing storage industry .

Speaker #1: And so, we evaluate those over time and are looking for the right entry points in order to purchase a platform that will give us access to an expanded pie of both operational as well as capital allocation opportunities into growing storage markets.

Speaker #1: I will say , and we always caveat that with the US continues to be by far the deepest and most vibrant storage market in the world , and we're not taking our eye off that ball .

Speaker #1: But we do think there's an expanded pie opportunity internationally, but we have to find the right fit and the right platform.

Tom Boyle: We do think there's an expanded pie opportunity, internationally, but we have to find the right fit and the right platform.

Speaker #9: Maybe just a quick follow up on that . When you look at the international portfolios , that might be available , how do they compare to .

Samuel Ohiaeri: Maybe just a quick follow-up on that. When you look at the international portfolios that might be available, how do they compare to US platforms that might have a more advanced, data analytics and things of that nature? Like, what is the gap that the PSA platform has relative to the two different buckets of potential acquisitions?

Samuel Ohiomah: Maybe just a quick follow-up on that. When you look at the international portfolios that might be available, how do they compare to US platforms that might have a more advanced, data analytics and things of that nature? Like, what is the gap that the PSA platform has relative to the two different buckets of potential acquisitions?

Speaker #9: US platforms that might have a more advanced data analytics and things of that nature—what is the gap that the PSA platform has relative to the two different buckets of potential acquisitions?

Speaker #1: Yeah, I would say for the most part, the platforms internationally are of a smaller scale. And because of that, don't have some of the scale and platform and data advantages that we and others here in the U.S. have.

Tom Boyle: Yeah, I'd say it for the most part, the platforms internationally are of a smaller scale, and because of that, don't have some of the scale, platform, and data advantages that we and others here in the US have. And so I think that's probably a pretty clear opportunity. We see that in the US as well, as we think about smaller operating platforms and what we can do when we acquire or manage for companies that have a smaller platform to go. So there are real advantages to scale in this business. We've continuously seen that across our portfolio acquisitions over the last 4 or 5 years, and I would say international's right in that same wheelhouse.

Speaker #1: And so I think that's probably a pretty clear opportunity . And we see that in the US as well as we think about smaller operating platforms and , and what we can do when we acquire or manage for , for companies that that have a smaller platform to go .

Speaker #1: So there are real advantages to scale in this business. We've continuously seen that across our portfolio acquisitions over the last four or five years.

Speaker #1: And I would say internationals, right, in that same wheelhouse.

Speaker #9: Great . Thank you

Samuel Ohiaeri: Great. Thank you.

Samuel Ohiomah: Great. Thank you.

Speaker #3: Thank you. Our next question comes from the line of Eric Luca with Wells Fargo. Please proceed with your question.

Operator: Thank you. Our next question comes from the line of Eric Lubchow with Wells Fargo. Please proceed with your question.

Speaker #2: Great, thanks for squeezing me in. Maybe you could talk about the development business a little bit. Your development deliveries have slowed down a bit the past couple of years.

Eric Luebchow: Great, thanks for squeezing me in. Maybe you could talk about the development business a little bit. Your development deliveries have slowed down a bit the past couple of years, down to $300 million this year. And I guess, if you could talk about kind of whether that's due to the tougher lease-up environment, the higher cost to develop, anything else you could call out there?

Speaker #2: Down to $300 million this year. And I guess if you can talk about whether that's due to the tougher lease-up environment, the higher cost to develop, or anything else you could call out there.

Speaker #1: Yeah , sure . So the development business is one that that we're passionate about internally because of the ability for us to pick that submarket , pick the land site , design the building , create the unit mix , and then ultimately place it into our operating platform where we can earn more cash flow .

Tom Boyle: Yeah, sure. So the development business is one that we're passionate about internally because of the ability for us to pick that submarket, pick the land site, design the building, create the unit mix, and then ultimately place it into our operating platform where we can earn more cash flow. So it's one that we have a national team out looking for sites. It's also one that's been navigating through a challenging development environment, one with rising costs and obviously rents coming down in some of the markets with strong population growth. And so as we look at this year, we're anticipating a little less deliveries this year than last year, but we're focused on growing that business over time, to take advantage of a growing storage demand environment in many of the submarkets around the country.

Speaker #1: So it's one that that we have a national team out looking for sites . It's also one that's been navigating through a challenging development environment , one with rising costs and obviously rents coming down in some of the markets with with strong population growth And so as we look at this year , we're anticipating a little less deliveries this year than last year .

Speaker #1: But we're focused on growing that business over time to take advantage of a growing storage demand environment, and many of the submarkets around the country.

Speaker #1: And we view it as a very strong risk adjusted capital return . And so as we think about the value creation engine , no question , there's a strong focus on what it is we can do .

Tom Boyle: And we view it as a very strong risk-adjusted capital return. And so as we think about the value creation engine, no question, there's a strong focus on what it is we can do there, to grow that business over time.

Speaker #1: There to grow that business over time.

Speaker #2: Great . And then just one follow up . I know you touched a little bit on how you're using AI internally . As we think about the evolution of some of the large language models , potentially including ads over time and customer acquisition and the evolution from traditional paid search .

Eric Luebchow: Great. And then just one follow-up. I know you touched a little bit on how you're using AI internally. As we think about the evolution of some of the large language models, potentially including ads over time and customer acquisition, and the evolution from traditional paid search, how are you thinking about that, how that may evolve over the next couple of years as a lot of these models become more and more ubiquitous?

Speaker #2: How are you thinking about that? How might that evolve over the next couple of years? There’s a lot of these models becoming more and more ubiquitous.

Speaker #1: Yeah , no , I think I think they are , you know , I think consumers , myself included , probably lots of us on this phone call are using the large language models more and more in our daily lives .

Tom Boyle: Yeah, no, I think, I think they are. You know, I think consumers, myself included, probably lots of us on this phone call, are using the large language models more and more in our daily lives, and that speaks to the PS Next platform, and not only interacting with them through the LLMs, but also as customers land on our website, for instance, or otherwise they can interact with agents or on our app, et cetera. So we're excited about some of the initiatives we have going internally to take advantage of those LLMs and frankly, the customer expectations that continue to move towards that direction. And we think we have exciting things to share there, and we'll do that over the next 6 to 12 months.

Speaker #1: And that speaks to the PS Next platform. And not only interacting with them through the LMS, but also as they land on our website.

Speaker #1: For instance , or otherwise they can interact with with agents or on our app , etc. . And so we're excited about some of the initiatives we have going internally to take advantage of those LMS .

Speaker #1: And frankly , the customer expectations that continue to move towards towards that direction . And we think we have exciting things to share there .

Speaker #1: And we will do that over the next 6 to 12 months.

Speaker #2: Thank you

Eric Luebchow: Great. Thank you.

Speaker #3: Thank you. Our next question comes from the line of Samuel, Ohio, with Deutsche Bank. Please proceed with your question.

Operator: Thank you. Our next question comes from line of Samuel Ohiaeri with Deutsche Bank. Please proceed with your question.

Speaker #10: Yeah. Hey, guys. Thanks for taking my question. I wanted to focus on Shankh as the new chairman of the board and his commentary around execution.

Samuel Ohiaeri: Yeah. Hey, guys. Thanks for taking my question. I wanted to focus on Shank as the new chairman of the board and his commentary around execution, even in an environment of unremarkable growth. So I was wondering if you guys could just talk a bit about what opportunities exist in such an environment, and like, the idea of buying assets with low occupancy at attractive, at attractive bases ahead of an eventual turnaround in fundamentals. I guess if you guys could talk a bit about that, I'd really appreciate it.

Samuel Ohiomah: Yeah. Hey, guys. Thanks for taking my question. I wanted to focus on Shank as the new chairman of the board and his commentary around execution, even in an environment of unremarkable growth. So I was wondering if you guys could just talk a bit about what opportunities exist in such an environment, and like, the idea of buying assets with low occupancy at attractive, at attractive bases ahead of an eventual turnaround in fundamentals. I guess if you guys could talk a bit about that, I'd really appreciate it.

Speaker #10: Even in environment of unremarkable growth . So I was wondering if you guys could just talk a bit about what the what opportunities exist in such an environment and like the idea of buying assets with low occupancy at attractive at an attractive basis ahead of an eventual turnaround in fundamentals I guess if you guys could talk a bit about that , I'd really appreciate it .

Speaker #1: Sure . So , you know , obviously , Shanks quote speaks for itself . I think as we think about the opportunity ahead here .

Tom Boyle: Sure. So I, you know, obviously, Shankh's quote speaks for itself. I think as we think about the opportunity ahead here, we do think that there's an opportunity to deploy capital in an environment where industry fundamentals haven't been particularly exciting over the last couple of years, but we have confidence in where they're going, and we're investing in the people and the platform to be able to do that from here. And I think... You know, if you look at just, for instance, the basis on the assets that we purchased last year on an attractive basis, and we think overall valuations are attractive today.

Speaker #1: We do think that there is an opportunity to deploy capital in an environment where industry fundamentals haven't been particularly exciting over the last couple of years, but we have confidence in where they're going, and we're investing in the people and the platform to be able to do that from here.

Speaker #1: And I think the if you look at just for instance , the basis on the assets that we purchased last year are an attractive basis and , and , and we think overall valuations are attractive today , obviously , it depends on the submarket .

Tom Boyle: Obviously, it depends on the submarket, but we'll continue to deploy capital for the right opportunities, and we think that will benefit the platform over time from here. And we have a lot of confidence in the long-term fundamentals of storage, and as those return, that's great, but we're not waiting around for that. We have the opportunity to invest today, to benefit the platform over time.

Speaker #1: But we'll continue to deploy capital for the right opportunities, and we think that will benefit the platform over time. From here.

Speaker #1: And and we have a lot of confidence in the long term fundamentals of storage and as as those return . That's great . But we're not waiting around for that .

Speaker #1: We have the opportunity to invest today to benefit the platform over time.

Speaker #10: All right. I appreciate the time. That's all I have.

Eric Luebchow: All right. I appreciate the time. That's all I have.

Samuel Ohiomah: All right. I appreciate the time. That's all I have.

Speaker #3: Thank you, ladies and gentlemen. That concludes our question and answer session. I'll turn the floor back to Mr. Boyle for any final comments.

Operator: Thank you. Ladies and gentlemen, that concludes our question and answer session. I'll turn the floor back to Mr. Boyle for any final comments.

Speaker #1: Great. Thanks very much for everyone joining today. We're energized by the opportunity ahead and look forward to sharing more about PES 4.0 down the road.

Tom Boyle: Great. Thanks very much for everyone joining today. We're energized by the opportunity ahead and look forward to share more about PS 4.0, down the road. Thanks very much.

Speaker #1: Thanks very much .

Operator: Thank you. This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation.

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