Self-Storage REITs Post Steadier Q1 2026 Results

ISS reports that the four largest publicly traded self-storage REITs entered 2026 with a similar message: fundamentals are stabilizing. First-quarter earnings from CubeSmart, Extra Space Storage, National Storage Affiliates Trust (NSAT), and Public Storage showed improving rental trends, resilient occupancy, and continued investment activity despite persistent operating cost pressure.

The sector spent much of 2024 and 2025 working through softer demand after the pandemic-era storage boom faded and new development surged. Now, operators say moderating supply growth and firmer move-in rates are helping performance rebound.

Self-Storage Demand Begins to Normalize

Executives across the sector pointed to improving customer activity and healthier pricing trends in Q1. CubeSmart CEO Chris Marr said same-store revenue growth turned positive during the quarter, while Extra Space Storage CEO Joe Margolis highlighted “broad-based improvement” in both new and existing customer rates.

That improvement remains gradual rather than explosive. Most operators still reported relatively flat occupancy compared to last year, but revenue growth returned to positive territory at several platforms. The trend suggests operators may finally be regaining pricing power after two years of heavy discounting and weaker leasing demand.

According to the companies’ earnings reports, occupancy remained relatively healthy across portfolios, ranging from 84.5% at NSAT to 93.4% at Public Storage during the quarter.

The Details

CubeSmart reported Q1 2026 funds from operations (FFO) of $144.2M, down slightly from $148.1M a year earlier. Same-store NOI across 623 facilities declined 1.5% year over year as operating expenses climbed 5.8%, though same-store revenue still increased 0.6%. The REIT averaged 89% occupancy and continued expanding its platform through acquisitions and third-party management growth.

The company also formed a joint venture with an affiliate of CBRE Investment Management to acquire an Arizona facility for $13.6M. CubeSmart added 33 properties to its management platform during the quarter, bringing its total managed portfolio to 854 facilities.

Extra Space Storage posted one of the stronger quarters among peers. Same-store revenue and NOI increased 1.7% and 1.2%, respectively, while core FFO rose 2% year over year to $2.04 per diluted share. Occupancy remained essentially flat at 93%.

The REIT acquired one facility for $12.5M and completed a development project with joint venture partners for $15.1M. Extra Space also continued scaling its third-party management business, adding 84 facilities during the quarter. The company now manages 2,324 properties for third parties and joint ventures combined.

NSAT delivered one of the largest earnings increases in the group. Net income rose 41.8% year over year to $27.7M, while core FFO increased 5.6% per share to $0.57. Same-store NOI rose 2%, aided by lower property operating expenses.

The company also finalized a major strategic shift during the quarter, entering into a merger agreement with Public Storage in March. The all-stock transaction values NSAT at approximately $10.5B and is expected to close in Q3 2026.

Public Storage, the sector’s largest operator, reported 2.4% core FFO growth and a 77.1% same-store NOI margin, up 40 basis points year over year. Average occupancy slipped 1.1% to 93.4%, but the REIT continued investing aggressively in acquisitions and development.

The company purchased three facilities for $20.8M during the quarter and has another 18 facilities under contract for $186.3M. Public Storage also has 3.5M SF of projects under development or expansion at a projected total cost of roughly $618.4M.

Third-Party Management Keeps Expanding

Third-party management platforms continue expanding across the self-storage REIT sector. Operators use management agreements and joint ventures to grow fee income and market share. This strategy also limits acquisition risk.

Extra Space leads the sector with more than 2,300 managed properties. Meanwhile, CubeSmart and Public Storage also expanded their platforms during Q1. Higher interest rates have made large acquisitions harder to underwrite. As a result, management partnerships have become more attractive.

Development activity also looks more disciplined than during the recent construction boom. Public Storage remains one of the few major operators pursuing large development pipelines. Meanwhile, several peers have shifted toward selective projects and joint ventures.

Why It Matters

The self-storage sector is showing signs of recovery after a prolonged normalization period. During the pandemic, operators benefited from unusually strong migration patterns, housing turnover, and consumer demand, which pushed rents and occupancy to record highs. That momentum faded as inflation, higher interest rates, and a surge of new supply pressured fundamentals.

Q1 2026 results suggest the market may be finding equilibrium. Rental growth is improving, while occupancy remains relatively stable. Supply pressures have also eased in several markets. The shift follows a difficult stretch for operators, as transaction volume and investor demand slowed across the sector during 2024.

The pending Public Storage acquisition of NSAT could further reshape the competitive landscape by increasing consolidation among institutional operators.

What’s Next

Investors will be watching whether improving rental trends continue through the peak summer leasing season. Operators have signaled cautious optimism, but expense growth and consumer sensitivity to pricing remain risks.

Supply moderation could become the biggest catalyst for the sector over the next 12 months. If fewer new projects deliver into the market while demand remains stable, self-storage REITs may regain stronger pricing power heading into 2027.

M&A activity could also accelerate. Public Storage’s proposed acquisition of NSAT may encourage additional consolidation as larger operators pursue scale, management contracts, and operational efficiencies in a more normalized storage market.