1、USA|REITsEquity ResearchAugust 11,2025 JonathanPetersen*|Equity Analyst(212)284-1705|AhmedMehri*|Equity Associate+1(212)778-8456|Storage 2Q25 Earnings Wrap:DisappointingQuarter Across the BoardStorage 2Q disappointed(stocks down-5.1%in the past 2 weeks vs-1.9%RMZ)as EXR held guidance,while CUBE offe

2、red only a slight raise,despitebroad expectations of raises.NSAs guidance cut was deeper than expected,but investors shrugged it off given deep valuation discount.PSA performed bestfollowing an unexpected,although modest,guidance increase.Looking ahead,well be monitoring the pace of move-in rate dec

3、lines as we enter the slowerseason.Peak Leasing Season Below Expectations:Despite early signs of strong organic demand growth,evidenced by higher Google search volume for“storage near me”(up+45%YTD by May;strongestseasonal trend since 2021),spring leasing season ultimately fell short of expectations

4、.Leasingactivity peaked earlier than expected,as we noted in our storage forum.The housing market hasremained weak throughout 2025,approaching the multi-year trough last seen in 2023,which itselfwas the lowest level of activity since the GFC.That said,given how soft the housing market hasbeen this y

5、ear,we think spring leasing season performed better than what the underlying conditionswould have suggested,and notably better than last year.This was partly supported by slowingsupply growth,which we think is the primary driver behind the stabilization of KPIs.Looking ahead,while long-term interest

6、 rates have remained range-bound,and largely north of 4%for the past couple of years,potential Fed rate cuts on the short end of the curve could be thecatalyst for breaking that level.A sustained move below 4%on the long end(which would bringmortgage rates down below 6%)could unlock much needed mome