Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

CAUTIONARY LANGUAGE

The following discussion and analysis should be read in conjunction with our unaudited “Condensed Consolidated Financial Statements” and the “Notes to Condensed Consolidated Financial Statements (unaudited)” appearing elsewhere in this report and the “Consolidated Financial Statements,” “Notes to Consolidated Financial Statements” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” contained in our Form 10-K for the year ended December 31, 2024. We make statements in this section that are forward-looking statements within the meaning of the federal securities laws. For a complete discussion of forward-looking statements, see the section in this Form 10-Q entitled “Statement on Forward-Looking Information.”

CRITICAL ACCOUNTING POLICIES

Our discussion and analysis of our financial condition and results of operations are based on our unaudited condensed consolidated financial statements contained elsewhere in this report, which have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). Our notes to the unaudited condensed consolidated financial statements contained elsewhere in this report and the audited financial statements contained in our Form 10-K for the year ended December 31, 2024 describe the significant accounting policies essential to our unaudited condensed consolidated financial statements. Preparation of our financial statements requires estimates, judgments and assumptions. We believe that the estimates, judgments and assumptions that we have used are appropriate and correct based on information available at the time they were made. These estimates, judgments and assumptions can affect our reported assets and liabilities as of the date of the financial statements, as well as the reported revenues and expenses during the period presented. If there are material differences between these estimates, judgments and assumptions and actual facts, our financial statements may be affected.

In many cases, the accounting treatment of a particular transaction is specifically dictated by GAAP and does not require our judgment in its application. There are areas in which our judgment in selecting among available alternatives would not produce a materially different result, but there are some areas in which our judgment in selecting among available alternatives would produce a materially different result. See the notes to the unaudited condensed consolidated financial statements that contain additional information regarding our accounting policies and other disclosures.

OVERVIEW

We are a fully integrated, self-administered and self-managed real estate investment trust (“REIT”), formed to own, operate, manage, acquire, develop and redevelop self-storage properties (“stores”). We derive substantially all of our revenues from our two segments: self-storage operations and tenant reinsurance. Primary sources of revenue for our self-storage operations segment include rents received from tenants under leases at stores that are wholly-owned and in consolidated joint ventures. Our operating results depend materially on our ability to lease available self-storage units, to actively manage unit rental rates, and on the ability of our tenants to make required rental payments. Consequently, management spends a significant portion of their time maximizing cash flows from our diverse portfolio of stores. Revenue from our tenant reinsurance segment consists of insurance revenues from the reinsurance of risks relating to the loss of goods stored by tenants in our stores.

Our stores are generally situated in highly visible locations clustered around large population centers. The clustering of our assets around these population centers enables us to reduce our operating costs through economies of scale. To maximize the performance of our stores, we employ industry-leading revenue management systems. Developed by our management team, these systems enable us to analyze, set and adjust rental rates daily across our portfolio in order to respond to changing market conditions. We believe our systems and processes allow us to more proactively manage revenues.

We operate in competitive markets, often where consumers have multiple stores from which to choose. Competition has impacted, and will continue to impact, our store results. We experience seasonal fluctuations in occupancy levels, with occupancy levels generally higher in the summer months due to increased moving activity. We believe that we are able to respond quickly and effectively to changes in local, regional and national economic conditions by adjusting rental rates through the combination of our revenue management team and our industry-leading technology systems. We consider a store to be in the lease-up stage after it has been issued a certificate of occupancy, but before it has achieved stabilization. We consider a store to be stabilized once it has been open for three years or has sustained average square foot occupancy of 80% or more for one calendar year.

PROPERTIES

As of September 30, 2025, we owned or had ownership interests in 2,427 operating stores. Of these stores, 2,005 are wholly-owned, 11 are in consolidated joint ventures, and 411 are in unconsolidated joint ventures. In addition, we managed an additional 1,811 stores for third parties bringing the total number of stores which we own and/or manage to 4,238. These stores are located in 43 states and Washington, D.C. The majority of our stores are clustered around large population centers. The clustering of assets around these population centers enables us to reduce our operating costs through economies of scale. Our acquisitions have given us an increased scale in many core markets as well as a foothold in many markets where we had no previous presence.

As of September 30, 2025, approximately 2,460,000 tenants were leasing storage units at the operating stores that we own and/or manage, primarily on a month-to-month basis, providing the flexibility to increase rental rates over time as market conditions permit. Existing tenants generally receive rate increases at least annually, for which no direct correlation has been drawn to our vacancy trends. Although leases are short-term in duration, the typical tenant tends to remain at our stores for an extended period of time. For same-stores as of September 30, 2025, the average length of stay for tenants who have vacated was approximately 17.0 months.

Our store portfolio is made up of different types of construction and building configurations. Most often sites are what we consider “hybrid” stores, a mix of drive-up and multi-floor buildings.

The following table presents additional information regarding net rentable square feet and the number of stores by state:

			September 30, 2025
			REIT Owned						Joint Venture Owned						Managed						Total
Location			Property Count (1)			Net Rentable Square Feet			Property Count			Net Rentable Square Feet			Property Count			Net Rentable Square Feet			Property Count			Net Rentable Square Feet
Alabama			38			2,994,956			2			150,859			21			1,472,898			61			4,618,713
Arizona			50			3,874,813			25			2,027,302			68			5,431,400			143			11,333,515
Arkansas			—			—			—			—			5			545,092			5			545,092
California			225			18,574,780			43			3,205,290			153			14,302,884			421			36,082,954
Colorado			27			1,889,223			13			937,347			39			2,916,493			79			5,743,063
Connecticut			23			1,755,606			8			713,752			17			1,202,244			48			3,671,602
Delaware			—			—			1			76,633			6			444,209			7			520,842
Florida			267			20,606,141			41			3,246,730			241			18,741,023			549			42,593,894
Georgia			122			9,344,312			16			1,335,815			71			5,512,900			209			16,193,027
Hawaii			14			941,486			—			—			6			389,426			20			1,330,912
Idaho			2			131,954			—			—			6			753,527			8			885,481
Illinois			110			7,829,795			8			636,062			61			4,930,038			179			13,395,895
Indiana			94			4,175,357			1			57,617			28			2,165,833			123			6,398,807
Iowa			—			—			—			—			1			86,680			1			86,680
Kansas			1			50,314			2			108,346			3			236,643			6			395,303
Kentucky			15			1,096,773			1			51,641			15			1,130,167			31			2,278,581
Louisiana			10			771,298			1			88,870			16			1,183,020			27			2,043,188
Maine			5			350,827			—			—			12			798,821			17			1,149,648
Maryland			45			3,590,014			8			629,067			58			4,398,187			111			8,617,268
Massachusetts			67			4,227,104			16			986,186			49			3,076,034			132			8,289,324
Michigan			11			845,017			4			308,327			15			1,178,380			30			2,331,724
Minnesota			7			586,650			8			645,878			13			903,058			28			2,135,586
Mississippi			7			563,769			—			—			7			601,638			14			1,165,407
Missouri			29			2,398,226			7			503,124			26			2,022,977			62			4,924,327
Nebraska			—			—			—			—			5			445,785			5			445,785
Nevada			34			3,030,810			10			916,235			21			1,879,678			65			5,826,723
New Hampshire			17			1,283,565			2			83,965			13			647,923			32			2,015,453
New Jersey			91			7,276,558			32			2,533,887			84			6,674,488			207			16,484,933
New Mexico			12			761,664			10			681,143			17			1,234,207			39			2,677,014
New York			83			6,029,967			26			2,125,655			97			6,837,558			206			14,993,180
North Carolina			56			4,112,119			5			395,826			62			4,930,870			123			9,438,815
Ohio			50			3,461,189			5			326,938			26			2,156,054			81			5,944,181
Oklahoma			4			270,003			—			—			39			2,832,714			43			3,102,717
Oregon			8			548,724			2			166,638			7			479,342			17			1,194,704
Pennsylvania			33			2,559,099			10			786,885			68			5,158,906			111			8,504,890
Rhode Island			6			349,242			1			95,844			6			483,146			13			928,232
South Carolina			48			3,475,930			1			94,552			51			4,281,791			100			7,852,273
Tennessee			33			2,657,139			16			1,090,115			30			2,115,849			79			5,863,103
Texas			269			21,742,372			66			5,094,381			217			17,720,563			552			44,557,316
Utah			10			733,196			—			—			46			3,619,213			56			4,352,409
Virginia			74			6,044,695			9			699,744			40			2,793,140			123			9,537,579
Washington			16			1,280,479			1			77,490			19			1,509,192			36			2,867,161
Washington, DC			1			100,103			1			104,001			6			534,407			8			738,511
Wisconsin			2			187,365			9			860,927			20			1,783,415			31			2,831,707
Totals			2,016			152,502,634			411			31,843,072			1,811			142,541,813			4,238			326,887,519

(1) Includes 11 stores in consolidated joint ventures.

RESULTS OF OPERATIONS

Amounts in thousands, except store and share data

Comparison of the three and nine months ended September 30, 2025 and 2024

Overview

Results for the three and nine months ended September 30, 2025 included the operations of 2,427 stores (2,005 wholly-owned, 11 in consolidated joint ventures, and 411 in joint ventures accounted for using the equity method) compared to the results for the three and nine months ended September 30, 2024, which included the operations of 2,401 stores (1,934 wholly-owned, seven in consolidated joint ventures, and 460 in joint ventures accounted for using the equity method).

Revenues

The following table presents information on revenues earned for the periods indicated:

			For the Three Months Ended September 30,																								For the Nine Months Ended September 30,
			2025						2024						$ Change						% Change						2025						2024						$ Change						% Change
Revenues:
Property rental			$	735,581					$	710,874					$	24,707					3.5		%				$	2,160,965					$	2,096,018					$	64,947					3.1		%
Tenant reinsurance			90,341						84,048						6,293						7.5		%				263,625						249,100						14,525						5.8		%
Management fees and other income			32,538						29,882						2,656						8.9		%				95,485						89,888						5,597						6.2		%
Total revenues			$	858,460					$	824,804					$	33,656					4.1		%				$	2,520,075					$	2,435,006					$	85,069					3.5		%

**Property rental—**The increase in property rental revenues for the three and nine months ended September 30, 2025 was primarily the result of an increase of $32,063 and $78,672, respectively, associated with acquisitions completed in 2024 and acquisitions completed in the first nine months of 2025. The increase in revenue resulting from these acquisitions was partially offset by decreases in rental revenue of $5,882 and $15,601, respectively, due to property dispositions for the three and nine months ended September 30, 2025. We acquired 58 wholly-owned stores and disposed of six wholly-owned stores in 2024, and we acquired 46 wholly-owned stores and disposed of 12 wholly-owned stores during the nine months ended September 30, 2025.

**Tenant reinsurance—**The increase in tenant reinsurance revenues was due primarily to an increase in the number of stores operated. We operated 4,238 stores at September 30, 2025 compared to 3,862 stores at September 30, 2024.

**Management fees and other income—**Management fees and other income primarily represent the fees collected for our management of stores owned by third parties and unconsolidated joint ventures and other transaction fee income. The increase for the three and nine months ended September 30, 2025 was due to both an increase in the number of stores managed and an increase in the overall revenue of stores under management when compared to the same period last year. As of September 30, 2025, we managed 2,222 stores for unconsolidated joint ventures and third parties, compared to 1,921 stores as of September 30, 2024.

Expenses

The following table presents information on expenses for the periods indicated:

			For the Three Months Ended September 30,																								For the Nine Months Ended September 30,
			2025						2024						$ Change						% Change						2025						2024						$ Change						% Change
Expenses:
Property operations			$	235,486					$	209,035					$	26,451					12.7		%				$	686,689					$	610,455					$	76,234					12.5		%
Tenant reinsurance			17,781						17,510						271						1.5		%				51,842						55,646						(3,804)						(6.8)		%
General and administrative			43,479						39,750						3,729						9.4		%				134,405						123,373						11,032						8.9		%
Depreciation and amortization			177,466						195,046						(17,580)						(9.0)		%				535,088						586,821						(51,733)						(8.8)		%
Total expenses			$	474,212					$	461,341					$	12,871					2.8		%				$	1,408,024					$	1,376,295					$	31,729					2.3		%

**Property operations—**The increase in property operations expense during the three and nine months ended September 30, 2025 consists primarily of an increase of $14,738 and $38,855, respectively, related to acquisitions completed in 2024 and acquisitions completed in the first nine months of 2025. We acquired 58 wholly-owned stores in 2024 and an additional 46 wholly-owned stores during the nine months ended September 30, 2025. Additionally, for the three and nine months ended September 30, 2025, there was an increase of $9,184 and $31,215, respectively, at our same-store properties primarily due to an increase in payroll and benefits, marketing, repairs and maintenance, and property tax expenses.

**Tenant reinsurance—**Tenant reinsurance expense represents the costs that are incurred to provide tenant reinsurance and is subject to volatility due to increased claims arising when significant events occur at stores.

**General and administrative—**General and administrative expenses primarily include all expenses not directly related to our stores, including corporate payroll, office expense, office rent, travel and professional fees. These expenses are recognized as incurred. Our overall general and administrative expense increased primarily as a result of our increased size through acquisitions and growth in our managed portfolio.

**Depreciation and amortization—**We amortize to expense intangible assets-customer intangibles on a straight-line basis over the average period that a tenant is expected to utilize the facility (currently estimated at 18 months). Depreciation and amortization expense decreased for both the three and nine month periods, primarily due to the customer intangibles associated with our merger with Life Storage being fully expensed in January of this year.

Other Revenues and Expenses

The following table presents information on other revenues and expenses for the periods indicated:

			For the Three Months Ended September 30,																								For the Nine Months Ended September 30,
			2025						2024						$ Change						% Change						2025						2024						$ Change						% Change
Loss on real estate assets held for sale and sold, net			$	(105,128)					$	(8,961)					$	(96,167)					1,073.2		%				$	(70,231)					$	(63,620)					$	(6,611)					10.4		%
Interest expense			(149,650)						(142,855)						(6,795)						4.8		%				(438,177)						(412,875)						(25,302)						6.1		%
Non-cash interest expense related to amortization of discount on unsecured senior notes, net			(12,086)						(11,005)						(1,081)						9.8		%				(35,169)						(32,563)						(2,606)						8.0		%
Interest income			43,588						34,947						8,641						24.7		%				124,553						89,746						34,807						38.8		%
Equity in earnings and dividend income from unconsolidated real estate entities			15,669						16,246						(577)						(3.6)		%				51,884						48,508						3,376						7.0		%
Equity in earnings of unconsolidated real estate ventures - gain on sale of real estate assets and sale of a joint venture interest			9,354						13,730						(4,376)						(31.9)		%				9,354						13,730						(4,376)						(31.9)		%
Impairment of Life Storage trade name			—						(51,763)						51,763						(100.0)		%				—						(51,763)						51,763						(100.0)		%
Income tax expense			(11,962)						(10,857)						(1,105)						10.2		%				(32,591)						(27,443)						(5,148)						18.8		%
Total other revenues & expenses, net			$	(210,215)					$	(160,518)					$	(49,697)					31.0		%				$	(390,377)					$	(436,280)					$	45,903					(10.5)		%

**Loss on real estate assets held for sale and sold, net—**As of September 30, 2025, we had 29 properties classified as held for sale. Of the 29 stores, 27 had an estimated fair value, net of selling costs, less than the carrying value of the assets. During the three and nine months ended September 30, 2025, we recorded estimated net losses of $105,128 and $108,887, respectively. Additionally, we completed the sale of 12 previously held for sale stores, resulting in a net gain of $38,656, which partially offset the loss recorded for the nine months ended September 30, 2025. As of September 30, 2024, we had 17 stores classified as held for sale. Of the 17 stores, nine had an estimated fair value, net of selling costs, less than the carrying value of the assets. During the three and nine months ended September 30, 2024, we recorded estimated losses of $8,961 and $63,620, respectively.

**Interest expense—**The increase in interest expense during the three and nine months ended September 30, 2025 was primarily the result of higher outstanding debt. As of September 30, 2025, we had approximately $13,162,058 in total face value of debt, compared to approximately $11,827,208 as of September 30, 2024.

**Non-cash interest expense related to amortization of discount on unsecured senior notes, net—**Represents the amortization of the discount assigned to the fair value of the Life Storage unsecured senior notes assumed as part of the Life Storage Merger and net premium from bond offerings, offset by the discount from assumed debt.

**Interest income—**Interest income represents interest earned on variable interest rate bridge loans, debt securities and on notes receivable from Common Operating Partnership unit holders. The increase in interest income during the three and nine months ended September 30, 2025 was primarily the result of an increase in the amount of bridge loans outstanding. The balance of bridge loans was $1,544,719 as of September 30, 2025, compared to $1,032,244 as of September 30, 2024.

**Equity in earnings and dividend income from unconsolidated real estate entities—**Equity in earnings of unconsolidated real estate entities represents the income earned through our ownership interests in unconsolidated joint ventures. In these joint ventures, we and our joint venture partners generally receive a preferred return on our invested capital. To the extent that cash or profits in excess of these preferred returns are generated, we receive a higher percentage of the excess cash or profits. The increase for the nine months ended September 30, 2025 is primarily due to the transaction in November 2024 in which we acquired additional ownership interest in the HF1 Sovran HHF Storage Holdings LLC and HF2 Sovran HHF Storage Holdings II LLC from our partner in the unconsolidated joint ventures. The transaction increased our equity ownership percentages from 20% and 15%, respectively, to 49% in each unconsolidated joint venture. The decrease for the three months ended September 30, 2025 is primarily due to the transfer and distribution of membership interests in the PR II EXR JV LLC joint venture in March 2025, the acquisition of our partners’ membership interests in the ESS-NYFL JV LP and ESS CA-TIVS JV LP joint ventures in April 2025, and the sale of our membership interest in the Life Storage Spacemax LLC joint venture in July 2025. The number of stores in unconsolidated joint ventures in which we have ownership interests was 411 as of September 30, 2025, compared to 460 as of September 30, 2024. Dividend income represents dividends from our investment in preferred stock of SmartStop and its affiliates.

Equity in earnings of unconsolidated real estate ventures - gain on sale of real estate assets and sale of a joint venture interest—The net gain of $9,354 for the three and nine months ended September 30, 2025 is due to the sale of our membership interest in the Life Storage Spacemax LLC joint venture, which held six properties, in July 2025. During the three months ended September 30, 2024, the ESS Bristol Investments LLC joint venture sold five of its eight stores to one of our unconsolidated joint ventures, and we recognized a gain of $10,324 for our pro rata share of the transaction. Additionally, we sold our membership interest in the Alan Jathoo JV LLC unconsolidated joint venture, which held nine stores, to our partner and recognized a gain of $3,406 as a result of the transaction.

Impairment of Life Storage trade name—During the three months ended September 30, 2024, we decided to operate all our stores under a single brand. As a result of that decision, we deemed the Life Storage trade name as an intangible asset to be impaired and recognized a loss for the full value of the asset.

Income tax expense—The increase in income tax expense for the three and nine months ended September 30, 2025 was primarily the result of an increase in book income and a decrease in permanent tax deductions related to stock awards.

FUNDS FROM OPERATIONS

Funds from operations (“FFO”) provides relevant and meaningful information about our operating performance that is necessary, along with net income and cash flows, for an understanding of our operating results. We believe FFO is a meaningful disclosure as a supplement to net earnings. Net earnings assume that the values of real estate assets diminish predictably over time as reflected through depreciation and amortization expenses. The values of real estate assets fluctuate due to market conditions, and we believe FFO more accurately reflects the value of our real estate assets. FFO is defined by the National Association of Real Estate Investment Trusts, Inc. (“NAREIT”) as net income computed in accordance with GAAP, excluding gains or losses on sales of operating stores and impairment write-downs of depreciable real estate assets, plus real estate related depreciation and amortization and after adjustments to record unconsolidated partnerships and joint ventures on the same basis. We believe that to further understand our performance, FFO should be considered along with the reported net income and cash flows in accordance with GAAP, as presented in our condensed consolidated financial statements. FFO should not be considered a replacement of net income computed in accordance with GAAP.

The computation of FFO may not be comparable to FFO reported by other REITs or real estate companies that do not define the term in accordance with the current NAREIT definition or that interpret the current NAREIT definition differently. FFO does not represent cash generated from operating activities determined in accordance with GAAP and should not be

considered as an alternative to net income as an indication of our performance, as an alternative to net cash flow from operating activities, as a measure of our liquidity, or as an indicator of our ability to make cash distributions.

The following table presents the calculation of FFO for the periods indicated:

			For the Three Months Ended September 30,												For the Nine Months Ended September 30,
			2025						2024						2025						2024
Net income attributable to common stockholders			$	165,998					$	193,210					$	686,604					$	592,194
Adjustments:
Real estate depreciation			164,834						154,573						488,711						462,162
Amortization of intangibles			3,037						28,160						17,341						85,581
Loss on real estate assets held for sale and sold, net			105,128						8,961						70,231						63,620
Unconsolidated joint venture real estate depreciation and amortization			7,466						7,922						23,896						23,771
Unconsolidated joint venture gain on sale of real estate assets			(9,354)						(13,730)						(9,354)						(13,730)
Income allocated to Operating Partnership noncontrolling interests			8,035						9,735						35,070						30,237
Funds from operations attributable to common stockholders and unit holders			$	445,144					$	388,831					$	1,312,499					$	1,243,835

SAME-STORE RESULTS

Our same-store pool for the periods presented consists of 1,829 stores that are wholly-owned and operated and that were stabilized by the first day of the earliest calendar year presented. We consider a store to be stabilized once it has been open for three years or has sustained average square foot occupancy of 80% or more for one calendar year. We believe that by providing same-store results from a stabilized pool of stores, with accompanying operating metrics including but not limited to occupancy, rental revenue growth, operating expense growth, net operating income growth, etc., stockholders and potential investors are able to evaluate operating performance without the effects of non-stabilized occupancy levels, rent levels, expense levels, acquisitions or completed developments. Same-store results should not be used as a basis for future same-store performance or for the performance of our stores as a whole. The following table presents operating data for our same-store portfolio.

			For the Three Months Ended September 30,												Percent						For the Nine Months Ended September 30,												Percent
			2025						2024						Change						2025						2024						Change
Same-store rental revenues
Net rental income			$	647,739					$	647,886					0.0		%				$	1,924,023					$	1,918,385					0.3		%
Other operating income			26,243						27,465						(4.4)		%				75,338						80,379						(6.3)		%
Total same-store rental revenues			673,982						675,351						(0.2)		%				1,999,361						1,998,764						0.0		%
Same-store operating expenses
Payroll and benefits			41,921						38,859						7.9		%				123,134						119,989						2.6		%
Marketing			17,818						13,967						27.6		%				48,904						46,841						4.4		%
Office expense			20,251						20,158						0.5		%				61,110						61,284						(0.3)		%
Property operating expense			18,893						18,387						2.8		%				54,234						52,867						2.6		%
Repairs and maintenance			13,759						12,642						8.8		%				42,002						39,650						5.9		%
Property taxes			75,364						74,210						1.6		%				226,715						203,060						11.6		%
Insurance			8,731						7,741						12.8		%				24,463						23,255						5.2		%
Total same-store operating expenses			196,737						185,964						5.8		%				580,562						546,946						6.1		%
Same-store net operating income			$	477,245					$	489,387					(2.5)		%				$	1,418,799					$	1,451,818					(2.3)		%
Same-store square foot occupancy as of period end			93.7%						93.6%												93.7%						93.6%
Average same-store square foot occupancy			94.1%						93.8%												93.9%						93.2%
Properties included in same-store			1,829						1,829												1,829						1,829

The following table presents additional information for our same-store portfolio:

			For the Three Months Ended September 30,												For the Nine Months Ended September 30,
Same-store portfolio			2025						2024						2025						2024
Average annual rent per occupied square foot, net of discounts and bad debt			$	19.90					$	20.03					$	19.72					$	19.89
New leases average annual rent per square foot			$	13.66					$	12.61					$	13.38					$	12.88
Average discounts as a percentage of rental revenues			2.4		%				2.0		%				2.1		%				1.9		%

The following table presents a reconciliation of same-store net operating income to net income as presented on our condensed consolidated statements of operations for the periods indicated:

			For the Three Months Ended September 30,												For the Nine Months Ended September 30,
			2025						2024						2025						2024
Net Income			$	174,033					$	202,945					$	721,674					$	622,431
Adjusted to exclude:
Loss on real estate assets held for sale and sold, net			105,128						8,961						70,231						63,620
Equity in earnings and dividend income from unconsolidated real estate entities			(15,669)						(16,246)						(51,884)						(48,508)
Equity in earnings of unconsolidated real estate ventures - gain on sale of real estate assets and sale of a joint venture interest			(9,354)						(13,730)						(9,354)						(13,730)
Interest expense			149,650						142,855						438,177						412,875
Non-cash interest expense related to amortization of discount on unsecured senior notes, net			12,086						11,005						35,169						32,563
Depreciation and amortization			177,466						195,046						535,088						586,821
Income tax expense			11,962						10,857						32,591						27,443
General and administrative			43,479						39,750						134,405						123,373
Impairment of Life Storage trade name			—						51,763						—						51,763
Management fees, other income and interest income			(76,126)						(64,829)						(220,038)						(179,634)
Net tenant insurance			(72,560)						(66,538)						(211,783)						(193,454)
Non same-store rental revenue			(61,599)						(35,523)						(161,604)						(97,254)
Non same-store operating expense			38,749						23,071						106,127						63,509
Total same-store net operating income			$	477,245					$	489,387					$	1,418,799					$	1,451,818
Same-store rental revenues			$	673,982					$	675,351					$	1,999,361					$	1,998,764
Same-store operating expenses			196,737						185,964						580,562						546,946
Same-store net operating income			$	477,245					$	489,387					$	1,418,799					$	1,451,818

CASH FLOWS

Cash flows from operating activities for the nine months ended September 30, 2025 increased when compared to the same period in the prior year. Cash flows used in investing activities relate primarily to our acquisition and development of new stores, sales of stores, investments in unconsolidated real estate entities, and notes receivable from bridge loans and fluctuate depending on our actions in those areas. Cash flows from financing activities depend primarily on our debt and equity financing activities. A summary of cash flows along with significant components are as follows:

			For the Nine Months Ended September 30,
			2025						2024
Net cash provided by operating activities			$	1,482,396					$	1,479,151
Net cash used in investing activities			(697,662)						(877,503)
Net cash used in financing activities			(811,803)						(612,406)
Significant components of net cash flow included:
Net income			$	721,674					$	622,431
Depreciation and amortization			535,088						586,821
Acquisition and development of real estate assets			(698,614)						(461,633)
Proceeds from sale of real estate assets			168,747						4,415
Investment in unconsolidated real estate entities			(107,178)						(7,175)
Return of investment in unconsolidated real estate ventures			231,130						12,999
Issuance of notes receivable, net of sales and principal payments			(276,043)						(410,396)
Net proceeds (payments) from unsecured term loans, senior notes, revolving lines of credit and commercial paper			(1,344,259)						(520,534)
Proceeds from issuance of public bonds, net			1,650,000						1,000,000
Dividends paid on common stock			(1,031,930)						(1,031,044)

We believe that cash flows generated by operations, along with our existing cash and cash equivalents, the availability of funds under our existing lines of credit, and our access to capital markets will be sufficient to meet all of our reasonably anticipated cash needs during the next twelve months. These cash needs include operating expenses, monthly debt service payments, acquisitions, funding for the bridge loan program, recurring capital expenditures, building redevelopments and expansions, distributions to unit holders and dividends to stockholders necessary to maintain our REIT qualification.

We expect to generate positive cash flow from operations in 2025, and we consider projected cash flows in our sources and uses of cash. These cash flows are principally derived from rents paid by our tenants. A significant deterioration in projected cash flows from operations could cause us to increase our reliance on available funds under our existing lines of credit, curtail planned capital expenditures, or seek other additional sources of financing.

LIQUIDITY AND CAPITAL RESOURCES

As of September 30, 2025, we had $111,931 available in cash and cash equivalents. Our cash and cash equivalents are held in accounts managed by third party financial institutions and consist of invested cash and cash in our operating accounts. During 2025 and 2024, we experienced no loss or lack of access to our cash and cash equivalents; however, there can be no assurance that access to our cash and cash equivalents will not be impacted by adverse conditions in the financial markets.

The following table presents information relating to our debt:

			September 30, 2025
Total face value of debt			$	13,162,058
Total enterprise value ratio			29.6		%
Total fixed-rate debt and other instruments to total debt			83.8% (1)
Weighted average interest rate of total debt			4.4		%
(1) $11,025,665 total fixed-rate debt including $952,000 on which we have interest rate swaps that have been included as fixed-rate debt.

We expect to fund our short-term liquidity requirements, including operating expenses, recurring capital expenditures, dividends to stockholders, distributions to holders of Operating Partnership units and interest on our outstanding indebtedness, out of our operating cash flow, cash on hand and borrowings under our revolving lines of credit and commercial paper. In addition, we are pursuing additional sources of financing based on anticipated funding needs and growth assumptions.

In November 2024, we established our commercial paper program, under which we may issue, repay and re-issue short-term unsecured commercial paper notes. The aggregate principal amount outstanding under the program at any time cannot exceed $1,000,000, and the net proceeds of the commercial paper notes are expected to be used for general corporate purposes. The maturities of the notes generally range from overnight to three months, with a maximum of up to 13 months. The commercial paper notes are issued under customary terms in the commercial paper market and are issued at a discount from par or, alternatively, can be issued at par and bear varying interest rates on a fixed or floating basis. At any point in time, we expect to maintain available commitments under our Credit Facilities in an amount at least equal to the amount of commercial paper notes outstanding. At September 30, 2025, we had $540,000 in issuances outstanding under the commercial paper program.

We hold a BBB+/Stable rating from S&P, which was upgraded from BBB/Stable in July 2023 in connection with the Life Storage Merger, and a Baa2/Positive rating from Moody’s Investors Service. We intend to manage our balance sheet to maintain these ratings. Certain of our real estate assets are pledged as collateral for our debt. As of September 30, 2025, we had a total of 1,786 unencumbered stores as defined by our public bonds. Our unencumbered asset value was calculated as $30,315,349 and our total asset value was calculated as $35,717,864 according to the calculations as defined by our public bonds. We are subject to certain restrictive covenants relating to our outstanding debt. We were in compliance with all financial covenants at September 30, 2025.

Our liquidity needs consist primarily of operating expenses, monthly debt service payments, recurring capital expenditures, dividends to stockholders and distributions to unit holders necessary to maintain our REIT qualification. We may from time to time seek to repurchase our outstanding debt, shares of common stock or other securities in open market purchases, privately negotiated transactions or otherwise. Such repurchases, if any, will depend on prevailing market conditions, our liquidity requirements, contractual restrictions and other factors. In addition, we evaluate, on an ongoing basis, the merits of strategic acquisitions and other relationships, which may require us to raise additional funds. We may also use Operating Partnership units as currency to fund acquisitions from self-storage owners.

On April 15, 2024, we entered into an equity distribution agreement (the “Equity Distribution Agreement”) with certain sales agents and forward purchasers named therein. Under the terms of the Equity Distribution Agreement, we may issue and sell, and the forward purchasers may sell, from time to time through or to the sales agents, shares of our common stock having an aggregate offering price of up to $800,000. The shares of common stock will be offered pursuant to our effective registration statement on Form S-3 (Registration Statement No. 333-278690) previously filed with and declared effective by the Securities and Exchange Commission (the “SEC”) and a prospectus supplement and accompanying prospectus, filed with the SEC. As of September 30, 2025, no shares have been sold under the Equity Distribution Agreement, which we refer to as our “at the market” equity program.

OFF-BALANCE SHEET ARRANGEMENTS

Except as disclosed in the notes to our consolidated financial statements of our most recently filed Annual Report on Form 10-K, we do not currently have any relationships with unconsolidated entities or financial partnerships, such as entities often referred to as structured finance or special purposes entities, which typically are established for the purpose of facilitating off-balance sheet arrangements or other contractually narrow or limited purposes. Further, except as disclosed in the notes to our condensed consolidated financial statements, we have not guaranteed any obligations of unconsolidated entities, nor do we have any commitments or intent to provide funding to any such entities. Accordingly, we are not materially exposed to any financing, liquidity, market or credit risk that could arise if we had engaged in these relationships.

SEASONALITY

The self-storage business is subject to seasonal fluctuations. A greater portion of revenues and profits is typically realized from May through September. Historically, our highest level of occupancy has been at the end of July, while our lowest level of occupancy has been in late February and early March. Results for any quarter may not be indicative of the results that may be achieved for the full fiscal year.

RECENT TAX LEGISLATION

On July 4, 2025, the One Big Beautiful Bill Act (the “OBBBA”) was enacted into law, which included certain modifications to U.S. tax law, including certain provisions that affect the taxation of REITs and their investors. The OBBBA permanently extended certain provisions that were enacted in the Tax Cuts and Jobs Act of 2017. Such extensions included the

permanent extension of the 20% deduction for “qualified REIT dividends” for individuals and other non-corporate taxpayers. The OBBBA also increased the percentage limit under the REIT asset test applicable to taxable REIT subsidiaries (the permissible value of taxable REIT subsidiary securities that a REIT may hold) from 20% to 25% of the value of the REIT’s total assets for taxable years beginning after December 31, 2025. We are currently evaluating the provisions of the OBBBA, but we do not expect the OBBBA to have a material impact on our financial position and/or results of operations.