Public Storage (PSA) 10-K risk factor changes: FY2024 vs FY2023

This section contains forward-looking statements, and in considering these statements, you should refer to the qualifications and limitations on our forward-looking statements that are described in [removed: Item 1, “Business.”][added: “Item 1.]

See Note [removed: 15] [added: 14] to our December 31, [removed: 2023] [added: 2024] consolidated financial statements for a description of the risks of losses that are not covered by third-party insurance contracts.

We are subject to risks from the consequences of climate change, including severe weather [removed: events, as well as the transition to a low-carbon economy] [added: events] and [added: the adverse impact of] other steps [added: that may be] taken to prevent or mitigate climate change.

In addition, [removed: the ongoing] [added: government and private efforts to] transition to a low-carbon economy [removed: presents] [added: present] certain risks for us and our customers, including [removed: stranded assets,] increased [removed: costs, lower profitability, lower property values, lower household wealth,] [added: energy costs] and macroeconomic risks related to high energy costs and energy shortages, among other things.

Governmental, political, and societal pressures, including expectations of institutional and activist investors and other interest groups, could require us to [added: implement or] accelerate [removed: our] [added: emissions] initiatives and, with it, the costs of their implementation.

These same potential governmental, political, and social pressures could in the future result [removed: in] [added: in, among other things,] (i) costly changes to newly developed facilities or retrofits of our existing facilities to reduce carbon emissions through multiple avenues, including changes to insulation, space configuration, lighting, heating, and air [removed: conditioning,] [added: conditioning and] (ii) increased energy costs as a result of transitioning to less carbon-intensive, but more expensive, sources of energy to operate our [removed: facilities, and (iii) consumers reducing their individual carbon footprints by owning fewer durable material consumer goods and other such items requiring storage, resulting in a reduced demand for our self-storage space.][added: facilities.]

Our property tax expense, which totaled approximately [removed: $413.2] [added: $452.0] million during the year ended December 31, [removed: 2023,] [added: 2024,] generally depends upon the assessed value of our real estate facilities as determined by assessors and government agencies and, accordingly, could be subject to substantial increases if such agencies change their valuation approaches or opinions or if new laws are enacted, especially if new approaches are adopted or laws are enacted that result in increased property tax assessments in states or geographies where we have a high concentration of facilities.

At December 31, [removed: 2023,] [added: 2024,] we had a pipeline of development projects totaling [removed: $766.2] [added: $741.6] million (subject to contingencies), and we expect to continue to seek additional development projects.

Competition in the local market areas in which many of our properties are located is significant and affects our occupancy levels, rental rates, and operating [removed: expenses.][added: expenses, particularly advertising costs.]

[removed: Recent significant increases in] [added: Elevated] interest [removed: rates] [added: rate levels] could adversely impact us and our tenants.

As a result, if we issued new debt or preferred shares or refinanced our indebtedness, our debt service costs or preferred share dividend yields would [added: likely] be, based on current interest rates, significantly higher than current financing costs.

[removed: These] [added: Elevated] interest [removed: rate increases have] [added: rates] also adversely [removed: impacted] [added: impact] the relative attractiveness of the dividend yield on our common shares.

Economic conditions can adversely affect our business, financial condition, [removed: growth,] and [removed: access to capital.][added: growth.]

We own approximately 35% of the common shares of Shurgard, and this investment has a [removed: $390.2] [added: $382.5] million book value and a [removed: $1.7] [added: $1.3] billion market value (based upon the closing trading price of Shurgard’s common stock) at December 31, [removed: 2023.][added: 2024.]

We recognized [removed: $27.9] [added: $19.8] million in equity in earnings and received [removed: $39.0] [added: $22.8] million in dividends in [removed: 2023] [added: 2024] with respect to Shurgard.

For example, in response to wildfires in [removed: 2018] [added: 2018, 2019,] and [removed: 2019] [added: early 2025] and floods in 2023, the State of California and some localities in California adopted temporary regulations that imposed certain limits on the rents we could charge at certain of our facilities and the extent to which we could increase rents to existing tenants.

Approximately [removed: 65%] [added: 67%] of our new storage customers in [removed: 2023] [added: 2024] were sourced directly or indirectly through “unpaid” search and “paid” search campaigns on Google.

We have approximately [removed: 6,200] [added: 5,900] employees and [removed: 1.9] [added: 2.0] million customers, and we conduct business at facilities in 40 states.

As a result, we are subject to the risk of legal claims and proceedings (including class actions) and regulatory enforcement actions across many jurisdictions in the ordinary course of our business and otherwise, and we could incur significant liabilities and substantial legal fees [removed: as a result of] [added: from] these actions.

Resolution of these claims and actions may divert time and attention [removed: by] [added: of] our management and could involve payment of damages or expenses by us, all of which may be significant, and could damage our reputation and our brand.

In addition, through exercising their authority to regulate our activities, governmental agencies can otherwise negatively impact our business by increasing costs or decreasing [removed: revenues.][added: revenues, including through restrictions on rent increases or fees.]

In addition, the use of emerging [removed: technologies] [added: technologies, including artificial intelligence,] entails risks including risks relating to the possibility of intellectual property infringement or misappropriation; data privacy; new or enhanced governmental or regulatory scrutiny, requirements, litigation, or other liability; ethical concerns; negative consumer perceptions as to automation and artificial intelligence; or other complications or liabilities that could adversely affect our business, reputation, results of operations, or financial results.

Although we believe we [added: and our third-party service providers] have taken commercially reasonable steps to protect the security of our confidential information, information security risks have generally increased in recent years due to the rise in new technologies and the increased sophistication and activities of perpetrators of cyberattacks.

We have identified and expect to continue to identify cyberattacks and cybersecurity incidents on our systems and those of third [removed: parties,] [added: parties we rely upon,] but none of the cyberattacks and incidents we have identified to date has had a material impact on our business or operations.

Approximately [removed: $821.2] [added: $830.4] million of our [removed: 2023] [added: 2024] net operating income is from our properties in California, and we incurred approximately [removed: $49.1] [added: $47.8] million in related property tax expense.

Failure to comply with applicable [removed: laws, regulations,] [added: laws] and [removed: policies] [added: regulations] may subject us to increased litigation and regulatory actions and negatively affect our business and operations or reputation.

Business.”

Interest rates remain elevated compared to recent years and may increase.

Further, new technologies such as artificial intelligence may be more capable at evading these safeguard measures.

We may be subject to labor disruptions related to unionization efforts.

Our employees have been and may in the future be subject to unionization efforts.

These activities could lead to labor disruptions which could adversely impact our ability to operate our business and could negatively impact our reputation.

In addition, these activities could result in collective bargaining agreements, which could result in increased operating and legal costs.

Our use of artificial intelligence could expose us to various risks.

We have begun to utilize artificial intelligence technologies in various aspects of our business.

Artificial intelligence technologies are susceptible to errors and other malfunctions which could lead to operational challenges and reputational risks.

In addition, we may be subject to increasing regulations related to our use of these technologies, including regulations related to privacy, data security, and intellectual property rights, which could expose us to legal risks.

We are subject to extensive laws and regulations and to frequent changes in such laws and regulations.

We are subject to extensive laws and regulations, and to frequent changes in such laws and regulations, at the city, county, state, and federal level.

These laws and regulations include (i) laws and regulations related to access to our self-storage facilities, including the Americans with Disabilities Act of 1990, (ii) laws and regulations related to taxes, including property taxes, income taxes, and REIT status compliance, (iii) labor and employment laws and regulations, (iv) consumer protection laws and regulations, including those related to lien sales, (v) state and local business licensing laws and regulations, (vi) zoning laws and regulations, (vii) privacy laws and regulations, including the California Privacy Rights Act and the California Consumer Privacy Act, and (viii) securities laws.

Compliance with these laws and regulations, including changes thereto, have imposed significant costs and could in the future impose greater costs or require adverse changes to our business and operations.

In the event that we recognize a significant gain from cash settlement of a forward sale agreement, the U.S. federal income tax treatment of the cash that we receive in such instance is unclear and could impact our ability to meet the REIT qualification requirements.

We may enter into forward sale agreements from time to time and, subject to certain conditions, we have the right to elect physical, cash or net share settlement under these agreements at any time and from time to time, in part or in full.

In the event that we elect to settle a forward sale agreement for cash and the settlement price is below the forward sale price, we would be entitled to receive a cash payment from the applicable forward purchaser(s).

Under Section 1032 of the Code, generally, no gains and losses are recognized by a corporation in dealing in its own shares, including pursuant to a “securities futures contract,” as defined in the Code by reference to the Securities Exchange Act of 1934, as amended.

Although we believe that any amount received by us in exchange for our common shares would qualify for the exemption under Section 1032 of the Code, because it is not entirely clear whether a forward sale agreement qualifies as a “securities futures contract,” the U.S. federal income tax treatment of any cash settlement payment we receive is uncertain.

In the event that we recognize a significant gain from the cash settlement of a forward sale agreement, we might not be able to satisfy the gross income requirements applicable to REITs under the Code.

If we were to fail to satisfy one or both of the gross income tests for any taxable year, we may nevertheless qualify as a REIT for such year if we were entitled to relief under certain provisions of the Code.

If these relief provisions were inapplicable, we would not qualify to be taxed as a REIT.

International trade disputes, including U.S. trade tariffs and retaliatory tariffs, could adversely impact our business.

International trade disputes, including threatened or implemented tariffs imposed by the U.S. and threatened or implemented tariffs imposed by foreign countries in retaliation, could result in inflationary pressures that directly impact our costs, such as costs for steel, lumber and other materials applicable to our development and redevelopment projects.

Trade disputes could also adversely impact global supply chains which could further increase costs for us or delay delivery of key inventories and supplies.

Tariffs and trade restrictions can be announced with little or no advance notice, and we may not be able to effectively mitigate all adverse impacts from such measures.

If we are not able to navigate these changes, it could have a material adverse effect on our business.

In response to high inflation, the Federal Reserve has significantly increased the benchmark federal funds rate since early 2022.

These actions have significantly increased interest rates.

Our ability to raise capital on attractive terms to fund our activities may be adversely affected by challenging market conditions, including high interest rates resulting from government efforts to manage inflation.

In periods when the capital and credit markets experience significant volatility, the amounts, sources, and cost of capital available to us may be adversely affected.

If we were unable to raise capital at reasonable rates, prospective earnings growth through expanding our asset base could be limited.

We are subject to new and changing legislation and regulations, including the California Privacy Rights Act (CPRA).

We are subject to new and changing legislation and regulations, including the Americans with Disabilities Act of 1990 and legislation regarding property taxes, income taxes, REIT status, labor and employment, privacy, and lien sales at the city, county, state, and federal level, which could materially impact our business and operations.

On November 3, 2020, Californians passed a ballot measure that creates the California Privacy Rights Act (“CPRA”).

The CPRA amends and expands the California Consumer Privacy Act (CCPA), which went into effect on January 1, 2020.

The CPRA, which went into effect on January 1, 2023, provides new rights and amends existing rights found in the CCPA.

It also creates a new privacy enforcement authority, the California Privacy Protection Agency (“CalPPA”).

The CPRA grants the Attorney General and the CalPPA the authority to issue regulations on a wide range of topics.

It therefore remains unclear what, if any, modifications will be made to the CPRA or how it will be interpreted.

While we believe we have developed processes to comply with current privacy requirements, a regulatory agency may not agree with certain of our implementation decisions, which could subject us to litigation, regulatory actions, or changes to our business practices that could increase costs or reduce revenues.

Other states have also enacted or are considering enacting privacy laws similar to those passed in California.

Similar laws may be implemented in other jurisdictions in which we do business and in ways that may be more restrictive than those in California, increasing the cost of compliance, as well as the risk of noncompliance, on our business.

[removed: For large portfolio acquisitions, we] [added: We] estimate the fair value of buildings primarily using the income approach by estimating the fair value of hypothetical vacant acquired facilities and adjusting for the estimated fair value of land.

The fair value estimate of buildings is sensitive to [removed: assumptions used in both the income approach,] [added: assumptions,] such as lease-up period, future stabilized operating cash flows, capitalization rate and discount [removed: rate, and in the replacement cost approach, such as current cost adjustment, soft cost and developer profit estimates.][added: rate.]

Our self-storage operations generate most of our net income, and our earnings growth is impacted by the levels of [added: organic] growth within our Same Store Facilities (as defined below) as well as within our Acquired Facilities and Newly Developed and Expanded Facilities (both as defined below).

During [removed: 2023,] [added: 2024,] revenues generated by our Same Store Facilities [removed: increased] [added: decreased] by [removed: 4.7% ($154.0] [added: 0.7% ($26.7] million), as compared to [removed: 2022,] [added: 2023,] while Same Store cost of operations increased by [removed: 4.7% ($35.9] [added: 2.4% ($20.6] million).

Since the beginning of [removed: 2021,] [added: 2022,] we acquired a total of [removed: 470] [added: 260] facilities with [removed: 38.8] [added: 18.5] million net rentable square feet for [removed: $8.5] [added: $3.7] billion.

Additionally, within our non-same store portfolio, our [removed: developed] [added: Newly Developed] and [removed: expanded facilities] [added: Expanded Facilities (as defined below)] include a total of [removed: 145] [added: 132] self-storage facilities [removed: of 17.1] [added: with 15.8] million net rentable square feet.

For development and expansions completed by December 31, [removed: 2023,] [added: 2024,] we incurred a total cost of $1.6 billion.

During [removed: 2023,] [added: 2024,] combined net operating income generated by our Acquired Facilities and Newly Developed and Expanded Facilities increased [removed: 28.7% ($109.4] [added: 48.1% ($101.0] million), as compared to [removed: 2022.][added: 2023.]

[removed: On September 13,] [added: During] 2023, we acquired BREIT Simply Storage [removed: LLC,] [added: LLC (“Simply”),] a self-storage company that [removed: owns] [added: owned] and [removed: operates] [added: operated] 127 self-storage facilities (9.4 million square feet) and [removed: manages] [added: managed] 25 self-storage facilities [added: (1.8 million square feet)] for third parties, for a purchase price of $2.2 billion in [removed: cash (the “Simply Acquisition”).][added: cash.]

[removed: In connection with the Simply Acquisition, on July 26, 2023, we] [added: During 2024, PSOC] completed a public offering of [removed: $2.2] [added: $1.0] billion aggregate principal amount of unsecured senior notes in various tranches and [removed: maturities.][added: maturities and issued €150 million of senior notes to institutional investors.]

We have experienced recent inflationary impacts on our cost of operations including labor, utilities, and repairs and maintenance, and costs of development and expansion activities, and we [removed: may continue] [added: expect] to experience such impacts in the future.

In order to enhance the competitive position of certain of our facilities relative to local competitors (including newly developed facilities), we [removed: have] embarked on our multi-year Property of Tomorrow program to (i) rebrand our properties with more pronounced, attractive, and clearly identifiable color schemes and [removed: signage, (ii) enhance the energy efficiency of our properties,] [added: signage] and [removed: (iii)] [added: (ii)] upgrade the configuration and layout of the offices and other customer zones to improve the customer experience.

We [removed: expect to complete] [added: completed] the program in 2024.

We spent approximately [removed: $160] [added: $54] million on the program in [removed: 2023] [added: 2024] and expect to spend approximately [removed: $150] [added: $50] million in [removed: 2024] [added: 2025] on this effort.

We have also embarked on a solar program under which we plan to install solar panels on over [removed: 1,000] [added: 1,400] of our self-storage facilities.

We have completed the installations on [removed: 534] [added: 772] facilities through [removed: 2023.][added: December 31, 2024.]

We [removed: spent approximately $51 million on the] [added: completed this] program in [removed: 2023] [added: 2024] and [removed: expect to spend $100] [added: spent approximately $127] million in 2024 on this effort.

In 2023, net income allocable to our common shareholders was [removed: $1.9] [added: $1.949] billion or $11.06 per diluted common share, compared to [removed: $4.1] [added: $4.142] billion or $23.50 per diluted common share in 2022, representing a decrease of $2.2 billion or $12.44 per diluted common share.

The $231.8 million increase in self-storage net operating income in 2023 as compared to 2022 is a result of a [removed: $118.2] [added: $131.8] million increase [removed: attributable to] [added: in] our Same Store Facilities and a [removed: $113.6] [added: $100.0] million increase [removed: attributable to] [added: in] our [removed: non-same store facilities.][added: Non-Same Store Facilities.]

Revenues for the Same Store Facilities increased [removed: 4.7%] [added: 4.8%] or [removed: $154.0] [added: $170.2] million in 2023 as compared to 2022, due primarily to higher realized annual rent per [removed: occupied] [added: available] square foot, partially offset by a decline in occupancy.

Cost of operations for the Same Store Facilities increased by [removed: 4.7%] [added: 4.6%] or [removed: $35.9] [added: $38.4] million in 2023 as compared to 2022, due primarily to increased property tax expense, marketing [removed: expense,] [added: expense] and other direct property costs.

The increase in net operating income of [removed: $113.6] [added: $100.0] million for the [removed: non-same store facilities] [added: Non-Same Store Facilities] is due primarily to the impact of facilities acquired in [removed: 2021, 2022, and 2023 and the fill-up of recently developed] [added: 2022] and [removed: expanded facilities.][added: 2023.]

Operating Results for [removed: 2022] [added: 2024] and [removed: 2021][added: 2023]

In [removed: 2022,] [added: 2024,] net income allocable to our common shareholders was [removed: $4.1] [added: $1.873] billion or [removed: $23.50] [added: $10.64] per diluted common share, compared to [removed: $1.7] [added: $1.949] billion or [removed: $9.87] [added: $11.06] per diluted common share in [removed: 2021,] [added: 2023,] representing [removed: an increase] [added: a decrease] of [removed: $2.4 billion] [added: $76.1 million] or [removed: $13.63] [added: $0.42] per diluted common share.

The [removed: $614.3] [added: $61.6] million increase in self-storage net operating income in [removed: 2022] [added: 2024] as compared to [removed: 2021] [added: 2023] is a result of a [removed: $390.6] [added: $108.9] million increase [removed: in] [added: attributable to] our [removed: Same] [added: Non-Same] Store Facilities [removed: and] [added: (as defined below), partially offset by] a [removed: $223.7] [added: $47.3] million [removed: increase in] [added: decrease attributable to] our [removed: non-same store facilities.][added: Same Store Facilities.]

Revenues [removed: for the] [added: generated by our] Same Store Facilities increased [removed: 15.2% or $432.2 million] [added: 4.8%] in [removed: 2022] [added: 2023] as compared to [removed: 2021,] [added: 2022,] due primarily to [removed: higher] [added: a 6.4% increase in] realized annual rent per [removed: available] [added: occupied] square foot, partially offset by a [removed: decline] [added: 1.6% decrease] in [added: average] occupancy.

Cost of operations for the Same Store Facilities increased by [removed: 5.7%] [added: 2.4%] or [removed: $41.7] [added: $20.6] million in [removed: 2022] [added: 2024] as compared to [removed: 2021,] [added: 2023,] due primarily to increased property tax expense, marketing expense, [removed: other direct property costs,] and [added: repairs and maintenance expense, partially offset by decreased] centralized management [removed: costs.][added: costs and on-site property manager payroll expense.]

The increase in net operating income of [removed: $223.7] [added: $108.9] million for the [removed: non-same store facilities] [added: Non-Same Store Facilities] is due primarily to the impact of facilities acquired in [removed: 2021 and the fill-up of recently developed and expanded facilities.][added: 2023.]

Funds from Operations (“FFO”) and FFO per [added: diluted common] share [added: (“FFO per share”)] are non-GAAP measures defined by Nareit.

For the year ended December 31, [removed: 2023,] [added: 2024,] FFO was [removed: $16.60] [added: $17.19] per diluted common share as compared to [removed: $16.46] [added: $16.60] and [removed: $13.36] [added: $16.46] per diluted common share for the years ended December 31, [removed: 2022] [added: 2023] and [removed: 2021,] [added: 2022,] respectively, representing an increase in [removed: 2023] [added: 2024] of [removed: 0.9%,] [added: 3.6%,] or [removed: $0.14] [added: $0.59] per diluted common share, as compared to [removed: 2022.][added: 2023.]

We also present “Core FFO” and “Core FFO per share” non-GAAP measures that represent FFO and FFO per share excluding the impact of (i) foreign currency exchange gains and losses, (ii) charges related to the redemption of preferred securities, and (iii) certain other non-cash and/or nonrecurring income or expense items primarily representing, with respect to the periods presented below, the impact of loss [removed: contingency accruals] [added: contingencies] and resolutions, casualties, due diligence costs incurred in pursuit of strategic transactions, unrealized gain on private equity investments, [removed: UPREIT] reorganization costs, [removed: Simply] [added: acquisition] integration costs, amortization of acquired non real estate-related [removed: intangibles from the Simply Acquisition] [added: intangibles, a cash] and [added: stock hiring bonus for a new senior executive, and] our equity share of [removed: deferred] tax [removed: benefits] [added: effect] of a change in tax status, [added: unrealized gain on derivatives,] merger transaction [removed: costs, severance of a senior executive, lease termination income,] [added: costs] and [removed: casualties] [added: senior executive severance] from our equity investees.

| | | | | | | | | | | | | | | | | | | | | | Year Ended December 31, | | | | | | | | | | | | | | | | | | [removed: Year Ended December 31,] | | | | | | | | | | | | | | |

| | | | | | | | | | | | | | | | | | | | | | [removed: 2023] [added: 2024] | | | | | | [removed: 2022] [added: 2023] | | | | | | Percentage Change | | | | | | [removed: 2022] [added: 2023] | | | | | | [removed: 2021] [added: 2022] | | | | | | Percentage Change | | |

| Net income allocable to common shareholders | | | | | | | | | | | | | | | | | | | | | $ | [removed: 1,948,741] [added: 1,872,685] | | | | | $ | [removed: 4,142,288] [added: 1,948,741] | | | | | [removed: (53.0)] [added: (3.9)] | | % | | | | $ | [removed: 4,142,288] [added: 1,948,741] | | | | | $ | [removed: 1,732,444] [added: 4,142,288] | | | | | [removed: 139.1] [added: (53.0)] | | % |

| Real estate-related depreciation and amortization | | | | | | | | | | | | | | | | | | | | | [removed: 962,703] [added: 1,117,752] | | | | | | [removed: 881,569] [added: 962,703] | | | | | | | | | | | | [removed: 881,569] [added: 962,703] | | | | | | [removed: 709,349] [added: 881,569] | | | | | | | | |

| Real estate-related depreciation from unconsolidated real estate [removed: investments] [added: investment] | | | | | | | | | | | | | | | | | | | | | [removed: 36,769] [added: 44,181] | | | | | | [removed: 54,822] [added: 36,769] | | | | | | | | | | | | [removed: 54,822] [added: 36,769] | | | | | | [removed: 73,729] [added: 54,822] | | | | | | | | |

| Real estate-related depreciation allocated to noncontrolling interests and restricted share unitholders [added: and unvested LTIP unitholders] | | | | | | | | | | | | | | | | | | | | | [removed: (6,635)] [added: (7,167)] | | | | | | [removed: (6,622)] [added: (6,635)] | | | | | | | | | | | | [removed: (6,622)] [added: (6,635)] | | | | | | [removed: (4,415)] [added: (6,622)] | | | | | | | | |

| Gains on sale of real estate investments, including our equity share from [removed: investments] [added: investment] | | | | | | | | | | | | | | | | | | | | | [removed: (17,290)] [added: (1,537)] | | | | | | [removed: (54,403)] [added: (17,290)] | | | | | | | | | | | | [removed: (54,403)] [added: (17,290)] | | | | | | [removed: (165,272)] [added: (54,403)] | | | | | | | | |

| Gain on sale of equity investment in PS Business Parks, Inc. | | | | | | | | | | | | | | | | | | | | | — | | | | | | [removed: (2,116,839)] [added: —] | | | | | | | | | | | | [removed: (2,116,839)] [added: —] | | | | | | [removed: —] [added: (2,116,839)] | | | | | | | | |

| FFO allocable to common shares | | | | | | | | | | | | | | | | | | | | | $ | [removed: 2,924,288] [added: 3,025,914] | | | | | $ | [removed: 2,900,815] [added: 2,924,288] | | | | | [removed: 0.8] [added: 3.5] | | % | | | | $ | [removed: 2,900,815] [added: 2,924,288] | | | | | $ | [removed: 2,345,835] [added: 2,900,815] | | | | | [removed: 23.7] [added: 0.8] | | % |

Softness in demand for our storage space has led to lower move-in rental rates for new tenants and lower average occupancy in 2024 as compared to 2023.

We spent approximately $127 million on the program in 2024.

PSOC also repaid at maturity $700 million aggregate principal amount of floating rate senior notes and €100 million aggregate principal amount of senior notes.

During 2024, we repurchased 726,865 of our common shares under our previously announced share repurchase program on the open market for a total cost of $200.0 million, driven by our expected improvement in operating fundamentals and growth.

During 2024, we sold 184,390 of our common shares on the open market through our “at the market” offering program for aggregate net proceeds of approximately $60.3 million in cash.

In early 2025, multiple wildfires erupted in southern California and caused significant destruction of business and residential structures.

We did not incur any direct property damage in the affected areas.

In response to the devastation, a “State of Emergency” has been declared for Los Angeles County and Ventura County, under which a temporary governmental pricing limitation is in place for our self-storage facilities located in these counties.

These self-storage facilities generated approximately 10% of revenues earned by our Same Store Facilities in 2024.

We anticipate a potentially significant negative impact on the revenue growth from these self-storage facilities, the extent of which depends largely on the duration of the State of Emergency order and other future actions by government authorities, among other factors.

The decrease is due primarily to (i) a $159.7 million increase in depreciation and amortization expense, (ii) an $86.3 million increase in interest expense, (iii) a $26.0 million increase in general and administrative expense, (iv) an $18.4 million decrease in interest and other income, partially offset by (v) a $153.4 million increase in foreign currency exchange gains primarily associated with our Euro denominated notes payable and (vi) a $61.6 million increase in self-storage net operating income.

Revenues for the Same Store Facilities decreased 0.7% or $26.7 million in 2024 as compared to 2023, due primarily to a decline in occupancy and lower realized annual rent per occupied square foot.

| Hiring bonus for a new senior executive | | | | | | | | | | | | | | | | | | | | | 3,507 | | | | | | — | | | | | | | | | | | | — | | | | | | — | | | | | | | | |

| Other items | | | | | | | | | | | | | | | | | | | | | 12,246 | | | | | | 3,264 | | | | | | | | | | | | 3,264 | | | | | | 9,164 | | | | | | | | |

| Unrealized gain on private equity investments | | | | | | | | | | | | | | | | | | | | | (0.02) | | | | | | (0.02) | | | | | | | | | | | | (0.02) | | | | | | (0.03) | | | | | | | | |

| Hiring bonus for a new senior executive | | | | | | | | | | | | | | | | | | | | | 0.02 | | | | | | — | | | | | | | | | | | | — | | | | | | — | | | | | | | | |

The Acquired Facilities, Newly Developed and Expanded Facilities, and Other Non-Same Store Facilities are collectively referred to as the Non-Same Store Facilities.

| | | | | | | | | | | | | | | | | | | | | | 2024 | | | | | | 2023 | | | | | | Percentage Change | | | | | | 2023 | | | | | | 2022 | | | | | | Percentage Change | | |

| Same Store Facilities | | | | | | | | | | | | | | | | | | | | | $ | 3,676,632 | | | | | $ | 3,703,331 | | | | | (0.7) | | % | | | | $ | 3,703,331 | | | | | $ | 3,533,149 | | | | | 4.8 | | % |

| Acquired Facilities | | | | | | | | | | | | | | | | | | | | | 241,314 | | | | | | 105,592 | | | | | | 128.5 | | % | | | | 105,592 | | | | | | 14,945 | | | | | | 606.5 | | % |

| Newly Developed and Expanded Facilities | | | | | | | | | | | | | | | | | | | | | 225,845 | | | | | | 208,235 | | | | | | 8.5 | | % | | | | 208,235 | | | | | | 182,686 | | | | | | 14.0 | | % |

| Other Non-Same Store Facilities | | | | | | | | | | | | | | | | | | | | | 252,202 | | | | | | 242,455 | | | | | | 4.0 | | % | | | | 242,455 | | | | | | 215,248 | | | | | | 12.6 | | % |

| Same Store Facilities | | | | | | | | | | | | | | | | | | | | | 895,283 | | | | | | 874,715 | | | | | | 2.4 | | % | | | | 874,715 | | | | | | 836,297 | | | | | | 4.6 | | % |

| Acquired Facilities | | | | | | | | | | | | | | | | | | | | | 81,583 | | | | | | 39,833 | | | | | | 104.8 | | % | | | | 39,833 | | | | | | 7,885 | | | | | | 405.2 | | % |

| Same Store Facilities | | | | | | | | | | | | | | | | | | | | | 2,781,349 | | | | | | 2,828,616 | | | | | | (1.7) | | % | | | | 2,828,616 | | | | | | 2,696,852 | | | | | | 4.9 | | % |

| Acquired Facilities | | | | | | | | | | | | | | | | | | | | | 159,731 | | | | | | 65,759 | | | | | | 142.9 | | % | | | | 65,759 | | | | | | 7,060 | | | | | | 831.4 | | % |

| Newly Developed and Expanded Facilities | | | | | | | | | | | | | | | | | | | | | 151,431 | | | | | | 144,412 | | | | | | 4.9 | | % | | | | 144,412 | | | | | | 128,275 | | | | | | 12.6 | | % |

| Other Non-Same Store Facilities | | | | | | | | | | | | | | | | | | | | | 166,762 | | | | | | 158,876 | | | | | | 5.0 | | % | | | | 158,876 | | | | | | 133,632 | | | | | | 18.9 | | % |

| Same Store Facilities | | | | | | | | | | | | | | | | | | | | | 682,783 | | | | | | 658,334 | | | | | | 3.7 | | % | | | | 658,334 | | | | | | 654,238 | | | | | | 0.6 | | % |

| Acquired Facilities | | | | | | | | | | | | | | | | | | | | | 237,892 | | | | | | 112,247 | | | | | | 111.9 | | % | | | | 112,247 | | | | | | 18,494 | | | | | | 506.9 | | % |

| Other Non-Same Store Facilities | | | | | | | | | | | | | | | | | | | | | 139,661 | | | | | | 143,312 | | | | | | (2.5) | | % | | | | 143,312 | | | | | | 166,312 | | | | | | (13.8) | | % |

| Same Store Facilities | | | | | | | | | | | | | | | | | | | | | 2,098,566 | | | | | | 2,170,282 | | | | | | (3.3) | | % | | | | 2,170,282 | | | | | | 2,042,614 | | | | | | 6.3 | | % |

| Acquired Facilities | | | | | | | | | | | | | | | | | | | | | (78,161) | | | | | | (46,488) | | | | | | 68.1 | | % | | | | (46,488) | | | | | | (11,434) | | | | | | 306.6 | | % |

| Newly Developed and Expanded Facilities | | | | | | | | | | | | | | | | | | | | | 82,001 | | | | | | 88,249 | | | | | | (7.1) | | % | | | | 88,249 | | | | | | 79,173 | | | | | | 11.5 | | % |

| Other Non-Same Store Facilities | | | | | | | | | | | | | | | | | | | | | 27,101 | | | | | | 15,564 | | | | | | 74.1 | | % | | | | 15,564 | | | | | | (32,680) | | | | | | (147.6) | | % |

| Acquired Facilities | | | | | | | | | | | | | | | | | | | | | 260 | | | | | | 238 | | | | | | 9.2 | | % | | | | 238 | | | | | | 74 | | | | | | 221.6 | | % |

| Newly Developed and Expanded Facilities | | | | | | | | | | | | | | | | | | | | | 132 | | | | | | 125 | | | | | | 5.6 | | % | | | | 125 | | | | | | 114 | | | | | | 9.6 | | % |

| Acquired Facilities | | | | | | | | | | | | | | | | | | | | | 18,473 | | | | | | 16,807 | | | | | | 9.9 | | % | | | | 16,807 | | | | | | 4,726 | | | | | | 255.6 | | % |

| Newly Developed and Expanded Facilities | | | | | | | | | | | | | | | | | | | | | 15,805 | | | | | | 14,134 | | | | | | 11.8 | | % | | | | 14,134 | | | | | | 12,398 | | | | | | 14.0 | | % |

| Other Non-Same Store Facilities | | | | | | | | | | | | | | | | | | | | | 17,043 | | | | | | 17,171 | | | | | | (0.7) | | % | | | | 17,171 | | | | | | 17,134 | | | | | | 0.2 | | % |

For individual and small portfolio acquisitions, we estimate the fair value of buildings primarily based upon the estimated current replacement cost, which we calculate by estimating the replacement cost of new purpose-built self-storage facilities in similar geographic regions and adjusting for age, quality, amenities, and configuration associated with the buildings acquired.

Accordingly, a significant portion of management’s time is devoted to maximizing cash flows from our existing self-storage facility portfolio.

Demand and operating trends softened in the second half of 2022 continuing through 2023 as compared to what we experienced in 2020 and 2021, and we expect this to continue in 2024.

The 127 wholly-owned facilities are geographically diversified across 18 states and located in submarkets with strong demand drivers and other desirable characteristics.

The increase is due primarily to (i) a $2.1 billion gain on sale of our equity investment in PSB and (ii) a $614.3 million increase in self-storage net operating income, partially offset by (iii) a $174.7 million increase in depreciation and amortization expense, (iv) a $125.1 million decrease in equity in earnings of unconsolidated real estate entities due to the sale of our equity investment in PSB, and (v) a $45.5 million increase in interest expense.

| Preferred share redemption charge | | | | | | | | | | | | | | | | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | 31,604 | | | | | | | | |

| Property losses and tenant claims due to casualties | | | | | | | | | | | | | | | | | | | | | — | | | | | | 4,817 | | | | | | | | | | | | 4,817 | | | | | | 4,909 | | | | | | | | |

| Other items | | | | | | | | | | | | | | | | | | | | | 447 | | | | | | (338) | | | | | | | | | | | | (338) | | | | | | (543) | | | | | | | | |

| Preferred share redemption charge | | | | | | | | | | | | | | | | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | 0.18 | | | | | | | | |

| Property losses and tenant claims due to casualties | | | | | | | | | | | | | | | | | | | | | — | | | | | | 0.03 | | | | | | | | | | | | 0.03 | | | | | | 0.03 | | | | | | | | |

| Same Store Facilities | | | | | | | | | | | | | | | | | | | | | $ | 3,427,867 | | | | | $ | 3,273,823 | | | | | 4.7 | | % | | | | $ | 3,273,823 | | | | | $ | 2,841,598 | | | | | 15.2 | | % |

| Acquired Facilities | | | | | | | | | | | | | | | | | | | | | 450,653 | | | | | | 327,245 | | | | | | 37.7 | | % | | | | 327,245 | | | | | | 106,474 | | | | | | 207.3 | | % |

| Newly Developed and Expanded Facilities | | | | | | | | | | | | | | | | | | | | | 262,450 | | | | | | 230,999 | | | | | | 13.6 | | % | | | | 230,999 | | | | | | 167,119 | | | | | | 38.2 | | % |

| Other Non-Same Store Facilities | | | | | | | | | | | | | | | | | | | | | 118,643 | | | | | | 113,961 | | | | | | 4.1 | | % | | | | 113,961 | | | | | | 88,375 | | | | | | 29.0 | | % |

| Same Store Facilities | | | | | | | | | | | | | | | | | | | | | 802,269 | | | | | | 766,405 | | | | | | 4.7 | | % | | | | 766,405 | | | | | | 724,748 | | | | | | 5.7 | | % |

| Acquired Facilities | | | | | | | | | | | | | | | | | | | | | 144,498 | | | | | | 109,744 | | | | | | 31.7 | | % | | | | 109,744 | | | | | | 32,705 | | | | | | 235.6 | | % |

| Same Store Facilities | | | | | | | | | | | | | | | | | | | | | 2,625,598 | | | | | | 2,507,418 | | | | | | 4.7 | | % | | | | 2,507,418 | | | | | | 2,116,850 | | | | | | 18.5 | | % |

| Acquired Facilities | | | | | | | | | | | | | | | | | | | | | 306,155 | | | | | | 217,501 | | | | | | 40.8 | | % | | | | 217,501 | | | | | | 73,769 | | | | | | 194.8 | | % |

| Newly Developed and Expanded Facilities | | | | | | | | | | | | | | | | | | | | | 183,919 | | | | | | 163,194 | | | | | | 12.7 | | % | | | | 163,194 | | | | | | 108,229 | | | | | | 50.8 | | % |

| Other Non-Same Store Facilities | | | | | | | | | | | | | | | | | | | | | 81,991 | | | | | | 77,706 | | | | | | 5.5 | | % | | | | 77,706 | | | | | | 52,688 | | | | | | 47.5 | | % |

| Same Store Facilities | | | | | | | | | | | | | | | | | | | | | 528,121 | | | | | | 501,139 | | | | | | 5.4 | | % | | | | 501,139 | | | | | | 483,219 | | | | | | 3.7 | | % |

| Acquired Facilities | | | | | | | | | | | | | | | | | | | | | 323,796 | | | | | | 280,871 | | | | | | 15.3 | | % | | | | 280,871 | | | | | | 131,998 | | | | | | 112.8 | | % |

| Other Non-Same Store Facilities | | | | | | | | | | | | | | | | | | | | | 56,718 | | | | | | 52,021 | | | | | | 9.0 | | % | | | | 52,021 | | | | | | 50,662 | | | | | | 2.7 | | % |

| Same Store Facilities | | | | | | | | | | | | | | | | | | | | | 2,097,477 | | | | | | 2,006,279 | | | | | | 4.5 | | % | | | | 2,006,279 | | | | | | 1,633,631 | | | | | | 22.8 | | % |

| Acquired Facilities | | | | | | | | | | | | | | | | | | | | | (17,641) | | | | | | (63,370) | | | | | | (72.2) | | % | | | | (63,370) | | | | | | (58,229) | | | | | | 8.8 | | % |

| Newly Developed and Expanded Facilities | | | | | | | | | | | | | | | | | | | | | 122,498 | | | | | | 109,079 | | | | | | 12.3 | | % | | | | 109,079 | | | | | | 60,680 | | | | | | 79.8 | | % |

| Other Non-Same Store Facilities | | | | | | | | | | | | | | | | | | | | | 25,273 | | | | | | 25,685 | | | | | | (1.6) | | % | | | | 25,685 | | | | | | 2,026 | | | | | | 1167.8 | | % |

| Acquired Facilities | | | | | | | | | | | | | | | | | | | | | 470 | | | | | | 306 | | | | | | 53.6 | | % | | | | 306 | | | | | | 232 | | | | | | 31.9 | | % |

| Acquired Facilities | | | | | | | | | | | | | | | | | | | | | 38,816 | | | | | | 26,634 | | | | | | 45.7 | | % | | | | 26,634 | | | | | | 21,830 | | | | | | 22.0 | | % |

| Newly Developed and Expanded Facilities | | | | | | | | | | | | | | | | | | | | | 17,101 | | | | | | 15,366 | | | | | | 11.3 | | % | | | | 15,366 | | | | | | 14,273 | | | | | | 7.7 | | % |

| Other Non-Same Store Facilities | | | | | | | | | | | | | | | | | | | | | 7,280 | | | | | | 7,343 | | | | | | (0.9) | | % | | | | 7,343 | | | | | | 7,342 | | | | | | — | | % |

| Rental income | | | | | | | | | | | | | | | | | | | | | $ | 3,312,597 | | | | | $ | 3,169,132 | | | | | 4.5% | | | | | | $ | 3,169,132 | | | | | $ | 2,756,752 | | | | | 15.0% | | |

| Late charges and administrative fees | | | | | | | | | | | | | | | | | | | | | 115,270 | | | | | | 104,691 | | | | | | 10.1% | | | | | | 104,691 | | | | | | 84,846 | | | | | | 23.4% | | |

| Total revenues | | | | | | | | | | | | | | | | | | | | | 3,427,867 | | | | | | 3,273,823 | | | | | | 4.7% | | | | | | 3,273,823 | | | | | | 2,841,598 | | | | | | 15.2% | | |

| Property taxes | | | | | | | | | | | | | | | | | | | | | 300,505 | | | | | | 290,605 | | | | | | 3.4% | | | | | | 290,605 | | | | | | 279,142 | | | | | | 4.1% | | |

| On-site property manager payroll | | | | | | | | | | | | | | | | | | | | | 126,830 | | | | | | 123,372 | | | | | | 2.8% | | | | | | 123,372 | | | | | | 118,085 | | | | | | 4.5% | | |

| Repairs and maintenance | | | | | | | | | | | | | | | | | | | | | 64,565 | | | | | | 60,317 | | | | | | 7.0% | | | | | | 60,317 | | | | | | 54,359 | | | | | | 11.0% | | |

| Utilities | | | | | | | | | | | | | | | | | | | | | 44,775 | | | | | | 45,578 | | | | | | (1.8)% | | | | | | 45,578 | | | | | | 42,417 | | | | | | 7.5% | | |

| Marketing | | | | | | | | | | | | | | | | | | | | | 69,158 | | | | | | 47,863 | | | | | | 44.5% | | | | | | 47,863 | | | | | | 41,446 | | | | | | 15.5% | | |

| Other direct property costs | | | | | | | | | | | | | | | | | | | | | 90,990 | | | | | | 83,615 | | | | | | 8.8% | | | | | | 83,615 | | | | | | 75,959 | | | | | | 10.1% | | |

Our debt, which totals approximately [removed: $9.1] [added: $9.4] billion at December 31, [removed: 2023,] [added: 2024,] is the only market-risk sensitive portion of our capital structure.

The fair value of our debt at December 31, [removed: 2023] [added: 2024] is approximately [removed: $8.6] [added: $8.8] billion.

The table below summarizes the annual maturities of our debt, which had a weighted average effective rate of 3.1% at December 31, [removed: 2023.][added: 2024.]

See Note [removed: 8] [added: 7] to our December 31, [removed: 2023] [added: 2024] consolidated financial statements for further information regarding our debt (amounts in thousands).

| | | | [removed: 2024] [added: 2025] | | | | | | [removed: 2025] [added: 2026] | | | | | | [removed: 2026] [added: 2027] | | | | | | [removed: 2027] [added: 2028] | | | | | | [removed: 2028] [added: 2029] | | | | | | Thereafter | | | | | | Total | | |

We have foreign currency exposure at December 31, [removed: 2023] [added: 2024] related to (i) our investment in Shurgard, with a book value of [removed: $390.2] [added: $382.5] million, and a fair value of [removed: $1.7] [added: $1.3] billion based upon the closing price of Shurgard’s stock on December 31, [removed: 2023,] [added: 2024,] and (ii) [removed: €1.5] [added: €1.6] billion ($1.7 billion) of Euro-denominated unsecured notes payable, providing a natural hedge against the fair value of our investment in Shurgard.

| Debt | | | $ | 651,516 | | | | | $ | 1,150,138 | | | | | $ | 1,200,146 | | | | | $ | 1,200,129 | | | | | $ | 1,000,088 | | | | | $ | 4,203,350 | | | | | $ | 9,405,367 | |

| Debt | | | $ | 810,496 | | | | | $ | 667,247 | | | | | $ | 1,150,138 | | | | | $ | 500,146 | | | | | $ | 1,200,129 | | | | | $ | 4,825,634 | | | | | $ | 9,153,790 | |

Forward-looking statements include statements relating to our [removed: 2024] [added: 2025] outlook and all underlying assumptions; our expected acquisition, disposition, development, and redevelopment activity; supply and demand for our self-storage facilities; information relating to operating trends in our markets; expectations regarding operating expenses, including property tax changes; expectations regarding the impacts from inflation and [removed: a potential future recession;] [added: changes in macroeconomic conditions;] our strategic priorities; expectations with respect to financing activities, rental rates, cap rates, and yields; leasing expectations; our credit ratings; and all other statements other than statements of historical fact.

These include changes in demand for our facilities; [added: changes in macroeconomic conditions; changes in national self-storage facility development activity;] impacts of natural disasters; adverse changes in laws and regulations including governing property tax, evictions, rental rates, minimum wage levels, and insurance; adverse economic effects from public health emergencies, international military conflicts, or similar events impacting public health and/or economic activity; increases in the costs of our primary customer acquisition channels; adverse impacts to us and our customers from high interest rates, inflation, unfavorable foreign currency rate fluctuations, or changes in federal or state tax laws related to the taxation of REITs; security breaches, including ransomware; or a failure of our networks, systems, or technology.

Public Storage is a Maryland real estate investment trust (“REIT”) engaged in the ownership, development, and operation of self-storage facilities and other related operations including tenant [removed: reinsurance] [added: reinsurance, third-party self-storage management] and [added: bridge lending to] third-party self-storage [removed: management.][added: owners.]

[removed: Subsequent to] [added: After] the reorganization, the primary assets of the parent entity, Public Storage, are general partner and limited partner interests in Public Storage OP, L.P.

Unless stated otherwise or the context otherwise requires, references to “Public Storage” [removed: or the “Company”] mean [added: the parent entity,] Public Storage, references to “PSA OP” mean Public Storage OP, L.P., and references to “PSOC” mean Public Storage Operating Company.

References to [removed: "we," "us,"] [added: “the Company,” “we,” “us,”] and [removed: "our"] [added: “our”] mean collectively Public Storage, PSA OP, PSOC and those entities/subsidiaries owned or controlled by Public Storage, PSA OP, and PSOC.

At December 31, [removed: 2023,] [added: 2024,] we held interests in and consolidated [removed: 3,044] [added: 3,073] self-storage facilities (an aggregate of [removed: 218] [added: 221] million net rentable square feet of space) operating under the Public Storage® name.

We reinsure all risks in this program but purchase insurance from an independent [removed: third party] [added: third-party] insurer to cover this exposure for a limit of $15.0 million for losses in excess of [removed: $5.0] [added: $10.0] million per occurrence.

At December 31, [removed: 2023,] [added: 2024,] there were approximately [removed: 1.3] [added: 1.4] million certificates of insurance held by [removed: our] [added: participating] self-storage customers, representing aggregate coverage of approximately [removed: $6.2] [added: $6.8] billion.

At December 31, [removed: 2023,] [added: 2024,] we managed [removed: 210] [added: 307] facilities for third [removed: parties,] [added: parties (with approximately 23.3 million net rentable square feet),] and were under contract to manage [removed: 114] [added: 95] additional facilities including [removed: 105] [added: 93] facilities that are currently under construction.

At December 31, [removed: 2023,] [added: 2024,] Shurgard owned and operated [removed: 275] [added: 318] self-storage facilities [removed: (15] [added: (17] million net rentable square feet) located in seven countries in Western Europe under the Shurgard® name.

However, we believe that the economies of scale inherent in this business [removed: result in our being able] [added: allow us] to operate self-storage facilities at a materially higher level of cash flow per square foot than other operators without our scale.

Approximately [removed: 81%] [added: 83%] of our move-ins in [removed: 2023] [added: 2024] were sourced through our website, and we believe that many of our other customers who reserved directly through our customer care center or arrived at a facility and moved in without a reservation reviewed our pricing and availability online through our website.

eRental® move-in process: To further enhance the move-in experience, we offer our eRental® process whereby prospective tenants (including those who initially reserved a space) [removed: are able to] [added: can] execute their rental agreement from their smartphone or computer and then go directly to their space on the move-in date.

Approximately [removed: 60%] [added: 70%] of customers utilized our eRental® and Rent by Phone process during [removed: 2023.][added: 2024.]

Our ongoing growth strategies consist of: (i) improving the operating performance of our existing self-storage facilities, (ii) acquiring and developing facilities, and (iii) growing ancillary business activities including tenant [removed: reinsurance and] [added: reinsurance,] third-party management [removed: services.][added: services and a bridge lending program.]

We maximize revenues through striking the appropriate balance between occupancy and rates [removed: to] [added: for] new and existing tenants by regularly adjusting (i) our promotional and other discounts, (ii) the rental rates we charge to new and existing customers, and (iii) our marketing spending and intensity.

Our aggressiveness in bidding for [removed: particular] marketed facilities depends upon many factors including the potential for future growth, the quality of construction and location, the cash flow we expect from the facility when operated on our platform, how well the facility fits into our current geographic footprint, and our return on capital expectations.

Further, our insurance activities are subject to state insurance laws and regulations as determined by the [removed: particular] insurance commission for each state in accordance with certain federal regulations.

We are committed to a long-term environmental stewardship program that reduces emissions of hazardous materials into the environment and the remediation of identified existing environmental concerns, including [removed: environmentally-friendly] [added: environmentally friendly] capital initiatives and building and operating properties with high structural resilience and low obsolescence.

Our employees are the [removed: foundation] [added: cornerstone] of our business and fundamental to our ability to execute our corporate strategies and create long-term value for our stakeholders.

We have approximately [removed: 6,200] [added: 5,900] employees, including [removed: 5,380] [added: 5,120] customer facing roles (such as property level and customer care center personnel), [removed: 390] [added: 340] field management employees, and [removed: 430] [added: 440] employees in our corporate operations.

For detailed information regarding such programs and initiatives, including our sustainability efforts, strategies, commitments, and progress, please refer to our [removed: 2023] [added: 2024] Sustainability Report, which is available on our website at publicstorage.com.

We are committed to creating a workplace that values [removed: diversity and inclusion,] [added: people with a wide range of backgrounds,] where every employee feels [removed: valued, included,] [added: valued] and able to be their authentic self as part of our best-in-class team.

We maintain policies regarding [removed: diversity,] equal opportunity, pay-for-performance, discrimination, harassment, and labor (including opposition to child and compulsory labor).

Given the geographically dispersed nature of our business, [added: maintaining] regular and clear communication is [removed: critical] [added: essential] to ensuring that our employees feel informed, included, valued, and engaged.

We use various communication channels, including emails, newsletters, videos, virtual and in-person meetings, and town halls, to provide updates on company strategy, performance, employee recognition, and other [removed: information, as well as the opportunity to ask questions of our leadership.][added: information.]

To [removed: better understand] [added: gauge] the effectiveness of our engagement strategies, we conduct various surveys to [removed: evaluate] [added: assess] employee commitment, motivation, and engagement, and to [removed: seek employee] [added: gather] feedback.

Among other recognitions, we are proud again to be named a Great Place to Work® in [removed: 2023.][added: 2024.]

We believe that employee compensation should align with our short- and long-term performance goals and provide [removed: the] competitive compensation and incentives needed to attract, motivate, and retain employees who are crucial to our success.

We offer affordable health plans and programs to virtually all [removed: of] our employees.

[removed: Full-time] [added: Our full-time] employees are eligible to participate in our comprehensive [removed: employee benefit offerings,] [added: range of benefits,] which include medical, dental, vision, flexible and health savings accounts, discount programs, income protection plans, and our 401(k) plan.

We conduct monthly safety [removed: trainings] [added: training] at all [removed: of] our properties and an annual safety training at our headquarters.

These programs are intended to provide our employees with the skills, tools, and knowledge they need to be successful in their roles and to contribute to the [removed: value of the organization.][added: organization’s success.]

[removed: The majority] [added: Most] of our new hires join Public Storage as property managers without prior experience in the self-storage industry.

For those new hires in leadership roles, we provide property-level training that exposes [removed: our leaders] [added: them] to daily property operations and is intended to [removed: provide] [added: help] them [removed: with an understanding of] [added: understand] the fundamentals of our business and operations.

We also offer numerous career development opportunities for existing [removed: employees across Public Storage,] [added: employees,] including management training programs.

[removed: Employees] [added: Together, employees] and managers work [removed: together] to plan, monitor, and review the employee’s objectives and career [removed: aspirations and to establish] [added: aspirations, establishing] and [removed: hold] [added: holding] employees accountable to [added: both] short- and long-term goals [removed: aligned] [added: that align] with the Company’s strategy.

Succession planning is a priority for management and our [removed: Board,] [added: Board] and is viewed as critical to ensuring business continuity and [removed: providing for] [added: supporting] the Company’s long-term growth and success.

Periodically throughout each year, the executive team meets to review and assess the Company’s succession bench strength, evaluate talent, and [removed: provide] [added: make] recommendations for developing and preparing future leaders within the organization.

We implemented a bridge lending program in 2024, under which we provide financing to third-party self-storage owners for operating properties that we manage.

We generally originate bridge loans that are collateralized by operating self-storage properties, have a term of three or four years with two one-year extensions, and have variable interest rates.

At December 31, 2024, we had a bridge loan receivable balance of $10.0 million and an unfunded loan commitment of $12.5 million, the closing of which is subject to the satisfaction of certain conditions.

In 2024 we implemented a bridge lending program, under which we provide financing to third-party self-storage owners for operating properties that we manage.

This program not only enables us to earn interest and other fee income but also increases our business in tenant reinsurance and third-party self-storage management and creates opportunities for potential future acquisitions.

Inclusive Culture

We also provide opportunities for employees to ask questions of our leadership.

This includes a path for our property level employees to move into management and leadership roles and advance their careers within the Company.

We have established a combined scope 1 and 2 greenhouse gas reduction goal.

Our target is to achieve a 45% reduction in utility-based emissions, calculated on an intensity basis, no later than 2032, based on a 2022 baseline.

We recently launched the Savvy Storage Insurance Program (“Savvy”), a program to provide other owner operators of self-storage facilities a tenant insurance offering for their tenants.

We believe this offering will provide owners and their tenants simplified onboarding and implementation, experienced and dedicated support, and significantly higher customer adoption rates than the offerings available in the market today.

Diversity and Inclusion

We also maintain a policy of requiring that diverse candidates be considered for all director-level positions and above.

Our diversity is evident at all levels of the organization.

The data in the table below reflects our employee diversity as of December 31, 2023.


In 2023, we introduced a leadership accelerator program specifically for high potential women and diverse employees.

This program includes individual mentorship and practical experiences designed to further enhance our bench of high potential leaders, thereby supporting management succession planning.

For a description of the Company’s legal proceedings, see “Note [removed: 15.][added: 14.]

For the fiscal year ended December 31, [removed: 2023.][added: 2024.]

The aggregate market value of the voting and non-voting common shares held by non-affiliates of the Registrant as of June 30, [removed: 2023:][added: 2024:]

Common Shares, $0.10 par value per share – [removed: $43,990,689,000] [added: $43,242,396,000] (computed on the basis of [removed: $291.88] [added: $287.65] per share, which was the reported closing sale price of the Company's Common Shares on the New York Stock Exchange (the “NYSE”) on June [removed: 30, 2023).][added: 28, 2024).]

As of February [removed: 13, 2024,] [added: 18, 2025,] there were [removed: 175,691,404] [added: 175,415,530] outstanding Common Shares, $0.10 par value per share.

Portions of the definitive proxy statement to be filed in connection with the Annual Meeting of Shareholders to be held in [removed: 2024] [added: 2025] are incorporated by reference into Part III of this Annual Report on Form 10-K to the extent described therein.

For the Fiscal Year Ended December 31, [removed: 2023][added: 2024]

| [Item [removed: 1A.](#i60029acf4dfb4ba182b58e6021c966e4_274)] [added: 1A.](#icb784cf550774f47a8eccc401370492e_292)] | | | [Risk [removed: Factors](#i60029acf4dfb4ba182b58e6021c966e4_274)] [added: Factors](#icb784cf550774f47a8eccc401370492e_292)] | | | [removed: [7](#i60029acf4dfb4ba182b58e6021c966e4_274)] [added: [8](#icb784cf550774f47a8eccc401370492e_292)] | | |

| [Item [removed: 1B.](#i60029acf4dfb4ba182b58e6021c966e4_277)] [added: 1B.](#icb784cf550774f47a8eccc401370492e_295)] | | | [Unresolved Staff [removed: Comments](#i60029acf4dfb4ba182b58e6021c966e4_277)] [added: Comments](#icb784cf550774f47a8eccc401370492e_295)] | | | [removed: [18](#i60029acf4dfb4ba182b58e6021c966e4_277)] [added: [18](#icb784cf550774f47a8eccc401370492e_295)] | | |

| [Item [removed: 1C.](#i60029acf4dfb4ba182b58e6021c966e4_1479)] [added: 1C.](#icb784cf550774f47a8eccc401370492e_298)] | | | [removed: [Cybersecurity](#i60029acf4dfb4ba182b58e6021c966e4_1479)] [added: [Cybersecurity](#icb784cf550774f47a8eccc401370492e_298)] | | | [removed: [18](#i60029acf4dfb4ba182b58e6021c966e4_1479)] [added: [19](#icb784cf550774f47a8eccc401370492e_298)] | | |

| [Item [removed: 3.](#i60029acf4dfb4ba182b58e6021c966e4_283)] [added: 3.](#icb784cf550774f47a8eccc401370492e_304)] | | | [Legal [removed: Proceedings](#i60029acf4dfb4ba182b58e6021c966e4_283)] [added: Proceedings](#icb784cf550774f47a8eccc401370492e_304)] | | | [removed: [22](#i60029acf4dfb4ba182b58e6021c966e4_283)] [added: [22](#icb784cf550774f47a8eccc401370492e_304)] | | |

| [Item [removed: 4.](#i60029acf4dfb4ba182b58e6021c966e4_286)] [added: 4.](#icb784cf550774f47a8eccc401370492e_307)] | | | [Mine Safety [removed: Disclosures](#i60029acf4dfb4ba182b58e6021c966e4_286)] [added: Disclosures](#icb784cf550774f47a8eccc401370492e_307)] | | | [removed: [22](#i60029acf4dfb4ba182b58e6021c966e4_286)] [added: [22](#icb784cf550774f47a8eccc401370492e_307)] | | |

| [Item [removed: 5.](#i60029acf4dfb4ba182b58e6021c966e4_292)] [added: 5.](#icb784cf550774f47a8eccc401370492e_313)] | | | [Market for Registrant’s Common Equity, Related Shareholder Matters and Issuer Purchases of Equity [removed: Securities](#i60029acf4dfb4ba182b58e6021c966e4_292)] [added: Securities](#icb784cf550774f47a8eccc401370492e_313)] | | | [removed: [23](#i60029acf4dfb4ba182b58e6021c966e4_292)] [added: [23](#icb784cf550774f47a8eccc401370492e_313)] | | |

| [Item [removed: 7.](#i60029acf4dfb4ba182b58e6021c966e4_127)] [added: 7.](#icb784cf550774f47a8eccc401370492e_127)] | | | [Management’s Discussion and Analysis of Financial Condition and Results of [removed: Operations](#i60029acf4dfb4ba182b58e6021c966e4_127)] [added: Operations](#icb784cf550774f47a8eccc401370492e_127)] | | | [removed: [23](#i60029acf4dfb4ba182b58e6021c966e4_127)] [added: [23](#icb784cf550774f47a8eccc401370492e_127)] | | |

| [Item [removed: 7A.](#i60029acf4dfb4ba182b58e6021c966e4_229)] [added: 7A.](#icb784cf550774f47a8eccc401370492e_244)] | | | [Quantitative and Qualitative Disclosures about Market [removed: Risk](#i60029acf4dfb4ba182b58e6021c966e4_229)] [added: Risk](#icb784cf550774f47a8eccc401370492e_244)] | | | [removed: [52](#i60029acf4dfb4ba182b58e6021c966e4_229)] [added: [52](#icb784cf550774f47a8eccc401370492e_244)] | | |

| [Item [removed: 8.](#i60029acf4dfb4ba182b58e6021c966e4_298)] [added: 8.](#icb784cf550774f47a8eccc401370492e_319)] | | | [Financial Statements and Supplementary [removed: Data](#i60029acf4dfb4ba182b58e6021c966e4_298)] [added: Data](#icb784cf550774f47a8eccc401370492e_319)] | | | [removed: [52](#i60029acf4dfb4ba182b58e6021c966e4_298)] [added: [52](#icb784cf550774f47a8eccc401370492e_319)] | | |

| [Item [removed: 9.](#i60029acf4dfb4ba182b58e6021c966e4_301)] [added: 9.](#icb784cf550774f47a8eccc401370492e_322)] | | | [Changes in and Disagreements With Accountants on Accounting and Financial [removed: Disclosure](#i60029acf4dfb4ba182b58e6021c966e4_301)] [added: Disclosure](#icb784cf550774f47a8eccc401370492e_322)] | | | [removed: [52](#i60029acf4dfb4ba182b58e6021c966e4_301)] [added: [52](#icb784cf550774f47a8eccc401370492e_322)] | | |

| [Item [removed: 9A.](#i60029acf4dfb4ba182b58e6021c966e4_304)] [added: 9A.](#icb784cf550774f47a8eccc401370492e_325)] | | | [Controls and [removed: Procedures](#i60029acf4dfb4ba182b58e6021c966e4_304)] [added: Procedures](#icb784cf550774f47a8eccc401370492e_325)] | | | [removed: [52](#i60029acf4dfb4ba182b58e6021c966e4_304)] [added: [52](#icb784cf550774f47a8eccc401370492e_325)] | | |

| [Item [removed: 9B.](#i60029acf4dfb4ba182b58e6021c966e4_310)] [added: 9B.](#icb784cf550774f47a8eccc401370492e_331)] | | | [Other [removed: Information](#i60029acf4dfb4ba182b58e6021c966e4_310)] [added: Information](#icb784cf550774f47a8eccc401370492e_331)] | | | [removed: [55](#i60029acf4dfb4ba182b58e6021c966e4_310)] [added: [55](#icb784cf550774f47a8eccc401370492e_331)] | | |

| [Item [removed: 9C.](#i60029acf4dfb4ba182b58e6021c966e4_313)] [added: 9C.](#icb784cf550774f47a8eccc401370492e_334)] | | | [Disclosure Regarding Foreign Jurisdictions that Prevent [removed: Inspections](#i60029acf4dfb4ba182b58e6021c966e4_313)] [added: Inspections](#icb784cf550774f47a8eccc401370492e_334)] | | | [removed: [55](#i60029acf4dfb4ba182b58e6021c966e4_313)] [added: [55](#icb784cf550774f47a8eccc401370492e_334)] | | |

| [Item [removed: 10.](#i60029acf4dfb4ba182b58e6021c966e4_319)] [added: 10.](#icb784cf550774f47a8eccc401370492e_340)] | | | [Trustees, Executive Officers and Corporate [removed: Governance](#i60029acf4dfb4ba182b58e6021c966e4_319)] [added: Governance](#icb784cf550774f47a8eccc401370492e_340)] | | | [removed: [56](#i60029acf4dfb4ba182b58e6021c966e4_319)] [added: [56](#icb784cf550774f47a8eccc401370492e_340)] | | |

| [Item [removed: 11.](#i60029acf4dfb4ba182b58e6021c966e4_322)] [added: 11.](#icb784cf550774f47a8eccc401370492e_343)] | | | [Executive [removed: Compensation](#i60029acf4dfb4ba182b58e6021c966e4_322)] [added: Compensation](#icb784cf550774f47a8eccc401370492e_343)] | | | [removed: [56](#i60029acf4dfb4ba182b58e6021c966e4_322)] [added: [56](#icb784cf550774f47a8eccc401370492e_343)] | | |

| [Item [removed: 12.](#i60029acf4dfb4ba182b58e6021c966e4_325)] [added: 12.](#icb784cf550774f47a8eccc401370492e_346)] | | | [Security Ownership of Certain Beneficial Owners and Management and Related Shareholder [removed: Matters](#i60029acf4dfb4ba182b58e6021c966e4_325)] [added: Matters](#icb784cf550774f47a8eccc401370492e_346)] | | | [removed: [56](#i60029acf4dfb4ba182b58e6021c966e4_325)] [added: [57](#icb784cf550774f47a8eccc401370492e_346)] | | |

| [Item [removed: 13.](#i60029acf4dfb4ba182b58e6021c966e4_328)] [added: 13.](#icb784cf550774f47a8eccc401370492e_349)] | | | [Certain Relationships and Related Transactions and Trustee [removed: Independence](#i60029acf4dfb4ba182b58e6021c966e4_328)] [added: Independence](#icb784cf550774f47a8eccc401370492e_349)] | | | [removed: [57](#i60029acf4dfb4ba182b58e6021c966e4_328)] [added: [57](#icb784cf550774f47a8eccc401370492e_349)] | | |

| [Item [removed: 14.](#i60029acf4dfb4ba182b58e6021c966e4_331)] [added: 14.](#icb784cf550774f47a8eccc401370492e_352)] | | | [Principal Accountant Fees and [removed: Services](#i60029acf4dfb4ba182b58e6021c966e4_331)] [added: Services](#icb784cf550774f47a8eccc401370492e_352)] | | | [removed: [57](#i60029acf4dfb4ba182b58e6021c966e4_331)] [added: [57](#icb784cf550774f47a8eccc401370492e_352)] | | |

| [Item [removed: 15.](#i60029acf4dfb4ba182b58e6021c966e4_337)] [added: 15.](#icb784cf550774f47a8eccc401370492e_358)] | | | [Exhibits and Financial Statement [removed: Schedules](#i60029acf4dfb4ba182b58e6021c966e4_337)] [added: Schedules](#icb784cf550774f47a8eccc401370492e_358)] | | | [removed: [58](#i60029acf4dfb4ba182b58e6021c966e4_337)] [added: [58](#icb784cf550774f47a8eccc401370492e_358)] | | |

| [Item 1.](#icb784cf550774f47a8eccc401370492e_289) | | | [Business](#icb784cf550774f47a8eccc401370492e_289) | | | [1](#icb784cf550774f47a8eccc401370492e_289) | | |

| [Item 2.](#icb784cf550774f47a8eccc401370492e_301) | | | [Properties](#icb784cf550774f47a8eccc401370492e_301) | | | [21](#icb784cf550774f47a8eccc401370492e_301) | | |

| [Item 6.](#icb784cf550774f47a8eccc401370492e_316) | | | [\[Reserved\]](#icb784cf550774f47a8eccc401370492e_316) | | | [23](#icb784cf550774f47a8eccc401370492e_316) | | |

☒ Relates to an immaterial correction having no impact on our net income within the statements of income, nor any impact to our balance sheet, statements of comprehensive income, statements of equity and redeemable noncontrolling interests, or statements of cash flows as of and for the years ended December 31, 2022 and 2021.

Refer to Note 2 of our Consolidated Financial Statements.

| [Item 1.](#i60029acf4dfb4ba182b58e6021c966e4_271) | | | [Business](#i60029acf4dfb4ba182b58e6021c966e4_271) | | | [1](#i60029acf4dfb4ba182b58e6021c966e4_271) | | |

| [Item 2.](#i60029acf4dfb4ba182b58e6021c966e4_280) | | | [Properties](#i60029acf4dfb4ba182b58e6021c966e4_280) | | | [21](#i60029acf4dfb4ba182b58e6021c966e4_280) | | |

| [Item 6.](#i60029acf4dfb4ba182b58e6021c966e4_295) | | | [\[Reserved\]](#i60029acf4dfb4ba182b58e6021c966e4_295) | | | [23](#i60029acf4dfb4ba182b58e6021c966e4_295) | | |

They are led by our Chief Technology Officer (CTO), who has [removed: served] [added: significant experience] in senior leadership positions with responsibility for cybersecurity and IT risk [removed: management for over 10 years,] [added: management,] and our [removed: Vice President, Management] [added: Chief] Information [removed: Systems (VPMIS),] [added: Security Officer (CISO),] who [removed: has been] [added: is] a Certified Information Systems Security Professional [removed: (CISSP) since 2016.][added: (CISSP).]

Our CTO and [removed: VPMIS] [added: CISO] regularly engage with our Chief Administrative Officer.

Our CTO and [removed: VPMIS] [added: CISO typically] provide quarterly reports to the Audit Committee, which also provides quarterly reports on its activities to the Board.

Annually, we are assessed, either internally or by an independent third party, against the National Institute of Standards and Technology (NIST) [removed: Cybersecurity Framework.][added: 800-53 Moderate Baseline.]

We employ [removed: a robust] [added: an] information security and training program for our employees, including [added: annual] mandatory computer-based training, regular internal communications, and ongoing end-user testing to measure the effectiveness of our information security program.

Annually, we test the IRP’s response procedures, including [removed: through] [added: thorough] disaster response and business continuity plan exercises.

Once a potential cybersecurity incident is identified, including a third-party cybersecurity event, the incident response team designated pursuant to the IRP follows the procedures set forth in the plan to investigate the potential incident, including determining the nature of the [removed: event (e.g. ransomware or personal data breach) and assessing the severity of the event and sensitivity of any compromised data.][added: event.]

These activities depend on the nature of the cybersecurity incident and may include rebuilding systems and/or hosts, replacing compromised files with clean [removed: versions,] [added: versions and] validation of files or data that may have been [removed: affected, increased network monitoring or logging to identify recurring attacks, monitoring dark or deep web forums, reconfiguring administrative account access, hardening network security such as firewall configurations, and employee re-training.][added: affected.]

Our IRP sets forth the procedures we follow in responding to a cybersecurity incidents.

As of December 31, 2024, we have not had any known instances of material cybersecurity incidents, including known third-party provider incidents.

However, there can be no assurance that our security efforts and measures, and those of our third-party providers, will be effective or that attempted security incidents or disruptions would not be successful or damaging.

The Audit Committee periodically evaluates our cybersecurity strategy to ensure its effectiveness.

In the event of a cybersecurity incident, our first priority is to contain the cybersecurity incident as quickly as possible consistent with the procedures in our IRP.

As of December 31, 2023, we are not aware of any material cybersecurity incidents in the last three years.

However, we routinely face risks of potential incidents, whether through cyber-attacks or cyber intrusions over the Internet, ransomware and other forms of malware, computer viruses, attachment to emails, phishing attempts, extortion or other scams that we have been able to prevent or sufficiently mitigate harm from.

Although we make efforts to maintain the security and integrity of the third-party networks and systems we use, these systems and the proprietary, confidential and personal information that resides on or is transmitted through them, are subject to the risk of a security incident or disruption, and there can be no assurance that our security efforts and measures, and those of our third-party providers.

At December 31, [removed: 2023,] [added: 2024,] we had controlling ownership interests in [removed: 3,044] [added: 3,073] self-storage facilities located in 40 states within the U.S.:

| North Carolina | | | [removed: 110] [added: 111] | | | | | | [removed: 8,110] [added: 8,195] | | |

| Washington | | | 107 | | | | | | [removed: 7,586] [added: 7,629] | | |

| New York | | | 73 | | | | | | [removed: 5,122] [added: 5,232] | | |

| South Carolina | | | [removed: 81] [added: 83] | | | | | | [removed: 5,031] [added: 5,176] | | |

At December 31, [removed: 2023,] [added: 2024,] two of our facilities with a net book value of [removed: $11.7] [added: $11.2] million were encumbered by an aggregate of [removed: $1.8] [added: $1.7] million in mortgage notes payable.

| | | | At December 31, 2024 | | | | | | | | |

| Texas | | | 464 | | | | | | 39,412 | | |

| California | | | 446 | | | | | | 32,025 | | |

| Florida | | | 365 | | | | | | 25,475 | | |

| Georgia | | | 128 | | | | | | 8,621 | | |

| Maryland | | | 106 | | | | | | 7,990 | | |

| Virginia | | | 121 | | | | | | 7,969 | | |

| Colorado | | | 88 | | | | | | 6,518 | | |

| Ohio | | | 66 | | | | | | 4,511 | | |

| Arizona | | | 60 | | | | | | 4,383 | | |

| Oklahoma | | | 48 | | | | | | 3,499 | | |

| Tennessee | | | 55 | | | | | | 3,443 | | |

| Nevada | | | 34 | | | | | | 2,419 | | |

| Other states (14 states) | | | 152 | | | | | | 9,993 | | |

| Total (a) | | | 3,073 | | | | | | 221,280 | | |

| | | | At December 31, 2023 | | | | | | | | |

| Texas | | | 455 | | | | | | 38,668 | | |

| California | | | 444 | | | | | | 31,419 | | |

| Florida | | | 360 | | | | | | 25,038 | | |

| Georgia | | | 127 | | | | | | 8,555 | | |

| Virginia | | | 120 | | | | | | 7,894 | | |

| Maryland | | | 105 | | | | | | 7,782 | | |

| Colorado | | | 87 | | | | | | 6,468 | | |

| Ohio | | | 65 | | | | | | 4,415 | | |

| Arizona | | | 60 | | | | | | 4,275 | | |

| Oklahoma | | | 48 | | | | | | 3,502 | | |

| Tennessee | | | 52 | | | | | | 3,228 | | |

| Nevada | | | 33 | | | | | | 2,305 | | |

| Other states (14 states) | | | 151 | | | | | | 9,883 | | |

| Total (a) | | | 3,044 | | | | | | 218,071 | | |

As of February [removed: 13, 2024,] [added: 18, 2025,] there were approximately [removed: 9,586] [added: 9,093] holders of record of our common shares.

[removed: Our] [added: In May 2008, our] Board [removed: has] authorized [removed: management to] [added: a share] repurchase [added: program of] up to 35,000,000 of our common shares on the open market or in privately negotiated transactions.

From the inception of the repurchase program through February [removed: 20, 2024,] [added: 24, 2025,] we have repurchased a total of [removed: 23,721,916] [added: 24,448,781] common shares [removed: (all purchased prior to 2010)] at an aggregate cost of approximately [removed: $679.1] [added: $879.1] million.

Our common share repurchase program does not have an expiration date and there are [removed: 11,278,084] [added: 10,551,219] common shares that may yet be repurchased under our repurchase program as of December 31, [removed: 2023.][added: 2024.]

[removed: We have no current plans to repurchase shares; however, future levels] [added: The timing, manner, price and amount] of [added: any future] common share repurchases will be dependent upon [added: a number of factors, including] our available capital, investment alternatives, [added: economic conditions, applicable legal requirements,] and the trading price of our common shares.

Under the repurchase program, management may repurchase our common shares on the open market or in privately negotiated transactions.

During the three months ended December 31, 2024, we did not repurchase any of our common shares.

As of December 31, [removed: 2023,] [added: 2024,] we carried out an evaluation, under the supervision and with the participation of management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act).

Based on that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective as of December 31, [removed: 2023,] [added: 2024,] at a reasonable assurance level.

Based on our evaluation under the framework in *Internal Control-Integrated Framework*, our management concluded that our internal control over financial reporting was effective as of December 31, [removed: 2023.][added: 2024.]

The effectiveness of internal control over financial reporting as of December 31, [removed: 2023,] [added: 2024,] has been audited by Ernst & Young LLP, an independent registered public accounting firm.

There have not been any changes in our internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the fourth quarter of [removed: 2023] [added: 2024] to which this report relates that have materially affected, or are reasonable likely to materially affect, our internal control over financial reporting.

To the Shareholders and [added: the] Board of Trustees of Public Storage

We have audited Public Storage’s internal control over financial reporting as of December 31, [removed: 2023,] [added: 2024,] based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria).

In our opinion, Public Storage (the Company) maintained, in all material respects, effective internal control over financial reporting as of December 31, [removed: 2023,] [added: 2024,] based on the COSO criteria.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of December 31, [removed: 2023] [added: 2024] and [removed: 2022,] [added: 2023,] the related consolidated statements of income, comprehensive income, equity and redeemable noncontrolling interests and cash flows for each of the three years in the period ended December 31, [removed: 2023] [added: 2024] and the related notes and financial statement schedule listed in the Index at Item 15(a) and our report dated February [removed: 20, 2024] [added: 24, 2025] expressed an unqualified opinion thereon.

February 24, 2025

February 20, 2024

During the three months ended December 31, [removed: 2023,] [added: 2024,] no trustee or officer of the Company, nor the Company itself, adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408(a) of Regulation S-K.

Russell, Jr., age [removed: 64,] [added: 65,] has served as Chief Executive Officer since January 1, 2019, and as President since July 2016.

Thomas Boyle, age [removed: 40,] [added: 42,] has served as Chief Financial Officer since January 1, 2019 and Chief Investment Officer since January 1, 2023.

Mr. Boyle has served as a director of Shurgard [added: and a member of Shurgard’s Real Estate Investment Committee] since May 2023.

Johnson, age [removed: 46,] [added: 47,] has served as Chief Administrative Officer since August 4, 2020.

Vitan, age [removed: 50,] [added: 51,] has served as Senior Vice President, Chief Legal Officer and Corporate Secretary since April 20, 2019, and was previously Vice President and Chief Counsel–Litigation and Operations since joining the Company in June 2016 until April 2019.

Other information required by this item is hereby incorporated by reference to the material appearing in the Company’s Notice and Proxy Statement for its [removed: 2024] [added: 2025] Annual Meeting of Shareholders, to be filed pursuant to Regulation 14A under the Exchange Act.

Chris C.

Sambar, age 51, has served as our Chief Operating Officer since he joined the Company on October 14, 2024.

Prior to joining the Company, Mr. Sambar held various roles of increasing responsibility at AT&T Communications since 2002, most recently as President, AT&T Network from August 2022 to October 2024 and as Executive Vice President, AT&T Network from September 2019 to August 2022.

Mr. Sambar has served as a director of AST SpaceMobile, Inc. (NASDAQ: ASTS) since June 2024.

The information required by this item is hereby incorporated by reference to the material appearing in the Company’s Notice and Proxy Statement for its [removed: 2024] [added: 2025] Annual Meeting of Shareholders, to be filed pursuant to Regulation 14A under the Exchange Act.

The following table sets forth information, as of December 31, [removed: 2023] [added: 2024] on the Company’s equity compensation plans:

| Plan Category | | | | | | Number of securities to be issued upon exercise [added: or conversion] of outstanding options, [added: AO LTIP units,] warrants, and rights | | | | | | Weighted-average exercise [added: or conversion] price of outstanding options, [added: AO LITP units,] warrants, and rights | | | | | | Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (A)) | | |

a)The Company’s equity compensation plans are described more fully in Note [removed: 12] [added: 11] to the December 31, [removed: 2023] [added: 2024] financial statements.

b)Includes (i) stock options [added: and AO LTIP units] to purchase [removed: 3,244,606] [added: 2,727,342] common [removed: shares,] [added: shares or to convert to vested LTIP units,] including performance-based stock options [added: and AO LTIP units] as to which the performance period had not ended or the Compensation Committee had not certified performance as of December 31, [removed: 2023,] [added: 2024,] which stock options [added: and AO LTIP units] are reflected in the table above assuming a maximum payout, (ii) [removed: 469,387] [added: 451,222] restricted share [added: units and LTIP] units, including performance-based restricted share units [added: and LTIP units] as to which the performance period had not ended as of December 31, [removed: 2023,] [added: 2024,] which restricted share units [added: and LTIP units] are reflected in the table above assuming a maximum payout, and (iii) [removed: 10,769] [added: 11,734] fully vested deferred share units.

All restricted share [added: and LTIP] units, if and when vested, and all deferred share units will be settled in common shares [added: or into common units of PSA OP] on a one-for-one basis.

c)Represents the weighted average exercise [added: or conversion] price of stock options [added: or AO LTIP units] to purchase [removed: 2,857,836] [added: 2,373,588] common [removed: shares,] [added: shares or to convert to vested LTIP units,] excluding the performance-based stock options [added: and AO LTIP units] described in footnote (b), above.

The [removed: 469,387] [added: 451,222] restricted share [added: or LTIP] units would vest for no consideration.

Other information required by this item is hereby incorporated by reference to the material appearing in the Company’s Notice and Proxy Statement for its [removed: 2024] [added: 2025] Annual Meeting of Shareholders, to be filed pursuant to Regulation 14A under the Exchange Act.

| Equity compensation plans approved by security holders (a) | | | | | | 3,190,298 (b) | | | | | | $ 231.89 (c) | | | | | | 1,074,064 | | |

| Total | | | | | | 3,190,298 (b) | | | | | | $ 231.89 (c) | | | | | | 1,074,064 | | |

| Equity compensation plans approved by security holders (a) | | | | | | 3,724,762 (b) | | | | | | $ 220.18 (c) | | | | | | 1,364,578 | | |

| Total | | | | | | 3,724,762 (b) | | | | | | $ 220.18 (c) | | | | | | 1,364,578 | | |

The information required by this item is hereby incorporated by reference to the material appearing in the Company’s Notice and Proxy Statement for its [removed: 2024] [added: 2025] Annual Meeting of Shareholders, to be filed pursuant to Regulation 14A under the Exchange Act.

The information required by this item is hereby incorporated by reference to the material appearing in the Company’s Notice and Proxy Statement for its [removed: 2024] [added: 2025] Annual Meeting of Shareholders, to be filed pursuant to Regulation 14A under the Exchange Act of 1934.

| 2.1 | | | [Agreement and Plan of Merger, dated August 2, 2023, by and among Old PSA, New PSA and Merger Sub. Filed as Exhibit 2.1 to the Company’s Current Report on For 8-K dated August 2, 2023 and incorporated herein by [removed: reference.](http://www.sec.gov/Archives/edgar/data/1393311/000119312523201692/d499749dex21.htm)] [added: reference.](https://www.sec.gov/Archives/edgar/data/1393311/000119312523201692/d499749dex21.htm)] | | |

| 3.1 | | | [Amended and Restated Declaration of Trust of Public Storage, a Maryland real estate investment trust, dated August 14, 2023. Filed as Exhibit 3.1 to the Company’s Current Report on Form 8-K dated August 14, 2023 and incorporated herein by [removed: reference.](http://www.sec.gov/Archives/edgar/data/1393311/000119312523211436/d542893dex31.htm)] [added: reference.](https://www.sec.gov/Archives/edgar/data/1393311/000119312523211436/d542893dex31.htm)] | | |

| 3.2 | | | [Amended and Restated Bylaws of Public Storage. Filed as Exhibit 3.1 to the Company’s Current Report on Form 8-K dated November 13, 2023 and incorporated herein by [removed: reference.](http://www.sec.gov/Archives/edgar/data/1393311/000119312523276005/d320869dex31.htm)] [added: reference.](https://www.sec.gov/Archives/edgar/data/1393311/000119312523276005/d320869dex31.htm)] | | |

| 3.3 | | | [Articles of Merger. Filed as Exhibit 3.3 to the Company’s Current Report on Form 8-K dated August 14, 2023 and incorporated herein by [removed: reference.](http://www.sec.gov/Archives/edgar/data/1393311/000119312523211436/d542893dex33.htm)] [added: reference.](https://www.sec.gov/Archives/edgar/data/1393311/000119312523211436/d542893dex33.htm)] | | |

| 3.4 | | | [Articles Supplementary of Public Storage, dated August 2, 2023. Filed as Exhibit 3.1 to the Company’s Current Report on Form 8-K dated August 2, 2023 and incorporated herein by [removed: reference.](http://www.sec.gov/Archives/edgar/data/1393311/000119312523201692/d499749dex31.htm)] [added: reference.](https://www.sec.gov/Archives/edgar/data/1393311/000119312523201692/d499749dex31.htm)] | | |

| 4.1 | | | [Description of the Company’s Securities Registered Pursuant to Section 12 of the Securities Exchange Act of [removed: 1934.](https://www.sec.gov/Archives/edgar/data/1393311/000139331124000043/psa-123123xex4_1.htm) [Filed](https://www.sec.gov/Archives/edgar/data/1393311/000139331124000043/psa-123123xex4_1.htm) [h](https://www.sec.gov/Archives/edgar/data/1393311/000139331124000043/psa-123123xex4_1.htm)[erewith.](https://www.sec.gov/Archives/edgar/data/1393311/000139331124000043/psa-123123xex4_1.htm)] [added: 1934. Filed as Exhibit 4.1 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1393311/000139331124000043/psa-123123xex4_1.htm)] | | |

| 4.2 | | | [Master Deposit Agreement, dated as of May 31, 2007. Filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K dated June 6, 2007 and incorporated herein by [removed: reference.](http://www.sec.gov/Archives/edgar/data/1393311/000119312507130364/dex101.htm)] [added: reference.](https://www.sec.gov/Archives/edgar/data/1393311/000119312507130364/dex101.htm)] | | |

| 4.3 | | | [Amended and Restated Indenture, dated as of August 14, 2023, among Public Storage, Public Storage Operating Company and Computershare Trust Company, N.A. (as successor to Wells Fargo Bank, National Association), as trustee. Filed as Exhibit A to Exhibit 4.1 to the Company’s Current Report on Form 8-K dated August 14, 2023 and incorporated herein by [removed: reference.](http://www.sec.gov/Archives/edgar/data/1393311/000119312523211436/d542893dex41.htm)] [added: reference.](https://www.sec.gov/Archives/edgar/data/1393311/000119312523211436/d542893dex41.htm)] | | |

| 4.4 | | | [First Supplemental Indenture, dated as of September 18, 2017, between Public Storage and Wells Fargo Bank, National Association, as trustee, including the form of Global Note representing the 2022 Notes and the form of Global Note representing the 2027 Notes. Filed as Exhibit 4.2 to the Company’s Current Report on Form 8-K dated September 18, 2017 and incorporated herein by [removed: reference.](http://www.sec.gov/Archives/edgar/data/1393311/000119312517287377/d443739dex42.htm)] [added: reference.](https://www.sec.gov/Archives/edgar/data/1393311/000119312517287377/d443739dex42.htm)] | | |

| 4.5 | | | [Second Supplemental Indenture, dated as of April 12, 2019, between Public Storage and Wells Fargo Bank, National Association, as trustee, including the form of Global Note representing the 2029 Notes. Filed as Exhibit 4.2 to the Company’s Current Report on Form 8-K dated April 12, 2019 and incorporated herein by [removed: reference.](http://www.sec.gov/Archives/edgar/data/1393311/000119312519105162/d735473dex42.htm)] [added: reference.](https://www.sec.gov/Archives/edgar/data/1393311/000119312519105162/d735473dex42.htm)] | | |

| 4.6 | | | [Third Supplemental Indenture, dated as of January 24, 2020, between Public Storage and Wells Fargo Bank, National Association, as trustee, including the form of Global Note representing the 2032 Notes. Filed as Exhibit 4.2 to the Company’s Current Report on Form 8-K dated January 24, 2020 and incorporated herein by [removed: reference.](http://www.sec.gov/Archives/edgar/data/1393311/000119312520014211/d877682dex42.htm)] [added: reference.](https://www.sec.gov/Archives/edgar/data/1393311/000119312520014211/d877682dex42.htm)] | | |

| 4.7 | | | [Fourth Supplemental Indenture, dated as of January 19, 2021, between Public Storage and Wells Fargo Bank, National Association, as trustee, including the form of Global Note representing the 2026 Notes. Filed as Exhibit 4.2 to the Company’s Current Report on Form 8-K dated January 14, 2021 and incorporated herein by [removed: reference.](http://www.sec.gov/Archives/edgar/data/0001393311/000119312521011436/d105642dex42.htm)] [added: reference.](https://www.sec.gov/Archives/edgar/data/0001393311/000119312521011436/d105642dex42.htm)] | | |

| 4.8 | | | [Fifth Supplemental Indenture, dated as of April 23, 2021, between Public Storage and Wells Fargo Bank, National Association, as trustee, including the form of Global Note representing the Floating Rate Notes. Filed as Exhibit 4.2 to the Company’s Current Report on Form 8-K dated April 23, 2021 and incorporated herein by [removed: reference.](http://www.sec.gov/Archives/edgar/data/1393311/000119312521128967/d135565dex42.htm)] [added: reference.](https://www.sec.gov/Archives/edgar/data/1393311/000119312521128967/d135565dex42.htm)] | | |

| 4.9 | | | [Sixth Supplemental Indenture, dated as of April 23, 2021, between Public Storage and Wells Fargo Bank, National Association, as trustee, including the form of Global Note representing the 2028 Notes. Filed as Exhibit 4.3 to the Company’s Current Report on Form 8-K dated April 23, 2021 and incorporated herein by [removed: reference.](http://www.sec.gov/Archives/edgar/data/1393311/000119312521128967/d135565dex43.htm)] [added: reference.](https://www.sec.gov/Archives/edgar/data/1393311/000119312521128967/d135565dex43.htm)] | | |

| 4.10 | | | [Seventh Supplemental Indenture, dated as of April 23, 2021, between Public Storage and Wells Fargo Bank, National Association, as trustee, including the form of Global Note representing the 2031 Notes. Filed as Exhibit 4.4 to the Company’s Current Report on Form 8-K dated April 23, 2021 and incorporated herein by [removed: reference.](http://www.sec.gov/Archives/edgar/data/1393311/000119312521128967/d135565dex44.htm)] [added: reference.](https://www.sec.gov/Archives/edgar/data/1393311/000119312521128967/d135565dex44.htm)] | | |

| 4.11 | | | [Eighth Supplemental Indenture, dated as of September 9, 2021, between Public Storage and Wells Fargo Bank, National Association, as trustee, including the form of Global Note representing the 2030 Notes. Filed as Exhibit 4.2 to the Company’s Current Report on Form 8-K dated September 9, 2021 and incorporated herein by [removed: reference.](http://www.sec.gov/Archives/edgar/data/1393311/000119312521268821/d228573dex42.htm)] [added: reference.](https://www.sec.gov/Archives/edgar/data/1393311/000119312521268821/d228573dex42.htm)] | | |

| 4.12 | | | [Ninth Supplemental Indenture, dated as of November 9, 2021, between Public Storage and Computershare Trust Company, N.A. (as successor to Wells Fargo Bank, National Association), as trustee, including the form of Global Note representing the 2026 Notes. Filed as Exhibit 4.2 to the Company’s Current Report on Form 8-K dated November 9, 2021 and incorporated herein by [removed: reference.](http://www.sec.gov/Archives/edgar/data/1393311/000119312521324419/d257375dex42.htm)] [added: reference.](https://www.sec.gov/Archives/edgar/data/1393311/000119312521324419/d257375dex42.htm)] | | |

| 4.13 | | | [Tenth Supplemental Indenture, dated as of November 9, 2021, between Public Storage and Computershare Trust Company, N.A. (as successor to Wells Fargo Bank, National Association), as trustee, including the form of Global Note representing the 2028 Notes. Filed as Exhibit 4.3 to the Company’s Current Report on Form 8-K dated November 9, 2021 and incorporated herein by [removed: reference.](http://www.sec.gov/Archives/edgar/data/1393311/000119312521324419/d257375dex43.htm)] [added: reference.](https://www.sec.gov/Archives/edgar/data/1393311/000119312521324419/d257375dex43.htm)] | | |

| 4.14 | | | [Eleventh Supplemental Indenture, dated as of November 9, 2021, between Public Storage and Computershare Trust Company, N.A. (as successor to Wells Fargo Bank, National Association), as trustee, including the form of Global Note representing the 2031 Notes. Filed as Exhibit 4.4 to the Company’s Current Report on Form 8-K dated November 9, 2021 and incorporated herein by [removed: reference.](http://www.sec.gov/Archives/edgar/data/1393311/000119312521324419/d257375dex44.htm)] [added: reference.](https://www.sec.gov/Archives/edgar/data/1393311/000119312521324419/d257375dex44.htm)] | | |

| 4.15 | | | [Twelfth Supplemental Indenture, dated as of July 26, 2023, between Public Storage and Computershare Trust Company, N.A. (as successor to Wells Fargo Bank, National Association), as trustee, including the form of Global Note representing the 2033 Notes. Filed as Exhibit 4.2 to the Company’s Current Report on Form 8-K dated July 26, 2023 and incorporated herein by [removed: reference.](http://www.sec.gov/Archives/edgar/data/1393311/000119312523194622/d480799dex42.htm)] [added: reference.](https://www.sec.gov/Archives/edgar/data/1393311/000119312523194622/d480799dex42.htm)] | | |

| 4.16 | | | [Thirteenth Supplemental Indenture, dated as of July 26, 2023, between Public Storage and Computershare Trust Company, N.A. (as successor to Wells Fargo Bank, National Association), as trustee, including the form of Global Note representing the 2029 Notes. Filed as Exhibit 4.3 to the Company’s Current Report on Form 8-K dated July 26, 2023 and incorporated herein by [removed: reference.](http://www.sec.gov/Archives/edgar/data/1393311/000119312523194622/d480799dex43.htm)] [added: reference.](https://www.sec.gov/Archives/edgar/data/1393311/000119312523194622/d480799dex43.htm)] | | |

| 4.17 | | | [Fourteenth Supplemental Indenture, dated as of July 26, 2023, between Public Storage and Computershare Trust Company, N.A. (as successor to Wells Fargo Bank, National Association), as trustee, including the form of Global Note representing the 2033 Notes. Filed as Exhibit 4.4 to the Company’s Current Report on Form 8-K dated July 26, 2023 and incorporated herein by [removed: reference.](http://www.sec.gov/Archives/edgar/data/1393311/000119312523194622/d480799dex44.htm)] [added: reference.](https://www.sec.gov/Archives/edgar/data/1393311/000119312523194622/d480799dex44.htm)] | | |

| 4.18 | | | [Fifteenth Supplemental Indenture, dated as of July 26, 2023, between Public Storage and Computershare Trust Company, N.A. (as successor to Wells Fargo Bank, National Association), as trustee, including the form of Global Note representing the 2053 Notes. Filed as Exhibit 4.5 to the Company’s Current Report on Form 8-K dated July 26, 2023 and incorporated herein by [removed: reference.](http://www.sec.gov/Archives/edgar/data/1393311/000119312523194622/d480799dex45.htm)] [added: reference.](https://www.sec.gov/Archives/edgar/data/1393311/000119312523194622/d480799dex45.htm)] | | |

| 4.19 | | | [Sixteenth Supplemental Indenture, dated August 14, 2023, by and among Public Storage Operating Company, Public Storage and Computershare Trust Company, N.A. Filed as Exhibit 4.1 to the Company’s Current Report on Form 8-K dated August 14, 2023 and incorporated herein by [removed: reference.](http://www.sec.gov/Archives/edgar/data/1393311/000119312523211436/d542893dex41.htm)] [added: reference.](https://www.sec.gov/Archives/edgar/data/1393311/000119312523211436/d542893dex41.htm)] | | |

| [removed: 10.1] [added: 10.2] | | | [Note Purchase Agreement, dated as of November 3, 2015, by and among Public Storage and the signatories thereto. Filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K dated November 3, 2015 and incorporated herein by [removed: reference.](http://www.sec.gov/Archives/edgar/data/1393311/000139331115000031/psa-20151104ex101c7717b.htm)] [added: reference.](https://www.sec.gov/Archives/edgar/data/1393311/000139331115000031/psa-20151104ex101c7717b.htm)] | | |

| [removed: 10.2] [added: 10.3] | | | [Note Purchase Agreement, dated as of April 12, 2016, by and among Public Storage and the signatories thereto. Filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K dated April 12, 2016 and incorporated herein by [removed: reference.](http://www.sec.gov/Archives/edgar/data/1393311/000139331116000038/psa-20160413xex10_1.htm)] [added: reference.](https://www.sec.gov/Archives/edgar/data/1393311/000139331116000038/psa-20160413xex10_1.htm)] | | |

| [removed: 10.3] [added: 10.4] | | | [Amendment No. 1 to 2015 Note Purchase Agreement, dated as of July 28, 2023, by and among Public Storage and the signatories thereto. Filed as Exhibit 10.2 to the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2023 and incorporated herein by [removed: reference.](http://www.sec.gov/Archives/edgar/data/1393311/000139331123000096/psa-93023xex10_2.htm)] [added: reference.](https://www.sec.gov/Archives/edgar/data/1393311/000139331123000096/psa-93023xex10_2.htm)] | | |

| [removed: 10.4] [added: 10.5] | | | [Amendment No. 1 to 2016 Note Purchase Agreement, dated as of July 28, 2023, by and among Public Storage and the signatories thereto. Filed as Exhibit 10.3 to the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2023 and incorporated herein by [removed: reference.](http://www.sec.gov/Archives/edgar/data/1393311/000139331123000096/psa-93023xex10_3.htm)] [added: reference.](https://www.sec.gov/Archives/edgar/data/1393311/000139331123000096/psa-93023xex10_3.htm)] | | |

| [removed: 10.5] [added: 10.7] | | | [Third Amended and Restated Credit Agreement, dated as of June 12, 2023, by and among the Company, the financial institutions party thereto, Wells Fargo Securities, LLC, BofA Securities, Inc. and JPMorgan Chase Bank, N.A., as Joint Bookrunners, Wells Fargo Securities, LLC, BofA Securities, Inc., JPMorgan Chase Bank, N.A., The Bank of Nova Scotia, BNP Paribas and Sumitomo Mitsui Banking Corporation, as Joint Lead Arrangers, Wells Fargo Bank, National Association, as Agent, Bank of America, N.A. and JPMorgan Chase Bank, N.A., as Co-Syndication Agents, and PNC Bank, National Association, TD Bank, N.A., The Bank of Nova Scotia, BNP Paribas and Sumitomo Mitsui Banking Corporation, as Documentation Agents. Filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K dated June 12, 2023 and incorporated herein by [removed: reference.](http://www.sec.gov/Archives/edgar/data/1393311/000119312523165399/d518836dex101.htm)] [added: reference.](https://www.sec.gov/Archives/edgar/data/1393311/000119312523165399/d518836dex101.htm)] | | |

| [removed: 10.6] [added: 10.8] | | | [Parent Guarantee, dated as of August 14, 2023, by Public Storage. Filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K dated August 14, 2023 and incorporated herein by [removed: reference.](http://www.sec.gov/Archives/edgar/data/1393311/000119312523211436/d542893dex101.htm)] [added: reference.](https://www.sec.gov/Archives/edgar/data/1393311/000119312523211436/d542893dex101.htm)] | | |

| [removed: 10.7] [added: 10.9] | | | [Form of Trustee and Officer Indemnification Agreement. Filed as Exhibit 10.19 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 and incorporated herein by [removed: reference.](http://www.sec.gov/Archives/edgar/data/1393311/000139331117000008/psa-20161231xex10_19.htm)] [added: reference.](https://www.sec.gov/Archives/edgar/data/1393311/000139331117000008/psa-20161231xex10_19.htm)] | | |

| [removed: 10.8*] [added: 10.10*] | | | [Public Storage 2007 Equity and Performance-Based Incentive Compensation Plan, as Amended (2007 Plan). Filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K dated May 1, 2014 and incorporated herein by [removed: reference.](http://www.sec.gov/Archives/edgar/data/1393311/000139331114000011/psa-20140501ex101aec3ff.htm)] [added: reference.](https://www.sec.gov/Archives/edgar/data/1393311/000139331114000011/psa-20140501ex101aec3ff.htm)] | | |

| [removed: 10.9*] [added: 10.11*] | | | [Public Storage 2016 Equity and Performance-Based Incentive Compensation Plan (2016 Plan). Filed as Exhibit 10.6 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 and incorporated herein by [removed: reference.](http://www.sec.gov/Archives/edgar/data/1393311/000139331123000012/psa-123122xex10_62016plan.htm)] [added: reference.](https://www.sec.gov/Archives/edgar/data/1393311/000139331123000012/psa-123122xex10_62016plan.htm)] | | |

| [removed: 10.10*] [added: 10.12*] | | | [removed: [Public] [added: [Restated Public] Storage 2021 Equity and Performance-Based Incentive Compensation Plan (2021 Plan). Filed as Exhibit [removed: 10.7 to] [added: 10.2](https://www.sec.gov/Archives/edgar/data/1393311/000139331124000109/psa-33124xex102.htm) [to] the Company’s [removed: Annual] [added: Quarterly] Report on Form [removed: 10-K] [added: 10-Q] for the [removed: year] [added: quarter] ended [removed: December] [added: March] 31, [removed: 2022 and] [added: 2024](https://www.sec.gov/Archives/edgar/data/1393311/000139331124000109/psa-33124xex102.htm) [and] incorporated herein by [removed: reference.](http://www.sec.gov/Archives/edgar/data/1393311/000139331123000012/psa-123122xex10_72021plan.htm)] [added: reference.](https://www.sec.gov/Archives/edgar/data/1393311/000139331124000109/psa-33124xex102.htm)] | | |

| [removed: 10.11*] [added: 10.13*] | | | [Form of 2007 Plan Restricted Stock Unit Agreement. Filed as Exhibit 10.11 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 and incorporated herein by [removed: reference.](http://www.sec.gov/Archives/edgar/data/1393311/000139331116000036/psa-20151231ex10116996e.htm)] [added: reference.](https://www.sec.gov/Archives/edgar/data/1393311/000139331116000036/psa-20151231ex10116996e.htm)] | | |

| [removed: 10.12*] [added: 10.14*] | | | [Form of 2007 Plan Restricted Stock Unit Agreement (deferral of receipt of shares). Filed as Exhibit 10.12 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 and incorporated herein by [removed: reference](http://www.sec.gov/Archives/edgar/data/1393311/000139331116000036/psa-20151231ex101227ce4.htm).] [added: reference](https://www.sec.gov/Archives/edgar/data/1393311/000139331116000036/psa-20151231ex101227ce4.htm).] | | |

| [removed: 10.13*] [added: 10.15*] | | | [Form of 2007 Plan Stock Option Agreement. Filed as Exhibit 10.13 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 and incorporated herein by [removed: reference.](http://www.sec.gov/Archives/edgar/data/1393311/000139331116000036/psa-20151231ex101308fcd.htm)] [added: reference.](https://www.sec.gov/Archives/edgar/data/1393311/000139331116000036/psa-20151231ex101308fcd.htm)] | | |

| [removed: 10.14*] [added: 10.16*] | | | [Form of 2007 Plan Trustee Stock Option Agreement. Filed as Exhibit 10.14 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 and incorporated herein by [removed: reference.](http://www.sec.gov/Archives/edgar/data/1393311/000139331116000036/psa-20151231ex10145e220.htm)] [added: reference.](https://www.sec.gov/Archives/edgar/data/1393311/000139331116000036/psa-20151231ex10145e220.htm)] | | |

| [removed: 10.15*] [added: 10.17*] | | | [Form of 2016 Plan Restricted Stock Unit Agreement (deferral of receipt of shares). Filed as Exhibit 10.16 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 and incorporated herein by [removed: reference.](http://www.sec.gov/Archives/edgar/data/1393311/000139331117000008/psa-20161231xex10_16.htm)] [added: reference.](https://www.sec.gov/Archives/edgar/data/1393311/000139331117000008/psa-20161231xex10_16.htm)] | | |

| [removed: 10.16*] [added: 10.18*] | | | [Form of 2016 Plan Trustee Non-Qualified Stock Option Agreement. Filed as Exhibit 10.18 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 and incorporated herein by [removed: reference.](http://www.sec.gov/Archives/edgar/data/1393311/000139331117000008/psa-20161231xex10_18.htm)] [added: reference.](https://www.sec.gov/Archives/edgar/data/1393311/000139331117000008/psa-20161231xex10_18.htm)] | | |

| 4.20 | | | [Seventeenth Supplemental Indenture, dated as of April 16, 2024, among Public Storage Operating Company, Public Storage and Computershare Trust Company, N.A. Filed as Exhibit 4.2 to the Company’s Current Report on Form 8-K dated April 11, 2024 and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1393311/000119312524097761/d809023dex42.htm) | | |

| 4.21 | | | [Eighteenth Supplemental Indenture, dated as of April 16, 2024, among Public Storage Operating Company, Public Storage, and Computershare Trust Company, N.A. Filed as Exhibit 4.3 to the Company’s Current Report on Form 8-K dated April 11, 2024 and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1393311/000119312524097761/d809023dex43.htm) | | |

| 10.1 | | | [Amended and Restated Agreement of Limited Partnership of Public Storage OP, L.P., dated as of February 14, 2024. Filed as Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2024 and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1393311/000139331124000109/psa-33124xex101.htm) | | |

| 10.6 | | | [Note Purchase Agreement, dated as of April 11, 2024, by and among Public Storage Operating Company and the Purchasers party thereto. Filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K dated April 11, 2024 and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1393311/000119312524097761/d809023dex101.htm) | | |

| 10.30* | | | [Form of Time-Based Public Storage OP, L.P. LTIP Unit Agreement. Filed as Exhibit 10.3 to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2024 and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1393311/000139331124000109/psa-33124xex103.htm) | | |

| 10.31* | | | [Form of Performance-Based Public Storage OP, L.P. LTIP Unit Agreement. Filed as Exhibit 10.4 to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2024 and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1393311/000139331124000109/psa-33124xex104.htm) | | |

| 10.32* | | | [Form of Time-Based Public Storage OP, L.P. AO LTIP Unit Agreement. Filed as Exhibit 10.5 to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2024 and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1393311/000139331124000109/psa-33124xex105.htm) | | |

| 10.33* | | | [Form of Performance-Based Public Storage OP, L.P. AO LTIP Unit Agreement. Filed as Exhibit 10.6 to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2024 and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1393311/000139331124000109/psa-33124xex106.htm) | | |

| 10.34* | | | [Form of Time-Based Public Storage OP, L.P. AO LTIP Unit Agreement (Trustees). Filed as Exhibit 10.2 to the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2024 and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1393311/000139331124000167/psa-63024xex10_2.htm) | | |

| 10.35* | | | [Form of 2021 Plan Trustee Non-Qualified Stock Option Agreement (2024). Filed as Exhibit 10.3 to the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2024 and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1393311/000139331124000167/psa-63024xex10_3.htm) | | |

| 19.1 | | | [Public Storage Securities Trading Policy. Filed herewith.](https://www.sec.gov/Archives/edgar/data/1393311/000139331125000036/psa-123124xex19_1.htm) | | |

| /s/ Maria R. Hawthorne | | | Trustee | | | February 24, 2025 | | |

| Maria R. Hawthorne | | | | | | | | |

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| Consolidated [Statements of Income](#icb784cf550774f47a8eccc401370492e_19) | | | [F-](#icb784cf550774f47a8eccc401370492e_19)[4](#icb784cf550774f47a8eccc401370492e_19) | | |

| | | | | | |

| Consolidated [Statements of Comprehensive Income](#icb784cf550774f47a8eccc401370492e_22) | | | [F-](#icb784cf550774f47a8eccc401370492e_22)[5](#icb784cf550774f47a8eccc401370492e_22) | | |

| | | | | | |

| Consolidated [Statements of Equity and Redeemable Noncontrolling Interests](#icb784cf550774f47a8eccc401370492e_25) | | | [F-](#icb784cf550774f47a8eccc401370492e_25)[6](#icb784cf550774f47a8eccc401370492e_25) | | |

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| Consolidated [Statements of Cash Flows](#icb784cf550774f47a8eccc401370492e_34) | | | [F-](#icb784cf550774f47a8eccc401370492e_34)[8](#icb784cf550774f47a8eccc401370492e_34) | | |

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| [Notes to](#icb784cf550774f47a8eccc401370492e_37) Consolidated [Financial Statements](#icb784cf550774f47a8eccc401370492e_37) | | | [F-](#icb784cf550774f47a8eccc401370492e_37)[10](#icb784cf550774f47a8eccc401370492e_37) | | |

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| [III – Real Estate and Accumulated Depreciation](#icb784cf550774f47a8eccc401370492e_373) | | | [F-](#icb784cf550774f47a8eccc401370492e_373)[36](#icb784cf550774f47a8eccc401370492e_373) | | |

February 24, 2025

| Cash and equivalents | | | $ | 447,416 | | | | | $ | 370,002 | |

| | | | 28,478,738 | | | | | | 27,465,238 | | |

| | | | 18,052,552 | | | | | | 18,041,264 | | |

| | | | 18,360,653 | | | | | | 18,386,717 | | |

| Investment in unconsolidated real estate entity | | | 382,490 | | | | | | 390,180 | | |

| Allocation to noncontrolling interests | | | | | | | | | | | | | | | (12,386) | | | | | | (11,793) | | | | | | (17,127) | | |

CONSOLIDATED STATEMENTS OF EQUITY AND REDEEMABLE NONCONTROLLING INTERESTS

(Amounts in thousands, except share and per share amounts)

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| /s/ Leslie Stone Heisz | | | Trustee | | | February 20, 2024 | | |

| Leslie Stone Heisz | | | | | | | | |

| /s/ David J. Neithercut | | | Trustee | | | February 20, 2024 | | |

| David J. Neithercut | | | | | | | | |

| Consolidated [Statements of](#i60029acf4dfb4ba182b58e6021c966e4_22) [I](#i60029acf4dfb4ba182b58e6021c966e4_22)[ncome](#i60029acf4dfb4ba182b58e6021c966e4_22) | | | [F-](#i60029acf4dfb4ba182b58e6021c966e4_22)[4](#i60029acf4dfb4ba182b58e6021c966e4_22) | | |

| Consolidated [Statements of](#i60029acf4dfb4ba182b58e6021c966e4_25) [C](#i60029acf4dfb4ba182b58e6021c966e4_25)[omprehensive](#i60029acf4dfb4ba182b58e6021c966e4_25) [I](#i60029acf4dfb4ba182b58e6021c966e4_25)[ncome](#i60029acf4dfb4ba182b58e6021c966e4_25) | | | [F-](#i60029acf4dfb4ba182b58e6021c966e4_25)[5](#i60029acf4dfb4ba182b58e6021c966e4_25) | | |

| Consolidated [Statements of](#i60029acf4dfb4ba182b58e6021c966e4_28) [E](#i60029acf4dfb4ba182b58e6021c966e4_28)[quity and](#i60029acf4dfb4ba182b58e6021c966e4_28) [R](#i60029acf4dfb4ba182b58e6021c966e4_28)[edeemable](#i60029acf4dfb4ba182b58e6021c966e4_28) [N](#i60029acf4dfb4ba182b58e6021c966e4_28)[oncontrolling](#i60029acf4dfb4ba182b58e6021c966e4_28) [I](#i60029acf4dfb4ba182b58e6021c966e4_28)[nterests](#i60029acf4dfb4ba182b58e6021c966e4_28) | | | [F-](#i60029acf4dfb4ba182b58e6021c966e4_28)[6](#i60029acf4dfb4ba182b58e6021c966e4_28) | | |

| Consolidated [Statements of](#i60029acf4dfb4ba182b58e6021c966e4_37) [C](#i60029acf4dfb4ba182b58e6021c966e4_37)[ash](#i60029acf4dfb4ba182b58e6021c966e4_37) [F](#i60029acf4dfb4ba182b58e6021c966e4_37)[lows](#i60029acf4dfb4ba182b58e6021c966e4_37) | | | [F-](#i60029acf4dfb4ba182b58e6021c966e4_37)[8](#i60029acf4dfb4ba182b58e6021c966e4_37) | | |

| [Notes to](#i60029acf4dfb4ba182b58e6021c966e4_43) Consolidated [](#i60029acf4dfb4ba182b58e6021c966e4_43)[F](#i60029acf4dfb4ba182b58e6021c966e4_43)[inancial](#i60029acf4dfb4ba182b58e6021c966e4_43) [S](#i60029acf4dfb4ba182b58e6021c966e4_43)[tatements](#i60029acf4dfb4ba182b58e6021c966e4_43) | | | [F-](#i60029acf4dfb4ba182b58e6021c966e4_43)[10](#i60029acf4dfb4ba182b58e6021c966e4_43) | | |

| [III – Real](#i60029acf4dfb4ba182b58e6021c966e4_352) [E](#i60029acf4dfb4ba182b58e6021c966e4_352)[state and](#i60029acf4dfb4ba182b58e6021c966e4_352) [A](#i60029acf4dfb4ba182b58e6021c966e4_352)[ccumulated](#i60029acf4dfb4ba182b58e6021c966e4_352) [D](#i60029acf4dfb4ba182b58e6021c966e4_352)[epreciation](#i60029acf4dfb4ba182b58e6021c966e4_352) | | | [F-](#i60029acf4dfb4ba182b58e6021c966e4_352)[33](#i60029acf4dfb4ba182b58e6021c966e4_352) | | |

February 20, 2024

| | | | | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| | | | 18,041,264 | | | | | | 15,664,971 | | |

| | | | 18,386,717 | | | | | | 16,037,963 | | |

| Balances at December 31, 2020 | | | $ | 3,792,500 | | | | | $ | 17,458 | | | | | $ | 5,707,101 | | | | | $ | (914,791) | | | | | $ | (43,401) | | | | | $ | 8,558,867 | | | | | $ | 18,032 | | | | | $ | 8,576,899 | | | | | $ | — | |

| Issuance of 47,300 preferred shares (Note 10) | | | 1,182,500 | | | | | | — | | | | | | (35,045) | | | | | | — | | | | | | — | | | | | | 1,147,455 | | | | | | — | | | | | | 1,147,455 | | | | | | — | | |

| Redemption of 35,000 preferred shares (Note 10) | | | (875,000) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (875,000) | | | | | | — | | | | | | (875,000) | | | | | | — | | |

| Share-based compensation expense, net of cash paid in lieu of common shares (Note 12) | | | — | | | | | | — | | | | | | 54,492 | | | | | | — | | | | | | — | | | | | | 54,492 | | | | | | — | | | | | | 54,492 | | | | | | — | | |

| Net income | | | — | | | | | | — | | | | | | — | | | | | | 1,959,639 | | | | | | — | | | | | | 1,959,639 | | | | | | — | | | | | | 1,959,639 | | | | | | — | | |

| Preferred shareholders (Note 10) | | | — | | | | | | — | | | | | | — | | | | | | (194,703) | | | | | | — | | | | | | (194,703) | | | | | | — | | | | | | (194,703) | | | | | | — | | |

| Redemption of preferred shares | | | — | | | | | | — | | | | | | (1,175,000) | | |

| Net cash flows (used in) from operating, investing, and financing activities | | | (404,782) | | | | | | 43,867 | | | | | | 478,185 | | |

| Net effect of foreign exchange impact on cash and equivalents, including restricted cash | | | — | | | | | | — | | | | | | 505 | | |

| Cash and equivalents | | | $ | 775,253 | | | | | $ | 734,599 | | | | | $ | 257,560 | |

| | | | $ | 805,157 | | | | | $ | 761,290 | | | | | $ | 282,600 | |

This structure is commonly referred to as an umbrella partnership REIT, or UPREIT.

The reorganization was accounted for as a transaction between entities under common control and there was no change in the Company’s total assets, liabilities or results of operations.

As of December 31, 2023, the Company owned all of the limited partnership interests of PSA OP.

In addition, we managed 210 facilities for third parties at December 31, 2023.

We revised our prior period financial statements to correct the presentation of income tax expense in the Consolidated Statements of Income.

Income tax expense in the amounts of $14.3 million and $12.4 million for 2022 and 2021, respectively, previously included in general and administrative expense, has been reclassified and presented separately in the Consolidated Statements of Income to conform to the 2023 presentation.

This immaterial correction had no impact on our net income.

The correction also had no impact on our balance sheet, statements of comprehensive income, statements of equity, or cash flows as of and for the years ended December 31, 2022 and 2021.

Certain amounts previously reported in our 2022 and 2021 Consolidated Statements of Income have been reclassified to conform to the 2023 presentation, with respect to the separate presentation of real estate acquisition and development expense in the amounts of $28.7 million and $12.9 million for 2022 and 2021, respectively, previously included in general and administrative expense.

The reclassifications had no impact on our net income.

Certain amounts previously reported in our 2022 and 2021 Statements of Cash Flows have been reclassified to conform to the 2023 presentation, with respect to the separate presentation of changes in operating assets and liabilities in the cash flows from operating activities section and major types of capital expenditures in the cash flows from investing activities section.

The reclassifications did not affect the subtotals for cash flows from operating, investing or financing activities.

Restricted cash, which represent amounts used to collateralize our insurance obligations and are restricted from general corporate use, are included in other assets.