filings.toolsItem 15. Exhibits and Financial Statement Schedules
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Item 15. Exhibits and Financial Statement Schedules
a. 1. Financial Statements
The financial statements listed in the accompanying Index to Consolidated Financial Statements and Schedules hereof are filed as part of this report.
2.Financial Statement Schedules
The financial statements schedules listed in the accompanying Index to Consolidated Financial Statements and Schedules are filed as part of this report.
3.Exhibits
See Index to Exhibits contained herein.
b.Exhibits:
See Index to Exhibits contained herein.
c.Financial Statement Schedules
Not applicable.
PUBLIC STORAGE
INDEX TO EXHIBITS (1)
(Items 15(a)(3) and 15(c))
| 97.1 | Policy Relating to Recovery of Erroneously Awarded Compensation. Filed as Exhibit 97.1 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 and incorporated herein by reference. | ||||
| 101 .INS | Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document) | ||||
| 101 .SCH | Inline XBRL Taxonomy Extension Schema. Filed herewith. | ||||
| 101 .CAL | Inline XBRL Taxonomy Extension Calculation Linkbase. Filed herewith. | ||||
| 101 .DEF | Inline XBRL Taxonomy Extension Definition Linkbase. Filed herewith. | ||||
| 101 .LAB | Inline XBRL Taxonomy Extension Label Linkbase. Filed herewith. | ||||
| 101 .PRE | Inline XBRL Taxonomy Extension Presentation Link. Filed herewith. | ||||
| 104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101) | ||||
| _ (1) | SEC File No. 001-33519 unless otherwise indicated. | ||||
| * | Denotes management compensatory plan agreement or arrangement. |
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| PUBLIC STORAGE | ||||||||
| Date: February 12, 2026 | By: | /s/ Joseph D. Russell, Jr. | ||||||
| Joseph D. Russell, Jr., Chief Executive Officer, President and Trustee |
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
| Signature | Title | Date | ||||||
| /s/ Joseph D. Russell, Jr. | Chief Executive Officer, President and Trustee (principal executive officer) | February 12, 2026 | ||||||
| Joseph D. Russell, Jr. | ||||||||
| /s/ H. Thomas Boyle | Chief Financial and Investment Officer (principal financial officer) | February 12, 2026 | ||||||
| H. Thomas Boyle | ||||||||
| /s/ Ronald L. Havner, Jr. | Chairman of the Board | February 12, 2026 | ||||||
| Ronald L. Havner, Jr. | ||||||||
| /s/ Tamara Hughes Gustavson | Trustee | February 12, 2026 | ||||||
| Tamara Hughes Gustavson | ||||||||
| /s/ Maria R. Hawthorne | Trustee | February 12, 2026 | ||||||
| Maria R. Hawthorne | ||||||||
| /s/ Shankh S. Mitra | Trustee | February 12, 2026 | ||||||
| Shankh S. Mitra | ||||||||
| /s/ Rebecca Owen | Trustee | February 12, 2026 | ||||||
| Rebecca Owen | ||||||||
| /s/ Luke Petherbridge | Trustee | February 12, 2026 | ||||||
| Luke Petherbridge | ||||||||
| /s/ Kristy M. Pipes | Trustee | February 12, 2026 | ||||||
| Kristy M. Pipes | ||||||||
| /s/ Avedick B. Poladian | Trustee | February 12, 2026 | ||||||
| Avedick B. Poladian | ||||||||
| /s/ John Reyes | Trustee | February 12, 2026 | ||||||
| John Reyes |
| Signature | Title | Date | ||||||
| /s/ Tariq M. Shaukat | Trustee | February 12, 2026 | ||||||
| Tariq M. Shaukat | ||||||||
| /s/ Ronald P. Spogli | Trustee | February 12, 2026 | ||||||
| Ronald P. Spogli | ||||||||
| /s/ Paul S. Williams | Trustee | February 12, 2026 | ||||||
| Paul S. Williams |
PUBLIC STORAGE
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS
AND SCHEDULES
(Item 15 (a))
| Page References | |||||
| Report of Independent Registered Public Accounting Firm Auditor name: Ernst & Young LLP; Firm ID: (42); Auditor location: Los Angeles, California | F-1 | ||||
| Consolidated Balance Sheets as of December 31, 2025 and 2024 | F-3 | ||||
| For the years ended December 31, 2025, 2024, and 2023: | |||||
| Consolidated Statements of Income | F-4 | ||||
| Consolidated Statements of Comprehensive Income | F-5 | ||||
| Consolidated Statements of Equity | F-6 | ||||
| Consolidated Statements of Cash Flows | F-8 | ||||
| Notes to Consolidated Financial Statements | F-10 | ||||
| Schedule: | |||||
| III – Real Estate and Accumulated Depreciation | F-37 |
All other schedules have been omitted since the required information is not present or not present in amounts sufficient to require submission of the schedule, or because the information required is included in the consolidated financial statements or notes thereto.
Report of Independent Registered Public Accounting Firm
To the Shareholders and the Board of Trustees of Public Storage
Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheets of Public Storage (the Company) as of December 31, 2025 and 2024, the related consolidated statements of income, comprehensive income, equity and cash flows for each of the three years in the period ended December 31, 2025 , and the related notes and financial statement schedule listed in the Index at Item 15(a) (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with U.S. generally accepted accounting principles.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control–Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated February 12, 2026 expressed an unqualified opinion thereon.
Basis for Opinion
These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
Critical Audit Matter
The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
F-1
| Purchase Price Allocation | ||||||||
| Description of the Matter | For the year ended December 31, 2025, the Company completed the acquisition of 87 self-storage facilities for a total purchase price of $945.6 million. As further discussed in Notes 2 and 3 of the consolidated financial statements, the transactions were accounted for as asset acquisitions, and the purchase price was allocated based on a relative fair value of assets acquired and liabilities assumed, which consisted principally of land and buildings. Auditing the accounting for the Company’s 2025 acquisitions of self-storage facilities was subjective because the Company must exercise a high level of management judgment in determining the estimated fair value of land and buildings. The estimated fair value of land is based upon observable transactions involving comparable land in similar locations, as adjusted for location quality, parcel size and date of sale associated with the acquired facilities. Determining the fair value of acquired land was difficult due to the judgment utilized by management in making adjustments to the observable transaction data used in the estimate, particularly when there is a lack of recent comparable land market data. The estimated fair value of the acquired buildings was based upon the income approach, which included estimating the fair value of hypothetical vacant acquired buildings and adjusting for the estimated fair value of land. Determining the fair value of the acquired buildings was challenging due to the judgment utilized by management in determining the assumptions utilized in the income approach, including future stabilized operating cash flows and capitalization rate. | |||||||
| How We Addressed the Matter in Our Audit | We obtained an understanding, evaluated the design, and tested the operating effectiveness of controls over management’s accounting for acquired self-storage facilities, including controls over the review of assumptions underlying the purchase price allocation and accuracy of the underlying data used. For example, we tested controls over the determination of the estimated fair values of the land and buildings, including the controls over the review of the valuation models and the significant assumptions used to develop such estimates. For the 2025 acquisitions of self-storage facilities described above, our procedures included, but were not limited to, reading the purchase and sale agreements and other closing documents, evaluating whether the Company had appropriately determined the transaction was an asset acquisition or business combination and performing a sensitivity analysis to evaluate the impact on the Company’s financial statements resulting from changes in allocated land and building values. For certain of these asset acquisitions, we also evaluated the methods and significant assumptions used by the Company and tested the completeness and accuracy of the underlying data supporting the significant assumptions and estimates. Additionally, for certain of these asset acquisitions, we involved our valuation specialists to assist in the assessment of the methodology utilized by the Company and to perform corroborative analyses to assess whether the significant assumptions used in the valuation and the estimated fair values were supported by observable market data. |
/s/ Ernst & Young LLP
We have served as the Company's auditor since 1980.
Los Angeles, California
February 12, 2026
F-2
PUBLIC STORAGE
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except share data)
| December 31, 2025 | December 31, 2024 | ||||||||||
| ASSETS | |||||||||||
| Cash and equivalents | $ | 318,095 | $ | 447,416 | |||||||
| Real estate facilities, at cost: | |||||||||||
| Land | 5,952,072 | 5,711,685 | |||||||||
| Buildings | 24,126,185 | 22,767,053 | |||||||||
| Total land and buildings, at cost | 30,078,257 | 28,478,738 | |||||||||
| Accumulated depreciation | (11,468,054) | (10,426,186) | |||||||||
| Total land and buildings, net | 18,610,203 | 18,052,552 | |||||||||
| Construction in process | 194,355 | 308,101 | |||||||||
| Total real estate facilities, net | 18,804,558 | 18,360,653 | |||||||||
| Investment in unconsolidated real estate entity | 388,586 | 382,490 | |||||||||
| Goodwill and other intangible assets, net | 251,613 | 282,187 | |||||||||
| Notes receivable | 142,108 | 9,976 | |||||||||
| Other assets | 303,644 | 272,212 | |||||||||
| Total assets | $ | 20,208,604 | $ | 19,754,934 | |||||||
| LIABILITIES AND EQUITY | |||||||||||
| Notes payable | $ | 10,253,881 | $ | 9,353,034 | |||||||
| Accrued and other liabilities | 612,889 | 588,248 | |||||||||
| Total liabilities | 10,866,770 | 9,941,282 | |||||||||
| Commitments and contingencies (Note 16) | |||||||||||
| Equity: | |||||||||||
| Public Storage shareholders’ equity: | |||||||||||
| Preferred Shares, $0.01 par value, 100,000,000 shares authorized, 174,000 shares issued (in series) and outstanding, (174,000 shares at December 31, 2024) at liquidation preference | 4,350,000 | 4,350,000 | |||||||||
| Common Shares, $0.10 par value, 650,000,000 shares authorized, 175,500,243 shares issued (175,408,393 shares at December 31, 2024) | 17,550 | 17,541 | |||||||||
| Paid-in capital | 6,147,650 | 6,116,113 | |||||||||
| Accumulated deficit | (1,219,273) | (699,083) | |||||||||
| Accumulated other comprehensive loss | (47,799) | (71,965) | |||||||||
| Total Public Storage shareholders’ equity | 9,248,128 | 9,712,606 | |||||||||
| Noncontrolling interests | 93,706 | 101,046 | |||||||||
| Total equity | 9,341,834 | 9,813,652 | |||||||||
| Total liabilities and equity | $ | 20,208,604 | $ | 19,754,934 |
See accompanying notes.
F-3
PUBLIC STORAGE
CONSOLIDATED STATEMENTS OF INCOME
(Amounts in thousands, except per share amounts)
| Year Ended December 31, | |||||||||||||||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||||||||||||||
| Revenues: | |||||||||||||||||||||||||||||
| Self-storage facilities | $ | 4,489,413 | $ | 4,395,993 | $ | 4,259,613 | |||||||||||||||||||||||
| Ancillary operations | 334,700 | 299,623 | 258,077 | ||||||||||||||||||||||||||
| Total revenues | 4,824,113 | 4,695,616 | 4,517,690 | ||||||||||||||||||||||||||
| Expenses: | |||||||||||||||||||||||||||||
| Self-storage cost of operations | 1,177,038 | 1,136,720 | 1,061,950 | ||||||||||||||||||||||||||
| Ancillary cost of operations | 132,937 | 121,281 | 85,996 | ||||||||||||||||||||||||||
| Depreciation and amortization | 1,151,840 | 1,129,766 | 970,056 | ||||||||||||||||||||||||||
| Real estate acquisition and development expense | 19,550 | 15,506 | 26,451 | ||||||||||||||||||||||||||
| General and administrative | 106,682 | 106,677 | 80,632 | ||||||||||||||||||||||||||
| Interest expense | 304,495 | 287,401 | 201,132 | ||||||||||||||||||||||||||
| Total expenses | 2,892,542 | 2,797,351 | 2,426,217 | ||||||||||||||||||||||||||
| Other increases (decreases) to net income: | |||||||||||||||||||||||||||||
| Interest and other income | 63,099 | 67,212 | 85,590 | ||||||||||||||||||||||||||
| Equity in earnings (loss) of unconsolidated real estate entity | 9,604 | 19,821 | 27,897 | ||||||||||||||||||||||||||
| Foreign currency exchange gain (loss) | (215,583) | 102,244 | (51,197) | ||||||||||||||||||||||||||
| Gain (Loss) on sale of real estate | 1,113 | 1,537 | 17,178 | ||||||||||||||||||||||||||
| Income before income taxes | 1,789,804 | 2,089,079 | 2,170,941 | ||||||||||||||||||||||||||
| Income tax (provision) benefit | 7,228 | (4,669) | (10,821) | ||||||||||||||||||||||||||
| Net income | 1,797,032 | 2,084,410 | 2,160,120 | ||||||||||||||||||||||||||
| Allocation to noncontrolling interests | (12,684) | (12,399) | (11,793) | ||||||||||||||||||||||||||
| Net income allocable to Public Storage shareholders | 1,784,348 | 2,072,011 | 2,148,327 | ||||||||||||||||||||||||||
| Allocation of net income to: | |||||||||||||||||||||||||||||
| Preferred shareholders | (194,703) | (194,703) | (194,703) | ||||||||||||||||||||||||||
| Restricted share units and unvested LTIP units | (4,060) | (4,623) | (4,883) | ||||||||||||||||||||||||||
| Net income allocable to common shareholders | $ | 1,585,585 | $ | 1,872,685 | $ | 1,948,741 | |||||||||||||||||||||||
| Net income per common share: | |||||||||||||||||||||||||||||
| Basic | $ | 9.04 | $ | 10.68 | $ | 11.11 | |||||||||||||||||||||||
| Diluted | $ | 9.01 | $ | 10.64 | $ | 11.06 | |||||||||||||||||||||||
| Basic weighted average common shares outstanding | 175,447 | 175,351 | 175,472 | ||||||||||||||||||||||||||
| Diluted weighted average common shares outstanding | 175,902 | 176,038 | 176,143 | ||||||||||||||||||||||||||
See accompanying notes.
F-4
PUBLIC STORAGE
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Amounts in thousands)
| Year Ended December 31, | |||||||||||||||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||||||||||||||
| Net income | $ | 1,797,032 | $ | 2,084,410 | $ | 2,160,120 | |||||||||||||||||||||||
| Foreign currency translation gain (loss) on investment in Shurgard | 24,214 | (4,739) | 13,078 | ||||||||||||||||||||||||||
| Total comprehensive income | 1,821,246 | 2,079,671 | 2,173,198 | ||||||||||||||||||||||||||
| Allocation to noncontrolling interests | (12,732) | (12,386) | (11,793) | ||||||||||||||||||||||||||
| Comprehensive income allocable to Public Storage shareholders | $ | 1,808,514 | $ | 2,067,285 | $ | 2,161,405 |
See accompanying notes.
F-5
PUBLIC STORAGE
CONSOLIDATED STATEMENTS OF EQUITY
(Amounts in thousands, except share and per share amounts)
| Cumulative Preferred Shares | Common Shares | Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Total Public Storage Shareholders' Equity | Noncontrolling Interests | Total Equity | ||||||||||||||||||||||||||||||||||||||||
| Balances at December 31, 2022 | $ | 4,350,000 | $ | 17,527 | $ | 5,896,423 | $ | (110,231) | $ | (80,317) | $ | 10,073,402 | $ | 93,399 | $ | 10,166,801 | |||||||||||||||||||||||||||||||
| Issuance of common shares in connection with share-based compensation (405,059 shares) (Note 12) | — | 40 | 53,346 | — | — | 53,386 | — | 53,386 | |||||||||||||||||||||||||||||||||||||||
| Taxes withheld upon net share settlement of restricted share units (Note 12) | — | — | (13,950) | — | — | (13,950) | — | (13,950) | |||||||||||||||||||||||||||||||||||||||
| Share-based compensation expense (Note 12) | — | — | 44,941 | — | — | 44,941 | — | 44,941 | |||||||||||||||||||||||||||||||||||||||
| Contributions by noncontrolling interests | — | — | — | — | — | — | 3,203 | 3,203 | |||||||||||||||||||||||||||||||||||||||
| Net income | — | — | — | 2,160,120 | — | 2,160,120 | — | 2,160,120 | |||||||||||||||||||||||||||||||||||||||
| Net income allocated to noncontrolling interests | — | — | — | (11,793) | — | (11,793) | 11,793 | — | |||||||||||||||||||||||||||||||||||||||
| Distributions to: | |||||||||||||||||||||||||||||||||||||||||||||||
| Preferred shareholders (Note 10) | — | — | — | (194,703) | — | (194,703) | — | (194,703) | |||||||||||||||||||||||||||||||||||||||
| Noncontrolling interests | — | — | — | — | — | — | (14,627) | (14,627) | |||||||||||||||||||||||||||||||||||||||
| Common shareholders and restricted share unitholders ($12.00 per share/unit) (Note 10) | — | — | — | (2,111,303) | — | (2,111,303) | — | (2,111,303) | |||||||||||||||||||||||||||||||||||||||
| Other comprehensive income (loss) | — | — | — | — | 13,078 | 13,078 | — | 13,078 | |||||||||||||||||||||||||||||||||||||||
| Balance at December 31, 2023 | $ | 4,350,000 | $ | 17,567 | $ | 5,980,760 | $ | (267,910) | $ | (67,239) | $ | 10,013,178 | $ | 93,768 | $ | 10,106,946 | |||||||||||||||||||||||||||||||
| Issuance of common shares (184,390 shares) (Note 10) | — | 18 | 60,303 | — | — | 60,321 | — | 60,321 | |||||||||||||||||||||||||||||||||||||||
| Issuance of common shares in connection with share-based compensation (280,141 shares) (Note 12) | — | 29 | 47,382 | — | — | 47,411 | — | 47,411 | |||||||||||||||||||||||||||||||||||||||
| Taxes withheld upon net share settlement of restricted share units (Note 12) | — | — | (12,667) | — | — | (12,667) | — | (12,667) | |||||||||||||||||||||||||||||||||||||||
| Share-based compensation expense (Note 12) | — | — | 49,317 | — | — | 49,317 | — | 49,317 | |||||||||||||||||||||||||||||||||||||||
| Repurchase of common shares (726,865 shares) (Note 10) | — | (73) | — | (199,927) | — | (200,000) | — | (200,000) | |||||||||||||||||||||||||||||||||||||||
| Acquisition of noncontrolling interests | — | — | (1,602) | — | — | (1,602) | 11 | (1,591) | |||||||||||||||||||||||||||||||||||||||
| Contributions by noncontrolling interests | — | — | — | — | — | — | 2,938 | 2,938 | |||||||||||||||||||||||||||||||||||||||
| Net income | — | — | — | 2,084,410 | — | 2,084,410 | — | 2,084,410 | |||||||||||||||||||||||||||||||||||||||
| Net income allocated to noncontrolling interests | — | — | — | (12,399) | — | (12,399) | 12,399 | — | |||||||||||||||||||||||||||||||||||||||
| Reallocation of equity | — | — | (7,380) | — | — | (7,380) | 7,380 | — | |||||||||||||||||||||||||||||||||||||||
| Distributions to: | |||||||||||||||||||||||||||||||||||||||||||||||
| Preferred shareholders (Note 10) | — | — | — | (194,703) | — | (194,703) | — | (194,703) | |||||||||||||||||||||||||||||||||||||||
| Noncontrolling interests | — | — | — | — | — | — | (15,437) | (15,437) |
See accompanying notes.
F-6
| Cumulative Preferred Shares | Common Shares | Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Total Public Storage Shareholders' Equity | Noncontrolling Interests | Total Equity | ||||||||||||||||||||||||||||||||||||||||
| Common shareholders, restricted share unitholders and unvested LTIP unitholders ($12.00 per share/unit) (Note 10) | — | — | — | (2,108,554) | — | (2,108,554) | — | (2,108,554) | |||||||||||||||||||||||||||||||||||||||
| Other comprehensive income (loss) | — | — | — | — | (4,726) | (4,726) | (13) | (4,739) | |||||||||||||||||||||||||||||||||||||||
| Balances at December 31, 2024 | $ | 4,350,000 | $ | 17,541 | $ | 6,116,113 | $ | (699,083) | $ | (71,965) | $ | 9,712,606 | $ | 101,046 | $ | 9,813,652 | |||||||||||||||||||||||||||||||
| Issuance of common shares in connection with share-based compensation (91,850 shares) (Note 12) | — | 9 | 9,535 | — | — | 9,544 | — | 9,544 | |||||||||||||||||||||||||||||||||||||||
| Taxes withheld upon net share settlement of restricted share units (Note 12) | — | — | (8,646) | — | — | (8,646) | — | (8,646) | |||||||||||||||||||||||||||||||||||||||
| Share-based compensation cost (Note 12) | — | — | 43,545 | — | — | 43,545 | — | 43,545 | |||||||||||||||||||||||||||||||||||||||
| Acquisition of noncontrolling interests | — | — | (8,953) | — | — | (8,953) | (911) | (9,864) | |||||||||||||||||||||||||||||||||||||||
| Contributions by noncontrolling interests | — | — | — | — | — | — | 4,588 | 4,588 | |||||||||||||||||||||||||||||||||||||||
| Net income | — | — | — | 1,797,032 | — | 1,797,032 | — | 1,797,032 | |||||||||||||||||||||||||||||||||||||||
| Net income allocated to noncontrolling interests | — | — | — | (12,684) | — | (12,684) | 12,684 | — | |||||||||||||||||||||||||||||||||||||||
| Reallocation of equity | — | — | (3,944) | — | — | (3,944) | 3,944 | — | |||||||||||||||||||||||||||||||||||||||
| Distributions to: | |||||||||||||||||||||||||||||||||||||||||||||||
| Preferred shareholders (Note 10) | — | — | — | (194,703) | — | (194,703) | — | (194,703) | |||||||||||||||||||||||||||||||||||||||
| Noncontrolling interests | — | — | — | — | — | — | (27,693) | (27,693) | |||||||||||||||||||||||||||||||||||||||
| Common shareholders, restricted share unitholders and unvested LTIP unitholders ($12.00 per share/unit) (Note 10) | — | — | — | (2,109,835) | — | (2,109,835) | — | (2,109,835) | |||||||||||||||||||||||||||||||||||||||
| Other comprehensive income (loss) | — | — | — | — | 24,166 | 24,166 | 48 | 24,214 | |||||||||||||||||||||||||||||||||||||||
| Balances at December 31, 2025 | $ | 4,350,000 | $ | 17,550 | $ | 6,147,650 | $ | (1,219,273) | $ | (47,799) | $ | 9,248,128 | $ | 93,706 | $ | 9,341,834 |
See accompanying notes.
F-7
PUBLIC STORAGE
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands)
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Cash flows from operating activities: | |||||||||||||||||
| Net income | $ | 1,797,032 | $ | 2,084,410 | $ | 2,160,120 | |||||||||||
| Adjustments to reconcile net income to net cash flows from operating activities: | |||||||||||||||||
| Gain on sale of real estate | (1,113) | (1,537) | (17,178) | ||||||||||||||
| Depreciation and amortization | 1,151,840 | 1,129,766 | 970,056 | ||||||||||||||
| Equity in earnings of unconsolidated real estate entity | (9,604) | (19,821) | (27,897) | ||||||||||||||
| Distributions from cumulative equity in earnings of unconsolidated real estate entity | 1,823 | 11,039 | 29,333 | ||||||||||||||
| Unrealized foreign currency exchange (gain) loss | 185,169 | (101,974) | 51,239 | ||||||||||||||
| Share-based compensation expense | 39,902 | 44,747 | 41,566 | ||||||||||||||
| Impairment of real estate investments | 4,348 | — | — | ||||||||||||||
| Amortization of debt issuance costs | 10,349 | 9,728 | 7,974 | ||||||||||||||
| Other non-cash adjustments | 4,902 | 1,682 | 12,534 | ||||||||||||||
| Changes in operating assets and liabilities, excluding the impact of acquisitions: | |||||||||||||||||
| Other assets | (24,639) | (44,968) | (16,365) | ||||||||||||||
| Accrued and other liabilities | 26,440 | 15,183 | 35,266 | ||||||||||||||
| Net cash flows from operating activities | 3,186,449 | 3,128,255 | 3,246,648 | ||||||||||||||
| Cash flows from investing activities: | |||||||||||||||||
| Capital expenditures to maintain real estate facilities | (218,464) | (239,655) | (236,572) | ||||||||||||||
| Capital expenditures for property enhancements | — | (126,757) | (159,939) | ||||||||||||||
| Capital expenditures for energy efficiencies (LED lighting, solar) | (70,914) | (53,612) | (64,626) | ||||||||||||||
| Development and expansion of real estate facilities | (310,737) | (326,854) | (364,445) | ||||||||||||||
| Acquisition of real estate facilities and intangible assets | (945,585) | (267,473) | (473,176) | ||||||||||||||
| Acquisition of BREIT Simply Storage LLC, net of cash acquired | — | — | (2,178,151) | ||||||||||||||
| Issuance of notes receivable | (131,227) | (9,960) | — | ||||||||||||||
| Distributions in excess of cumulative equity in earnings from unconsolidated real estate entity | — | 13,285 | 10,975 | ||||||||||||||
| Contributions to unconsolidated real estate entity | — | — | (112,554) | ||||||||||||||
| Acquisition of non-operating real estate assets | (16,313) | — | — | ||||||||||||||
| Proceeds from sale of real estate investments | 8,151 | 8,388 | 39,986 | ||||||||||||||
| Net cash flows used in investing activities | (1,685,089) | (1,002,638) | (3,538,502) | ||||||||||||||
| Cash flows from financing activities: | |||||||||||||||||
| Issuance costs on amendment of credit facility | — | — | (8,377) | ||||||||||||||
| Repayments of notes payable | (651,517) | (808,505) | (8,259) | ||||||||||||||
| Issuance of notes payable, net of issuance costs | 1,356,420 | 1,151,022 | 2,181,273 | ||||||||||||||
| Issuance of common shares | — | 60,321 | — | ||||||||||||||
| Issuance of common shares in connection with share-based compensation | 9,412 | 47,278 | 53,131 | ||||||||||||||
| Taxes paid upon net share settlement of restricted share units | (8,646) | (12,667) | (13,950) | ||||||||||||||
| Repurchase of common shares | — | (200,000) | — | ||||||||||||||
| Acquisition of noncontrolling interests | (9,864) | (1,591) | — | ||||||||||||||
| Contributions by noncontrolling interests | 4,588 | 2,938 | 3,203 | ||||||||||||||
| Distributions paid to preferred shareholders, common shareholders, restricted share unitholders and unvested LTIP unitholders | (2,303,381) | (2,301,935) | (2,305,322) | ||||||||||||||
| Distributions paid to noncontrolling interests | (27,693) | (15,437) | (14,627) | ||||||||||||||
| Net cash flows used in financing activities | (1,630,681) | (2,078,576) | (112,928) | ||||||||||||||
| Net (decrease) increase in cash and equivalents, including restricted cash | $ | (129,321) | $ | 47,041 | $ | (404,782) |
See accompanying notes.
F-8
PUBLIC STORAGE
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands)
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Cash and equivalents, including restricted cash at beginning of the period: | |||||||||||||||||
| Cash and equivalents | $ | 447,416 | $ | 370,002 | $ | 775,253 | |||||||||||
| Restricted cash included in other assets | — | 30,373 | 29,904 | ||||||||||||||
| $ | 447,416 | $ | 400,375 | $ | 805,157 | ||||||||||||
| Cash and equivalents, including restricted cash at end of the period: | |||||||||||||||||
| Cash and equivalents | $ | 318,095 | $ | 447,416 | $ | 370,002 | |||||||||||
| Restricted cash included in other assets | — | — | 30,373 | ||||||||||||||
| $ | 318,095 | $ | 447,416 | $ | 400,375 | ||||||||||||
| Supplemental schedule of non-cash investing and financing activities: | |||||||||||||||||
| Costs incurred during the period remaining unpaid at period end for: | |||||||||||||||||
| Capital expenditures to maintain real estate facilities | $ | (8,764) | $ | (7,324) | $ | (10,798) | |||||||||||
| Capital expenditures for property enhancements | — | (1,087) | (3,046) | ||||||||||||||
| Capital expenditures for energy efficiencies (LED lighting, solar) | (886) | (1,179) | (386) | ||||||||||||||
| Construction or expansion of real estate facilities | (19,111) | (47,159) | (68,099) | ||||||||||||||
| Supplemental cash flow information: | |||||||||||||||||
| Cash paid for interest, net of amounts capitalized | $ | (273,007) | $ | (269,498) | $ | (146,213) | |||||||||||
| Cash paid for income taxes, net of refunds | (6,350) | (6,877) | (11,056) | ||||||||||||||
| Cash received for sale of solar tax credits | 15,847 | — | — |
See accompanying notes.
F-9
PUBLIC STORAGE
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2025
- Description of the Business
Public Storage is a Maryland real estate investment trust (“REIT”) engaged in the ownership and operation of self-storage facilities that offer storage spaces for lease, generally on a month-to-month basis, for personal and business use, and other related operations such as tenant reinsurance, merchandise sales, third party management, and bridge lending to third-party self-storage owners, as well as the acquisition and development of additional self-storage space.
We are structured as an umbrella partnership REIT, or UPREIT, under which substantially all of our business is conducted through Public Storage OP, L.P. (“PSA OP”), an operating partnership, and its subsidiaries, including Public Storage Operating Company (“PSOC”). The primary assets of the parent entity, Public Storage, are general partner and limited partner interests in PSA OP, which holds all of the Company’s assets through its ownership of all of the equity interests in PSOC. As a limited partnership, PSA OP is a variable interest entity and is consolidated by Public Storage as its primary beneficiary. As of December 31, 2025, Public Storage owned all of the general partner interests and approximately 99.80% of the limited partnership interests of PSA OP, with the remaining 0.20% of limited partnership interests owned by certain trustees and officers of the Company.
Unless stated otherwise or the context otherwise requires, references to “Public Storage” mean the parent entity, Public Storage, and references to “the Company,” “we,” “us,” and “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, 2025, we owned interests in 3,171 self-storage facilities (with approximately 229.4 million net rentable square feet) located in 40 states in the United States (“U.S.”) operating under the Public Storage® name, and 1.0 million net rentable square feet of commercial and retail space. In addition, we managed 362 facilities (with approximately 28.2 million net rentable square feet) for third parties at December 31, 2025.
At December 31, 2025, we owned an approximate 35% common equity interest in Shurgard Self Storage Limited (“Shurgard”), a public company traded on the Euronext Brussels under the “SHUR” symbol, which owned 332 self-storage facilities (with approximately 18 million net rentable square feet) located in seven Western European countries, all operating under the Shurgard® name. In recording our share of equity in earnings or loss from Shurgard, we adjust Shurgard’s operating results, which are reported under International Financial Reporting Standards (“IFRS”), to conform with U.S. generally accepted accounting principles (“GAAP”).
- Basis of Presentation and Summary of Significant Accounting Policies
Basis of Presentation
We have prepared the accompanying consolidated financial statements in accordance with U.S. GAAP as set forth in the Accounting Standards Codification of the Financial Accounting Standards Board, and in conformity with the rules and regulations of the Securities and Exchange Commission (“SEC”).
Disclosures of the number and square footage of facilities, as well as the number and coverage of tenant reinsurance policies (Note 16) are unaudited and outside the scope of our independent registered public accounting firm’s audit of our financial statements in accordance with the standards of the Public Company Accounting Oversight Board (U.S.).
F-10
PUBLIC STORAGE
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2025
Summary of Significant Accounting Policies
Consolidation and Equity Method of Accounting
We consider entities to be Variable Interest Entities (“VIEs”) when they have insufficient equity to finance their activities without additional subordinated financial support provided by other parties, or the equity holders as a group do not have a controlling financial interest. In addition, we have general partner interests in limited partnerships along with third-party investors to develop, construct or operate self-storage facilities. As the general partner, we consider the limited partnerships to be VIEs if the limited partners lack both substantive participating rights and substantive kick-out rights. We consolidate VIEs when we have (i) the power to direct the activities most significantly impacting economic performance, and (ii) either the obligation to absorb losses or the right to receive benefits from the VIE. PSA OP met the definition of a VIE and is consolidated by the Company as the primary beneficiary of PSA OP. All of the assets and liabilities of the Company are held by PSA OP. The total assets, primarily real estate assets, and the total liabilities of our other consolidated VIEs are not material as of December 31, 2025. We consolidate all other entities when we control them through voting shares or contractual rights. We refer to the entities we consolidate, for the period in which the reference applies, collectively as the “Subsidiaries,” and we eliminate intercompany transactions and balances.
We account for our investment in an entity that we do not consolidate but over which we have significant influence using the equity method of accounting. We refer to this entity, for the periods in which the reference applies, as the “Unconsolidated Real Estate Entity,” and we eliminate intra-entity profits and losses and amortize any differences between the cost of our investment and the underlying equity in net assets against equity in earnings as if the Unconsolidated Real Estate Entity was a consolidated subsidiary.
Equity in earnings of unconsolidated real estate entity presented on our income statements represents our pro-rata share of the earnings of the Unconsolidated Real Estate Entity. The dividends we receive from the Unconsolidated Real Estate Entity are reflected on our consolidated statements of cash flows as “distributions from cumulative equity in earnings of unconsolidated real estate entity” to the extent of our cumulative equity in earnings, with any excess classified as “distributions in excess of cumulative equity in earnings from unconsolidated real estate entity.”
Use of Estimates
The preparation of consolidated financial statements and accompanying notes in conformity with GAAP requires us to make estimates and assumptions that affect the amounts reported. Actual results could differ from those estimates and assumptions.
Cash Equivalents
Cash equivalents represent highly liquid financial instruments that mature within three months of acquisition such as money market funds with a rating of at least AAA by Standard & Poor’s, commercial paper that is rated A1 by Standard & Poor’s or deposits with highly rated commercial banks.
Fair Value
As used herein, the term “fair value” is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. In the absence of active markets for identical assets or liabilities, such measurements involve developing assumptions based on market observable data and, in the absence of such data, internal information that is consistent with what market participants would use in a hypothetical transaction that occurs at the balance sheet date.
Assets and liabilities recorded at fair value are measured and classified in accordance with a three-tier fair value hierarchy based on the observability of the inputs available in the market used to measure fair value:
Level 1 Quoted prices in active markets for identical assets or liabilities at the measurement date.
F-11
PUBLIC STORAGE
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2025
Level 2 Significant observable inputs other than Level 1, that are observable for the asset or liability, either directly or indirectly through corroboration with observable market data.
Level 3 Unobservable inputs that are supported by little or no market data for the related assets or liabilities.
The categorization of a financial instrument within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement.
Our financial instruments consist of cash and cash equivalents, notes receivable, other assets, other liabilities, and notes payable and related interest rate swaps. Cash equivalents, notes receivable, other assets and other liabilities are stated at book value, which approximates fair value as of the balance sheet date due to the short time period to maturity or variable interest rates.
We estimate and disclose the fair value of our notes payable and related interest rate swaps using Level 2 inputs by discounting the related future cash flows at a rate based upon quoted interest rates for securities that have similar characteristics such as credit quality and time to maturity.
We use significant judgment to estimate fair values of real estate facilities, goodwill, and other intangible assets for the purposes of purchase price allocation or impairment analysis. In estimating their values, we consider Level 3 inputs such as market prices of land, market capitalization rates, expected returns, earnings multiples, projected levels of earnings, costs of construction, and functional depreciation.
Real Estate Facilities
We record real estate facilities at cost. We capitalize all costs incurred to acquire, develop, construct, renovate and improve facilities as part of major repair and maintenance programs, including interest and property taxes incurred during the construction period. We expense the costs of demolition of existing facilities associated with a renovation as incurred. We allocate the net acquisition cost of acquired real estate facilities to the underlying land, buildings, and identified intangible assets based upon their respective individual estimated fair values.
We expense costs associated with dispositions of real estate, as well as routine repairs and maintenance costs, as incurred. We depreciate buildings and improvements on a straight-line basis over estimated useful lives ranging generally between 5 to 40 years.
When we sell a full or partial interest in a real estate facility without retaining a controlling interest following sale, we recognize a gain or loss on sale as if 100% of the property was sold at fair value. If we retain a controlling interest following the sale, we record a noncontrolling interest for the book value of the partial interest sold, and recognize additional paid-in capital for the difference between the consideration received and the partial interest at book value.
Goodwill and Other Intangible Assets
Intangible assets consist of goodwill, the Shurgard® trade name, which Shurgard uses pursuant to a fee-based licensing agreement, and finite-lived assets. Goodwill and the Shurgard® trade name have indefinite lives and are not amortized. Our finite-lived assets consist primarily of (i) acquired customers in place amortized relative to the benefit of the customers in place, with such amortization reflected as depreciation and amortization expense on our income statement, (ii) property tax abatements acquired and amortized relative to the reduction in property tax paid, with such amortization reflected as self-storage cost of operations on our income statement and (iii) acquired non real estate-related contracts, with such amortization reflected as depreciation and amortization expense on our income statement.
F-12
PUBLIC STORAGE
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2025
Notes Receivable
We account for notes receivable from bridge loans we originate to third-party self-storage owners at amortized cost. The bridge loans, collateralized by operating self-storage properties, typically have a term of three years or four years with two one-year extensions, and have variable interest rates. We recognize interest income and other fee income related to the bridge loans using the effective interest method, with deferred fees and costs amortized over the lives of the related loans as yield adjustment. We recognize an allowance for expected credit losses for outstanding notes receivable and unfunded loan commitments.
Evaluation of Asset Impairment
We evaluate our real estate and finite-lived intangible assets for impairment each quarter. If there are indicators of impairment and we determine that the asset is not recoverable from future undiscounted cash flows to be received through the asset’s remaining life (or, if earlier, the expected disposal date), we record an impairment charge to the extent the carrying amount exceeds the asset’s estimated fair value or net proceeds from expected disposal.
We evaluate our investment in unconsolidated real estate entity for impairment quarterly. We record an impairment charge to the extent the carrying amount exceeds estimated fair value, when we believe any such shortfall is other than temporary.
We evaluate goodwill for impairment annually and whenever relevant events, circumstances, and other related factors indicate that it is more likely than not that the fair value of the related reporting unit is less than the carrying amount. When we conclude that it is not more likely than not that the fair value of the reporting unit is less than the aggregate carrying amount, no impairment charge is recorded and no further analysis is performed. Otherwise, we record an impairment charge to the extent the carrying amount of the goodwill exceeds the amount that would be allocated to goodwill if the reporting unit were acquired for estimated fair value.
We evaluate other indefinite-lived intangible assets, such as the Shurgard® trade name for impairment at least annually and whenever relevant events, circumstances and other related factors indicate that it is more likely than not that the asset is impaired. When we conclude that it is not more likely than not that the asset is impaired, we do not record an impairment charge and no further analysis is performed. Otherwise, we record an impairment charge to the extent the carrying amount exceeds the asset’s estimated fair value.
During 2025, we recognized $4.3 million of impairment write-down of certain land development parcels that are or will be marketed for sale. These land development parcels are included in other assets on the Consolidated Balance Sheet, and the related impairment write-down is included in real estate acquisition and development expense on the Consolidated Statements of Income.
Revenue and Expense Recognition
We recognize revenues from self-storage facilities, which primarily comprise rental income earned pursuant to month-to-month leases, as well as associated late charges and administrative fees, as earned. Promotional discounts reduce rental income over the promotional period, which is generally one month. We recognize ancillary revenues when earned.
We accrue for property tax expense based upon actual amounts billed and, in some circumstances, estimates when bills or assessments have not been received from the taxing authorities. If these estimates are incorrect, the timing and amount of expense recognition could be incorrect. We expense cost of operations (including advertising expenditures), general and administrative expense, and interest expense as incurred.
F-13
PUBLIC STORAGE
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2025
Foreign Currency Exchange Translation
The local currency (the Euro) is the functional currency for our equity interests in Shurgard. The related balance sheet amounts are translated into U.S. Dollars at the exchange rates at the respective financial statement date, while amounts on our consolidated statements of income are translated at the average exchange rates during the respective period. Cumulative translation adjustments, are included in equity as a component of accumulated other comprehensive income (loss).
When financial instruments denominated in a currency other than the U.S. Dollar are expected to be settled in cash in the foreseeable future, the impact of changes in the U.S. Dollar equivalent are reflected in current earnings.
At December 31, 2025, due primarily to our investment in Shurgard (Note 4) and our notes payable denominated in Euros (Note 8), our operating results and financial position are affected by fluctuations in currency exchange rates between the Euro, against the U.S. Dollar. The Euro was translated at exchange rates of approximately 1.174 U.S. Dollars per Euro at December 31, 2025 (1.039 at December 31, 2024), and average exchange rates of 1.130, 1.082 and 1.081 for the years ended December 31, 2025, 2024, and 2023, respectively.
Income Taxes
We and a subsidiary of PSOC have elected to be treated as a REIT, as defined in the Internal Revenue Code of 1986, as amended (the “Code”). For each taxable year in which we qualify for taxation as a REIT, we will not be subject to U.S. federal corporate income tax on our “REIT taxable income” (generally, taxable income subject to specified adjustments, including a deduction for dividends paid and excluding our net capital gain) that is distributed to our shareholders. We believe we have met these REIT requirements for all periods presented herein. Accordingly, we have recorded no U.S. federal corporate income tax expense related to our REIT taxable income.
We have elected taxable REIT subsidiary (“TRS”) status for some of our consolidated subsidiaries. Our tenant reinsurance, merchandise, third party management operations and our equity investment in Shurgard are conducted under these TRSs and are subject to federal corporate income tax. For these entities, deferred tax assets and liabilities for temporary differences are recognized based on the future tax consequences attributable to differences that exist between the financial statement carrying amounts of assets and liabilities and their respective tax bases, as well as tax attributes such as operating loss, capital loss and tax credits carryforwards on a taxing jurisdiction basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the year in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts that are expected more likely than not to be realized in the future.
We recognize tax benefits of uncertain income tax positions only if we believe it is more likely than not that the position would ultimately be sustained assuming the relevant taxing authorities had full knowledge of the relevant facts and circumstances of our positions. As of December 31, 2025, we had no uncertain tax positions.
We also incur income taxes in certain state and local jurisdictions, which are included in income tax (provision) benefit in the Consolidated Statements of Income.
Share-Based Compensation
Under various share-based compensation plans and under terms established or modified by our Board or a committee thereof, we grant awards to trustees, officers, and key employees, including non-qualified options to purchase the Company’s common shares, restricted share units (“RSUs”), deferred share units (“DSUs”), and unrestricted common shares issued in lieu of trustee compensation.
In February 2024, we amended our 2021 Equity and Performance-Based Incentive Plan to further provide for the grant of awards to certain officers and trustees of the Company in the form of Long-Term Incentive Plan units (“LTIP units”) and appreciation-only LTIP units (“AO LTIP units”) of PSA OP. LTIP units are structured as “profit interests” for U.S. federal income tax purposes.
F-14
PUBLIC STORAGE
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2025
We estimate the fair value of share-based payment awards on the date of grant. We determine the fair value of RSUs, DSUs, and LTIP units with no market conditions based on the closing market price of the Company’s common shares on the date of grant. We value stock options and AO LTIP units with no market conditions at the grant date using the Black-Scholes option-pricing model. We value awards with market conditions at the grant date using a Monte-Carlo valuation simulation. Our determination of the fair value of share-based payment awards on the date of grant using an option-pricing model or Monte-Carlo valuation simulation is affected by our stock price as well as assumptions regarding a number of subjective and complex variables. These variables include, but are not limited to, our expected stock price volatility over the expected term of the awards. For stock options and AO LTIP units, variables also include actual and projected stock option exercise and AO LTIP unit conversion behaviors. For awards with performance conditions, we adjust compensation cost each quarter as needed for any changes in the assessment of the probability that the specified performance criteria will be achieved.
We amortize the grant-date fair value of awards as compensation expense over the service period, which begins on the grant date and ends on the expected vesting date. For awards that are earned solely upon the passage of time and continued service, the entire cost of the award is amortized on a straight-line basis over the service period. For awards with market and/or performance conditions, the individual cost of each vesting is amortized separately over each individual service period (the “accelerated attribution” method). For awards with performance conditions, the estimated number of stock awards that will ultimately vest requires judgment, and to the extent actual results or updated estimates differ from our current estimates, such amounts will be recorded as a cumulative adjustment in the period estimates are revised. In amortizing share-based compensation expense, we do not estimate future forfeitures. Instead, we reverse previously amortized share-based compensation expense with respect to grants that are forfeited in the period the employee terminates employment.
Our share-based compensation plans allow immediate vesting of outstanding unvested awards upon retirement (“Retirement Acceleration”) for employees who meet certain conditions. We accelerate amortization of compensation expense for each grant by changing the end of the service period from the original vesting date to the date an employee is expected to be eligible for Retirement Acceleration, if earlier.
Recently Adopted Accounting Standards
In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, to enhance the transparency and decision-usefulness of income tax disclosures, particularly in the rate reconciliation table and income taxes paid annual disclosure. This standard became effective for the Company, for its fiscal year 2025 reporting and for interim periods beginning in 2026. The enhanced disclosures regarded the Company’s Income Taxes are provided in Note 14.
In September 2025, the FASB issued ASU 2025-06, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40), to amend the criteria for capitalizing internal-use software costs. This update is intended to modernize the accounting for software costs by replacing the legacy guidance under which capitalization is based on the nature of costs and the project development stage. This update requires software capitalization to begin when (1) management has authorized and committed funding to the software project and (2) it is probable that the project will be completed and the software will be used to perform the function intended. The guidance is effective for annual periods beginning after December 15, 2027 and interim periods within those annual reporting periods. The guidance may be applied prospectively, retrospectively, or via a modified prospective approach. Early adoption is permitted. The company adopted these amendments effective January 1, 2026. The adoption did not have a material impact on the Company’s consolidated financial statements.
F-15
PUBLIC STORAGE
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2025
Recent Accounting Pronouncements Not Yet Adopted
In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income (Topic 220-40): Expense Disaggregation Disclosures ("ASU 2024-03"), that requires the disclosure of additional information related to certain costs and expenses, including amounts of inventory purchases, employee compensation, and depreciation and amortization included in each income statement line item. The guidance also requires disclosure of the total amount of selling expenses and the entity’s definition selling expenses. The guidance is effective for annual periods beginning after December 15, 2026 and interim periods within fiscal years beginning after December 15, 2027. The guidance may be applied prospectively or retrospectively. Early adoption is permitted. We are currently evaluating the impact of this update on our consolidated financial statements and related disclosures.
- Real Estate Facilities
Activity in real estate facilities during 2025, 2024, and 2023 is as follows:
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| (Amounts in thousands) | |||||||||||||||||
| Operating facilities, at cost: | |||||||||||||||||
| Beginning balance | $ | 28,478,738 | $ | 27,465,238 | $ | 24,219,126 | |||||||||||
| Capital expenditures to maintain real estate facilities | 218,763 | 234,541 | 232,048 | ||||||||||||||
| Capital expenditures for property enhancements | — | 126,324 | 163,380 | ||||||||||||||
| Capital expenditures for energy efficiencies (LED lighting, solar) | 70,675 | 54,433 | 65,026 | ||||||||||||||
| Acquisitions | 882,208 | 254,940 | 2,442,118 | ||||||||||||||
| Transfers, dispositions, and retirements, net | 19,011 | (106) | (19,322) | ||||||||||||||
| Developed or expanded facilities opened for operation | 408,862 | 343,368 | 362,862 | ||||||||||||||
| Ending balance | 30,078,257 | 28,478,738 | 27,465,238 | ||||||||||||||
| Accumulated depreciation: | |||||||||||||||||
| Beginning balance | (10,426,186) | (9,423,974) | (8,554,155) | ||||||||||||||
| Depreciation expense | (1,046,039) | (1,002,212) | (881,255) | ||||||||||||||
| Transfers, dispositions and retirements | 4,171 | — | 11,436 | ||||||||||||||
| Ending balance | (11,468,054) | (10,426,186) | (9,423,974) | ||||||||||||||
| Construction in process: | |||||||||||||||||
| Beginning balance | 308,101 | 345,453 | 372,992 | ||||||||||||||
| Costs incurred to develop and expand real estate facilities | 302,214 | 307,650 | 356,788 | ||||||||||||||
| Acquisitions | — | — | 2,922 | ||||||||||||||
| Transfer to Other Assets | (7,026) | — | (12,666) | ||||||||||||||
| Write-off of cancelled projects | (72) | (1,634) | (11,721) | ||||||||||||||
| Developed or expanded facilities opened for operation | (408,862) | (343,368) | (362,862) | ||||||||||||||
| Ending balance | 194,355 | 308,101 | 345,453 | ||||||||||||||
| Total real estate facilities at December 31, 2025 | $ | 18,804,558 | $ | 18,360,653 | $ | 18,386,717 |
F-16
PUBLIC STORAGE
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2025
During 2025, we acquired 87 self-storage facilities (6.1 million net rentable square feet of storage space), for a total cost of $945.6 million in cash. Approximately $63.4 million of the total cost was allocated to intangible assets. We completed development and redevelopment activities costing $408.9 million, adding 2.1 million net rentable square feet of self-storage space. Construction in process at December 31, 2025 consisted of projects to develop new self-storage facilities and expand existing self-storage facilities.
During 2024, we acquired 22 self-storage facilities (1.7 million net rentable square feet of storage space), for a total cost of $267.5 million in cash. Approximately $12.5 million of the total cost was allocated to intangible assets. We completed development and redevelopment activities costing $343.4 million, adding 1.5 million net rentable square feet of self-storage space. Construction in process at December 31, 2024 consisted of projects to develop new self-storage facilities and expand existing self-storage facilities.
During 2023, we acquired all the membership interests of BREIT Simply Storage LLC, a self-storage company that owns and operates 127 self-storage facilities (9.4 million net rentable square feet) and manages 25 self-storage facilities for third parties, for a purchase price of $2.2 billion in cash (the “Simply Acquisition”). Approximately $2 billion of the total costs was allocated to real estate facilities and $214.3 million was allocated to intangible assets.
During 2023, in addition to the Simply Acquisition, we acquired 37 self-storage facilities (2.7 million net rentable square feet of storage space), for a total cost of $473.2 million in cash. Approximately $23.2 million of the total cost was allocated to intangible assets. We completed development and redevelopment activities costing $362.9 million during 2023, adding 1.7 million net rentable square feet of self-storage space. Construction in process at December 31, 2023 consisted of projects to develop new self-storage facilities and expand existing self-storage facilities. During 2023, we wrote off $11.7 million of accumulated development costs for cancelled development and redevelopment projects in construction in process as real estate acquisition and development expense. We also transferred $12.7 million of land cost related to cancelled development projects to other assets at December 31, 2023.
During 2023, we completed a real estate transaction with a third-party, through which we sold an operating self-storage facility with a net book value of $7.1 million for gross proceeds of $40.0 million and acquired a nearby land parcel for $13.5 million. At the close of the transaction, we entered into a leaseback of the self-storage facility until we complete development of the acquired land into a self-storage facility, no later than December 31, 2026. Of the $40.0 million in gross proceeds, $24.3 million was allocated to the sale of the property based on its estimated fair value, resulting a net gain on sale of real estate of $17.1 million after direct transaction costs, and $15.7 million was classified as a reduction of costs to develop the acquired land included in construction in process. In 2025, the leaseback of the self-storage facility ended resulting in the disposal of the property.
During 2023, we also sold a land parcel for $0.1 million in cash and recorded a related gain on sale of real estate of $0.1 million.
At December 31, 2025, the adjusted basis of real estate facilities for U.S. federal tax purposes was approximately $19.5 billion (unaudited).
F-17
PUBLIC STORAGE
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2025
- Investment in Unconsolidated Real Estate Entity
Throughout all periods presented, we had an approximate 35% equity interest in Shurgard. On November 14, 2023, Shurgard issued 8,163,265 new common shares to institutional investors. We participated on a pro-rata basis in the offering and acquired 2,863,674 common shares for a cost of $112.6 million. On September 26, 2024, Shurgard issued 1,114,194 new common shares to its shareholders who opted to exchange the cash dividend rights declared on August 13, 2024 for additional shares. We received 487,600 new common shares in exchange for all of our dividend rights. On September 15 and June 13, 2025, Shurgard issued 1,192,066 and 1,267,459 new common shares to its shareholders who opted to exchange the cash dividend rights declared on August 13, 2025 and May 14, 2025, respectively, for additional shares. On September 15 and June 13, 2025, we received 576,984 and 576,992 new common shares, respectively, in exchange for all of our dividend rights. At December 31, 2025, we owned 35,773,710 common shares of Shurgard. Based upon the closing price at December 31, 2025 (€29.30 per share of Shurgard common stock, at 1.174 exchange rate of U.S. Dollars to the Euro), the shares we owned had a market value of approximately $1.2 billion.
Our equity in earnings of Shurgard comprise our equity share of Shurgard’s net income, less amortization of the Shurgard Basis Differential (defined below). During 2025, 2024, and 2023, we received $5.0 million, $4.3 million, and $3.8 million of trademark license fees that Shurgard pays to us for the use of the Shurgard® trademark, respectively. We eliminated $1.8 million, $1.5 million, and $1.3 million of intra-entity profits and losses for 2025, 2024, and 2023, respectively, representing our equity share of the trademark license fees. We classify the remaining license fees we receive from Shurgard as interest and other income on our Consolidated Statements of Income.
During 2025, we elected to receive our dividend distributions entirely in the form of additional shares as described above. In 2024, and 2023, we received cash dividend distributions from Shurgard totaling $22.8 million, and $39.0 million, respectively. Approximately $13.3 million, and $11.0 million of total cash distributions from Shurgard during the year ended 2024, and 2023, respectively, represented distributions in excess of cumulative equity in earnings from Shurgard, which was classified within cash flows from investing activities in the Consolidated Statements of Cash Flows.
At December 31, 2025, our investment in Shurgard’s real estate assets exceeded our pro-rata share of the underlying amounts on Shurgard’s balance sheet by $37.7 million ($62.6 million at December 31, 2024). This differential (the “Shurgard Basis Differential”) includes our basis adjustments in Shurgard’s real estate assets net of related deferred income taxes. During 2025, we transferred $25.7 million of the Shurgard Basis Differential to Real Estate Facilities. The Shurgard Basis Differential is being amortized as a reduction to equity in earnings of the Unconsolidated Real Estate Entity. Such amortization totaled approximately $8.0 million, $4.5 million, and $4.1 million during 2025, 2024, and 2023, respectively.
As of December 31, 2025, 2024 and 2023, we translated the book value of our investment in Shurgard from Euro to U.S. Dollars and recorded $24.2 million in other comprehensive income, $4.7 million in other comprehensive loss and $13.1 million in other comprehensive income during the years ended December 31, 2025, 2024 and 2023, respectively.
F-18
PUBLIC STORAGE
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2025
- Goodwill and Other Intangible Assets
Goodwill and other intangible assets consisted of the following:
| At December 31, 2025 | At December 31, 2024 | ||||||||||||||||||||||||||||||||||
| Gross Book Value | Accumulated Amortization | Net Book Value | Gross Book Value | Accumulated Amortization | Net Book Value | ||||||||||||||||||||||||||||||
| (Amounts in thousands) | |||||||||||||||||||||||||||||||||||
| Goodwill | $ | 165,843 | $ | — | $ | 165,843 | $ | 165,843 | $ | — | $ | 165,843 | |||||||||||||||||||||||
| Shurgard® Trade Name | 18,824 | — | 18,824 | 18,824 | — | 18,824 | |||||||||||||||||||||||||||||
| Finite-lived intangible assets, subject to amortization | 1,071,488 | (1,004,542) | 66,946 | 1,008,111 | (910,591) | 97,520 | |||||||||||||||||||||||||||||
| Total goodwill and other intangible assets | $ | 1,256,155 | $ | (1,004,542) | $ | 251,613 | $ | 1,192,778 | $ | (910,591) | $ | 282,187 |
Finite-lived intangible assets consist primarily of acquired customers in place. Amortization expense related to intangible assets subject to amortization was $94.0 million, $117.6 million and $82.7 million in 2025, 2024, and 2023, respectively. During 2025, 2024, and 2023, intangibles increased $63.4 million, $12.5 million, and $237.5 million, respectively, in connection with the acquisition of real estate facilities and Simply Acquisition (Note 3).
The remaining amortization expense will be recognized over a weighted average life of approximately 1.2 years. The estimated future amortization expense for our finite-lived intangible assets at December 31, 2025 is as follows:
| Year | Amount | |||||||
| (Amounts in Thousands) | ||||||||
| 2026 | $ | 51,993 | ||||||
| 2027 | 10,545 | |||||||
| 2028 | 965 | |||||||
| 2029 | 212 | |||||||
| 2030 | 212 | |||||||
| Thereafter | 3,019 | |||||||
| Total | $ | 66,946 |
- Notes Receivable
We offer bridge loan financing to third-party self-storage owners for operating properties that we manage. The bridge loans, collateralized by operating self-storage properties, typically have a term of three or four years with two one-year extensions, and have variable interest rates. At December 31, 2025 and December 31, 2024, we had notes receivable of $142.1 million and $10.0 million with average annual interest rates of 7.9% and 8.1%, respectively. At December 31, 2025, we had unfunded loan commitments of $43.9 million expected to close in the next twelve months, subject to the satisfaction of certain conditions. As of December 31, 2025 and 2024, none of the notes receivable were in past-due or nonaccrual status and the allowance for expected credit losses was immaterial.
F-19
PUBLIC STORAGE
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2025
- Credit Facility
On June 12, 2023, PSOC entered into an amended revolving credit agreement (the “Credit Facility”), which increased our borrowing limit from $500 million to $1.5 billion and extended the maturity date from April 19, 2024 to June 12, 2027. We have the option to further extend the maturity date by up to one additional year with additional extension fees up to 0.125% of the extended commitment amount. Amounts drawn on the Credit Facility bear annual interest at rates ranging from SOFR plus 0.65% to SOFR plus 1.40% depending upon our credit rating (SOFR plus 0.70% at December 31, 2025). We are also required to pay a quarterly facility fee ranging from 0.10% per annum to 0.30% per annum depending upon our credit rating (0.10% per annum at December 31, 2025). At December 31, 2025, we had no outstanding borrowings under this Credit Facility. We had undrawn standby letters of credit, which reduce our borrowing capacity, totaling $19.4 million at December 31, 2025 ($19.4 million at December 31, 2024). The Credit Facility has various customary restrictive covenants with which we were in compliance at December 31, 2025.
Public Storage has provided a full and unconditional guarantee of PSOC’s obligations under the Credit Facility.
F-20
PUBLIC STORAGE
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2025
- Notes Payable
Our notes payable (all of which were issued by PSOC), are reflected net of issuance costs (including original issue discounts), which are amortized as interest expense on the effective interest method over the term of each respective note. Our notes payable at December 31, 2025 and December 31, 2024 are set forth in the tables below:
| Amounts at December 31, 2025 | Amounts at December 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||
| Coupon Rate | Effective Rate | Principal | Unamortized Costs | Book Value | Fair Value | Book Value | Fair Value | ||||||||||||||||||||||||||||||||||||||||
| (Dollar amounts in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
| U.S. Dollar Denominated Unsecured Debt | |||||||||||||||||||||||||||||||||||||||||||||||
| Notes due July 25, 2025 | SOFR+0.60% | 4.940% | $ | — | $ | — | $ | — | $ | — | $ | 399,537 | $ | 400,714 | |||||||||||||||||||||||||||||||||
| Notes due February 15, 2026 | 0.875% | 1.030% | 500,000 | (99) | 499,901 | 497,958 | 499,160 | 479,639 | |||||||||||||||||||||||||||||||||||||||
| Notes due November 9, 2026 | 1.500% | 1.640% | 650,000 | (747) | 649,253 | 636,828 | 648,383 | 614,981 | |||||||||||||||||||||||||||||||||||||||
| Notes due April 16, 2027 | SOFR+0.70% | 4.645% | 700,000 | (1,416) | 698,584 | 703,891 | 697,544 | 706,119 | |||||||||||||||||||||||||||||||||||||||
| Notes due September 15, 2027 | 3.094% | 3.218% | 500,000 | (908) | 499,092 | 494,206 | 498,564 | 480,904 | |||||||||||||||||||||||||||||||||||||||
| Notes due May 1, 2028 | 1.850% | 1.962% | 650,000 | (1,567) | 648,433 | 620,402 | 647,756 | 592,876 | |||||||||||||||||||||||||||||||||||||||
| Notes due November 9, 2028 | 1.950% | 2.044% | 550,000 | (1,375) | 548,625 | 520,843 | 548,144 | 494,867 | |||||||||||||||||||||||||||||||||||||||
| Notes due January 15, 2029 | 5.125% | 5.260% | 500,000 | (1,775) | 498,225 | 516,660 | 497,639 | 506,074 | |||||||||||||||||||||||||||||||||||||||
| Notes due May 1, 2029 | 3.385% | 3.459% | 500,000 | (1,017) | 498,983 | 489,405 | 498,673 | 472,031 | |||||||||||||||||||||||||||||||||||||||
| Notes due July 1, 2030 (a) | 4.375% | 4.568% | 475,000 | (3,645) | 471,497 | 478,958 | — | — | |||||||||||||||||||||||||||||||||||||||
| Notes due May 1, 2031 | 2.300% | 2.419% | 650,000 | (3,642) | 646,358 | 588,030 | 645,673 | 555,387 | |||||||||||||||||||||||||||||||||||||||
| Notes due November 9, 2031 | 2.250% | 2.322% | 550,000 | (2,078) | 547,922 | 490,580 | 547,570 | 459,682 | |||||||||||||||||||||||||||||||||||||||
| Notes due August 1, 2033 | 5.100% | 5.207% | 700,000 | (4,392) | 695,608 | 724,886 | 695,028 | 695,171 | |||||||||||||||||||||||||||||||||||||||
| Notes due July 1, 2035 | 5.000% | 5.143% | 400,000 | (4,184) | 395,816 | 406,046 | — | — | |||||||||||||||||||||||||||||||||||||||
| Notes due August 1, 2053 | 5.350% | 5.474% | 900,000 | (15,224) | 884,776 | 870,986 | 884,224 | 856,992 | |||||||||||||||||||||||||||||||||||||||
| 8,225,000 | (42,069) | 8,183,073 | 8,039,679 | 7,707,895 | 7,315,437 | ||||||||||||||||||||||||||||||||||||||||||
| Euro Denominated Unsecured Debt | |||||||||||||||||||||||||||||||||||||||||||||||
| Notes due November 3, 2025 | 2.175% | 2.175% | — | — | — | — | 251,385 | 249,979 | |||||||||||||||||||||||||||||||||||||||
| Notes due September 9, 2030 | 0.500% | 0.640% | 821,758 | (5,252) | 816,506 | 727,308 | 720,735 | 630,159 | |||||||||||||||||||||||||||||||||||||||
| Notes due January 24, 2032 | 0.875% | 0.978% | 586,970 | (3,250) | 583,720 | 508,532 | 515,575 | 443,113 | |||||||||||||||||||||||||||||||||||||||
| Notes due January 20, 2034 | 3.500% | 3.836% | 498,925 | (5,945) | 492,980 | 441,580 | — | — | |||||||||||||||||||||||||||||||||||||||
| Notes due April 11, 2039 | 4.080% | 4.080% | 176,091 | (65) | 176,026 | 177,535 | 155,736 | 166,979 | |||||||||||||||||||||||||||||||||||||||
| 2,083,744 | (14,512) | 2,069,232 | 1,854,955 | 1,643,431 | 1,490,230 | ||||||||||||||||||||||||||||||||||||||||||
| Mortgage Debt*,* secured by 2 real estate facilities with a net book value of 10.8 million | 4.240% | 4.240% | 1,576 | — | 1,576 | 1,545 | 1,708 | 1,591 | |||||||||||||||||||||||||||||||||||||||
| $ | 10,310,320 | $ | (56,581) | $ | 10,253,881 | $ | 9,896,179 | $ | 9,353,034 | $ | 8,807,258 | ||||||||||||||||||||||||||||||||||||
(a) The book value includes $0.1 million in adjustments related to changes in fair value attributable to hedging instruments on these notes as of December 31, 2025. See below for further discussion.
Public Storage has provided a full and unconditional guarantee of PSOC’s obligations under each series of unsecured notes.
F-21
PUBLIC STORAGE
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2025
U.S. Dollar Denominated Unsecured Notes
On June 30, 2025, PSOC completed a public offering of $875 million aggregate principal amount of senior notes, including $475 million aggregate principal amount of fixed rate senior notes bearing interest at an annual rate of 4.375% maturing on July 1, 2030 and $400 million aggregate principal amount of fixed rate senior notes bearing interest at an annual rate of 5.000% maturing on July 1, 2035. Interest on the senior notes is payable semi-annually on January 1 and July 1 of each year, commencing on January 1, 2026. In connection with the offering, we received approximately $867 million in net proceeds.
In connection with our public offering of senior notes due July 1, 2030, we entered into three separate interest rate swap agreements, with a combined notional amount of $475 million, which effectively convert the debt’s fixed interest rate to a variable rate (SOFR + 0.92%). The swaps were designated in combination as a fair value hedge of interest rate risk and mature on July 1, 2030. The Company’s hedging relationship is assumed to be perfectly effective. As of December 31, 2025, the fair value of the swaps was an asset position of $0.1 million. There was no impact to earnings for the year ended December 31, 2025. The estimated fair values of our swaps are based upon changes in benchmark interest rates related to these notes. Because this methodology includes inputs that are less observable by the public and are not necessarily reflected in active markets, the measurement of the estimated fair values related to these financial instruments is categorized as level 2 in the fair value hierarchy.
On July 25, 2025, we repaid PSOC’s outstanding $400 million aggregate principal amount of floating rate senior notes bearing interest at a rate of Compounded SOFR + 0.60% at maturity.
On April 16, 2024, PSOC completed a public offering of $1.0 billion aggregate principal amount of senior notes, including $700 million aggregate principal amount of floating rate senior notes bearing interest at a rate of Compounded SOFR + 0.70% (reset quarterly) maturing on April 16, 2027 and $300 million aggregate principal amount of senior notes bearing interest at a fixed annual rate of 5.350% maturing on August 1, 2053. The 2053 notes issued at a discount of $5.3 million constitute a further issuance of, and form a single series with, PSOC’s outstanding 5.350% senior notes due 2053 issued on July 26, 2023 in the aggregate principal amount of $600 million. Interest on the floating rate senior notes is payable quarterly, commencing on July 16, 2024. Interest on the 2053 notes is payable semi-annually, commencing on August 1, 2024. In connection with the offering, we received $988.5 million in net proceeds.
On April 23, 2024, we repaid PSOC’s outstanding $700 million aggregate principal amount of floating rate senior notes bearing interest at a rate of Compounded SOFR + 0.470% at maturity.
On July 26, 2023, PSOC completed a public offering of $400 million, $500 million, $700 million, and $600 million aggregate principal amount of unsecured senior notes bearing interest at an annual rate of Compounded SOFR + 0.60% (reset quarterly), 5.125%, 5.100%, and 5.350%, respectively, and maturing on July 25, 2025, January 15, 2029, August 1, 2033, and August 1, 2053, respectively. Interest on the 2025 notes is payable quarterly, commencing on October 25, 2023. Interest on the 2029 notes is payable semi-annually, commencing on January 15, 2024. Interest on the 2033 notes and 2053 notes is payable semi-annually, commencing on February 1, 2024. In connection with the offering, we incurred a total of $18.7 million in costs.
The U.S. Dollar denominated unsecured notes (the “U.S. Dollar Denominated Unsecured Notes”) have various financial covenants with which we were in compliance at December 31, 2025. Included in these covenants are (a) a maximum Debt to Total Assets of 65% (approximately 19% at December 31, 2025) and (b) a minimum ratio of Adjusted EBITDA to Interest Expense of 1.5x (approximately 12x for the trailing twelve months ended December 31, 2025) as well as covenants limiting the amount we can encumber our properties with mortgage debt.
Euro Denominated Unsecured Notes
At December 31, 2025, our Euro denominated unsecured notes (the “Euro Notes”) consisted of four tranches: (i) €500.0 million issued in a public offering on January 24, 2020, (ii) €700.0 million issued in a public offering on September 9, 2021, (iii) €150.0 million issued to institutional investors on April 11, 2024, and (iv) €425.0 million issued in a public offering on October 3, 2025. The Euro Notes have financial covenants similar to those of the U.S. Dollar Denominated Unsecured Notes.
F-22
PUBLIC STORAGE
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2025
On October 3, 2025, PSOC completed a public offering of €425.0 million aggregate principal amount of fixed rate senior notes bearing interest at an annual rate of 3.500% maturing on January 20, 2034. We received €420.8 million in net proceeds from the offering. On November 3, 2025, we used the net proceeds to repay PSOC’s outstanding €242.0 million aggregate principal amount 2.175% senior notes due November 3, 2025 to institutional investors.
The €150.0 million notes issued to institutional investors on April 11, 2024 bear interest at a fixed rate of 4.080% and mature on April 11, 2039. We received $162.5 million in net proceeds upon converting the Euros to U.S. Dollars. On April 11, 2024, we repaid PSOC’s outstanding €100.0 million aggregate principal amount 1.540% senior notes due April 12, 2024 to the same institutional investors for $108.4 million.
We reflect changes in the U.S. Dollar equivalent of the amount payable including the associated interest, as a result of changes in foreign exchange rates as “Foreign currency exchange gain (loss)” on our income statement (losses of $213.5 million in 2025, as compared to gains of $103.0 million in 2024 and losses of $51.6 million in 2023).
Mortgage Notes
We assumed our non-recourse mortgage debt in connection with property acquisitions, and we recorded such debt at fair value with any premium or discount to the stated note balance amortized using the effective interest method.
At December 31, 2025, the related contractual interest rates of our mortgage notes are fixed, ranging between 3.9% and 7.1%, and mature between September 1, 2028 and July 1, 2030.
At December 31, 2025, approximate principal maturities of our Notes Payable are as follows:
| Unsecured Debt | Mortgage Debt | Total | |||||||||||||||
| (Amounts in thousands) | |||||||||||||||||
| 2026 | $ | 1,150,000 | $ | 138 | $ | 1,150,138 | |||||||||||
| 2027 | 1,200,000 | 146 | 1,200,146 | ||||||||||||||
| 2028 | 1,200,000 | 129 | 1,200,129 | ||||||||||||||
| 2029 | 1,000,000 | 88 | 1,000,088 | ||||||||||||||
| 2030 | 1,296,758 | 1,061 | 1,297,819 | ||||||||||||||
| Thereafter | 4,461,986 | 14 | 4,462,000 | ||||||||||||||
| $ | 10,308,744 | $ | 1,576 | $ | 10,310,320 | ||||||||||||
| Weighted average effective rate | 3.2% | 4.2% | 3.2% |
Interest capitalized as real estate totaled $6.5 million, $10.5 million, and $9.3 million for 2025, 2024, and 2023, respectively.
- Noncontrolling Interests
There are noncontrolling interests related to subsidiaries of PSOC we consolidate of which we do not own 100% of the equity. At December 31, 2025, certain of these subsidiaries have issued 470,398 partnership units to third-parties that are redeemable by the holders on a one-for-one basis for common shares of the Company or cash at our option.
F-23
PUBLIC STORAGE
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2025
Noncontrolling interests also include the partnership interests of PSA OP not owned by the Company, including common units (“OP Units”) and vested LTIP units from equity awards we issue to certain officers and trustees of the Company (see Note 12 Share-based Compensation). Vested LTIP units (subject to certain conditions) may be converted into the same number of OP Units of PSA OP, which are redeemable by the holders on a one-for-one basis for common shares of the Company or cash at our option. The holders of OP Units and vested LTIP units are entitled to receive per-unit cash distributions equal to the per-share dividends received by our common shareholders. At December 31, 2025, approximately 0.20% of the partnership interests of PSA OP, were not owned by the Company. We adjust the balance of noncontrolling interests of PSA OP to reflect their proportionate share of the net assets of PSA OP as of the end of each period.
- Shareholders’ Equity
Preferred Shares
At December 31, 2025 and December 31, 2024, we had the following series of Cumulative Preferred Shares (“Preferred Shares”) outstanding:
| At December 31, 2025 | At December 31, 2024 | |||||||||||||||||||||||||||||||||||||
| Series | Earliest Redemption Date | Dividend Rate | Shares Outstanding | Liquidation Preference | Shares Outstanding | Liquidation Preference | ||||||||||||||||||||||||||||||||
| (Dollar amounts in thousands) | ||||||||||||||||||||||||||||||||||||||
| Series F | 6/2/2022 | 5.150 | % | 11,200 | $ | 280,000 | 11,200 | $ | 280,000 | |||||||||||||||||||||||||||||
| Series G | 8/9/2022 | 5.050 | % | 12,000 | 300,000 | 12,000 | 300,000 | |||||||||||||||||||||||||||||||
| Series H | 3/11/2024 | 5.600 | % | 11,400 | 285,000 | 11,400 | 285,000 | |||||||||||||||||||||||||||||||
| Series I | 9/12/2024 | 4.875 | % | 12,650 | 316,250 | 12,650 | 316,250 | |||||||||||||||||||||||||||||||
| Series J | 11/15/2024 | 4.700 | % | 10,350 | 258,750 | 10,350 | 258,750 | |||||||||||||||||||||||||||||||
| Series K | 12/20/2024 | 4.750 | % | 9,200 | 230,000 | 9,200 | 230,000 | |||||||||||||||||||||||||||||||
| Series L | 6/17/2025 | 4.625 | % | 22,600 | 565,000 | 22,600 | 565,000 | |||||||||||||||||||||||||||||||
| Series M | 8/14/2025 | 4.125 | % | 9,200 | 230,000 | 9,200 | 230,000 | |||||||||||||||||||||||||||||||
| Series N | 10/6/2025 | 3.875 | % | 11,300 | 282,500 | 11,300 | 282,500 | |||||||||||||||||||||||||||||||
| Series O | 11/17/2025 | 3.900 | % | 6,800 | 170,000 | 6,800 | 170,000 | |||||||||||||||||||||||||||||||
| Series P | 6/16/2026 | 4.000 | % | 24,150 | 603,750 | 24,150 | 603,750 | |||||||||||||||||||||||||||||||
| Series Q | 8/17/2026 | 3.950 | % | 5,750 | 143,750 | 5,750 | 143,750 | |||||||||||||||||||||||||||||||
| Series R | 11/19/2026 | 4.000 | % | 17,400 | 435,000 | 17,400 | 435,000 | |||||||||||||||||||||||||||||||
| Series S | 1/13/2027 | 4.100 | % | 10,000 | 250,000 | 10,000 | 250,000 | |||||||||||||||||||||||||||||||
| Total Preferred Shares | 174,000 | $ | 4,350,000 | 174,000 | $ | 4,350,000 |
The holders of our Preferred Shares have general preference rights with respect to liquidation, quarterly distributions, and any accumulated unpaid distributions. Except as noted below, holders of the Preferred Shares do not have voting rights. In the event of a cumulative arrearage equal to six quarterly dividends, holders of all outstanding series of preferred shares (voting as a single class without regard to series) will have the right to elect two additional members to serve on our Board of Trustees (our “Board”) until the arrearage has been cured. At December 31, 2025, there were no dividends in arrears. The affirmative vote of at least 66.67% of the outstanding shares of a series of Preferred Shares is required for any material and adverse amendment to the terms of such series. The affirmative vote of at least 66.67% of the outstanding shares of all of our Preferred Shares, voting as a single class, is required to issue shares ranking senior to our Preferred Shares.
F-24
PUBLIC STORAGE
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2025
Except under certain conditions relating to the Company’s qualification as a REIT, the Preferred Shares are not redeemable prior to the dates indicated on the table above. On or after the respective dates, each of the series of Preferred Shares is redeemable at our option, in whole or in part, at $25.00 per depositary share, plus accrued and unpaid dividends. Holders of the Preferred Shares cannot require us to redeem such shares.
Upon issuance of our Preferred Shares, we classify the liquidation value as preferred equity on our consolidated balance sheet with any issuance costs recorded as a reduction to Paid-in capital.
Common Shares
During 2025, 2024, and 2023, activity with respect to our common shares was as follows:
| 2025 | 2024 | 2023 | |||||||||||||||||||||||||||||||||
| Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||
| (Dollar amounts in thousands) | |||||||||||||||||||||||||||||||||||
| Employee stock-based compensation and exercise of stock options (Note 12) | 91,850 | $ | 9,544 | 280,141 | $ | 47,411 | 405,059 | $ | 53,386 | ||||||||||||||||||||||||||
| Issuance of commons shares for cash | — | — | 184,390 | 60,321 | — | — | |||||||||||||||||||||||||||||
| Repurchase of common shares | — | — | (726,865) | (200,000) | — | — | |||||||||||||||||||||||||||||
| 91,850 | $ | 9,544 | (262,334) | $ | (92,268) | 405,059 | $ | 53,386 |
In 2024, our Board authorized an “at the market” offering program pursuant to which management may issue common shares up to an aggregate gross sales price of $2.0 billion on the open market or in privately negotiated transactions. Since the inception of the program, we have issued a total of 184,390 common shares on the open market for an aggregate gross sales price of $61.4 million and received net proceeds of approximately $60.3 million after issuance costs. There were no issuances of shares under the program in 2025.
Our Board has authorized a share repurchase program pursuant to which management may repurchase up to 35,000,000 of our common shares on the open market or in privately negotiated transactions. Since the inception of the program, we have repurchased a total of 24,448,781 common shares at an aggregate cost of approximately $879.1 million. The repurchased shares are constructively retired and returned to an authorized and unissued status. There are 10,551,219 common shares that may yet be repurchased under our repurchase program as of December 31, 2025 and there were no repurchases for the year ended December 31, 2025.
Common share dividends paid, including amounts paid to our restricted share unitholders, deferred share unitholders, and unvested LTIP unitholders totaled $2.109 billion ($12.00 per share), $2.107 billion ($12.00 per share), and $2.111 billion ($12.00 per share) for the years ended December 31, 2025, 2024, and 2023, respectively. Preferred share dividends totaled $194.7 million for each of the years ended December 31, 2025, 2024, and 2023, respectively.
The unaudited characterization of dividends for U.S. federal corporate income tax purposes is made based upon earnings and profits of the Company, as defined by the Code. For the tax year ended December 31, 2025, distributions for the common shares and all the various series of preferred shares were classified as follows:
| 2025 (unaudited) | |||||||||||||||||||||||||||||
| 1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | ||||||||||||||||||||||||||
| Ordinary Dividends | 100.00 | % | 100.00 | % | 100.00 | % | 100.00 | % | |||||||||||||||||||||
| Capital Gain Distributions | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | |||||||||||||||||||||
| Total | 100.00 | % | 100.00 | % | 100.00 | % | 100.00 | % |
The ordinary income dividends distributed for the tax year ended December 31, 2025 are not qualified dividends under the Internal Revenue Code; however, they are subject to the 20% deduction under IRS Section 199A.
F-25
PUBLIC STORAGE
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2025
- Related Party Transactions
At December 31, 2025, Tamara Hughes Gustavson, a current member of our Board, held less than a 0.1% equity interest in, and is a manager of, a limited liability company that owns 67 self-storage facilities in Canada. Two of Ms. Gustavson’s adult children own the remaining equity interest in the limited liability company. These facilities operate under the Public Storage® tradename, which we license to the owners of these facilities for use in Canada on a royalty-free, non-exclusive basis. We have no ownership interest in these facilities, and we do not own or operate any facilities in Canada. If we chose to acquire or develop our own facilities in Canada, we would have to share the use of the Public Storage® name in Canada. We have a right of first refusal, subject to limitations, to acquire the stock or assets of the corporation engaged in the operation of these facilities if their owners agree to sell them. Our subsidiaries reinsure risks relating to loss of goods stored by customers in these facilities, and have received premium payments of approximately $2.1 million, $2.2 million and $2.1 million for 2025, 2024, and 2023, respectively.
- Share-Based Compensation
We recorded share-based compensation expense associated with our equity awards in the various expense categories in the Consolidated Statements of Income as set forth in the following table.
| Year Ended December 31, | |||||||||||||||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||||||||||||||
| (Amounts in thousands) | |||||||||||||||||||||||||||||
| Self-storage cost of operations | $ | 12,003 | $ | 12,128 | $ | 13,636 | |||||||||||||||||||||||
| Ancillary cost of operations | 1,276 | 1,161 | 1,289 | ||||||||||||||||||||||||||
| Real estate acquisition and development expense | 1,660 | 2,750 | 1,242 | ||||||||||||||||||||||||||
| General and administrative | 24,963 | 28,708 | 25,399 | ||||||||||||||||||||||||||
| Total | $ | 39,902 | $ | 44,747 | $ | 41,566 |
In addition, $2.2 million, $3.1 million, and $2.4 million share-based compensation cost was capitalized as real estate facilities for the years ended December 31, 2025, 2024, and 2023, respectively.
In May 2025, our shareholders approved an amendment and restatement of the 2021 Equity and Performance-Based Incentive plan to increase the number of common shares reserved for issuance under the 2021 Plan by an additional 3.0 million shares and to extend the termination date of the 2021 Plan from April 25, 2031 to May 7, 2035.
Following the amendment and restatement of our 2021 Equity and Performance-Based Incentive Plan in February 2024, which further provided for the grant of awards in the form of LTIP units and AO LTIP units of PSA OP, we issued LTIP units and AO LTIP units in substitution for 156,632 RSUs and 2,238,874 stock options, respectively. The LTIP units and AO LTIP units issued have the same vesting conditions as the original awards and remain classified as equity awards. The fair value of the LTIP units and AO LTIP units issued is materially the same as the original awards immediately before the substitution. As a result, we did not adjust the share-based compensation costs associated with these substituted awards.
F-26
PUBLIC STORAGE
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2025
Restricted Share Units and LTIP Units
We have service-based and performance-based RSUs and LTIP units outstanding, which generally vest over 5 to 8 years from the grant date. Performance-based RSUs and LTIP units outstanding vest upon meeting certain performance conditions or market conditions. Upon vesting, the grantee of RSUs receives new common shares equal to the number of vested RSUs, less common shares withheld to satisfy the grantee’s statutory tax liabilities arising from the vesting. Vested LTIP units represent noncontrolling interests of PSA OP and may be converted, subject to the satisfaction of all applicable vesting conditions, on a one-for-one basis into common units of PSA OP, which are exchangeable by the holders for cash, or at the Company’s election, on a one-for-one basis into common shares of the Company. Holders of RSUs and LTIP units are entitled to receive per-unit cash distributions equal to the per-share dividends received by our common shareholders, except that holders of performance-based awards are not entitled to receive the full distributions until expiration of the applicable performance period, at which time holders of any earned performance-based awards are entitled to receive a catch-up distribution for the periods prior to such time.
For the years ended December 31, 2025, 2024, and 2023, we incurred share-based compensation cost for RSUs and LTIP units of $30.5 million, $34.4 million, and $28.2 million, respectively.
During 2025, 36,802 performance-based LTIP unit awards (at target) were granted to certain executive officers and key employees. The vesting of performance-based LTIP unit awards is dependent upon meeting certain market conditions over a three-year period from March 5, 2025 through March 4, 2028, with continued service-based vesting through the first quarter of 2030. These LTIP unit awards require relative achievement of the Company’s total shareholder return as compared to the weighted average total shareholder return of specified peer groups and can result in grantees earning from zero to a maximum of 73,604 LTIP units.
Among the 128,565 RSUs and LTIP units granted during 2024, 34,550 performance-based LTIP unit awards (at target) and 3,770 performance-based RSUs were granted to certain executive officers and key employees. The vesting of performance-based LTIP unit awards is dependent upon meeting certain market conditions over a three-year period from March 5, 2024 through March 4, 2027, with continued service-based vesting through the first quarter of 2029. These LTIP unit awards require relative achievement of the Company’s total shareholder return as compared to the weighted average total shareholder return of specified peer groups and can result in grantees earning from zero to a maximum of 69,100 LTIP units. The vesting of performance-based RSUs is dependent upon meeting certain operational performance targets in 2024 and continued service through 2028. These performance targets were met at 100% achievement.
During 2023, 37,211 RSUs were awarded where vesting is dependent upon meeting certain market conditions over a three-year period from March 15, 2023 through March 14, 2026, with continued service-based vesting through the first quarter of 2028. These RSUs require relative achievement of the Company’s total shareholder return as compared to the weighted average total shareholder return of specified peer groups and can result in grantees earning up to 200% of the target RSUs originally granted. During 2024, we issued LTIP units in substitution for these outstanding RSUs. These targets were met at 130% achievement.
Remaining compensation cost related to RSUs and LTIP units outstanding at December 31, 2025 totals approximately $64.0 million and is expected to be recognized over the next three years on average. The following tables set forth relevant information with respect to restricted shares:
F-27
PUBLIC STORAGE
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2025
| Service-Based | Performance-Based (a) | Total | |||||||||||||||||||||||||||||||||
| Number of Awards | Weighted-Average Grant-Date Fair Value | Number of Awards | Weighted-Average Grant-Date Fair Value | Number of Awards | Weighted-Average Grant-Date Fair Value | ||||||||||||||||||||||||||||||
| Unvested awards outstanding January 1, 2023 | 407,812 | $ | 258.34 | 68,235 | $ | 336.33 | 476,047 | $ | 269.52 | ||||||||||||||||||||||||||
| Granted | 77,974 | 296.19 | 37,211 | 295.61 | 115,185 | 296.01 | |||||||||||||||||||||||||||||
| Vested | (132,909) | (245.19) | (9,250) | (275.12) | (142,159) | (247.13) | |||||||||||||||||||||||||||||
| Forfeited | (30,229) | (266.60) | (2,183) | (300.86) | (32,412) | (268.91) | |||||||||||||||||||||||||||||
| Unvested awards outstanding December 31, 2023 | 322,648 | $ | 272.14 | 94,013 | $ | 327.06 | 416,661 | $ | 284.53 | ||||||||||||||||||||||||||
| Granted (b) | 83,651 | 308.24 | 44,914 | 228.68 | 128,565 | 280.45 | |||||||||||||||||||||||||||||
| Vested | (130,321) | (259.20) | (10,004) | (275.12) | (140,325) | (260.33) | |||||||||||||||||||||||||||||
| Forfeited | (18,104) | (286.93) | (866) | (300.86) | (18,970) | (287.57) | |||||||||||||||||||||||||||||
| Unvested awards outstanding December 31, 2024 | 257,874 | $ | 289.35 | 128,057 | $ | 296.79 | 385,931 | $ | 291.82 | ||||||||||||||||||||||||||
| Granted | 74,479 | 262.47 | 36,802 | 293.08 | 111,281 | 272.59 | |||||||||||||||||||||||||||||
| Vested | (104,560) | (274.02) | (27,148) | (350.21) | (131,708) | (289.73) | |||||||||||||||||||||||||||||
| Forfeited | (16,603) | (297.39) | — | — | (16,603) | (297.39) | |||||||||||||||||||||||||||||
| Unvested awards outstanding December 31, 2025 | 211,190 | $ | 286.83 | 137,711 | $ | 285.27 | 348,901 | $ | 286.21 |
| 2025 | 2024 | 2023 | ||||||||||||||||||
| Amounts for the year: | (Dollar Amounts in Thousands) | |||||||||||||||||||
| Fair value of vested shares and vested LTIP units on vesting date | $ | 36,864 | $ | 41,848 | $ | 41,999 | ||||||||||||||
| Cash paid for taxes upon vesting in lieu of issuing common shares | $ | 8,646 | $ | 12,667 | $ | 13,950 | ||||||||||||||
| Common shares issued upon vesting | 50,016 | 63,840 | 96,657 | |||||||||||||||||
| Vested LTIP units issued upon vesting | 54,136 | 40,396 | — | |||||||||||||||||
| Average assumptions used in valuing restricted share units with market conditions with the Monte-Carlo simulation method: | ||||||||||||||||||||
| Time from the valuation date to the end of the Performance Period | 3 | 3 | 3 | |||||||||||||||||
| Risk-free interest rate | 4.0% | 4.2% | 3.8% | |||||||||||||||||
| Expected volatility, based upon historical volatility | 24.9% | 23.8% | 28.2% | |||||||||||||||||
| Expected dividend yield | 3.8% | 4.3% | 4.1% |
(a)Number of performance-based awards are presented based on the target performance pursuant to the terms of each applicable award when granted and adjusted to the actual number of awards earned based on the actual performance.
(b)Amount granted for performance-based awards includes 6,594 LTIP units for payout adjustments based on Total Shareholder Return modifier for awards granted in 2022.
Stock Options and AO LTIP Units
We have service-based and performance-based stock options and AO LTIP units outstanding. Performance-based stock options and AO LTIP units vest upon meeting certain performance conditions or market conditions. Stock options and AO LTIP units generally vest over 1 to 5 years, expire 10 years after the grant date, and have an exercise or conversion price equal to the closing trading price of our common shares on the grant date. Common shares of the Company are issued for options exercised and vested LTIP units are issued for AO LTIP units converted. Employees cannot require the Company to settle their awards in cash.
For the years ended December 31, 2025, 2024, and 2023, we incurred share-based compensation cost for outstanding stock options of $10.6 million, $12.7 million and $14.9 million, respectively.
F-28
PUBLIC STORAGE
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2025
During 2025, 103,839 of service-based AO LTIP units, 61,388 of performance-based AO LTIP units (at target), and 3,177 service-based options were granted to certain executive officers and trustees. The vesting of the performance-based AO LTIP units is dependent upon meeting certain market conditions over a three-year period from March 5, 2025 through March 4, 2028, with continued service-based vesting through the first quarter of 2030. These performance-based AO LTIP units require relative achievement of the Company’s total shareholder return as compared to the weighted average total shareholder return of specified peer groups and can result in grantees earning from zero to a maximum of 122,776 AO LTIP units.
During 2024, we granted 106,484 of service-based AO LTIP units, 63,717 of performance-based AO LTIP units, and 3,600 service-based options to certain executive officers and trustees. The vesting of the performance-based AO LTIP units is dependent upon meeting certain market conditions over a three-year period from March 5, 2024 through March 4, 2027, with continued service-based vesting through the first quarter of 2029. These performance-based AO LTIP units require relative achievement of the Company’s total shareholder return as compared to the weighted average total shareholder return of specified peer groups and can result in grantees earning from zero to a maximum of 127,434 AO LTIP units.
During 2023, we granted 60,000 stock options in connection with non-management trustee compensation. 117,168 stock options were awarded during 2023 where vesting is dependent upon meeting certain market conditions over the three-year period from March 15, 2023 through March 14, 2026, with continued service-based vesting through the first quarter of 2028. These stock options require relative achievement of the Company’s total shareholder return as compared to the weighted average total shareholder return of specified peer groups and can result in grantees earning up to 200% of the target options originally granted. During 2024, we issued AO LTIP units in substitution for these stock options.
The stock options and AO LTIP units outstanding at December 31, 2025 have an aggregate intrinsic value (the excess, if any, of each option’s market value over the exercise price) of approximately $73.2 million and remaining average contractual lives of approximately four years. Total compensation cost related to unvested AO LTIP units and stock options that have not yet been recognized is $10.1 million and are expected to be recognized as compensation cost over approximately two years on average. Exercisable stock options and convertible AO LTIP units have an aggregate intrinsic value of approximately $70.4 million at December 31, 2025 and remaining average contractual lives of approximately four years.
F-29
PUBLIC STORAGE
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2025
Additional information with respect to stock options and AO LTIP units during 2025, 2024, and 2023 is as follows:
| Service-Based | Performance-Based (a) | Total | |||||||||||||||||||||||||||||||||
| Number of Awards | Weighted Average Exercise or Conversion Price per Award | Number of Awards | Weighted Average Exercise or Conversion Price per Award | Number of Awards | Weighted Average Exercise or Conversion Price per Award | ||||||||||||||||||||||||||||||
| Awards outstanding January 1, 2023 | 1,854,041 | $ | 209.53 | 1,310,442 | $ | 229.39 | 3,164,483 | $ | 217.75 | ||||||||||||||||||||||||||
| Granted (b) | 60,000 | 286.81 | 180,425 | 265.46 | 240,425 | 270.79 | |||||||||||||||||||||||||||||
| Exercised | (272,250) | (167.15) | (34,401) | (221.68) | (306,651) | (173.26) | |||||||||||||||||||||||||||||
| Cancelled | (12,049) | (293.81) | (34,987) | (229.34) | (47,036) | (245.86) | |||||||||||||||||||||||||||||
| Awards outstanding December 31, 2023 | 1,629,742 | $ | 218.83 | 1,421,479 | $ | 234.16 | 3,051,221 | $ | 225.97 | ||||||||||||||||||||||||||
| Granted (c) | 110,084 | 278.82 | 87,782 | 297.12 | 197,866 | 286.94 | |||||||||||||||||||||||||||||
| Exercised or converted (d) | (381,850) | (194.09) | (301,498) | (221.83) | (683,348) | (206.33) | |||||||||||||||||||||||||||||
| Cancelled | (10,110) | (320.69) | (5,164) | (221.68) | (15,274) | (287.21) | |||||||||||||||||||||||||||||
| Awards outstanding December 31, 2024 | 1,347,866 | $ | 229.98 | 1,202,599 | 241.90 | 2,550,465 | $ | 235.60 | |||||||||||||||||||||||||||
| Granted | 107,016 | 305.46 | 61,388 | 311.30 | 168,404 | 307.59 | |||||||||||||||||||||||||||||
| Exercised or converted (e) | (223,705) | (209.97) | (34,538) | (221.68) | (258,243) | (211.54) | |||||||||||||||||||||||||||||
| Cancelled | (6,884) | (386.32) | — | — | (6,884) | (386.32) | |||||||||||||||||||||||||||||
| Awards outstanding December 31, 2025 | 1,224,293 | $ | 239.35 | 1,229,449 | $ | 245.93 | 2,453,742 | $ | 242.65 | ||||||||||||||||||||||||||
| Awards exercisable or convertible at December 31, 2025 | 1,049,184 | $ | 229.89 | 873,551 | $ | 230.71 | 1,922,735 | $ | 230.26 |
(a)Number of performance-based awards are presented based on the target performance pursuant to the terms of each applicable award when granted and adjusted to the actual number of awards earned based on the actual performance.
(b)Amount granted for performance-based stock options includes 63,257 options for payout adjustments based on Total Shareholder Return modifier for options granted in 2021.
(c)Amount granted for performance-based awards includes 24,065 AO LTIP units for payout adjustments based on Total Shareholder Return for awards granted in 2022.
(d)214,996 common shares were issued upon the exercise of stock options and 186,944 vested LTIP units were issued upon conversion of 468,352 AO LTIP units in the year ended December 31, 2024.
(e)41,367 common shares were issued upon the exercise of stock options and 66,936 vested LTIP units were issued upon conversion of 216,876 AO LTIP units in the year ended December 31, 2025.
F-30
PUBLIC STORAGE
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2025
| 2025 | 2024 | 2023 | ||||||||||||||||||
| Aggregate exercise date intrinsic value of options and AO LTIP units exercised or converted during the year (in 000's) | $ | 15,091 | $ | 85,833 | $ | 35,662 | ||||||||||||||
| Average assumptions used in valuing options and AO LTIP units with the Black-Scholes method: | ||||||||||||||||||||
| Expected life of options in years, based upon historical experience | 6 | 6 | 6 | |||||||||||||||||
| Risk-free interest rate | 4.1% | 4.2% | 3.5% | |||||||||||||||||
| Expected volatility, based upon historical volatility | 25.1% | 24.4% | 24.4% | |||||||||||||||||
| Expected dividend yield | 3.9% | 4.3% | 4.2% | |||||||||||||||||
| Average assumptions used in valuing options and AO LTIP units with market conditions with the Monte-Carlo simulation method: | ||||||||||||||||||||
| Expected life of options in years, based upon historical experience | 7 | 7 | 7 | |||||||||||||||||
| Risk-free interest rate | 4.1% | 4.1% | 3.5% | |||||||||||||||||
| Expected volatility, based upon historical volatility | 24.7% | 24.1% | 23.8% | |||||||||||||||||
| Expected dividend yield | 3.8% | 4.3% | 4.1% | |||||||||||||||||
| Average estimated value of options and AO LTIP Units granted during the year | $ | 61.73 | $ | 51.33 | $ | 56.86 |
Trustee Deferral Program
Non-management trustees may elect to receive all or a portion of their cash retainers in cash, unrestricted common shares, fully-vested LTIP units, or DSUs to be settled at a specified future date. Unrestricted common shares and/or LTIP units and DSUs will be granted to the non-management trustee on the last day of each calendar quarter based on the cash retainer earned for that quarter and converted into a number of shares or units based on the applicable closing price of our common shares on such date. During 2025, we granted 2,112 fully vested LTIP units, 790 DSUs, and 467 unrestricted common shares. During 2025, 602 previously granted DSUs were settled in common shares. A total of 11,674 DSUs were outstanding at December 31, 2025 (11,486 at December 31, 2024).
F-31
PUBLIC STORAGE
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2025
- Net Income per Common Share
We allocate net income to (i) noncontrolling interests based upon their contractual rights in the respective subsidiaries or for participating noncontrolling interests based upon their participation in both distributed and undistributed earnings of the Company, (ii) preferred shareholders, for distributions paid or payable, (iii) preferred shareholders, to the extent redemption cost exceeds the related original net issuance proceeds (a “preferred share redemption charge”), and (iv) RSUs and unvested LTIP units, for non-forfeitable dividends and distributions paid and adjusted for participation rights in undistributed earnings of the Company.
We calculate basic and diluted net income per common share based upon net income allocable to common shareholders, divided by (i) weighted average common shares for basic net income per common share, and (ii) weighted average common shares adjusted for the impact of dilutive stock options and AO LTIP units outstanding for diluted net income per common share. Stock options and AO LTIP units equivalent to 572,130 common shares were excluded from the computation of diluted earnings per share for 2025, as compared to 138,739 common shares for 2024, because their effect would have been antidilutive.
The following table reconciles the numerators and denominators of the basic and diluted net income per common shares computation for the years ended December 31, 2025, 2024, and 2023, respectively:
| Year Ended December 31, | |||||||||||||||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||||||||||||||
| (Amounts in thousands, except per share data) | |||||||||||||||||||||||||||||
| Numerator for basic and dilutive net income per common share – net income allocable to common shareholders | $ | 1,585,585 | $ | 1,872,685 | $ | 1,948,741 | |||||||||||||||||||||||
| Denominator for basic net income per share - weighted average common shares outstanding | 175,447 | 175,351 | 175,472 | ||||||||||||||||||||||||||
| Net effect of dilutive stock options and AO LTIP units - based on treasury stock method | 455 | 687 | 671 | ||||||||||||||||||||||||||
| Denominator for dilutive net income per share - weighted average common shares outstanding | 175,902 | 176,038 | 176,143 | ||||||||||||||||||||||||||
| Net income per common share: | |||||||||||||||||||||||||||||
| Basic | $ | 9.04 | $ | 10.68 | $ | 11.11 | |||||||||||||||||||||||
| Dilutive | $ | 9.01 | $ | 10.64 | $ | 11.06 |
F-32
PUBLIC STORAGE
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2025
- Income Taxes
As a REIT, the Company is generally not subject to U.S. federal income tax with respect to that portion of its income which is distributed annually to its stockholders. However, the Company has elected to treat certain of its corporate subsidiaries as a TRS. In general, a TRS may perform additional services for tenants and generally may engage in any real estate or non-real estate related business. A TRS is subject to U.S. federal corporate income tax and may be subject to state and local income taxes.
The following is a reconciliation of the statutory federal income tax rate to the Company’s effective tax rate for the years ended December 31, 2025, 2024 and 2023, respectively:
| Year Ended December 31, | ||||||||||||||||||||||||||
| 2025 | 2024 | 2023 | ||||||||||||||||||||||||
| Amount | Percent | Amount | Percent | Amount | Percent | |||||||||||||||||||||
| (Dollar Amounts in Thousands) | ||||||||||||||||||||||||||
| Expected tax expense at statutory rate | $ | 375,859 | 21.0 | % | $ | 438,707 | 21.0 | % | $ | 455,898 | 21.0 | % | ||||||||||||||
| State and local income taxes(a) | 6,946 | 0.4 | % | 2,689 | 0.1 | % | 7,871 | 0.4 | % | |||||||||||||||||
| Foreign tax expense(b) | 1,776 | 0.1 | % | 1,564 | 0.1 | % | 476 | — | % | |||||||||||||||||
| Tax Credits | (16,585) | (0.9) | % | (17,774) | (0.9) | % | (8,639) | (0.4) | % | |||||||||||||||||
| Changes in Valuation Allowance(c) | 8,669 | 0.5 | % | 24,353 | 1.2 | % | 14,631 | 0.7 | % | |||||||||||||||||
| Nontaxable or nondeductible items: | ||||||||||||||||||||||||||
| Nontaxable REIT income | (373,557) | (20.9) | % | (438,739) | (21.0) | % | (451,640) | (20.8) | % | |||||||||||||||||
| Other | (10,336) | (0.6) | % | (6,131) | (0.3) | % | (7,776) | (0.4) | % | |||||||||||||||||
| Income tax provision (benefit) and effective tax rate | $ | (7,228) | (0.4) | % | $ | 4,669 | 0.2 | % | $ | 10,821 | 0.5 | % |
(a) State taxes in Texas made up the majority (greater than 50 percent) of the tax effect in this category
(b) Foreign tax expense related to Shurgard’s operations in the United Kingdom (c) Includes $15.8 million related to the reversal of valuation allowance on sale of solar tax credits during the year ended December 31, 2025.
- Segment Information
Our operating segments reflect the significant components of our operations where discrete financial information is evaluated separately by our President and Chief Executive Officer, who is our chief operating decision maker (“CODM”). Segment asset information is not used by the CODM to assess performance or allocate resources.
Self-Storage Operations
The Self-Storage Operations reportable segment reflects the aggregated rental operations from the self-storage facilities we own through the following operating segments: (i) Same Store Facilities, (ii) Acquired Facilities, (iii) Newly Developed and Expanded Facilities, and (iv) Other Non-Same Store Facilities. Our CODM evaluates performance and allocates resources for the Self-Storage Operations reportable segment based on its Net Operating Income (“NOI”), which represents the related revenue less cost of operations. Our CODM utilizes NOI during the budget and forecasting process to allocate capital and personnel resources and evaluates financial performance and operating trends of the reportable segment based on the budget-to-actual variance and year-over-year change of the NOI on an ongoing basis.
The presentation in the table below sets forth the revenue, significant expense categories, and NOI of this reportable segment, as well as the related depreciation expense. For all periods presented, substantially all of our real estate facilities, goodwill and other intangible assets, other assets, and accrued and other liabilities are associated with the Self-Storage Operations reportable segment.
Ancillary Operations
Ancillary Operations reflects the combined operations of our tenant reinsurance, merchandise sales, and third party property management operating segments.
F-33
PUBLIC STORAGE
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2025
Presentation of Segment Information
The following table reconciles NOI and net income attributable to our reportable segment to our consolidated net income:
| Year Ended December 31, | |||||||||||||||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||||||||||||||
| (Amounts in thousands) | |||||||||||||||||||||||||||||
| Self-Storage Operations Reportable Segment | |||||||||||||||||||||||||||||
| Revenue | $ | 4,489,413 | $ | 4,395,993 | $ | 4,259,613 | |||||||||||||||||||||||
| Cost of operations: | |||||||||||||||||||||||||||||
| Property taxes | (480,793) | (451,992) | (411,323) | ||||||||||||||||||||||||||
| On-site property manager payroll | (162,942) | (167,258) | (164,405) | ||||||||||||||||||||||||||
| Repairs and maintenance | (98,140) | (93,763) | (83,429) | ||||||||||||||||||||||||||
| Utilities | (65,517) | (63,611) | (62,462) | ||||||||||||||||||||||||||
| Marketing | (103,340) | (106,414) | (90,717) | ||||||||||||||||||||||||||
| Other direct property costs | (123,239) | (122,119) | (114,879) | ||||||||||||||||||||||||||
| Indirect cost of operations (a): | (143,067) | (131,563) | (134,735) | ||||||||||||||||||||||||||
| Total cost of operations | (1,177,038) | (1,136,720) | (1,061,950) | ||||||||||||||||||||||||||
| Net operating income | 3,312,375 | 3,259,273 | 3,197,663 | ||||||||||||||||||||||||||
| Depreciation and amortization | (1,151,840) | (1,129,766) | (970,056) | ||||||||||||||||||||||||||
| Net income | 2,160,535 | 2,129,507 | 2,227,607 | ||||||||||||||||||||||||||
| Ancillary Operations | |||||||||||||||||||||||||||||
| Revenue | 334,700 | 299,623 | 258,077 | ||||||||||||||||||||||||||
| Cost of operations | (132,937) | (121,281) | (85,996) | ||||||||||||||||||||||||||
| Net operating income | 201,763 | 178,342 | 172,081 | ||||||||||||||||||||||||||
| Total net income allocated to segments | 2,362,298 | 2,307,849 | 2,399,688 | ||||||||||||||||||||||||||
| Other items not allocated to segments: | |||||||||||||||||||||||||||||
| Real estate acquisition and development expense | (19,550) | (15,506) | (26,451) | ||||||||||||||||||||||||||
| General and administrative | (106,682) | (106,677) | (80,632) | ||||||||||||||||||||||||||
| Interest and other income | 63,099 | 67,212 | 85,590 | ||||||||||||||||||||||||||
| Interest expense | (304,495) | (287,401) | (201,132) | ||||||||||||||||||||||||||
| Equity in earnings of unconsolidated real estate entity | 9,604 | 19,821 | 27,897 | ||||||||||||||||||||||||||
| Foreign currency exchange gain (loss) | (215,583) | 102,244 | (51,197) | ||||||||||||||||||||||||||
| Gain on sale of real estate | 1,113 | 1,537 | 17,178 | ||||||||||||||||||||||||||
| Income tax (provision) benefit | 7,228 | (4,669) | (10,821) | ||||||||||||||||||||||||||
| Net income | $ | 1,797,032 | $ | 2,084,410 | $ | 2,160,120 |
(a) Indirect cost of operations are comprised of supervisory payroll, centralized management costs, and share-based compensation
F-34
PUBLIC STORAGE
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2025
- Commitments and Contingencies
Contingent Losses
We are a party to various legal proceedings and subject to various claims and complaints; however, we believe that the likelihood of these contingencies resulting in a material loss to the Company, either individually or in the aggregate, is remote.
Insurance and Loss Exposure
We maintain comprehensive property and casualty insurance policies which include coverage for earthquake, rental loss, general liability, umbrella liability, management liability, employee medical insurance and workers compensation coverage through internationally recognized and highly rated insurance carriers, subject to deductibles.
We reinsure a program that provides insurance to our customers from an independent third-party insurer. This program covers customer claims for losses to goods stored at our facilities as a result of specific named perils (earthquakes are not covered by this program), up to a maximum limit of $5,000 per storage unit. We reinsure all risks in this program, but purchase excess insurance to cover this exposure for a limit of $15.0 million for losses in excess of $10.0 million per occurrence. We are subject to licensing requirements and regulations in all states. Customers participate in the program at their option. At December 31, 2025, there were approximately 1.5 million certificates held by self-storage customers under the program, representing aggregate coverage of approximately $7.2 billion.
Commitments
We have construction commitments representing future expected payments for construction under contract totaling $169.4 million at December 31, 2025. We expect to pay approximately $155.3 million in 2026 and $14.1 million in 2027 for these construction commitments.
We have future contractual payments on land, equipment and office space under various lease commitments totaling $65.5 million at December 31, 2025. We expect to pay approximately $4.8 million in 2026, $4.5 million in 2027, $2.9 million in each of 2028 and 2029, $2.7 million in 2030, and $47.7 million thereafter for these commitments.
We have unfunded capital commitments related to our private equity investments totaling $48.2 million at December 31, 2025. We have unfunded loan commitments totaling $43.9 million at December 31, 2025. We expect to fund the loans in 2026, subject to the satisfaction of certain conditions.
- Corporate Transformation Costs
We have launched a corporate transformation initiative focused on modernization and growth. This includes streamlining our processes through technology and shifting our geographic footprint with a stronger corporate presence in offshore locations and relocation of our principal office from California to Texas. The initiative is intended to transform our corporate functions, improving efficiency and productivity.
Corporate transformation costs of approximately $4.9 million were incurred for the year ended December 31, 2025.
Corporate transformation costs are a component of general and administrative expense in the Consolidated Statements of Income. The following table presents changes in accrued corporate transformation costs and cumulative costs incurred to date:
| Year Ended December 31, 2025 | ||||||||||||||||||||||||||
| Severance and Retention | Recruitment and Relocation | Other | Total | |||||||||||||||||||||||
| (Amounts in thousands) | ||||||||||||||||||||||||||
| Balances at December 31, 2024 | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
| Costs | 2,359 | 2,022 | 494 | 4,875 | ||||||||||||||||||||||
| Cash payments | (1,405) | (2,022) | (494) | (3,921) | ||||||||||||||||||||||
| Balances at December 31, 2025 | $ | 954 | $ | — | $ | — | $ | 954 | ||||||||||||||||||
F-35
PUBLIC STORAGE
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2025
- Subsequent Events
On February 12, 2026, the Company announced that Joseph D. Russell, Jr., President, Chief Executive Officer, and a trustee of the Board, notified the Board of his decision to retire from all of his positions effective as of March 31, 2026 (the “Retirement Date”). Subsequent to the Retirement Date, Mr. Russell will provide consulting services to the Company through March 31, 2027 under a retirement and transition agreement pursuant to which he will receive monthly consulting fees equal to $400,000.
The Company also announced the Board’s appointment of H. Thomas Boyle, who currently serves as the Company’s Senior Vice President, Chief Financial Officer and Chief Investment Officer, as Chief Executive Officer and trustee to succeed Mr. Russell effective April 1, 2026. In connection with his appointment as CEO, Mr. Boyle’s annual base salary was increased to $1.0 million (effective as of April 1, 2026), his 2026 target annual performance-based bonus was increased to 200% of his base salary, and the aggregate target value of his 2026 annual equity award is $10.0 million. Additionally, in connection with his promotion, Mr. Boyle was granted a time-based AO LTIP Unit award in the Company’s Operating Partnership, with a grant date fair value of $10.0 million. The AO LTIP Unit award has a conversion price of $350 per unit and vests over eight years, with 60% of the award vesting on the sixth anniversary of the grant date and the remaining 40% vesting ratably over the following two years.
The Company further announced the Board’s appointment of Joseph D. Fisher as the Company’s President and Chief Financial Officer effective February 16, 2026. Mr. Fisher has been serving as a consultant for the Company since January 2026 and was previously President, Chief Financial Officer, and Chief Investment Officer at UDR, Inc. Mr. Fisher will participate in the Company’s executive compensation program. He will receive an initial annual base salary of $600,000, he will be eligible to receive a 2026 annual performance-based cash incentive award with a target annual bonus potential of $1.4 million, and a 2026 annual equity award with an aggregate target value of $4.0 million. Additionally, in connection with his appointment, Mr. Fisher was granted a time-based AO LTIP Unit award in the Company’s Operating Partnership, with a grant date fair value of $3.0 million. The AO LTIP Unit award has a conversion price of $350 per unit and vests over eight years, with 60% of the award vesting on the sixth anniversary of the grant date and the remaining 40% vesting ratably over the following two years.
On February 10, 2026, the Board appointed Shankh S. Mitra, an independent trustee of the Company, to succeed Ronald L. Havner as the Chairman of the Board, effective as of April 1, 2026. In connection with this transition, the Company entered into agreements to sell to Mr. Mitra and Mr. Havner non-qualified options (“OP Options”) to purchase common units of the Operating Partnership for an aggregate purchase price of $25.0 million and $5.0 million, respectively. The purchase price was based on the Company’s determination of the fair value of the OP Options using a Monte Carlo Valuation simulation prepared by a third-party valuation firm. The OP Options have an exercise price of $350 per unit, will become exercisable upon the sixth anniversary of the settlement date, and have a 10-year term. The transactions, which are expected to settle on or before February 20, 2026, were approved by the Audit Committee and the Board of Trustees in accordance with the Company’s policies.
On February 10, 2026, the Board approved a change in the Company’s principal office from Glendale, California, to Frisco, Texas, effective immediately.
Subsequent to December 31, 2025, we acquired or were under contract to acquire three self-storage facilities across three states with 0.2 million net rentable square feet for $20.7 million.
F-36
PUBLIC STORAGE
SCHEDULE III - REAL ESTATE
AND ACCUMULATED DEPRECIATION
(Amounts in thousands, except number of properties)
| Initial Cost | Gross Carrying Amount At December 31, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Description | No. of Facilities | Net Rentable Square Feet | 2025 Encumbrances | Land | Buildings & Improvements | Costs Subsequent to Acquisition | Land | Buildings | Total | Accumulated Depreciation | |||||||||||||||||||||||||||||||||||||||||||||||||
| Self-storage facilities by market: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Los Angeles | 233 | 17,941 | $ | 187 | $ | 585,848 | $ | 1,134,751 | $ | 687,867 | $ | 596,216 | $ | 1,812,250 | $ | 2,408,466 | $ | 1,130,816 | |||||||||||||||||||||||||||||||||||||||||
| Dallas/Ft. Worth | 221 | 19,992 | — | 385,801 | 2,278,224 | 312,713 | 388,232 | 2,588,506 | 2,976,738 | 748,150 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Houston | 174 | 14,587 | — | 289,007 | 963,575 | 360,489 | 288,329 | 1,324,742 | 1,613,071 | 534,986 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Chicago | 145 | 9,403 | — | 158,287 | 530,281 | 222,108 | 161,124 | 749,552 | 910,676 | 505,451 | |||||||||||||||||||||||||||||||||||||||||||||||||
| San Francisco | 142 | 9,496 | — | 248,501 | 570,134 | 384,278 | 265,895 | 937,018 | 1,202,913 | 660,441 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Atlanta | 122 | 8,182 | 1,389 | 168,081 | 482,923 | 150,784 | 168,444 | 633,344 | 801,788 | 381,481 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Washington DC | 119 | 8,443 | — | 423,176 | 1,329,933 | 239,540 | 438,682 | 1,553,967 | 1,992,649 | 635,368 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Orlando/Daytona | 117 | 6,928 | — | 187,890 | 652,931 | 118,690 | 193,296 | 766,215 | 959,511 | 278,476 | |||||||||||||||||||||||||||||||||||||||||||||||||
| New York | 108 | 8,209 | — | 316,900 | 768,161 | 409,256 | 323,538 | 1,170,779 | 1,494,317 | 687,481 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Miami | 104 | 7,969 | — | 283,795 | 631,694 | 214,574 | 285,688 | 844,375 | 1,130,063 | 497,026 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Seattle/Tacoma | 102 | 7,402 | — | 246,108 | 634,810 | 233,019 | 249,239 | 864,698 | 1,113,937 | 529,836 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Denver | 76 | 5,606 | — | 125,358 | 362,010 | 137,085 | 125,851 | 498,602 | 624,453 | 243,877 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Tampa | 76 | 5,288 | — | 126,757 | 450,309 | 110,350 | 130,071 | 557,345 | 687,416 | 218,135 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Philadelphia | 72 | 4,883 | — | 75,325 | 341,298 | 104,459 | 74,346 | 446,736 | 521,082 | 238,242 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Minneapolis/St. Paul | 68 | 5,533 | — | 128,142 | 332,631 | 160,591 | 131,695 | 489,669 | 621,364 | 235,534 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Charlotte | 62 | 4,760 | — | 89,937 | 250,135 | 115,134 | 97,800 | 357,406 | 455,206 | 207,708 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Detroit | 54 | 3,961 | — | 77,077 | 289,354 | 95,458 | 78,484 | 383,405 | 461,889 | 189,273 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Phoenix | 53 | 3,889 | — | 108,051 | 367,874 | 74,946 | 108,042 | 442,829 | 550,871 | 195,300 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Baltimore | 52 | 4,109 | — | 142,206 | 798,014 | 85,384 | 143,430 | 882,174 | 1,025,604 | 240,590 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Portland | 51 | 3,078 | — | 65,802 | 233,930 | 58,237 | 66,460 | 291,509 | 357,969 | 165,514 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Oklahoma City | 51 | 3,712 | — | 70,646 | 328,653 | 38,730 | 70,646 | 367,383 | 438,029 | 82,258 | |||||||||||||||||||||||||||||||||||||||||||||||||
| West Palm Beach | 49 | 3,960 | — | 162,675 | 246,483 | 135,017 | 163,623 | 380,552 | 544,175 | 210,124 | |||||||||||||||||||||||||||||||||||||||||||||||||
| San Antonio | 42 | 3,045 | — | 58,753 | 250,276 | 48,529 | 58,711 | 298,847 | 357,558 | 120,781 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Raleigh | 41 | 2,988 | — | 94,345 | 247,524 | 59,558 | 95,314 | 306,113 | 401,427 | 120,796 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Austin | 40 | 3,128 | — | 73,198 | 224,069 | 66,215 | 75,720 | 287,762 | 363,482 | 143,275 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Sacramento | 38 | 2,291 | — | 34,758 | 115,143 | 48,496 | 35,242 | 163,155 | 198,397 | 108,401 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Columbia | 38 | 2,408 | — | 46,809 | 188,845 | 37,781 | 47,569 | 225,866 | 273,435 | 71,903 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Norfolk | 37 | 2,218 | — | 48,750 | 131,950 | 39,880 | 48,189 | 172,391 | 220,580 | 104,354 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Indianapolis | 37 | 2,440 | — | 46,160 | 171,251 | 33,510 | 47,160 | 203,761 | 250,921 | 84,753 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Columbus | 32 | 2,431 | — | 55,843 | 143,208 | 43,410 | 55,950 | 186,511 | 242,461 | 77,079 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Kansas City | 31 | 2,116 | — | 20,212 | 114,080 | 64,111 | 20,412 | 177,991 | 198,403 | 87,052 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Boston | 30 | 2,079 | — | 86,790 | 230,427 | 47,541 | 87,356 | 277,402 | 364,758 | 161,041 | |||||||||||||||||||||||||||||||||||||||||||||||||
| St. Louis | 27 | 1,738 | — | 22,546 | 85,838 | 50,631 | 24,295 | 134,720 | 159,015 | 86,864 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Las Vegas | 27 | 1,989 | — | 35,047 | 148,111 | 57,543 | 37,758 | 202,943 | 240,701 | 79,837 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Nashville/Bowling Green | 26 | 1,753 | — | 49,172 | 142,351 | 42,585 | 49,170 | 184,938 | 234,108 | 53,973 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Mobile | 25 | 1,491 | — | 31,428 | 141,135 | 17,589 | 31,255 | 158,897 | 190,152 | 32,106 |
F-37
PUBLIC STORAGE
SCHEDULE III - REAL ESTATE
AND ACCUMULATED DEPRECIATION
(Amounts in thousands, except number of properties)
| Initial Cost | Gross Carrying Amount At December 31, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Description | No. of Facilities | Net Rentable Square Feet | 2025 Encumbrances | Land | Buildings & Improvements | Costs Subsequent to Acquisition | Land | Buildings | Total | Accumulated Depreciation | |||||||||||||||||||||||||||||||||||||||||||||||||
| San Diego | 24 | 2,336 | — | 89,782 | 162,043 | 80,472 | 92,292 | 240,005 | 332,297 | 143,295 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Cincinnati | 22 | 1,439 | — | 21,126 | 79,210 | 33,306 | 21,044 | 112,598 | 133,642 | 50,828 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Memphis | 22 | 1,413 | — | 27,627 | 167,899 | 21,529 | 28,980 | 188,075 | 217,055 | 45,752 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Greensville/Spartanburg/Asheville | 18 | 1,112 | — | 14,689 | 79,866 | 20,378 | 15,605 | 99,328 | 114,933 | 36,704 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Colorado Springs | 17 | 1,164 | — | 13,667 | 64,569 | 30,286 | 13,664 | 94,858 | 108,522 | 45,570 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Charleston | 17 | 1,249 | — | 29,099 | 90,950 | 28,596 | 30,075 | 118,570 | 148,645 | 45,010 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Fort Myers/Naples | 17 | 1,335 | — | 36,676 | 121,930 | 29,170 | 36,355 | 151,421 | 187,776 | 45,150 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Milwaukee | 16 | 1,054 | — | 13,981 | 42,149 | 17,445 | 13,950 | 59,625 | 73,575 | 42,075 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Louisville | 16 | 957 | — | 24,868 | 50,185 | 14,310 | 24,867 | 64,496 | 89,363 | 29,751 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Richmond | 16 | 810 | — | 21,121 | 56,202 | 12,231 | 20,926 | 68,628 | 89,554 | 33,807 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Jacksonville | 15 | 909 | — | 14,454 | 47,415 | 19,250 | 14,503 | 66,616 | 81,119 | 45,450 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Birmingham | 15 | 607 | — | 6,316 | 25,567 | 22,215 | 6,204 | 47,894 | 54,098 | 35,892 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Greensboro | 15 | 917 | — | 15,590 | 43,181 | 22,676 | 17,679 | 63,768 | 81,447 | 39,591 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Chattanooga | 15 | 1,009 | — | 14,443 | 58,722 | 13,990 | 14,245 | 72,910 | 87,155 | 26,707 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Savannah | 14 | 873 | — | 38,343 | 63,263 | 10,889 | 37,015 | 75,480 | 112,495 | 31,649 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Boise | 14 | 1,488 | — | 44,378 | 130,087 | 3,499 | 44,378 | 133,586 | 177,964 | 15,277 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Honolulu | 13 | 994 | — | 77,115 | 161,335 | 25,594 | 78,033 | 186,011 | 264,044 | 99,429 | |||||||||||||||||||||||||||||||||||||||||||||||||
| New Orleans | 13 | 921 | — | 14,749 | 76,863 | 17,035 | 14,917 | 93,730 | 108,647 | 42,838 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Salt Lake City | 13 | 786 | — | 20,454 | 41,607 | 9,767 | 20,103 | 51,725 | 71,828 | 23,046 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Hartford/New Haven | 11 | 693 | — | 6,778 | 19,959 | 30,438 | 8,443 | 48,732 | 57,175 | 40,710 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Omaha | 11 | 936 | — | 17,965 | 69,085 | 7,350 | 17,965 | 76,435 | 94,400 | 20,667 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Cleveland/Akron | 11 | 695 | — | 7,449 | 38,402 | 11,009 | 7,842 | 49,018 | 56,860 | 20,391 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Augusta | 11 | 666 | — | 11,892 | 43,128 | 7,182 | 11,892 | 50,310 | 62,202 | 14,924 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Buffalo/Rochester | 9 | 462 | — | 6,785 | 17,954 | 9,202 | 6,783 | 27,158 | 33,941 | 20,345 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Reno | 7 | 559 | — | 5,487 | 18,704 | 8,137 | 5,487 | 26,841 | 32,328 | 18,187 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Tucson | 7 | 439 | — | 9,403 | 25,491 | 9,999 | 9,884 | 35,009 | 44,893 | 28,261 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Wichita | 7 | 432 | — | 2,017 | 6,691 | 12,338 | 2,130 | 18,916 | 21,046 | 14,392 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Monterey/Salinas | 7 | 324 | — | 8,465 | 24,151 | 8,184 | 8,455 | 32,345 | 40,800 | 29,297 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Dayton | 6 | 360 | — | 1,700 | 14,039 | 6,874 | 1,699 | 20,914 | 22,613 | 9,916 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Roanoke | 6 | 369 | — | 7,824 | 35,719 | 2,625 | 7,824 | 38,344 | 46,168 | 7,963 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Evansville | 5 | 325 | — | 2,340 | 14,316 | 2,831 | 2,312 | 17,175 | 19,487 | 7,623 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Huntsville/Decatur | 5 | 298 | — | 9,161 | 13,481 | 5,204 | 9,108 | 18,738 | 27,846 | 9,330 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Providence | 5 | 284 | — | 3,813 | 30,716 | 5,694 | 3,813 | 36,410 | 40,223 | 11,202 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Lansing | 5 | 291 | — | 3,293 | 30,742 | 3,263 | 3,293 | 34,005 | 37,298 | 5,791 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Fort Wayne | 4 | 271 | — | 3,487 | 11,003 | 5,048 | 3,487 | 16,051 | 19,538 | 8,197 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Palm Springs | 3 | 241 | — | 8,309 | 18,065 | 3,657 | 8,309 | 21,722 | 30,031 | 16,501 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Rochester | 3 | 155 | — | 2,142 | 10,787 | 4,419 | 2,075 | 15,273 | 17,348 | 6,244 |
F-38
PUBLIC STORAGE
SCHEDULE III - REAL ESTATE
AND ACCUMULATED DEPRECIATION
(Amounts in thousands, except number of properties)
| Initial Cost | Gross Carrying Amount At December 31, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Description | No. of Facilities | Net Rentable Square Feet | 2025 Encumbrances | Land | Buildings & Improvements | Costs Subsequent to Acquisition | Land | Buildings | Total | Accumulated Depreciation | |||||||||||||||||||||||||||||||||||||||||||||||||
| Flint | 3 | 191 | — | 2,734 | 19,228 | 1,696 | 2,733 | 20,925 | 23,658 | 4,472 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Shreveport | 2 | 150 | — | 817 | 3,030 | 3,600 | 741 | 6,706 | 7,447 | 5,825 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Springfield/Holyoke | 2 | 144 | — | 1,428 | 3,380 | 2,813 | 1,427 | 6,194 | 7,621 | 5,690 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Santa Barbara | 2 | 98 | — | 5,733 | 9,106 | 1,296 | 5,733 | 10,402 | 16,135 | 8,235 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Topeka | 2 | 93 | — | 225 | 1,419 | 3,141 | 225 | 4,560 | 4,785 | 3,588 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Joplin | 1 | 56 | — | 264 | 904 | 1,475 | 264 | 2,379 | 2,643 | 1,906 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Syracuse | 1 | 55 | — | 545 | 1,279 | 1,584 | 545 | 2,863 | 3,408 | 2,436 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Modesto/Fresno/Stockton | 1 | 33 | — | 44 | 206 | 1,471 | 193 | 1,528 | 1,721 | 1,373 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Commercial and non-operating real estate | — | 12,307 | 19,892 | 152,699 | 11,343 | 173,555 | 184,898 | 118,485 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| 3,171 | 229,439 | $ | 1,576 | $ | 5,850,066 | $ | 18,376,236 | $ | 5,851,955 | $ | 5,952,072 | $ | 24,126,185 | $ | 30,078,257 | $ | 11,468,054 |
Note: Buildings and improvements are depreciated on a straight-line basis over estimated useful lives ranging generally between 5 to 40 years. In addition, disclosures of the number and square footage of our facilities are unaudited.
F-39
Previous: Item 14. Principal Accountant Fees and Services