Cover and table of contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended June 30, 2025

or

☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from ____________ to ____________.

Commission File Number: 001-33519

Public Storage

(Exact name of registrant as specified in its charter)

Maryland						93-2834996
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification Number)
701 Western Avenue, Glendale, California						91201-2349
(Address of principal executive offices)						(Zip Code)

Registrant’s telephone number, including area code: (818) 244-8080.

Former name, former address and former fiscal, if changed since last report: N/A

Securities registered pursuant to Section 12b of the Act:

Title of Class						Trading Symbol						Name of each exchange on which registered
Common Shares, $0.10 par value						PSA						New York Stock Exchange
Depositary Shares Each Representing 1/1,000 of a 5.150% Cum Pref Share, Series F, $0.01 par value						PSAPrF						New York Stock Exchange
Depositary Shares Each Representing 1/1,000 of a 5.050% Cum Pref Share, Series G, $0.01 par value						PSAPrG						New York Stock Exchange
Depositary Shares Each Representing 1/1,000 of a 5.600% Cum Pref Share, Series H, $0.01 par value						PSAPrH						New York Stock Exchange
Depositary Shares Each Representing 1/1,000 of a 4.875% Cum Pref Share, Series I, $0.01 par value						PSAPrI						New York Stock Exchange
Depositary Shares Each Representing 1/1,000 of a 4.700% Cum Pref Share, Series J, $0.01 par value						PSAPrJ						New York Stock Exchange
Depositary Shares Each Representing 1/1,000 of a 4.750% Cum Pref Share, Series K, $0.01 par value						PSAPrK						New York Stock Exchange
Depositary Shares Each Representing 1/1,000 of a 4.625% Cum Pref Share, Series L, $0.01 par value						PSAPrL						New York Stock Exchange
Depositary Shares Each Representing 1/1,000 of a 4.125% Cum Pref Share, Series M, $0.01 par value						PSAPrM						New York Stock Exchange
Depositary Shares Each Representing 1/1,000 of a 3.875% Cum Pref Share, Series N, $0.01 par value						PSAPrN						New York Stock Exchange
Depositary Shares Each Representing 1/1,000 of a 3.900% Cum Pref Share, Series O, $0.01 par value						PSAPrO						New York Stock Exchange
Depositary Shares Each Representing 1/1,000 of a 4.000% Cum Pref Share, Series P, $0.01 par value						PSAPrP						New York Stock Exchange
Depositary Shares Each Representing 1/1,000 of a 3.950% Cum Pref Share, Series Q, $0.01 par value						PSAPrQ						New York Stock Exchange
Depositary Shares Each Representing 1/1,000 of a 4.000% Cum Pref Share, Series R, $0.01 par value						PSAPrR						New York Stock Exchange
Depositary Shares Each Representing 1/1,000 of a 4.100% Cum Pref Share, Series S, $0.01 par value						PSAPrS						New York Stock Exchange
Guarantee of 0.875% Senior Notes due 2032 issued by Public Storage Operating Company						PSA/32						New York Stock Exchange
Guarantee of 0.500% Senior Notes due 2030 issued by Public Storage Operating Company						PSA/30						New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for at least the past 90 days.

☒ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

☒ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer			Accelerated filer			Non-accelerated filer			Smaller reporting company			Emerging growth company
☒			☐			☐			☐			☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

☐ Yes ☒ No

Indicate the number of the registrant’s outstanding common shares of beneficial interest, as of July 23, 2025:

Common Shares of beneficial interest, $0.10 par value per share – 175,452,848 shares

PUBLIC STORAGE

INDEX

PART I			FINANCIAL INFORMATION			Pages
Item 1.			Consolidated Financial Statements (Unaudited)
			Consolidated Balance Sheets			1
			Consolidated Statements of Income			2
			Consolidated Statements of Comprehensive Income			3
			Consolidated Statements of Equity			4
			Consolidated Statements of Cash Flows			8
			Condensed Notes to Consolidated Financial Statements			8
Item 2.			Management’s Discussion and Analysis of Financial Condition and Results of Operations			25
Item 3.			Quantitative and Qualitative Disclosures About Market Risk			53
Item 4.			Controls and Procedures			53
PART II			OTHER INFORMATION (Items 3 and 4 are not applicable)
Item 1.			Legal Proceedings			54
Item 1A.			Risk Factors			54
Item 2.			Unregistered Sales of Equity Securities and Use of Proceeds			54
Item 5.			Other Information			54
Item 6.			Exhibits			54

PUBLIC STORAGE

CONSOLIDATED BALANCE SHEETS

(Amounts in thousands, except share data)

			June 30, 2025						December 31, 2024
			(Unaudited)
ASSETS
Cash and equivalents			$	1,104,603					$	447,416
Real estate facilities, at cost:
Land			5,805,482						5,711,685
Buildings			23,306,210						22,767,053
			29,111,692						28,478,738
Accumulated depreciation			(10,938,166)						(10,426,186)
			18,173,526						18,052,552
Construction in process			257,295						308,101
			18,430,821						18,360,653
Investment in unconsolidated real estate entity			387,946						382,490
Goodwill and other intangible assets, net			253,467						282,187
Other assets			364,616						282,188
Total assets			$	20,541,453					$	19,754,934
LIABILITIES AND EQUITY
Notes payable			$	10,440,279					$	9,353,034
Accrued and other liabilities			624,825						588,248
Total liabilities			11,065,104						9,941,282
Commitments and contingencies (Note 15)
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, 175,452,716 shares issued (175,408,393 shares at December 31, 2024)			17,545						17,541
Paid-in capital			6,131,517						6,116,113
Accumulated deficit			(1,085,142)						(699,083)
Accumulated other comprehensive loss			(41,461)						(71,965)
Total Public Storage shareholders’ equity			9,372,459						9,712,606
Noncontrolling interests			103,890						101,046
Total equity			9,476,349						9,813,652
Total liabilities and equity			$	20,541,453					$	19,754,934

See accompanying notes.

PUBLIC STORAGE

CONSOLIDATED STATEMENTS OF INCOME

(Amounts in thousands, except per share amounts)

(Unaudited)

			Three Months Ended June 30,												Six Months Ended June 30,
			2025						2024						2025						2024
Revenues:
Self-storage facilities			$	1,118,658					$	1,099,736					$	2,221,656					$	2,185,781
Ancillary operations			82,436						73,475						162,622						144,650
			1,201,094						1,173,211						2,384,278						2,330,431
Expenses:
Self-storage cost of operations			284,717						273,501						585,871						570,915
Ancillary cost of operations			33,288						27,543						63,981						54,612
Depreciation and amortization			283,216						283,342						565,931						568,545
Real estate acquisition and development expense			2,538						2,907						9,961						6,624
General and administrative			25,727						26,580						50,911						47,916
Interest expense			71,609						73,236						143,618						141,014
			701,095						687,109						1,420,273						1,389,626
Other increases (decreases) to net income:
Interest and other income			12,789						18,253						26,023						32,219
Equity in (loss) earnings of unconsolidated real estate entities			(2,230)						6,480						1,397						12,570
Foreign currency exchange (loss) gain			(146,070)						12,449						(214,765)						49,992
Gain on sale of real estate			163						—						208						874
Income before income tax expense			364,651						523,284						776,868						1,036,460
Income tax expense			(3,240)						(2,075)						(4,666)						(3,554)
Net income			361,411						521,209						772,202						1,032,906
Allocation to noncontrolling interests			(2,992)						(3,082)						(5,992)						(5,831)
Net income allocable to Public Storage shareholders			358,419						518,127						766,210						1,027,075
Allocation of net income to:
Preferred shareholders			(48,673)						(48,673)						(97,351)						(97,351)
Restricted share units and unvested LTIP units			(778)						(1,088)						(1,661)						(2,149)
Net income allocable to common shareholders			$	308,968					$	468,366					$	667,198					$	927,575
Net income per common share:
Basic			$	1.76					$	2.67					$	3.80					$	5.28
Diluted			$	1.76					$	2.66					$	3.79					$	5.26
Basic weighted average common shares outstanding			175,442						175,469						175,431						175,585
Diluted weighted average common shares outstanding			175,921						176,009						175,932						176,180

See accompanying notes.

PUBLIC STORAGE

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Amounts in thousands)

(Unaudited)

			Three Months Ended June 30,												Six Months Ended June 30,
			2025						2024						2025						2024
Net income			$	361,411					$	521,209					$	772,202					$	1,032,906
Foreign currency translation gain (loss) on investment in Shurgard			16,791						462						30,515						(6,813)
Total comprehensive income			378,202						521,671						802,717						1,026,093
Allocation to noncontrolling interests			(3,000)						(3,082)						(6,003)						(5,830)
Comprehensive income allocable to Public Storage shareholders			$	375,202					$	518,589					$	796,714					$	1,020,263

See accompanying notes.

PUBLIC STORAGE

CONSOLIDATED STATEMENTS OF EQUITY

Three Months Ended June 30, 2025

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

(Unaudited)

			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 March 31, 2025			$	4,350,000					$	17,543					$	6,124,382					$	(867,425)					$	(58,244)											$	9,566,256					$	104,096					$	9,670,352
Issuance of common shares in connection with share-based compensation (22,544 shares)			—						2						4,626						—						—												4,628						—						4,628
Taxes withheld upon net share settlement of restricted share units			—						—						(372)						—						—												(372)						—						(372)
Share-based compensation cost			—						—						11,553						—						—												11,553						—						11,553
Acquisition of noncontrolling interests			—						—						(8,056)						—						—												(8,056)						(902)						(8,958)
Contributions by noncontrolling interests			—						—						—						—						—												—						1,531						1,531
Net income			—						—						—						361,411						—												361,411						—						361,411
Net income allocated to noncontrolling interests			—						—						—						(2,992)						—												(2,992)						2,992						—
Reallocation of equity			—						—						(616)						—						—												(616)						616						—
Distributions to:
Preferred shareholders			—						—						—						(48,677)						—												(48,677)						—						(48,677)
Noncontrolling interests			—						—						—						—						—												—						(4,451)						(4,451)
Common shareholders, restricted share unitholders and unvested LTIP unitholders ($3.00 per share/unit)			—						—						—						(527,459)						—												(527,459)						—						(527,459)
Other comprehensive income			—						—						—						—						16,783												16,783						8						16,791
Balances at June 30, 2025			$	4,350,000					$	17,545					$	6,131,517					$	(1,085,142)					$	(41,461)											$	9,372,459					$	103,890					$	9,476,349

See accompanying notes.

PUBLIC STORAGE

CONSOLIDATED STATEMENTS OF EQUITY

Three Months Ended June 30, 2024

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

(Unaudited)

			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 March 31, 2024			$	4,350,000					$	17,572					$	5,991,606					$	(336,003)					$	(74,513)					$	9,948,662					$	96,636					$	10,045,298
Issuance of common shares in connection with share-based compensation (14,191 shares)			—						2						2,595						—						—						2,597						—						2,597
Taxes withheld upon net share settlement of restricted share units			—						—						(288)						—						—						(288)						—						(288)
Share-based compensation cost			—						—						12,452						—						—						12,452						—						12,452
Repurchase of common shares (726,865 shares)			—						(73)						—						(199,927)						—						(200,000)						—						(200,000)
Contributions by noncontrolling interests			—						—						—						—						—						—						91						91
Net income			—						—						—						521,209						—						521,209						—						521,209
Net income allocated to noncontrolling interests			—						—						—						(3,082)						—						(3,082)						3,082						—
Reallocation of equity			—						—						95						—						—						95						(95)						—
Distributions to:
Preferred shareholders			—						—						—						(48,673)						—						(48,673)						—						(48,673)
Noncontrolling interests			—						—						—						—						—						—						(3,311)						(3,311)
Common shareholders and restricted share unitholders ($3.00 per share)			—						—						—						(526,189)						—						(526,189)						—						(526,189)
Other comprehensive income			—						—						—						—						462						462						—						462
Balances at June 30, 2024			$	4,350,000					$	17,501					$	6,006,460					$	(592,665)					$	(74,051)					$	9,707,245					$	96,403					$	9,803,648

See accompanying notes.

PUBLIC STORAGE

CONSOLIDATED STATEMENTS OF EQUITY

Six Months Ended June 30, 2025

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

(Unaudited)

			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, 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 (44,323 shares)			—						4						7,841						—						—												7,845						—						7,845
Taxes withheld upon net share settlement of restricted share units			—						—						(3,040)						—						—												(3,040)						—						(3,040)
Share-based compensation cost			—						—						22,746						—						—												22,746						—						22,746
Acquisition of noncontrolling interests			—						—						(8,161)						—						—												(8,161)						(900)						(9,061)
Contributions by noncontrolling interests			—						—						—						—						—												—						2,684						2,684
Net income			—						—						—						772,202						—												772,202						—						772,202
Net income allocated to noncontrolling interests			—						—						—						(5,992)						—												(5,992)						5,992						—
Reallocation of equity			—						—						(3,982)						—						—												(3,982)						3,982						—
Distributions to:
Preferred shareholders			—						—						—						(97,355)						—												(97,355)						—						(97,355)
Noncontrolling interests			—						—						—						—						—												—						(8,925)						(8,925)
Common shareholders, restricted share unitholders and unvested LTIP unitholders ($6.00 per share/unit)			—						—						—						(1,054,914)						—												(1,054,914)						—						(1,054,914)
Other comprehensive income			—						—						—						—						30,504												30,504						11						30,515
Balances at June 30, 2025			$	4,350,000					$	17,545					$	6,131,517					$	(1,085,142)					$	(41,461)											$	9,372,459					$	103,890					$	9,476,349

See accompanying notes.

PUBLIC STORAGE

CONSOLIDATED STATEMENTS OF EQUITY

Six Months Ended June 30, 2024

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

(Unaudited)

			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, 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 in connection with share-based compensation (67,025 shares)			—						7						10,423						—						—						10,430						—						10,430
Taxes withheld upon net settlement of restricted share units			—						—						(5,616)						—						—						(5,616)						—						(5,616)
Share-based compensation cost			—						—						23,757						—						—						23,757						—						23,757
Repurchase of common shares (726,865 shares)			—						(73)						—						(199,927)						—						(200,000)						—						(200,000)
Acquisition of noncontrolling interests			—						—						—						—						—						—						—						—
Contributions by noncontrolling interests			—						—						—						—						—						—						1,418						1,418
Net income			—						—						—						1,032,906						—						1,032,906						—						1,032,906
Net income allocated to noncontrolling interests			—						—						—						(5,831)						—						(5,831)						5,831						—
Reallocation of equity			—						—						(2,864)						—						—						(2,864)						2,864						—
Distributions to:
Preferred shareholders			—						—						—						(97,351)						—						(97,351)						—						(97,351)
Noncontrolling interests			—						—						—						—						—						—						(7,477)						(7,477)
Common shareholders, restricted share unitholders and unvested LTIP unitholders ($6.00 per share/unit)			—						—						—						(1,054,552)						—						(1,054,552)						—						(1,054,552)
Other comprehensive loss			—						—						—						—						(6,812)						(6,812)						(1)						(6,813)
Balances at June 30, 2024			$	4,350,000					$	17,501					$	6,006,460					$	(592,665)					$	(74,051)					$	9,707,245					$	96,403					$	9,803,648

See accompanying notes.

PUBLIC STORAGE

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Amounts in thousands)

(Unaudited)

			For the Six Months Ended June 30,
			2025						2024
Cash flows from operating activities:
Net income			$	772,202					$	1,032,906
Adjustments to reconcile net income to net cash flows from operating activities:
Gain on sale of real estate			(208)						(874)
Depreciation and amortization			565,931						568,545
Equity in earnings of unconsolidated real estate entities			(1,397)						(12,570)
Distributions from cumulative equity in earnings of unconsolidated real estate entities			736						9,330
Unrealized foreign currency exchange loss (gain)			215,716						(49,858)
Share-based compensation expense			20,903						21,174
Impairment of real estate investments			3,827						—
Other non-cash adjustments			6,295						5,395
Changes in operating assets and liabilities, excluding the impact of acquisitions:
Other assets			(22,766)						(6,154)
Accrued and other liabilities			16,532						(7,029)
Net cash flows from operating activities			1,577,771						1,560,865
Cash flows from investing activities:
Capital expenditures to maintain real estate facilities			(84,302)						(117,481)
Capital expenditures for property enhancements			—						(63,027)
Capital expenditures for energy efficiencies (LED lighting, solar)			(29,045)						(25,984)
Development and expansion of real estate facilities			(143,146)						(164,932)
Acquisition of real estate facilities and intangible assets			(303,277)						(21,963)
Issuance of notes receivable			(67,876)						—
Distributions in excess of cumulative equity in earnings from unconsolidated real estate entities			—						13,285
Proceeds from sale of real estate investments			2,849						2,443
Net cash flows used in investing activities			(624,797)						(377,659)
Cash flows from financing activities:
Repayments of notes payable			(65)						(808,442)
Issuance of notes payable, net of issuance costs			866,532						1,151,022
Issuance of common shares in connection with share-based compensation			7,779						10,364
Taxes paid upon net share settlement of restricted share units			(3,040)						(5,616)
Repurchase of common shares			—						(200,000)
Acquisition of noncontrolling interests			(9,061)						—
Contributions by noncontrolling interests			2,684						1,418
Distributions paid to preferred shareholders, common shareholders, restricted share unitholders and unvested LTIP unitholders			(1,151,691)						(1,151,394)
Distributions paid to noncontrolling interests			(8,925)						(7,477)
Net cash flows used in financing activities			(295,787)						(1,010,125)
Net increase in cash and equivalents, including restricted cash			$	657,187					$	173,081

See accompanying notes.

PUBLIC STORAGE

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Amounts in thousands)

(Unaudited)

			For the Six Months Ended June 30,
			2025						2024
Cash and equivalents, including restricted cash at beginning of the period:
Cash and equivalents			$	447,416					$	370,002
Restricted cash included in other assets			—						30,373
			$	447,416					$	400,375
Cash and equivalents, including restricted cash at end of the period:
Cash and equivalents			$	1,104,603					$	542,263
Restricted cash included in other assets			—						31,193
			$	1,104,603					$	573,456
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			$	(9,718)					$	(9,589)
Capital expenditures for property enhancements			—						(6,264)
Capital expenditures for energy efficiencies (LED lighting, solar)			(3,282)						(1,582)
Construction or expansion of real estate facilities			(45,729)						(47,175)
Supplemental cash flow information:
Cash paid for interest, net of amounts capitalized			$	139,685					$	131,333
Cash paid for income taxes, net of refunds			5,910						6,144

See accompanying notes.

PUBLIC STORAGE

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025

(Unaudited)

1. 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 June 30, 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 June 30, 2025, we owned interests in 3,103 self-storage facilities (with approximately 224.1 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 329 facilities (with approximately 25.4 million net rentable square feet) for third parties at June 30, 2025.

At June 30, 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 321 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 losses from Shurgard, we adjust Shurgard’s operating results, which are reported under IFRS, to conform with US GAAP.

2. Basis of Presentation and Summary of Significant Accounting Policies

Basis of Presentation

We have prepared the accompanying interim consolidated financial statements in accordance with U.S. generally accepted accounting principles (“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”). In our opinion, the interim consolidated financial statements presented herein reflect all adjustments, primarily of a normal recurring nature, that are necessary to present fairly the interim consolidated financial statements. Because they do not include all of the disclosures required by GAAP for complete annual financial statements, these interim consolidated financial statements should be read together with the audited Consolidated Financial Statements and related Notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.

Disclosures of the number and square footage of facilities, as well as the number and coverage of tenant reinsurance policies (Note 15) are unaudited and outside the scope of our independent registered public accounting firm’s review of our financial statements in accordance with the standards of the Public Company Accounting Oversight Board (U.S.).

Operating results for the three and six months ended June 30, 2025 are not necessarily indicative of the results that may be expected for the year ending December 31, 2025.

PUBLIC STORAGE

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025

(Unaudited)

Summary of Significant Accounting Policies

There have been no significant changes to the Company's significant accounting policies described in Note 2, Basis of Presentation and Summary of Significant Accounting Policies, in Notes to Consolidated Financial Statements included in Item 8 of Part II of the Company's Annual Report on Form 10-K for the year ended December 31, 2024.

3. Real Estate Facilities

Activity in real estate facilities during the six months ended June 30, 2025 is as follows:

			Six Months Ended June 30, 2025
			(Amounts in thousands)
Operating facilities, at cost:
Beginning balance			$	28,478,738
Capital expenditures to maintain real estate facilities			85,555
Capital expenditures for energy efficiencies (LED lighting, solar)			31,202
Acquisitions			288,227
Transfers, dispositions, and retirements, net			19,564
Developed or expanded facilities opened for operation			208,406
Ending balance			29,111,692
Accumulated depreciation:
Beginning balance			(10,426,186)
Depreciation expense			(514,075)
Dispositions and retirements			2,095
Ending balance			(10,938,166)
Construction in process:
Beginning balance			308,101
Costs incurred to develop and expand real estate facilities			160,172
Write-off of cancelled projects and transfer to other assets			(2,572)
Developed or expanded facilities opened for operation			(208,406)
Ending balance			257,295
Total real estate facilities at June 30, 2025			$	18,430,821

During the six months ended June 30, 2025, we acquired 25 self-storage facilities (1.8 million net rentable square feet of storage space), for a total cost of $303.3 million in cash. Approximately $15.1 million of the total cost was allocated to intangible assets. During the six months ended June 30, 2025, we completed development and redevelopment activities costing $208.4 million, adding 0.9 million net rentable square feet of self-storage space. Construction in process at June 30, 2025 consisted of projects to develop new self-storage facilities and expand existing self-storage facilities. During the six months ended June 30, 2025, we recognized $3.8 million of impairment write-down of certain land development parcels that are or will be marketed for sale. These land development parcels were included in other assets on the Consolidated Balance Sheet, and the related impairment write-down was classified as real estate acquisition and development expense on the Consolidated Statements of Income.

PUBLIC STORAGE

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025

(Unaudited)

4. Investment in Unconsolidated Real Estate Entity

Throughout all periods presented, we had an approximate 35% equity interest in Shurgard. At June 30, 2025, we owned 35,196,725 common shares of Shurgard. Based upon the closing price at June 30, 2025 (€37.00 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 $1.4 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 the six months ended June 30, 2025 and 2024, we received $2.4 million and $2.0 million of trademark license fees that Shurgard pays to us for the use of the Shurgard® trademark, respectively. We eliminated $0.8 million and $0.7 million of intra-entity profits and losses for the six months ended June 30, 2025 and 2024, 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.

At June 30, 2025, our investment in Shurgard’s real estate assets exceeded our pro-rata share of the underlying amounts on Shurgard’s balance sheet by $31.1 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. The Shurgard Basis Differential is being amortized as a reduction to equity in earnings of the Unconsolidated Real Estate Entities. Such amortization totaled approximately $5.8 million and $4.0 million during the six months ended June 30, 2025 and 2024, respectively. During the six months ended June 30, 2025, we transferred $25.7 million of the Shurgard Basis Differential to Real Estate Facilities.

As of June 30, 2025 and 2024, we translated the book value of our investment in Shurgard from Euro to U.S. Dollars and recorded $30.5 million other comprehensive income and $6.8 million other comprehensive loss during the six months ended June 30, 2025 and 2024, respectively.

5. Goodwill and Other Intangible Assets

Goodwill and other intangible assets consisted of the following (amounts in thousands):

			At June 30, 2025																		At December 31, 2024
			Gross Book Value						Accumulated Amortization						Net Book Value						Gross Book Value						Accumulated Amortization						Net Book Value
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			1,023,161						(954,361)						68,800						1,008,111						(910,591)						97,520
Total goodwill and other intangible assets			$	1,207,828					$	(954,361)					$	253,467					$	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 $20.5 million and $43.8 million for the three and six months ended June 30, 2025, respectively, and $31.0 million and $66.8 million for the same periods in 2024. During the six months ended June 30, 2025, intangibles increased $15.1 million, in connection with the acquisition of real estate facilities (Note 3).

PUBLIC STORAGE

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025

(Unaudited)

The estimated future amortization expense for our finite-lived intangible assets at June 30, 2025 is as follows (amounts in thousands):

Year						Amount
Remainder of 2025						$	33,408
2026						27,861
2027						3,739
2028						378
2029						212
Thereafter						3,202
Total						$	68,800

6. 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 years or four years with two one-year extensions, and have variable interest rates. At June 30, 2025, we had a notes receivable balance of $78.5 million included in other assets and an unfunded loan commitment of $44.1 million expected to close in the next twelve months, subject to the satisfaction of certain conditions. As of June 30, 2025, none of the notes receivable were in past-due or nonaccrual status and the allowance for expected credit losses was immaterial.

7. 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 June 30, 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 June 30, 2025). At June 30, 2025 and July 30, 2025, we had no outstanding borrowings under this Credit Facility. We had undrawn standby letters of credit, which reduce our borrowing capacity, totaling $20.0 million at June 30, 2025 ($19.4 million at December 31, 2024). The Credit Facility has various customary restrictive covenants with which we were in compliance at June 30, 2025.

Public Storage has provided a full and unconditional guarantee of PSOC’s obligations under the Credit Facility.

PUBLIC STORAGE

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025

(Unaudited)

8. 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 June 30, 2025 and December 31, 2024 are set forth in the tables below:

															Amounts at June 30, 2025																								Amounts at December 31, 2024
			Coupon Rate						Effective Rate						Principal						Unamortized Costs						Book Value						Fair Value						Book Value						Fair Value
															($ amounts in thousands)
U.S. Dollar Denominated Unsecured Debt
Notes due July 25, 2025			SOFR+0.60%						4.940%						$	400,000					$	(57)					$	399,943					$	400,053					$	399,537					$	400,714
Notes due February 15, 2026			0.875%						1.030%						500,000						(470)						499,530						488,887						499,160						479,639
Notes due November 9, 2026			1.500%						1.640%						650,000						(1,182)						648,818						627,715						648,383						614,981
Notes due April 16, 2027			SOFR+0.70%						5.041%						700,000						(1,936)						698,064						700,708						697,544						706,119
Notes due September 15, 2027			3.094%						3.218%						500,000						(1,172)						498,828						489,257						498,564						480,904
Notes due May 1, 2028			1.850%						1.962%						650,000						(1,906)						648,094						610,539						647,756						592,876
Notes due November 9, 2028			1.950%						2.044%						550,000						(1,616)						548,384						512,256						548,144						494,867
Notes due January 15, 2029			5.125%						5.260%						500,000						(2,068)						497,932						515,728						497,639						506,074
Notes due May 1, 2029			3.385%						3.459%						500,000						(1,172)						498,828						484,819						498,673						472,031
Notes due July 1, 2030			4.375%						4.568%						475,000						(4,050)						470,950						473,628						—						—
Notes due May 1, 2031			2.300%						2.419%						650,000						(3,984)						646,016						577,297						645,673						555,387
Notes due November 9, 2031			2.250%						2.322%						550,000						(2,253)						547,747						480,262						547,570						459,682
Notes due August 1, 2033			5.100%						5.207%						700,000						(4,682)						695,318						718,627						695,028						695,171
Notes due July 1, 2035			5.000%						5.143%						400,000						(4,404)						395,596						398,444						—						—
Notes due August 1, 2053			5.350%						5.474%						900,000						(15,497)						884,503						863,379						884,224						856,992
															8,625,000						(46,449)						8,578,551						8,341,599						7,707,895						7,315,437
Euro Denominated Unsecured Debt
Notes due November 3, 2025			2.175%						2.175%						284,194						—						284,194						283,680						251,385						249,979
Notes due September 9, 2030			0.500%						0.640%						822,002						(5,812)						816,190						719,802						720,735						630,159
Notes due January 24, 2032			0.875%						0.978%						587,145						(3,518)						583,627						505,529						515,575						443,113
Notes due April 11, 2039			4.080%						4.080%						176,143						(69)						176,074						181,962						155,736						166,979
															1,869,484						(9,399)						1,860,085						1,690,973						1,643,431						1,490,230
Mortgage Debt, secured by 2 real estate facilities with a net book value of $11.0 million			4.287%						4.287%						1,643						—						1,643						1,620						1,708						1,591
															$	10,496,127					$	(55,848)					$	10,440,279					$	10,034,192					$	9,353,034					$	8,807,258

Public Storage has provided a full and unconditional guarantee of PSOC’s obligations under each series of unsecured notes.

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 from the offering.

PUBLIC STORAGE

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025

(Unaudited)

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 June 30, 2025. Included in these covenants are (a) a maximum Debt to Total Assets of 65% (approximately 19% at June 30, 2025) and (b) a minimum ratio of Adjusted EBITDA to Interest Expense of 1.5x (approximately 12x for the twelve months ended June 30, 2025) as well as covenants limiting the amount we can encumber our properties with mortgage debt.

Euro Denominated Unsecured Notes

At June 30, 2025, our Euro denominated unsecured notes (the “Euro Notes”) consisted of four tranches: (i) €242.0 million issued to institutional investors on November 3, 2015, (ii) €500.0 million issued in a public offering on January 24, 2020, (iii) €700.0 million issued in a public offering on September 9, 2021, and (iv) €150.0 million issued to institutional investors on April 11, 2024. The Euro Notes have financial covenants similar to those of the U.S. Dollar Denominated Unsecured Notes.

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 (loss) gain” on our income statement (losses of $147.1 million and $216.3 million for the three and six months ended June 30, 2025, respectively, as compared to gains of $12.5 million and $50.4 million for the three and six months ended June 30, 2024, respectively).

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 June 30, 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 June 30, 2025, approximate principal maturities of our Notes Payable are as follows (amounts in thousands):

			Unsecured Debt						Mortgage Debt						Total
Remainder of 2025			$	684,194					$	67					$	684,261
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
Thereafter			5,260,290						1,075						5,261,365
			$	10,494,484					$	1,643					$	10,496,127
Weighted average effective rate			3.0%						4.3%						3.0%

Interest capitalized as real estate totaled $3.1 million and $5.2 million for the six months ended June 30, 2025 and 2024, respectively.

Interest Rate Swaps

On June 30, 2025, 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. The swaps were designated in combination as a fair value hedge of interest rate risk.

As of June 30, 2025, the fair value of each swap was zero.

PUBLIC STORAGE

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025

(Unaudited)

9. Noncontrolling Interests

There are noncontrolling interests related to subsidiaries of PSOC we consolidate of which we do not own 100% of the equity. At June 30, 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. The holders of these partnership units are entitled to receive the same per-unit cash distributions equal to the dividends paid on our common shares.

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 June 30, 2025, approximately 0.20% of the partnership interests of PSA OP, representing 342,833 vested LTIP units, were not owned by the Company. There were no outstanding OP Units not owned by the Company at June 30, 2025. 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.

10. Shareholders’ Equity

Preferred Shares

At June 30, 2025 and December 31, 2024, we had the following series of Cumulative Preferred Shares (“Preferred Shares”) outstanding:

																		At June 30, 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

PUBLIC STORAGE

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025

(Unaudited)

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 June 30, 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.

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.

Dividends and Distributions

Dividends and distributions paid to our common shareholders, restricted share unitholders, deferred share unitholders, and unvested LTIP unitholders, totaled $527.2 million ($3.00 per share) and $525.9 million ($3.00 per share) for the three months ended June 30, 2025 and 2024, respectively, and $1.05 billion ($6.00 per share/unit) for each of the six months ended June 30, 2025 and 2024. In addition, we accrued $0.3 million of dividends and distributions to holders of unearned performance-based restricted share units and LTIP units for each of the three months ended June 30, 2025 and 2024, and $0.6 million and $0.5 million for the six months ended June 30, 2025 and 2024, respectively.

Preferred share dividends paid totaled $48.7 million for each of the three months ended June 30, 2025 and 2024, and $97.4 million for each of the six months ended June 30, 2025 and 2024.

11. Related Party Transactions

At June 30, 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 $1.0 million and $1.1 million for the six months ended June 30, 2025 and 2024, respectively.

PUBLIC STORAGE

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025

(Unaudited)

12. 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.

In addition, $0.5 million and $1.1 million share-based compensation cost was capitalized as real estate facilities for the three and six months ended June 30, 2025, respectively, as compared to $1.2 million and $1.8 million for the same periods of 2024, respectively.

			Three Months Ended June 30,												Six Months Ended June 30,
			2025						2024						2025						2024
			(Amounts in thousands)
Self-storage cost of operations			$	2,965					$	3,065					$	6,096					$	6,310
Ancillary cost of operations			338						250						673						626
Real estate acquisition and development expense			259						740						1,113						1,428
General and administrative			7,059						6,772						13,022						12,810
Total			$	10,621					$	10,827					$	20,904					$	21,174

As of June 30, 2025, there was $75.5 million of total unrecognized compensation cost related to share-based compensation arrangements. This cost is expected to be recognized over a weighted-average period of three years.

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.

Below is a summary of award activity issued in the form of RSUs and LTIP units for the six months ended June 30, 2025.

			Service-Based									Performance-Based (a)									Total
Unvested awards outstanding January 1, 2025			257,874												128,057												385,931
Granted (b)			1,822												36,802												38,624
Vested (c)			(35,996)												(26,394)												(62,390)
Forfeited			(11,986)												—												(11,986)
Unvested awards outstanding June 30, 2025			211,714												138,465												350,179

PUBLIC STORAGE

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025

(Unaudited)

(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)During the six months ended June 30, 2025, 36,802 performance-based LTIP unit awards (at target) were granted to certain executive officers. 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.

(c)9,794 common shares were issued from the vesting of RSUs.

For the three and six months ended June 30, 2025, we incurred share-based compensation cost for RSUs and LTIP units of $7.5 million and $15.7 million, respectively, as compared to $8.1 million and $16.0 million for the same periods in 2024.

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.

Below is a summary of award activity issued in the form of stock options and AO LTIP units for the six months ended June 30, 2025.

			Service-Based									Performance-Based (a)									Total
Awards outstanding January 1, 2025			1,347,866												1,202,599												2,550,465
Granted (b)			96,994												61,388												158,382
Exercised or converted (c)			(223,705)												(26,874)												(250,579)
Cancelled			(6,884)												—												(6,884)
Awards outstanding June 30, 2025			1,214,271												1,237,113												2,451,384
Awards exercisable or convertible at June 30, 2025			1,039,378												881,215												1,920,593

(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)During the six months ended June 30, 2025, 93,817 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.

(c)33,703 common shares were issued upon the exercise of stock options. 66,936 vested LTIP units were issued upon conversion of 216,876 AO LTIP units in the six months ended June 30, 2025.

For the three and six months ended June 30, 2025, we incurred share-based compensation cost for stock options and AO LTIP units of $3.4 million and $5.8 million, respectively, as compared to $3.7 million and $6.6 million for the same periods in 2024.

PUBLIC STORAGE

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025

(Unaudited)

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 deferred share units (“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 the six months ended June 30, 2025, we granted 914 fully vested LTIP units, 379 DSUs, and 224 unrestricted common shares. During the six months ended 2025, 602 previously granted DSUs were settled in common shares. A total of 11,263 DSUs were outstanding at June 30, 2025 (11,486 at December 31, 2024).

PUBLIC STORAGE

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025

(Unaudited)

13. 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 representing 552,302 common shares were excluded from the computation of diluted earnings per share for the three and six months ended June 30, 2025, as compared to 433,226 common shares for the same period in 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 three and six months ended June 30, 2025 and 2024, respectively (in thousands, except per share amounts):

			Three Months Ended June 30,												Six Months Ended June 30,
			2025						2024						2025						2024
Numerator for basic and dilutive net income per common share – net income allocable to common shareholders			$	308,968					$	468,366					$	667,198					$	927,575
Denominator for basic net income per share - weighted average common shares outstanding			175,442						175,469						175,431						175,585
Net effect of dilutive stock options and AO LTIP units - based on treasury stock method			479						540						501						595
Denominator for dilutive net income per share - weighted average common shares outstanding			175,921						176,009						175,932						176,180
Net income per common share:
Basic			$	1.76					$	2.67					$	3.80					$	5.28
Dilutive			$	1.76					$	2.66					$	3.79					$	5.26

PUBLIC STORAGE

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025

(Unaudited)

14. 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”).

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

The Ancillary Operations reflects the combined operations of our tenant reinsurance, merchandise sales, and third party property management operating segments.

PUBLIC STORAGE

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025

(Unaudited)

Presentation of Segment Information

The following table reconciles NOI and net income attributable to our reportable segment to our consolidated net income:

			Three Months Ended June 30,												Six Months Ended June 30,
			2025						2024						2025						2024
			(amounts in thousands)
Self-Storage Operations Reportable Segment
Revenue			$	1,118,658					$	1,099,736					$	2,221,656					$	2,185,781
Cost of operations:
Property taxes			(120,308)						(114,750)						(243,210)						(231,842)
On-site property manager payroll			(39,448)						(39,959)						(79,083)						(84,452)
Repairs and maintenance			(22,984)						(22,597)						(49,894)						(47,297)
Utilities			(13,493)						(13,121)						(32,218)						(30,624)
Marketing			(23,890)						(22,572)						(50,660)						(51,834)
Other direct property costs			(29,689)						(28,838)						(60,382)						(59,184)
Supervisory payroll			(13,355)						(12,346)						(27,271)						(25,452)
Centralized management costs			(18,585)						(16,253)						(37,057)						(33,920)
Share-based compensation			(2,965)						(3,065)						(6,096)						(6,310)
Total cost of operations			(284,717)						(273,501)						(585,871)						(570,915)
Net operating income			833,941						826,235						1,635,785						1,614,866
Depreciation and amortization			(283,216)						(283,342)						(565,931)						(568,545)
Net income			550,725						542,893						1,069,854						1,046,321
Ancillary Operations
Revenue			82,436						73,475						162,622						144,650
Cost of operations			(33,288)						(27,543)						(63,981)						(54,612)
Net operating income			49,148						45,932						98,641						90,038
Total net income allocated to segments			599,873						588,825						1,168,495						1,136,359
Other items not allocated to segments:
Real estate acquisition and development expense			(2,538)						(2,907)						(9,961)						(6,624)
General and administrative			(25,727)						(26,580)						(50,911)						(47,916)
Interest and other income			12,789						18,253						26,023						32,219
Interest expense			(71,609)						(73,236)						(143,618)						(141,014)
Equity in earnings of unconsolidated real estate entities			(2,230)						6,480						1,397						12,570
Foreign currency exchange (loss) gain			(146,070)						12,449						(214,765)						49,992
Gain on sale of real estate			163						—						208						874
Income tax expense			(3,240)						(2,075)						(4,666)						(3,554)
Net income			$	361,411					$	521,209					$	772,202					$	1,032,906

PUBLIC STORAGE

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025

(Unaudited)

15. 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 June 30, 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 $184.9 million at June 30, 2025. We expect to pay approximately $74.6 million in the remainder of 2025 and $104.0 million in 2026, and $6.3 million in 2027 for these construction commitments.

We have future contractual payments on land, equipment and office space under various lease commitments totaling $59.6 million at June 30, 2025. We expect to pay approximately $1.9 million in the remainder of 2025, $4.1 million in 2026, $2.7 million in 2027, $2.5 million in each of 2028 and 2029, and $45.9 million thereafter for these commitments.

We have an unfunded loan commitment totaling $44.1 million at June 30, 2025. We expect to fund the loan in the next twelve months, subject to the satisfaction of certain conditions.

PUBLIC STORAGE

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025

(Unaudited)

16. Corporate Transformation Costs

As part of our successful operating model transformation, we’ve launched a corporate transformation initiative focused on modernization and growth. This includes streamlining our processes through technology, expanding our geographic footprint with a stronger presence in Texas and offshore locations, and continuing to invest in our people. The initiative is intended to transform our corporate functions improving efficiency and productivity.

We expect to incur corporate transformation costs of approximately $15 to $20 million over the next three years as we complete the initiative, primarily related to employee severance and relocation expense, and employee retention and other transition expense.

As of June 30, 2025, corporate transformation costs incurred to date total approximately $1.8 million, primarily attributable to employee severance expenses, and included in the general and administrative expense in the Consolidated Statements of Income.

PUBLIC STORAGE

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025

(Unaudited)

17. Subsequent Events

Subsequent to June 30, 2025, we acquired or were under contract to acquire 47 self-storage facilities across 17 states with 3.1 million net rentable square feet, for $481.9 million.

On July 13, 2025, Ki Corporation (“Ki”) and Public Storage (together, the “Consortium”) announced a revised non-binding indicative offer to acquire all of the outstanding stapled securities of Abacus Storage King (ASX:ASK) that are not already held by Ki or its subsidiaries (together, the “Ki Group”) for A$1.65 per stapled security. The Ki Group is currently ASK’s major securityholder. Under the terms of the revised offer, Public Storage’s share of the total estimated cost, excluding direct transaction costs, would be approximately $710 million (A$1.08 billion), anticipated to be funded with Australian Dollar denominated unsecured debt. Abacus Storage King is one of the largest self-storage owners in Australia and New Zealand with approximately 126 operating properties, 21 development sites, and 75 managed properties. The structure of the transaction is subject to finalization, and the transaction is subject to a number of conditions, including due diligence, negotiation of a definitive agreement, and legal, regulatory, and shareholder approvals.

Subsequent to June 30, 2025, we used a portion of the proceeds from a previously disclosed debt issuance to repay in full our $400 million unsecured notes due July 25, 2025.