Item 3. Quantitative and Qualitative Disclosures about Market Risk

To limit our exposure to market risk, we are capitalized primarily with preferred and common equity. Our preferred shares are redeemable at our option generally five years after issuance, but the holder has no redemption option. Our debt, which totals approximately $10.1 billion at September 30, 2025, is the only market-risk sensitive portion of our capital structure.

The fair value of our debt at September 30, 2025 is approximately $10.1 billion. The table below summarizes the annual maturities of our debt, which had a weighted average effective rate of 3.0% at September 30, 2025. See Note 8 to our September 30, 2025 consolidated financial statements for further information regarding our debt (amounts in thousands).

At September 30, 2025, we have three separate interest rate swaps with a notional amount of $475 million which converted our $475 million principal amount of 4.375% fixed rate senior unsecured notes due July 2030 into a floating rate instrument with an interest rate based on a SOFR index. See Note 8 to our September 30, 2025 consolidated financial statements for further information regarding our swaps.

We have foreign currency exposure at September 30, 2025 related to (i) our investment in Shurgard, with a book value of $383.6 million, and a fair value of $1.4 billion based upon the closing price of Shurgard’s stock on September 30, 2025, and (ii) €1.6 billion ($1.9 billion) of Euro-denominated unsecured notes payable, providing a natural hedge against the fair value of our investment in Shurgard.