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 March 31, 2026

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)
2811 Internet Boulevard, Frisco, Texas						75034
(Address of principal executive offices)						(Zip Code)

Registrant’s telephone number, including area code: (469) 649-9486.

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
Guarantee of 3.500% Senior Notes due 2034 issued by Public Storage Operating Company						PSA/34						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 April 20, 2026:

Common Shares of beneficial interest, $0.10 par value per share – 175,545,748 shares

Public Storage

Form 10-Q

For the Quarterly Period Ended March 31, 2026

TABLE OF CONTENTS

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			5
			Notes to Unaudited Consolidated Financial Statements			7
Item 2.			Management’s Discussion and Analysis of Financial Condition and Results of Operations			22
Item 3.			Quantitative and Qualitative Disclosures About Market Risk			41
Item 4.			Controls and Procedures			41
PART II OTHER INFORMATION (Items 3 and 4 are not applicable)
Item 1.			Legal Proceedings			42
Item 1A.			Risk Factors			42
Item 2.			Unregistered Sales of Equity Securities and Use of Proceeds			45
Item 5.			Other Information			45
Item 6.			Exhibits			45

PUBLIC STORAGE

CONSOLIDATED BALANCE SHEETS

(Amounts in thousands, except share data)

			March 31, 2026						December 31, 2025
			(Unaudited)
ASSETS
Cash and equivalents			$	134,609					$	318,095
Real estate facilities, at cost:
Land			5,962,189						5,952,072
Buildings			24,251,342						24,126,185
Total land and buildings, at cost			30,213,531						30,078,257
Accumulated depreciation			(11,737,258)						(11,468,054)
Total land and buildings, net			18,476,273						18,610,203
Construction in process			202,742						194,355
Total real estate facilities, net			18,679,015						18,804,558
Investment in unconsolidated real estate entity			383,917						388,586
Goodwill and other intangible assets, net			233,207						251,613
Notes receivable, net			142,501						142,108
Other assets			277,160						303,644
Total assets			$	19,850,409					$	20,208,604
LIABILITIES AND EQUITY
Notes payable			$	9,707,266					$	10,253,881
Unsecured credit facility			325,000						—
Accrued and other liabilities			498,421						612,889
Total liabilities			10,530,687						10,866,770
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, 2025) at liquidation preference			4,350,000						4,350,000
Common Shares, $0.10 par value, 650,000,000 shares authorized, 175,544,909 shares issued (175,500,243 shares at December 31, 2025)			17,554						17,550
Paid-in capital			6,184,983						6,147,650
Accumulated deficit			(1,269,414)						(1,219,273)
Accumulated other comprehensive loss			(58,783)						(47,799)
Total Public Storage shareholders’ equity			9,224,340						9,248,128
Noncontrolling interests			95,382						93,706
Total equity			9,319,722						9,341,834
Total liabilities and equity			$	19,850,409					$	20,208,604

See accompanying notes.

PUBLIC STORAGE

CONSOLIDATED STATEMENTS OF INCOME

(Amounts in thousands, except per share amounts)

(Unaudited)

			Three Months Ended March 31,
			2026						2025
Revenues:
Self-storage facilities			$	1,128,125					$	1,102,998
Ancillary operations			89,616						80,186
Total revenues			1,217,741						1,183,184
Expenses:
Self-storage cost of operations			305,679						301,154
Ancillary cost of operations			34,264						30,693
Depreciation and amortization			290,723						282,715
Real estate acquisition and development expense			2,428						7,423
General and administrative			30,351						25,184
Interest expense			80,018						72,009
Total expenses			743,463						719,178
Operating income			474,278						464,006
Other increases (decreases) to net income:
Interest and other income (expense)			7,778						13,234
Equity in earnings (loss) of unconsolidated real estate entity			6,836						3,627
Foreign currency exchange gain (loss)			41,673						(68,695)
Gain (Loss) on sale of real estate			379						45
Income before income taxes			530,944						412,217
Income tax (provision) benefit			(1,569)						(1,426)
Net income			529,375						410,791
Allocation to noncontrolling interests			(3,102)						(3,000)
Net income allocable to Public Storage shareholders			526,273						407,791
Allocation of net income to:
Preferred shareholders			(48,678)						(48,678)
Restricted share units and unvested LTIP units			(807)						(883)
Net income allocable to common shareholders			$	476,788					$	358,230
Net income per common share:
Basic			$	2.72					$	2.04
Diluted			$	2.71					$	2.04
Basic weighted average common shares outstanding			175,519						175,419
Diluted weighted average common shares outstanding			175,928						175,942

See accompanying notes.

PUBLIC STORAGE

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Amounts in thousands)

(Unaudited)

			Three Months Ended March 31,
			2026						2025
Net income			$	529,375					$	410,791
Foreign currency translation gain (loss) on investment in Shurgard			(11,007)						13,724
Total comprehensive income			518,368						424,515
Allocation to noncontrolling interests			(3,079)						(3,003)
Comprehensive income allocable to Public Storage shareholders			$	515,289					$	421,512

See accompanying notes.

PUBLIC STORAGE

CONSOLIDATED STATEMENTS OF EQUITY

(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, 2025			$	4,350,000					$	17,550					$	6,147,650					$	(1,219,273)					$	(47,799)					$	9,248,128					$	93,706					$	9,341,834
Issuance of common shares in connection with share-based compensation (44,666 shares)			—						4						7,857						—						—						7,861						—						7,861
Sale of OP Options			—						—						30,000						—						—						30,000						—						30,000
Taxes withheld upon net share settlement of restricted share units			—						—						(2,600)						—						—						(2,600)						—						(2,600)
Share-based compensation cost			—						—						11,674						—						—						11,674						—						11,674
Acquisition of noncontrolling interests			—						—						(7,460)						—						—						(7,460)						(22)						(7,482)
Contributions by noncontrolling interests			—						—						—						—						—						—						856						856
Net income			—						—						—						529,375						—						529,375						—						529,375
Net income allocated to noncontrolling interests			—						—						—						(3,102)						—						(3,102)						3,102						—
Reallocation of equity			—						—						(2,138)						—						—						(2,138)						2,138						—
Distributions to:			—						—						—						—						—						—						—						—
Preferred shareholders			—						—						—						(48,678)						—						(48,678)						—						(48,678)
Noncontrolling interests			—						—						—						—						—						—						(4,375)						(4,375)
Common shareholders, restricted share unitholders and unvested LTIP unitholders ($3.00 per share/unit)			—						—						—						(527,736)						—						(527,736)						—						(527,736)
Other comprehensive income (loss)			—						—						—						—						(10,984)						(10,984)						(23)						(11,007)
Balances at March 31, 2026			$	4,350,000					$	17,554					$	6,184,983					$	(1,269,414)					$	(58,783)					$	9,224,340					$	95,382					$	9,319,722

			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 (21,779 shares)			—						2						3,215						—						—						3,217						—						3,217
Taxes withheld upon net share settlement of restricted share units			—						—						(2,668)						—						—						(2,668)						—						(2,668)
Share-based compensation cost			—						—						11,193						—						—						11,193						—						11,193
Acquisition of noncontrolling interests			—						—						(105)						—						—						(105)						2						(103)
Contributions by noncontrolling interests			—						—						—						—						—						—						1,153						1,153
Net income			—						—						—						410,791						—						410,791						—						410,791
Net income allocated to noncontrolling interests			—						—						—						(3,000)						—						(3,000)						3,000						—
Reallocation of equity			—						—						(3,366)						—						—						(3,366)						3,366						—
Distributions to:
Preferred shareholders			—						—						—						(48,678)						—						(48,678)						—						(48,678)
Noncontrolling interests			—						—						—						—						—						—						(4,474)						(4,474)
Common shareholders, restricted share unitholders and unvested LTIP unitholders ($3.00 per share)			—						—						—						(527,455)						—						(527,455)						—						(527,455)
Other comprehensive income			—						—						—						—						13,721						13,721						3						13,724
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

See accompanying notes.

PUBLIC STORAGE

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Amounts in thousands)

(Unaudited)

			Three Months Ended March 31,
			2026						2025
Operating Activities:
Net income			$	529,375					$	410,791
Adjustments to reconcile net income to net cash flows from operating activities:
Gain on sale of real estate			(379)						(45)
Depreciation and amortization			290,723						282,715
Equity in earnings of unconsolidated real estate entity			(6,836)						(3,627)
Distributions from cumulative equity in earnings of unconsolidated real estate entity			498						432
Unrealized foreign currency exchange (gain) loss			(41,926)						68,664
Share-based compensation expense			11,888						10,283
Impairment of real estate investments			—						3,827
Amortization of debt issuance costs			2,676						2,469
Unrealized losses on derivatives			5,251						—
Other non-cash adjustments			215						238
Changes in operating assets and liabilities, excluding the impact of acquisitions:
Other assets			20,719						8,702
Accrued and other liabilities			(117,403)						(79,386)
Net cash flows from (used in) operating activities			694,801						705,063
Investing Activities:
Capital expenditures to maintain real estate facilities			(44,027)						(35,966)
Capital expenditures for property enhancements			(9,794)						(7,785)
Capital expenditures for energy efficiencies (LED lighting, solar, heat pumps)			(15,687)						(14,258)
Development and expansion of real estate facilities			(57,713)						(66,481)
Acquisition of real estate facilities and intangible assets			(20,778)						(140,990)
Issuance of notes receivable			—						(23,636)
Proceeds from sale of real estate investments			674						2,599
Net cash flows from (used in) investing activities			(147,325)						(286,517)
Financing Activities:
Repayments of notes payable			(500,034)						(33)
Net proceeds from revolving line of credit			325,000						—
Proceeds from OP Options issued			30,000						—
Financing fees paid			(4,000)						—
Issuance of common shares in connection with share-based compensation			7,828						3,184
Taxes paid upon net share settlement of restricted share units			(2,600)						(2,668)
Acquisition of noncontrolling interests			(7,482)						(103)
Contributions by noncontrolling interests			856						1,153
Distributions paid to preferred shareholders, common shareholders, restricted share unitholders and unvested LTIP unitholders			(576,155)						(575,844)
Distributions paid to noncontrolling interests			(4,375)						(4,474)
Net cash flows from (used in) financing activities			(730,962)						(578,785)
Net (decrease) increase in cash and equivalents, including restricted cash			$	(183,486)					$	(160,239)

See accompanying notes.

PUBLIC STORAGE

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Amounts in thousands)

(Unaudited)

			Three Months Ended March 31,
			2026						2025
Cash and equivalents at beginning of the period:			$	318,095					$	447,416
Cash and equivalents at end of the period:			$	134,609					$	287,177
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			$	(9,500)					$	(7,580)
Capital expenditures for property enhancements			(177)						(66)
Capital expenditures for energy efficiencies (LED lighting, solar, heat pumps)			(464)						(1,402)
Construction or expansion of real estate facilities			(30,281)						(42,084)
Supplemental cash flow information:
Cash paid for interest, net of amounts capitalized			$	(92,257)					$	(82,509)
Cash paid for income taxes, net of refunds			(357)						(230)

See accompanying notes.

PUBLIC STORAGE

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2026

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 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 March 31, 2026, Public Storage owned all of the general partner interests and approximately 99.76% of the limited partnership interests of PSA OP, with the remaining 0.24% 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 March 31, 2026, we owned interests in 3,176 self-storage facilities (with approximately 229.8 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 370 facilities (with approximately 29.0 million net rentable square feet) for third parties at March 31, 2026.

At March 31, 2026, 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 333 self-storage facilities (with approximately 19 million net rentable square feet) located in seven Western European countries, all operating under the Shurgard® name. The shares we owned had a market value of approximately $1.0 billion at March 31, 2026. 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”).

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. 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, 2025.

Certain amounts previously reported in our March 31, 2025 Statements of Cash Flows have been reclassified to conform to the March 31, 2026 presentation, with respect to the major types of capital expenditures in the cash flows from investing activities section. The reclassifications did not affect the subtotals for cash flows from operating, investing or financing activities.

PUBLIC STORAGE

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2026

Disclosures of the number and square footage of facilities, as well as the number and coverage of tenant reinsurance policies 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 months ended March 31, 2026 are not necessarily indicative of the results that may be expected for the year ending December 31, 2026.

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, 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.

3. NSA Acquisition

On March 16, 2026, the Company announced that it had entered into a merger agreement (the “Merger”) to acquire National Storage Affiliates Trust (“NSA”), a Maryland real estate investment trust (“NSA”), listed on the New York Stock Exchange, in an all-stock transaction. NSA’s portfolio includes more than 1,000 properties, 69 million rentable square feet, and 550,000 units across 37 states and Puerto Rico. In connection with the Merger, Public Storage and limited partners in NSA’s operating partnership will form a joint venture consisting of certain properties on NSA’s operating platform. The NSA operating partnership unitholders are expected to own approximately 80% of the joint venture at inception, with Public Storage holding the remaining interest. Public Storage will exclusively manage the joint venture portfolio and will earn customary property management, asset management and tenant reinsurance income.

Additionally, the Company expects to provide a $240 million mezzanine loan to the newly formed JV as part of its initial capitalization. At closing, the Company expects to repay NSA’s existing bank debt and senior unsecured notes, while assuming certain existing mortgage debt and preferred equity. The transaction is currently expected to close in the third quarter of 2026, subject to the approval of NSA equity holders and the satisfaction of other customary closing conditions.

PUBLIC STORAGE

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2026

4. Real Estate Facilities

Activity in real estate facilities during the three months ended March 31, 2026 is as follows:

			Three Months Ended March 31, 2026
			(Amounts in thousands)
Operating facilities, at cost:
Beginning balance			$	30,078,257
Capital expenditures to maintain real estate facilities			45,523
Capital expenditures for property enhancements			9,487
Capital expenditures for energy efficiencies (LED lighting, solar, heat pumps)			15,151
Acquisitions			20,008
Transfers, dispositions, and retirements, net			(306)
Developed or expanded facilities opened for operation			45,411
Ending balance			30,213,531
Accumulated depreciation:
Beginning balance			(11,468,054)
Depreciation expense			(269,204)
Ending balance			(11,737,258)
Construction in process:
Beginning balance			194,355
Costs incurred to develop and expand real estate facilities			54,010
Write-off of cancelled projects			(212)
Developed or expanded facilities opened for operation			(45,411)
Ending balance			202,742
Total real estate facilities, net at March 31, 2026			$	18,679,015

During the three months ended March 31, 2026, we acquired three self-storage facilities (0.2 million net rentable square feet of storage space), for a total cost of $20.8 million in cash. Approximately $0.8 million of the total cost was allocated to intangible assets. During the three months ended March 31, 2026, the Company disposed of one property due to an eminent domain ruling. The impact of this disposal was not material to the consolidated financial statements. During the three months ended March 31, 2026, we completed development and redevelopment activities costing $45.4 million, adding 0.3 million net rentable square feet of self-storage space. Construction in process at March 31, 2026 consisted of projects to develop new self-storage facilities and expand existing self-storage facilities.

PUBLIC STORAGE

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2026

5. Goodwill and Other Intangible Assets

Goodwill and other intangible assets consisted of the following:

			At March 31, 2026																		At December 31, 2025
			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			1,072,258						(1,023,718)						48,540						1,071,488						(1,004,542)						66,946
Total goodwill and other intangible assets			$	1,256,925					$	(1,023,718)					$	233,207					$	1,256,155					$	(1,004,542)					$	251,613

Finite-lived intangible assets consist primarily of acquired customers in place. Amortization expense related to intangible assets subject to amortization was $19.2 million and $23.3 million for the three months ended March 31, 2026 and 2025, respectively. During the three months ended March 31, 2026, intangibles increased $0.8 million, in connection with the acquisition of real estate facilities (Note 4).

The estimated future amortization expense for our finite-lived intangible assets at March 31, 2026 is as follows:

Year						Amount
(Amounts in Thousands)
Remainder of 2026						$	33,419
2027						10,672
2028						965
2029						212
2030						212
Thereafter						3,060
Total						$	48,540

6. Notes Receivable

We offer financing, typically in the form of bridge loans, to third-party self-storage owners for operating properties that we manage. The 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 March 31, 2026 and December 31, 2025, we had notes receivable of $142.5 million and $142.1 million, respectively, with average annual interest rates of 7.9% for both periods. At March 31, 2026, 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 March 31, 2026 and December 31, 2025, none of the notes receivable were in past-due or nonaccrual status and the allowance for expected credit losses was immaterial.

PUBLIC STORAGE

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2026

7. Credit Facility

On June 12, 2023, PSOC entered into an amended revolving credit agreement (the “Credit Facility”), of $1.5 billion maturing on 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 March 31, 2026). 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 March 31, 2026). At March 31, 2026, we had $325.0 million outstanding borrowings under this Credit Facility. We had undrawn standby letters of credit, which reduce our borrowing capacity, totaling $19.4 million at March 31, 2026 ($19.4 million at December 31, 2025). The Credit Facility has various customary restrictive covenants with which we were in compliance at March 31, 2026.

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

PUBLIC STORAGE

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2026

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 March 31, 2026 and December 31, 2025 are set forth in the tables below:

															March 31, 2026																		December 31, 2025
			Coupon Rate						Effective Rate						Amount																		Fair Value												Amount						Fair Value
															(Dollar amounts in thousands)
U.S. Dollar Denominated Unsecured Debt
Notes due February 15, 2026			0.875%						1.030%						$	—																	$	—											$	500,000					$	497,958
Notes due November 9, 2026			1.500%						1.640%						650,000																		639,947												650,000						636,828
Notes due April 16, 2027			SOFR+0.70%						4.368%						700,000																		700,971												700,000						703,891
Notes due September 15, 2027			3.094%						3.218%						500,000																		493,372												500,000						494,206
Notes due May 1, 2028			1.850%						1.962%						650,000																		619,823												650,000						620,402
Notes due November 9, 2028			1.950%						2.044%						550,000																		519,359												550,000						520,843
Notes due January 15, 2029			5.125%						5.260%						500,000																		512,153												500,000						516,660
Notes due May 1, 2029			3.385%						3.459%						500,000																		487,330												500,000						489,405
Notes due July 1, 2030 (a)			4.375%						4.568%						475,000																		474,698												475,000						478,958
Notes due May 1, 2031			2.300%						2.419%						650,000																		584,828												650,000						588,030
Notes due November 9, 2031			2.250%						2.322%						550,000																		488,267												550,000						490,580
Notes due August 1, 2033			5.100%						5.207%						700,000																		716,282												700,000						724,886
Notes due July 1, 2035			5.000%						5.143%						400,000																		400,556												400,000						406,046
Notes due August 1, 2053			5.350%						5.474%						900,000																		851,795												900,000						870,986
															7,725,000																		7,489,381												8,225,000						8,039,679
Euro Denominated Unsecured Debt
Notes due September 9, 2030			0.500%						0.640%						805,252																		716,458												821,758						727,308
Notes due January 24, 2032			0.875%						0.978%						575,180																		495,907												586,970						508,532
Notes due January 20, 2034			3.500%						3.836%						488,903																		434,993												498,925						441,580
Notes due April 11, 2039			4.080%						4.080%						172,554																		176,101												176,091						177,535
															2,041,889																		1,823,459												2,083,744						1,854,955
Mortgage Debt*,* secured by 2 real estate facilities with a net book value of 10.8 million			4.214%						4.214%						1,542																		1,492												1,576						1,545
Total															9,768,431																		9,314,332												10,310,320						9,896,179
Aggregate debt issuance costs and unamortized premium (discount), net															(57,905)																														(56,581)
Hedge accounting fair value adjustment (a)															(3,260)																														142
Total															$	9,707,266																													$	10,253,881

(a) The book value includes $3.3 million in adjustments related to changes in fair value attributable to hedging instruments on these notes as of March 31, 2026. See below for further discussion.

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

PUBLIC STORAGE

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2026

U.S. Dollar Denominated Unsecured Notes

On February 15, 2026, we repaid PSOC’s outstanding $500 million aggregate principal amount of senior notes bearing interest at an annual rate of 0.875% at maturity.

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 March 31, 2026, the fair value of the swaps was a liability position of $3.3 million. There was no impact to earnings for the quarter ended March 31, 2026. 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. Additionally, the Company has entered into swaps to hedge interest rate risk related to anticipated issuances of debt, which may include debt related to the Merger. The swaps have a notional amount of approximately $1.0 billion. The fair value of the swaps at March 31, 2026 was a liability position of $5.3 million, recorded in Accrued and Other Liabilities on the Consolidated Balance Sheet and an unrealized loss of $5.3 million was recognized during the three months ended March 31, 2026, reported in Interest and Other Income (Expense) in the Consolidated Statement of Income.

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 March 31, 2026. Included in these covenants are (a) a maximum Debt to Total Assets of 65% (approximately 18% at March 31, 2026) and (b) a minimum ratio of Adjusted EBITDA to Interest Expense of 1.5x (approximately 11x for the trailing twelve months ended March 31, 2026) as well as covenants limiting the amount we can encumber our properties with mortgage debt.

Euro Denominated Unsecured Notes

At March 31, 2026, 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.

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 (gains of $41.9 million and losses of $69.2 million for the three months ended March 31, 2026 and 2025, 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 March 31, 2026, 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.

PUBLIC STORAGE

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2026

At March 31, 2026, approximate principal maturities of our Notes Payable are as follows:

			Unsecured Debt						Mortgage Debt						Total
			(Amounts in thousands)
Remainder of 2026			$	650,000					$	105					$	650,105
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			1,280,252						1,061						1,281,313
Thereafter			4,436,637						13						4,436,650
			$	9,766,889					$	1,542					$	9,768,431
Weighted average effective rate			3.3%						4.2%						3.3%

Interest capitalized as real estate totaled $1.2 million and $1.6 million for the three months ended March 31, 2026 and 2025, respectively.

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 March 31, 2026, 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.

Noncontrolling interests also include the partnership interests of PSA OP not owned by the Company, including OP Units and vested LTIP units from equity awards we issue to certain officers and trustees of the Company. 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 March 31, 2026, approximately 0.24% 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.

PUBLIC STORAGE

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2026

10. Shareholders’ Equity

Preferred Shares

At March 31, 2026 and December 31, 2025, we had the following series of Cumulative Preferred Shares (“Preferred Shares”) outstanding:

																		At March 31, 2026												At December 31, 2025
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 March 31, 2026, 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.

PUBLIC STORAGE

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2026

Dividends and Distributions

Dividends and distributions paid to our common shareholders, restricted share unitholders, deferred share unitholders, and unvested LTIP unitholders, totaled $527.6 million ($3.00 per share) and $527.2 million ($3.00 per share) for the three months ended March 31, 2026 and 2025, respectively. 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 March 31, 2026 and 2025.

Preferred share dividends paid totaled $48.7 million for each of the three months ended March 31, 2026 and 2025.

11. Related Party Transactions

At March 31, 2026, 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 68 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 $0.5 million for each of the three months ended March 31, 2026 and 2025.

Throughout all periods presented, we had an approximate 35% equity interest in Shurgard. During the three months ended March 31, 2026 and 2025, we received $1.3 million and $1.2 million, respectively, of trademark license fees that Shurgard pays to us for the use of the Shurgard® trademark. We eliminated $0.5 million and $0.4 million of intra-entity profits and losses for the three months ended March 31, 2026 and 2025, 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 (expense) on our Consolidated Statements of Income.

During the three months ended March 31, 2026, we entered into agreements to sell non-qualified options (“OP Options”) to purchase common units of the Operating Partnership to two members of our Board, Shankh S. Mitra and Ronald L. Havner, 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 on February 20, 2032, and have a 10-year term.

PUBLIC STORAGE

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2026

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.

			Three Months Ended March 31,
			2026						2025
			(Amounts in thousands)
Self-storage cost of operations			$	2,969					$	3,131
Ancillary cost of operations			351						335
Real estate acquisition and development expense			84						854
General and administrative			8,484						5,963
Total			$	11,888					$	10,283

As of March 31, 2026, there was $115 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 four years.

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, OP Options and AO LTIP units outstanding for diluted net income per common share. Stock options, OP Options and AO LTIP units equivalent to 1,744,122 common shares were excluded from the computation of diluted earnings per share for the three months ended March 31, 2026, as compared to 524,239 common shares for the same period in 2025, because their effect would have been antidilutive.

PUBLIC STORAGE

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2026

The following table reconciles the numerators and denominators of the basic and diluted net income per common shares computation for the three months ended March 31, 2026 and 2025, respectively:

			Three Months Ended March 31,
			2026						2025
			(Amounts in thousands, except per share data)
Numerator for basic and dilutive net income per common share – net income allocable to common shareholders			$	476,788					$	358,230
Denominator for basic net income per share - weighted average common shares outstanding			175,519						175,419
Net effect of dilutive stock options and AO LTIP units - based on treasury stock method			409						523
Denominator for dilutive net income per share - weighted average common shares outstanding			175,928						175,942
Net income per common share:
Basic			$	2.72					$	2.04
Dilutive			$	2.71					$	2.04

14. Segment Information

Our operating segments reflect the significant components of our operations where discrete financial information is evaluated separately by our 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.

PUBLIC STORAGE

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2026

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 March 31,
			2026						2025
			(Amounts in thousands)
Self-Storage Operations Reportable Segment
Revenue			$	1,128,125					$	1,102,998
Cost of operations:
Property taxes			(124,279)						(122,902)
On-site property manager payroll			(40,529)						(39,635)
Repairs and maintenance			(26,365)						(26,910)
Utilities			(18,529)						(18,725)
Marketing			(26,342)						(26,770)
Other direct property costs			(32,184)						(30,693)
Indirect cost of operations (a):			(37,451)						(35,519)
Total cost of operations			(305,679)						(301,154)
Net operating income			822,446						801,844
Depreciation and amortization			(290,723)						(282,715)
Net income			531,723						519,129
Ancillary Operations
Revenue			89,616						80,186
Cost of operations			(34,264)						(30,693)
Net operating income			55,352						49,493
Total net income allocated to segments			587,075						568,622
Other items not allocated to segments:
Real estate acquisition and development expense			(2,428)						(7,423)
General and administrative			(30,351)						(25,184)
Interest and other income (expense)			7,778						13,234
Interest expense			(80,018)						(72,009)
Equity in earnings (loss) of unconsolidated real estate entity			6,836						3,627
Foreign currency exchange gain (loss)			41,673						(68,695)
Gain (Loss) on sale of real estate			379						45
Income tax (provision) benefit			(1,569)						(1,426)
Net income			$	529,375					$	410,791

(a) Indirect cost of operations are comprised of supervisory payroll, centralized management costs, and share-based compensation

PUBLIC STORAGE

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2026

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 March 31, 2026, there were approximately 1.5 million certificates held by self-storage customers under the program, representing aggregate coverage of approximately $7.3 billion.

Commitments

We have construction commitments representing future expected payments for construction under contract totaling $117.2 million at March 31, 2026. We expect to pay approximately $96.9 million in the remainder of 2026, $19.8 million in 2027 and $0.5 million in 2028 for these construction commitments.

We have future contractual payments on land, equipment and office space under various lease commitments totaling $72.5 million at March 31, 2026. We expect to pay approximately $3.8 million in the remainder of 2026, $4.9 million in 2027, $3.2 million in each of 2028 and 2029, $3.3 million in 2030, and $54.1 million thereafter for these commitments.

We have unfunded capital commitments related to our private equity investments totaling $45.2 million at March 31, 2026, which may be called at any time during the prescribed time periods. We have unfunded loan commitments totaling $43.9 million at March 31, 2026. We expect to fund the loans in the next twelve months, subject to the satisfaction of certain conditions.

16. Corporate Transformation Costs

In 2025, we 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 executive office from California to Texas. The initiative is intended to transform our corporate functions, improving efficiency and productivity.

Corporate transformation costs of approximately $2.7 million and $0.8 million were incurred for three months ended March 31, 2026 and 2025, respectively.

PUBLIC STORAGE

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2026

Corporate transformation costs consisting of Employee Related and Real Estate Related expenses are a component of general and administrative expense in the Consolidated Statements of Income. Employee Related costs primarily consist of termination benefits provided to employees who have been involuntarily terminated, duplicate payroll costs and retention bonuses incurred during transition periods. Real Estate Related and Other costs primarily consist of accelerated depreciation and consulting fees. The following table presents changes in accrued corporate transformation costs and cumulative costs incurred during the three months ended March 31, 2026:

						Three Months Ended March 31, 2026
						Employee Related						Real Estate Related and Other																		Total
						(Amounts in thousands)
Balances at December 31, 2025						$	954					$	—																	$	954
Costs						1,398						1,296																		2,694
Cash payments and other adjustments						(1,219)						(1,296)																		(2,515)
Balances at March 31, 2026						$	1,133					$	—																	$	1,133

17. Subsequent Events

Subsequent to March 31, 2026, we acquired or were under contract to acquire 15 self-storage facilities across four states with 1.2 million net rentable square feet for $165.5 million.

On April 1, 2026, PSOC issued $500 million of senior notes, bearing interest at a fixed rate of 5.000% per year and maturing on December 15, 2035. The senior notes are guaranteed by Public Storage. We received $493.7 million of net proceeds from the issuance. We used a portion of these proceeds to repay the $325.0 million of outstanding borrowings under our Credit Facility.