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, 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
6.000% Cumulative Preferred Shares, Series T, $0.01 par value						PSAPrT						New York Stock Exchange
6.000% Cumulative Preferred Shares, Series U, $0.01 par value						PSAPrU						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 July 21, 2026:

Common Shares of beneficial interest, $0.10 par value per share – 175,621,134 shares

Public Storage

Form 10-Q

For the Quarterly Period Ended June 30, 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			6
			Notes to Unaudited Consolidated Financial Statements			8
Item 2.			Management’s Discussion and Analysis of Financial Condition and Results of Operations			24
Item 3.			Quantitative and Qualitative Disclosures About Market Risk			45
Item 4.			Controls and Procedures			45
PART II OTHER INFORMATION (Items 3 and 4 are not applicable)
Item 1.			Legal Proceedings			46
Item 1A.			Risk Factors			46
Item 2.			Unregistered Sales of Equity Securities and Use of Proceeds			47
Item 5.			Other Information			47
Item 6.			Exhibits			47

PUBLIC STORAGE

CONSOLIDATED BALANCE SHEETS

(Amounts in thousands, except share data)

			June 30, 2026						December 31, 2025
			(Unaudited)
ASSETS
Cash and equivalents			$	259,936					$	318,095
Real estate facilities, at cost:
Land			5,999,442						5,952,072
Buildings			24,503,343						24,126,185
Total land and buildings, at cost			30,502,785						30,078,257
Accumulated depreciation			(12,008,797)						(11,468,054)
Total land and buildings, net			18,493,988						18,610,203
Construction in process			260,088						194,355
Total real estate facilities, net			18,754,076						18,804,558
Investment in unconsolidated real estate entity			364,794						388,586
Goodwill and other intangible assets, net			228,005						251,613
Notes receivable, net			173,300						142,108
Other assets			337,621						303,644
Total assets			$	20,117,732					$	20,208,604
LIABILITIES AND EQUITY
Notes payable			$	10,180,215					$	10,253,881
Accrued and other liabilities			651,705						612,889
Total liabilities			10,831,920						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, 175,621,082 shares issued (175,500,243 shares at December 31, 2025)			17,562						17,550
Paid-in capital			6,214,483						6,147,650
Accumulated deficit			(1,345,970)						(1,219,273)
Accumulated other comprehensive loss			(45,795)						(47,799)
Total Public Storage shareholders’ equity			9,190,280						9,248,128
Noncontrolling interests			95,532						93,706
Total equity			9,285,812						9,341,834
Total liabilities and equity			$	20,117,732					$	20,208,604

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,
			2026						2025						2026						2025
Revenues:
Self-storage facilities			$	1,139,947					$	1,118,658					$	2,268,072					$	2,221,656
Ancillary operations			92,934						82,436						182,550						162,622
Total revenues			1,232,881						1,201,094						2,450,622						2,384,278
Expenses:
Self-storage cost of operations			307,820						284,717						613,499						585,871
Ancillary cost of operations			36,286						33,288						70,550						63,981
Depreciation and amortization			287,757						283,216						578,480						565,931
Real estate acquisition and development expense			5,187						2,538						7,615						9,961
General and administrative			44,369						25,727						74,720						50,911
Interest expense			84,781						71,609						164,799						143,618
Total expenses			766,200						701,095						1,509,663						1,420,273
Operating income			466,681						499,999						940,959						964,005
Other increases (decreases) to net income:
Interest and other income (expense)			16,877						12,789						24,655						26,023
Equity in earnings (loss) of unconsolidated real estate entity			4,944						(2,230)						11,780						1,397
Foreign currency exchange gain (loss)			17,187						(146,070)						58,860						(214,765)
Gain (Loss) on sale of real estate			(35)						163						344						208
Income before income taxes			505,654						364,651						1,036,598						776,868
Income tax (provision) benefit			(2,716)						(3,240)						(4,285)						(4,666)
Net income			502,938						361,411						1,032,313						772,202
Allocation to noncontrolling interests			(2,978)						(2,992)						(6,080)						(5,992)
Net income allocable to Public Storage shareholders			499,960						358,419						1,026,233						766,210
Allocation of net income to:
Preferred shareholders			(48,678)						(48,673)						(97,356)						(97,351)
Restricted share units and unvested LTIP units			(1,024)						(778)						(1,831)						(1,661)
Net income allocable to common shareholders			$	450,258					$	308,968					$	927,046					$	667,198
Net income per common share:
Basic			$	2.56					$	1.76					$	5.28					$	3.80
Diluted(1)			$	2.55					$	1.76					$	5.26					$	3.79
Basic weighted average common shares outstanding			175,561						175,442						175,540						175,431
Diluted weighted average common shares outstanding			176,512						175,921						176,455						175,932

(1) Includes adjustment to numerator for net income attributable to noncontrolling interest shares

See accompanying notes.

PUBLIC STORAGE

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Amounts in thousands)

(Unaudited)

			Three Months Ended June 30,												Six Months Ended June 30,
			2026						2025						2026						2025
Net income			$	502,938					$	361,411					$	1,032,313					$	772,202
Foreign currency translation gain (loss) on investment in Shurgard			52						16,791						(10,955)						30,515
Change in fair value of derivatives designated as hedging instruments			12,967						—						12,967						—
Total comprehensive income			515,957						378,202						1,034,325						802,717
Allocation to noncontrolling interests			(3,009)						(3,000)						(6,088)						(6,003)
Comprehensive income allocable to Public Storage shareholders			$	512,948					$	375,202					$	1,028,237					$	796,714

See accompanying notes.

PUBLIC STORAGE

CONSOLIDATED STATEMENTS OF EQUITY

Three Months Ended June 30, 2026 and 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, 2026			$	4,350,000					$	17,554					$	6,184,983					$	(1,269,414)					$	(58,783)					$	9,224,340					$	95,382					$	9,319,722
Issuance of common shares in connection with share-based compensation (76,173 shares)			—						8						15,901						—						—						15,909						—						15,909
Taxes withheld upon net share settlement of restricted share units			—						—						(260)						—						—						(260)						—						(260)
Share-based compensation cost			—						—						13,952						—						—						13,952						—						13,952
Contributions by noncontrolling interests			—						—						—						—						—						—						1,013						1,013
Net income			—						—						—						502,938						—						502,938						—						502,938
Net income allocated to noncontrolling interests			—						—						—						(2,978)						—						(2,978)						2,978						—
Reallocation of equity			—						—						(93)						—						—						(93)						93						—
Distributions to:
Preferred shareholders			—						—						—						(48,678)						—						(48,678)						—						(48,678)
Noncontrolling interests			—						—						—						—						—						—						(3,965)						(3,965)
Common shareholders, restricted share unitholders and unvested LTIP unitholders ($3.00 per share/unit)			—						—						—						(527,838)						—						(527,838)						—						(527,838)
Other comprehensive income (loss)			—						—						—						—						12,988						12,988						31						13,019
Balances at June 30, 2026			$	4,350,000					$	17,562					$	6,214,483					$	(1,345,970)					$	(45,795)					$	9,190,280					$	95,532					$	9,285,812

			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)			—						—						—						(527,459)						—						(527,459)						—						(527,459)
Other comprehensive income (loss)			—						—						—						—						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

Six Months Ended June 30, 2026 and 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, 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 (120,839 shares)			—						12						23,758						—						—						23,770						—						23,770
Sale of OP Options			—						—						30,000						—						—						30,000						—						30,000
Taxes withheld upon net share settlement of restricted share units			—						—						(2,860)						—						—						(2,860)						—						(2,860)
Share-based compensation cost			—						—						25,626						—						—						25,626						—						25,626
Acquisition of noncontrolling interests			—						—						(7,460)						—						—						(7,460)						(22)						(7,482)
Contributions by noncontrolling interests			—						—						—						—						—						—						1,869						1,869
Net income			—						—						—						1,032,313						—						1,032,313						—						1,032,313
Net income allocated to noncontrolling interests			—						—						—						(6,080)						—						(6,080)						6,080						—
Reallocation of equity			—						—						(2,231)						—						—						(2,231)						2,231						—
Distributions to:
Preferred shareholders			—						—						—						(97,356)						—						(97,356)						—						(97,356)
Noncontrolling interests			—						—						—						—						—						—						(8,340)						(8,340)
Common shareholders, restricted share unitholders and unvested LTIP unitholders $6.00 per share/unit)			—						—						—						(1,055,574)						—						(1,055,574)						—						(1,055,574)
Other comprehensive income (loss)			—						—						—						—						2,004						2,004						8						2,012
Balances at June 30, 2026			$	4,350,000					$	17,562					$	6,214,483					$	(1,345,970)					$	(45,795)					$	9,190,280					$	95,532					$	9,285,812

			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 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 (loss)			—						—						—						—						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 CASH FLOWS

(Amounts in thousands)

(Unaudited)

			Six Months Ended June 30,
			2026						2025
Operating Activities:
Net income			$	1,032,313					$	772,202
Adjustments to reconcile net income to net cash flows from operating activities:
Gain on sale of real estate			(344)						(208)
Depreciation and amortization			578,480						565,931
Equity in earnings of unconsolidated real estate entity			(11,780)						(1,397)
Distributions from cumulative equity in earnings of unconsolidated real estate entity			25,478						736
Unrealized foreign currency exchange (gain) loss			(59,322)						215,716
Share-based compensation expense			24,678						20,903
Impairment (recovery) of real estate investments			(210)						3,827
Amortization of debt issuance costs			5,443						4,953
Unrealized losses on derivatives			5,857						—
Other non-cash adjustments			2,843						1,342
Changes in operating assets and liabilities, excluding the impact of acquisitions:
Other assets			(67,585)						(22,766)
Accrued and other liabilities			27,387						16,532
Net cash flows from (used in) operating activities			1,563,238						1,577,771
Investing Activities:
Capital expenditures to maintain real estate facilities			(86,529)						(71,202)
Capital expenditures for property enhancements			(18,563)						(11,207)
Capital expenditures for energy efficiencies (Solar, heat pumps, LED lighting)			(29,468)						(30,938)
Development and expansion of real estate facilities			(113,728)						(143,146)
Acquisition of real estate facilities and intangible assets			(243,230)						(303,277)
Issuance of notes receivable			(30,437)						(67,876)
Proceeds from disposition of real estate investments			27,674						2,849
Net cash flows from (used in) investing activities			(494,281)						(624,797)
Financing Activities:
Repayments of notes payable			(500,068)						(65)
Proceeds from OP Options issued			30,000						—
Financing fees paid			(4,000)						—
Issuance of notes payable, net of issuance costs			492,460						866,532
Issuance of common shares in connection with share-based compensation			23,639						7,779
Taxes paid upon net share settlement of restricted share units			(2,860)						(3,040)
Acquisition of noncontrolling interests			(7,482)						(9,061)
Contributions by noncontrolling interests			1,869						2,684
Distributions paid to preferred shareholders, common shareholders, restricted share unitholders and unvested LTIP unitholders			(1,152,334)						(1,151,691)
Distributions paid to noncontrolling interests			(8,340)						(8,925)
Net cash flows from (used in) financing activities			(1,127,116)						(295,787)
Net (decrease) increase in cash and equivalents, including restricted cash			$	(58,159)					$	657,187

See accompanying notes.

PUBLIC STORAGE

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Amounts in thousands)

(Unaudited)

			Six Months Ended June 30,
			2026						2025
Cash and equivalents at beginning of the period:			$	318,095					$	447,416
Cash and equivalents at end of the period:			$	259,936					$	1,104,603
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			$	(10,544)					$	(9,492)
Capital expenditures for property enhancements			(246)						(226)
Capital expenditures for energy efficiencies (Solar, heat pumps, LED lighting)			(583)						(3,282)
Construction or expansion of real estate facilities			(46,850)						(45,729)
Supplemental cash flow information:
Cash paid for interest, net of amounts capitalized			$	(141,903)					$	(139,685)
Cash paid for income taxes, net of refunds			(5,806)						(5,910)

See accompanying notes.

PUBLIC STORAGE

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

June 30, 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 June 30, 2026, Public Storage owned all of the general partner interests and approximately 99.75% of the limited partnership interests of PSA OP, with the remaining 0.25% 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, 2026, we owned interests in 3,196 self-storage facilities (with approximately 231.4 million net rentable square feet) located in 40 states in the United States (“U.S.”) operating under the Public Storage® name, and 0.9 million net rentable square feet of commercial and retail space. In addition, we managed 388 facilities (with approximately 28 million net rentable square feet) for third parties at June 30, 2026.

At June 30, 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 335 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 $1.05 billion at June 30, 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 Statements of Cash Flows have been reclassified to conform to the June 30, 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

June 30, 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 and six months ended June 30, 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. Acquisitions

On July 22, 2026, the Company closed its merger (the “Merger”) with National Storage Affiliates Trust (“NSA”), a Maryland real estate investment trust (“NSA”), listed on the New York Stock Exchange, in an all-stock transaction. Under the terms of the Merger, NSA common shareholders and holders of Class A units of the NSA operating partnership received 0.1400 of a share of common stock (or OP Unit, as applicable) of the Company for each issued and outstanding common share (or partnership unit) of NSA they owned. The Company issued (i) approximately 11,200,000 common shares to former holders of NSA common shares and outstanding NSA equity awards, (ii) 9,569,557 Series T Preferred Shares to former holders of NSA Series A Preferred Shares, (iii) 5,668,128 Series U Preferred Shares to former holders of NSA Series B Preferred Shares, (iv) approximately 4,100,000 OP Units to former holders of NSA OP Units, and (v) 660,371 Series T-1 Preferred Units to former holders of NSA OP’s Series A-1 Preferred Units. At closing, the Company retired NSA’s existing credit facilities and bank debt and paid off NSA’s various senior unsecured notes, while assuming certain existing mortgage debt. 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 certain investors of NSA formed a joint venture consisting of certain properties acquired from NSA. Public Storage will own 20% of the newly formed JV and will manage the portfolio and will earn customary property management, asset management and tenant reinsurance income. Additionally, the Company provided a $237 million mezzanine loan to the newly formed JV as part of its initial capitalization.

On June 22, 2026, the Company announced that it had entered into an agreement to acquire PS Canada, which is considered to be a related party transaction as it is owned by Tamara Hughes Gustavson, a current member of our Board and her adult children, for $1.2 billion with additional earn-out consideration of $288 million, contingent on achievement of certain NOI performance targets. PS Canada’s portfolio includes 68 properties and approximately 5.3 million rentable square feet across major Canadian metropolitan markets. This is currently expected to close in the third quarter of 2026, subject to the satisfaction of customary closing conditions.

PUBLIC STORAGE

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2026

4. Real Estate Facilities

Activity in real estate facilities during the six months ended June 30, 2026 is as follows:

			Six Months Ended June 30, 2026
			(Amounts in thousands)
Operating facilities, at cost:
Beginning balance			$	30,078,257
Capital expenditures to maintain real estate facilities			88,908
Capital expenditures for property enhancements			18,324
Capital expenditures for energy efficiencies (Solar, heat pumps, LED lighting)			29,051
Acquisitions			232,099
Transfers, dispositions, and retirements, net			(1,170)
Developed or expanded facilities opened for operation			57,316
Ending balance			30,502,785
Accumulated depreciation:
Beginning balance			(11,468,054)
Depreciation expense			(540,997)
Transfers, dispositions and retirements			254
Ending balance			(12,008,797)
Construction in process:
Beginning balance			194,355
Costs incurred to develop and expand real estate facilities			122,585
Transfer from Other Assets			3,500
Write-off of cancelled projects			(3,036)
Developed or expanded facilities opened for operation			(57,316)
Ending balance			260,088
Total real estate facilities, net at June 30, 2026			$	18,754,076

During the six months ended June 30, 2026, we acquired 23 self-storage facilities (1.7 million net rentable square feet of storage space), for a total cost of $243.2 million in cash. Approximately $11.1 million of the total cost was allocated to intangible assets. During the six months ended June 30, 2026, we completed development and redevelopment activities costing $57.3 million, adding 0.4 million net rentable square feet of self-storage space. Construction in process at June 30, 2026 consisted of projects to develop new self-storage facilities and expand existing self-storage facilities.

PUBLIC STORAGE

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2026

5. Goodwill and Other Intangible Assets

Goodwill and other intangible assets consisted of the following:

			At June 30, 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			1,082,619						(1,039,281)						43,338						1,071,488						(1,004,542)						66,946
Total goodwill and other intangible assets			$	1,267,286					$	(1,039,281)					$	228,005					$	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 $15.5 million and $34.7 million for the three and six months ended June 30, 2026, respectively, and $20.5 million and $43.8 million for the same periods in 2025. During the six months ended June 30, 2026, intangibles increased $11.1 million, in connection with the acquisition of real estate facilities (Note 4).

The estimated future amortization expense for our finite-lived intangible assets at June 30, 2026 is as follows:

Year						Amount
(Amounts in Thousands)
Remainder of 2026						$	24,228
2027						14,103
2028						1,546
2029						229
2030						212
Thereafter						3,020
Total						$	43,338

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 June 30, 2026 and December 31, 2025, we had notes receivable of $173.3 million and $142.1 million, respectively, with average annual interest rates of 7.6% and 7.9%, respectively. At June 30, 2026, we had unfunded loan commitments of $44.3 million expected to close in the next twelve months, subject to the satisfaction of certain conditions. As of June 30, 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

June 30, 2026

7. Credit Facility and Commercial Paper Program

On June 25, 2026, PSOC entered into a fourth amended and restated credit agreement, which provides for (i) a $3.0 billion unsecured revolving credit facility maturing on June 25, 2030 (the “Revolver”) with outstanding borrowings thereunder bearing interest at a per annum rate ranging from SOFR plus 0.625% to SOFR plus 1.350% depending upon our credit rating (SOFR plus 0.650% at June 30, 2026) and (ii) a $500 million unsecured delayed draw term loan maturing on June 25, 2031 (the “Term Loan” and together with the Revolver, the “Credit Facilities”) that is available to be drawn in up to four advances on or prior to December 22, 2026, with drawn amounts thereunder bearing interest at a per annum rate ranging from SOFR plus 0.675% to 1.550% depending upon our credit rating (SOFR plus 0.700% at June 30, 2026). The Revolver replaces in its entirety the Company’s $1.5 billion revolving credit facility that was scheduled to mature on June 12, 2027. The Revolver includes an option to extend its maturity date by up to one additional year with the payment of an extension fee, which in the case of a full one-year extension would be in the amount of 0.125% of the extended commitment amount. The aggregate commitments under the Revolver may be increased and one or more additional term loans may be incurred by up to $1.5 billion in the aggregate pursuant to an accordion expansion feature, the exercise of which is subject to obtaining lender commitments. In addition, 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, 2026) is payable on the aggregate commitments under the Revolver. At June 30, 2026, we had no outstanding borrowings under the Credit Facility. We had undrawn standby letters of credit, which reduce our borrowing capacity, totaling $19.3 million at June 30, 2026 ($19.4 million at December 31, 2025). The Credit Facility contains various customary affirmative, negative and financial maintenance covenants with which we were in compliance at June 30, 2026. Public Storage has provided a full and unconditional guarantee of PSOC’s obligations under the Credit Facilities.

The Company has established a commercial paper note program and may issue up to $1.0 billion of unsecured commercial paper notes that bear interest at variable rates and have varying maturities (generally 30 days or less, with a maximum of 364 days). The commercial paper notes are issued under customary terms in the commercial paper market and are issued at a discount from par or, alternatively, can be issued at par and bear varying interest rates on a fixed or floating basis. The net proceeds from the issuances of the notes are used for general working capital and other general corporate purposes. General corporate purposes may include, but are not limited to, the repayment of other debt and selective development, redevelopment, lending or acquisition of properties. The commercial paper notes issued under the commercial paper program will rank pari passu with all of Public Storage’s other senior unsecured debt and will be fully and unconditionally guaranteed by Public Storage. Outstanding commercial paper notes have been included in unsecured credit facility and commercial paper on the Company’s consolidated balance sheets. At June 30, 2026, there were no issuances outstanding under the commercial paper program.

PUBLIC STORAGE

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

June 30, 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 June 30, 2026 and December 31, 2025 are set forth in the tables below:

															June 30, 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%						0.000%						$	—																	$	—											$	500,000					$	497,958
Notes due November 9, 2026			1.500%						1.640%						650,000																		643,625												650,000						636,828
Notes due April 16, 2027			SOFR+0.70%						4.368%						700,000																		701,779												700,000						703,891
Notes due September 15, 2027			3.094%						3.218%						500,000																		492,953												500,000						494,206
Notes due May 1, 2028			1.850%						1.962%						650,000																		620,723												650,000						620,402
Notes due November 9, 2028			1.950%						2.044%						550,000																		519,054												550,000						520,843
Notes due January 15, 2029			5.125%						5.260%						500,000																		508,858												500,000						516,660
Notes due May 1, 2029			3.385%						3.459%						500,000																		485,937												500,000						489,405
Notes due July 1, 2030 (a)			4.375%						4.568%						475,000																		471,817												475,000						478,958
Notes due May 1, 2031			2.300%						2.419%						650,000																		583,194												650,000						588,030
Notes due November 9, 2031			2.250%						2.322%						550,000																		487,288												550,000						490,580
Notes due August 1, 2033			5.100%						5.207%						700,000																		708,266												700,000						724,886
Notes due July 1, 2035			5.000%						5.245%						400,000																		398,567												400,000						406,046
Notes due December 15, 2035			5.000%						5.195%						500,000																		494,796												—						—
Notes due August 1, 2053			5.350%						5.474%						900,000																		863,934												900,000						870,986
															8,225,000																		7,980,791												8,225,000						8,039,679
Euro Denominated Unsecured Debt
Notes due September 9, 2030			0.500%						0.640%						798,483																		711,700												821,758						727,308
Notes due January 24, 2032			0.875%						0.978%						570,345																		495,680												586,970						508,532
Notes due January 20, 2034			3.500%						3.836%						484,793																		432,104												498,925						441,580
Notes due April 11, 2039			4.080%						4.080%						171,104																		171,773												176,091						177,535
															2,024,725																		1,811,257												2,083,744						1,854,955
Mortgage Debt*,* secured by 2 real estate facilities with a net book value of 11.0 million			4.187%						4.187%						1,507																		1,455												1,576						1,545
Total															10,251,232																		$	9,793,503											10,310,320						$	9,896,179
Aggregate debt issuance costs and unamortized premium (discount), net															(62,677)																														(56,581)
Hedge accounting fair value adjustment (a)															(8,340)																														142
Total															$	10,180,215																													$	10,253,881

(a) The book value includes $8.3 million in adjustments related to changes in fair value attributable to hedging instruments on these notes as of June 30, 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

June 30, 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.

On April 6, 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.

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 June 30, 2026, the fair value of the swaps was a liability position of $8.3 million. 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.

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 June 30, 2026 was an asset position of $7.1 million, which are recorded in Other Assets on the Consolidated Balance Sheet. The company recognized unrealized losses of $0.6 million and $5.9 million during the three and six months ended June 30, 2026, respectively, reported in Interest and Other Income (Expense) in the Consolidated Statement of Income. During the three months ended June 30, 2026 we designated these swaps as Cash Flow Hedges and recognized $13.0 million in unrealized gains, which are included in Other Comprehensive Income related to change in fair value from the date of designation through June 30, 2026. Subsequent to quarter end, we settled $500 million of the swaps as part of the July 20, 2026 senior notes issuance.

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, 2026. Included in these covenants are (a) a maximum Debt to Total Assets of 65% (approximately 18% at June 30, 2026) and (b) a minimum ratio of Adjusted EBITDA to Interest Expense of 1.5x (approximately 11x for the trailing twelve months ended June 30, 2026) as well as covenants limiting the amount we can encumber our properties with mortgage debt.

Euro Denominated Unsecured Notes

At June 30, 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 $17.9 million and $59.8 million for the three and six months ended June 30, 2026, respectively, as compared to losses of $147.1 million and $216.3 million for the three and six months ended June 30, 2025, respectively)

PUBLIC STORAGE

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2026

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, 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.

At June 30, 2026, approximate principal maturities of our Notes Payable are as follows:

			Unsecured Debt						Mortgage Debt						Total
			(Amounts in thousands)
Remainder of 2026			$	650,000					$	70					$	650,070
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			1,273,483						1,061						1,274,544
Thereafter			4,926,242						13						4,926,255
			$	10,249,725					$	1,507					$	10,251,232
Weighted average effective rate			3.3%						4.2%						3.3%

Interest capitalized as real estate totaled $2.4 million and $3.1 million for the six months ended June 30, 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 June 30, 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 June 30, 2026, approximately 0.25% 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

June 30, 2026

10. Shareholders’ Equity

Preferred Shares

At June 30, 2026 and December 31, 2025, we had the following series of Cumulative Preferred Shares (“Preferred Shares”) outstanding:

																		At June 30, 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 June 30, 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

June 30, 2026

At-the-Market (“ATM”) Program

In 2024, we entered into an ATM program under which, we may offer and sell up to an aggregate gross sales price of $2.0 billion of the Company’s common shares either (1) by us to, or through, a consortium of banks acting as our sales agents or (2) by a consortium of banks acting as forward sellers. As of June 30, 2026, we have sold 425,278 common shares subject to forward sale confirmations which have not yet settled, at a weighted average initial gross price of $324.98 per share. We currently expect to fully settle forward sale agreements outstanding by December 10, 2027, representing $137.4 million in net proceeds. As of June 30, 2026, we had approximately $1.8 billion remaining for future issuance under our ATM program. We anticipate maintaining the availability of our ATM program in the future, including the replenishment of authorized shares issuable thereunder.

Dividends and Distributions

Dividends and distributions paid to our common shareholders, restricted share unitholders, deferred share unitholders, and unvested LTIP unitholders, totaled $527.4 million ($3.00 per share) and $527.2 million ($3.00 per share) for the three months ended June 30, 2026 and 2025, respectively, and $1.06 billion ($6.00 per share/unit) and $1.05 billion ($6.00 per share/unit) for the six months ended June 30, 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 June 30, 2026 and 2025, and $0.6 million for each of the six months ended June 30, 2026 and 2025.

Preferred share dividends paid totaled $48.7 million for each of the three months ended June 30, 2026 and 2025, and $97.4 million for each of the six months ended June 30, 2026 and 2025.

11. Related Party Transactions

At June 30, 2026, Tamara Hughes Gustavson, a current member of our Board, held less than a 0.1% equity interest in, and is a manager of, PS Canada, a company that owns 68 self-storage facilities in Canada. Ms. Gustavson’s adult children, own the remaining equity interest in PS Canada. 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. 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 for both of the six months ended June 30, 2026 and 2025. As described in Note 3, on June 22, 2026, we entered into an agreement to acquire PS Canada. The transaction is currently expected to close in the third quarter of 2026, subject to the satisfaction of customary closing conditions.

Throughout all periods presented, we had an approximate 35% equity interest in Shurgard. During the six months ended June 30, 2026 and 2025, we received $2.7 million and $2.4 million, respectively, of trademark license fees that Shurgard pays to us for the use of the Shurgard® trademark. We eliminated $0.9 million and $0.8 million of intra-entity profits and losses for the six months ended June 30, 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 six months ended June 30, 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

June 30, 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 June 30,												Six Months Ended June 30,
			2026						2025						2026						2025
			(Amounts in thousands)
Self-storage cost of operations			$	3,130					$	2,965					$	6,099					$	6,096
Ancillary cost of operations			380						338						731						673
Real estate acquisition and development expense			260						259						344						1,113
General and administrative			9,020						7,059						17,504						13,022
Total			$	12,790					$	10,621					$	24,678					$	20,904

As of June 30, 2026, there was $103.5 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.

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 net income per common share based upon net income allocable to common shareholders divided by the weighted-average common shares. For diluted net income per common share, net income allocable to common shareholders is adjusted to add back the dilutive effects of if-converted non controlling interest shares, divided by the weighted-average common shares adjusted for the impact of dilutive stock options, OP Options, AO LTIP units, Forward ATM Offerings, and the assumed conversion of noncontrolling interest shares under the if-converted method when their effect is dilutive. Stock options, OP Options, AO LTIP units and Forward ATM Offerings equivalent to 1,923,300 common shares were excluded from the computation of diluted earnings per share for the three and six months ended June 30, 2026, as compared to 552,302 common shares for the same period in 2025, because their effect would have been antidilutive.

PUBLIC STORAGE

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2026

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, 2026 and 2025, respectively:

			Three Months Ended June 30,												Six Months Ended June 30,
			2026						2025						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			$	450,258					$	308,968					$	927,046					$	667,198
Effect of assumed conversion of noncontrolling interest shares			665						—						1,513						—
Numerator for dilutive net income per common share- net income allocable to common shareholders			$	450,923					$	308,968					$	928,559					$	667,198
Denominator for basic net income per share - weighted average common shares outstanding			175,561						175,442						175,540						175,431
Net effect of dilutive stock options and AO LTIP units - based on treasury stock method			481						479						445						501
Net effect of noncontrolling interest shares - based on if-converted method			470						—						470						—
Denominator for dilutive net income per share - weighted average common shares outstanding			176,512						175,921						176,455						175,932
Net income per common share:
Basic			$	2.56					$	1.76					$	5.28					$	3.80
Dilutive			$	2.55					$	1.76					$	5.26					$	3.79

PUBLIC STORAGE

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2026

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) 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

June 30, 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 June 30,												Six Months Ended June 30,
			2026						2025						2026						2025
			(Amounts in thousands)
Self-Storage Operations Reportable Segment
Revenue			$	1,139,947					$	1,118,658					$	2,268,072					$	2,221,656
Cost of operations:
Property taxes			(133,117)						(120,308)						(257,396)						(243,210)
On-site property manager payroll			(39,936)						(39,448)						(80,465)						(79,083)
Repairs and maintenance			(24,414)						(22,984)						(50,779)						(49,894)
Utilities			(14,505)						(13,493)						(33,034)						(32,218)
Marketing			(25,954)						(23,890)						(52,296)						(50,660)
Other direct property costs			(31,899)						(29,689)						(64,083)						(60,382)
Indirect cost of operations (a):			(37,995)						(34,905)						(75,446)						(70,424)
Total cost of operations			(307,820)						(284,717)						(613,499)						(585,871)
Net operating income			832,127						833,941						1,654,573						1,635,785
Depreciation and amortization			(287,757)						(283,216)						(578,480)						(565,931)
Net income			544,370						550,725						1,076,093						1,069,854
Ancillary Operations
Revenue			92,934						82,436						182,550						162,622
Cost of operations			(36,286)						(33,288)						(70,550)						(63,981)
Net operating income			56,648						49,148						112,000						98,641
Total net income allocated to segments			601,018						599,873						1,188,093						1,168,495
Other items not allocated to segments:
Real estate acquisition and development expense			(5,187)						(2,538)						(7,615)						(9,961)
General and administrative			(44,369)						(25,727)						(74,720)						(50,911)
Interest and other income (expense)			16,877						12,789						24,655						26,023
Interest expense			(84,781)						(71,609)						(164,799)						(143,618)
Equity in earnings (loss) of unconsolidated real estate entity			4,944						(2,230)						11,780						1,397
Foreign currency exchange gain (loss)			17,187						(146,070)						58,860						(214,765)
Gain (Loss) on sale of real estate			(35)						163						344						208
Income tax (provision) benefit			(2,716)						(3,240)						(4,285)						(4,666)
Net income			$	502,938					$	361,411					$	1,032,313					$	772,202

(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

June 30, 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 June 30, 2026, there were approximately 1.6 million certificates held by self-storage customers under the program, representing aggregate coverage of approximately $7.5 billion.

Commitments

We have construction commitments representing future expected payments for construction under contract totaling $152.4 million at June 30, 2026. We expect to pay approximately $75.7 million in the remainder of 2026, $73.8 million in 2027 and $2.9 million in 2028 for these construction commitments.

We have future contractual payments on land, equipment and office space under various lease commitments totaling $71.2 million at June 30, 2026. We expect to pay approximately $2.6 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 $54.0 million thereafter for these commitments.

We have unfunded capital commitments related to our private equity investments totaling $44.6 million at June 30, 2026, which may be called at any time during the prescribed time periods. We have unfunded loan commitments totaling $44.3 million at June 30, 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 $6.9 million and $1.8 million were incurred for the six months ended June 30, 2026 and 2025, respectively.

PUBLIC STORAGE

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

June 30, 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 six months ended June 30, 2026:

												Six Months Ended June 30, 2026
																								Employee Related						Real Estate Related and Other						Total
																					(Amounts in thousands)
Balances at December 31, 2025																								$	954					$	—					$	954
Costs																								2,313						4,619						6,932
Cash payments and other adjustments																								(1,929)						(4,619)						(6,548)
Balances at June 30, 2026																								$	1,338					$	—					$	1,338

17. Subsequent Events

On July 20, 2026, PSOC issued $900 million aggregate principal amount of senior notes at an effective interest rate of 4.855%, including $400 million aggregate principal amount of fixed rate senior notes bearing interest at an annual rate of 4.700% maturing on February 1, 2032 and $500 million aggregate principal amount of fixed rate senior notes bearing interest at an annual rate of 5.150% maturing on August 15, 2036. The senior notes are guaranteed by Public Storage. We received $886 million of net proceeds from the issuance.

On July 22, 2026, the Company closed its merger with NSA Trust in an all-stock transaction. See Note 3 “Acquisitions” for details.

As of July 29, 2026 we had $800 million of commercial paper outstanding with a weighted average maturity of eight days.

Subsequent to June 30, 2026, we acquired or were under contract to acquire 21 self-storage facilities across six states with 1.5 million net rentable square feet for $211.7 million.

Subsequent to June 30, 2026, we entered into forward sales agreements under our ATM program for a total of 370,731 common shares representing expected net proceeds of $120.8 million (when settled). Unsettled forward sales agreements under our ATM program through July 29, 2026 total 796,009 common shares representing expected net proceeds of $258.2 million (when settled).