Public Storage Reports Results for the Three and Nine Months Ended September 30, 2025

GLENDALE, Calif.--( BUSINESS WIRE)--Public Storage (NYSE:PSA) announced today operating results for the three and nine months ended September 30, 2025.

“Public Storage’s third quarter results reflect differentiated strategies that continue to drive our performance,” said Joe Russell, President and Chief Executive Officer. “As industry fundamentals stabilize, new competitive supply declines, and acquisition market activity increases, we are well-positioned to continue advancing our compounding returns platform. We are raising our 2025 outlook for the second consecutive quarter based on outperformance in NOI growth, acquisition activity, and Core FFO per share growth.”

Highlights for the Three Months Ended September 30, 2025

Operating Results for the Three Months Ended September 30, 2025

For the three months ended September 30, 2025, net income allocable to our common shareholders was $461.4 million or $2.62 per diluted common share, compared to $380.7 million or $2.16 per diluted common share for the same period in 2024, representing an increase of $80.7 million or $0.46 per diluted common share. The increase is due primarily to (i) a $71.5 million increase in foreign currency gain primarily associated with our Euro denominated notes payable and (ii) a $21.7 million increase in self-storage net operating income, partially offset by (iii) a $10.0 million increase in depreciation expense and (iv) a $5.4 million increase in interest expense.

The $21.7 million increase in self-storage net operating income for the three months ended September 30, 2025 as compared to the same period in 2024 is a result of a $21.5 million increase attributable to our Non-Same Store Facilities (as defined below) reflecting the impact of newly acquired facilities and the lease-up of development/expansion properties.

Operating Results for the Nine Months Ended September 30, 2025

For the nine months ended September 30, 2025, net income allocable to our common shareholders was $1.1 billion or $6.42 per diluted common share, compared to $1.3 billion or $7.43 per diluted common share for the same period in 2024, representing a decrease of $179.7 million or $1.01 per diluted common share. The decrease is due primarily to (i) a $193.3 million increase in foreign currency exchange losses primarily associated with our Euro denominated notes payable, and (ii) a $10.4 million decrease in equity in earnings of unconsolidated real estate entities partially offset by (iii) a $42.6 million increase in self-storage net operating income.

The $42.6 million increase in self-storage net operating income in the nine months ended September 30, 2025 as compared to the same period in 2024 is a result of a $47.0 million increase attributable to our Non-Same Store Facilities, partially offset by a $4.4 million decrease attributable to our Same Store Facilities. Revenues for the Same Store Facilities increased 0.1% or $2.8 million in the nine months ended September 30, 2025 as compared to the same period in 2024, due primarily to higher realized annual rent per occupied square foot offset by a decline in occupancy. Cost of operations for the Same Store Facilities increased by 1.0% or $7.2 million in the nine months ended September 30, 2025 as compared to the same period in 2024, due primarily to increased property tax expense and centralized management costs, partially offset by decreased on-site property manager payroll expense and marketing. The increase in net operating income of $47.0 million for the Non-Same Store Facilities is due primarily to the impact of newly acquired properties and the lease-up of development/expansion properties.

Funds from Operations

Funds from Operations (“FFO”) and FFO per diluted common share (“FFO per share”) are non-GAAP measures defined by Nareit. We believe that FFO and FFO per share are useful to REIT investors and analysts in measuring our performance because Nareit’s definition of FFO excludes items included in net income that do not relate to or are not indicative of our operating and financial performance. FFO represents net income before real estate-related depreciation and amortization, which is excluded because it is based upon historical costs and assumes that building values diminish ratably over time, while we believe that real estate values fluctuate due to market conditions. FFO also excludes gains or losses on sale of real estate assets and real estate impairment charges, which are also based upon historical costs and are impacted by historical depreciation. FFO and FFO per share are not a substitute for net income or earnings per share. FFO is not a substitute for net cash flow in evaluating our liquidity or ability to pay dividends, because it excludes investing and financing activities presented on our consolidated statements of cash flows. In addition, other REITs may compute these measures differently, so comparisons among REITs may not be helpful.

For the three months ended September 30, 2025, FFO was $4.33 per diluted common share as compared to $3.80 per diluted common share for the same period in 2024, representing an increase of 13.9%, or $0.53 per diluted common share.

For the nine months ended September 30, 2025, FFO was $11.48 per diluted common share as compared to $12.34 per diluted common share for the same period in 2024, representing a decrease of 7.0%, or $0.86 per diluted common share.

We also present “Core FFO” and “Core FFO per share” non-GAAP measures that represent FFO and FFO per share excluding the impact of (i) foreign currency exchange gains and losses, (ii) charges related to the redemption of preferred securities, and (iii) certain other non-cash and/or nonrecurring income or expense items primarily representing, with respect to the periods presented below, the impact of corporate transformation costs, loss contingencies, due diligence costs incurred in pursuit of strategic transactions, unrealized gain or loss on private equity investments, and amortization of acquired non real estate-related intangibles. We review Core FFO and Core FFO per share to evaluate our ongoing operating performance and we believe they are used by investors and REIT analysts in a similar manner. However, Core FFO and Core FFO per share are not substitutes for net income and net income per share. Because other REITs may not compute Core FFO or Core FFO per share in the same manner as we do, may not use the same terminology or may not present such measures, Core FFO and Core FFO per share may not be comparable among REITs.

The following table reconciles net income to FFO and Core FFO and reconciles diluted earnings per share to FFO per share and Core FFO per share (unaudited):

Three Months Ended September 30,

Nine Months Ended September 30,

2025

2024

Percentage

Change

2025

2024

Percentage

Change

(Amounts in thousands, except per share data)

Reconciliation of Net Income to FFO and Core FFO:

Net income allocable to common shareholders

461,408

380,712

21.2

1,128,606

1,308,287

(13.7)

Eliminate items excluded from FFO:

Real estate-related depreciation and amortization

287,472

277,652

847,702

839,749

Real estate-related depreciation from unconsolidated real estate investment

14,706

12,013

45,664

31,531

Real estate-related depreciation allocated to noncontrolling interests and restricted share unitholders and unvested LTIP unitholders

(2,009

)

(2,192

)

(6,338

)

(5,904

)

Impairment write-down of real estate investments

119

—

3,946

—

Gains on sale of real estate investments, including our equity share from investment

(502

)

(554

)

(710

)

(1,428

)

FFO allocable to common shares

761,194

667,631

14.0

2,018,870

2,172,235

(7.1)

Eliminate the impact of items excluded from Core FFO, including our equity share from investment:

Foreign currency exchange (gain) loss

(899

)

70,572

213,866

20,580

Unrealized gain on private equity investments

(6,148

)

(2,626

)

(4,360

)

(4,740

)

Corporate transformation costs

1,376

—

3,178

—

Other items

3,167

2,666

4,082

6,031

Core FFO allocable to common shares

758,690

738,243

2.8

2,235,636

2,194,106

1.9

Reconciliation of Diluted Earnings per Share to FFO per Share and Core FFO per Share:

Diluted earnings per share

2.62

2.16

21.3

6.42

7.43

(13.6)

Eliminate amounts per share excluded from FFO:

Real estate-related depreciation and amortization

1.71

1.64

5.04

4.92

Impairment write-down of real estate investments

—

0.02

—

Gains on sale of real estate investments, including our equity share from investment

—

(0.01

)

FFO per share

4.33

3.80

13.9

11.48

12.34

(7.0)

Eliminate the per share impact of items excluded from Core FFO, including our equity share from investment:

Foreign currency exchange (gain) loss

(0.01

)

0.40

1.20

0.11

Unrealized gain on private equity investments

(0.03

)

(0.01

)

(0.02

)

(0.03

)

Corporate transformation costs

0.01

—

0.02

—

Other items

0.01

0.03

0.04

Core FFO per share

4.31

4.20

2.6

12.71

12.46

2.0

Diluted weighted average common shares

175,884

175,866

175,916

176,074

Property Operations – Same Store Facilities

The Same Store Facilities consist of facilities we have owned and operated on a stabilized level of occupancy, revenues, and cost of operations since January 1, 2023. Our Same Store Facilities increased from 2,507 facilities at December 31, 2024 to 2,565 at September 30, 2025. The composition of our Same Store Facilities allows us more effectively to evaluate the ongoing performance of our self-storage portfolio in 2023, 2024, and 2025 and exclude the impact of fill-up of unstabilized facilities, which can significantly affect operating trends. We believe investors and analysts use Same Store Facilities information in a similar manner. However, because other REITs may not compute Same Store Facilities in the same manner as we do, may not use the same terminology or may not present such a measure, Same Store Facilities may not be comparable among REITs. The following table summarizes the historical operating results (for all periods presented) of these 2,565 facilities (175.3 million net rentable square feet) that represent approximately 77% of the aggregate net rentable square feet of our U.S. consolidated self-storage portfolio at September 30, 2025 (unaudited):

Three Months Ended September 30,

Nine Months Ended September 30,

2025

2024

Change (e)

2025

2024

Change (f)

(Dollar amounts in thousands, except for per square foot data)

Revenues (a):

Rental income

916,590

915,614

0.1

2,731,714

2,728,749

0.1

Late charges and administrative fees

32,335

33,079

(2.2)

96,947

97,118

(0.2)

Total revenues

948,925

948,693

—

2,828,661

2,825,867

0.1

Direct cost of operations (a):

Property taxes

93,983

89,566

4.9

287,503

275,015

4.5

On-site property manager payroll

32,169

32,928

(2.3)

95,744

101,968

(6.1)

Repairs and maintenance

18,108

19,269

(6.0)

58,838

58,366

0.8

Utilities

13,135

13,726

(4.3)

38,054

37,598

1.2

Marketing

21,313

22,499

(5.3)

62,313

64,971

(4.1)

Other direct property costs

24,945

26,899

(7.3)

75,336

76,870

(2.0)

Total direct cost of operations

203,653

204,887

(0.6)

617,788

614,788

0.5

Direct net operating income (b)

745,272

743,806

0.2

2,210,873

2,211,079

—

Indirect cost of operations (a):

Supervisory payroll

(10,315

)

(10,273

)

0.4

(31,994

)

(31,055

)

3.0

Centralized management costs

(15,476

)

(14,168

)

9.2

(46,313

)

(42,697

)

8.5

Share-based compensation

(2,341

)

(2,439

)

(4.0)

(7,341

)

(7,718

)

(4.9)

Net operating income (c)

717,140

716,926

—

2,125,225

2,129,609

(0.2)

Gross margin (before indirect costs, depreciation and amortization expense)

78.5

78.4

0.1

78.2

—

Gross margin (before depreciation and amortization expense)

75.6

—

75.1

75.4

(0.3)

Weighted average for the period:

Square foot occupancy

92.2

92.7

(0.5)

92.1

92.6

(0.5)

Realized annual rental income per (d):

Occupied square foot

22.67

22.53

0.6

22.55

22.41

0.6

Available square foot

20.91

20.89

0.1

20.77

20.75

0.1

At September 30:

Square foot occupancy

90.7

91.4

(0.7)

Annual contract rent per occupied square foot (e)

22.88

22.86

0.1

(a)

Revenues and cost of operations do not include tenant reinsurance and merchandise sales and expenses generated at the facilities.

(b)

Direct net operating income (“Direct NOI”), a subtotal within NOI, is a non-GAAP financial measure that excludes the impact of supervisory payroll, centralized management costs, and share-based compensation in addition to depreciation and amortization expense. We utilize direct net operating income in evaluating property performance and in evaluating property operating trends as compared to our competitors.

(c)

See reconciliation of self-storage NOI to net income provided below.

(d)

Realized annual rent per occupied square foot is computed by dividing rental income, before late charges and administrative fees, by the weighted average occupied square feet for the period. Realized annual rent per available square foot (“REVPAF”) is computed by dividing rental income, before late charges and administrative fees, by the total available net rentable square feet for the period. These measures exclude late charges and administrative fees in order to provide a better measure of our ongoing level of revenue. Late charges are dependent upon the level of delinquency, and administrative fees are dependent upon the level of move-ins. In addition, the rates charged for late charges and administrative fees can vary independently from rental rates. These measures take into consideration promotional discounts, which reduce rental income.

(e)

Annual contract rent represents the agreed upon monthly rate that is paid by our tenants in place at the time of measurement. Contract rates are initially set in the lease agreement upon move-in, and we adjust them from time to time with notice. Contract rent excludes other fees that are charged on a per-item basis, such as late charges and administrative fees, does not reflect the impact of promotional discounts, and does not reflect the impact of rents that are written off as uncollectible.

(f)

Represents the absolute nominal change with respect to gross margin and square foot occupancy, and the percentage change with respect to all other items.

Property Operations – Non-Same Store Facilities

In addition to the 2,565 Same Store Facilities, we have 587 facilities that were not stabilized with respect to occupancies, revenues, or cost of operations since January 1, 2023 or that we did not own as of January 1, 2023, including 260 facilities that were acquired, 40 newly developed facilities, 63 facilities that have been expanded or are targeted for expansion, and 224 facilities that are unstabilized because they are undergoing fill-up or were damaged in casualty events (collectively, the “Non-Same Store Facilities”). Operating data, metrics, and further commentary with respect to these facilities, including detail by vintage, are included in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” under “Analysis of Net Income – Self-Storage Operations” in our September 30, 2025 Form 10-Q.

Investing and Capital Activities

During the three months ended September 30, 2025, we acquired 49 self storage facilities (11 in Florida, seven in Texas, six in Idaho, four in New Jersey, three each in Georgia and South Carolina, two each in California, Illinois, Massachusetts, Oklahoma, and one each in Colorado, Louisiana, Maryland, Michigan, North Carolina, Virginia, and Wisconsin) with 3.4 million net rentable square feet for $511.4 million. During the nine months ended September 30, 2025, we acquired 74 self-storage facilities (20 in Florida, nine in Texas, seven in Idaho, six in Georgia, five each in Colorado, New Jersey, and South Carolina, two each in California, Illinois, Massachusetts, Ohio and Oklahoma, and one each in Louisiana, Maryland, Michigan, North Carolina, Pennsylvania, Virginia, and Wisconsin) with 5.2 million net rentable square feet for $814.6 million. Subsequent to September 30, 2025, we acquired or were under contract to acquire 12 self-storage facilities across eight states with 0.9 million net rentable square feet for $119.9 million.

During the three months ended September 30, 2025, we initiated various expansion projects, which contributed 0.3 million net rentable square feet (0.2 million in California, 0.1 million in Nevada, and less than 0.1 million in Texas) at a cost of $60 million. During the nine months ended September 30, 2025, we opened five newly developed facilities and various expansion projects, which together contributed 1.1 million net rentable square feet (0.6 million in California, 0.4 million in Texas, 0.1 million in Hawaii, and less than 0.1 million in New York and Nevada) at a cost of $268.8 million. At September 30, 2025, we had various facilities in development (expected to contribute 2.6 million net rentable square feet) estimated to cost $483.8 million and various expansion projects (expected to contribute 1.3 million net rentable square feet) estimated to cost $165.4 million. In total, these development and expansion projects are expected to deliver 3.9 million net rentable square feet at an aggregate cost of approximately $649.2 million. Our aggregate 3.9 million net rentable square foot pipeline of development and expansion facilities includes 2.2 million in Florida, 0.5 million in California, 0.3 million in Texas, 0.2 million in South Carolina, and 0.1 million each in Arizona, Colorado, Georgia, Washington DC, Idaho, North Carolina, and Tennessee. The remaining $381.4 million of development costs for these projects are expected to be incurred primarily in the next 18 to 24 months.

Distributions Declared

On October 29, 2025, our Board of Trustees declared a regular common quarterly dividend of $3.00 per common share. The Board also declared dividends with respect to our various series of preferred shares. All the dividends are payable on December 30, 2025 to shareholders of record as of December 15, 2025.

Outlook for the Year Ending December 31, 2025

Set forth below are our current expectations with respect to full year 2025 Core FFO per share and certain underlying assumptions. In reliance on the exception provided by applicable SEC rules, we do not provide guidance for GAAP net income per share, the most comparable GAAP financial measure, or a reconciliation of 2025 Core FFO per share to GAAP net income per share because we are unable to reasonably predict the following items which are included in GAAP net income: (i) gains or losses on sales of real estate investments, (ii) foreign currency exchange gains and losses, (iii) charges related to the redemption of preferred securities, and (iv) certain other significant non-cash and/or nonrecurring income or expense items. The actual amounts for any and all of these items could significantly impact our 2025 GAAP net income and, as disclosed in our historical financial results, have significantly impacted GAAP net income in prior periods.

2025 Guidance

Current Guidance

Prior Guidance

Low

High

Low

High

(Dollar amounts in thousands, except per share data)

Same Store:

Revenue growth

(0.3)%

0.3%

(1.3)%

0.8%

Expense growth (a)

1.8%

2.8%

2.3%

3.0%

Net operating income growth (a)

(1.2)%

(0.2)%

(2.6)%

0.3%

Consolidated:

Non-Same Store net operating income

$475,000

$485,000

$465,000

$475,000

Ancillary net operating income

$195,000

$200,000

$205,000

Core general and administrative expense (b)

$91,000

$97,000

$91,000

$97,000

Interest expense

$305,000

$304,000

Preferred dividends

$195,000

Capital Activity:

Development openings

$370,000

Capital expenditures:

Maintenance of real estate facilities

$175,000

$150,000

Energy efficiencies (c)

$75,000

$50,000

Core FFO per share (a):

$16.70

$17.00

$16.45

$17.00

Core FFO per share growth from 2024 Core FFO per share

0.2%

2.0%

(1.3)%

2.0%

Non-Same Store Net Operating Income Beyond 2025:

Incremental Non-Same Store NOI to stabilization (2026 and beyond)

$130,000

$110,000

(a)

Based on total same store cost of operations and net operating income (i.e., not direct), as reflected in the summary table for Same Store Facilities above.

(b)

Excludes any significant non-recurring general and administrative expense items.

(c)

Energy efficiency initiatives primarily include solar panel installation.

Third Quarter Conference Call

A conference call is scheduled for October 30, 2025 at 9:00 a.m. (PT) to discuss the third quarter earnings results. The domestic dial-in number is (877) 407-9039, and the international dial-in number is (201) 689-8470. A simultaneous audio webcast may be accessed by using the link at www.publicstorage.com under “About Us, Investor Relations, News and Events, Event Calendar.” A replay of the conference call may be accessed through November 13, 2025 by calling (844) 512-2921 (domestic), (412) 317-6671 (international) (access ID number for either domestic or international is 13756337) or by using the link at www.publicstorage.com under “About Us, Investor Relations, News and Events, Event Calendar.”

About Public Storage

Public Storage, a member of the S&P 500, is a REIT that primarily acquires, develops, owns, and operates self-storage facilities. At September 30, 2025, we: (i) owned and/or operated 3,491 self-storage facilities located in 40 states with approximately 254 million net rentable square feet in the United States and (ii) owned a 35% common equity interest in Shurgard Self Storage Limited (Euronext Brussels: SHUR), which owned 323 self-storage facilities located in seven Western European nations with approximately 18 million net rentable square feet operated under the Shurgard® brand. Our headquarters are located in Glendale, California.

This press release, our Form 10-Q for the third quarter of 2025, a financial supplement, and additional information about Public Storage are available on our website, www.publicstorage.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements relating to our 2025 outlook and all underlying assumptions, our expected acquisition, disposition, development, and redevelopment activity, supply and demand for our self-storage facilities, information relating to operating trends in our markets, expectations regarding operating expenses, including property tax changes, expectations regarding the impacts from inflation and changes in macroeconomic conditions, our strategic priorities, expectations with respect to financing activities, rental rates, cap rates, and yields, leasing expectations, our credit ratings, and all other statements other than statements of historical fact. Such statements are based on management’s beliefs and assumptions made based on information currently available to management and may be identified by the use of the words “outlook,” “guidance,” “expects,” “believes,” “anticipates,” “should,” “estimates,” and similar expressions. These forward-looking statements involve known and unknown risks and uncertainties, which may cause our actual results and performance to be materially different from those expressed or implied in the forward-looking statements. Risks and uncertainties that may impact future results and performance include, but are not limited to those risks and uncertainties described in Part 1, Item 1A, “Risk Factors” in our most recent Annual Report on Form 10-K for the year ended December 31, 2024 filed with the Securities and Exchange Commission (the “SEC”) on February 24, 2025 and in our other filings with the SEC. These include changes in demand for our facilities, changes in macroeconomic conditions, changes in national self-storage facility development activity, impacts from our strategic corporate transformation initiative, impacts of natural disasters, adverse changes in laws and regulations including governing property tax, evictions, rental rates, minimum wage levels, and insurance, adverse economic effects from public health emergencies, international military conflicts, international trade disputes (including threatened or implemented tariffs imposed by the U.S. and threatened or implemented tariffs imposed by foreign countries in retaliation), or similar events impacting public health and/or economic activity, increases in the costs of our primary customer acquisition channels, adverse impacts to us and our customers from high interest rates, inflation, unfavorable foreign currency rate fluctuations, or changes in federal or state tax laws related to the taxation of REITs, security breaches, including ransomware, or a failure of our networks, systems, or technology. These forward-looking statements speak only as of the date of this press release or as of the dates indicated in the statements. All of our forward-looking statements, including those in this press release, are qualified in their entirety by this cautionary statement. We expressly disclaim any obligation to update publicly or otherwise revise any forward-looking statements, whether as a result of new information, new estimates, or other factors, events or circumstances after the date of these forward-looking statements, except when expressly required by law. Given these risks and uncertainties, you should not rely on any forward-looking statements in this press release, or which management may make orally or in writing from time to time, neither as predictions of future events nor guarantees of future performance.

PUBLIC STORAGE

SELECTED CONSOLIDATED INCOME STATEMENT DATA

(Amounts in thousands, except per share data)

(Unaudited)

Three Months Ended September 30,

Nine Months Ended September 30,

2025

2024

2025

2024

Revenues:

Self-storage facilities

1,138,837

1,110,115

3,360,493

3,295,896

Ancillary operations

85,206

77,643

247,828

222,293

1,224,043

1,187,758

3,608,321

3,518,189

Expenses:

Self-storage cost of operations

294,465

287,435

880,336

858,350

Ancillary cost of operations

36,385

34,265

100,366

88,877

Depreciation and amortization

290,364

280,330

856,295

848,875

Real estate acquisition and development expense

2,837

2,530

12,798

9,154

General and administrative

28,783

26,214

79,694

74,130

Interest expense

79,692

74,252

223,310

215,266

732,526

705,026

2,152,799

2,094,652

Other increases (decreases) to net income:

Interest and other income

21,012

20,029

47,035

52,248

Equity in earnings of unconsolidated real estate entities

3,674

2,888

5,071

15,458

Foreign currency exchange gain (loss)

899

(70,572

)

(213,866

)

(20,580

)

Gain on sale of real estate

502

554

710

1,428

Income before income tax expense

517,604

435,631

1,294,472

1,472,091

Income tax expense

(2,831

)

(2,488

)

(7,497

)

(6,042

)

Net income

514,773

433,143

1,286,975

1,466,049

Allocation to noncontrolling interests

(3,710

)

(2,814

)

(9,702

)

(8,645

)

Net income allocable to Public Storage shareholders

511,063

430,329

1,277,273

1,457,404

Allocation of net income to:

Preferred shareholders

(48,678

)

(48,678

)

(146,029

)

(146,029

)

Restricted share units and unvested LTIP units

(977

)

(939

)

(2,638

)

(3,088

)

Net income allocable to common shareholders

461,408

380,712

1,128,606

1,308,287

Per common share:

Net income per common share – Basic

2.63

2.17

6.43

7.46

Net income per common share – Diluted

2.62

2.16

6.42

7.43

Weighted average common shares – Basic

175,456

175,043

175,439

175,403

Weighted average common shares – Diluted

175,884

175,866

175,916

176,074

PUBLIC STORAGE

SELECTED CONSOLIDATED BALANCE SHEET DATA

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

September 30,

2025

December 31,

2024

(Unaudited)

ASSETS

Cash and equivalents

296,460

447,416

Real estate facilities, at cost:

Land

5,896,029

5,711,685

Buildings

23,815,040

22,767,053

29,711,069

28,478,738

Accumulated depreciation

(11,199,115

)

(10,426,186

)

18,511,954

18,052,552

Construction in process

267,816

308,101

18,779,770

18,360,653

Investment in unconsolidated real estate entity

383,557

382,490

Goodwill and other intangible assets, net

269,568

282,187

Other assets

384,963

282,188

Total assets

20,114,318

19,754,934

LIABILITIES AND EQUITY

Notes payable

10,042,822

9,353,034

Accrued and other liabilities

664,389

588,248

Total liabilities

10,707,211

9,941,282

Commitments and contingencies

Equity:

Public Storage shareholders’ equity:

Preferred Shares, $0.01 par value, 100,000,000 shares authorized, 174,000 shares issued (in series) and outstanding, (174,000 shares at December 31, 2024) at liquidation preference

4,350,000

Common Shares, $0.10 par value, 650,000,000 shares authorized, 175,462,847 shares issued (175,408,393 shares at December 31, 2024)

17,546

17,541

Paid-in capital

6,143,166

6,116,113

Accumulated deficit

(1,150,224

)

(699,083

)

Accumulated other comprehensive loss

(48,365

)

(71,965

)

Total Public Storage shareholders’ equity

9,312,123

9,712,606

Noncontrolling interests

94,984

101,046

Total equity

9,407,107

9,813,652

Total liabilities and equity

20,114,318

19,754,934

PUBLIC STORAGE

SELECTED FINANCIAL DATA

Computation of Funds Available for Distribution (“FAD”)

(Unaudited – amounts in thousands except per share data)

Three Months Ended

September 30,

Nine Months Ended

September 30,

2025

2024

2025

2024

FFO allocable to common shares

761,194

667,631

2,018,870

2,172,235

Eliminate effect of items included in FFO but not FAD:

Share-based compensation expense in excess of cash paid

9,025

10,248

26,888

25,806

Foreign currency exchange (gain) loss

(899

)

70,572

213,866

20,580

Less:

Capital expenditures to maintain real estate facilities

(52,649

)

(60,909

)

(138,204

)

(173,684

)

Capital expenditures for property enhancements

—

(40,030

)

—

(109,320

)

FAD (a)

716,671

647,512

2,121,420

1,935,617

Distributions paid to common shareholders

526,388

525,252

1,579,032

1,577,419

Distribution payout ratio

73.4%

81.1%

74.4%

81.5%

Distributions per common share

3.00

9.00

(a)

FAD represents FFO adjusted to exclude certain non-cash charges and to deduct recurring capital expenditures, which do not include capital expenditures for energy efficiencies including LED lighting and solar panel installation. We utilize FAD in evaluating our ongoing cash flow available for investment, debt repayment, and common distributions. We believe investors and analysts utilize FAD in a similar manner. FAD is not a substitute for GAAP net cash flow in evaluating our liquidity or ability to pay dividends, because it excludes investing and financing activities presented on our statements of cash flows. In addition, other REITs may compute this measure differently, so comparisons among REITs may not be helpful.

PUBLIC STORAGE

SELECTED FINANCIAL DATA

Reconciliation of Self-Storage Net Operating Income to Net Income

(Unaudited – amounts in thousands)

Three months ended September 30,

Nine months ended September 30,

2025

2024

2025

2024

Self-storage revenues for:

Same Store Facilities

948,925

948,693

2,828,661

2,825,867

Acquired facilities

67,935

46,961

175,913

138,136

Newly developed and expanded facilities

47,409

42,011

134,282

117,461

Other non-same store facilities

74,568

72,450

221,637

214,432

Self-storage revenues

1,138,837

1,110,115

3,360,493

3,295,896

Self-storage cost of operations for:

Same Store Facilities

231,785

231,767

703,436

696,258

Acquired facilities

21,586

15,767

56,205

45,661

Newly developed and expanded facilities

15,393

13,437

43,424

38,469

Other non-same store facilities

25,701

26,464

77,271

77,962

Self-storage cost of operations

294,465

287,435

880,336

858,350

Self-storage NOI for:

Same Store Facilities

717,140

716,926

2,125,225

2,129,609

Acquired facilities

46,349

31,194

119,708

92,475

Newly developed and expanded facilities

32,016

28,574

90,858

78,992

Other non-same store facilities

48,867

45,986

144,366

136,470

Self-storage NOI (a)

844,372

822,680

2,480,157

2,437,546

Ancillary revenues

85,206

77,643

247,828

222,293

Ancillary cost of operations

(36,385

)

(34,265

)

(100,366

)

(88,877

)

Depreciation and amortization

(290,364

)

(280,330

)

(856,295

)

(848,875

)

Real estate acquisition and development expense

(2,837

)

(2,530

)

(12,798

)

(9,154

)

General and administrative expense

(28,783

)

(26,214

)

(79,694

)

(74,130

)

Interest and other income

21,012

20,029

47,035

52,248

Interest expense

(79,692

)

(74,252

)

(223,310

)

(215,266

)

Equity in earnings of unconsolidated real estate entities

3,674

2,888

5,071

15,458

Gain on sale of real estate

502

554

710

1,428

Foreign currency exchange gain (loss)

899

(70,572

)

(213,866

)

(20,580

)

Income tax expense

(2,831

)

(2,488

)

(7,497

)

(6,042

)

Net income on our income statement

514,773

433,143

1,286,975

1,466,049

(a)

Net operating income or “NOI” is a non-GAAP financial measure that excludes the impact of depreciation and amortization expense, which is based upon historical costs and assumes that building values diminish ratably over time, while we believe that real estate values fluctuate due to market conditions. We utilize NOI in determining current property values, evaluating property performance, and evaluating operating trends. We believe that investors and analysts utilize NOI in a similar manner. NOI is not a substitute for net income, operating cash flow, or other related GAAP financial measures, in evaluating our operating results. This table reconciles from NOI for our self-storage facilities to the net income presented on our income statement.