Public Storage

    PSA ·NYSE ·Real Estate Investment Trusts ·Inc. in MD
    Other securities: PSA$Fpreferred PSA$Gpreferred PSA$Hpreferred PSA$Ipreferred PSA$Jpreferred PSA$Kpreferred PSA$Lpreferred PSA$Mpreferred PSA$Npreferred PSA$Opreferred PSA$Ppreferred PSA$Qpreferred PSA$Rpreferred PSA$Spreferred PSA$Tpreferred PSA$Upreferred
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    Financial statements

    data from SEC XBRL filings. Values are as-reported; restatements supersede originals. Values reported in .

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    From 10-Q filed 2026-10-26 (period ending 2026-09-30).


    ITEM 2.    Management’s Discussion and Analysis of Financial Condition and Results of Operations
    Cautionary Statement Regarding Forward-Looking Statements
    This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements relating to our expected acquisition, disposition, development, and redevelopment activity, including with respect to the integration of acquired assets and operations, 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, settlement of common shares sold pursuant to forward sale confirmations under our At-the-Market (“ATM”) program; 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 “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 filed with the Securities and Exchange Commission (the “SEC”), in this Quarterly Report on Form 10-Q, and in our other filings with the SEC. These include changes in demand for our facilities, changes in macroeconomic conditions, failure to realize the expected benefits of the NSA and PS Canada acquisitions, unexpected liabilities or expenses related to the NSA or PS Canada acquisitions, challenges to successfully and timely integrate the NSA and PS Canada acquisitions, including difficulties retaining and hiring key personnel, 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., Canada or other countries), 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 report or as of the dates indicated in the statements. All of our forward-looking statements, including those in this report, 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 report, or which management may make orally or in writing from time to time, neither as predictions of future events nor guarantees of future performance.
    Critical Accounting Estimates
    The preparation of consolidated financial statements and related disclosures in conformity with U.S. generally accepted accounting principles (“GAAP”) requires us to make judgments, assumptions, and estimates that affect the amounts reported. On an ongoing basis, we evaluate our estimates and assumptions. These estimates and assumptions are based on current facts, historical experience, and various other factors that we believe are reasonable under the circumstances to determine reported amounts of assets, liabilities, revenues, and expenses that are not readily apparent from other sources.
    During the nine months ended September 30, 2026, there were no material changes to our critical accounting estimates as compared to the critical accounting estimates disclosed in Management’s Discussion and Analysis of Financial Condition and Results of Operations contained in Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2025.
    31

    Overview
    Our self-storage operations generate most of our net income, and our earnings growth is impacted by the levels of organic growth within our Same Store Facilities (as defined below) as well as within our Acquired Facilities and Developed and Expanded Facilities (both as defined below).
    Revenues generated by our Same Store Facilities increased by 0.5% ($4.8 million) for the three months ended September 30, 2026 and remained relatively unchanged for the nine months ended September 30, 2026, as compared to the same periods in 2025. Cost of operations for Same Store Facilities increased by 0.4% ($1.0 million) and 1.2% ($9.2 million), respectively, for the three and nine months ended September 30, 2026 as compared to the same periods in 2025. Realized annual rent per occupied square foot for our Same Store Facilities increased by 0.2% for the three months ended September 30, 2026 and decreased by 0.3% for the nine months ended September 30, 2026, while average occupancy increased by 0.3% and 0.2%, respectively, as compared to the same periods in 2025.
    We have grown and plan to continue to grow through the acquisition and development of new facilities and expansion of our existing self-storage facilities. Since the beginning of 2024, including the ongoing integration of unstabilized properties acquired prior to 2024, we have expanded our portfolio by a total of 881 facilities with 63.3 million net rentable square feet for a cost of $11.6 billion. Within our non-same store portfolio as of September 30, 2026, our Developed and Expanded Facilities include a total of 121 self-storage facilities with 14.0 million net rentable square feet. For development and expansions completed by September 30, 2026, we incurred a total cost of $1.8 billion. During the three and nine months ended September 30, 2026, combined net operating income generated by our Acquired Facilities and Developed and Expanded Facilities increased 95.6% ($73.3 million) and 52.0% ($107.6 million), respectively, as compared to the same periods in 2025.
    Recent Developments
    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 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, we closed the acquisition of National Storage Affiliates Trust (“NSA”). On September 1, 2026, we completed the acquisition of PS Canada. See Note 3 to our September 30, 2026 consolidated financial statements “Acquisitions”, for more details.
    On September 16, 2026, PS Canada Finance ULC, a finance subsidiary of the Company, completed a public offering of C$400 million principal amount of senior notes, bearing interest at an annual rate of 4.540% and maturing on September 16, 2033. The senior notes are guaranteed by Public Storage and PSOC. We received C$398.5 million of net proceeds from the issuance.
    As of September 30, 2026, we had outstanding forward sale agreements under our ATM program for a total of 1,230,141 common shares, representing expected net proceeds of approximately $399.2 million (assuming full physical settlement of such agreements).
    32

    Results of Operations
    Operating Results for the Three Months Ended September 30, 2026 and 2025
    For the three months ended September 30, 2026, net income allocable to our common shareholders was $312.3 million or $1.69 per diluted common share, compared to $461.4 million or $2.62 per diluted common share for the same period in 2025, representing a decrease of $149.1 million or $0.93 per diluted common share. The decrease is due primarily to (i) a $122.3 million increase in depreciation expense, (ii) a $114.6 million increase in transaction and integration expenses, (iii) a $22.8 million increase in interest expense, (iv) a $9.5 million increase in general and administrative expense, (v) a $9.1 million decrease in equity in earnings from unconsolidated real estate entities, and a (vi) $7.7 million increase in net income allocated to noncontrolling interests, partially offset by (vii) a $76.5 million increase in self-storage net operating income, (viii) an increase of $26.5 million related to gains on sale of real estate through eminent domain proceedings, (ix) a $19.6 million increase in ancillary net operating income and a (x) $17.9 million decline in income tax expense primarily due to the release of a valuation allowance.
    The $76.5 million increase in self-storage net operating income for the three months ended September 30, 2026 as compared to the same period in 2025 is primarily a result of a $72.8 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, 2026 and 2025
    For the nine months ended September 30, 2026, net income allocable to our common shareholders was $1.2 billion or $6.92 per diluted common share, compared to $1.1 billion or $6.42 per diluted common share for the same period in 2025, representing an increase of $110.7 million or $0.50 per diluted common share. The increase is due primarily to (i) a $282.6 million increase in foreign currency gain primarily associated with our euro-denominated notes payable, (ii) a $95.3 million increase in self-storage net operating income, (iii) a $32.9 million increase in ancillary net operating income, (iv) an increase of $26.6 million related to gains on sale of real estate through eminent domain proceedings, and (v) an $18.2 million decline in income tax expense primarily due to the release of a valuation allowance, partially offset by (vi) a $134.8 million increase in depreciation and amortization expense, (vii) a $119.3 million increase in transaction and integration expenses, (viii) a $44.0 million increase in interest expense, (ix) a $28.6 million increase in general and administrative expense and (x) a $7.8 million increase in net income allocated to to noncontrolling interests.
    The $95.3 million increase in self-storage net operating income for the nine months ended September 30, 2026 as compared to the same period in 2025 is a result of a $105.8 million increase attributable to our Non-Same Store Facilities reflecting the impact of newly acquired facilities and the lease-up of development/expansion properties partially offset by a decrease of $10.5 million attributable to our Same Store Facilities as a result of increased cost of operations primarily due to increased property tax expense.
    Funds from Operations (“FFO”) and FFO per diluted common share and unit holders (“FFO per share and unit”) are non-GAAP measures defined by Nareit. We believe that FFO and FFO per share and unit 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 and unit 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, 2026, FFO was $3.81 per diluted common share as compared to $4.33 per diluted common share for the same period in 2025, representing a decrease of 12.0%, or $0.52 per diluted common share.
    33

    For the nine months ended September 30, 2026, FFO was $12.39 per diluted common share as compared to $11.48 per diluted common share for the same period in 2025, representing an increase of 7.9%, or $0.91 per diluted common share.
    We also presents “Core FFO” and “Core FFO per share and unit” 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 shares, (iii) transaction and integration costs related to the NSA acquisition and PS Canada acquisition, (iv) 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, cancelled project write-off, realized or unrealized gain or loss on private equity investments and non-hedge designated derivative transactions, income tax benefits from certain discrete items, certain CEO transition-related and executive severance costs, and amortization of assumed debt discounts and acquired non real estate-related intangibles, and (v) the income tax effect of each adjustment calculated by applying the tax rate of the applicable tax jurisdiction. We review Core FFO and Core FFO per share and unit to evaluate our ongoing operating performance, and believe they are used by investors and REIT analysts in a similar manner. However, Core FFO and Core FFO per share and unit are not substitutes for net income and net income per share. Because other REITs may not compute Core FFO or Core FFO per share and unit 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.



















    34

    The following table reconciles net income to FFO and Core FFO and reconciles diluted earnings per share to FFO per share and unit and Core FFO per share and unit:
    Three Months Ended September 30,Nine Months Ended September 30,
    20262025Percentage Change20262025Percentage Change
    (Amounts in thousands, except per share data)
    Reconciliation of Net Income to FFO and Core FFO:
    Net income allocable to common shareholders$312,281 $461,408 (32.3)%$1,239,327 $1,128,606 9.8 %
    Eliminate items excluded from FFO:
    Real estate-related depreciation and amortization400,849 287,472 973,344 847,702 
    Real estate-related depreciation from unconsolidated real estate investment28,926 14,706 51,087 45,664 
    Real estate-related depreciation allocated to noncontrolling interests, restricted share unitholders, and unvested LTIP unitholders(1,045)(1,417)(2,963)(4,677)
    Impairment (recovery) write-down of real estate investments15 119 (195)3,946 
    Gains on sale of real estate investments, including our equity share from investment(27,011)(502)(27,355)(710)
    Income allocated to Operating Partnership noncontrolling interest8,197 $871 11,808 $2,039 
    FFO allocable to common shareholders and unit holders$722,212 $762,657 (5.3)%$2,245,053 $2,022,570 11.0 %
    Eliminate items excluded from Core FFO:
    Adjustments to G&A Expense:
    Legal reserves and recoveries1,800 — 100 290 
    Corporate transformation costs1,100 1,376 8,032 3,178 
    Executive severance and CEO transition costs7,539 — 15,201 — 
    Other Non-Core Adjustments:
    Transaction and integration expense114,642 — 119,329 — 
    Foreign currency exchange (gain) loss(9,868)(899)(68,728)213,866 
    Unrealized (gain) loss on private equity investments(539)(6,148)(3,844)(4,360)
    Unrealized (gain) loss on interest rate derivatives— — 5,857 — 
    Amortization of non-real estate intangibles8,743 113 8,968 338 
    Income tax provision (benefit)(22,752)— (22,752)— 
    Other items(119)3,055 1,029 3,454 
    Core FFO allocable to common shareholders and unit holders$822,758 $760,154 8.2 %$2,308,245 $2,239,336 3.1 %
    Reconciliation of Diluted Earnings per Share to FFO per Share and Core FFO per Share:
    Diluted earnings per share$1.69 $2.62 (35.5)%$6.92 $6.42 7.8 %
    Impact of the difference in weighted average number of shares – diluted(0.04)— (0.09)— 
    Eliminate amounts per share excluded from FFO:
    Real estate-related depreciation and amortization2.26 1.71 5.64 5.03 
    Impairment (recovery) write-down of real estate investments— — — 0.02 
    Gains on sale of real estate investments, including our equity share from investment(0.14)— (0.15)— 
    Income allocated to Operating Partnership noncontrolling interest0.04 — 0.07 0.01 
    FFO per share and unit$3.81 $4.33 (12.0)%$12.39 $11.48 7.9 %
    Eliminate amounts per share excluded from Core FFO:
    Adjustments to G&A Expense:
    Legal reserves and recoveries0.01 — — — 
    Corporate transformation costs0.01 0.01 0.04 0.02 
    Executive severance and CEO transition costs0.04 — 0.08 — 
    Other Non-Core Adjustments:
    Transaction and integration expense0.60 — 0.66 — 
    Foreign currency exchange (gain) loss(0.06)(0.01)(0.37)1.21 
    Unrealized (gain) loss on private equity investments— (0.03)(0.02)(0.02)
    Unrealized (gain) loss on interest rate derivatives— — 0.03 — 
    Amortization of non-real estate intangibles0.05 — 0.05 — 
    Income tax provision (benefit)(0.12)— (0.13)— 
    Other items— 0.01 0.01 0.02 
    Core FFO per share and unit$4.34 $4.31 0.7 %$12.74 $12.71 0.2 %
    Diluted weighted average common shares and units outstanding189,619 176,227 181,147 176,238 
    Three Months Ended September 30,Nine Months Ended September 30,
    Diluted weighted average number of common shares outstanding185,110 175,884 179,371 175,916 
    Weighted average number of OP/Vested LTIPs outstanding4,509 343 1,776 322 
    Diluted weighted average common shares and units outstanding189,619 176,227 181,147 176,238 
    35

    Analysis of Net Income — Self-Storage Operations
    Our self-storage operations are analyzed in four groups: (i) 2,755 facilities that we have owned and operated on a stabilized basis since January 1, 2024 (the “Same Store Facilities”) and, (ii) 881 facilities we acquired since January 1, 2024 or that were acquired prior to 2024 that remain unstabilized since January 1, 2024 (the “Acquired Facilities”), (iii) 121 facilities that have been developed or expanded since January 1, 2021 including those developed or expanded earlier that remain unstabilized since January 1, 2024, or properties that will commence expansion by December 31, 2026 (the “Developed and Expanded Facilities”), and (iv) 15 other facilities, which are otherwise not stabilized with respect to occupancies or rental rates since January 1, 2024 (the “Other Non-Same Store Facilities”). The Acquired Facilities, Developed and Expanded Facilities, and Other Non-Same Store Facilities are collectively referred to as the “Non-Same Store Facilities”. See Note 16 to our September 30, 2026 consolidated financial statements “Segment Information,” for a reconciliation of the amounts in the tables below to our total net income.
    36

    Self-Storage Operations
    SummaryThree Months Ended September 30,Nine Months Ended September 30,
    20262025Percentage Change (a)20262025Percentage Change (a)
    (Dollar amounts and square footage in thousands)
    Revenues (b):
    Same Store Facilities$1,021,947 $1,017,135 0.5 %$3,029,329$3,030,595— %
    Acquired Facilities174,162 70,815 145.9 %328,037183,78178.5 %
    Developed and Expanded Facilities54,708 46,616 17.4 %154,905133,42716.1 %
    Other Non-Same Store Facilities3,294 4,271 (22.9)%9,91212,690(21.9)%
    Total revenues1,254,111 1,138,837 10.1 %3,522,1833,360,4934.8 %
    Cost of operations (b):
    Same Store Facilities253,114 252,075 0.4 %774,723765,5051.2 %
    Acquired Facilities60,475 24,998 141.9 %114,22965,32874.9 %
    Developed and Expanded Facilities18,372 15,744 16.7 %54,01044,81820.5 %
    Other Non-Same Store Facilities1,233 1,648 (25.2)%3,7314,685(20.4)%
    Total cost of operations333,194 294,465 13.2 %946,693880,3367.5 %
    Net operating income (c):
    Same Store Facilities768,833 765,060 0.5 %2,254,6062,265,090(0.5)%
    Acquired Facilities113,687 45,817 148.1 %213,808118,45380.5 %
    Developed and Expanded Facilities36,336 30,872 17.7 %100,89588,60913.9 %
    Other Non-Same Store Facilities2,061 2,623 (21.4)%6,1818,005(22.8)%
    Total net operating income 920,917 844,372 9.1 %2,575,4902,480,1573.8 %

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    Held by

    holders ( registered funds via N-PORT, institutional investors via 13F). Showing top by dollar value.

    Holder Type ETF MF Position ($) % of holder Δ % of holder Holder AUM

    Recent insider activity

    Last 90 days. Open-market trades (purchases & sales) by directors, officers, and 10%+ owners. 1 transaction across 1 insider. Net: -1,414 shares, -$463,133.

    Date Insider Role Action Shares Price Value
    2026-08-13 Vitan Nathaniel A. Chief Legal Officer Sell -1,414 $327.53 -$463,133

    Source: SEC Form 4 filings.

    Next expected filings

    • ~2027-02-11 10-K expected by 2027-02-19 (in 106 days)
    • ~2027-04-26 10-Q expected by 2027-05-06 (in 180 days)
    • ~2027-07-28 10-Q expected by 2027-08-07 (in 273 days)
    • ~2027-10-25 10-Q expected by 2027-11-04 (in 362 days)

    Predicted from historical filing cadence; not an SEC commitment.

    Recent SEC filings

    • 2026-10-26 8-K Earnings Release; Financial Statements and Exhibits
    • 2026-10-26 10-Q Quarterly Report
    • 2026-09-16 8-K Material Agreement Entered; Material Financial Obligation; Financial Statements and Exhibits
    • 2026-09-10 8-K Material Agreement Entered; Financial Statements and Exhibits
    • 2026-09-01 8-K Regulation FD Disclosure; Other Events; Financial Statements and Exhibits
    • 2026-08-10 8-K Officer/Director Change
    • 2026-07-29 8-K Earnings Release; Financial Statements and Exhibits
    • 2026-07-29 10-Q Quarterly Report
    • 2026-07-22 8-K Material Agreement Entered; Completion of Acquisition/Disposition; Material Financial Obligation; Unregistered Equity Sale; Material Modification to Rights; Bylaws/Articles Amended; Regulation FD Disclosure; Financial Statements and Exhibits
    • 2026-07-20 8-K Material Agreement Entered; Material Financial Obligation; Financial Statements and Exhibits
    • 2026-07-13 8-K Material Agreement Entered; Financial Statements and Exhibits
    • 2026-07-07 8-K Officer/Director Change
    • 2026-06-25 8-K Material Agreement Entered; Material Agreement Terminated; Material Financial Obligation; Regulation FD Disclosure; Financial Statements and Exhibits
    • 2026-06-22 8-K Unregistered Equity Sale; Regulation FD Disclosure; Financial Statements and Exhibits
    • 2026-06-01 8-K Regulation FD Disclosure; Other Events