Public Storage

    PSA$J ·NYSE ·Real Estate Investment Trusts ·Inc. in MD
    Other securities: PSA PSA$Fpreferred PSA$Gpreferred PSA$Hpreferred PSA$Ipreferred PSA$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 2026-07-29 (period ending 2026-06-30).


    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 2026 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, 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 “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, 2025 filed with the Securities and Exchange Commission (the “SEC”) on February 12, 2026 and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2026 filed with the SEC on April 27, 2026, 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 Merger, including the risk that NSA’s business will not be integrated successfully or that such integration may be more difficult, time-consuming or costly than expected, including our ability to retain and hire 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. 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 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.
    24

    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 six months ended June 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.
    25

    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).
    During the three and six months ended June 30, 2026, revenues generated by our Same Store Facilities decreased by 0.6% ($5.9 million) and 0.3% ($6.1 million), respectively, as compared to the same periods in 2025. Cost of operations for Same Store Facilities increased by 4.4% ($11.1 million) and 1.6% ($8.2 million), respectively, for the three and six months ended June 30, 2026 as compared to the same periods in 2025. For the three and six months ended June 30, 2026, realized annual rent per occupied square foot for our Same Store Facilities decreased by 0.8% and 0.5%, respectively, while average occupancy increased by 0.2% and 0.3%, 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 306 facilities with 24.5 million net rentable square feet for a cost of $4.5 billion. Within our non-same store portfolio as of June 30, 2026, our Developed and Expanded Facilities include a total of 120 self-storage facilities with 13.8 million net rentable square feet. For development and expansions completed by June 30, 2026, we incurred a total cost of $1.8 billion. During the three and six months ended June 30, 2026, combined net operating income generated by our Acquired Facilities and Developed and Expanded Facilities increased 23.3% ($15.8 million) and 26.3% ($34.3 million), respectively, as compared to the same periods in 2025.
    On July 22, 2026, the Company closed its merger with National Storage Affiliates Trust (“NSA”) in an all-stock transaction (the “Merger”). 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 common share (or OP Unit, as applicable) of the Company for each issued and outstanding common share (or partnership unit) of NSA they owned. Concurrently with the closing, NSA's operating partnership contributed a subset of properties to a newly formed JV, with participating NSA OP unitholders holding an $800 million equity interest, and the Company holding the remaining $200 million equity interest and providing a $237 million mezzanine loan as part of its initial capitalization. Following the Merger, the combined company owned and/or managed over 4,500 locations and approximately 327 million net rentable square feet.
    On June 22, 2026, the Company announced that it had entered into an agreement to acquire PS Canada. 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.
    As of June 30, 2026, we had outstanding forward sale agreements under our ATM program for a total of 425,278 common shares, representing expected net proceeds of approximately $137.4 million (assuming full physical settlement of such agreements).

        On June 25, 2026, PSOC entered into a fourth amended and restated credit agreement of $3.0 billion maturing on June 25, 2030 (the “Revolver”) and a $500 million delayed draw term loan maturing on June 25, 2031 with an interest rate at SOFR plus 0.700% (the “Term Loan” and together with the Revolver, the “Credit Facility) which replaces in its entirety the Company’s $1.5 billion revolving credit facility set to mature June 12, 2027. Additionally, the Company has established a commercial paper note program and may issue up to $1 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).
    26

    Results of Operations
    Operating Results for the Three Months Ended June 30, 2026 and 2025
    For the three months ended June 30, 2026, net income allocable to our common shareholders was $450.3 million or $2.55 per diluted common share, compared to $309.0 million or $1.76 per diluted common share for the same period in 2025, representing an increase of $141.3 million or $0.79 per diluted common share. The increase is due primarily to (i) a $163.3 million increase in foreign currency gain primarily associated with our Euro denominated notes payable and (ii) a $7.2 million increase in equity in earnings of Shurgard partially offset by (iii) a $13.2 million increase in interest expense and (iv) an $18.6 million increase in general and administrative expense.
    Operating Results for the Six Months Ended June 30, 2026 and 2025
    For the six months ended June 30, 2026, net income allocable to our common shareholders was $927.0 million or $5.26 per diluted common share, compared to $667.2 million or $3.79 per diluted common share for the same period in 2025, representing an increase of $259.8 million or $1.47 per diluted common share. The increase is due primarily to (i) a $273.6 million increase in foreign currency gain primarily associated with our Euro denominated notes payable, (ii) an $18.8 million increase in self-storage net operating income, (iii) a $13.4 million increase in ancillary operation net operating income and (iv) a $10.4 million increase in equity in earnings of Shurgard, partially offset by (v) a $12.5 million increase in depreciation and amortization expense (vi) a $21.2 million increase in interest expense and (vii) a $23.8 million increase in general and administrative expense.
    The $18.8 million increase in self-storage net operating income for the six months ended June 30, 2026 as compared to the same period in 2025 is a result of a $33.1 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, partially offset by a $14.3 million decrease attributable to our Same Store Facilities. Revenues for the Same Store Facilities decreased by 0.3% or $6.1 million in 2026 as compared to 2025, due primarily to lower realized annual rent per occupied square foot partially offset by an increase in average occupancy. Cost of operations for the Same Store Facilities increased by 1.6% or $8.2 million in 2026 as compared to 2025, due primarily to increased property tax expense and indirect cost of operation.
    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 June 30, 2026, FFO was $4.21 per diluted common share as compared to $3.44 per diluted common share for the same period in 2025, representing an increase of 22.4%, or $0.77 per diluted common share.
    For the six months ended June 30, 2026, FFO was $8.59 per diluted common share as compared to $7.15 per diluted common share for the same period in 2025, representing an increase of 20.1%, or $1.44 per diluted common share.
    27

    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, (iii) transaction and integration costs related to the NSA Merger, and (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, certain CEO transition-related costs, 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:
    Three Months Ended June 30,Six Months Ended June 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$450,258 $308,968 45.7 %$927,046 $667,198 38.9 %
    Eliminate items excluded from FFO:
    Real estate-related depreciation and amortization284,729 280,221 572,495 560,230 
    Real estate-related depreciation from unconsolidated real estate investment10,884 17,683 22,161 30,958 
    Real estate-related depreciation allocated to noncontrolling interests, restricted share unitholders, and unvested LTIP unitholders(2,761)(2,215)(5,487)(4,329)
    Impairment (recovery) write-down of real estate investments(210)— (210)3,827 
    Gains on sale of real estate investments, including our equity share from investment35 (163)(344)(208)
    FFO allocable to common shares$742,935 $604,494 22.9 %$1,515,661 $1,257,676 20.5 %
    Eliminate items excluded from Core FFO:
    Adjustments to G&A Expense:
    Transaction and integration costs4,687 — 4,687 400 
    Legal reserves and recoveries(1,700)(255)(1,700)290 
    Corporate transformation costs4,238 1,013 6,932 1,802 
    Executive severance and CEO transition costs5,095 — 7,662 — 
    Other Non-Core Adjustments:
    Foreign currency exchange (gain) loss(17,187)146,070 (58,860)214,765 
    Unrealized (gain) loss on private equity investments(3,779)915 (3,305)1,788 
    Unrealized (gain) loss on interest rate derivatives606 — 5,857 — 
    Other items1,176 112 1,376 225 
    Core FFO allocable to common shares$736,071 $752,349 (2.2)%$1,478,310 $1,476,946 0.1 %
    Reconciliation of Diluted Earnings per Share to FFO per Share and Core FFO per Share:
    Diluted earnings per share$2.55 $1.76 44.9 %$5.26 $3.79 38.8 %
    Eliminate amounts per share excluded from FFO:
    Real estate-related depreciation and amortization1.66 1.68 3.33 3.34 
    28

    Three Months Ended June 30,Six Months Ended June 30,
    20262025Percentage Change20262025Percentage Change
    (Amounts in thousands, except per share data)
    Impairment (recovery) write-down of real estate investments— — — 0.02 
    FFO per share $4.21 $3.44 22.4 %$8.59 $7.15 20.1 %
    Eliminate amounts per share excluded from Core FFO:
    Adjustments to G&A Expense:
    Transaction and integration costs0.03 — 0.03 — 
    Legal reserves and recoveries(0.01)— (0.01)— 
    Corporate transformation costs0.02 0.01 0.04 0.01 
    Executive severance and CEO transition costs0.03 — 0.04 — 
    Other Non-Core Adjustments:
    Foreign currency exchange (gain) loss(0.10)0.82 (0.33)1.21 
    Unrealized (gain) loss on private equity investments(0.02)0.01 (0.02)0.01 
    Unrealized (gain) loss on interest rate derivatives— — 0.03 — 
    Other items0.01 — 0.01 0.01 
    Core FFO per share$4.17 $4.28 (2.6)%$8.38 $8.39 (0.1)%
    Diluted weighted average common shares 176,512 175,921 176,455 175,932 
    29

    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”), (ii) 306 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) 120 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 14 to our June 30, 2026 consolidated financial statements “Segment Information,” for a reconciliation of the amounts in the tables below to our total net income.
    30

    Self-Storage Operations
    SummaryThree Months Ended June 30,Six Months Ended June 30,
    20262025Percentage Change (a)20262025Percentage Change (a)
    (Dollar amounts and square footage in thousands)
    Revenues (b):
    Same Store Facilities$1,006,549 $1,012,439 (0.6)%$2,007,382$2,013,460(0.3)%
    Acquired Facilities78,871 57,561 37.0 %153,875112,96636.2 %
    Developed and Expanded Facilities51,314 44,382 15.6 %100,19786,81115.4 %
    Other Non-Same Store Facilities3,213 4,276 (24.9)%6,6188,419(21.4)%
    Total revenues1,139,947 1,118,658 1.9 %2,268,0722,221,6562.1 %
    Cost of operations (b):
    Same Store Facilities260,176 249,106 4.4 %521,609513,4301.6 %
    Acquired Facilities27,966 19,797 41.3 %53,75440,33033.3 %
    Developed and Expanded Facilities18,536 14,303 29.6 %35,63829,07422.6 %
    Other Non-Same Store Facilities1,142 1,511 (24.4)%2,4983,037(17.7)%
    Total cost of operations307,820 284,717 8.1 %613,499585,8714.7 %
    Net operating income (c):
    Same Store Facilities746,373 763,333 (2.2)%1,485,7731,500,030(1.0)%
    Acquired Facilities50,905 37,764 34.8 %100,12172,63637.8 %
    Developed and Expanded Facilities32,778 30,079 9.0 %64,55957,73711.8 %
    Other Non-Same Store Facilities2,071 2,765 (25.1)%4,1205,382(23.4)%
    Total net operating income 832,127 833,941 (0.2)%1,654,5731,635,7851.1 %
    Depreciation and amortization expense:
    Same Store Facilities208,154 217,282 (4.2)%418,754436,950(4.2)%
    Acquired Facilities56,577 43,640 29.6 %113,89986,84831.1 %
    Developed and Expanded Facilities20,193 19,442 3.9 %40,16636,46110.2 %
    Other Non-Same Store Facilities2,833 2,852 (0.7)%5,6615,672(0.2)%
    Total depreciation and amortization287,757 283,216 1.6 %578,480565,9312.2 %
    Net income (loss):
    Same Store Facilities538,219 546,051 (1.4)%1,067,0191,063,0800.4 %
    Acquired Facilities(5,672)(5,876)(3.5)%(13,778)(14,212)(3.1)%
    Developed and Expanded Facilities12,585 10,637 18.3 %24,39321,27614.7 %
    Other Non-Same Store Facilities(762)(87)775.9 %(1,541)(290)431.4 %

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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: -950 shares, -$308,570.

    Date Insider Role Action Shares Price Value
    2026-06-12 Vitan Nathaniel A. Chief Legal Officer Sell -950 $324.81 -$308,570

    Source: SEC Form 4 filings.

    Next expected filings

    • ~2026-10-28 10-Q expected by 2026-11-07 (in 90 days)
    • ~2027-02-11 10-K expected by 2027-02-19 (in 196 days)
    • ~2027-04-26 10-Q expected by 2027-05-06 (in 270 days)
    • ~2027-07-28 10-Q expected by 2027-08-07 (in 363 days)

    Predicted from historical filing cadence; not an SEC commitment.

    Recent SEC filings

    • 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
    • 2026-05-11 8-K Shareholder Vote Results; Other Events
    • 2026-05-11 S-4 Registration (Merger)
    • 2026-04-27 10-Q Quarterly Report
    • 2026-04-27 8-K Earnings Release; Financial Statements and Exhibits
    • 2026-04-06 8-K Material Agreement Entered; Material Financial Obligation; Financial Statements and Exhibits
    • 2026-04-02 8-K Material Agreement Entered; Financial Statements and Exhibits