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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 September 30, 2024
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)
Maryland93-2834996
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer Identification Number)
  
701 Western Avenue, Glendale, California
91201-2349
(Address of principal executive offices)(Zip Code)
Registrant’s telephone number, including area code: (818) 244-8080.
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 ClassTrading SymbolName of each exchange on which registered
Common Shares, $0.10 par valuePSANew York Stock Exchange
Depositary Shares Each Representing 1/1,000 of a 5.150% Cum Pref Share, Series F, $0.01 par valuePSAPrFNew York Stock Exchange
Depositary Shares Each Representing 1/1,000 of a 5.050% Cum Pref Share, Series G, $0.01 par valuePSAPrGNew York Stock Exchange
Depositary Shares Each Representing 1/1,000 of a 5.600% Cum Pref Share, Series H, $0.01 par valuePSAPrHNew York Stock Exchange
Depositary Shares Each Representing 1/1,000 of a 4.875% Cum Pref Share, Series I, $0.01 par valuePSAPrINew York Stock Exchange
Depositary Shares Each Representing 1/1,000 of a 4.700% Cum Pref Share, Series J, $0.01 par valuePSAPrJNew York Stock Exchange
Depositary Shares Each Representing 1/1,000 of a 4.750% Cum Pref Share, Series K, $0.01 par valuePSAPrKNew York Stock Exchange
Depositary Shares Each Representing 1/1,000 of a 4.625% Cum Pref Share, Series L, $0.01 par valuePSAPrLNew York Stock Exchange
Depositary Shares Each Representing 1/1,000 of a 4.125% Cum Pref Share, Series M, $0.01 par valuePSAPrMNew York Stock Exchange
Depositary Shares Each Representing 1/1,000 of a 3.875% Cum Pref Share, Series N, $0.01 par valuePSAPrNNew York Stock Exchange
Depositary Shares Each Representing 1/1,000 of a 3.900% Cum Pref Share, Series O, $0.01 par valuePSAPrONew York Stock Exchange
Depositary Shares Each Representing 1/1,000 of a 4.000% Cum Pref Share, Series P, $0.01 par valuePSAPrPNew York Stock Exchange
Depositary Shares Each Representing 1/1,000 of a 3.950% Cum Pref Share, Series Q, $0.01 par valuePSAPrQNew York Stock Exchange
Depositary Shares Each Representing 1/1,000 of a 4.000% Cum Pref Share, Series R, $0.01 par valuePSAPrRNew York Stock Exchange
Depositary Shares Each Representing 1/1,000 of a 4.100% Cum Pref Share, Series S, $0.01 par valuePSAPrSNew York Stock Exchange
Guarantee of 0.875% Senior Notes due 2032 issued by Public Storage Operating Company
PSA/32New York Stock Exchange
Guarantee of 0.500% Senior Notes due 2030 issued by Public Storage Operating Company
PSA/30New 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 filerAccelerated
filer		Non-accelerated filerSmaller reporting companyEmerging 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 October 23, 2024:
Common Shares of beneficial interest, $0.10 par value per share – 175,108,651 shares


PUBLIC STORAGE
INDEX
PART IFINANCIAL INFORMATIONPages
Item 1.Consolidated Financial Statements (Unaudited) 
 Consolidated Balance Sheets
 Consolidated Statements of Income
 Consolidated Statements of Comprehensive Income
 Consolidated Statements of Equity
 Consolidated Statements of Cash Flows
 Condensed Notes to Consolidated Financial Statements
Item 2.Management’s Discussion and Analysis of Financial Condition and Results of Operations
Item 3.Quantitative and Qualitative Disclosures About Market Risk
Item 4.Controls and Procedures
PART II
OTHER INFORMATION (Items 3 and 4 are not applicable)
Item 1.Legal Proceedings
Item 1A.Risk Factors
Item 2.Unregistered Sales of Equity Securities and Use of Proceeds
Item 5.
Other Information
Item 6.Exhibits




PUBLIC STORAGE
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except share data)

 September 30,
2024		December 31,
2023
(Unaudited)
ASSETS  
    
Cash and equivalents$599,004 $370,002 
Real estate facilities, at cost:
Land5,652,960 5,628,488 
Buildings22,441,100 21,836,750 
28,094,060 27,465,238 
Accumulated depreciation (10,172,372)(9,423,974)
17,921,688 18,041,264 
Construction in process310,514 345,453 
18,232,202 18,386,717 
Investment in unconsolidated real estate entity397,482 390,180 
Goodwill and other intangible assets, net294,546 387,267 
Other assets279,985 275,050 
Total assets $19,803,219 $19,809,216 
     
LIABILITIES AND EQUITY    
    
Notes payable$9,473,778 $9,103,277 
Accrued and other liabilities619,416 598,993 
Total liabilities10,093,194 9,702,270 
    
Commitments and contingencies (Note 14)
  
  
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, 2023) at liquidation preference
4,350,000 4,350,000 
Common Shares, $0.10 par value, 650,000,000 shares authorized, 175,108,335 shares issued (175,670,727 shares at December 31, 2023)
17,511 17,567 
Paid-in capital 6,032,686 5,980,760 
Accumulated deficit (737,450)(267,910)
Accumulated other comprehensive loss(52,684)(67,239)
Total Public Storage shareholders’ equity 9,610,063 10,013,178 
Noncontrolling interests99,962 93,768 
Total equity9,710,025 10,106,946 
Total liabilities and equity$19,803,219 $19,809,216 

See accompanying notes.
1

PUBLIC STORAGE
CONSOLIDATED STATEMENTS OF INCOME
(Amounts in thousands, except per share amounts)
(Unaudited)


 Three Months Ended
September 30,		Nine Months Ended
September 30,
 2024202320242023
Revenues:
Self-storage facilities $1,110,115 $1,078,721 $3,295,896 $3,167,025 
Ancillary operations 77,643 65,099 222,293 190,797 
1,187,758 1,143,820 3,518,189 3,357,822 
Expenses:
Self-storage cost of operations 287,435 267,785 858,350 794,078 
Ancillary cost of operations 34,265 21,159 88,877 63,037 
Depreciation and amortization 280,330 238,748 848,875 682,531 
Real estate acquisition and development expense2,530 5,059 9,154 13,687 
General and administrative 26,214 20,732 74,130 57,459 
Interest expense 74,252 58,350 215,266 132,530 
 705,026 611,833 2,094,652 1,743,322 
Other increases (decreases) to net income:
Interest and other income 20,029 32,295 52,248 69,381 
Equity in earnings of unconsolidated real estate entity2,888 7,227 15,458 22,787 
Foreign currency exchange (loss) gain(70,572)47,880 (20,580)19,924 
Gain on sale of real estate 554 88 1,428 88 
Income before income tax expense435,631 619,477 1,472,091 1,726,680 
Income tax expense(2,488)(2,834)(6,042)(8,457)
Net income 433,143 616,643 1,466,049 1,718,223 
Allocation to noncontrolling interests (2,814)(3,345)(8,645)(9,188)
Net income allocable to Public Storage shareholders 430,329 613,298 1,457,404 1,709,035 
Allocation of net income to:
Preferred shareholders(48,678)(48,678)(146,029)(146,029)
Restricted share units and unvested LTIP units(939)(1,383)(3,088)(3,922)
Net income allocable to common shareholders$380,712 $563,237 $1,308,287 $1,559,084 
Net income per common share:
Basic$2.17 $3.21 $7.46 $8.89 
Diluted$2.16 $3.20 $7.43 $8.85 
Basic weighted average common shares outstanding 175,043175,499175,403175,451
Diluted weighted average common shares outstanding175,866176,150176,074176,170
See accompanying notes.
2

PUBLIC STORAGE
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Amounts in thousands)
(Unaudited)


 Three Months Ended
September 30,		Nine Months Ended
September 30,
 2024202320242023
Net income $433,143 $616,643 $1,466,049 $1,718,223 
Foreign currency translation gain (loss) on investment in Shurgard21,380 (5,958)14,567 (787)
Total comprehensive income 454,523 610,685 1,480,616 1,717,436 
Allocation to noncontrolling interests (2,827)(3,345)(8,657)(9,188)
Comprehensive income allocable to Public Storage shareholders$451,696 $607,340 $1,471,959 $1,708,248 

See accompanying notes.
3

PUBLIC STORAGE
CONSOLIDATED STATEMENTS OF EQUITY
Three Months Ended September 30, 2024
(Amounts in thousands, except share and per share amounts)
(Unaudited)

 Cumulative Preferred SharesCommon SharesPaid-in CapitalAccumulated DeficitAccumulated
Other Comprehensive Loss		Total
Public Storage Shareholders' Equity		Noncontrolling InterestsTotal Equity
Balances at June 30, 2024
$4,350,000 $17,501 $6,006,460 $(592,665)$(74,051)$9,707,245 $96,403 $9,803,648 
Issuance of common shares in connection with share-based compensation (97,448 shares)
— 10 20,576 — — 20,586 — 20,586 
Taxes withheld upon net share settlement of restricted share units— — (679)— — (679)— (679)
Share-based compensation expense— — 11,939 — — 11,939 — 11,939 
Acquisition of noncontrolling interests— — (1,193)— — (1,193)7 (1,186)
Contributions by noncontrolling interests— — — — — — 567 567 
Net income — — — 433,143 — 433,143 — 433,143 
Net income allocated to noncontrolling interests — — — (2,814)— (2,814)2,814 — 
Reallocation of equity— — (4,417)— — (4,417)4,417 — 
Distributions to:
Preferred shareholders (Note 9) — — — (48,678)— (48,678)— (48,678)
Noncontrolling interests — — — — — — (4,259)(4,259)
Common shareholders, restricted share unitholders and unvested LTIP unitholders ($3.00 per share) (Note 9)
— — — (526,436)— (526,436)— (526,436)
Other comprehensive gain— — — — 21,367 21,367 13 21,380 
Balances at September 30, 2024
$4,350,000 $17,511 $6,032,686 $(737,450)$(52,684)$9,610,063 $99,962 $9,710,025 
See accompanying notes.
4

PUBLIC STORAGE
CONSOLIDATED STATEMENTS OF EQUITY
Three Months Ended September 30, 2023
(Amounts in thousands, except share and per share amounts)
(Unaudited)

 Cumulative Preferred SharesCommon SharesPaid-in CapitalAccumulated DeficitAccumulated
Other Comprehensive Loss		Total
Public Storage Shareholders' Equity		Noncontrolling InterestsTotal Equity
Balances at June 30, 2023
$4,350,000 $17,549 $5,940,945 $(167,404)$(75,146)$10,065,944 $92,627 $10,158,571 
Issuance of common shares in connection with share-based compensation (8,429 shares)
— 1 1,105 — — 1,106 — 1,106 
Taxes withheld upon net share settlement of restricted share units— — (644)— — (644)— (644)
Share-based compensation expense— — 10,388 — — 10,388 — 10,388 
Contributions by noncontrolling interests— — — — — — 1,908 1,908 
Net income — — — 616,643 — 616,643 — 616,643 
Net income allocated to noncontrolling interests — — — (3,345)— (3,345)3,345 — 
Distributions to:
Preferred shareholders— — — (48,678)— (48,678)— (48,678)
Noncontrolling interests — — — — — — (3,648)(3,648)
Common shareholders and restricted share unitholders ($3.00 per share)
— — — (527,797)— (527,797)— (527,797)
Other comprehensive loss— — — — (5,958)(5,958)— (5,958)
Balances at September 30, 2023
$4,350,000 $17,550 $5,951,794 $(130,581)$(81,104)$10,107,659 $94,232 $10,201,891 
See accompanying notes.
5

PUBLIC STORAGE
CONSOLIDATED STATEMENTS OF EQUITY
Nine Months Ended September 30, 2024
(Amounts in thousands, except share and per share amounts)
(Unaudited)
 Cumulative Preferred SharesCommon SharesPaid-in CapitalAccumulated DeficitAccumulated
Other Comprehensive Loss		Total
Public Storage Shareholders' Equity		Noncontrolling InterestsTotal Equity
Balances at December 31, 2023
$4,350,000 $17,567 $5,980,760 $(267,910)$(67,239)$10,013,178 $93,768 $10,106,946 
Issuance of common shares in connection with share-based compensation (164,473 shares) (Note 11)
— 17 30,999 — — 31,016 — 31,016 
Taxes withheld upon net share settlement of restricted share units (Note 11)— — (6,295)— — (6,295)— (6,295)
Share-based compensation cost (Note 11)— — 35,696 — — 35,696 — 35,696 
Repurchase of common shares (726,865 shares) (Note 9)
— (73)— (199,927)— (200,000)— (200,000)
Acquisition of noncontrolling interests— — (1,193)— — (1,193)7 (1,186)
Contributions by noncontrolling interests— — — — — — 1,985 1,985 
Net income — — — 1,466,049 — 1,466,049 — 1,466,049 
Net income allocated to noncontrolling interests — — — (8,645)— (8,645)8,645 — 
Reallocation of equity— — (7,281)— — (7,281)7,281 — 
Distributions to:
Preferred shareholders (Note 9)— — — (146,029)— (146,029)— (146,029)
Noncontrolling interests — — — — — — (11,736)(11,736)
Common shareholders, restricted share unitholders and unvested LTIP unitholders ($9.00 per share/unit) (Note 9)
— — — (1,580,988)— (1,580,988)— (1,580,988)
Other comprehensive gain— — — — 14,555 14,555 12 14,567 
Balances at September 30, 2024
$4,350,000 $17,511 $6,032,686 $(737,450)$(52,684)$9,610,063 $99,962 $9,710,025 
See accompanying notes.
6

PUBLIC STORAGE
CONSOLIDATED STATEMENTS OF EQUITY
Nine Months Ended September 30, 2023
(Amounts in thousands, except share and per share amounts)
(Unaudited)

 Cumulative Preferred SharesCommon SharesPaid-in CapitalAccumulated DeficitAccumulated
Other Comprehensive Loss		Total
Public Storage Shareholders' Equity		Noncontrolling InterestsTotal Equity
Balances at December 31, 2022
$4,350,000 $17,527 $5,896,423 $(110,231)$(80,317)$10,073,402 $93,399 $10,166,801 
Issuance of common shares in connection with share-based compensation (235,647 shares)
— 23 31,267 — — 31,290 — 31,290 
Taxes withheld upon net settlement of restricted share units— — (10,040)— — (10,040)— (10,040)
Share-based compensation cost
— — 34,144 — — 34,144 — 34,144 
Contributions by noncontrolling interests— — — — — — 2,641 2,641 
Net income — — — 1,718,223 — 1,718,223 — 1,718,223 
Net income allocated to noncontrolling interests — — — (9,188)— (9,188)9,188 — 
Distributions to:
Preferred shareholders— — — (146,029)— (146,029)— (146,029)
Noncontrolling interests — — — — — — (10,996)(10,996)
Common shareholders and restricted share unitholders ($9.00 per share)
— — — (1,583,356)— (1,583,356)— (1,583,356)
Other comprehensive loss— — — — (787)(787)— (787)
Balances at September 30, 2023
$4,350,000 $17,550 $5,951,794 $(130,581)$(81,104)$10,107,659 $94,232 $10,201,891 

See accompanying notes.
7

PUBLIC STORAGE
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands)
(Unaudited)
 For the Nine Months Ended September 30,
 20242023
Cash flows from operating activities:    
Net income $1,466,049 $1,718,223 
Adjustments to reconcile net income to net cash flows from operating activities:
Gain on sale of real estate(1,428)(88)
Depreciation and amortization848,875 682,531 
Equity in earnings of unconsolidated real estate entity(15,458)(22,787)
Distributions from cumulative equity in earnings of unconsolidated real estate entity10,664 17,663 
Unrealized foreign currency exchange loss (gain)20,725 (19,937)
Share-based compensation expense32,101 31,309 
Other non-cash adjustments7,992 10,205 
Changes in operating assets and liabilities, excluding the impact of acquisitions:
Other assets(45,241)(40,719)
Accrued and other liabilities 35,356 78,564 
Net cash flows from operating activities 2,359,635 2,454,964 
Cash flows from investing activities:
Capital expenditures to maintain real estate facilities(174,896)(157,967)
Capital expenditures for property enhancements(106,172)(119,360)
Capital expenditures for energy efficiencies (LED lighting, solar)(35,784)(45,772)
Development and expansion of real estate facilities(247,161)(248,977)
Acquisition of real estate facilities and intangible assets(46,280)(301,324)
Acquisition of BREIT Simply Storage LLC, net of cash acquired— (2,178,151)
Distributions in excess of cumulative equity in earnings from unconsolidated real estate entity13,285 3,165 
Proceeds from sale of real estate investments6,014 101 
Net cash flows used in investing activities (590,994)(3,048,285)
Cash flows from financing activities:
Issuance costs on amendment of credit facility— (8,377)
Repayments of notes payable(808,473)(8,229)
Issuance of notes payable, net of issuance costs1,151,022 2,181,273 
Issuance of common shares in connection with share-based compensation30,917 31,099 
Taxes paid upon net share settlement of restricted share units(6,295)(10,040)
Repurchase of common shares(200,000)— 
Acquisition of noncontrolling interests (1,186)— 
Contributions by noncontrolling interests 1,985 2,641 
Distributions paid to preferred shareholders, common shareholders, restricted share unitholders and unvested LTIP unitholders(1,726,246)(1,728,852)
Distributions paid to noncontrolling interests (11,736)(10,996)
Net cash flows (used in) from financing activities (1,570,012)448,519 
Net increase (decrease) in cash and equivalents, including restricted cash $198,629 $(144,802)
See accompanying notes.
8

PUBLIC STORAGE
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands)
(Unaudited)

 For the Nine Months Ended September 30,
 20242023
Cash and equivalents, including restricted cash at beginning of the period:
Cash and equivalents $370,002 $775,253 
Restricted cash included in other assets30,373 29,904 
$400,375 $805,157 
Cash and equivalents, including restricted cash at end of the period:
Cash and equivalents $599,004 $629,773 
Restricted cash included in other assets— 30,582 
 $599,004 $660,355 
Supplemental schedule of non-cash investing and financing activities:
Costs incurred during the period remaining unpaid at period end for:
Capital expenditures to maintain real estate facilities$(11,206)$(10,405)
Capital expenditures for property enhancements(4,668)(4,637)
Capital expenditures for energy efficiencies (LED lighting, solar)(3,865)(574)
Construction or expansion of real estate facilities(43,075)(66,788)
Supplemental cash flow information:
Cash paid for interest, net of amounts capitalized$210,652 $90,487 
Cash paid for income taxes, net of refunds6,577 10,840 

See accompanying notes.
9

PUBLIC STORAGE
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2024
(Unaudited)


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, ancillary activities such as tenant reinsurance, merchandise sales, and third party management, as well as the acquisition and development of additional self-storage space.
Effective August 14, 2023, 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 September 30, 2024, Public Storage owned all of the general partner interests and approximately 99.87% of the limited partnership interests of PSA OP, with the remaining 0.13% 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 September 30, 2024, we owned interests in 3,053 self-storage facilities (with approximately 219.5 million net rentable square feet) located in 40 states in the United States (“U.S.”) operating under the Public Storage® name, and 1.1 million net rentable square feet of commercial and retail space. In addition, we managed 280 facilities (with approximately 21.0 million net rentable square feet) for third parties at September 30, 2024.
At September 30, 2024, 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 315 self-storage facilities (with approximately 17 million net rentable square feet) located in seven Western European countries, all operating under the Shurgard® name.
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. generally accepted accounting principles (“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, 2023.
Certain amounts previously reported in our September 30, 2023 Consolidated Statements of Income have been reclassified to conform to the September 30, 2024 presentation, with respect to the separate presentation of real estate acquisition and development expense in the amount of $5.1 million and $13.7 million for the three and nine months ended September 30, 2023, respectively, previously included in general and administrative expense. The reclassification had no impact on our net income.
Disclosures of the number and square footage of facilities, as well as the number and coverage of tenant reinsurance policies (Note 14) 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.).
10

PUBLIC STORAGE
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2024
(Unaudited)

Operating results for the three and nine months ended September 30, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024.
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, 2023.
3.Real Estate Facilities
Activity in real estate facilities during the nine months ended September 30, 2024 is as follows:
Nine Months Ended September 30, 2024
 (Amounts in thousands)
Operating facilities, at cost:
Beginning balance $27,465,238 
Capital expenditures to maintain real estate facilities173,684 
Capital expenditures for property enhancements109,320 
Capital expenditures for energy efficiencies (LED lighting, solar)39,291 
Acquisitions 45,579 
Dispositions and other(1,569)
Developed or expanded facilities opened for operation262,517 
Ending balance 28,094,060 
Accumulated depreciation:
Beginning balance (9,423,974)
Depreciation expense (748,398)
Ending balance (10,172,372)
Construction in process:
Beginning balance 345,453 
Costs incurred to develop and expand real estate facilities228,311 
Write-off of cancelled projects(733)
Developed or expanded facilities opened for operation(262,517)
Ending balance 310,514 
Total real estate facilities at September 30, 2024
$18,232,202 
During the nine months ended September 30, 2024, we acquired five self-storage facilities (0.3 million net rentable square feet of storage space), for a total cost of $46.3 million in cash. Approximately $0.7 million of the total cost was allocated to intangible assets. During the nine months ended September 30, 2024, we completed development and redevelopment activities costing $262.5 million, adding 1.1 million net rentable square feet of self-storage space. Construction in process at September 30, 2024 consisted of projects to develop new self-storage facilities and expand existing self-storage facilities.
In the nine months ended September 30, 2024, we sold portions of real estate facilities pursuant to eminent domain proceedings and land parcels for a total of $6.0 million in cash and recorded gains on sale of real estate of $1.4 million.
11

PUBLIC STORAGE
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2024
(Unaudited)

4.Investment in Unconsolidated Real Estate Entity
Throughout all periods presented, we had an approximately 35% equity interest in Shurgard. On November 14, 2023, Shurgard issued 8,163,265 new common shares to institutional investors. We participated on a pro-rata basis in the offering and acquired 2,863,674 common shares for a cost of $112.6 million. On September 26, 2024, Shurgard issued 1,114,194 new common shares to its shareholders who opted to exchange the cash dividend rights declared on August 13, 2024 for additional shares. We received 487,600 new common shares in exchange for all of our dividend rights. At September 30, 2024, we effectively owned 34,619,733 common shares of Shurgard. Based upon the closing price at September 30, 2024 (€42.10 per share of Shurgard common stock, at 1.116 exchange rate of U.S. Dollars to the Euro), the shares we owned had a market value of approximately $1.6 billion.
Our equity in earnings of Shurgard comprised our equity share of Shurgard’s net income, less amortization of the Shurgard Basis Differential (defined below). During the nine months ended September 30, 2024 and 2023, we received $3.2 million and $2.8 million of trademark license fees that Shurgard pays to us for the use of the Shurgard® trademark, respectively. We eliminated $1.1 million and $1.0 million of intra-entity profits and losses for the nine months ended September 30, 2024 and 2023, 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 on our Consolidated Statements of Income.
During the nine months ended September 30, 2024 and 2023, we received cash dividend distributions from Shurgard totaling $22.8 million and $19.8 million, respectively. Approximately $13.3 million and $3.2 million of total cash distributions from Shurgard during the nine months ended September 30, 2024 and 2023, respectively, represented distributions in excess of cumulative equity in earnings from Shurgard, which was classified within cash flows from investing activities in the Consolidated Statements of Cash Flows.
At September 30, 2024, our investment in Shurgard’s real estate assets exceeded our pro-rata share of the underlying amounts on Shurgard’s balance sheet by $59.3 million ($63.7 million at December 31, 2023). This differential (the “Shurgard Basis Differential”) includes our basis adjustments in Shurgard’s real estate assets net of related deferred income taxes. The Shurgard Basis Difference increased by $3.4 million during the nine months ended September 30, 2024, due to an increase of our ownership interest in Shurgard from the exchange of our cash dividend rights for additional common shares of Shurgard. The Shurgard Basis Differential is being amortized as a reduction to equity in earnings of the Unconsolidated Real Estate Entity. Such amortization totaled approximately $7.8 million and $4.6 million during the nine months ended September 30, 2024 and 2023, respectively.
As of September 30, 2024 and 2023, we translated the book value of our investment in Shurgard from Euro to U.S. Dollars and recorded $14.6 million other comprehensive gain and $0.8 million other comprehensive loss during the nine months ended September 30, 2024 and 2023, respectively.
5.Goodwill and Other Intangible Assets

Goodwill and other intangible assets consisted of the following (amounts in thousands):
At September 30, 2024At December 31, 2023
Gross Book ValueAccumulated AmortizationNet Book ValueGross Book ValueAccumulated AmortizationNet Book Value
Goodwill$165,843 $— $165,843 $165,843 $— $165,843 
Shurgard® Trade Name18,824 — 18,824 18,824 — 18,824 
Finite-lived intangible assets, subject to amortization996,279 (886,400)109,879 995,578 (792,978)202,600 
Total goodwill and other intangible assets$1,180,946 $(886,400)$294,546 $1,180,245 $(792,978)$387,267 
12

PUBLIC STORAGE
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2024
(Unaudited)

Finite-lived intangible assets consist primarily of acquired customers in place. Amortization expense related to intangible assets subject to amortization was $26.6 million and $93.4 million for the three and nine months ended September 30, 2024, respectively, and $16.0 million and $41.4 million for the same periods in 2023. During the nine months ended September 30, 2024, intangibles increased $0.7 million, in connection with the acquisition of real estate facilities (Note 3).
The estimated future amortization expense for our finite-lived intangible assets at September 30, 2024 is as follows (amounts in thousands):
YearAmount
Remainder of 2024$23,451 
202560,632 
202619,129 
20272,797 
2028382 
Thereafter3,488 
Total$109,879 
6.Credit Facility
On June 12, 2023, PSOC entered into an amended revolving credit agreement (the “Credit Facility”), which increased our borrowing limit from $500 million to $1.5 billion and extended the maturity date from April 19, 2024 to June 12, 2027. We have the option to further extend the maturity date by up to one additional year with additional extension fees up to 0.125% of the extended commitment amount. Amounts drawn on the Credit Facility bear annual interest at rates ranging from SOFR plus 0.65% to SOFR plus 1.40% depending upon our credit rating (SOFR plus 0.70% at September 30, 2024). We are also required to pay a quarterly facility fee ranging from 0.10% per annum to 0.30% per annum depending upon our credit rating (0.10% per annum at September 30, 2024). At September 30, 2024 and October 30, 2024, we had no outstanding borrowings under this Credit Facility. We had undrawn standby letters of credit, which reduce our borrowing capacity, totaling $14.4 million at September 30, 2024 ($14.6 million at December 31, 2023). The Credit Facility has various customary restrictive covenants with which we were in compliance at September 30, 2024.
Public Storage has provided a full and unconditional guarantee of PSOC’s obligations under the Credit Facility.
13

PUBLIC STORAGE
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2024
(Unaudited)

7.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 September 30, 2024 and December 31, 2023 are set forth in the tables below:
   
Amounts at September 30, 2024
Amounts at
 December 31, 2023
 Coupon RateEffective Rate PrincipalUnamortized CostsBook
 Value		Fair
 Value		Book
 Value		Fair
 Value
   ($ amounts in thousands)
U.S. Dollar Denominated Unsecured Debt
Notes due April 23, 2024
SOFR+0.47%
5.818%$— $— $— $— $699,779 $700,031 
Notes due July 25, 2025
SOFR+0.60%
5.789%400,000 (667)399,333 401,358 398,722 400,295 
Notes due February 15, 2026
0.875%1.030%500,000 (1,026)498,974 478,521 498,419 462,362 
Notes due November 9, 20261.500%1.640%650,000 (1,834)648,166 617,195 647,513 597,131 
Notes due April 16, 2027
SOFR+0.70%
5.954%700,000 (2,717)697,283 708,988 — — 
Notes due September 15, 2027
3.094%3.218%500,000 (1,568)498,432 487,882 498,036 476,394 
Notes due May 1, 2028
1.850%1.962%650,000 (2,414)647,586 602,292 647,078 584,520 
Notes due November 9, 20281.950%2.044%550,000 (1,976)548,024 506,089 547,663 490,758 
Notes due January 15, 20295.125%5.260%500,000 (2,507)497,493 522,552 497,053 516,899 
Notes due May 1, 2029
3.385%3.459%500,000 (1,404)498,596 486,198 498,363 477,692 
Notes due May 1, 2031
2.300%2.419%650,000 (4,498)645,502 577,837 644,988 562,240 
Notes due November 9, 20312.250%2.322%550,000 (2,517)547,483 478,168 547,218 469,845 
Notes due August 1, 20335.100%5.207%700,000 (5,117)694,883 727,196 694,448 725,753 
Notes due August 1, 20535.350%5.474%900,000 (15,913)884,087 930,953 592,017 628,413 
 7,750,000 (44,158)7,705,842 7,525,229 7,411,297 7,092,333 
Euro Denominated Unsecured Debt
Notes due April 12, 2024
1.540%1.540%— — — — 110,372 109,380 
Notes due November 3, 2025
2.175%2.175%270,110 — 270,110 267,303 267,116 261,083 
Notes due September 9, 20300.500%0.640%781,267 (6,650)774,617 667,856 765,119 638,177 
Notes due January 24, 2032
0.875%0.978%558,048 (3,920)554,128 495,753 547,540 455,895 
Notes due April 11, 20394.080%4.080%167,415 (74)167,341 182,390 — — 
   1,776,840 (10,644)1,766,196 1,613,302 1,690,147 1,464,535 
 Mortgage Debt, secured by 2 real estate facilities with a net book value of $11.3 million
4.347%4.347%1,740 — 1,740 1,681 1,833 1,733 
 $9,528,580 $(54,802)$9,473,778 $9,140,212 $9,103,277 $8,558,601 

Public Storage has provided a full and unconditional guarantee of PSOC’s obligations under each series of unsecured notes.
14

PUBLIC STORAGE
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2024
(Unaudited)

U.S. Dollar Denominated Unsecured Notes
On April 16, 2024, PSOC completed a public offering of $1.0 billion aggregate principal amount of senior notes, including $700 million aggregate principal amount of floating rate senior notes bearing interest at a rate of Compounded SOFR + 0.70% (reset quarterly) maturing on April 16, 2027 and $300 million aggregate principal amount of senior notes bearing interest at a fixed annual rate of 5.350% maturing on August 1, 2053. The 2053 notes issued at a discount of $5.3 million constitute a further issuance of, and form a single series with, our outstanding 5.350% senior notes due 2053 issued on July 26, 2023 in the aggregate principal amount of $600 million. Interest on the floating rate senior notes is payable quarterly, commencing on July 16, 2024. Interest on the 2053 notes is payable semi-annually, commencing on August 1, 2024. In connection with the offering, we received $988.5 million in net proceeds from the offering.
On April 23, 2024, we repaid PSOC’s outstanding $700 million aggregate principal amount of SOFR + 0.47% floating rate senior notes at maturity.
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 September 30, 2024. Included in these covenants are (a) a maximum Debt to Total Assets of 65% (approximately 18% at September 30, 2024) and (b) a minimum ratio of Adjusted EBITDA to Interest Expense of 1.5x (approximately 12x for the twelve months ended September 30, 2024) as well as covenants limiting the amount we can encumber our properties with mortgage debt.
Euro Denominated Unsecured Notes
At September 30, 2024, our Euro denominated unsecured notes (the “Euro Notes”) consisted of four tranches: (i) €242.0 million issued to institutional investors on November 3, 2015, (ii) €500.0 million issued in a public offering on January 24, 2020, (iii) €700.0 million issued in a public offering on September 9, 2021, and (iv) €150.0 million issued to institutional investors on April 11, 2024. The Euro Notes have financial covenants similar to those of the U.S. Dollar Denominated Unsecured Notes.
The €150.0 million notes issued to institutional investors on April 11, 2024 bear interest at a fixed rate of 4.080% and mature on April 11, 2039. Interest is payable semi-annually. We received $162.5 million in net proceeds upon converting the Euros to U.S. Dollars. On April 11, 2024, we repaid PSOC’s outstanding €100.0 million aggregate principal amount 1.540% senior notes due April 12, 2024 to the same institutional investors for $108.4 million.
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 (loss) gain” on our income statement (losses of $71.1 million and $20.7 million for the three and nine months ended September 30, 2024, respectively, as compared to gains of $48.2 million and $20.1 million for the three and nine months ended September 30, 2023, respectively).
Mortgage Notes
We assumed our non-recourse mortgage debt in connection with property acquisitions, and we recorded such debt at fair value with any premium or discount to the stated note balance amortized using the effective interest method.
At September 30, 2024, 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 September 30, 2024, approximate principal maturities of our Notes Payable are as follows (amounts in thousands):
15

PUBLIC STORAGE
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2024
(Unaudited)

 Unsecured DebtMortgage DebtTotal
Remainder of 2024$—$31$31
2025670,110131670,241
20261,150,0001381,150,138
20271,200,0001461,200,146
20281,200,0001291,200,129
Thereafter 5,306,7301,1655,307,895
$9,526,840$1,740$9,528,580
Weighted average effective rate 3.2%4.3%3.2%
Interest capitalized as real estate totaled $8.2 million and $6.8 million for the nine months ended September 30, 2024 and 2023, respectively.
8.Noncontrolling Interests
There are noncontrolling interests related to several subsidiaries of PSOC we consolidate of which we do not own 100% of the equity. At September 30, 2024, certain of these subsidiaries have issued 499,966 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. The holders of these partnership units are entitled to receive the same per-unit cash distributions equal to the dividends paid on our common shares.
Noncontrolling interests also include the partnership interests of PSA OP not owned by the Company, including common units (“OP Units”) and vested LTIP units from equity awards we issue to certain officers and trustees of the Company (see Note 11 Share-based Compensation). 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 September 30, 2024, approximately 0.13% of the partnership interests of PSA OP, representing 226,587 vested LTIP units, were not owned by the Company. There were no outstanding OP Units not owned by the Company at September 30, 2024. 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.
16

PUBLIC STORAGE
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2024
(Unaudited)

9.Shareholders’ Equity

Preferred Shares
At September 30, 2024 and December 31, 2023, we had the following series of Cumulative Preferred Shares (“Preferred Shares”) outstanding:

   
At September 30, 2024
At December 31, 2023
SeriesEarliest Redemption DateDividend RateShares OutstandingLiquidation PreferenceShares OutstandingLiquidation Preference
   (Dollar amounts in thousands)
Series F6/2/20225.150 %11,200 $280,000 11,200 $280,000 
Series G8/9/20225.050 %12,000 300,000 12,000 300,000 
Series H3/11/20245.600 %11,400 285,000 11,400 285,000 
Series I9/12/20244.875 %12,650 316,250 12,650 316,250 
Series J11/15/20244.700 %10,350 258,750 10,350 258,750 
Series K12/20/20244.750 %9,200 230,000 9,200 230,000 
Series L6/17/20254.625 %22,600 565,000 22,600 565,000 
Series M8/14/20254.125 %9,200 230,000 9,200 230,000 
Series N10/6/20253.875 %11,300 282,500 11,300 282,500 
Series O11/17/20253.900 %6,800 170,000 6,800 170,000 
Series P6/16/20264.000 %24,150 603,750 24,150 603,750 
Series Q8/17/20263.950 %5,750 143,750 5,750 143,750 
Series R11/19/20264.000 %17,400 435,000 17,400 435,000 
Series S1/13/20274.100 %10,000 250,000 10,000 250,000 
Total Preferred Shares174,000 $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 September 30, 2024, 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.
17

PUBLIC STORAGE
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2024
(Unaudited)

Common Share Repurchases
Our Board has authorized a share repurchase program pursuant to which management may repurchase up to 35,000,000 of our common shares on the open market or in privately negotiated transactions. During the nine months ended September 30, 2024, we repurchased 726,865 of our common shares under the repurchase program on the open market for a total cost of $200.0 million. The repurchased shares are constructively retired and returned to an authorized and unissued status. There are 10,551,219 common shares that may yet be repurchased under our repurchase program as of September 30, 2024.
Dividends and Distributions
Dividends and distributions paid to our common shareholders, restricted share unitholders, deferred share unitholders, and unvested LTIP unitholders, totaled $526.2 million ($3.00 per share) and $527.6 million ($3.00 per share) for the three months ended September 30, 2024 and 2023, respectively, and $1.6 billion ($9.00 per share) for each of the nine months ended September 30, 2024 and 2023. In addition, we accrued $0.3 million and $0.2 million of dividends and distributions to holders of unearned performance-based restricted share units and LTIP units for the three months ended September 30, 2024 and 2023, respectively, and $0.8 million and $0.5 million for the nine months ended September 30, 2024 and 2023, respectively.
Preferred share dividends paid totaled $48.7 million for each of the three months ended September 30, 2024 and 2023, and $146.0 million for each of the nine months ended September 30, 2024 and 2023.
10.Related Party Transactions
At September 30, 2024, Tamara Hughes Gustavson, a current member of our Board, held less than a 0.1% equity interest in, and is a manager of, a limited liability company that owns 66 self-storage facilities in Canada. Two of Ms. Gustavson’s adult children own the remaining equity interest in the limited liability company. These facilities operate under the Public Storage® tradename, which we license to the owners of these facilities for use in Canada on a royalty-free, non-exclusive basis. We have no ownership interest in these facilities, and we do not own or operate any facilities in Canada. If we chose to acquire or develop our own facilities in Canada, we would have to share the use of the Public Storage® name in Canada. We have a right of first refusal, subject to limitations, to acquire the stock or assets of the corporation engaged in the operation of these facilities if their owners agree to sell them. Our subsidiaries reinsure risks relating to loss of goods stored by customers in these facilities, and have received premium payments of approximately $1.6 million for each of the nine months ended September 30, 2024 and 2023.
11.Share-Based Compensation
Under various share-based compensation plans and under terms established or modified by our Board or a committee thereof, we grant equity awards to trustees, officers, and key employees, including non-qualified options to purchase the Company’s common shares, restricted share units (“RSUs”), deferred share units (“DSUs”), and unrestricted common shares issued in lieu of trustee compensation.
In February 2024, we amended our 2021 Equity and Performance-Based Incentive Plan to further provide for the grant of awards to certain officers and trustees of the Company in the form of LTIP units and appreciation-only LTIP units (“AO LTIP units”) of PSA OP. LTIP units are structured as “profit interests” for U.S. federal income tax purposes. During the nine months ended September 30, 2024, we issued LTIP units and AO LTIP units in substitution for 156,632 RSUs and 2,238,874 stock options, respectively. The LTIP units and AO LTIP units issued have the same vesting conditions as the original awards and remain classified as equity awards. The fair value of the LTIP units and AO LTIP units issued is materially the same as the original awards immediately before the substitution. As a result, we did not adjust the share-based compensation costs associated with these substituted awards.
18

PUBLIC STORAGE
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2024
(Unaudited)

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. In addition, $0.7 million and $2.5 million of share-based compensation cost was capitalized as real estate facilities for the three and nine months ended September 30, 2024, respectively, as compared to $0.5 million and $1.8 million for the same periods of 2023, respectively.
 Three Months Ended September 30,Nine Months Ended
September 30,
 2024202320242023
 (Amounts in thousands)
Self-storage cost of operations$2,927 $2,964 $9,237 $10,316 
Ancillary cost of operations248 320 874 960 
Real estate acquisition and development expense635 302 2,063 884 
General and administrative7,117 5,929 19,927 19,149 
Total$10,927 $9,515 $32,101 $