ITEM 1A. RISK FACTORS

ITEM 1A.     Risk Factors In addition to the other information in our Annual Report on Form 10-K, you should consider the risks described below that we believe may be material to investors in evaluating the Company. This section contains forward-looking statements, and in considering these statements, you should refer to the qualifications and limitations on our forward-looking statements that are described in “Item 1. Business.” Risks Related to Our Properties and Our Business Natural disasters, terrorist attacks, civil unrest, or other events that could damage or otherwise disrupt our ability to operate our facilities could adversely impact our business and financial results. Natural disasters, such as earthquakes, fires, hurricanes, drought, extreme temperatures and floods, terrorist attacks, civil unrest, and other events that damage our facilities or our tenants’ property, or that make our facilities temporarily unavailable, have in the past and may in the future adversely impact our business and financial results. Damage and business interruption losses could exceed the aggregate limits of our insurance coverage. In addition, because we self-insure a portion of our risks, losses below a certain level may not be covered by insurance. See Note 16 to our December 31, 2025 consolidated financial statements for a description of the risks of losses that are not covered by third-party insurance contracts. Our exposure to these types of events is increased by potential tenant claims associated with our tenant reinsurance business. In addition, perceptions about the risk of property loss from these events could negatively impact self-storage demand. Operating costs, including property taxes, could increase. We could be subject to increases in property or other taxes, repair and maintenance costs, payroll, utility costs, insurance premiums, workers compensation, and other operating expenses due to various factors such as inflation, labor shortages, commodity and energy price increases, weather, increases to minimum wage rates, supply chain disruptions, and changes to governmental safety and real estate use limitations and other governmental actions. Our property tax expense, generally depends upon the assessed value of our real estate facilities as determined by assessors and government agencies and, accordingly, could be subject to substantial increases if such agencies change their valuation approaches or opinions or if new laws are enacted, especially if new approaches are adopted or laws are enacted that result in increased property tax assessments in states or geographies where we have a high concentration of facilities. See also “We have exposure to increased property tax in California” below. The acquisition of existing properties or self-storage operating companies is subject to risks that may adversely affect our growth and financial results. We have acquired self-storage facilities and self-storage operating companies in the past, and we expect to continue to do so in the future. We face significant competition for suitable acquisition properties and companies from other real estate investors, including operating companies and private equity funds. As a result, we may be unable to acquire the companies or additional properties we desire or the purchase price for desirable companies or properties may be significantly increased. Failures or unexpected circumstances in integrating facilities or companies that we acquire, or circumstances we did not detect or anticipate during due diligence, such as environmental matters, needed repairs or deferred maintenance, customer collection issues, assumed liabilities, turnover of critical personnel involved in acquired operating companies, or the effects of increased property tax following reassessment of a newly-acquired property, as well as the general risks of real estate investment and mergers and acquisitions, could jeopardize realization of the anticipated earnings from an acquisition. Our development program subjects us to risks. There are significant risks involved in developing self-storage facilities, such as delays, cost increases, or inability to complete development projects due to changes in or failure to meet government or regulatory requirements, failure of revenue to meet our underwriting estimates, delays caused by weather issues, unforeseen site conditions, or personnel problems. Self-storage space is generally not pre-leased, and rent-up of newly developed space can be delayed or ongoing cash flow yields can be reduced due to competition, reductions in storage demand, or other factors. 8 There is significant competition among self-storage operators and from other storage alternatives. Our self-storage facilities generate most of our revenue and earnings. Significant competition from self-storage operators, property developers, and other storage alternatives may adversely impact our ability to attract and retain customers and may negatively impact our ability to generate revenue. Competition in the local market areas in which many of our properties are located is significant and affects our occupancy levels, rental rates, and operating expenses, particularly advertising costs. There may be an increasing influx of capital from outside financing sources driving more money, development, and supply into the industry. Development of self-storage facilities may increase, which may intensify competition as newly developed facilities are opened. Development of self-storage facilities by other operators could increase, due to increases in availability of funds for investment or other reasons, and further intensify competition. Demand for self-storage facilities may be affected by customer perceptions and factors outside of our control. Significantly lower logistics costs could introduce new competitors, such as valet-style storage services, which may reduce the demand for traditional self-storage. Customer preferences and/or needs for self-storage could change, decline, or shift to other product types, thereby impacting our business model and ability to grow and/or generate revenues. Shifts in population and demographics could cause the geographical distribution of our portfolio to be suboptimal and affect our ability to maintain occupancy and attract new customers. Security incidents could result in the perception that our properties are not safe. If our customers do not feel our properties are safe, they may select competitors for their self-storage needs, or if there is an industry perception of inadequate security generally, customer use of self-storage could be negatively impacted. Our newly developed and expanded facilities, and facilities that we manage for third party owners, may negatively impact the revenues of our legacy facilities. We continue to develop new self-storage facilities and expand our existing self-storage facilities. In addition, we are seeking to increase the number of self-storage facilities that we manage for third party owners in exchange for a fee, many of which are in the process of stabilization and are near our existing stabilized self-storage facilities. In order to hasten the fill-up of these new facilities, we aggressively price such space during the fill-up period. While we believe that this aggressive pricing allows us to increase our market share relative to our competitors and increase the cash flows of these properties, such pricing and the added capacity may also negatively impact our existing stabilized self-storage facilities that are near these unstabilized facilities. We may incur significant liabilities from environmental contamination or moisture infiltration. Existing or future laws impose or may impose liability on us to clean up environmental contamination on or around properties that we currently or previously owned or operated, even if we were not responsible for or aware of the environmental contamination or even if such environmental contamination occurred prior to our involvement with the property. We have conducted preliminary environmental assessments on most of our properties, which have not identified any material liabilities. These assessments, commonly referred to as “Phase 1 Environmental Assessments,” include an investigation (excluding soil or groundwater sampling or analysis) and a review of publicly available information regarding the site and other nearby properties. We are also subject to potential liability relating to moisture infiltration, which can result in mold or other damage to our or our customers’ property, as well as potential health concerns. When we receive a complaint or otherwise become aware that an air quality concern exists, we implement corrective measures and seek to work proactively with our customers to resolve issues, subject to our contractual limitations on liability for such claims. We are not aware of any environmental contamination or moisture infiltration related liabilities at any of our properties that could be material to our overall business, financial condition, or results of operation. However, we may not have detected all material liabilities, we could acquire properties with material undetected liabilities, or new conditions could arise or develop at our properties, any of which could result in a cash settlement or adversely affect our ability to sell, lease, operate, or encumber affected facilities. 9 Elevated interest rate levels could adversely impact us and our tenants. Interest rates remain elevated compared to recent years. As a result, if we issued new debt or preferred shares or refinanced our indebtedness, our debt service costs or preferred share dividend yields would likely be, based on current interest rates, significantly higher than current financing costs. Elevated interest rates also adversely impact the relative attractiveness of the dividend yield on our common shares. Increases in our cost of capital impact our assessment of the yields we consider appropriate to support pursuing property acquisition and development opportunities and thus can impact our external growth prospects. The degree and pace of these changes have had and may continue to have adverse macroeconomic effects that have and may continue to have adverse impacts on our tenants, including as a result of economic recession, increased unemployment, and increased financing costs. For more information on interest rate risk, see Part II, “Item 7A. Quantitative and Qualitative Disclosures About Market Risk”. Economic conditions can adversely affect our business, financial condition, and growth. Economic downturns or adverse economic or industry conditions, including those related to high levels of inflation, could adversely impact our financial results, growth, and access to capital. Our revenues and operating cash flow can be negatively impacted by reductions in employment and population levels, household and disposable income, and other general economic factors that lead to a reduction in demand for self-storage space in each of the markets in which we operate. We have exposure to European operations through our ownership in Shurgard. Shurgard, as an owner, operator, and developer of self-storage facilities, is subject to many of the same risks we are with respect to self-storage. However, through our investment in Shurgard, we are exposed to additional risks unique to the various European markets in which Shurgard operates, which may adversely impact our business and financial results, and many of which are referred to in Shurgard’s public filings. These risks include the following: • Currency risks: Currency fluctuations can impact the fair value of our investment in Shurgard, our equity earnings, our ongoing dividends, and any other related repatriations of cash. • Legislative, tax, and regulatory risks: Shurgard is subject to a variety of local, national, and pan-European laws and regulations related to permitting and land use, the environment, labor, and other areas, as well as income, property, sales, and value added and employment tax. These laws and regulations can be difficult to apply or interpret, can vary in each country or locality, and are subject to unexpected changes in their form and application due to regional, national, or local political uncertainty and other factors. Such changes, or Shurgard’s failure to comply with these laws, could subject it to penalties or other sanctions, adverse changes in business processes, and, potentially, adverse income tax, property tax, or other tax burdens. • Impediments to capital repatriation could negatively impact the realization of our investment in Shurgard: Laws in Europe and the U.S. may create, impede, or increase our cost to repatriate distributions received from Shurgard or proceeds from the sale of Shurgard shares. • Risks of collective bargaining: Collective bargaining, which is prevalent in certain areas in Europe, could negatively impact Shurgard’s labor costs or operations. Many of Shurgard’s employees participate in various national unions. • Potential operating and individual country risks: Economic slowdowns or extraordinary political or social change in the countries in which it operates have posed, and could continue to pose, challenges or result in future reductions of Shurgard’s operating cash flows. • Liquidity of our ownership stake: We have no plans to liquidate our interest in Shurgard. However, while Shurgard is a publicly held entity, if we chose to, our ability to liquidate our shares in Shurgard in an efficient manner could be limited by the level of Shurgard’s public “float” relative to any ownership stake we sought to sell. Our existing relationship with our legacy joint venture partner may place further contractual limitations on our ability to sell all of the shares we own if we desired to do so. 10 • Impediments of Shurgard’s public ownership structure: Shurgard’s strategic decisions, involving activities such as borrowing money, capital contributions, raising capital from third parties, and selling or acquiring significant assets, are determined by its board of directors. As a result, Shurgard may be precluded from taking advantage of opportunities that we would find attractive but that we may not be able to pursue separately, or it could take actions that we do not agree with. Public health and other crises have adversely impacted, and may in the future adversely impact, our business. Our business is subject to risks from public health and other crises like the COVID-19 pandemic, including, among others: • risk of illness or death of our employees or tenants; • negative impacts on economic conditions in our markets, which may reduce the demand for self-storage; • risk that there could be an out-migration of population from major markets where we operate; • government restrictions that (i) limit or prevent use of our facilities, (ii) limit our ability to increase rent or otherwise limit the rent we can charge, (iii) limit our ability to collect rent or evict delinquent tenants, or (iv) limit our ability to complete development and redevelopment projects; • risk that we could experience a change in the move-out patterns of our long-term tenants due to economic uncertainty and increases in unemployment, which could lead to lower occupancies and rent “roll down” as long-term tenants are replaced with new tenants at lower rates; and • risk of negative impacts on the cost and availability of debt and equity capital, which could have a material impact upon our capital and growth plans. Local, state, and federal governments have and may in the future adopt regulations that could adversely impact our operations. Local, state, and federal governments have and may in the future adopt regulations that could adversely impact our operations, including in response to natural disasters and public health crises. For example, in response to wildfires in 2018, 2019, and early 2025 and floods in 2023, the State of California and some localities in California adopted temporary regulations that imposed certain limits on the rents we could charge at certain of our facilities and the extent to which we could increase rents to existing tenants. Similarly, in response to the COVID-19 pandemic, certain localities adopted restrictions on the use of certain of our facilities, limited our ability to increase rents, limited our ability to collect rent or evict delinquent tenants, and limited our ability to complete development and redevelopment projects. California and other jurisdictions have also adopted regulations restricting our operations relating to pricing methodologies, restrictions on fees, procedures for selling stored property of delinquent tenants, marketing restrictions related to price changes and promotional rates, zoning restrictions and other matters. Similar restrictions could be imposed in the future, including in response to significant events and these restrictions could adversely impact our operations. Our marketing and pricing strategies may fail to be effective or may be constrained by factors outside of our control. Marketing initiatives, including our increasing dependence on Google to source customers, may fail to be effective and could negatively impact financial performance. More than half of our new storage customers in 2025 were sourced directly or indirectly through “unpaid” search and “paid” search campaigns on Google. We believe that the vast majority of customers searching for self-storage use Google at some stage in their shopping experience. Google is providing tools to allow smaller and less sophisticated operators to bid for search terms, increasing competition for self-storage search terms. The predominance of Google in the shopping experience, as well as Google’s enabling of additional competitors to bid for placements in self-storage search terms, may reduce the number of new customers that we can procure, and/or increase our costs to obtain new customers. In addition, the inability to utilize our pricing methodology due to regulatory or market constraints could also significantly impact our financial results. 11 We are exposed to ongoing litigation and other legal and regulatory actions, which may divert management’s time and attention, require us to pay damages and expenses or restrict the operation of our business. We are subject to the risk of legal claims and proceedings (including class actions) and regulatory enforcement actions across many jurisdictions in the ordinary course of our business and otherwise, and we could incur significant liabilities and substantial legal fees from these actions. Resolution of these claims and actions may divert time and attention of our management and could involve payment of damages or expenses by us, all of which may be significant, and could damage our reputation and our brand. In addition, any such resolution could involve our agreement to terms that restrict the operation of our business. The results of legal proceedings cannot be predicted with certainty. We cannot guarantee that losses incurred in connection with any current or future legal or regulatory proceedings or actions will not exceed any provisions we may have set aside in respect of such proceedings or actions or any available insurance coverage. Any such legal claims, proceedings, and regulatory enforcement actions could negatively impact our operating results, cash flow available for distribution or reinvestment, and/or the price of our common shares. Our use of or failure to adopt advancements in information technology, such as artificial intelligence, may hinder or prevent us from achieving strategic objectives or otherwise harm our business. Our use of or inability to safely and effectively adopt and deliver new technological capabilities and enhancements in line with strategic objectives, including artificial intelligence and machine learning, may put us at a competitive disadvantage; cause us to miss opportunities to innovate, achieve efficiencies, or improve the customer experience; or adversely impact our business, reputation, results of operations, and financial condition. For example, we have begun to utilize artificial intelligence technologies in various aspects of our business, which are susceptible to errors and other malfunctions which could lead to operational challenges and reputational risks. Legislative and regulatory activity related to information technology, including related to privacy, may also result in new laws that are applicable to us and that may hinder our business, including by restricting our use of customer data or otherwise regulating the use of algorithms and automated processing in ways that could materially affect our business or lead to significant increases in the cost of compliance. In addition, the use of emerging technologies, including artificial intelligence, entails risks including risks relating to the possibility of intellectual property infringement or misappropriation; data privacy; quality control related to artificial intelligence outputs; new or enhanced governmental or regulatory scrutiny, requirements, litigation, or other liability; ethical concerns; negative consumer perceptions as to automation and artificial intelligence; or other complications or liabilities that could adversely affect our business, reputation, results of operations, or financial results. Although we have adopted policies with respect to these risks, including related to the development, deployment and monitoring of artificial intelligence tools, we cannot be certain that such policies will be effective. The failure or disruption of our computer and communications systems, on which we are heavily dependent, could significantly harm our business. We are heavily dependent upon automated information technology and Internet commerce, with more than half of our new customers coming from the telephone or over the Internet. We centrally manage significant components of our operations with our computer systems, including our financial information, and we also rely extensively on third-party vendors to retain data, process transactions, and provide other systems services. These systems are subject to damage or interruption from power outages, system, network, internet and telecommunications failures, hackers, including through a ransomware attack, computer worms, viruses, and other destructive or disruptive cybersecurity incidents, and catastrophic events. Such incidents could also result in significant costs to repair or replace such networks or information systems, as well as actual monetary losses in case of a cybersecurity incident that resulted in fraudulent payments or other cash transactions. Our operations could be severely impacted by a natural disaster, terrorist attack, attack by hackers, acts of vandalism, data theft, misplaced or lost data, programming or human error, or other circumstance that results in a significant outage of our systems or those of our third party providers, despite our use of back up and redundancy measures. While we may be entitled to damages if our third-party providers fail to satisfy their security-related obligations to us, any award may be insufficient to cover our damages, or we may be unable to recover such award. 12 If our confidential information is compromised or corrupted, including as a result of a cybersecurity incident, our reputation and business relationships could be damaged and our financial condition and operating results could be adversely affected. In the ordinary course of our business we acquire and store sensitive data, including personally identifiable information of our prospective and current customers and our employees. The secure processing and maintenance of this information is critical to our operations and business strategy. Although we believe we and our third-party service providers have taken commercially reasonable steps to protect the security of our confidential information, information security risks have generally increased in recent years due to the rise in new technologies and the increased sophistication and activities of perpetrators of cyberattacks. Further, new technologies such as artificial intelligence may be more capable at evading these safeguard measures. Despite our security measures, we face cybersecurity threats, including system, network, or Internet failures; cyberattacks, ransomware, and other malware; social engineering; and phishing schemes. In these cases, our information technology and infrastructure could be vulnerable and our or our customers’ or employees’ confidential information could be compromised or misappropriated. Any such cybersecurity incident, including those impacting personal information, could result in serious and harmful consequences for us or our customers. A cybersecurity incident could also interfere with our ability to comply with financial reporting requirements. Additionally, future or past business transactions (such as acquisitions or integrations) could expose us to additional cybersecurity risks and threats, as our systems could be negatively affected by vulnerabilities present in acquired or integrated entities’ systems and technologies. Furthermore, we may discover security issues that were not found during due diligence of such acquired or integrated entities, and it may be difficult to integrate companies into our information technology environment and security program. Our confidential information may also be compromised due to programming or human error, negligence, or fraud. Although we and our third-party service providers make efforts to maintain the security and integrity of our information, including the implementation of security measures, required employee awareness training, and the existence of a disaster recovery plan, there is no guarantee that they will be adequate to safeguard against all cybersecurity incidents or misuses of data. In addition, as the regulatory environment related to information security, data collection and use, and privacy becomes increasingly rigorous, with new and changing requirements applicable to our business from multiple regulatory agencies at the local, state, federal, or international level, compliance with those requirements could also result in additional costs, or we could fail to comply with those requirements due to various reasons. Any such access, disclosure, or other loss of information could result in legal claims or proceedings, liability under laws that protect the privacy of personal information, regulatory penalties, disruption to our operations and the services we provide to customers, or damage to our reputation, any of which could adversely affect our results of operations, reputation, and competitive position. In addition, our customers could lose confidence in our ability to protect their personal information, which could cause them to discontinue leasing our self-storage facilities. Such events could lead to lost future revenues and adversely affect our results of operations, or result in remedial and other costs, fines, or lawsuits, which could exceed any available insurance that we have procured. We have identified and expect to continue to identify cyberattacks and cybersecurity incidents on our systems and those of third parties we rely upon, but none of the cyberattacks and incidents we have identified to date has had a material impact on our business or operations. While we have purchased cybersecurity insurance, there are no assurances that the coverage would be adequate in relation to any incurred losses. Moreover, as cyberattacks increase in frequency and magnitude, we may be unable to obtain cybersecurity insurance in amounts and on terms we view as adequate for our operations. Further information relating to cybersecurity risk management is discussed in Item 1C. “Cybersecurity” in this report. If we fail to successfully execute our recent leadership succession, we may struggle to effectively execute our strategic plan. We recently announced leadership changes, including a change in our Chairman of the Board, our President and Chief Executive Officer and our Chief Financial Officer. Although these changes were made pursuant to the Board’s succession planning efforts, there is no guarantee that the transition to new leadership will be executed successfully. Failure to successfully implement these successions may result in disruptions in the execution of our strategic plan. Failure to successfully implement future succession plans for other key employees may leave us vulnerable to retirements and turnover. 13 We may be harmed if we fail to protect our intellectual property adequately. We maintain a portfolio of trademarks and trade dress that we believe are fundamental to the success of the Public Storage® brand. While we actively seek to enforce and protect our rights, failure to adequately protect our rights could lead to loss of such trademark and trade dress protection. We also own and may seek to protect other intellectual property, such as propriety systems, processes, data, and other trade secrets that we have collected and developed in the course of operating our business and that we believe provides us with various competitive advantages. Our protections could be inadequate or we could lose rights to our other intellectual property and trade secrets. Competitor use of our trademarks and trade names could lead to likelihood of confusion, tarnishment of our brand, and loss of legal protection for our marks. We may be subject to labor disruptions related to unionization efforts. Our employees have been and may in the future be subject to unionization efforts. These activities could lead to labor disruptions which could adversely impact our ability to operate our business and could negatively impact our reputation. In addition, these activities could result in collective bargaining agreements, which could result in increased operating and legal costs. We may record losses as a result of the bankruptcy, insolvency, or other credit failure of the borrowers under our bridge lending financing program. In that case, our revenues and results of operations may be materially and adversely impacted. Although we conduct due diligence and aim to carefully evaluate the risks associated with this debt and other investments, we could incur losses from our lending decisions, which includes subjective and complex judgments and forecasts of economic conditions and how these economic predictions might impair the ability of our borrowers to operate their business and/or make all required payments. For example, volatility of the capital and credit markets, increased interest rates, lower demand for self-storage and general economic conditions may adversely affect the solvency, creditworthiness or operations of our borrowers. If our forecasts prove incorrect, or if any of our borrowers fail to perform as expected, we may incur losses from these bridge loans which could have a material adverse effect on our operating revenue and results of operations. Risks Related to Our Ownership, Organization and Structure Takeover attempts or changes in control could be thwarted, even if beneficial to shareholders. In certain circumstances, shareholders might desire a change in control or acquisition of us in order to realize a premium over the then-prevailing market price of our shares or for other reasons. However, the following could prevent, deter, or delay such a transaction: • Provisions of Maryland law may impose limitations that may make it more difficult for a third party to negotiate or effect a business combination transaction or control share acquisition with Public Storage. Currently, our Board has opted not to subject the Company to these provisions of Maryland law, but it could choose to do so in the future without shareholder approval. • To protect against the loss of our REIT status due to concentration of ownership levels, our declaration of trust generally limits the ability of a person, other than the Hughes family or “designated investment entities” (each as defined in our declaration of trust), to own, actually or constructively, more than 3% of our outstanding common shares or 9.9% of the outstanding shares of any class or series of preferred or equity shares. Our Board may grant, and has previously granted, a specific exemption. These limits could discourage, delay, or prevent a transaction involving a change in control of the Company not approved by our Board. • Similarly, current provisions of our declaration of trust and powers of our Board could have the same effect, including (1) limitations on removal of trustees, (2) restrictions on the acquisition of our shares of beneficial interest, (3) the power to issue additional common shares, preferred shares, or equity shares on terms approved by our Board without obtaining shareholder approval, (4) the advance notice provisions of our bylaws, and (5) our Board’s ability under Maryland law, without obtaining shareholder approval, to implement takeover defenses that we may not yet have and to take, or refrain from taking, other actions that could have the effect of delaying, deterring, or preventing a transaction or a change in control. 14 Holders of our preferred shares have dividend, liquidation, and other rights that are senior to the rights of the holders of our common shares. Holders of our preferred shares are entitled to cumulative dividends before any dividends may be declared or set aside on our common shares. Upon liquidation, holders of our preferred shares will receive a liquidation preference of $25,000 per share (or $ 25.00 per depositary share) plus any accrued and unpaid distributions before any payment is made to the common shareholders. These preferences may limit the amount received by our common shareholders either from ongoing distributions or upon liquidation. In addition, our preferred shareholders have the right to elect two additional directors to our Board whenever dividends are in arrears in an aggregate amount equivalent to six or more quarterly dividends, whether or not consecutive. Public Storage is a holding company with no direct operations, and it relies on funds received from PSA OP and PSOC to pay its obligations and make distributions to shareholders Public Storage is a holding company with no direct operations. All of Public Storage’s property ownership, development, and related business operations are conducted through PSOC (which is wholly-owned by PSA OP) and Public Storage has no material assets or liabilities other than its investment in PSA OP. As a result, Public Storage relies on distributions from PSA OP, which in turn relies on distributions from PSOC, to make common and preferred share dividend payments. Although Public Storage exercises control over PSA OP and PSOC, including the authority to cause PSA OP and PSOC to make distributions, in connection with our future acquisition activities or otherwise, PSA OP may issue additional units of limited partnership to third parties, and these limited partners may negotiate for certain rights. In addition, because Public Storage is a holding company, shareholder claims are structurally subordinated to all existing and future liabilities of PSA OP and PSOC and their subsidiaries. Therefore, in the event of a bankruptcy, insolvency, liquidation or reorganization of PSA OP or PSOC, or their subsidiaries, assets of PSA OP or PSOC or the applicable subsidiary will be available to satisfy any claims of our shareholders only after such liabilities and obligations have been satisfied in full. Holders of our preferred shares are subject to certain risks. Holders of our preferred shares have preference rights over our common shareholders with respect to liquidation and distributions, which give them some assurance of continued payment of their stated dividend rate, and receipt of their principal upon liquidation of the Company or redemption of their securities. However, holders of our preferred shares should consider the following risks: • The Company has in the past, and could in the future, issue or assume additional debt. Preferred shareholders would be subordinated to the interest and principal payments of such debt, which would increase the risk that there would not be sufficient funds to pay distributions or liquidation amounts to the preferred shareholders. • The Company has in the past, and could in the future, issue additional preferred shares that, while pari passu to the existing preferred shares, increases the risk that there would not be sufficient funds to pay distributions to the preferred shareholders. • While the Company has no plans to do so, if the Company were to lose its REIT status or no longer elect REIT status, it would no longer be required to distribute its taxable income to maintain REIT status. If, in such a circumstance, the Company ceased paying dividends, unpaid distributions to the preferred shareholders would continue to accumulate. The preferred shareholders would have the ability to elect two additional members to serve on our Board until the arrearage was cured. The preferred shareholders would not receive any compensation (such as interest) for the delay in the receipt of distributions, and it is possible that the arrearage could accumulate indefinitely. • Holders of our Preferred Shares have limited rights in the event the Company ceases to pay dividends to shareholders and have no rights with respect to a Company decision to discontinue listing the Preferred Shares on a national securities exchange or file reports with the SEC, including following a change of control transaction. 15 Risks Related to Government Regulations and Taxation We would incur adverse tax consequences if we failed to qualify as a REIT, and we would have to pay substantial U.S. federal corporate income taxes. REITs are subject to a range of complex organizational and operational requirements. A qualifying REIT does not generally incur U.S. federal corporate income tax on its “REIT taxable income” (generally, taxable income subject to specified adjustments, including a deduction for dividends paid and excluding net capital gain) that it distributes to its shareholders. Our REIT status is also dependent upon the REIT qualification of PS Business Parks, Inc. (“PSB”) through the end of its taxable year ended December 31, 2022, as a result of our substantial ownership interest in it prior to the closing of the PSB merger with an unaffiliated third party. We believe we have qualified as a REIT and we intend to continue to maintain our REIT status. However, there can be no assurance that we qualify or will continue to qualify as a REIT, because of the highly technical nature of the REIT rules, the ongoing importance of factual determinations, the possibility of unidentified issues in prior periods, or changes in our circumstances, as well as share ownership limits in our declaration of trust that may fail to ensure that our shareholder base is sufficiently diverse for us to qualify as a REIT. For any year we fail to qualify as a REIT, unless certain relief provisions apply (the granting of such relief could nonetheless result in significant excise or penalty taxes), we would not be allowed a deduction for dividends paid, we would be subject to U.S. federal corporate income tax on our taxable income, and generally we would not be allowed to elect REIT status until the fifth year after such a disqualification. In addition, for tax years beginning after December 31, 2022, we could also be subject to certain taxes enacted by the Inflation Reduction Act of 2022 that are applicable to non-REIT corporations, including the corporate alternative minimum tax and nondeductible one percent excise tax on certain stock repurchases. Any taxes, interest, and penalties incurred would reduce our cash available for distributions to shareholders and could negatively affect our stock price. However, for years in which we failed to qualify as a REIT, we would not be subject to REIT rules that require us to distribute substantially all of our taxable income to our shareholders. Dividends payable by REITs do not qualify for the preferential tax rates available for some dividends. Dividends payable by REITs may be taxed at higher rates than dividends of non-REIT corporations. The maximum U.S. federal income tax rate for qualified dividends paid by domestic non-REIT corporations to U.S. stockholders that are individuals, trusts, or estates is generally 20%. Dividends paid by REITs to such stockholders are generally not eligible for that rate but, such stockholders may deduct up to 20% of ordinary dividends (i.e., dividends not designated as capital gain dividends or qualified dividend income) received from a REIT for taxable years beginning before January 1, 2026. Although this deduction reduces the effective tax rate applicable to certain dividends paid by REITs, such tax rate may still be higher than the tax rate applicable to regular corporate qualified dividends. This may cause investors to view REIT investments as less attractive than investments in non-REIT corporations, which in turn may adversely affect the value of the stock of REITs, including our stock. We may pay some taxes, reducing cash available for shareholders. Even if we qualify as a REIT for U.S. federal corporate income tax purposes, we may be subject to some federal, foreign, state, and local taxes on our income and property. Certain consolidated corporate subsidiaries of the Company have elected to be treated as taxable REIT subsidiaries (“TRSs”) for U.S. federal corporate income tax purposes and are taxable as regular corporations and subject to certain limitations on intercompany transactions. If tax authorities determine that amounts paid by our TRSs to us are not reasonable compared to similar arrangements among unrelated parties, we could be subject to a 100% penalty tax on the excess payments, and ongoing intercompany arrangements could have to change, resulting in higher ongoing tax payments. To the extent the Company is required to pay federal, foreign, state, or local taxes, or federal penalty taxes due to existing laws or changes thereto, we will have less cash available for distribution to shareholders. In addition, certain local and state governments have imposed taxes on self-storage rent. While in most cases those taxes are paid by our customers, they increase the cost of self-storage rental to our customers and can negatively impact our revenues. Other local and state governments may impose self-storage rent taxes in the future. 16 If PSA OP were to fail to maintain its status as a partnership for U.S. federal income tax purposes, our financial results would be adversely impacted. We believe PSA OP qualifies as a partnership for U.S. federal income tax purposes. As a partnership, PSA OP is generally not subject to U.S. federal income tax on its income. Instead, each of the partners is allocated its share of PSA OP’s income. There is no assurance, however, that the IRS will not challenge the status of PSA OP as a partnership for U.S. federal income tax purposes. If the IRS were to successfully challenge the status of PSA OP as a partnership, it would be taxable as a corporation. In such event, this would reduce the amount of distributions that PSA OP could make. The treatment of PSA OP as a corporation would also cause us to fail to qualify as a REIT. This would substantially reduce our cash available to pay distributions and the return on a shareholder's investment. Changes in tax laws could negatively impact us. The United States Treasury Department and Congress frequently review federal income tax legislation, regulations and other guidance. We cannot predict whether, when, or to what extent new federal tax laws, regulations, interpretations or rulings will be adopted, but these changes might include, in particular, increases in the U.S. federal income tax rates that apply to us or our shareholders in certain circumstances, possibly with retroactive effect. We have exposure to increased property tax in California. Due to the impact of Proposition 13, which generally limits increases in assessed values to 2% per year, the assessed value and resulting property tax we pay is less than it would be if the properties were assessed at current estimated market values. From time to time, proposals have been made to reduce the beneficial impact of Proposition 13, most recently in the November 2020 ballot. While this ballot initiative failed, there can be no assurance that future initiatives or other legislative actions will not eliminate or reduce the benefit of Proposition 13 with respect to our properties. If the beneficial effect of Proposition 13 were ended for our properties, our property tax expense could increase substantially, adversely affecting our cash flow from operations and net income. We are subject to extensive laws and regulations and to frequent changes in such laws and regulations. We are subject to extensive laws and regulations, and to frequent changes in such laws and regulations, at the city, county, state, and federal level. These laws and regulations include (i) laws and regulations related to access to our self-storage facilities, including the Americans with Disabilities Act of 1990, (ii) laws and regulations related to taxes, including property taxes, income taxes, and REIT status compliance, (iii) labor and employment laws and regulations, (iv) consumer protection laws and regulations, including those related to lien sales, (v) state and local business licensing laws and regulations, (vi) zoning laws and regulations, (vii) privacy laws and regulations, including the California Privacy Rights Act and the California Consumer Privacy Act, and (viii) securities laws. Compliance with these laws and regulations, including changes thereto, have imposed significant costs and could in the future impose greater costs or require adverse changes to our business and operations. Failure to comply with applicable laws and regulations may subject us to increased litigation and regulatory actions and negatively affect our business and operations or reputation. Our tenant reinsurance business is subject to governmental regulation, which could reduce our profitability or limit our growth. We hold limited lines self-service storage insurance agent licenses from a number of individual state departments of insurance and are subject to state governmental regulation and supervision. Our continued ability to maintain these limited lines self-service storage insurance agent licenses in the jurisdictions in which we are licensed depends on our compliance with related rules and regulations. The regulatory authorities in each jurisdiction generally have broad discretion to grant, renew, and revoke licenses and approvals, to promulgate, interpret, and implement regulations, and to evaluate compliance with regulations through periodic examinations, audits, and investigations of the affairs of insurance agents. As a result of regulatory or private action in any jurisdiction, we may be temporarily or permanently suspended from continuing some or all of our reinsurance activities , or otherwise fined, penalized, or subject to an adverse judgment, which could reduce our net income. 17 In the event that we recognize a significant gain from cash settlement of a forward sale agreement, the U.S. federal income tax treatment of the cash that we receive in such instance is unclear and could impact our ability to meet the REIT qualification requirements. We maintain an “at the market” offering program under which we may enter into forward sale agreements from time to time to sell common shares and, subject to certain conditions, we have the right to elect physical, cash or net share settlement under these agreements at any time and from time to time, in part or in full. In the event that we elect to settle a forward sale agreement for cash and the settlement price is below the forward sale price, we would be entitled to receive a cash payment from the applicable forward purchaser(s). Under Section 1032 of the Code, generally, no gains and losses are recognized by a corporation in dealing in its own shares, including pursuant to a “securities futures contract,” as defined in the Code by reference to the Securities Exchange Act of 1934, as amended. Although we believe that any amount received by us in exchange for our common shares would qualify for the exemption under Section 1032 of the Code, because it is not entirely clear whether a forward sale agreement qualifies as a “securities futures contract,” the U.S. federal income tax treatment of any cash settlement payment we receive is uncertain. In the event that we recognize a significant gain from the cash settlement of a forward sale agreement, we might not be able to satisfy the gross income requirements applicable to REITs under the Code. If we were to fail to satisfy one or both of the gross income tests for any taxable year, we may nevertheless qualify as a REIT for such year if we were entitled to relief under certain provisions of the Code. If these relief provisions were inapplicable, we would not qualify to be taxed as a REIT. International trade disputes, including U.S. trade tariffs and retaliatory tariffs, could adversely impact our business. International trade disputes, including threatened or implemented tariffs imposed by the U.S. and threatened or implemented tariffs imposed by foreign countries in retaliation, could result in inflationary pressures that directly impact our costs, such as costs for steel, lumber and other materials applicable to our development and redevelopment projects. Trade disputes could also adversely impact global supply chains which could further increase costs for us or delay delivery of key inventories and supplies. Tariffs and trade restrictions can be announced with little or no advance notice, and we may not be able to effectively mitigate all adverse impacts from such measures. If we are not able to navigate these changes, it could have a material adverse effect on our business. ITEM 1B.      Unresolved Staff Comments None. ITEM 1C.      Cybersecurity Public Storage devotes significant resources to protecting and continuing to improve the security of its computer systems, software, networks, and other technology assets. Our security efforts are designed to preserve the confidentiality, integrity, and continued availability of information owned by, or in the care of, the Company and protect against, among other things, cybersecurity attacks by unauthorized parties attempting to obtain access to confidential information, destroy data, disrupt or degrade service, sabotage systems, or cause other damage. Management and Board Oversight Our risk management processes include a comprehensive enterprise risk management framework focused on (i) evaluating the risks facing the Company and aligning the Company’s efforts to mitigate those risks with its strategy and risk appetite; (ii) communicating and improving the Company’s understanding of its key risks and responsive actions; and (iii) providing the Board with a defined, rated risk inventory and framework against which the Board can direct its responsibilities to oversee the Company’s risk assessment and risk management efforts. Our cybersecurity program is a key component of our overall enterprise risk management framework. A dedicated team of technology professionals monitors and manages cybersecurity risks. They are led by our Chief Technology Officer (CTO), who has significant experience in senior leadership positions with responsibility for cybersecurity and IT risk management, and our Chief Information Security Officer (CISO) , who is a Certified Information Systems Security Professional (CISSP). Their teams are responsible for leading enterprise-wide cyber resilience strategy, policy, standards, architecture, and processes. Our CTO and CISO regularly engage with our Chief Administrative Officer. They also report monthly on cybersecurity matters to our entire executive management team. 18 In the event of an incident that jeopardizes the confidentiality, integrity, or availability of the information technology systems we use, we utilize a regularly updated information security incident response plan (IRP). The IRP is overseen by our executive Incident Response Committee (IRC), which consists of our Chief Financial and Investment Officer, Chief Administrative Officer, Chief Legal Officer, and CTO. The IRP guides our internal response to cybersecurity incidents. Pursuant to our IRP and its escalation protocols, designated personnel are responsible for assessing the severity of the incident and associated threat, containing the threat, remediating the threat, including recovery of data and access to systems, analyzing the reporting obligations associated with the incident, and performing post-incident analysis and program improvements. While the particular personnel assigned to an incident response team will depend on the particular facts and circumstances, the response team is generally led by the IRC with support from internal personnel and external counsel or other experts. Our Board considers cybersecurity risk one of the most significant risks to our business. The Board has delegated to the Audit Committee oversight of cybersecurity, data privacy, and other information technology risks affecting the Company. Our CTO and CISO typically provide quarterly reports to the Audit Committee, which also provides quarterly reports on its activities to the Board. Annually, the Board receives a comprehensive update regarding the Company’s cybersecurity efforts, which may include a cybersecurity tabletop exercise, presentation by third party cybersecurity experts, or similar events. Several members of our Board and Audit Committee have cybersecurity, data privacy, or related experience from their principal occupation or other professional experience. Processes for Assessing, Identifying and Managing Material Risks from Cybersecurity Threats Our cybersecurity program focuses on (i) preventing and preparing for cybersecurity incidents, (ii) detecting and analyzing cybersecurity incidents, and (iii) containing, eradicating, recovering from, and reporting cybersecurity events. Prevention and Preparation We identify and address information security risks by employing a defense-in-depth methodology, consisting of both proactive and reactive elements, which provides multiple, redundant defensive measures and prescribes actions to take in case a security control fails or a vulnerability is exploited. We leverage internal resources, along with strategic external partnerships, to mitigate cybersecurity threats to the Company. We have partnerships for security operations center (SOC) services, penetration testing, incident response, and various third-party assessments. We deploy both commercially available solutions and proprietary systems to actively manage threats to our information technology environment. We assess our cybersecurity program against various frameworks. Our information security program is certified for compliance with the Payment Card Industry Data Security Standard for the safe handling and protection of credit card data. Annually, we are assessed, either internally or by an independent third party, against the National Institute of Standards and Technology (NIST) 800-53 Moderate Baseline. We also utilize reports prepared by our external partners to assess our cyber proficiency on a standalone basis and comparatively against peers and other companies, and we regularly engage external resources regarding emerging threats. We have policies and procedures to oversee and identify the cybersecurity risks associated with our use of third-party service providers, including contractual mechanisms, as well as the regular review of SOC reports, relevant cyber attestations, and other independent cyber ratings. We employ an information security and training program for our employees, including annual mandatory computer-based training, regular internal communications, and ongoing end-user testing to measure the effectiveness of our information security program. As part of this commitment, we require our employees to complete a Cybersecurity Awareness eCourse and acknowledge our Information Security policy each year. In addition, we have an established schedule and process for regular phishing awareness campaigns that are designed to imitate real-world contemporary threats and provide immediate feedback (and, if necessary, additional training or remedial action) to employees. As discussed above, we maintain an IRP that guides our response to a cybersecurity incident. Annually, we test the IRP’s response procedures, including thorough disaster response and business continuity plan exercises. These exercises are intended to challenge and validate our information security response and resources through simulated cybersecurity incidents, including engagement of outside cybersecurity legal counsel, other third-party partners, key internal personnel, executive management, and our Board. 19 Detection and Analysis Cybersecurity incidents may be detected through a variety of means, which may include, but are not limited to, automated event-detection notifications, employee notifications, notification from external parties (e.g., our third-party information technology provider), and proactive threat hunting in conjunction with our external partners. Once a potential cybersecurity incident is identified, including a third-party cybersecurity event, the incident response team designated pursuant to the IRP follows the procedures set forth in the plan to investigate the potential incident, including determining the nature of the event. Containment, Eradication, Recovery, and Reporting Our IRP sets forth the procedures we follow in responding to a cybersecurity incidents. Once a cybersecurity incident is contained, our focus shifts to remediation and recovery. These activities depend on the nature of the cybersecurity incident and may include rebuilding systems and/or hosts, replacing compromised files with clean versions and validation of files or data that may have been affected. We also maintain cybersecurity insurance providing coverage for certain costs related to security failures and specified cybersecurity-related incidents that interrupt our network or networks of our vendors, in all cases up to specified limits and subject to certain exclusions. Our IRP provides clear communication protocols, including with respect to members of executive management, internal and external counsel, the Audit Committee and our Board. These protocols include a framework for assessing our SEC and other regulatory reporting obligations related to a cybersecurity incident. Following the conclusion of an incident, the incident response team will generally assess the effectiveness of the cybersecurity program and IRP and make adjustments as appropriate. Cybersecurity Risks As of December 31, 2025, we have not had any known instances of material cybersecurity incidents, including known third-party provider incidents, during any of the prior three fiscal years. However, there can be no assurance that our security efforts and measures, and those of our third-party providers, will be effective or that attempted security incidents or disruptions would not be successful or damaging. See “Item 1A–Risk Factors–If our confidential information is compromised or corrupted, including as a result of a cybersecurity incident, our reputation and business relationships could be damaged, which could adversely affect our financial condition and operating results.” 20 ITEM 2 .     Properties At December 31, 2025, we had controlling ownership interests in 3,171 self-storage facilities located in 40 states within the U.S.: December 31, 2025 Number of Storage Facilities Net Rentable Square Feet (in thousands) Texas 477  40,549 California 450  32,829 Florida 392  27,501 Georgia 136  9,179 Illinois 139  9,041 North Carolina 114  8,408 Maryland 107  8,058 Virginia 122  7,959 Washington 107  7,726 Colorado 93  6,777 South Carolina 88  5,606 Minnesota 68  5,535 New York 74  5,328 New Jersey 72  4,905 Ohio 68  4,643 Michigan 62  4,443 Arizona 60  4,329 Tennessee 58  3,726 Oklahoma 51  3,721 Indiana 54  3,572 Missouri 44  2,910 Pennsylvania 38  2,795 Oregon 46  2,659 Nevada 34  2,548 Massachusetts 31  2,129 Kansas 24  1,533 Other states (14 states) 162  11,030 Total (a) 3,171  229,439 (a) See Schedule III: Real Estate and Accumulated Depreciation in our consolidated financial statements included in this Annual Report on Form 10-K, for a summary of land, building, accumulated depreciation, square footage, and number of properties by market. At December 31, 2025, two of our facilities with a net book value of $10.8 million were encumbered by an aggregate of $1.6 million in mortgage notes payable. 21 The configuration of self-storage facilities has evolved over time. The oldest facilities are comprised generally of multiple single-story buildings, and have on average approximately 500 primarily “drive up” spaces per facility, and a small rental office. Recently constructed facilities have higher density footprints with large, multi-story buildings with climate control and typically 1,000 or more self-storage spaces, and a prominent and large rental office designed to appeal to customers as an attractive and retail-focused “store.” Our self-storage portfolio includes facilities with characteristics of the oldest facilities, characteristics of the most recently constructed facilities, and those with characteristics of both older and recently constructed facilities. Most spaces have between 25 and 400 square feet and an interior height of approximately eight to 12 feet. ITEM 3 .     Legal Proceedings For a description of the Company’s legal proceedings, see “Note 16. Commitments and Contingencies” to our consolidated financial statements included in this Annual Report on Form 10-K. ITEM 4 .     Mine Safety Disclosures Not applicable. 22 PART II ITEM 5.      Market for Registrant’s Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities Our common shares of beneficial interest (NYSE: PSA) have been listed on the NYSE since October 19, 1984. As of February 5, 2026, there were approximately 8,644 holders of record of our common shares. In May 2008, our Board authorized a share repurchase program of up to 35,000,000 of our common shares. Our common share repurchase program does not have an expiration date, and there are 10,551,219 common shares that may yet be repurchased under our repurchase program as of December 31, 2025. Under the repurchase program, management may repurchase our common shares on the open market or in privately negotiated transactions. During the three months ended December 31, 2025, we did not repurchase any of our common shares. From the inception of the repurchase program through February 12, 2026, we have repurchased a total of 24,448,781 common shares at an aggregate cost of approximately $879.1 million. We have no current plans to repurchase shares. The timing, manner, price and amount of any future common share repurchases will be dependent upon a number of factors, including our available capital, investment alternatives, economic conditions, applicable legal requirements, and the trading price of our common shares. Refer to Item 12. “Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters” for information about our equity compensation plans. ITEM 6.    [Reserved] ITEM 7.     Management’s Discussion and Analysis of Financial Condition and Results of Operations Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) should be read in conjunction with our consolidated financial statements and notes thereto. 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. We believe the following are our critical accounting estimates, because they are reasonably likely to have a material impact on the portrayal of our financial condition and results, and they require us to make judgments and estimates about matters that involve a significant level of uncertainty. Impairment of Long-Lived Assets: The analysis of impairment of our long-lived assets, including our real estate facilities, involves identification of indicators of impairment, including unfavorable operational results and significant cost overruns on construction, projections of future operating cash flows, and estimates of fair values, all of which require significant judgment and subjectivity. In particular, these estimates are sensitive to significant assumptions, such as the projections of future rental rates, stabilized occupancy level, future profit margin, discount rates, and capitalization rates, all of which could be affected by our expectations about future market or economic conditions. Others could come to materially different conclusions. Allocating Purchase Price for Acquired Real Estate Facilities : We estimate the fair values of the assets and liabilities of acquired real estate facilities, which consist principally of land, buildings and acquired customers in place, for purposes of allocating the aggregate purchase price of acquired real estate facilities. We estimate the fair value of land based upon price per square foot derived from observable transactions involving comparable land in similar locations as adjusted for location quality, parcel size, and date of sale associated with the acquired facilities. The fair value estimate of land is sensitive to the adjustments made to the land market transactions used in the estimate, particularly when there is a lack of recent comparable land market data. We estimate the fair value of buildings primarily using the income approach by estimating the fair value of hypothetical vacant acquired facilities and adjusting for the estimated fair value of land. The fair value estimate of buildings is sensitive to assumptions, such as lease-up period, future stabilized operating cash flows, 23 capitalization rate and discount rate. We estimate the fair value of acquired customers in place using the income approach by estimating the foregone rent over the presumed period of time to absorb the occupied spaces as if they were vacant at the time of acquisition. The fair value estimate of the acquired customers in place is sensitive to the assumptions used in the income approach, such as market rent, lease-up period and discount rate. Others could come to materially different conclusions as to the estimated fair values of land, buildings and acquired customers in place, which would result in different depreciation and amortization expense, gains and losses on sale of real estate assets, as well as the level of land and buildings on our consolidated balance sheet. 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 Newly Developed and Expanded Facilities (both as defined below). During 2025, revenues generated by our Same Store Facilities remained relatively unchanged, as compared to 2024, while Same Store cost of operations increased by 1.8% ($16.6 million). Softness in demand for our storage space has led to lower move-in rental rates for new tenants and lower average occupancy in 2025 as compared to 2024. Existing customers behavior was strong in 2025 with fewer move-outs and lower delinquencies allowing for rental rate increases to tenants over their tenancy. 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 2023, we acquired a total of 273 facilities with 19.9 million net rentable square feet for $3.9 billion. Within our Non-Same Store portfolio (as defined below) as of December 31, 2025, our Newly Developed and Expanded Facilities include a total of 111 self-storage facilities with 13.3 million net rentable square feet. For development and expansions completed by December 31, 2025, we incurred a total cost of $1.7 billion. During 2025, combined net operating income generated by our Acquired Facilities and Newly Developed and Expanded Facilities increased 25.6% ($59.5 million), as compared to 2024. We have embarked on a solar program under which we plan to install solar panels on over 1,600 of our self-storage facilities. We have completed the installations on 1,191 facilities through December 31, 2025. We spent approximately $71 million on the program in 2025, and expect to spend approximately $60 million in 2026 on this effort. During 2025, PSOC completed public offerings of $875 million aggregate principal amount of senior notes in various tranches and maturities and €425 million of senior notes due 2034. PSOC also repaid at maturity $400 million aggregate principal amount of floating rate senior notes and €242 million aggregate principal amount of senior notes. We plan to use the remaining proceeds for general corporate purposes, including to make investments in self-storage facilities. 24 Results of Operations Operating Results for 2025 and 2024 In 2025, net income allocable to our common shareholders was $1.6 billion or $9.01 per diluted common share, compared to $1.9 billion or $10.64 per diluted common share in 2024, representing a decrease of $287.1 million or $1.63 per diluted common share. The decrease was due primarily to (i) a $317.8 million increase in foreign currency exchange losses, (ii) a $22.1 million increase in depreciation and amortization expense (iii) a $17.1 million increase in interest expense, partially offset by (iv) a $53.1 million increase in self-storage net operating income and (v) a $23.4 million increase in ancillary net operating income. The $53.1 million increase in self-storage net operating income in 2025 as compared to 2024 was a result of a $68.4 million increase attributable to our Non-Same Store Facilities, partially offset by a $15.3 million decrease attributable to our Same Store Facilities. Revenues for the Same Store Facilities remained relatively unchanged in 2025 as compared to 2024, due primarily to higher realized annual rent per occupied square foot partially offset by a decline in average occupancy. Cost of operations for the Same Store Facilities increased by 1.8% or $16.6 million in 2025 as compared to 2024, due primarily to increased property tax expense and indirect cost of operation partially offset by decreased marketing expenses and on-site property manager payroll expense. The increase in net operating income of $68.4 million for the Non-Same Store Facilities was due primarily to the impact of facilities acquired in 2025 and 2024. Operating Results for 2024 and 2023 In 2024, net income allocable to our common shareholders was $1.9 billion or $10.64 per diluted common share, compared to $1.9 billion or $11.06 per diluted common share in 2023, representing a decrease of $76.1 million or $0.42 per diluted common share. The decrease was due primarily to (i) an $159.7 million increase in depreciation and amortization expense, (ii) an $86.3 million increase in interest expense, (iii) a $26.0 million increase in general and administrative expense, (iv) an $18.4 million decrease in interest and other income, partially offset by (v) an $153.4 million increase in foreign currency exchange gains primarily associated with our Euro denominated notes payable and (vi) a $61.6 million increase in self-storage net operating income. The $61.6 million increase in self-storage net operating income in 2024 as compared to 2023 was a result of a $103.4 million increase attributable to our Non-Same Store Facilities, partially offset by a $41.8 million decrease attributable to our Same Store Facilities. Revenues for the Same Store Facilities decreased 0.6% or $22.7 million in 2024 as compared to 2023, due primarily to a decline in occupancy. Cost of operations for the Same Store Facilities increased by 2.1% or $19.1 million in 2024 as compared to 2023, due primarily to increased property tax expense, marketing expense, and repairs and maintenance expense, partially offset by decreased indirect cost of operations, utility expenses and on-site property manager payroll expense. The increase in net operating income of $103.4 million for the Non-Same Store Facilities was due primarily to the impact of facilities acquired in 2024 and 2023. 25 Funds from Operations and Core Funds from Operations Funds from Operations (“FFO”) and FFO per diluted common share (“FFO per share”) are non-GAAP measures defined by Nareit. We believe that FFO and FFO per share are useful to REIT investors and analysts in measuring our performance because Nareit’s definition of FFO excludes items included in net income that do not relate to or are not indicative of our operating and financial performance. FFO represents net income before real estate-related depreciation and amortization, which is excluded because it is based upon historical costs and assumes that building values diminish ratably over time, while we believe that real estate values fluctuate due to market conditions. FFO also excludes gains or losses on sale of real estate assets and real estate impairment charges, which are also based upon historical costs and are impacted by historical depreciation. FFO and FFO per share are not a substitute for net income or earnings per share. FFO is not a substitute for net cash flow in evaluating our liquidity or ability to pay dividends, because it excludes investing and financing activities presented on our consolidated statements of cash flows. In addition, other REITs may compute these measures differently, so comparisons among REITs may not be helpful. For the year ended December 31, 2025, FFO was $15.81 per diluted common share as compared to $17.19 and $16.60 per diluted common share for the years ended December 31, 2024 and 2023, respectively, representing a decrease in 2025 of 8.0%, or $1.38 per diluted common share, as compared to 2024. We also present “Core FFO” and “Core FFO per share” non-GAAP measures that represent FFO and FFO per share excluding the impact of (i) foreign currency exchange gains and losses, (ii) charges related to the redemption of preferred securities, and (iii) certain other non-cash and/or nonrecurring income or expense items primarily representing, with respect to the periods presented below, the impact of corporate transformation costs, loss contingencies, due diligence costs incurred in pursuit of strategic transactions, realized or unrealized gain or loss on private equity investments, income tax benefits from the sale of solar tax credits, a cash and stock hiring bonus for a new senior executive 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. 26 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: Year Ended December 31, Year Ended December 31, 2025 2024 Percentage Change 2024 2023 Percentage Change (Amounts in thousands, except per share data) Reconciliation of Net Income to FFO and Core FFO: Net income allocable to common shareholders $ 1,585,585  $ 1,872,685  (15.3) % $ 1,872,685  $ 1,948,741  (3.9) % Eliminate items excluded from FFO: Real estate-related depreciation and amortization 1,140,377  1,117,752  1,117,752  962,703 Real estate-related depreciation from unconsolidated real estate investment 59,470  44,181  44,181  36,769 Real estate-related depreciation allocated to noncontrolling interests, restricted share unitholders and unvested LTIP unitholders (8,216) (7,167) (7,167) (6,635) Impairment write-down of real estate investments 4,348  —  —  — Gains on sale of real estate investments, including our equity share from investment (1,113) (1,537) (1,537) (17,290) FFO allocable to common shares $ 2,780,451  $ 3,025,914  (8.1) % $ 3,025,914  $ 2,924,288  3.5  % Eliminate items excluded from Core FFO: Adjustments to G&A Expense: Contingency reserve 290  3,300  3,300  — Corporate transformation costs 4,875  —  —  — Transaction costs 3,146  —  —  — Hiring bonus for a new senior executive —  3,507  3,507  — Other Non-Core Adjustments: Foreign currency exchange (gain) loss 215,583  (102,244) (102,244) 51,197 Unrealized (gain) loss on private equity investments (3,859) (4,355) (4,355) (2,817) Income tax provision (benefit) (15,847) —  —  — Other items 850  8,946  8,946  3,264 Core FFO allocable to common shares $ 2,985,489  $ 2,935,068  1.7  % $ 2,935,068  $ 2,975,932  (1.4) % Reconciliation of Diluted Earnings per Share to FFO per Share and Core FFO per Share: Diluted earnings per share $ 9.01  $ 10.64  (15.3) % $ 10.64  $ 11.06  (3.8) % Eliminate amounts per share excluded from FFO: Real estate-related depreciation and amortization 6.78  6.56  6.56  5.64 Impairment write-down of real estate investments 0.03  —  —  — Gains on sale of real estate investments, including our equity share from investment (0.01) (0.01) (0.01) (0.10) FFO per share $ 15.81  $ 17.19  (8.0) % $ 17.19  $ 16.60  3.6  % Eliminate amounts per share excluded from Core FFO: Adjustments to G&A Expense: Contingency reserve —  0.02  0.02  — Corporate transformation costs 0.03  —  —  — Transaction costs 0.02  —  —  — Hiring bonus for a new senior executive —  0.02  0.02  — Other Non-Core Adjustments: Foreign currency exchange (gain) loss 1.23  (0.58) (0.58) 0.29 Unrealized (gain) loss on private equity investments (0.02) (0.02) (0.02) (0.02) Income tax provision (benefit) (0.09) —  —  — Other items (0.01) 0.04  0.04  0.02 Core FFO per share $ 16.97  $ 16.67  1.8  % $ 16.67  $ 16.89  (1.3) % Diluted weighted average common shares 175,902  176,038  176,038  176,143 27 Analysis of Net Income — Self-Storage Operations Our self-storage operations are analyzed in four groups: (i) 2,565 facilities that we have owned and operated on a stabilized basis since January 1, 2023 (the “Same Store Facilities”), (ii) 273 facilities we acquired since January 1, 2023 (the “Acquired Facilities”), (iii) 111 facilities that have been newly developed or expanded, or that had commenced expansion by December 31, 2025 (the “Newly Developed and Expanded Facilities”), and (iv) 222 other facilities, which are otherwise not stabilized with respect to occupancies or rental rates since January 1, 2023 (the “Other Non-Same Store Facilities”). The Acquired Facilities, Newly Developed and Expanded Facilities, and Other Non-Same Store Facilities are collectively referred to as the “Non-Same Store Facilities”. See Note 15 to our December 31, 2025 consolidated financial statements “Segment Information,” for a reconciliation of the amounts in the tables below to our total net income. 28 Self-Storage Operations Summary Year Ended December 31, Year Ended December 31, 2025 2024 Percentage Change 2024 2023 Percentage Change (Dollar amounts and square footage in thousands) Revenues (b): Same Store Facilities $ 3,764,833  $ 3,763,553  —  % $ 3,763,553  $ 3,786,251  (0.6) % Acquired Facilities 246,669  185,924  32.7  % 185,924  55,487  235.1  % Newly Developed and Expanded Facilities 183,022  160,615  14.0  % 160,615  143,989  11.5  % Other Non-Same Store Facilities 294,889  285,901  3.1  % 285,901  273,886  4.4  % Total revenues 4,489,413  4,395,993  2.1  % 4,395,993  4,259,613  3.2  % Cost of operations (b): Same Store Facilities 935,918  919,334  1.8  % 919,334  900,190  2.1  % Acquired Facilities 79,167  61,068  29.6  % 61,068  19,922  206.5  % Newly Developed and Expanded Facilities 58,383  52,810  10.6  % 52,810  43,372  21.8  % Other Non-Same Store Facilities 103,570  103,508  0.1  % 103,508  98,466  5.1  % Total cost of operations 1,177,038  1,136,720  3.5  % 1,136,720  1,061,950  7.0  % Net operating income (a): Same Store Facilities 2,828,915  2,844,219  (0.5) % 2,844,219  2,886,061  (1.4) % Acquired Facilities 167,502  124,856  34.2  % 124,856  35,565  251.1  % Newly Developed and Expanded Facilities 124,639  107,805  15.6  % 107,805  100,617  7.1  % Other Non-Same Store Facilities 191,319  182,393  4.9  % 182,393  175,420  4.0  % Total net operating income 3,312,375  3,259,273  1.6  % 3,259,273  3,197,663  1.9  % Depreciation and amortization expense: Same Store Facilities 705,278  711,978  (0.9) % 711,978  690,644  3.1  % Acquired Facilities 220,053  206,319  6.7  % 206,319  72,848  183.2  % Newly Developed and Expanded Facilities 69,482  53,719  29.3  % 53,719  40,458  32.8  % Other Non-Same Store Facilities 157,027  157,750  (0.5) % 157,750  166,106  (5.0) % Total depreciation and amortization 1,151,840  1,129,766  2.0  % 1,129,766  970,056  16.5  % Net income (loss): Same Store Facilities 2,123,637  2,132,241  (0.4) % 2,132,241  2,195,417  (2.9) % Acquired Facilities (52,551) (81,463) (35.5) % (81,463) (37,283) 118.5  % Newly Developed and Expanded Facilities 55,157  54,086  2.0  % 54,086  60,159  (10.1) % Other Non-Same Store Facilities 34,292  24,643  39.2  % 24,643  9,314  164.6  % Total net income $ 2,160,535  $ 2,129,507  1.5  % $ 2,129,507  $ 2,227,607  (4.4) % Number of facilities at period end: Same Store Facilities 2,565  2,565  —  % 2,565  2,565  —  % Acquired Facilities 273  186  46.8  % 186  164  13.4  % Newly Developed and Expanded Facilities 111  99  12.1  % 99  92  7.6  % Other Non-Same Store Facilities 222  223  (0.4) % 223  223  —  % Total number of facilities at the period end 3,171 3,073 3.2  % 3,073 3,044 1.0  % Net rentable square footage at period end: Same Store Facilities 175,349  175,349  —  % 175,349  175,349  —  % Acquired Facilities 19,893  13,733  44.9  % 13,733  12,067  13.8  % Newly Developed and Expanded Facilities 13,313  11,155  19.3  % 11,155  9,471  17.8  % Other Non-Same Store Facilities 20,884  21,043  (0.8) % 21,043  21,184  (0.7) % Total net rentable square footage at period end 229,439  221,280  3.7  % 221,280  218,071  1.5  % 29 (a) Net operating income or “NOI” is a non-GAAP financial measure that excludes the impact of depreciation and amortization expense, which is based upon historical real estate costs and assumes that building values diminish ratably over time, while we believe that real estate values fluctuate due to market conditions. We utilize NOI in determining current property values, evaluating property performance, and evaluating property operating trends. We believe that investors and analysts utilize NOI in a similar manner. NOI is not a substitute for net income, operating cash flow, or other related financial measures, in evaluating our operating results. See Note 15 to our December 31, 2025 consolidated financial statements for a reconciliation of NOI to our total net income for all periods presented. (b) Revenues and cost of operations do not include tenant reinsurance and merchandise sale revenues and expenses generated at the facilities. See “Ancillary Operations” below for more information. Same Store Facilities The Same Store Facilities consist of facilities we have owned and operated on a stabilized level of occupancy, revenues, and cost of operations since January 1, 2023. Our Same Store Facilities increased from 2,507 facilities at December 31, 2024 to 2,565 at December 31, 2025. The composition of our Same Store Facilities allows us more effectively to evaluate the ongoing performance of our self-storage portfolio in 2023, 2024, and 2025 and exclude the impact of fill-up of unstabilized facilities, which can significantly affect operating trends. We believe investors and analysts use Same Store Facilities information in a similar manner. However, because other REITs may not compute Same Store Facilities in the same manner as we do, may not use the same terminology or may not present such a measure, Same Store Facilities may not be comparable among REITs. The following table summarizes the historical operating results (for all periods presented) of these 2,565 facilities (175.3 million net rentable square feet) that represent approximately 76% of the aggregate net rentable square feet of our U.S. consolidated self-storage portfolio at December 31, 2025. It includes various measures and detail that we do not include in the analysis of the developed, acquired, and other Non-Same Store Facilities, due to the relative magnitude and importance of the Same Store Facilities relative to our other self-storage facilities. 30 Selected Operating Data for the Same Store Facilities (2,565 facilities) Year Ended December 31, Year Ended December 31, 2025 2024 Change (e) 2024 2023 Change (e) (Dollar amounts in thousands, except for per square foot data) Revenues (a): Rental income $ 3,636,192  $ 3,633,672  0.1% $ 3,633,672  $ 3,657,303  (0.6)% Late charges and administrative fees 128,641  129,881  (1.0)% 129,881  128,948  0.7% Total revenues 3,764,833  3,763,553  —% 3,763,553  3,786,251  (0.6)% Direct cost of operations (a): Property taxes 378,266  359,212  5.3% 359,212  342,821  4.8% On-site property manager payroll 129,254  136,124  (5.0)% 136,124  140,757  (3.3)% Repairs and maintenance 78,046  77,000  1.4% 77,000  70,804  8.8% Utilities 49,633  49,144  1.0% 49,144  51,307  (4.2)% Marketing 83,285  87,088  (4.4)% 87,088  77,004  13.1% Other direct property costs 101,889  101,725  0.2% 101,725  100,942  0.8% Total direct cost of operations 820,373  810,293  1.2% 810,293  783,635  3.4% Direct net operating income (b) 2,944,460  $ 2,953,260  (0.3)% $ 2,953,260  $ 3,002,616  (1.6)% Indirect cost of operations (a) (115,545) (109,041) 6.0% (109,041) (116,555) (6.4)% Net operating income 2,828,915  2,844,219  (0.5)% 2,844,219  2,886,061  (1.4)% Depreciation and amortization expense (705,278) (711,978) (0.9)% (711,978) (690,644) 3.1% Net income 2,123,637  $ 2,132,241  (0.4)% $ 2,132,241  $ 2,195,417  (2.9)% Gross margin (before indirect costs, depreciation and amortization expense) 78.2% 78.5% (0.3)% 78.5% 79.3% (0.8)% Gross margin (before depreciation and amortization expense) 75.1% 75.6% (0.5)% 75.6% 76.2% (0.6)% Weighted average for the period: Square foot occupancy 92.0% 92.4% (0.4)% 92.4% 92.9% (0.5)% Realized annual rental income per (c): Occupied square foot $ 22.54 $ 22.43 0.5% $ 22.43 $ 22.44 —% Available square foot $ 20.74 $ 20.72 0.1% $ 20.72 $ 20.85 (0.6)% At December 31: Square foot occupancy 91.0% 90.5% 0.5% 90.5% 91.2% (0.7)% Annual contract rent per occupied square foot (d) $ 22.55 $ 22.72 (0.7)% $ 22.72 $ 22.61 0.5% 31 (a) Revenues and cost of operations do not include tenant reinsurance and merchandise sale revenues and expenses generated at the facilities. See “Ancillary Operations” below for more information. (b) Direct net operating income (“Direct NOI”), a subtotal within NOI, is a non-GAAP financial measure that excludes the impact of supervisory payroll, centralized management costs, and share-based compensation in addition to depreciation and amortization expense. We utilize direct net operating income in evaluating property performance and in evaluating property operating trends as compared to our competitors. (c) Realized annual rent per occupied square foot is computed by dividing rental income, before late charges and administrative fees, by the weighted average occupied square feet for the period. Realized annual rent per available square foot (“REVPAF”) is computed by dividing rental income, before late charges and administrative fees, by the total available net rentable square feet for the period. These measures exclude late charges and administrative fees in order to provide a better measure of our ongoing level of revenue. Late charges are dependent upon the level of delinquency, and administrative fees are dependent upon the level of move-ins. In addition, the rates charged for late charges and administrative fees can vary independently from rental rates. These measures take into consideration promotional discounts, which reduce rental income. (d) Annual contract rent represents the agreed upon monthly rate that is paid by our tenants in place at the time of measurement. Contract rates are initially set in the lease agreement upon move-in, and we adjust them from time to time with notice. Contract rent excludes other fees that are charged on a per-item basis, such as late charges and administrative fees, does not reflect the impact of promotional discounts, and does not reflect the impact of rents that are written off as uncollectible. (e) Represents the absolute nominal change with respect to gross margin and square foot occupancy, and the percentage change with respect to all other items. Analysis of Same Store Revenue We believe a balanced occupancy and rate strategy maximizes our revenues over time. We regularly adjust rental rates and promotional discounts offered (generally, “$1.00 rent for the first month”), as well as our marketing efforts to maximize revenue from new tenants to replace tenants that vacate. We typically increase rental rates to our long-term tenants (generally, those who have been with us for at least five months) every six to twelve months. As a result, the number of long-term tenants we have in our facilities is an important factor in our revenue growth. The level of rate increases to long-term tenants is based upon evaluating the additional revenue from the increase against the negative impact of incremental move-outs, by considering tenants’ in-place rent and prevailing market rents, among other factors. Comparison of the Year Ended December 31, 2025 to the Year Ended December 31, 2024 Revenues generated by our Same Store Facilities remained relatively unchanged compared to 2024, due primarily to a 0.5% increase in realized annual rent per occupied square foot partially offset by a 0.4% decrease in average occupancy. The increase in realized annual rent per occupied square foot in 2025 as compared to 2024 was due to cumulative rate increases to existing long-term tenants over the past twelve months partially offset by a decrease in average rates per square foot charged to new tenants moving in over the same period. The weighted average square foot occupancy for our Same Store Facilities was 92.0% for 2025, representing a decrease of 0.4%, as compared to 2024, due to softening of demand. In response, we lowered move-in rental rates to stimulate move-in activity at our facilities in 2025 as compared to 2024. Move-out activities from our tenants were lower in 2025 as compared to 2024. More than half of our tenants have rented their space for longer than a year at December 31, 2025, which supported our revenue growth from existing long-term tenants. Comparison of the Year Ended December 31, 2024 to the Year Ended December 31, 2023 Revenues generated by our Same Store Facilities decreased 0.6% in 2024 as compared to 2023, due primarily to a 0.5% decrease in average occupancy. 32 The weighted average square foot occupancy for our Same Store Facilities was 92.4% for 2024, representing a decrease of 0.5%, as compared to 2023, due to softening customer demand. In response, we lowered move-in rental rates and increased advertising spending to stimulate move-in activity at our facilities in 2024 as compared to 2023. Move-out activities from our tenants were lower in 2024 as compared to 2023. More than half of our tenants have rented their space for longer than a year at December 31, 2024, which supported our revenue growth from existing long-term tenants. Selected Key Move-in and Move-Out Statistical Data The following table sets forth average annual contract rent per square foot and total square footage for tenants moving in and moving out during the years ended December 31, 2025, 2024, and 2023. Contract rents gained from move-ins and contracts rents lost from move-outs included in the table assume move-in and move-out activities occur at the beginning of each period presented. The table also includes promotional discounts, which vary based upon the move-in contractual rates, move-in volume, and percentage of tenants moving in who receive the discount. Year Ended December 31, Year Ended December 31, 2025 2024 Change 2024 2023   Change (Amounts in thousands, except for per square foot amounts) Tenants moving in during the period: Average annual contract rent per square foot $ 12.80  $ 13.69  (6.5)% $ 13.69  $ 15.50  (11.7)% Square footage 124,363  123,937  0.3% 123,937  125,160  (1.0)% Contract rents gained from move-ins $ 1,591,846  $ 1,696,698  (6.2)% $ 1,696,698  $ 1,939,980  (12.5)% Promotional discounts given $ 56,868  $ 63,904  (11.0)% $ 63,904  $ 66,031  (3.2)% Tenants moving out during the period: Average annual contract rent per square foot $ 20.30  $ 20.59  (1.4)% $ 20.59  $ 21.06  (2.2)% Square footage 123,569  125,101  (1.2)% 125,101  126,491  (1.1)% Contract rents lost from move-outs $ 2,508,451  $ 2,575,830  (2.6)% $ 2,575,830  $ 2,663,900  (3.3)% We expect industry-wide demand from new tenants in 2026 to be similar to 2025, across a diverse set of markets, subject to potential adverse effects from evolving political and macroeconomic uncertainty, including changes in trade policy and new tariffs, pricing restrictions and microeconomic uncertainty. As a result, we expect Same Store Facilities revenues in 2026 to be modestly below those earned in 2025. Late Charges and Administrative Fees Late charges and administrative fees decreased 1.0% in 2025 and increased 0.7% in 2024, respectively, in each case as compared to the previous year. The decrease in 2025 was due primarily to lower late charges on delinquent accounts due to lower customer delinquency rates. The increase in 2024 was due primarily to higher late charges and lien fees collected on delinquent accounts. Analysis of Same Store Cost of Operations Cost of operations (excluding depreciation and amortization) increased 1.8% and 2.1% in 2025 and 2024, respectively, in each case as compared to the previous year. The increase in 2025 was due primarily to increased property tax expense and indirect cost of operations, partially offset by decreased on-site property manager payroll expense and marketing expense. The increase in 2024 was due primarily to increased property tax expense, repairs and maintenance expense and marketing expense partially offset by decreased on-site property manager payroll expense, utilities expense and indirect cost of operations. Property tax expense increased 5.3% and 4.8% in 2025 and 2024, respectively, in each case as compared to the previous year, as a result of higher assessed values. We expect property tax expense to grow in 2026 due primarily to higher assessed values. 33 On-site property manager payroll expense decreased 5.0% and 3.3% in 2025 and 2024, respectively, in each case as compared to the previous year. The decreases in each year were primarily due to reduction in labor hours driven by the continued implementation of dynamic staffing models based on customer activity levels. We expect on-site property manager payroll expense to decrease in 2026 as compared to 2025 as we continue to enhance operational processes. Repairs and maintenance expense increased 1.4% and 8.8% in 2025 and 2024, respectively, in each case as compared to the previous year. Repairs and maintenance expense levels are dependent upon many factors such as (i) damage and equipment malfunctions, (ii) short-term local supply and demand factors for material and labor, and (iii) weather conditions, which can impact costs such as snow removal, roof repairs, and HVAC maintenance and repairs. Our utility expense consists primarily of electricity costs, which are dependent upon energy prices and usage levels. Changes in usage levels are driven primarily by weather and temperature. Utility expense increased 1.0% in 2025 and decreased 4.2% in 2024 as compared to the previous year, due primarily to our investment in energy saving technology such as solar power and LED lights, which generate favorable returns on investment in the form of lower utility usage, partially offset by increased utility rates in 2025. We expect lower electricity consumption in 2026 as a result of our continued investment in solar power. Marketing expense includes internet advertising we utilize through our online paid search programs and the operating costs of our website and telephone reservation center. Internet advertising expense, comprising keyword search fees assessed on a “per click” basis, varies based upon demand for self-storage space, the quantity of people inquiring about self-storage through online search, occupancy levels, the number and aggressiveness of bidding competitors, and other factors. These factors are volatile; accordingly, internet advertising can increase or decrease significantly in the short-term. Our marketing expense decreased by 4.4% in 2025 and increased by 13.1% in 2024 as compared to the previous year. The decrease in 2025 was primarily due to realized cost efficiencies on our online paid search programs utilized to attract new tenants. The increase in 2024 was primarily due to utilizing a higher volume of online paid search programs to attract new tenants. We plan to continue to use internet advertising and other advertising channels to support move-in volumes in 2026. Indirect Cost of Operations represents costs related to our supervisory payroll, centralized management costs, and share-based compensation. Indirect Cost of Operations increased 6.0% in 2025 and decreased 6.4% in 2024 as compared to the previous year primarily related to changes in the administrative and cash compensation expenses for shared general corporate functions to the extent their efforts are devoted to self-storage operations. Such functions include information technology support, hardware, and software, as well as centralized administration of payroll, benefits, training, repairs and maintenance, customer service, pricing and marketing, operational accounting and finance, legal costs, and costs from field management executives. The increase in 2025 was primarily driven by increases in personnel-related costs. The decrease in 2024 was primarily driven by achievement of economies of scale from recent acquisitions with centralized management costs allocated over a broader number of self-storage facilities including Non-Same Store Facilities. 34 Analysis of Market Trends The following tables set forth selected market trends in our Same Store Facilities: Same Store Facilities Operating Trends by Market As of December 31, 2025 Year Ended December 31, Realized Rent per Occupied Square Foot Average Occupancy Realized Rent per Available Square Foot Number of Facilities Square Feet (millions) 2025 2024 Change (a) 2025 2024 Change (a) 2025 2024 Change (a) Los Angeles 217 15.8 $ 35.76  $ 36.17  (1.1) % 94.8  % 94.6  % 0.2  % $ 33.91  $ 34.23  (0.9) % San Francisco 130 8.0 33.66  32.69  3.0  % 94.0  % 94.3  % (0.3) % 31.63  30.81  2.7  % New York 90 6.6 32.97  32.33  2.0  % 93.2  % 93.6  % (0.4) % 30.72  30.25  1.6  % Washington DC 109 7.3 27.48  26.92  2.1  % 93.2  % 92.8  % 0.4  % 25.62  24.97  2.6  % Miami 85 6.3 30.07  29.86  0.7  % 92.6  % 93.3  % (0.7) % 27.84  27.87  (0.1) % Seattle-Tacoma 95 6.7 26.66  25.76  3.5  % 92.2  % 92.8  % (0.6) % 24.59  23.90  2.9  % Dallas-Ft. Worth 136 10.2 17.41  18.23  (4.5) % 89.5  % 89.2  % 0.3  % 15.59  16.26  (4.1) % Houston 128 10.4 16.97  16.76  1.3  % 90.2  % 91.7  % (1.5) % 15.32  15.36  (0.3) % Chicago 132 8.4 21.13  20.49  3.1  % 92.7  % 92.9  % (0.2) % 19.60  19.03  3.0  % Atlanta 107 7.1 16.10  17.30  (6.9) % 88.5  % 88.2  % 0.3  % 14.25  15.27  (6.7) % West Palm Beach 42 3.3 25.80  25.78  0.1  % 91.5  % 92.5  % (1.0) % 23.61  23.83  (0.9) % Orlando-Daytona 72 4.6 18.66  18.73  (0.4) % 89.9  % 91.6  % (1.7) % 16.78  17.16  (2.2) % Philadelphia 60 3.9 20.52  20.62  (0.5) % 92.7  % 92.7  % —  % 19.02  19.11  (0.5) % Baltimore 40 2.9 23.40  23.55  (0.6) % 93.0  % 92.4  % 0.6  % 21.77  21.75  0.1  % San Diego 22 2.1 30.51  29.79  2.4  % 93.9  % 94.3  % (0.4) % 28.64  28.10  1.9  % Charlotte 57 4.4 15.79  15.99  (1.3) % 89.8  % 91.3  % (1.5) % 14.18  14.60  (2.9) % Denver 60 4.1 19.27  19.30  (0.2) % 91.6  % 91.8  % (0.2) % 17.66  17.72  (0.3) % Tampa 56 3.7 19.32  18.78  2.9  % 91.2  % 91.7  % (0.5) % 17.62  17.22  2.3  % Phoenix 45 3.1 19.34  19.76  (2.1) % 91.8  % 92.2  % (0.4) % 17.75  18.22  (2.6) % Detroit 43 3.1 18.21  17.96  1.4  % 92.7  % 92.8  % (0.1) % 16.88  16.67  1.3  % Boston 27 1.9 28.94  28.46  1.7  % 93.7  % 93.8  % (0.1) % 27.12  26.69  1.6  % Honolulu 11 0.8 55.26  53.21  3.9  % 95.6  % 96.1  % (0.5) % 52.82  51.11  3.3  % Portland 44 2.3 21.74  21.28  2.2  % 92.3  % 93.0  % (0.7) % 20.06  19.79  1.4  % Minneapolis/St. Paul 50 3.5 16.84  16.46  2.3  % 93.1  % 92.2  % 0.9  % 15.68  15.17  3.4  % Sacramento 34 2.0 21.70  21.65  0.2  % 92.8  % 93.6  % (0.8) % 20.13  20.27  (0.7) % All other markets 673 42.8 16.28  16.22  0.4  % 91.5  % 92.2  % (0.7) % 14.90  14.95  (0.3) % Totals 2,565 175.3 $ 22.54  $ 22.43  0.5  % 92.0  % 92.4  % (0.4) % $ 20.74  $ 20.72  0.1  % (a) Represents the absolute nominal change with respect to square foot occupancy, and the percentage change with respect to all other items. 35 Same Store Facilities Operating Trends by Market (Continued) Year Ended December 31, Revenues ($000's) Direct Expenses ($000's) Indirect Expenses ($000's) Net Operating Income ($000's) 2025 2024 Change 2025 2024 Change 2025 2024 Change 2025 2024 Change Los Angeles $ 548,557  $ 553,831  (1.0) % $ 72,586  $ 70,632  2.8  % $ 10,234  $ 10,395  (1.5) % $ 465,737  $ 472,804  (1.5) % San Francisco 259,617  253,191  2.5  % 39,776  39,403  0.9  % 6,067  5,631  7.7  % 213,774  208,157  2.7  % New York 210,339  207,047  1.6  % 51,929  50,679  2.5  % 4,900  4,374  12.0  % 153,510  151,994  1.0  % Washington DC 193,133  188,317  2.6  % 40,138  37,760  6.3  % 5,239  5,064  3.5  % 147,756  145,493  1.6  % Miami 180,102  180,326  (0.1) % 39,308  41,001  (4.1) % 3,825  3,756  1.8  % 136,969  135,569  1.0  % Seattle-Tacoma 167,980  163,282  2.9  % 30,324  32,503  (6.7) % 4,511  4,159  8.5  % 133,145  126,620  5.2  % Dallas-Ft. Worth 165,380  172,947  (4.4) % 43,782  42,253  3.6  % 5,970  5,237  14.0  % 115,628  125,457  (7.8) % Houston 167,013  167,654  (0.4) % 45,869  45,486  0.8  % 5,854  5,358  9.3  % 115,290  116,810  (1.3) % Chicago 170,409  165,443  3.0  % 66,834  62,466  7.0  % 5,761  5,355  7.6  % 97,814  97,622  0.2  % Atlanta 106,706  114,192  (6.6) % 25,377  27,458  (7.6) % 4,863  4,485  8.4  % 76,466  82,249  (7.0) % West Palm Beach 80,016  80,834  (1.0) % 17,655  17,989  (1.9) % 1,959  2,056  (4.7) % 60,402  60,789  (0.6) % Orlando-Daytona 79,710  81,508  (2.2) % 17,441  17,472  (0.2) % 3,156  3,062  3.1  % 59,113  60,974  (3.1) % Philadelphia 77,093  77,485  (0.5) % 19,553  17,709  10.4  % 2,626  2,576  1.9  % 54,914  57,200  (4.0) % Baltimore 66,939  66,842  0.1  % 13,777  13,495  2.1  % 1,771  1,646  7.6  % 51,391  51,701  (0.6) % San Diego 60,398  59,325  1.8  % 9,369  9,433  (0.7) % 1,074  1,189  (9.7) % 49,955  48,703  2.6  % Charlotte 65,692  67,639  (2.9) % 13,541  13,618  (0.6) % 2,445  2,210  10.6  % 49,706  51,811  (4.1) % Denver 75,994  76,279  (0.4) % 23,813  24,163  (1.4) % 2,589  2,452  5.6  % 49,592  49,664  (0.1) % Tampa 68,548  67,163  2.1  % 16,674  16,763  (0.5) % 2,384  2,232  6.8  % 49,490  48,168  2.7  % Phoenix 58,033  59,634  (2.7) % 11,007  11,977  (8.1) % 1,897  1,999  (5.1) % 45,129  45,658  (1.2) % Detroit 54,940  54,286  1.2  % 11,722  10,397  12.7  % 1,949  1,738  12.1  % 41,269  42,151  (2.1) % Boston 52,112  51,264  1.7  % 11,583  11,405  1.6  % 1,283  1,264  1.5  % 39,246  38,595  1.7  % Honolulu 43,398  41,949  3.5  % 5,797  5,674  2.2  % 630  520  21.2  % 36,971  35,755  3.4  % Portland 48,472  47,881  1.2  % 9,816  9,655  1.7  % 1,779  1,781  (0.1) % 36,877  36,445  1.2  % Minneapolis/St. Paul 56,238  54,397  3.4  % 17,528  17,255  1.6  % 2,184  1,935  12.9  % 36,526  35,207  3.7  % Sacramento 40,917  41,240  (0.8) % 7,185  6,612  8.7  % 1,479  1,424  3.9  % 32,253  33,204  (2.9) % All other markets 667,097  669,597  (0.4) % 157,989  157,035  0.6  % 29,116  27,143  7.3  % 479,992  485,419  (1.1) % Totals $ 3,764,833  $ 3,763,553  —  % $ 820,373  $ 810,293  1.2  % $ 115,545  $ 109,041  6.0  % $ 2,828,915  $ 2,844,219  (0.5) % 36 Same Store Facilities Operating Trends by Market (Continued) As of December 31, 2024 Year Ended December 31, Realized Rent per Occupied Square Foot Average Occupancy Realized Rent per Available Square Foot Number of Facilities Square Feet (millions) 2024 2023 Change (a) 2024 2023 Change (a) 2024 2023 Change (a) Los Angeles 217  15.8  $ 36.17  $ 35.91  0.7  % 94.6  % 95.4  % (0.8) % $ 34.23  $ 34.24  —  % San Francisco 130  8.0  32.69  32.22  1.5  % 94.3  % 94.3  % —  % 30.81  30.38  1.4  % New York 90  6.6  32.33  32.13  0.6  % 93.6  % 93.3  % 0.3  % 30.25  29.98  0.9  % Washington DC 109  7.3  26.92  26.62  1.1  % 92.8  % 91.7  % 1.1  % 24.97  24.40  2.3  % Miami 85  6.3  29.86  29.90  (0.1) % 93.3  % 93.7  % (0.4) % 27.87  28.00  (0.5) % Seattle-Tacoma 95  6.7  25.76  25.90  (0.5) % 92.8  % 92.4  % 0.4  % 23.90  23.94  (0.2) % Dallas-Ft. Worth 136  10.2  18.23  18.10  0.7  % 89.2  % 91.6  % (2.4) % 16.26  16.57  (1.9) % Houston 128  10.4  16.76  16.48  1.7  % 91.7  % 91.9  % (0.2) % 15.36  15.16  1.3  % Chicago 132  8.4  20.49  20.16  1.6  % 92.9  % 93.0  % (0.1) % 19.03  18.74  1.5  % Atlanta 107  7.1  17.30  17.93  (3.5) % 88.2  % 90.8  % (2.6) % 15.27  16.29  (6.3) % West Palm Beach 42  3.3  25.78  26.25  (1.8) % 92.5  % 93.4  % (0.9) % 23.83  24.53  (2.9) % Orlando-Daytona 72  4.6  18.73  19.47  (3.8) % 91.6  % 93.2  % (1.6) % 17.16  18.14  (5.4) % Philadelphia 60  3.9  20.62  20.99  (1.8) % 92.7  % 92.7  % —  % 19.11  19.46  (1.8) % Baltimore 40  2.9  23.55  23.97  (1.8) % 92.4  % 91.0  % 1.4  % 21.75  21.82  (0.3) % San Diego 22  2.1  29.79  29.30  1.7  % 94.3  % 94.6  % (0.3) % 28.10  27.72  1.4  % Charlotte 57  4.4  15.99  16.17  (1.1) % 91.3  % 93.0  % (1.7) % 14.60  15.03  (2.9) % Denver 60  4.1  19.30  19.23  0.4  % 91.8  % 92.5  % (0.7) % 17.72  17.80  (0.4) % Tampa 56  3.7  18.78  19.87  (5.5) % 91.7  % 91.9  % (0.2) % 17.22  18.27  (5.7) % Phoenix 45  3.1  19.76  20.73  (4.7) % 92.2  % 92.1  % 0.1  % 18.22  19.09  (4.6) % Detroit 43  3.1  17.96  17.80  0.9  % 92.8  % 93.0  % (0.2) % 16.67  16.55  0.7  % Boston 27  1.9  28.46  28.22  0.9  % 93.8  % 94.1  % (0.3) % 26.69  26.55  0.5  % Honolulu 11  0.8  53.21  51.30  3.7  % 96.1  % 96.3  % (0.2) % 51.11  49.41  3.4  % Portland 44  2.3  21.28  21.63  (1.6) % 93.0  % 92.7  % 0.3  % 19.79  20.05  (1.3) % Minneapolis/St. Paul 50  3.5  16.46  16.46  —  % 92.2  % 91.9  % 0.3  % 15.17  15.12  0.3  % Sacramento 34  2.0  21.65  21.98  (1.5) % 93.6  % 94.1  % (0.5) % 20.27  20.69  (2.0) % All other markets 673  42.8  16.22  16.31  (0.6) % 92.2  % 92.9  % (0.7) % 14.95  15.16  (1.4) % Totals 2,565  175.3  $ 22.43  $ 22.44  —  % 92.4  % 92.9  % (0.5) % $ 20.72  $ 20.85  (0.6) % (a) Represents the absolute nominal change with respect to square foot occupancy, and the percentage change with respect to all other items. 37 Same Store Facilities Operating Trends by Market (Continued) Year Ended December 31, Revenues ($000's) Direct Expenses ($000's) Indirect Expenses ($000's) Net Operating Income ($000's) 2024 2023 Change 2024 2023 Change 2024 2023 Change 2024 2023 Change Los Angeles $ 553,831  $ 554,243  (0.1) % $ 70,632  $ 73,349  (3.7) % $ 10,395  $ 11,111  (6.4) % $ 472,804  $ 469,783  0.6  % San Francisco 253,191  249,790  1.4  % 39,403  38,835  1.5  % 5,631  5,958  (5.5) % 208,157  204,997  1.5  % New York 207,047  204,976  1.0  % 50,679  48,963  3.5  % 4,374  4,670  (6.3) % 151,994  151,343  0.4  % Washington DC 188,317  184,028  2.3  % 37,760  37,260  1.3  % 5,064  5,065  —  % 145,493  141,703  2.7  % Miami 180,326  181,188  (0.5) % 41,001  34,815  17.8  % 3,756  4,018  (6.5) % 135,569  142,355  (4.8) % Seattle-Tacoma 163,282  163,512  (0.1) % 32,503  29,663  9.6  % 4,159  4,139  0.5  % 126,620  129,710  (2.4) % Dallas-Ft. Worth 172,947  176,536  (2.0) % 42,253  40,314  4.8  % 5,237  5,788  (9.5) % 125,457  130,434  (3.8) % Houston 167,654  165,526  1.3  % 45,486  44,212  2.9  % 5,358  5,607  (4.4) % 116,810  115,707  1.0  % Chicago 165,443  162,916  1.6  % 62,466  61,273  1.9  % 5,355  5,607  (4.5) % 97,622  96,036  1.7  % Atlanta 114,192  121,446  (6.0) % 27,458  24,661  11.3  % 4,485  4,719  (5.0) % 82,249  92,066  (10.7) % West Palm Beach 80,834  83,245  (2.9) % 17,989  18,150  (0.9) % 2,056  2,208  (6.9) % 60,789  62,887  (3.3) % Orlando-Daytona 81,508  86,032  (5.3) % 17,472  16,903  3.4  % 3,062  3,312  (7.5) % 60,974  65,817  (7.4) % Philadelphia 77,485  78,781  (1.6) % 17,709  17,737  (0.2) % 2,576  2,722  (5.4) % 57,200  58,322  (1.9) % Baltimore 66,842  67,004  (0.2) % 13,495  12,754  5.8  % 1,646  1,729  (4.8) % 51,701  52,521  (1.6) % San Diego 59,325  58,553  1.3  % 9,433  8,985  5.0  % 1,189  1,360  (12.6) % 48,703  48,208  1.0  % Charlotte 67,639  69,501  (2.7) % 13,618  12,874  5.8  % 2,210  2,308  (4.2) % 51,811  54,319  (4.6) % Denver 76,279  76,605  (0.4) % 24,163  23,994  0.7  % 2,452  2,521  (2.7) % 49,664  50,090  (0.9) % Tampa 67,163  71,189  (5.7) % 16,763  16,251  3.2  % 2,232  2,488  (10.3) % 48,168  52,450  (8.2) % Phoenix 59,634  62,473  (4.5) % 11,977  12,226  (2.0) % 1,999  2,055  (2.7) % 45,658  48,192  (5.3) % Detroit 54,286  53,871  0.8  % 10,397  10,985  (5.4) % 1,738  1,702  2.1  % 42,151  41,184  2.3  % Boston 51,264  50,955  0.6  % 11,405  10,856  5.1  % 1,264  1,412  (10.5) % 38,595  38,687  (0.2) % Honolulu 41,949  40,577  3.4  % 5,674  5,503  3.1  % 520  654  (20.5) % 35,755  34,420  3.9  % Portland 47,881  48,502  (1.3) % 9,655  9,343  3.3  % 1,781  1,917  (7.1) % 36,445  37,242  (2.1) % Minneapolis/St. Paul 54,397  54,260  0.3  % 17,255  18,231  (5.4) % 1,935  2,020  (4.2) % 35,207  34,009  3.5  % Sacramento 41,240  42,070  (2.0) % 6,612  6,670  (0.9) % 1,424  1,538  (7.4) % 33,204  33,862  (1.9) % All other markets 669,597  678,472  (1.3) % 157,035  148,828  5.5  % 27,143  29,927  (9.3) % 485,419  499,717  (2.9) % Totals $ 3,763,553  $ 3,786,251  (0.6) % $ 810,293  $ 783,635  3.4  % $ 109,041  $ 116,555  (6.4) % $ 2,844,219  $ 2,886,061  (1.4) % 38 Acquired Facilities The Acquired Facilities represent 273 facilities that we acquired in 2025, 2024, and 2023. As a result of the stabilization process and timing of when these facilities were acquired, year-over-year changes can be significant. The following table summarizes operating data with respect to the Acquired Facilities: ACQUIRED FACILITIES Year Ended December 31, Year Ended December 31, 2025 2024 Change (a) 2024 2023 Change (a) (Dollar amounts in thousands, except for per square foot amounts) Revenues (b): 2023 Acquisitions $ 192,666 $ 184,097 $ 8,569 $ 184,097 $ 55,487 $ 128,610 2024 Acquisitions 20,581 1,827 18,754 1,827 — 1,827 2025 Acquisitions 33,422 — 33,422 — — — Total revenues 246,669 185,924 60,745 185,924 55,487 130,437 Cost of operations (b): 2023 Acquisitions 58,588 60,049 (1,461) 60,049 19,922 40,127 2024 Acquisitions 7,689 1,019 6,670 1,019 — 1,019 2025 Acquisitions 12,890 — 12,890 — — — Total cost of operations 79,167 61,068 18,099 61,068 19,922 41,146 Net operating income: 2023 Acquisitions 134,078 124,048 10,030 124,048 35,565 88,483 2024 Acquisitions 12,892 808 12,084 808 — 808 2025 Acquisitions 20,532 — 20,532 — — — Net operating income 167,502 124,856 42,646 124,856 35,565 89,291 Depreciation and amortization expense (220,053) (206,319) (13,734) (206,319) (72,848) (133,471) Net loss $ (52,551) $ (81,463) $ 28,912 $ (81,463) $ (37,283) $ (44,180) As of December 31: Square foot occupancy: 2023 Acquisitions 86.9% 86.8% 0.1% 86.8% 83.1% 3.7% 2024 Acquisitions 86.9% 79.0% 7.9% 79.0% —% —% 2025 Acquisitions 80.5% —% —% —% —% —% 85.0% 85.9% (0.9)% 85.9% 83.1% 2.8% Annual contract rent per occupied square foot (c): 2023 Acquisitions $ 17.43 $ 17.32 0.6% $ 17.32 $ 16.78 3.2% 2024 Acquisitions 14.24 13.69 4.0% 13.69 — —% 2025 Acquisitions 13.63 — —% — — —% $ 16.06 $ 16.92 (5.1)% $ 16.92 $ 16.78 0.8% Number of facilities: 2023 Acquisitions 164 164 — 164 164 — 2024 Acquisitions 22 22 — 22 — 22 2025 Acquisitions 87 — 87 — — — 273 186 87 186 164 22 Net rentable square feet (in thousands): 2023 Acquisitions (d) 12,112 12,067 45 12,067 12,067 — 2024 Acquisitions 1,666 1,666 — 1,666 — 1,666 2025 Acquisitions 6,115 — 6,115 — — — 19,893 13,733 6,160 13,733 12,067 1,666 39 ACQUIRED FACILITIES (Continued) As of December 31 2025 Costs to acquire (in thousands): 2023 Acquisitions (d)(e) $ 2,674,840 2024 Acquisitions 267,473 2025 Acquisitions 945,586 $ 3,887,899 (a) Represents the percentage change with respect to annual contract rent per occupied square foot, and the absolute nominal change with respect to all other items. (b) Revenues and cost of operations do not include tenant reinsurance and merchandise sale revenues and expenses generated at the facilities. See “Ancillary Operations” below for more information. (c) Annual contract rent represents the agreed upon monthly rate that is paid by our tenants in place at the time of measurement. Contract rates are initially set in the lease agreement upon move-in, and we adjust them from time to time with notice. Contract rent excludes other fees that are charged on a per-item basis, such as late charges and administrative fees, does not reflect the impact of promotional discounts, and does not reflect the impact of rents that are written off as uncollectible. (d) We have completed the expansion project on a facility acquired in 2023 for $6.9 million, adding 45,000 net rentable square feet of storage space as of December 31, 2025. (e) The amount includes the costs allocated to land, buildings and intangible assets associated with the 127 self-storage facilities from the Simply (as defined below) acquisition. We have been active in acquiring facilities in recent years. Since the beginning of 2023, we acquired a total of 273 facilities with 19.9 million net rentable square feet for $3.9 billion. During 2025, these facilities contributed net operating income of $167.5 million. During 2023, we acquired BREIT Simply Storage LLC (“Simply”), a self-storage company that owned and operated 127 self-storage facilities (9.4 million square feet) and managed 25 self-storage facilities (1.8 million square feet) for third parties, for a purchase price of $2.2 billion in cash. We remain active in seeking to acquire additional self-storage facilities. Future acquisition volume may be impacted by cost of capital and overall macro-economic uncertainties. During 2025, we acquired 87 self-storage facilities across 21 states with 6.1 million net rentable square feet for $945.6 million. Subsequent to December 31, 2025, we acquired or were under contract to acquire three self-storage facilities across three states with 0.2 million net rentable square feet for $20.7 million. Our total acquisitions planned or completed through December 31, 2025, amount to $966.3 million. 40 Newly Developed and Expanded Facilities The Newly Developed and Expanded Facilities include 47 facilities that were developed on new sites since January 1, 2020, and 64 facilities expanded to increase their net rentable square footage. Of these expansions, 45 were completed before 2024, 14 were completed in 2024 or 2025, and five are currently in process at December 31, 2025. The following table summarizes operating data with respect to the Newly Developed and Expanded Facilities: NEWLY DEVELOPED AND EXPANDED FACILITIES Year Ended December 31, Year Ended December 31, 2025 2024 Change (a) 2024 2023 Change (a) (Dollar amounts in thousands, except for per square foot amounts) Revenues (b): Developed in 2020 $ 7,078  $ 7,371  $ (293) $ 7,371  $ 7,621  $ (250) Developed in 2021 12,517  11,864  653  11,864  11,134  730 Developed in 2022 11,609  10,054  1,555  10,054  6,893  3,161 Developed in 2023 11,162  6,168  4,994  6,168  1,032  5,136 Developed in 2024 4,852  874  3,978  874  —  874 Developed in 2025 1,183  —  1,183  —  —  — Expansions completed before 2024 103,408  96,650  6,758  96,650  86,995  9,655 Expansions completed in 2024 or 2025 20,615  16,250  4,365  16,250  18,874  (2,624) Expansions in process 10,598  11,384  (786) 11,384  11,440  (56) Total revenues 183,022  160,615  22,407  160,615  143,989  16,626 Cost of operations (b): Developed in 2020 2,056  2,037  19  2,037  1,884  153 Developed in 2021 4,026  3,743  283  3,743  3,849  (106) Developed in 2022 3,959  4,055  (96) 4,055  3,563  492 Developed in 2023 5,450  4,976  474  4,976  1,638  3,338 Developed in 2024 2,705  879  1,826  879  —  879 Developed in 2025 1,012  —  1,012  —  —  — Expansions completed before 2024 27,670  29,006  (1,336) 29,006  25,200  3,806 Expansions completed in 2024 or 2025 9,356  5,614  3,742  5,614  5,106  508 Expansions in process 2,149  2,500  (351) 2,500  2,132  368 Total cost of operations 58,383  52,810  5,573  52,810  43,372  9,438 Net operating income (loss): Developed in 2020 5,022  5,334  (312) 5,334  5,737  (403) Developed in 2021 8,491  8,121  370  8,121  7,285  836 Developed in 2022 7,650  5,999  1,651  5,999  3,330  2,669 Developed in 2023 5,712  1,192  4,520  1,192  (606) 1,798 Developed in 2024 2,147  (5) 2,152  (5) —  (5) Developed in 2025 171  —  171  —  —  — Expansions completed before 2024 75,738  67,644  8,094  67,644  61,795  5,849 Expansions completed in 2024 or 2025 11,259  10,636  623  10,636  13,768  (3,132) Expansions in process 8,449  8,884  (435) 8,884  9,308  (424) Net operating income 124,639  107,805  16,834  107,805  100,617  7,188 Depreciation and amortization expense (69,482) (53,719) (15,763) (53,719) (40,458) (13,261) Net income $ 55,157  $ 54,086  $ 1,071  $ 54,086  $ 60,159  $ (6,073) 41 NEWLY DEVELOPED AND EXPANDED FACILITIES (Continued) As of December 31, As of December 31, 2025 2024 Change (a) 2024 2023 Change (a) (Dollar amounts in thousands, except for per square foot amounts) Square foot occupancy: Developed in 2020 89.5% 89.3% 0.2% 89.3% 89.4% (0.1)% Developed in 2021 83.6% 77.7% 5.9% 77.7% 81.5% (3.8)% Developed in 2022 92.1% 86.3% 5.8% 86.3% 77.7% 8.6% Developed in 2023 79.3% 75.9% 3.4% 75.9% 27.9% 48.0% Developed in 2024 74.9% 41.0% 33.9% 41.0% —% —% Developed in 2025 21.5% —% —% —% —% —% Expansions completed before 2024 84.6% 81.8% 2.8% 81.8% 79.2% 2.6% Expansions completed in 2024 or 2025 61.9% 61.6% 0.3% 61.6% 83.8% (22.2)% Expansions in process 89.2% 86.7% 2.5% 86.7% 92.4% (5.7)% 76.0% 76.9% (0.9)% 76.9% 74.8% 2.1% Annual contract rent per occupied square foot (c): Developed in 2020 $ 21.20 $ 21.77 (2.6)% $ 21.77 $ 22.73 (4.2)% Developed in 2021 19.44 19.62 (0.9)% 19.62 19.78 (0.8)% Developed in 2022 18.29 17.74 3.1% 17.74 16.20 9.5% Developed in 2023 12.42 10.34 20.1% 10.34 9.61 7.6% Developed in 2024 12.66 10.17 24.5% 10.17 — —% Developed in 2025 12.42 — —% — — —% Expansions completed before 2024 20.66 20.33 1.6% 20.33 20.45 (0.6)% Expansions completed in 2024 or 2025 17.59 19.55 (10.0)% 19.55 21.94 (10.9)% Expansions in process 26.86 27.41 (2.0)% 27.41 27.39 0.1% $ 18.89 $ 19.13 (1.3)% $ 19.13 $ 17.37 10.1% Number of facilities: Developed in 2020 3 3 — 3 3 — Developed in 2021 6 6 — 6 6 — Developed in 2022 8 8 — 8 8 — Developed in 2023 11 11 — 11 11 — Developed in 2024 7 7 — 7 — 7 Developed in 2025 12 — 12 — — — Expansions completed before 2024 45 45 — 45 45 — Expansions completed in 2024 or 2025 14 14 — 14 14 — Expansions in process 5 5 — 5 5 — 111 99 12 99 92 7 Net rentable square feet (in thousands): Developed in 2020 347 347 — 347 347 — Developed in 2021 (d) 760 760 — 760 681 79 Developed in 2022 631 631 — 631 631 — Developed in 2023 (e) 1,238 1,098 140 1,098 1,098 — Developed in 2024 668 668 — 668 — 668 Developed in 2025 1,280 — 1,280 — — — Expansions completed before 2024 5,812 5,834 (22) 5,834 5,481 353 Expansions completed in 2024 or 2025 2,133 1,378 755 1,378 794 584 Expansions in process 444 439 5 439 439 — 13,313 11,155 2,158 11,155 9,471 1,684 42 NEWLY DEVELOPED AND EXPANDED FACILITIES (Continued) As of December 31, 2025 Costs to develop (in thousands): Developed in 2020 $ 42,063 Developed in 2021 (d) 128,435 Developed in 2022 100,089 Developed in 2023 (e) 217,572 Developed in 2024 129,669 Developed in 2025 244,838 Expansions completed before 2024 (f) 468,750 Expansions completed in 2024 or 2025 (f) 341,113 $ 1,672,529 (a) Represents the percentage change with respect to annual contract rent per occupied square foot, and the absolute nominal change with respect to all other items. (b) Revenues and cost of operations do not include tenant reinsurance and merchandise sales generated at the facilities. See “Ancillary Operations” below for more information. (c) Annual contract rent represents the agreed upon monthly rate that is paid by our tenants in place at the time of measurement. Contract rates are initially set in the lease agreement upon move-in, and we adjust them from time to time with notice. Contract rent excludes other fees that are charged on a per-item basis, such as late charges and administrative fees, does not reflect the impact of promotional discounts, and does not reflect the impact of rents that are written off as uncollectible. (d) We have completed an expansion project on a facility developed in 2021 for $12.8 million, adding 79,000 net rentable square feet of storage space as of December 31, 2024. (e) We have completed an expansion project on a facility developed in 2023 for $23.8 million, adding 140,000 net rentable square feet of storage space as of December 31, 2025. (f) These amounts only include the direct cost incurred to expand and renovate these facilities, and do not include (i) the original cost to develop or acquire the facility or (ii) the lost revenue on space demolished during the construction and fill-up period. Our Newly Developed and Expanded Facilities includes a total of 111 self-storage facilities of 13.3 million net rentable square feet. For development and expansions completed by December 31, 2025, we incurred a total cost of $1.7 billion. During 2025, Newly Developed and Expanded Facilities contributed net operating income of $124.6 million. It typically takes at least three to four years for a newly developed or expanded self-storage facility to stabilize with respect to revenues. Physical occupancy can be achieved as early as two to three years following completion of the development or expansion through offering lower rental rates during fill-up. As a result, even after achieving high occupancy, there can still be a period of elevated revenue growth as the tenant base matures and higher rental rates are achieved. We believe that our development and redevelopment activities generate favorable risk-adjusted returns over the long run. However, in the short run, our earnings are diluted during the construction and stabilization period due to the cost of capital to fund the development cost, the related construction and development overhead expenses included in general and administrative expense, and the net operating loss from newly developed facilities undergoing fill-up. We typically underwrite new developments to stabilize at approximately an 8% yield on cost (adjusted for impacts from tenant reinsurance and maintenance capital expenditures). Our developed facilities have thus far leased up as expected and are at various stages of their revenue stabilization periods. The actual annualized yields that we may achieve on these facilities upon stabilization will depend on many factors, including local and current market conditions in the vicinity of each property and the level of new and existing supply. The facilities under “expansions completed” represent those facilities where the expansions have been completed at December 31, 2025. We incurred a total of $809.9 million in direct cost to expand these facilities, demolished a total of 0.6 million net rentable square feet of storage space, and built a total of 4.8 million net rentable square feet of new storage space. 43 The facilities under “expansion in process” represent those facilities where construction is in process at December 31, 2025, and together with additional future expansion activities primarily related to our Same Store Facilities at December 31, 2025, we expect to add a total of 0.9 million net rentable square feet of storage space by expanding existing self-storage facilities for an aggregate direct development cost of $130.4 million. At December 31, 2025, we had 29 additional facilities in development, which will have a total of 2.6 million net rentable square feet of storage space and have an aggregate development cost totaling approximately $479.5 million. We expect these facilities to open over the next 18 to 24 months. As of December 31, 2025, we have ongoing development and expansion projects at an estimated cost of approximately $609.9 million. Other Non-Same Store Facilities The “Other Non-Same Store Facilities” represent facilities which, while not newly acquired, developed, or expanded, are not fully stabilized since January 1, 2023, including facilities acquired prior to 2023 and facilities developed or expanded prior to 2020 undergoing fill-up as well as facilities damaged in casualty events such as hurricanes, floods, and fires. The Other Non-Same Store Facilities have an aggregate of 20.9 million net rentable square feet at December 31, 2025. During 2025, 2024, and 2023, the average occupancy for these facilities totaled 85.3%, 81.8%, and 80.8%, respectively, and the realized rent per occupied square foot totaled $15.82, $16.01, and $15.52, respectively. Depreciation and amortization expense Depreciation and amortization expense for Self-Storage Operations increased $22.1 million and $159.7 million in 2025 and 2024, respectively in each case as compared to the previous year. The increase was primarily due to newly acquired facilities and newly developed and expanded facilities. 44 The following discussion and analysis of the components of net income, including Ancillary Operations and certain items not allocated to segments, present a comparison for the year ended December 31, 2025 to the year ended December 31, 2024. The results of these components for the years ended December 31, 2024 compared to December 31, 2023 was included in our Annual Report on Form 10-K for the year ended December 31, 2024 on page 45, under Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” which was filed with the SEC on February 24, 2025. Ancillary Operations Ancillary revenues and expenses include amounts associated with the reinsurance of policies against losses to goods stored by tenants in our self-storage facilities, sale of merchandise at our self-storage facilities, and management of property owned by unrelated third parties. The following table sets forth our ancillary operations: Year Ended December 31, 2025 2024 Change (Amounts in thousands) Revenues: Tenant reinsurance premiums $ 250,674 $ 226,595 $ 24,079 Merchandise 25,050 26,970 (1,920) Third party property management 58,976 46,058 12,918 Total revenues 334,700 299,623 35,077 Cost of operations: Tenant reinsurance 58,289 56,678 1,611 Merchandise 17,171 17,633 (462) Third party property management 57,477 46,970 10,507 Total cost of operations 132,937 121,281 11,656 Net operating income (loss): Tenant reinsurance 192,385 169,917 22,468 Merchandise 7,879 9,337 (1,458) Third party property management 1,499 (912) 2,411 Total net operating income $ 201,763 $ 178,342 $ 23,421 Tenant reinsurance operations: Tenant reinsurance premium revenue increased $24.1 million or 10.6% in 2025 over 2024, as a result of an increase in our tenant base with respect to acquired, newly developed, and expanded facilities and the third party properties we manage, as well as higher insurance coverage and premium rates in our tenant base at our same store facilities. Tenant reinsurance premium revenue generated from tenants at our Same Store Facilities were $184.2 million and $175.0 million in 2025 and 2024, respectively, representing a 5.2% year over year increase in 2025. Cost of operations primarily includes claims paid as well as claims adjustment expenses. Claims expenses vary based upon the number of insured tenants and the volume of events that drive covered losses, such as burglary, as well as catastrophic weather events affecting multiple properties such as hurricanes and floods. Tenant reinsurance cost of operations increased $1.6 million in 2025, as compared to 2024, primarily due to increased claim volumes and expenses related to flooding and burglary as well as increased access fees we paid to the third-party owners of properties we manage driven by the significant growth of our third-party property management program. We expect tenant reinsurance operations to grow as we roll out insurance policies with increased coverage and higher premiums in 2026, and as we continue to increase the tenant base at our newly acquired and developed facilities. Third-party property management: At December 31, 2025, in our third-party property management program, we managed 362 facilities (28.2 million net rentable square feet) for unrelated third parties, and were under contract to manage 84 additional facilities (7.1 million net rentable square feet) including 78 facilities that are currently under construction. During 2025, we added 73 facilities to the program and had 18 facilities exit the program. While we expect this business to increase in scope and size, we do not expect any significant changes in overall profitability of this business in the near term as we seek new properties to manage and are in the earlier stages of fill-up for newly managed properties. 45 Analysis of items not allocated to segments Equity in earnings of unconsolidated real estate entity: We account for our equity investment in Shurgard using the equity method and record our pro-rata share of its net income. We recognized equity in earnings of Shurgard of $9.6 million and $19.8 million for 2025 and 2024, respectively. Included in our equity earnings from Shurgard were $59.5 million and $44.2 million of our share of depreciation and amortization expense for 2025 and 2024, respectively. On August 1, 2024, Shurgard acquired Lok’nStore, a self-storage company publicly traded on the London Stock Exchange, for approximately £385 million ($501 million) in cash, including direct acquisition costs. For purposes of recording our equity in earnings from Shurgard, the Euro was translated at exchange rates of approximately 1.174 U.S. Dollars per Euro at December 31, 2025 (1.039 at December 31, 2024), and average exchange rates of 1.130 for 2025 and 1.082 for 2024. Real estate acquisition and development expense: In 2025 and 2024, we incurred a total of $19.6 million and $15.5 million, respectively, of internal and external expenses related to our acquisition and development of real estate facilities. These amounts are net of $13.6 million and $17.2 million in 2025 and 2024, respectively, in development costs that were capitalized to newly developed and redeveloped self-storage facilities. The year-over-year change of real estate acquisition and development expense was primarily due to the recognition of a $4.3 million impairment write-down of certain land development parcels that were marketed for sale during 2025. General and administrative expense: The following table sets forth our general and administrative expense: Year Ended December 31, 2025 2024 Change (Amounts in thousands) Share-based compensation expense $ 24,963  $ 28,708  $ (3,745) Legal costs 14,390  11,690  2,700 Corporate management costs 35,848  30,436  5,412 Information technology costs 2,783  12,110  (9,327) Corporate transformation costs 4,875  —  4,875 Other costs 23,823  23,733  90 Total G&A $ 106,682  $ 106,677  $ 5 General and administrative expense remained relatively unchanged in 2025, as compared to 2024 due primarily to (i) an increase in corporate management costs driven by higher payroll costs, (ii) an increase in corporate transformation costs offset by (iii) a decrease in IT costs as a result of a successful ERP implementation in the prior year. As part of our operating model transformation, we have launched a corporate transformation initiative focused on modernization and growth. This includes streamlining our processes through technology and expanding our geographic footprint with a stronger corporate presence in offshore locations and relocation of our principal office from California to Texas. The initiative is intended to transform our corporate functions improving efficiency and productivity. We expect to incur corporate transformation costs of approximately $15 to $20 million as we complete the initiative over the next three years. Beginning in 2026, we believe this restructuring plan will result in future cost savings of approximately $3 to $5 million annually, although the amount and timing of such savings are subject to change depending on a variety of factors. 46 Interest and other income: The following table sets forth our interest and other income: Year Ended December 31, 2025 2024 Change (Amounts in thousands) Interest earned on cash balances $ 31,543  $ 44,659  $ (13,116) Commercial operations 9,120  8,951  169 Interest earned on notes receivable, net 5,074  123  4,951 Unrealized gain on private equity investments 3,859  4,355  (496) Other 13,503  9,124  4,379 Total $ 63,099  $ 67,212  $ (4,113) Interest earned on cash balances decreased $13.1 million in 2025 as compared to 2024, due primarily to lower average cash balances and lower interest rates earned in 2025. Interest expense: In 2025 and 2024, we incurred $311.0 million and $297.9 million, respectively, of interest on our outstanding notes payable. In determining interest expense, these amounts were offset by capitalized interest of $6.5 million and $10.5 million during 2025 and 2024, respectively, associated with our development activities. The increase of interest expense in 2025 as compared to 2024 was due to the issuance of U.S. Dollar and Euro denominated unsecured notes. At December 31, 2025, we had $10.3 billion of notes payable outstanding, with a weighted average interest rate of approximately 3.2%. Foreign currency exchange gain (loss): In 2025, we recorded foreign currency losses of $215.6 million, representing primarily the changes in the U.S. Dollar equivalent of our Euro-denominated unsecured notes due to fluctuations in exchange rates (gains of $102.2 million for 2024). The Euro was translated at exchange rates of approximately 1.174 U.S. Dollars per Euro at December 31, 2025 and 1.039 at December 31, 2024. Future gains and losses on foreign currency will be dependent upon changes in the relative value of the Euro to the U.S. Dollar and the level of Euro-denominated notes payable outstanding. Income tax (provision) benefit: We operate as a REIT for U.S. federal income tax purposes. As a REIT, we are generally not subject to U.S. federal income taxes on our taxable income distributed to stockholders. In 2025, we recorded an income tax benefit of $7.2 million and an income tax expense of $4.7 million in 2024, related to our taxable REIT subsidiaries and income taxes incurred in certain state and local jurisdictions in which we operate. The year-over-year change in our income tax (provision) benefit was primarily driven by the income tax benefit we recognized through the sale of solar tax credits as well as changes in state income tax, due to fluctuations of taxable income in certain states where there are differences between federal and state tax laws. 47 Liquidity and Capital Resources Overview and our Sources of Capital While operating as a REIT allows us to minimize the payment of U.S. federal corporate income tax expense, we are required to distribute at least 90% of our taxable income to our shareholders. Notwithstanding this requirement, our annual operating retained cash flow was approximately $400 million in 2024 and $566 million in 2025. Retained operating cash flow represents our expected cash flow provided by operating activities (including property operating costs and interest payments described below), less shareholder distributions and capital expenditures. We expect retained cash flow of approximately $605 million for 2026. Capital needs in excess of retained cash flow are met with: (i) medium and long-term debt, (ii) preferred equity, (iii) limited partnership interests, and (iv) common equity. We select among these sources of capital based upon relative cost, availability, the desire for leverage, and considering potential constraints caused by certain features of capital sources, such as debt covenants. Because raising capital is important to our growth, we endeavor to maintain a strong financial profile characterized by strong credit metrics, including low leverage relative to our total capitalization and operating cash flows. We are one of the highest rated REITs, as rated by major rating agencies Moody’s and Standard & Poor’s. Our senior notes payable have an “A” credit rating by Standard & Poor’s and “A2” by Moody’s. Our credit ratings on each of our series of preferred shares are “A3” by Moody’s and “BBB+” by Standard & Poor’s. Our credit profile enables us to effectively access both the public and private capital markets to raise capital. Our revolving line of credit has a borrowing limit of $1.5 billion. As of December 31, 2025 and February 12, 2026, there were no borrowings outstanding on the revolving line of credit; however we do have approximately $19.4 million of outstanding letters of credit, which limits our borrowing capacity to $1.5 billion as of February 12, 2026. Our line of credit matures on June 12, 2027. In December 2024, we implemented an “at the market” offering program pursuant to which we may, from time to time, sell common shares through participating agents up to an aggregate gross sales price of $2.0 billion on the open market or in privately negotiated transactions. Since the inception of the program, we have issued a total of 184,390 common shares on the open market for an aggregate gross sales price of $61.4 million and received net proceeds of approximately $60.3 million after issuance costs. We did not issue any common shares under the program in 2025. We believe that we have significant financial flexibility to adapt to changing conditions and opportunities, and we have significant access to sources of capital including debt and preferred equity. Based on our strong credit profile and our substantial current liquidity relative to our capital requirements noted below, we would not expect any potential capital market dislocations to have a material impact upon our expected capital and growth plans over the next 12 months. However, if capital market conditions deteriorate significantly for a long period of time, our access to or cost of debt and preferred equity capital could be negatively impacted and potentially affect future investment activities. Our current and expected capital resources include: (i) $318.1 million of cash as of December 31, 2025, and (ii) approximately $605 million of expected retained operating cash flow over the next twelve months. Additionally, we have $1.5 billion available borrowing capacity on our revolving line of credit. We believe that the cash provided by our operating activities will continue to be sufficient to enable us to meet our ongoing cash requirements for interest payments on debt, maintenance capital expenditures, and distributions to our shareholders for the foreseeable future. As described below, our current committed cash requirements consist of (i) $20.7 million in property acquisitions currently under contract, (ii) $415.6 million of remaining spending on our current development pipeline, which will be incurred primarily in the next 18 to 24 months, (iii) unfunded loan commitments of $43.9 million under the bridge lending program expected to close in the next twelve months, (iv) approximately $1.2 billion in scheduled principal repayments on our unsecured notes in the next twelve months, and (v) $48.2 million in unfunded capital commitments related to our private equity investments. We plan to refinance these unsecured notes as they come due in 2026 through either cash generated from operations, the issuance of additional debt or borrowings under the Company's Credit Facility. Our cash requirements may increase over the next year as we add projects to our development pipeline and acquire additional properties. Additional potential cash requirements could result from various activities including the redemption of outstanding preferred securities, repurchases of common stock, or merger and acquisition activities, as and to the extent we determine to engage in such activities. 48 Over the long term, to the extent that our cash requirements exceed our capital resources, we believe we have a variety of possibilities to raise additional capital including issuing common or preferred securities, debt, and limited partnership interests, or entering into joint venture arrangements to acquire or develop facilities. Cash Requirements The following summarizes our expected material cash requirements, which comprise (i) contractually obligated expenditures, including payments of principal and interest, (ii) other essential expenditures, including property operating expenses, maintenance capital expenditures and dividends paid in accordance with REIT distribution requirements, and (iii) opportunistic expenditures, including acquisitions and developments and repurchases of our securities. We expect to satisfy these cash requirements through operating cash flow and opportunistic debt and equity financings. Required Debt Repayments: As of December 31, 2025, the principal outstanding on our debt totaled approximately $10.3 billion, consisting of $8.2 billion of U.S. Dollar denominated unsecured notes payable, $2.1 billion of Euro-denominated unsecured notes payable, and $1.6 million of mortgage notes payable. Approximate principal maturities and interest payments are as follows: Principal Interest Total (Amounts in Thousands) 2026 $ 1,150,138 $ 311,135 $ 1,461,273 2027 1,200,146 282,932 1,483,078 2028 1,200,129 245,183 1,445,312 2029 1,000,088 207,170 1,207,258 2030 1,297,819 175,478 1,473,297 Thereafter 4,462,000 1,449,582 5,911,582 $ 10,310,320 $ 2,671,480 $ 12,981,800 We have $500 million and $650 million of our U.S. Dollar denominated unsecured notes that mature on February 15, 2026 and November 9, 2026, respectively. We plan to repay these notes as they come due through either cash generated from operations or the issuance of additional debt, such as borrowings under the Company's Credit Facility. Capital Expenditure Requirements: Capital expenditures include general maintenance, major repairs, or replacements to elements of our facilities to keep our facilities in good operating condition and maintain their visual appeal. Capital expenditures do not include costs relating to the development of new facilities or redevelopment of existing facilities to increase their available rentable square footage. We spent $218 million of capital expenditures to maintain real estate facilities in 2025 and expect to spend approximately $175 million in 2026. In addition, we have spent $71 million and $54 million on the installation of solar panels in 2025 and 2024, respectively, and expect to spend approximately $60 million in 2026. We believe the capital spent to install solar panels and LED lights will significantly reduce electricity consumption resulting in lower utility costs. Requirement to Pay Distributions: For all periods presented herein, we have elected to be treated as a REIT, as defined in the Internal Revenue Code. For each taxable year in which we qualify for taxation as a REIT, we will not be subject to U.S. federal corporate income tax on our “REIT taxable income” (generally, taxable income subject to specified adjustments, including a deduction for dividends paid and excluding our net capital gain) that is distributed to our shareholders. We believe we have met these requirements in all periods presented herein, and we expect to continue to qualify as a REIT. Our consistent, long-term dividend policy has been to distribute our taxable income. Future quarterly distributions with respect to the common shares will continue to be determined based upon our REIT distribution requirements after taking into consideration distributions to the preferred shareholders and will be funded with cash flows from operating activities. The annual distribution requirement with respect to our preferred shares outstanding at December 31, 2025 is approximately $194.7 million per year. 49 Real Estate Investment Activities: We continue to seek to acquire additional self-storage facilities from third parties. Subsequent to December 31, 2025, we acquired or were under contract to acquire three self-storage facilities across three states with 0.2 million net rentable square feet for $20.7 million. As of December 31, 2025, we had development and expansion projects at a total cost of approximately $609.9 million. Costs incurred through December 31, 2025 were $194.3 million, with the remaining cost to complete of $415.6 million expected to be incurred primarily in the next 18 to 24 months. Some of these projects are subject to contingencies such as entitlement approval. We expect to continue to seek to add projects to maintain and increase our robust pipeline. Our ability to do so continues to be challenged by various constraints such as difficulty in finding projects that meet our risk-adjusted yield expectations and challenges in obtaining building permits for self-storage facilities in certain municipalities. Bridge loan commitments: We offer bridge loan financing to third-party self-storage owners for operating properties that we manage. As of December 31, 2025, we had unfunded loan commitments of $43.9 million expected to close in the next twelve months, subject to the satisfaction of certain conditions. Property Operating Expenses: The direct and indirect cost of our operations impose significant cash requirements. Direct operating costs include property taxes, on-site property manager payroll, repairs and maintenance, utilities, and marketing. Indirect operating costs include supervisory payroll and centralized management costs. The cash requirements from these operating costs will vary year to year based on, among other things, changes in the size of our portfolio and changes in property tax rates and assessed values, wage rates, and marketing costs in our markets. Redemption of Preferred Securities : Historically, we have taken advantage of refinancing higher coupon preferred securities with lower coupon preferred securities. In the future, we may also elect to finance the redemption of preferred securities with proceeds from the issuance of debt. As of February 12, 2026, our Series F through O of preferred securities are eligible for redemption, at our option and with 30 days’ notice. See Note 10 to our December 31, 2025 consolidated financial statements for the redemption dates of all of our series of preferred shares. Redemption of such preferred shares will depend upon many factors, including the rate at which we could issue replacement preferred securities. None of our preferred securities are redeemable at the option of the holders. Repurchases of Common Shares : Our Board has authorized a share repurchase program pursuant to which management may purchase up to 35,000,000 of our common shares on the open market or in privately negotiated transactions. From the inception of the repurchase program through February 12, 2026, we have repurchased a total of 24,448,781 common shares at an aggregate cost of approximately $879.1 million. We did not repurchase any common shares in 2025. All the repurchased shares are constructively retired and returned to an authorized and unissued status. Future levels of common share repurchases will be dependent upon our available capital, investment alternatives and the trading price of our common shares. Recent Tax Legislation Effective July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was signed into law. Certain provisions of OBBBA impact us and our shareholders. Among other changes, this legislation (i) permanently extended the 20% deduction for “qualified REIT dividends” for individuals and other non-corporate taxpayers under Section 199A of the Internal Revenue Code (“the Code”), (ii) permanently reinstates 100% bonus depreciation for certain property acquired after January 19, 2025, (iii) increased the percentage limit under the REIT asset test applicable to taxable REIT subsidiaries (“TRSs”) from 20% to 25% for taxable years beginning after December 31, 2025, and (iv) increases the base on which the 30% interest deduction limit under Section 163(j) of the Code applies by excluding depreciation, amortization and depletion from the definition of “adjusted taxable income” (i.e. based on EBITDA rather than EBIT) for taxable years beginning after December 31, 2024. 50 ITEM 7A.      Quantitative and Qualitative Disclosures about Market Risk To limit our exposure to market risk, we are capitalized primarily with preferred and common equity. Our preferred shares are redeemable at our option generally five years after issuance, but the holder has no redemption option. Our debt, which totals approximately $10.3 billion at December 31, 2025, is the only market-risk sensitive portion of our capital structure. The fair value of our debt at December 31, 2025 is approximately $9.9 billion. The table below summarizes the annual maturities of our debt, which had a weighted average effective rate of 3.2% at December 31, 2025. See Note 8 to our December 31, 2025 consolidated financial statements for further information regarding our debt. 2026 2027 2028 2029 2030 Thereafter Total (Amounts in Thousands) Debt $ 1,150,138  $ 1,200,146  $ 1,200,129  $ 1,000,088  $ 1,297,819  $ 4,462,000  $ 10,310,320 At December 31, 2025, we have three separate interest rate swaps with a notional amount of $475 million which converted our $475 million principal amount of 4.375% fixed rate senior unsecured notes due July 2030 into a floating rate instrument with an interest rate based on a SOFR index. See Note 8 to our December 31, 2025 consolidated financial statements for further information regarding our swaps. We have foreign currency exposure at December 31, 2025 related to (i) our investment in Shurgard, with a book value of $388.6 million, and a fair value of $1.2 billion based upon the closing price of Shurgard’s stock on December 31, 2025, and (ii) €1.8 billion ($2.1 billion) of Euro-denominated unsecured notes payable, providing a natural hedge against the fair value of our investment in Shurgard. ITEM 8.     Financial Statements and Supplementary Data The financial statements and supplementary data appearing on pages F-3 to F-39 are incorporated herein by reference. ITEM 9.     Changes in and Disagreements With Accountants on Accounting and Financial Disclosure Not applicable. ITEM 9A.     Controls and Procedures Conclusion Regarding the Effectiveness of Disclosure Controls and Procedures We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in reports we file and submit under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), is recorded, processed, summarized, and reported within the time periods specified in accordance with SEC guidelines, and that such information is communicated to our management, including our Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosure based on the definition “of disclosure controls and procedures” in Rules 13a-15(e) and 15d-15(e) of the Exchange Act. In designing and evaluating the disclosure controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures in reaching that level of reasonable assurance. We also have an investment in an unconsolidated real estate entity, and, because we do not control this entity, our disclosure controls and procedures with respect to such entity are substantially more limited than those we maintain with respect to our consolidated subsidiaries. As of December 31, 2025, we carried out an evaluation, under the supervision and with the participation of management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act). Based on that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective as of December 31, 2025, at a reasonable assurance level. 51 Management’s Report on Internal Control Over Financial Reporting Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act. Under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, we conducted an evaluation of the effectiveness of our internal control over financial reporting based on the framework in Internal Control-Integrated Framework issued by the Committee on Sponsoring Organizations of the Treadway Commission (2013 Framework). Based on our evaluation under the framework in Internal Control-Integrated Framework , our management concluded that our internal control over financial reporting was effective as of December 31, 2025. The effectiveness of internal control over financial reporting as of December 31, 2025, has been audited by Ernst & Young LLP, an independent registered public accounting firm. Ernst & Young LLP’s report on our internal control over financial reporting appears below. Changes in Internal Control Over Financial Reporting There have not been any changes in our internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the fourth quarter of 2025 to which this report relates that have materially affected, or are reasonable likely to materially affect, our internal control over financial reporting. 52 Report of Independent Registered Public Accounting Firm To the Shareholders and the Board of Trustees of Public Storage Opinion on Internal Control Over Financial Reporting We have audited Public Storage’s internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria). In our opinion, Public Storage (the Company) maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025, based on the COSO criteria. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of December 31, 2025 and 2024, the related consolidated statements of income, comprehensive income, equity and cash flows for each of the three years in the period ended December 31, 2025 and the related notes and financial statement schedule listed in the Index at Item 15(a) and our report dated February 12, 2026 expressed an unqualified opinion thereon. Basis for Opinion The Company’s management is responsible for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management’s Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Definition and Limitations of Internal Control Over Financial Reporting A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. /s/ Ernst & Young LLP Los Angeles, California February 12, 2026 53 ITEM 9B.     Other Information During the three months ended December 31, 2025, no trustee or officer of the Company, nor the Company itself, adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408(a) of Regulation S-K. ITEM 9C.     Disclosure Regarding Foreign Jurisdictions that Prevent Inspections Not applicable. 54 PART III ITEM 10.     Trustees, Executive Officers and Corporate Governance The following is a biographical summary of the current executive officers of the Company: Joseph D. Russell, Jr. , age 66, has served as Chief Executive Officer since January 1, 2019, and as President since July 2016. Prior to joining Public Storage, Mr. Russell was President and Chief Executive Officer of PS Business Parks, Inc. from August 2002 to July 2016. Mr. Russell has also served as a trustee of Public Storage since January 1, 2019. On February 10, 2026, Mr. Russell notified the Board of his intention to retire from his positions as President, Chief Executive Officer and trustee, effective as of March 31, 2026. H. Thomas Boyle , age 42, has served as Chief Financial Officer since January 1, 2019 and Chief Investment Officer since January 1, 2023. Previously, Mr. Boyle was Vice President and Chief Financial Officer, Operations, from November 2016, when he joined the Company, until January 2019. Prior to joining Public Storage, Mr. Boyle served in roles of increasing responsibilities with Morgan Stanley since 2005, from analyst to his last role as Executive Director, Equity and Debt Capital Markets. Mr. Boyle has served as a director of Shurgard and a member of Shurgard’s Real Estate Investment Committee since May 2023. On February 10, 2026, the Board appointed Mr. Boyle as Chief Executive Officer and trustee, effective April 1, 2026. Natalia N. Johnson , age 48, has served as Chief Administrative Officer since August 4, 2020. Previously, Ms. Johnson was Senior Vice President, Chief Human Resources Officer from April 2018 until August 2020, and prior to that was Senior Vice President of Human Resources, a position she held since joining the Company in July 2016. Prior to joining Public Storage, Ms. Johnson held a variety of senior management positions at Bank of America, including Chief Operating Officer for Mortgage Technology and Human Resources Executive for the Mortgage Business, and worked for Coca-Cola Andina and San Cristόbal Insurance. Ms. Johnson has served as a director of WillScot Mobile Mini Holdings Corp. since August 2023 and is a member of the Audit committee and Chair of the Compensation committees. On February 10, 2026, the Board appointed Ms. Johnson as President, Chief Digital & Transformation Officer, effective February 16, 2026. Chris C. Sambar , age 52, has served as our Chief Operating Officer since October 14, 2024. Prior to joining the Company, Mr. Sambar held various roles of increasing responsibility at AT&T Communications since 2002, most recently as President, AT&T Network from August 2022 to October 2024 and as Executive Vice President, AT&T Network from September 2019 to August 2022. Mr. Sambar served as a director of AST SpaceMobile, Inc. (NASDAQ: ASTS) from June 2024 to January 2025. On February 10, 2026, the Board appointed Mr. Sambar as President, Chief Operating Officer, effective February 16, 2026 Nathaniel A. Vitan , age 52, has served as Senior Vice President, Chief Legal Officer and Corporate Secretary since April 20, 2019. Previously, Mr. Vitan was Vice President and Chief Counsel–Litigation and Operations from June 2016, when he joined the Company, until April 2019. Prior to joining Public Storage, Mr. Vitan was Assistant General Counsel for Altria Client Services LLC from 2008 to 2016, and before then was a Trial and Appellate Practice attorney at Latham & Watkins LLP. Other information required by this item is hereby incorporated by reference to the material appearing in the Company’s Notice and Proxy Statement for its 2026 Annual Meeting of Shareholders, to be filed pursuant to Regulation 14A under the Exchange Act. ITEM 11.     Executive Compensation The information required by this item is hereby incorporated by reference to the material appearing in the Company’s Notice and Proxy Statement for its 2026 Annual Meeting of Shareholders, to be filed pursuant to Regulation 14A under the Exchange Act. 55 ITEM 12.     Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters The following table sets forth information, as of December 31, 2025 on the Company’s equity compensation plans: Equity Compensation Plan Information Plan Category Number of securities to be issued upon exercise or conversion of outstanding options, AO LTIP units, warrants, and rights Weighted-average exercise or conversion price of outstanding options, AO LITP units, warrants, and rights Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (A)) (A) (B) (C) Equity compensation plans approved by security holders (a) 3,154,458 (b) $ 237.34 (c) 3,716,763 Equity compensation plans not approved by security holders (d) — — — Total 3,154,458 (b) $ 237.34 (c) 3,716,763 a) The Company’s equity compensation plans are described more fully in Note 12 to the December 31, 2025 financial statements. All plans have been approved by the Company’s shareholders. b) Includes (i) stock options and AO LTIP units to purchase 2,692,007 common shares or to convert to vested LTIP units, including performance-based stock options and AO LTIP units as to which the performance period had not ended or the Compensation and Human Capital Committee had not certified performance as of December 31, 2025, which stock options and AO LTIP units are reflected in the table above assuming a maximum payout, (ii) 450,777 restricted share units and LTIP units, including performance-based restricted share units and LTIP units as to which the performance period had not ended as of December 31, 2025, which restricted share units and LTIP units are reflected in the table above assuming a maximum payout, and (iii) 11,674 fully vested deferred share units. All restricted share and LTIP units, if and when vested, and all deferred share units will be settled in common shares or into common units of PSA OP on a one-for-one basis. c) Represents the weighted average exercise or conversion price of stock options or AO LTIP units to purchase 2,215,477 common shares or to convert to vested LTIP units, excluding the performance-based stock options and AO LTIP units described in footnote (b), above. The 450,777 restricted share or LTIP units would vest for no consideration. d) There were no securities outstanding or available for future issuance under equity compensation plans not approved by the Company’s shareholders. Other information required by this item is hereby incorporated by reference to the material appearing in the Company’s Notice and Proxy Statement for its 2026 Annual Meeting of Shareholders, to be filed pursuant to Regulation 14A under the Exchange Act. ITEM 13.      Certain Relationships and Related Transactions and Trustee Independence The information required by this item is hereby incorporated by reference to the material appearing in the Company’s Notice and Proxy Statement for its 2026 Annual Meeting of Shareholders, to be filed pursuant to Regulation 14A under the Exchange Act. ITEM 14.     Principal Accountant Fees and Services The information required by this item is hereby incorporated by reference to the material appearing in the Company’s Notice and Proxy Statement for its 2026 Annual Meeting of Shareholders, to be filed pursuant to Regulation 14A under the Exchange Act of 1934. 56 PART IV ITEM 15.     Exhibits and Financial Statement Schedules a.    1.    Financial Statements The financial statements listed in the accompanying Index to Consolidated Financial Statements and Schedules hereof are filed as part of this report. 2. Financial Statement Schedules The financial statements schedules listed in the accompanying Index to Consolidated Financial Statements and Schedules are filed as part of this report. 3. Exhibits See Index to Exhibits contained herein. b. Exhibits: See Index to Exhibits contained herein. c. Financial Statement Schedules Not applicable. 57 PUBLIC STORAGE INDEX TO EXHIBITS (1) (Items 15(a)(3) and 15(c)) 2.1 Agreement and Plan of Merger, dated August 2, 2023, by and among Old PSA, New PSA and Merger Sub. Filed as Exhibit 2.1 to the Company’s Current Report on For 8-K dated August 2, 2023 and incorporated herein by reference. 3.1 Amended and Restated Declaration of Trust of Public Storage, a Maryland real estate investment trust, dated August 14, 2023. Filed as Exhibit 3.1 to the Company’s Current Report on Form 8-K dated August 14, 2023 and incorporated herein by reference. 3.2 Amended and Restated Bylaws of Public Storage. Filed as Exhibit 3.1 to the Company’s Current Report on Form 8-K dated November 13, 2023 and incorporated herein by reference. 3.3 Articles of Merger. Filed as Exhibit 3.3 to the Company’s Current Report on Form 8-K dated August 14, 2023 and incorporated herein by reference. 3.4 Articles Supplementary of Public Storage, dated August 2, 2023. Filed as Exhibit 3.1 to the Company’s Current Report on Form 8-K dated August 2, 2023 and incorporated herein by reference. 4.1 Description of the Company’s Securities Registered Pursuant to Section 12 of the Securities Exchange Act of 1934. Filed as Exhibit 4.1 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 and incorporated herein by reference. 4.2 Master Deposit Agreement, dated as of May 31, 2007. Filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K dated June 6, 2007 and incorporated herein by reference. 4.3 Amended and Restated Indenture, dated as of August 14, 2023, among Public Storage, Public Storage Operating Company and Computershare Trust Company, N.A. (as successor to Wells Fargo Bank, National Association), as trustee. Filed as Exhibit A to Exhibit 4.1 to the Company’s Current Report on Form 8-K dated August 14, 2023 and incorporated herein by reference. 4.4 First Supplemental Indenture, dated as of September 18, 2017, between Public Storage and Wells Fargo Bank, National Association, as trustee, including the form of Global Note representing the 2022 Notes and the form of Global Note representing the 2027 Notes. Filed as Exhibit 4.2 to the Company’s Current Report on Form 8-K dated September 18, 2017 and incorporated herein by reference. 4.5 Second Supplemental Indenture, dated as of April 12, 2019, between Public Storage and Wells Fargo Bank, National Association, as trustee, including the form of Global Note representing the 2029 Notes. Filed as Exhibit 4.2 to the Company’s Current Report on Form 8-K dated April 12, 2019 and incorporated herein by reference. 4.6 Third Supplemental Indenture, dated as of January 24, 2020, between Public Storage and Wells Fargo Bank, National Association, as trustee, including the form of Global Note representing the 2032 Notes. Filed as Exhibit 4.2 to the Company’s Current Report on Form 8-K dated January 24, 2020 and incorporated herein by reference. 4.7 Fourth Supplemental Indenture, dated as of January 19, 2021, between Public Storage and Wells Fargo Bank, National Association, as trustee, including the form of Global Note representing the 2026 Notes. Filed as Exhibit 4.2 to the Company’s Current Report on Form 8-K dated January 14, 2021 and incorporated herein by reference. 4.8 Sixth Supplemental Indenture, dated as of April 23, 2021, between Public Storage and Wells Fargo Bank, National Association, as trustee, including the form of Global Note representing the 2028 Notes. Filed as Exhibit 4.3 to the Company’s Current Report on Form 8-K dated April 23, 2021 and incorporated herein by reference. 4.9 Seventh Supplemental Indenture, dated as of April 23, 2021, between Public Storage and Wells Fargo Bank, National Association, as trustee, including the form of Global Note representing the 2031 Notes. Filed as Exhibit 4.4 to the Company’s Current Report on Form 8-K dated April 23, 2021 and incorporated herein by reference. 58 4.10 Eighth Supplemental Indenture, dated as of September 9, 2021, between Public Storage and Wells Fargo Bank, National Association, as trustee, including the form of Global Note representing the 2030 Notes. Filed as Exhibit 4.2 to the Company’s Current Report on Form 8-K dated September 9, 2021 and incorporated herein by reference. 4.11 Ninth Supplemental Indenture, dated as of November 9, 2021, between Public Storage and Computershare Trust Company, N.A. (as successor to Wells Fargo Bank, National Association), as trustee, including the form of Global Note representing the 2026 Notes. Filed as Exhibit 4.2 to the Company’s Current Report on Form 8-K dated November 9, 2021 and incorporated herein by reference. 4.12 Tenth Supplemental Indenture, dated as of November 9, 2021, between Public Storage and Computershare Trust Company, N.A. (as successor to Wells Fargo Bank, National Association), as trustee, including the form of Global Note representing the 2028 Notes. Filed as Exhibit 4.3 to the Company’s Current Report on Form 8-K dated November 9, 2021 and incorporated herein by reference. 4.13 Eleventh Supplemental Indenture, dated as of November 9, 2021, between Public Storage and Computershare Trust Company, N.A. (as successor to Wells Fargo Bank, National Association), as trustee, including the form of Global Note representing the 2031 Notes. Filed as Exhibit 4.4 to the Company’s Current Report on Form 8-K dated November 9, 2021 and incorporated herein by reference. 4.14 Twelfth Supplemental Indenture, dated as of July 26, 2023, between Public Storage and Computershare Trust Company, N.A. (as successor to Wells Fargo Bank, National Association), as trustee, including the form of Global Note representing the 2033 Notes. Filed as Exhibit 4.2 to the Company’s Current Report on Form 8-K dated July 26, 2023 and incorporated herein by reference. 4.15 Thirteenth Supplemental Indenture, dated as of July 26, 2023, between Public Storage and Computershare Trust Company, N.A. (as successor to Wells Fargo Bank, National Association), as trustee, including the form of Global Note representing the 2029 Notes. Filed as Exhibit 4.3 to the Company’s Current Report on Form 8-K dated July 26, 2023 and incorporated herein by reference. 4.16 Fourteenth Supplemental Indenture, dated as of July 26, 2023, between Public Storage and Computershare Trust Company, N.A. (as successor to Wells Fargo Bank, National Association), as trustee, including the form of Global Note representing the 2033 Notes. Filed as Exhibit 4.4 to the Company’s Current Report on Form 8-K dated July 26, 2023 and incorporated herein by reference. 4.17 Fifteenth Supplemental Indenture, dated as of July 26, 2023, between Public Storage and Computershare Trust Company, N.A. (as successor to Wells Fargo Bank, National Association), as trustee, including the form of Global Note representing the 2053 Notes. Filed as Exhibit 4.5 to the Company’s Current Report on Form 8-K dated July 26, 2023 and incorporated herein by reference. 4.18 Sixteenth Supplemental Indenture, dated August 14, 2023, by and among Public Storage Operating Company, Public Storage and Computershare Trust Company, N.A. Filed as Exhibit 4.1 to the Company’s Current Report on Form 8-K dated August 14, 2023 and incorporated herein by reference. 4.19 Seventeenth Supplemental Indenture, dated as of April 16, 2024, among Public Storage Operating Company, Public Storage and Computershare Trust Company, N.A. Filed as Exhibit 4.2 to the Company’s Current Report on Form 8-K dated April 11, 2024 and incorporated herein by reference. 4.20 Eighteenth Supplemental Indenture, dated as of April 16, 2024, among Public Storage Operating Company, Public Storage, and Computershare Trust Company, N.A. Filed as Exhibit 4.3 to the Company’s Current Report on Form 8-K dated April 11, 2024 and incorporated herein by reference. 4.21 Nineteenth Supplemental Indenture, dated as of June 30, 2025, among Public Storage Operating Company, Public Storage and Computershare Trust Company, N.A. (as successor to Wells Fargo Bank, National Association), as trustee. Filed as Exhibit 4.2 to the Company’s Current Report on Form 8-K dated June 30, 2025 and incorporated herein by reference. 4.22 Twentieth Supplemental Indenture, dated as of June 30, 2025, among Public Storage Operating Company, Public Storage, and Computershare Trust Company, N.A. (as successor to Wells Fargo Bank, National Association), as trustee. Filed as Exhibit 4.3 to the Company’s Current Report on Form 8-K dated June 30, 2025 and incorporated herein by reference. 4.23 Twenty-First Supplemental Indenture, dated as of October 3, 2025, among Public Storage Operating Company, Public Storage and Computershare Trust Company, N.A. (as successor to Wells Fargo Bank, National Association, as trustee). Filed as Exhibit 4.2 to the Company’s Current Report on Form 8-K dated October 3, 2025 and incorporated herein by reference. 59 10.1 Amended and Restated Agreement of Limited Partnership of Public Storage OP, L.P., dated as of February 14, 2024. Filed as Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2024 and incorporated herein by reference. 10.2 Note Purchase Agreement, dated as of April 11, 2024, by and among Public Storage Operating Company and the Purchasers party thereto. Filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K dated April 11, 2024 and incorporated herein by reference. 10.3 Third Amended and Restated Credit Agreement, dated as of June 12, 2023, by and among the Company, the financial institutions party thereto, Wells Fargo Securities, LLC, BofA Securities, Inc. and JPMorgan Chase Bank, N.A., as Joint Bookrunners, Wells Fargo Securities, LLC, BofA Securities, Inc., JPMorgan Chase Bank, N.A., The Bank of Nova Scotia, BNP Paribas and Sumitomo Mitsui Banking Corporation, as Joint Lead Arrangers, Wells Fargo Bank, National Association, as Agent, Bank of America, N.A. and JPMorgan Chase Bank, N.A., as Co-Syndication Agents, and PNC Bank, National Association, TD Bank, N.A., The Bank of Nova Scotia, BNP Paribas and Sumitomo Mitsui Banking Corporation, as Documentation Agents. Filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K dated June 12, 2023 and incorporated herein by reference. 10.4 Parent Guarantee, dated as of August 14, 2023, by Public Storage. Filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K dated August 14, 2023 and incorporated herein by reference. 10.5 Form of Trustee and Officer Indemnification Agreement. Filed as Exhibit 10.19 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 and incorporated herein by reference. 10.6* Public Storage 2007 Equity and Performance-Based Incentive Compensation Plan, as Amended (2007 Plan). Filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K dated May 1, 2014 and incorporated herein by reference. 10.7* Public Storage 2016 Equity and Performance-Based Incentive Compensation Plan (2016 Plan). Filed as Exhibit 10.6 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 and incorporated herein by reference. 10.8* Amended and Restated Public Storage 2021 Equity and Performance-Based Incentive Compensation Plan. Filed as Appendix B to the Company’s 2025 Proxy Statement filed on March 28, 2025 and incorporated herein by reference. 10.9* Form of 2007 Plan Restricted Stock Unit Agreement. Filed as Exhibit 10.11 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 and incorporated herein by reference. 10.10* Form of 2007 Plan Restricted Stock Unit Agreement (deferral of receipt of shares). Filed as Exhibit 10.12 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 and incorporated herein by reference . 10.11* Form of 2007 Plan Stock Option Agreement. Filed as Exhibit 10.13 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 and incorporated herein by reference. 10.12* Form of 2007 Plan Trustee Stock Option Agreement. Filed as Exhibit 10.14 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 and incorporated herein by reference. 10.13* Form of 2016 Plan Restricted Stock Unit Agreement (deferral of receipt of shares). Filed as Exhibit 10.16 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 and incorporated herein by reference. 10.14* Form of 2016 Plan Trustee Non-Qualified Stock Option Agreement. Filed as Exhibit 10.18 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 and incorporated herein by reference. 10.15* Form of 2016 Plan Restricted Stock Unit Agreement (deferral of receipt of shares) (2018). Filed as Exhibit 10.26 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 and incorporated herein by reference. 10.16* Form of 2016 Plan Trustee Deferred Stock Unit Agreement (2018). Filed as Exhibit 10.29 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 and incorporated herein by reference. 10.17* Form of 2016 Plan Executive Restricted Stock Unit Agreement (2018). Filed as Exhibit 10.30 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 and incorporated herein by reference. 60 10.18* Form of 2016 Employee Stock Unit Agreement (2020). Filed as Exhibit 10.2 to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2020 and incorporated herein by reference. 10.19* Form of 2016 Plan Employee Non-Qualified Stock Option Agreement (2020). Filed as Exhibit 10.4 to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2020 and incorporated herein by reference. 10.20* Form of 2016 Plan Performance-Based Non-Qualified Stock Option Agreement (2020). Filed as Exhibit 10.5 to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2020 and incorporated herein by reference. 10.21* Form of 2021 Plan Employee Stock Unit Agreement (2021). Filed as Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2021 and incorporated herein by reference. 10.22* Form of 2021 Plan Employee Stock Unit Agreement (2022). Filed as Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2022 and incorporated herein by reference. 10.23* Form of 2021 Plan Trustee Non-Qualified Stock Option Agreement. Filed as Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2022 and incorporated herein by reference. 10.24* Form of 2021 Plan Performance-Based Non-Qualified Stock Option Agreement (2022). Filed as Exhibit 10.2 to the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2022 and incorporated herein by reference. 10.25* Form of 2021 Plan Performance-Based Stock Unit Agreement (2022). Filed as Exhibit 10.3 to the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2022 and incorporated herein by reference. 10.26* Form of Time-Based Public Storage OP, L.P. LTIP Unit Agreement. Filed as Exhibit 10.3 to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2024 and incorporated herein by reference. 10.27* Form of Performance-Based Public Storage OP, L.P. LTIP Unit Agreement. Filed as Exhibit 10.4 to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2024 and incorporated herein by reference. 10.28* Form of Time-Based Public Storage OP, L.P. AO LTIP Unit Agreement. Filed as Exhibit 10.5 to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2024 and incorporated herein by reference. 10.29* Form of Performance-Based Public Storage OP, L.P. AO LTIP Unit Agreement. Filed as Exhibit 10.6 to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2024 and incorporated herein by reference. 10.30* Form of Time-Based Public Storage OP, L.P. AO LTIP Unit Agreement (Trustees). Filed as Exhibit 10.2 to the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2024 and incorporated herein by reference. 10.31* Form of 2021 Plan Trustee Non-Qualified Stock Option Agreement (2024). Filed as Exhibit 10.3 to the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2024 and incorporated herein by reference. 19.1 Public Storage Securities Trading Policy. Filed as Exhibit 19.1 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 and incorporated herein by reference. 21 Listing of Subsidiaries. Filed herewith. 23.1 Consent of Ernst & Young LLP. Filed herewith. 31.1 Rule 13a – 14(a) Certification. Filed herewith. 31.2 Rule 13a – 14(a) Certification. Filed herewith. 32 Section 1350 Certifications. Filed herewith. 61 97.1 Policy Relating to Recovery of Erroneously Awarded Compensation. Filed as Exhibit 97.1 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 and incorporated herein by reference. 101 .INS Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document) 101 .SCH Inline XBRL Taxonomy Extension Schema. Filed herewith. 101 .CAL Inline XBRL Taxonomy Extension Calculation Linkbase. Filed herewith. 101 .DEF Inline XBRL Taxonomy Extension Definition Linkbase. Filed herewith. 101 .LAB Inline XBRL Taxonomy Extension Label Linkbase. Filed herewith. 101 .PRE Inline XBRL Taxonomy Extension Presentation Link. Filed herewith. 104 Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101) _ (1) SEC File No. 001-33519 unless otherwise indicated.

• Denotes management compensatory plan agreement or arrangement. 62 SIGNATURES Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. PUBLIC STORAGE Date: February 12, 2026 By: /s/ Joseph D. Russell, Jr. Joseph D. Russell, Jr., Chief Executive Officer, President and Trustee Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated. Signature Title Date /s/ Joseph D. Russell, Jr. Chief Executive Officer, President and Trustee (principal executive officer) February 12, 2026 Joseph D. Russell, Jr. /s/ H. Thomas Boyle Chief Financial and Investment Officer (principal financial officer) February 12, 2026 H. Thomas Boyle /s/ Ronald L. Havner, Jr. Chairman of the Board February 12, 2026 Ronald L. Havner, Jr. /s/ Tamara Hughes Gustavson Trustee February 12, 2026 Tamara Hughes Gustavson /s/ Maria R. Hawthorne Trustee February 12, 2026 Maria R. Hawthorne /s/ Shankh S. Mitra Trustee February 12, 2026 Shankh S. Mitra /s/ Rebecca Owen Trustee February 12, 2026 Rebecca Owen /s/ Luke Petherbridge Trustee February 12, 2026 Luke Petherbridge /s/ Kristy M. Pipes Trustee February 12, 2026 Kristy M. Pipes /s/ Avedick B. Poladian Trustee February 12, 2026 Avedick B. Poladian /s/ John Reyes Trustee February 12, 2026 John Reyes 63 Signature Title Date /s/ Tariq M. Shaukat Trustee February 12, 2026 Tariq M. Shaukat /s/ Ronald P. Spogli Trustee February 12, 2026 Ronald P. Spogli /s/ Paul S. Williams Trustee February 12, 2026 Paul S. Williams 64 PUBLIC STORAGE INDEX TO CONSOLIDATED FINANCIAL STATEMENTS AND SCHEDULES (Item 15 (a)) Page References Report of Independent Registered Public Accounting Firm Auditor name: Ernst & Young LLP ; Firm ID: ( 42 ); Auditor location: Los Angeles, California F- 1 Consolidated Balance Sheets as of December 31, 2025 and 2024 F -3 For the years ended December 31, 2025, 2024, and 2023: Consolidated Statements of Income F- 4 Consolidated Statements of Comprehensive Income F- 5 Consolidated Statements of Equity F- 6 Consolidated Statements of Cash Flows F- 8 Notes to Consolidated Financial Statements F- 10 Schedule: III – Real Estate and Accumulated Depreciation F- 37 All other schedules have been omitted since the required information is not present or not present in amounts sufficient to require submission of the schedule, or because the information required is included in the consolidated financial statements or notes thereto. 65 Report of Independent Registered Public Accounting Firm To the Shareholders and the Board of Trustees of Public Storage Opinion on the Financial Statements We have audited the accompanying consolidated balance sheets of Public Storage (the Company) as of December 31, 2025 and 2024, the related consolidated statements of income, comprehensive income, equity and cash flows for each of the three years in the period ended December 31, 2025 , and the related notes and financial statement schedule listed in the Index at Item 15(a) (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with U.S. generally accepted accounting principles. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control–Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated February 12, 2026 expressed an unqualified opinion thereon. Basis for Opinion These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion. Critical Audit Matter The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates. F-1 Purchase Price Allocation Description of the Matter For the year ended December 31, 2025, the Company completed the acquisition of 87 self-storage facilities for a total purchase price of $945.6 million. As further discussed in Notes 2 and 3 of the consolidated financial statements, the transactions were accounted for as asset acquisitions, and the purchase price was allocated based on a relative fair value of assets acquired and liabilities assumed, which consisted principally of land and buildings. Auditing the accounting for the Company’s 2025 acquisitions of self-storage facilities was subjective because the Company must exercise a high level of management judgment in determining the estimated fair value of land and buildings. The estimated fair value of land is based upon observable transactions involving comparable land in similar locations, as adjusted for location quality, parcel size and date of sale associated with the acquired facilities. Determining the fair value of acquired land was difficult due to the judgment utilized by management in making adjustments to the observable transaction data used in the estimate, particularly when there is a lack of recent comparable land market data. The estimated fair value of the acquired buildings was based upon the income approach, which included estimating the fair value of hypothetical vacant acquired buildings and adjusting for the estimated fair value of land. Determining the fair value of the acquired buildings was challenging due to the judgment utilized by management in determining the assumptions utilized in the income approach, including future stabilized operating cash flows and capitalization rate. How We Addressed the Matter in Our Audit We obtained an understanding, evaluated the design, and tested the operating effectiveness of controls over management’s accounting for acquired self-storage facilities, including controls over the review of assumptions underlying the purchase price allocation and accuracy of the underlying data used. For example, we tested controls over the determination of the estimated fair values of the land and buildings, including the controls over the review of the valuation models and the significant assumptions used to develop such estimates. For the 2025 acquisitions of self-storage facilities described above, our procedures included, but were not limited to, reading the purchase and sale agreements and other closing documents, evaluating whether the Company had appropriately determined the transaction was an asset acquisition or business combination and performing a sensitivity analysis to evaluate the impact on the Company’s financial statements resulting from changes in allocated land and building values. For certain of these asset acquisitions, we also evaluated the methods and significant assumptions used by the Company and tested the completeness and accuracy of the underlying data supporting the significant assumptions and estimates. Additionally, for certain of these asset acquisitions, we involved our valuation specialists to assist in the assessment of the methodology utilized by the Company and to perform corroborative analyses to assess whether the significant assumptions used in the valuation and the estimated fair values were supported by observable market data. /s/ Ernst & Young LLP We have served as the Company's auditor since 1980. Los Angeles, California February 12, 2026 F-2 PUBLIC STORAGE CONSOLIDATED BALANCE SHEETS (Amounts in thousands, except share data) December 31, 2025 December 31, 2024 ASSETS Cash and equivalents $ 318,095   $ 447,416 Real estate facilities, at cost: Land 5,952,072   5,711,685 Buildings 24,126,185   22,767,053 Total land and buildings, at cost 30,078,257   28,478,738 Accumulated depreciation ( 11,468,054 ) ( 10,426,186 ) Total land and buildings, net 18,610,203   18,052,552 Construction in process 194,355   308,101 Total real estate facilities, net 18,804,558   18,360,653 Investment in unconsolidated real estate entity 388,586   382,490 Goodwill and other intangible assets, net 251,613   282,187 Notes receivable 142,108   9,976 Other assets 303,644   272,212 Total assets $ 20,208,604   $ 19,754,934 LIABILITIES AND EQUITY Notes payable $ 10,253,881   $ 9,353,034 Accrued and other liabilities 612,889   588,248 Total liabilities 10,866,770   9,941,282 Commitments and contingencies (Note 16) Equity: Public Storage shareholders’ equity: Preferred Shares, $ 0.01 par value, 100,000,000 shares authorized, 174,000 shares issued (in series) and outstanding, ( 174,000 shares at December 31, 2024) at liquidation preference 4,350,000   4,350,000 Common Shares, $ 0.10 par value, 650,000,000 shares authorized, 175,500,243 shares issued ( 175,408,393 shares at December 31, 2024) 17,550   17,541 Paid-in capital 6,147,650   6,116,113 Accumulated deficit ( 1,219,273 ) ( 699,083 ) Accumulated other comprehensive loss ( 47,799 ) ( 71,965 ) Total Public Storage shareholders’ equity 9,248,128   9,712,606 Noncontrolling interests 93,706   101,046 Total equity 9,341,834   9,813,652 Total liabilities and equity $ 20,208,604   $ 19,754,934 See accompanying notes. F-3 PUBLIC STORAGE CONSOLIDATED STATEMENTS OF INCOME (Amounts in thousands, except per share amounts) Year Ended December 31, 2025 2024 2023 Revenues: Self-storage facilities $ 4,489,413   $ 4,395,993   $ 4,259,613 Ancillary operations 334,700   299,623   258,077 Total revenues 4,824,113   4,695,616   4,517,690 Expenses: Self-storage cost of operations 1,177,038   1,136,720   1,061,950 Ancillary cost of operations 132,937   121,281   85,996 Depreciation and amortization 1,151,840   1,129,766   970,056 Real estate acquisition and development expense 19,550   15,506   26,451 General and administrative 106,682   106,677   80,632 Interest expense 304,495   287,401   201,132 Total expenses 2,892,542   2,797,351   2,426,217 Other increases (decreases) to net income: Interest and other income 63,099   67,212   85,590 Equity in earnings (loss) of unconsolidated real estate entity 9,604   19,821   27,897 Foreign currency exchange gain (loss) ( 215,583 ) 102,244   ( 51,197 ) Gain (Loss) on sale of real estate 1,113   1,537   17,178 Income before income taxes 1,789,804   2,089,079   2,170,941 Income tax (provision) benefit 7,228   ( 4,669 ) ( 10,821 ) Net income 1,797,032   2,084,410   2,160,120 Allocation to noncontrolling interests ( 12,684 ) ( 12,399 ) ( 11,793 ) Net income allocable to Public Storage shareholders 1,784,348   2,072,011   2,148,327 Allocation of net income to: Preferred shareholders ( 194,703 ) ( 194,703 ) ( 194,703 ) Restricted share units and unvested LTIP units ( 4,060 ) ( 4,623 ) ( 4,883 ) Net income allocable to common shareholders $ 1,585,585   $ 1,872,685   $ 1,948,741 Net income per common share: Basic $ 9.04   $ 10.68   $ 11.11 Diluted $ 9.01   $ 10.64   $ 11.06 Basic weighted average common shares outstanding 175,447   175,351   175,472 Diluted weighted average common shares outstanding 175,902   176,038   176,143 See accompanying notes. F-4 PUBLIC STORAGE CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Amounts in thousands) Year Ended December 31, 2025 2024 2023 Net income $ 1,797,032   $ 2,084,410   $ 2,160,120 Foreign currency translation gain (loss) on investment in Shurgard 24,214   ( 4,739 ) 13,078 Total comprehensive income 1,821,246   2,079,671   2,173,198 Allocation to noncontrolling interests ( 12,732 ) ( 12,386 ) ( 11,793 ) Comprehensive income allocable to Public Storage shareholders $ 1,808,514   $ 2,067,285   $ 2,161,405 See accompanying notes. F-5 PUBLIC STORAGE CONSOLIDATED STATEMENTS OF EQUITY (Amounts in thousands, except share and per share amounts) Cumulative Preferred Shares Common Shares Paid-in Capital Accumulated Deficit Accumulated Other Comprehensive Loss Total Public Storage Shareholders' Equity Noncontrolling Interests Total Equity Balances at December 31, 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 ( 405,059 shares) (Note 12) —  40   53,346   —  —  53,386   —  53,386 Taxes withheld upon net share settlement of restricted share units (Note 12) —  —  ( 13,950 ) —  —  ( 13,950 ) —  ( 13,950 ) Share-based compensation expense (Note 12) —  —  44,941   —  —  44,941   —  44,941 Contributions by noncontrolling interests —  —  —  —  —  —  3,203   3,203 Net income —  —  —  2,160,120   —  2,160,120   —  2,160,120 Net income allocated to noncontrolling interests —  —  —  ( 11,793 ) —  ( 11,793 ) 11,793   — Distributions to: Preferred shareholders (Note 10) —  —  —  ( 194,703 ) —  ( 194,703 ) —  ( 194,703 ) Noncontrolling interests —  —  —  —  —  —  ( 14,627 ) ( 14,627 ) Common shareholders and restricted share unitholders ($ 12.00 per share/unit) (Note 10) —  —  —  ( 2,111,303 ) —  ( 2,111,303 ) —  ( 2,111,303 ) Other comprehensive income (loss) —  —  —  —  13,078   13,078   —  13,078 Balance 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 ( 184,390 shares) (Note 10) —   18   60,303   —  —  60,321   —  60,321 Issuance of common shares in connection with share-based compensation ( 280,141 shares) (Note 12) —  29   47,382   —  —  47,411   —  47,411 Taxes withheld upon net share settlement of restricted share units (Note 12) —  —  ( 12,667 ) —  —  ( 12,667 ) —  ( 12,667 ) Share-based compensation expense (Note 12) —  —  49,317   —  —  49,317   —  49,317 Repurchase of common shares ( 726,865 shares) (Note 10) —  ( 73 ) —  ( 199,927 ) —  ( 200,000 ) —  ( 200,000 ) Acquisition of noncontrolling interests —  —  ( 1,602 ) —  —  ( 1,602 ) 11   ( 1,591 ) Contributions by noncontrolling interests —  —  —  —  —  —  2,938   2,938 Net income —  —  —  2,084,410   —  2,084,410   —  2,084,410 Net income allocated to noncontrolling interests —  —  —  ( 12,399 ) —  ( 12,399 ) 12,399   — Reallocation of equity —  —  ( 7,380 ) —  —  ( 7,380 ) 7,380   — Distributions to: Preferred shareholders (Note 10) —  —  —  ( 194,703 ) —  ( 194,703 ) —  ( 194,703 ) Noncontrolling interests —  —  —  —  —  —  ( 15,437 ) ( 15,437 ) See accompanying notes. F-6 Cumulative Preferred Shares Common Shares Paid-in Capital Accumulated Deficit Accumulated Other Comprehensive Loss Total Public Storage Shareholders' Equity Noncontrolling Interests Total Equity Common shareholders, restricted share unitholders and unvested LTIP unitholders ($ 12.00 per share/unit) (Note 10) —  —  —  ( 2,108,554 ) —  ( 2,108,554 ) —  ( 2,108,554 ) Other comprehensive income (loss) —  —  —  —  ( 4,726 ) ( 4,726 ) ( 13 ) ( 4,739 ) Balances at December 31, 2024 $ 4,350,000   $ 17,541   $ 6,116,113   $ ( 699,083 ) $ ( 71,965 ) $ 9,712,606   $ 101,046   $ 9,813,652 Issuance of common shares in connection with share-based compensation ( 91,850 shares) (Note 12) —  9   9,535   —  —  9,544   —  9,544 Taxes withheld upon net share settlement of restricted share units (Note 12) —  —  ( 8,646 ) —  —  ( 8,646 ) —  ( 8,646 ) Share-based compensation cost (Note 12) —  —  43,545   —  —  43,545   —  43,545 Acquisition of noncontrolling interests —  —  ( 8,953 ) —  —  ( 8,953 ) ( 911 ) ( 9,864 ) Contributions by noncontrolling interests —  —  —  —  —  —  4,588   4,588 Net income —  —  —  1,797,032   —  1,797,032   —  1,797,032 Net income allocated to noncontrolling interests —  —  —  ( 12,684 ) —  ( 12,684 ) 12,684   — Reallocation of equity —  —  ( 3,944 ) —  —  ( 3,944 ) 3,944   — Distributions to: Preferred shareholders (Note 10) —  —  —  ( 194,703 ) —  ( 194,703 ) —  ( 194,703 ) Noncontrolling interests —  —  —  —  —  —  ( 27,693 ) ( 27,693 ) Common shareholders, restricted share unitholders and unvested LTIP unitholders ($ 12.00 per share/unit) (Note 10) —  —  —  ( 2,109,835 ) —  ( 2,109,835 ) —  ( 2,109,835 ) Other comprehensive income (loss) —  —  —  —  24,166   24,166   48   24,214 Balances at December 31, 2025 $ 4,350,000   $ 17,550   $ 6,147,650   $ ( 1,219,273 ) $ ( 47,799 ) $ 9,248,128   $ 93,706   $ 9,341,834 See accompanying notes. F-7 PUBLIC STORAGE CONSOLIDATED STATEMENTS OF CASH FLOWS (Amounts in thousands) Year Ended December 31, 2025 2024 2023 Cash flows from operating activities: Net income $ 1,797,032   $ 2,084,410   $ 2,160,120 Adjustments to reconcile net income to net cash flows from operating activities: Gain on sale of real estate ( 1,113 ) ( 1,537 ) ( 17,178 ) Depreciation and amortization 1,151,840   1,129,766   970,056 Equity in earnings of unconsolidated real estate entity ( 9,604 ) ( 19,821 ) ( 27,897 ) Distributions from cumulative equity in earnings of unconsolidated real estate entity 1,823   11,039   29,333 Unrealized foreign currency exchange (gain) loss 185,169   ( 101,974 ) 51,239 Share-based compensation expense 39,902   44,747   41,566 Impairment of real estate investments 4,348   —   — Amortization of debt issuance costs 10,349   9,728   7,974 Other non-cash adjustments 4,902   1,682   12,534 Changes in operating assets and liabilities, excluding the impact of acquisitions: Other assets ( 24,639 ) ( 44,968 ) ( 16,365 ) Accrued and other liabilities 26,440   15,183   35,266 Net cash flows from operating activities 3,186,449   3,128,255   3,246,648 Cash flows from investing activities: Capital expenditures to maintain real estate facilities ( 218,464 ) ( 239,655 ) ( 236,572 ) Capital expenditures for property enhancements —   ( 126,757 ) ( 159,939 ) Capital expenditures for energy efficiencies (LED lighting, solar) ( 70,914 ) ( 53,612 ) ( 64,626 ) Development and expansion of real estate facilities ( 310,737 ) ( 326,854 ) ( 364,445 ) Acquisition of real estate facilities and intangible assets ( 945,585 ) ( 267,473 ) ( 473,176 ) Acquisition of BREIT Simply Storage LLC, net of cash acquired —   —   ( 2,178,151 ) Issuance of notes receivable ( 131,227 ) ( 9,960 ) — Distributions in excess of cumulative equity in earnings from unconsolidated real estate entity —   13,285   10,975 Contributions to unconsolidated real estate entity —   —   ( 112,554 ) Acquisition of non-operating real estate assets ( 16,313 ) —   — Proceeds from sale of real estate investments 8,151   8,388   39,986 Net cash flows used in investing activities ( 1,685,089 ) ( 1,002,638 ) ( 3,538,502 ) Cash flows from financing activities: Issuance costs on amendment of credit facility —   —   ( 8,377 ) Repayments of notes payable ( 651,517 ) ( 808,505 ) ( 8,259 ) Issuance of notes payable, net of issuance costs 1,356,420   1,151,022   2,181,273 Issuance of common shares —   60,321   — Issuance of common shares in connection with share-based compensation 9,412   47,278   53,131 Taxes paid upon net share settlement of restricted share units ( 8,646 ) ( 12,667 ) ( 13,950 ) Repurchase of common shares —   ( 200,000 ) — Acquisition of noncontrolling interests ( 9,864 ) ( 1,591 ) — Contributions by noncontrolling interests 4,588   2,938   3,203 Distributions paid to preferred shareholders, common shareholders, restricted share unitholders and unvested LTIP unitholders ( 2,303,381 ) ( 2,301,935 ) ( 2,305,322 ) Distributions paid to noncontrolling interests ( 27,693 ) ( 15,437 ) ( 14,627 ) Net cash flows used in financing activities ( 1,630,681 ) ( 2,078,576 ) ( 112,928 ) Net (decrease) increase in cash and equivalents, including restricted cash $ ( 129,321 ) $ 47,041   $ ( 404,782 ) See accompanying notes. F-8 PUBLIC STORAGE CONSOLIDATED STATEMENTS OF CASH FLOWS (Amounts in thousands) Year Ended December 31, 2025 2024 2023 Cash and equivalents, including restricted cash at beginning of the period: Cash and equivalents $ 447,416   $ 370,002   $ 775,253 Restricted cash included in other assets —   30,373   29,904 $ 447,416   $ 400,375   $ 805,157 Cash and equivalents, including restricted cash at end of the period: Cash and equivalents $ 318,095   $ 447,416   $ 370,002 Restricted cash included in other assets —   —   30,373 $ 318,095   $ 447,416   $ 400,375 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 $ ( 8,764 ) $ ( 7,324 ) $ ( 10,798 ) Capital expenditures for property enhancements —   ( 1,087 ) ( 3,046 ) Capital expenditures for energy efficiencies (LED lighting, solar) ( 886 ) ( 1,179 ) ( 386 ) Construction or expansion of real estate facilities ( 19,111 ) ( 47,159 ) ( 68,099 ) Supplemental cash flow information: Cash paid for interest, net of amounts capitalized $ ( 273,007 ) $ ( 269,498 ) $ ( 146,213 ) Cash paid for income taxes, net of refunds ( 6,350 ) ( 6,877 ) ( 11,056 ) Cash received for sale of solar tax credits 15,847   —   — See accompanying notes. F-9 PUBLIC STORAGE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2025

1. Description of the Business Public Storage is a Maryland real estate investment trust (“REIT”) engaged in the ownership and operation of self-storage facilities that offer storage spaces for lease, generally on a month-to-month basis, for personal and business use, and other related operations such as tenant reinsurance, merchandise sales, third party management, and bridge lending to third-party self-storage owners, as well as the acquisition and development of additional self-storage space. We are structured as an umbrella partnership REIT, or UPREIT, under which substantially all of our business is conducted through Public Storage OP, L.P. (“PSA OP”), an operating partnership, and its subsidiaries, including Public Storage Operating Company (“PSOC”). The primary assets of the parent entity, Public Storage, are general partner and limited partner interests in PSA OP, which holds all of the Company’s assets through its ownership of all of the equity interests in PSOC. As a limited partnership, PSA OP is a variable interest entity and is consolidated by Public Storage as its primary beneficiary. As of December 31, 2025, Public Storage owned all of the general partner interests and approximately 99.80 % of the limited partnership interests of PSA OP, with the remaining 0.20 % 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 December 31, 2025, we owned interests in 3,171 self-storage facilities (with approximately 229.4  million net rentable square feet) located in 40 states in the United States (“U.S.”) operating under the Public Storage® name, and 1.0 million net rentable square feet of commercial and retail space. In addition, we managed 362 facilities (with approximately 28.2 million net rentable square feet) for third parties at December 31, 2025. At December 31, 2025, 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 332 self-storage facilities (with approximately 18 million net rentable square feet) located in seven Western European countries, all operating under the Shurgard® name. In recording our share of equity in earnings or loss from Shurgard, we adjust Shurgard’s operating results, which are reported under International Financial Reporting Standards (“IFRS”), to conform with U.S. generally accepted accounting principles (“GAAP”).
2. Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation We have prepared the accompanying consolidated financial statements in accordance with U.S. GAAP as set forth in the Accounting Standards Codification of the Financial Accounting Standards Board, and in conformity with the rules and regulations of the Securities and Exchange Commission (“SEC”). Disclosures of the number and square footage of facilities, as well as the number and coverage of tenant reinsurance policies (Note 16) are unaudited and outside the scope of our independent registered public accounting firm’s audit of our financial statements in accordance with the standards of the Public Company Accounting Oversight Board (U.S.). F-10 PUBLIC STORAGE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2025 Summary of Significant Accounting Policies Consolidation and Equity Method of Accounting We consider entities to be Variable Interest Entities (“VIEs”) when they have insufficient equity to finance their activities without additional subordinated financial support provided by other parties, or the equity holders as a group do not have a controlling financial interest. In addition, we have general partner interests in limited partnerships along with third-party investors to develop, construct or operate self-storage facilities. As the general partner, we consider the limited partnerships to be VIEs if the limited partners lack both substantive participating rights and substantive kick-out rights. We consolidate VIEs when we have (i) the power to direct the activities most significantly impacting economic performance, and (ii) either the obligation to absorb losses or the right to receive benefits from the VIE. PSA OP met the definition of a VIE and is consolidated by the Company as the primary beneficiary of PSA OP. All of the assets and liabilities of the Company are held by PSA OP. The total assets, primarily real estate assets, and the total liabilities of our other consolidated VIEs are not material as of December 31, 2025. We consolidate all other entities when we control them through voting shares or contractual rights. We refer to the entities we consolidate, for the period in which the reference applies, collectively as the “Subsidiaries,” and we eliminate intercompany transactions and balances. We account for our investment in an entity that we do not consolidate but over which we have significant influence using the equity method of accounting. We refer to this entity, for the periods in which the reference applies, as the “Unconsolidated Real Estate Entity,” and we eliminate intra-entity profits and losses and amortize any differences between the cost of our investment and the underlying equity in net assets against equity in earnings as if the Unconsolidated Real Estate Entity was a consolidated subsidiary. Equity in earnings of unconsolidated real estate entity presented on our income statements represents our pro-rata share of the earnings of the Unconsolidated Real Estate Entity. The dividends we receive from the Unconsolidated Real Estate Entity are reflected on our consolidated statements of cash flows as “distributions from cumulative equity in earnings of unconsolidated real estate entity” to the extent of our cumulative equity in earnings, with any excess classified as “distributions in excess of cumulative equity in earnings from unconsolidated real estate entity.” Use of Estimates The preparation of consolidated financial statements and accompanying notes in conformity with GAAP requires us to make estimates and assumptions that affect the amounts reported. Actual results could differ from those estimates and assumptions. Cash Equivalents Cash equivalents represent highly liquid financial instruments that mature within three months of acquisition such as money market funds with a rating of at least AAA by Standard & Poor’s, commercial paper that is rated A1 by Standard & Poor’s or deposits with highly rated commercial banks. Fair Value As used herein, the term “fair value” is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. In the absence of active markets for identical assets or liabilities, such measurements involve developing assumptions based on market observable data and, in the absence of such data, internal information that is consistent with what market participants would use in a hypothetical transaction that occurs at the balance sheet date. Assets and liabilities recorded at fair value are measured and classified in accordance with a three-tier fair value hierarchy based on the observability of the inputs available in the market used to measure fair value: Level 1 Quoted prices in active markets for identical assets or liabilities at the measurement date. F-11 PUBLIC STORAGE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2025 Level 2 Significant observable inputs other than Level 1, that are observable for the asset or liability, either directly or indirectly through corroboration with observable market data. Level 3 Unobservable inputs that are supported by little or no market data for the related assets or liabilities. The categorization of a financial instrument within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Our financial instruments consist of cash and cash equivalents, notes receivable, other assets, other liabilities, and notes payable and related interest rate swaps. Cash equivalents, notes receivable, other assets and other liabilities are stated at book value, which approximates fair value as of the balance sheet date due to the short time period to maturity or variable interest rates. We estimate and disclose the fair value of our notes payable and related interest rate swaps using Level 2 inputs by discounting the related future cash flows at a rate based upon quoted interest rates for securities that have similar characteristics such as credit quality and time to maturity. We use significant judgment to estimate fair values of real estate facilities, goodwill, and other intangible assets for the purposes of purchase price allocation or impairment analysis. In estimating their values, we consider Level 3 inputs such as market prices of land, market capitalization rates, expected returns, earnings multiples, projected levels of earnings, costs of construction, and functional depreciation. Real Estate Facilities We record real estate facilities at cost. We capitalize all costs incurred to acquire, develop, construct, renovate and improve facilities as part of major repair and maintenance programs, including interest and property taxes incurred during the construction period. We expense the costs of demolition of existing facilities associated with a renovation as incurred. We allocate the net acquisition cost of acquired real estate facilities to the underlying land, buildings, and identified intangible assets based upon their respective individual estimated fair values. We expense costs associated with dispositions of real estate, as well as routine repairs and maintenance costs, as incurred. We depreciate buildings and improvements on a straight-line basis over estimated useful lives ranging generally between 5 to 40 years. When we sell a full or partial interest in a real estate facility without retaining a controlling interest following sale, we recognize a gain or loss on sale as if 100 % of the property was sold at fair value. If we retain a controlling interest following the sale, we record a noncontrolling interest for the book value of the partial interest sold, and recognize additional paid-in capital for the difference between the consideration received and the partial interest at book value. Goodwill and Other Intangible Assets Intangible assets consist of goodwill, the Shurgard® trade name, which Shurgard uses pursuant to a fee-based licensing agreement, and finite-lived assets. Goodwill and the Shurgard® trade name have indefinite lives and are not amortized. Our finite-lived assets consist primarily of (i) acquired customers in place amortized relative to the benefit of the customers in place, with such amortization reflected as depreciation and amortization expense on our income statement, (ii) property tax abatements acquired and amortized relative to the reduction in property tax paid, with such amortization reflected as self-storage cost of operations on our income statement and (iii) acquired non real estate-related contracts, with such amortization reflected as depreciation and amortization expense on our income statement. F-12 PUBLIC STORAGE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2025 Notes Receivable We account for notes receivable from bridge loans we originate to third-party self-storage owners at amortized cost. The bridge loans, collateralized by operating self-storage properties, typically have a term of three years or four years with two one-year extensions, and have variable interest rates. We recognize interest income and other fee income related to the bridge loans using the effective interest method, with deferred fees and costs amortized over the lives of the related loans as yield adjustment. We recognize an allowance for expected credit losses for outstanding notes receivable and unfunded loan commitments. Evaluation of Asset Impairment We evaluate our real estate and finite-lived intangible assets for impairment each quarter. If there are indicators of impairment and we determine that the asset is not recoverable from future undiscounted cash flows to be received through the asset’s remaining life (or, if earlier, the expected disposal date), we record an impairment charge to the extent the carrying amount exceeds the asset’s estimated fair value or net proceeds from expected disposal. We evaluate our investment in unconsolidated real estate entity for impairment quarterly. We record an impairment charge to the extent the carrying amount exceeds estimated fair value, when we believe any such shortfall is other than temporary. We evaluate goodwill for impairment annually and whenever relevant events, circumstances, and other related factors indicate that it is more likely than not that the fair value of the related reporting unit is less than the carrying amount. When we conclude that it is not more likely than not that the fair value of the reporting unit is less than the aggregate carrying amount, no impairment charge is recorded and no further analysis is performed. Otherwise, we record an impairment charge to the extent the carrying amount of the goodwill exceeds the amount that would be allocated to goodwill if the reporting unit were acquired for estimated fair value. We evaluate other indefinite-lived intangible assets, such as the Shurgard® trade name for impairment at least annually and whenever relevant events, circumstances and other related factors indicate that it is more likely than not that the asset is impaired. When we conclude that it is not more likely than not that the asset is impaired, we do not record an impairment charge and no further analysis is performed. Otherwise, we record an impairment charge to the extent the carrying amount exceeds the asset’s estimated fair value. During 2025, we recognized $ 4.3 million of impairment write-down of certain land development parcels that are or will be marketed for sale. These land development parcels are included in other assets on the Consolidated Balance Sheet, and the related impairment write-down is included in real estate acquisition and development expense on the Consolidated Statements of Income. Revenue and Expense Recognition We recognize revenues from self-storage facilities, which primarily comprise rental income earned pursuant to month-to-month leases, as well as associated late charges and administrative fees, as earned. Promotional discounts reduce rental income over the promotional period, which is generally one month. We recognize ancillary revenues when earned. We accrue for property tax expense based upon actual amounts billed and, in some circumstances, estimates when bills or assessments have not been received from the taxing authorities. If these estimates are incorrect, the timing and amount of expense recognition could be incorrect. We expense cost of operations (including advertising expenditures), general and administrative expense, and interest expense as incurred. F-13 PUBLIC STORAGE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2025 Foreign Currency Exchange Translation The local currency (the Euro) is the functional currency for our equity interests in Shurgard. The related balance sheet amounts are translated into U.S. Dollars at the exchange rates at the respective financial statement date, while amounts on our consolidated statements of income are translated at the average exchange rates during the respective period. Cumulative translation adjustments, are included in equity as a component of accumulated other comprehensive income (loss). When financial instruments denominated in a currency other than the U.S. Dollar are expected to be settled in cash in the foreseeable future, the impact of changes in the U.S. Dollar equivalent are reflected in current earnings. At December 31, 2025, due primarily to our investment in Shurgard (Note 4) and our notes payable denominated in Euros (Note 8), our operating results and financial position are affected by fluctuations in currency exchange rates between the Euro, against the U.S. Dollar. The Euro was translated at exchange rates of approximately 1.174 U.S. Dollars per Euro at December 31, 2025 ( 1.039 at December 31, 2024), and average exchange rates of 1.130 , 1.082 and 1.081 for the years ended December 31, 2025, 2024, and 2023, respectively. Income Taxes We and a subsidiary of PSOC have elected to be treated as a REIT, as defined in the Internal Revenue Code of 1986, as amended (the “Code”). For each taxable year in which we qualify for taxation as a REIT, we will not be subject to U.S. federal corporate income tax on our “REIT taxable income” (generally, taxable income subject to specified adjustments, including a deduction for dividends paid and excluding our net capital gain) that is distributed to our shareholders. We believe we have met these REIT requirements for all periods presented herein. Accordingly, we have recorded no U.S. federal corporate income tax expense related to our REIT taxable income. We have elected taxable REIT subsidiary (“TRS”) status for some of our consolidated subsidiaries. Our tenant reinsurance, merchandise, third party management operations and our equity investment in Shurgard are conducted under these TRSs and are subject to federal corporate income tax. For these entities, deferred tax assets and liabilities for temporary differences are recognized based on the future tax consequences attributable to differences that exist between the financial statement carrying amounts of assets and liabilities and their respective tax bases, as well as tax attributes such as operating loss, capital loss and tax credits carryforwards on a taxing jurisdiction basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the year in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts that are expected more likely than not to be realized in the future. We recognize tax benefits of uncertain income tax positions only if we believe it is more likely than not that the position would ultimately be sustained assuming the relevant taxing authorities had full knowledge of the relevant facts and circumstances of our positions. As of December 31, 2025, we had no uncertain tax positions. We also incur income taxes in certain state and local jurisdictions, which are included in income tax (provision) benefit in the Consolidated Statements of Income. Share-Based Compensation Under various share-based compensation plans and under terms established or modified by our Board or a committee thereof, we grant 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 Long-Term Incentive Plan units (“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. F-14 PUBLIC STORAGE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2025 We estimate the fair value of share-based payment awards on the date of grant. We determine the fair value of RSUs, DSUs, and LTIP units with no market conditions based on the closing market price of the Company’s common shares on the date of grant. We value stock options and AO LTIP units with no market conditions at the grant date using the Black-Scholes option-pricing model. We value awards with market conditions at the grant date using a Monte-Carlo valuation simulation. Our determination of the fair value of share-based payment awards on the date of grant using an option-pricing model or Monte-Carlo valuation simulation is affected by our stock price as well as assumptions regarding a number of subjective and complex variables. These variables include, but are not limited to, our expected stock price volatility over the expected term of the awards. For stock options and AO LTIP units, variables also include actual and projected stock option exercise and AO LTIP unit conversion behaviors. For awards with performance conditions, we adjust compensation cost each quarter as needed for any changes in the assessment of the probability that the specified performance criteria will be achieved. We amortize the grant-date fair value of awards as compensation expense over the service period, which begins on the grant date and ends on the expected vesting date. For awards that are earned solely upon the passage of time and continued service, the entire cost of the award is amortized on a straight-line basis over the service period. For awards with market and/or performance conditions, the individual cost of each vesting is amortized separately over each individual service period (the “accelerated attribution” method). For awards with performance conditions, the estimated number of stock awards that will ultimately vest requires judgment, and to the extent actual results or updated estimates differ from our current estimates, such amounts will be recorded as a cumulative adjustment in the period estimates are revised. In amortizing share-based compensation expense, we do not estimate future forfeitures. Instead, we reverse previously amortized share-based compensation expense with respect to grants that are forfeited in the period the employee terminates employment. Our share-based compensation plans allow immediate vesting of outstanding unvested awards upon retirement (“Retirement Acceleration”) for employees who meet certain conditions. We accelerate amortization of compensation expense for each grant by changing the end of the service period from the original vesting date to the date an employee is expected to be eligible for Retirement Acceleration, if earlier. Recently Adopted Accounting Standards In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, to enhance the transparency and decision-usefulness of income tax disclosures, particularly in the rate reconciliation table and income taxes paid annual disclosure. This standard became effective for the Company, for its fiscal year 2025 reporting and for interim periods beginning in 2026. The enhanced disclosures regarded the Company’s Income Taxes are provided in Note 14. In September 2025, the FASB issued ASU 2025-06, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40), to amend the criteria for capitalizing internal-use software costs. This update is intended to modernize the accounting for software costs by replacing the legacy guidance under which capitalization is based on the nature of costs and the project development stage. This update requires software capitalization to begin when (1) management has authorized and committed funding to the software project and (2) it is probable that the project will be completed and the software will be used to perform the function intended. The guidance is effective for annual periods beginning after December 15, 2027 and interim periods within those annual reporting periods. The guidance may be applied prospectively, retrospectively, or via a modified prospective approach. Early adoption is permitted. The company adopted these amendments effective January 1, 2026. The adoption did not have a material impact on the Company’s consolidated financial statements. F-15 PUBLIC STORAGE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2025 Recent Accounting Pronouncements Not Yet Adopted In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income (Topic 220-40): Expense Disaggregation Disclosures ("ASU 2024-03"), that requires the disclosure of additional information related to certain costs and expenses, including amounts of inventory purchases, employee compensation, and depreciation and amortization included in each income statement line item. The guidance also requires disclosure of the total amount of selling expenses and the entity’s definition selling expenses. The guidance is effective for annual periods beginning after December 15, 2026 and interim periods within fiscal years beginning after December 15, 2027. The guidance may be applied prospectively or retrospectively. Early adoption is permitted. We are currently evaluating the impact of this update on our consolidated financial statements and related disclosures.
3. Real Estate Facilities Activity in real estate facilities during 2025, 2024, and 2023 is as follows: Year Ended December 31, 2025 2024 2023 (Amounts in thousands) Operating facilities, at cost: Beginning balance $ 28,478,738   $ 27,465,238   $ 24,219,126 Capital expenditures to maintain real estate facilities 218,763   234,541   232,048 Capital expenditures for property enhancements —   126,324   163,380 Capital expenditures for energy efficiencies (LED lighting, solar) 70,675   54,433   65,026 Acquisitions 882,208   254,940   2,442,118 Transfers, dispositions, and retirements, net 19,011   ( 106 ) ( 19,322 ) Developed or expanded facilities opened for operation 408,862   343,368   362,862 Ending balance 30,078,257   28,478,738   27,465,238 Accumulated depreciation: Beginning balance ( 10,426,186 ) ( 9,423,974 ) ( 8,554,155 ) Depreciation expense ( 1,046,039 ) ( 1,002,212 ) ( 881,255 ) Transfers, dispositions and retirements 4,171   —   11,436 Ending balance ( 11,468,054 ) ( 10,426,186 ) ( 9,423,974 ) Construction in process: Beginning balance 308,101   345,453   372,992 Costs incurred to develop and expand real estate facilities 302,214   307,650   356,788 Acquisitions —   —   2,922 Transfer to Other Assets ( 7,026 ) —   ( 12,666 ) Write-off of cancelled projects ( 72 ) ( 1,634 ) ( 11,721 ) Developed or expanded facilities opened for operation ( 408,862 ) ( 343,368 ) ( 362,862 ) Ending balance 194,355   308,101   345,453 Total real estate facilities at December 31, 2025 $ 18,804,558   $ 18,360,653   $ 18,386,717 F-16 PUBLIC STORAGE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2025 During 2025, we acquired 87 self-storage facilities ( 6.1 million net rentable square feet of storage space), for a total cost of $ 945.6  million in cash. Approximately $ 63.4  million of the total cost was allocated to intangible assets. We completed development and redevelopment activities costing $ 408.9 million, adding 2.1 million net rentable square feet of self-storage space. Construction in process at December 31, 2025 consisted of projects to develop new self-storage facilities and expand existing self-storage facilities. During 2024, we acquired 22 self-storage facilities ( 1.7 million net rentable square feet of storage space), for a total cost of $ 267.5  million in cash. Approximately $ 12.5  million of the total cost was allocated to intangible assets. We completed development and redevelopment activities costing $ 343.4  million, adding 1.5 million net rentable square feet of self-storage space. Construction in process at December 31, 2024 consisted of projects to develop new self-storage facilities and expand existing self-storage facilities. During 2023, we acquired all the membership interests of BREIT Simply Storage LLC, a self-storage company that owns and operates 127 self-storage facilities ( 9.4  million net rentable square feet) and manages 25 self-storage facilities for third parties, for a purchase price of $ 2.2 billion in cash (the “Simply Acquisition”). Approximately $ 2 billion of the total costs was allocated to real estate facilities and $ 214.3  million was allocated to intangible assets. During 2023, in addition to the Simply Acquisition, we acquired 37 self-storage facilities ( 2.7 million net rentable square feet of storage space), for a total cost of $ 473.2  million in cash. Approximately $ 23.2  million of the total cost was allocated to intangible assets. We completed development and redevelopment activities costing $ 362.9  million during 2023, adding 1.7 million net rentable square feet of self-storage space. Construction in process at December 31, 2023 consisted of projects to develop new self-storage facilities and expand existing self-storage facilities. During 2023, we wrote off $ 11.7  million of accumulated development costs for cancelled development and redevelopment projects in construction in process as real estate acquisition and development expense. We also transferred $ 12.7  million of land cost related to cancelled development projects to other assets at December 31, 2023. During 2023, we completed a real estate transaction with a third-party, through which we sold an operating self-storage facility with a net book value of $ 7.1  million for gross proceeds of $ 40.0  million and acquired a nearby land parcel for $ 13.5  million. At the close of the transaction, we entered into a leaseback of the self-storage facility until we complete development of the acquired land into a self-storage facility, no later than December 31, 2026. Of the $ 40.0  million in gross proceeds, $ 24.3  million was allocated to the sale of the property based on its estimated fair value, resulting a net gain on sale of real estate of $ 17.1  million after direct transaction costs, and $ 15.7  million was classified as a reduction of costs to develop the acquired land included in construction in process. In 2025, the leaseback of the self-storage facility ended resulting in the disposal of the property. During 2023, we also sold a land parcel for $ 0.1  million in cash and recorded a related gain on sale of real estate of $ 0.1  million. At December 31, 2025, the adjusted basis of real estate facilities for U.S. federal tax purposes was approximately $ 19.5  billion (unaudited). F-17 PUBLIC STORAGE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2025
4. Investment in Unconsolidated Real Estate Entity Throughout all periods presented, we had an approximate 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. On September 15 and June 13, 2025, Shurgard issued 1,192,066 and 1,267,459 new common shares to its shareholders who opted to exchange the cash dividend rights declared on August 13, 2025 and May 14, 2025, respectively, for additional shares. On September 15 and June 13, 2025, we received 576,984 and 576,992 new common shares, respectively, in exchange for all of our dividend rights. At December 31, 2025, we owned 35,773,710 common shares of Shurgard. Based upon the closing price at December 31, 2025 (€ 29.30 per share of Shurgard common stock, at 1.174 exchange rate of U.S. Dollars to the Euro), the shares we owned had a market value of approximately $ 1.2 billion. Our equity in earnings of Shurgard comprise our equity share of Shurgard’s net income, less amortization of the Shurgard Basis Differential (defined below). During 2025, 2024, and 2023, we received $ 5.0 million, $ 4.3 million, and $ 3.8 million of trademark license fees that Shurgard pays to us for the use of the Shurgard® trademark, respectively. We eliminated $ 1.8 million, $ 1.5 million, and $ 1.3 million of intra-entity profits and losses for 2025, 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 2025, we elected to receive our dividend distributions entirely in the form of additional shares as described above. In 2024, and 2023, we received cash dividend distributions from Shurgard totaling $ 22.8 million, and $ 39.0 million, respectively. Approximately $ 13.3 million, and $ 11.0 million of total cash distributions from Shurgard during the year ended 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 December 31, 2025, our investment in Shurgard’s real estate assets exceeded our pro-rata share of the underlying amounts on Shurgard’s balance sheet by $ 37.7  million ($ 62.6 million at December 31, 2024). This differential (the “Shurgard Basis Differential”) includes our basis adjustments in Shurgard’s real estate assets net of related deferred income taxes. During 2025, we transferred $ 25.7  million of the Shurgard Basis Differential to Real Estate Facilities. The Shurgard Basis Differential is being amortized as a reduction to equity in earnings of the Unconsolidated Real Estate Entity. Such amortization totaled approximately $ 8.0 million, $ 4.5 million, and $ 4.1 million during 2025, 2024, and 2023, respectively. As of December 31, 2025, 2024 and 2023, we translated the book value of our investment in Shurgard from Euro to U.S. Dollars and recorded $ 24.2 million in other comprehensive income, $ 4.7 million in other comprehensive loss and $ 13.1 million in other comprehensive income during the years ended December 31, 2025, 2024 and 2023, respectively. F-18 PUBLIC STORAGE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2025
5. Goodwill and Other Intangible Assets Goodwill and other intangible assets consisted of the following: At December 31, 2025 At December 31, 2024 Gross Book Value Accumulated Amortization Net Book Value Gross Book Value Accumulated Amortization Net Book Value (Amounts in thousands) Goodwill $ 165,843   $ —  $ 165,843   $ 165,843   $ —  $ 165,843 Shurgard® Trade Name 18,824   —  18,824   18,824   —  18,824 Finite-lived intangible assets, subject to amortization 1,071,488   ( 1,004,542 ) 66,946   1,008,111   ( 910,591 ) 97,520 Total goodwill and other intangible assets $ 1,256,155   $ ( 1,004,542 ) $ 251,613   $ 1,192,778   $ ( 910,591 ) $ 282,187 Finite-lived intangible assets consist primarily of acquired customers in place. Amortization expense related to intangible assets subject to amortization was $ 94.0 million, $ 117.6 million and $ 82.7 million in 2025, 2024, and 2023, respectively. During 2025, 2024, and 2023, intangibles increased $ 63.4 million, $ 12.5 million, and $ 237.5 million, respectively, in connection with the acquisition of real estate facilities and Simply Acquisition (Note 3). The remaining amortization expense will be recognized over a weighted average life of approximately 1.2 years. The estimated future amortization expense for our finite-lived intangible assets at December 31, 2025 is as follows: Year Amount (Amounts in Thousands) 2026 $ 51,993 2027 10,545 2028 965 2029 212 2030 212 Thereafter 3,019 Total $ 66,946
6. Notes Receivable We offer bridge loan financing to third-party self-storage owners for operating properties that we manage. The bridge loans, collateralized by operating self-storage properties, typically have a term of three or four years with two one-year extensions, and have variable interest rates. At December 31, 2025 and December 31, 2024, we had notes receivable of $ 142.1 million and $ 10.0 million with average annual interest rates of 7.9 % and 8.1 %, respectively. At December 31, 2025, we had unfunded loan commitments of $ 43.9 million expected to close in the next twelve months, subject to the satisfaction of certain conditions. As of December 31, 2025 and 2024, none of the notes receivable were in past-due or nonaccrual status and the allowance for expected credit losses was immaterial. F-19 PUBLIC STORAGE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2025
7. 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 December 31, 2025). 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 December 31, 2025). At December 31, 2025, we had no outstanding borrowings under this Credit Facility. We had undrawn standby letters of credit, which reduce our borrowing capacity, totaling $ 19.4 million at December 31, 2025 ($ 19.4 million at December 31, 2024). The Credit Facility has various customary restrictive covenants with which we were in compliance at December 31, 2025. Public Storage has provided a full and unconditional guarantee of PSOC’s obligations under the Credit Facility. F-20 PUBLIC STORAGE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2025
8. Notes Payable Our notes payable (all of which were issued by PSOC), are reflected net of issuance costs (including original issue discounts), which are amortized as interest expense on the effective interest method over the term of each respective note. Our notes payable at December 31, 2025 and December 31, 2024 are set forth in the tables below: Amounts at December 31, 2025 Amounts at December 31, 2024 Coupon Rate Effective Rate Principal Unamortized Costs Book Value Fair Value Book Value Fair Value (Dollar amounts in thousands) U.S. Dollar Denominated Unsecured Debt Notes due July 25, 2025 SOFR + 0.60 % 4.940 % $ —   $ —   $ —   $ —   $ 399,537   $ 400,714 Notes due February 15, 2026 0.875 % 1.030 % 500,000   ( 99 ) 499,901   497,958   499,160   479,639 Notes due November 9, 2026 1.500 % 1.640 % 650,000   ( 747 ) 649,253   636,828   648,383   614,981 Notes due April 16, 2027 SOFR + 0.70 % 4.645 % 700,000   ( 1,416 ) 698,584   703,891   697,544   706,119 Notes due September 15, 2027 3.094 % 3.218 % 500,000   ( 908 ) 499,092   494,206   498,564   480,904 Notes due May 1, 2028 1.850 % 1.962 % 650,000   ( 1,567 ) 648,433   620,402   647,756   592,876 Notes due November 9, 2028 1.950 % 2.044 % 550,000   ( 1,375 ) 548,625   520,843   548,144   494,867 Notes due January 15, 2029 5.125 % 5.260 % 500,000   ( 1,775 ) 498,225   516,660   497,639   506,074 Notes due May 1, 2029 3.385 % 3.459 % 500,000   ( 1,017 ) 498,983   489,405   498,673   472,031 Notes due July 1, 2030 (a) 4.375 % 4.568 % 475,000   ( 3,645 ) 471,497   478,958   —   — Notes due May 1, 2031 2.300 % 2.419 % 650,000   ( 3,642 ) 646,358   588,030   645,673   555,387 Notes due November 9, 2031 2.250 % 2.322 % 550,000   ( 2,078 ) 547,922   490,580   547,570   459,682 Notes due August 1, 2033 5.100 % 5.207 % 700,000   ( 4,392 ) 695,608   724,886   695,028   695,171 Notes due July 1, 2035 5.000 % 5.143 % 400,000   ( 4,184 ) 395,816   406,046   —   — Notes due August 1, 2053 5.350 % 5.474 % 900,000   ( 15,224 ) 884,776   870,986   884,224   856,992 8,225,000   ( 42,069 ) 8,183,073   8,039,679   7,707,895   7,315,437 Euro Denominated Unsecured Debt Notes due November 3, 2025 2.175 % 2.175 % —   —   —   —   251,385   249,979 Notes due September 9, 2030 0.500 % 0.640 % 821,758   ( 5,252 ) 816,506   727,308   720,735   630,159 Notes due January 24, 2032 0.875 % 0.978 % 586,970   ( 3,250 ) 583,720   508,532   515,575   443,113 Notes due January 20, 2034 3.500 % 3.836 % 498,925   ( 5,945 ) 492,980   441,580   —   — Notes due April 11, 2039 4.080 % 4.080 % 176,091   ( 65 ) 176,026   177,535   155,736   166,979 2,083,744   ( 14,512 ) 2,069,232   1,854,955   1,643,431   1,490,230 Mortgage Debt , secured by 2 real estate facilities with a net book value of 10.8 million 4.240 % 4.240 % 1,576   —   1,576   1,545   1,708   1,591 $ 10,310,320   $ ( 56,581 ) $ 10,253,881   $ 9,896,179   $ 9,353,034   $ 8,807,258 (a) The book value includes $ 0.1 million in adjustments related to changes in fair value attributable to hedging instruments on these notes as of December 31, 2025. See below for further discussion. Public Storage has provided a full and unconditional guarantee of PSOC’s obligations under each series of unsecured notes. F-21 PUBLIC STORAGE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2025 U.S. Dollar Denominated Unsecured Notes On June 30, 2025, PSOC completed a public offering of $ 875  million aggregate principal amount of senior notes, including $ 475 million aggregate principal amount of fixed rate senior notes bearing interest at an annual rate of 4.375 % maturing on July 1, 2030 and $ 400 million aggregate principal amount of fixed rate senior notes bearing interest at an annual rate of 5.000 % maturing on July 1, 2035. Interest on the senior notes is payable semi-annually on January 1 and July 1 of each year, commencing on January 1, 2026. In connection with the offering, we received approximately $ 867 million in net proceeds. In connection with our public offering of senior notes due July 1, 2030, we entered into three separate interest rate swap agreements, with a combined notional amount of $ 475  million, which effectively convert the debt’s fixed interest rate to a variable rate ( SOFR + 0.92 %). The swaps were designated in combination as a fair value hedge of interest rate risk and mature on July 1, 2030. The Company’s hedging relationship is assumed to be perfectly effective. As of December 31, 2025, the fair value of the swaps was an asset position of $ 0.1  million. There was no impact to earnings for the year ended December 31, 2025. The estimated fair values of our swaps are based upon changes in benchmark interest rates related to these notes. Because this methodology includes inputs that are less observable by the public and are not necessarily reflected in active markets, the measurement of the estimated fair values related to these financial instruments is categorized as level 2 in the fair value hierarchy. On July 25, 2025, we repaid PSOC’s outstanding $ 400  million aggregate principal amount of floating rate senior notes bearing interest at a rate of Compounded SOFR + 0.60 % at maturity. 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, PSOC’s 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. On April 23, 2024, we repaid PSOC’s outstanding $ 700 million aggregate principal amount of floating rate senior notes bearing interest at a rate of Compounded SOFR + 0.470 % at maturity. On July 26, 2023, PSOC completed a public offering of $ 400 million, $ 500 million, $ 700 million, and $ 600 million aggregate principal amount of unsecured senior notes bearing interest at an annual rate of Compounded SOFR + 0.60 % (reset quarterly), 5.125 %, 5.100 %, and 5.350 %, respectively, and maturing on July 25, 2025, January 15, 2029, August 1, 2033, and August 1, 2053, respectively. Interest on the 2025 notes is payable quarterly, commencing on October 25, 2023. Interest on the 2029 notes is payable semi-annually, commencing on January 15, 2024. Interest on the 2033 notes and 2053 notes is payable semi-annually, commencing on February 1, 2024. In connection with the offering, we incurred a total of $ 18.7  million in costs. 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 December 31, 2025. Included in these covenants are (a) a maximum Debt to Total Assets of 65 % (approximately 19 % at December 31, 2025) and (b) a minimum ratio of Adjusted EBITDA to Interest Expense of 1.5 x (approximately 12 x for the trailing twelve months ended December 31, 2025) as well as covenants limiting the amount we can encumber our properties with mortgage debt. Euro Denominated Unsecured Notes At December 31, 2025, our Euro denominated unsecured notes (the “Euro Notes”) consisted of four  tranches: (i) € 500.0 million issued in a public offering on January 24, 2020, (ii) € 700.0 million issued in a public offering on September 9, 2021, (iii) € 150.0 million issued to institutional investors on April 11, 2024, and (iv) € 425.0 million issued in a public offering on October 3, 2025. The Euro Notes have financial covenants similar to those of the U.S. Dollar Denominated Unsecured Notes. F-22 PUBLIC STORAGE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2025 On October 3, 2025, PSOC completed a public offering of € 425.0 million aggregate principal amount of fixed rate senior notes bearing interest at an annual rate of 3.500 % maturing on January 20, 2034. We received € 420.8  million in net proceeds from the offering. On November 3, 2025, we used the net proceeds to repay PSOC’s outstanding € 242.0 million aggregate principal amount 2.175 % senior notes due November 3, 2025 to institutional investors. 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. 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 gain (loss)” on our income statement (losses of $ 213.5  million in 2025, as compared to gains of $ 103.0  million in 2024 and losses of $ 51.6  million in 2023). 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 December 31, 2025, 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 December 31, 2025, approximate principal maturities of our Notes Payable are as follows: Unsecured Debt Mortgage Debt Total (Amounts in thousands) 2026 $ 1,150,000 $ 138 $ 1,150,138 2027 1,200,000 146 1,200,146 2028 1,200,000 129 1,200,129 2029 1,000,000 88 1,000,088 2030 1,296,758 1,061 1,297,819 Thereafter 4,461,986 14 4,462,000 $ 10,308,744 $ 1,576 $ 10,310,320 Weighted average effective rate 3.2 % 4.2 % 3.2 % Interest capitalized as real estate totaled $ 6.5  million, $ 10.5  million, and $ 9.3  million for 2025, 2024, and 2023, respectively.
9. Noncontrolling Interests There are noncontrolling interests related to subsidiaries of PSOC we consolidate of which we do not own 100% of the equity. At December 31, 2025, certain of these subsidiaries have issued 470,398 partnership units to third-parties that are redeemable by the holders on a one -for-one basis for common shares of the Company or cash at our option. F-23 PUBLIC STORAGE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2025 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 12 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 December 31, 2025, approximately 0.20 % of the partnership interests of PSA OP, were not owned by the Company. We adjust the balance of noncontrolling interests of PSA OP to reflect their proportionate share of the net assets of PSA OP as of the end of each period.
10. Shareholders’ Equity Preferred Shares At December 31, 2025 and December 31, 2024, we had the following series of Cumulative Preferred Shares (“Preferred Shares”) outstanding: At December 31, 2025 At December 31, 2024 Series Earliest Redemption Date Dividend Rate Shares Outstanding Liquidation Preference Shares Outstanding Liquidation Preference (Dollar amounts in thousands) Series F 6/2/2022 5.150   % 11,200   $ 280,000   11,200   $ 280,000 Series G 8/9/2022 5.050   % 12,000   300,000   12,000   300,000 Series H 3/11/2024 5.600   % 11,400   285,000   11,400   285,000 Series I 9/12/2024 4.875   % 12,650   316,250   12,650   316,250 Series J 11/15/2024 4.700   % 10,350   258,750   10,350   258,750 Series K 12/20/2024 4.750   % 9,200   230,000   9,200   230,000 Series L 6/17/2025 4.625   % 22,600   565,000   22,600   565,000 Series M 8/14/2025 4.125   % 9,200   230,000   9,200   230,000 Series N 10/6/2025 3.875   % 11,300   282,500   11,300   282,500 Series O 11/17/2025 3.900   % 6,800   170,000   6,800   170,000 Series P 6/16/2026 4.000   % 24,150   603,750   24,150   603,750 Series Q 8/17/2026 3.950   % 5,750   143,750   5,750   143,750 Series R 11/19/2026 4.000   % 17,400   435,000   17,400   435,000 Series S 1/13/2027 4.100   % 10,000   250,000   10,000   250,000 Total Preferred Shares 174,000   $ 4,350,000   174,000   $ 4,350,000 The holders of our Preferred Shares have general preference rights with respect to liquidation, quarterly distributions, and any accumulated unpaid distributions. Except as noted below, holders of the Preferred Shares do not have voting rights. In the event of a cumulative arrearage equal to six quarterly dividends, holders of all outstanding series of preferred shares (voting as a single class without regard to series) will have the right to elect two additional members to serve on our Board of Trustees (our “Board”) until the arrearage has been cured. At December 31, 2025, 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. F-24 PUBLIC STORAGE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2025 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. Common Shares During 2025, 2024, and 2023, activity with respect to our common shares was as follows: 2025 2024 2023 Shares Amount Shares Amount Shares Amount (Dollar amounts in thousands) Employee stock-based compensation and exercise of stock options (Note 12) 91,850   $ 9,544   280,141   $ 47,411   405,059   $ 53,386 Issuance of commons shares for cash —   —   184,390   60,321   —   — Repurchase of common shares —   —   ( 726,865 ) ( 200,000 ) —   — 91,850   $ 9,544   ( 262,334 ) $ ( 92,268 ) 405,059   $ 53,386 In 2024, our Board authorized an “at the market” offering program pursuant to which management may issue common shares up to an aggregate gross sales price of $ 2.0  billion on the open market or in privately negotiated transactions. Since the inception of the program, we have issued a total of 184,390 common shares on the open market for an aggregate gross sales price of $ 61.4  million and received net proceeds of approximately $ 60.3  million after issuance costs. There were no issuances of shares under the program in 2025. 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. Since the inception of the program, we have repurchased a total of 24,448,781 common shares at an aggregate cost of approximately $ 879.1  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 December 31, 2025 and there were no repurchases for the year ended December 31, 2025. Common share dividends paid, including amounts paid to our restricted share unitholders, deferred share unitholders, and unvested LTIP unitholders totaled $ 2.109 billion ($ 12.00 per share), $ 2.107 billion ($ 12.00 per share), and $ 2.111 billion ($ 12.00 per share) for the years ended December 31, 2025, 2024, and 2023, respectively. Preferred share dividends totaled $ 194.7 million for each of the years ended December 31, 2025, 2024, and 2023, respectively. The unaudited characterization of dividends for U.S. federal corporate income tax purposes is made based upon earnings and profits of the Company, as defined by the Code. For the tax year ended December 31, 2025, distributions for the common shares and all the various series of preferred shares were classified as follows: 2025 (unaudited) 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Ordinary Dividends 100.00   % 100.00   % 100.00   % 100.00   % Capital Gain Distributions 0.00   % 0.00   % 0.00   % 0.00   % Total 100.00   % 100.00   % 100.00   % 100.00   % The ordinary income dividends distributed for the tax year ended December 31, 2025 are not qualified dividends under the Internal Revenue Code; however, they are subject to the 20% deduction under IRS Section 199A. F-25 PUBLIC STORAGE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2025
11. Related Party Transactions At December 31, 2025, 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 67 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 $ 2.1 million, $ 2.2 million and $ 2.1 million for 2025, 2024, and 2023, respectively.
12. Share-Based Compensation We recorded share-based compensation expense associated with our equity awards in the various expense categories in the Consolidated Statements of Income as set forth in the following table. Year Ended December 31, 2025 2024 2023 (Amounts in thousands) Self-storage cost of operations $ 12,003   $ 12,128   $ 13,636 Ancillary cost of operations 1,276   1,161   1,289 Real estate acquisition and development expense 1,660   2,750   1,242 General and administrative 24,963   28,708   25,399 Total $ 39,902   $ 44,747   $ 41,566 In addition, $ 2.2 million, $ 3.1 million, and $ 2.4 million share-based compensation cost was capitalized as real estate facilities for the years ended December 31, 2025, 2024, and 2023, respectively. In May 2025, our shareholders approved an amendment and restatement of the 2021 Equity and Performance-Based Incentive plan to increase the number of common shares reserved for issuance under the 2021 Plan by an additional 3.0  million shares and to extend the termination date of the 2021 Plan from April 25, 2031 to May 7, 2035. Following the amendment and restatement of our 2021 Equity and Performance-Based Incentive Plan in February 2024, which further provided for the grant of awards in the form of LTIP units and AO LTIP units of PSA OP, 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. F-26 PUBLIC STORAGE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2025 Restricted Share Units and LTIP Units We have service-based and performance-based RSUs and LTIP units outstanding, which generally vest over 5 to 8 years from the grant date. Performance-based RSUs and LTIP units outstanding vest upon meeting certain performance conditions or market conditions. Upon vesting, the grantee of RSUs receives new common shares equal to the number of vested RSUs, less common shares withheld to satisfy the grantee’s statutory tax liabilities arising from the vesting. Vested LTIP units represent noncontrolling interests of PSA OP and may be converted, subject to the satisfaction of all applicable vesting conditions, on a one -for-one basis into common units of PSA OP, which are exchangeable by the holders for cash, or at the Company’s election, on a one -for-one basis into common shares of the Company. Holders of RSUs and LTIP units are entitled to receive per-unit cash distributions equal to the per-share dividends received by our common shareholders, except that holders of performance-based awards are not entitled to receive the full distributions until expiration of the applicable performance period, at which time holders of any earned performance-based awards are entitled to receive a catch-up distribution for the periods prior to such time. For the years ended December 31, 2025, 2024, and 2023, we incurred share-based compensation cost for RSUs and LTIP units of $ 30.5 million, $ 34.4 million, and $ 28.2 million, respectively. During 2025, 36,802 performance-based LTIP unit awards (at target) were granted to certain executive officers and key employees. The vesting of performance-based LTIP unit awards is dependent upon meeting certain market conditions over a three-year period from March 5, 2025 through March 4, 2028, with continued service-based vesting through the first quarter of 2030. These LTIP unit awards require relative achievement of the Company’s total shareholder return as compared to the weighted average total shareholder return of specified peer groups and can result in grantees earning from zero to a maximum of 73,604 LTIP units. Among the 128,565 RSUs and LTIP units granted during 2024, 34,550 performance-based LTIP unit awards (at target) and 3,770 performance-based RSUs were granted to certain executive officers and key employees. The vesting of performance-based LTIP unit awards is dependent upon meeting certain market conditions over a three-year period from March 5, 2024 through March 4, 2027, with continued service-based vesting through the first quarter of 2029. These LTIP unit awards require relative achievement of the Company’s total shareholder return as compared to the weighted average total shareholder return of specified peer groups and can result in grantees earning from zero to a maximum of 69,100 LTIP units. The vesting of performance-based RSUs is dependent upon meeting certain operational performance targets in 2024 and continued service through 2028. These performance targets were met at 100 % achievement. During 2023, 37,211 RSUs were awarded where vesting is dependent upon meeting certain market conditions over a three-year period from March 15, 2023 through March 14, 2026, with continued service-based vesting through the first quarter of 2028. These RSUs require relative achievement of the Company’s total shareholder return as compared to the weighted average total shareholder return of specified peer groups and can result in grantees earning up to 200 % of the target RSUs originally granted. During 2024, we issued LTIP units in substitution for these outstanding RSUs. These targets were met at 130 % achievement. Remaining compensation cost related to RSUs and LTIP units outstanding at December 31, 2025 totals approximately $ 64.0 million and is expected to be recognized over the next three years on average. The following tables set forth relevant information with respect to restricted shares: F-27 PUBLIC STORAGE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2025 Service-Based Performance-Based (a) Total Number of Awards Weighted-Average Grant-Date Fair Value Number of Awards Weighted-Average Grant-Date Fair Value Number of Awards Weighted-Average Grant-Date Fair Value Unvested awards outstanding January 1, 2023 407,812   $ 258.34   68,235   $ 336.33   476,047   $ 269.52 Granted 77,974   296.19   37,211   295.61   115,185   296.01 Vested ( 132,909 ) ( 245.19 ) ( 9,250 ) ( 275.12 ) ( 142,159 ) ( 247.13 ) Forfeited ( 30,229 ) ( 266.60 ) ( 2,183 ) ( 300.86 ) ( 32,412 ) ( 268.91 ) Unvested awards outstanding December 31, 2023 322,648   $ 272.14   94,013   $ 327.06   416,661   $ 284.53 Granted (b) 83,651   308.24   44,914   228.68   128,565   280.45 Vested ( 130,321 ) ( 259.20 ) ( 10,004 ) ( 275.12 ) ( 140,325 ) ( 260.33 ) Forfeited ( 18,104 ) ( 286.93 ) ( 866 ) ( 300.86 ) ( 18,970 ) ( 287.57 ) Unvested awards outstanding December 31, 2024 257,874   $ 289.35   128,057   $ 296.79   385,931   $ 291.82 Granted 74,479   262.47   36,802   293.08   111,281   272.59 Vested ( 104,560 ) ( 274.02 ) ( 27,148 ) ( 350.21 ) ( 131,708 ) ( 289.73 ) Forfeited ( 16,603 ) ( 297.39 ) —   —   ( 16,603 ) ( 297.39 ) Unvested awards outstanding December 31, 2025 211,190   $ 286.83   137,711   $ 285.27   348,901   $ 286.21 2025 2024 2023 Amounts for the year: (Dollar Amounts in Thousands) Fair value of vested shares and vested LTIP units on vesting date $ 36,864   $ 41,848   $ 41,999 Cash paid for taxes upon vesting in lieu of issuing common shares $ 8,646   $ 12,667   $ 13,950 Common shares issued upon vesting 50,016   63,840   96,657 Vested LTIP units issued upon vesting 54,136   40,396   — Average assumptions used in valuing restricted share units with market conditions with the Monte-Carlo simulation method: Time from the valuation date to the end of the Performance Period 3 3 3 Risk-free interest rate 4.0 % 4.2 % 3.8 % Expected volatility, based upon historical volatility 24.9 % 23.8 % 28.2 % Expected dividend yield 3.8 % 4.3 % 4.1 % (a) Number of performance-based awards are presented based on the target performance pursuant to the terms of each applicable award when granted and adjusted to the actual number of awards earned based on the actual performance. (b) Amount granted for performance-based awards includes 6,594 LTIP units for payout adjustments based on Total Shareholder Return modifier for awards granted in 2022. Stock Options and AO LTIP Units We have service-based and performance-based stock options and AO LTIP units outstanding. Performance-based stock options and AO LTIP units vest upon meeting certain performance conditions or market conditions. Stock options and AO LTIP units generally vest over 1 to 5 years, expire 10 years after the grant date, and have an exercise or conversion price equal to the closing trading price of our common shares on the grant date. Common shares of the Company are issued for options exercised and vested LTIP units are issued for AO LTIP units converted. Employees cannot require the Company to settle their awards in cash. For the years ended December 31, 2025, 2024, and 2023, we incurred share-based compensation cost for outstanding stock options of $ 10.6 million, $ 12.7 million and $ 14.9 million, respectively. F-28 PUBLIC STORAGE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2025 During 2025, 103,839 of service-based AO LTIP units, 61,388 of performance-based AO LTIP units (at target), and 3,177 service-based options were granted to certain executive officers and trustees. The vesting of the performance-based AO LTIP units is dependent upon meeting certain market conditions over a three-year period from March 5, 2025 through March 4, 2028, with continued service-based vesting through the first quarter of 2030. These performance-based AO LTIP units require relative achievement of the Company’s total shareholder return as compared to the weighted average total shareholder return of specified peer groups and can result in grantees earning from zero to a maximum of 122,776 AO LTIP units. During 2024, we granted 106,484 of service-based AO LTIP units, 63,717 of performance-based AO LTIP units, and 3,600 service-based options to certain executive officers and trustees. The vesting of the performance-based AO LTIP units is dependent upon meeting certain market conditions over a three-year period from March 5, 2024 through March 4, 2027, with continued service-based vesting through the first quarter of 2029. These performance-based AO LTIP units require relative achievement of the Company’s total shareholder return as compared to the weighted average total shareholder return of specified peer groups and can result in grantees earning from zero to a maximum of 127,434 AO LTIP units. During 2023, we granted 60,000 stock options in connection with non-management trustee compensation. 117,168 stock options were awarded during 2023 where vesting is dependent upon meeting certain market conditions over the three-year period from March 15, 2023 through March 14, 2026, with continued service-based vesting through the first quarter of 2028. These stock options require relative achievement of the Company’s total shareholder return as compared to the weighted average total shareholder return of specified peer groups and can result in grantees earning up to 200 % of the target options originally granted. During 2024, we issued AO LTIP units in substitution for these stock options. The stock options and AO LTIP units outstanding at December 31, 2025 have an aggregate intrinsic value (the excess, if any, of each option’s market value over the exercise price) of approximately $ 73.2 million and remaining average contractual lives of approximately four years . Total compensation cost related to unvested AO LTIP units and stock options that have not yet been recognized is $ 10.1 million and are expected to be recognized as compensation cost over approximately two years on average. Exercisable stock options and convertible AO LTIP units have an aggregate intrinsic value of approximately $ 70.4 million at December 31, 2025 and remaining average contractual lives of approximately four years . F-29 PUBLIC STORAGE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2025 Additional information with respect to stock options and AO LTIP units during 2025, 2024, and 2023 is as follows: Service-Based Performance-Based (a) Total Number of Awards Weighted Average Exercise or Conversion Price per Award Number of Awards Weighted Average Exercise or Conversion Price per Award Number of Awards Weighted Average Exercise or Conversion Price per Award Awards outstanding January 1, 2023 1,854,041   $ 209.53   1,310,442   $ 229.39   3,164,483   $ 217.75 Granted (b) 60,000   286.81   180,425   265.46   240,425   270.79 Exercised ( 272,250 ) ( 167.15 ) ( 34,401 ) ( 221.68 ) ( 306,651 ) ( 173.26 ) Cancelled ( 12,049 ) ( 293.81 ) ( 34,987 ) ( 229.34 ) ( 47,036 ) ( 245.86 ) Awards outstanding December 31, 2023 1,629,742   $ 218.83   1,421,479   $ 234.16   3,051,221   $ 225.97 Granted (c) 110,084   278.82   87,782   297.12   197,866   286.94 Exercised or converted (d) ( 381,850 ) ( 194.09 ) ( 301,498 ) ( 221.83 ) ( 683,348 ) ( 206.33 ) Cancelled ( 10,110 ) ( 320.69 ) ( 5,164 ) ( 221.68 ) ( 15,274 ) ( 287.21 ) Awards outstanding December 31, 2024 1,347,866   $ 229.98   1,202,599   241.90   2,550,465   $ 235.60 Granted 107,016   305.46   61,388   311.30   168,404   307.59 Exercised or converted (e) ( 223,705 ) ( 209.97 ) ( 34,538 ) ( 221.68 ) ( 258,243 ) ( 211.54 ) Cancelled ( 6,884 ) ( 386.32 ) —   —   ( 6,884 ) ( 386.32 ) Awards outstanding December 31, 2025 1,224,293   $ 239.35   1,229,449   $ 245.93   2,453,742   $ 242.65 Awards exercisable or convertible at December 31, 2025 1,049,184   $ 229.89   873,551   $ 230.71   1,922,735   $ 230.26 (a) Number of performance-based awards are presented based on the target performance pursuant to the terms of each applicable award when granted and adjusted to the actual number of awards earned based on the actual performance. (b) Amount granted for performance-based stock options includes 63,257 options for payout adjustments based on Total Shareholder Return modifier for options granted in 2021. (c) Amount granted for performance-based awards includes 24,065 AO LTIP units for payout adjustments based on Total Shareholder Return for awards granted in 2022. (d) 214,996 common shares were issued upon the exercise of stock options and 186,944 vested LTIP units were issued upon conversion of 468,352 AO LTIP units in the year ended December 31, 2024. (e) 41,367 common shares were issued upon the exercise of stock options and 66,936 vested LTIP units were issued upon conversion of 216,876 AO LTIP units in the year ended December 31, 2025. F-30 PUBLIC STORAGE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2025 2025 2024 2023 Aggregate exercise date intrinsic value of options and AO LTIP units exercised or converted during the year (in 000's) $ 15,091 $ 85,833 $ 35,662 Average assumptions used in valuing options and AO LTIP units with the Black-Scholes method: Expected life of options in years, based upon historical experience 6 6 6 Risk-free interest rate 4.1 % 4.2 % 3.5 % Expected volatility, based upon historical volatility 25.1 % 24.4 % 24.4 % Expected dividend yield 3.9 % 4.3 % 4.2 % Average assumptions used in valuing options and AO LTIP units with market conditions with the Monte-Carlo simulation method: Expected life of options in years, based upon historical experience 7 7 7 Risk-free interest rate 4.1 % 4.1 % 3.5 % Expected volatility, based upon historical volatility 24.7 % 24.1 % 23.8 % Expected dividend yield 3.8 % 4.3 % 4.1 % Average estimated value of options and AO LTIP Units granted during the year $ 61.73 $ 51.33 $ 56.86 Trustee Deferral Program Non-management trustees may elect to receive all or a portion of their cash retainers in cash, unrestricted common shares, fully-vested LTIP units, or DSUs to be settled at a specified future date. Unrestricted common shares and/or LTIP units and DSUs will be granted to the non-management trustee on the last day of each calendar quarter based on the cash retainer earned for that quarter and converted into a number of shares or units based on the applicable closing price of our common shares on such date. During 2025, we granted 2,112 fully vested LTIP units, 790 DSUs, and 467 unrestricted common shares. During 2025, 602 previously granted DSUs were settled in common shares. A total of 11,674 DSUs were outstanding at December 31, 2025 ( 11,486 at December 31, 2024). F-31 PUBLIC STORAGE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2025
13. Net Income per Common Share We allocate net income to (i) noncontrolling interests based upon their contractual rights in the respective subsidiaries or for participating noncontrolling interests based upon their participation in both distributed and undistributed earnings of the Company, (ii) preferred shareholders, for distributions paid or payable, (iii) preferred shareholders, to the extent redemption cost exceeds the related original net issuance proceeds (a “preferred share redemption charge”), and (iv) RSUs and unvested LTIP units, for non-forfeitable dividends and distributions paid and adjusted for participation rights in undistributed earnings of the Company. We calculate basic and diluted net income per common share based upon net income allocable to common shareholders, divided by (i) weighted average common shares for basic net income per common share, and (ii) weighted average common shares adjusted for the impact of dilutive stock options and AO LTIP units outstanding for diluted net income per common share. Stock options and AO LTIP units equivalent to 572,130 common shares were excluded from the computation of diluted earnings per share for 2025, as compared to 138,739 common shares for 2024, because their effect would have been antidilutive. The following table reconciles the numerators and denominators of the basic and diluted net income per common shares computation for the years ended December 31, 2025, 2024, and 2023, respectively: Year Ended December 31, 2025 2024   2023 (Amounts in thousands, except per share data) Numerator for basic and dilutive net income per common share – net income allocable to common shareholders $ 1,585,585   $ 1,872,685   $ 1,948,741 Denominator for basic net income per share - weighted average common shares outstanding 175,447   175,351   175,472 Net effect of dilutive stock options and AO LTIP units - based on treasury stock method 455   687   671 Denominator for dilutive net income per share - weighted average common shares outstanding 175,902   176,038   176,143 Net income per common share: Basic $ 9.04   $ 10.68   $ 11.11 Dilutive $ 9.01   $ 10.64   $ 11.06 F-32 PUBLIC STORAGE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2025
14. Income Taxes As a REIT, the Company is generally not subject to U.S. federal income tax with respect to that portion of its income which is distributed annually to its stockholders. However, the Company has elected to treat certain of its corporate subsidiaries as a TRS. In general, a TRS may perform additional services for tenants and generally may engage in any real estate or non-real estate related business. A TRS is subject to U.S. federal corporate income tax and may be subject to state and local income taxes. The following is a reconciliation of the statutory federal income tax rate to the Company’s effective tax rate for the years ended December 31, 2025, 2024 and 2023, respectively: Year Ended December 31, 2025 2024 2023 Amount Percent Amount Percent Amount Percent (Dollar Amounts in Thousands) Expected tax expense at statutory rate $ 375,859   21.0   % $ 438,707   21.0   % $ 455,898   21.0   % State and local income taxes (a) 6,946   0.4   % 2,689   0.1   % 7,871   0.4   % Foreign tax expense (b) 1,776   0.1   % 1,564   0.1   % 476   —   % Tax Credits ( 16,585 ) ( 0.9 ) % ( 17,774 ) ( 0.9 ) % ( 8,639 ) ( 0.4 ) % Changes in Valuation Allowance (c) 8,669   0.5   % 24,353   1.2   % 14,631   0.7   % Nontaxable or nondeductible items: Nontaxable REIT income ( 373,557 ) ( 20.9 ) % ( 438,739 ) ( 21.0 ) % ( 451,640 ) ( 20.8 ) % Other ( 10,336 ) ( 0.6 ) % ( 6,131 ) ( 0.3 ) % ( 7,776 ) ( 0.4 ) % Income tax provision (benefit) and effective tax rate $ ( 7,228 ) ( 0.4 ) % $ 4,669   0.2   % $ 10,821   0.5   % (a) State taxes in Texas made up the majority (greater than 50 percent) of the tax effect in this category (b) Foreign tax expense related to Shurgard’s operations in the United Kingdom (c) Includes $ 15.8  million related to the reversal of valuation allowance on sale of solar tax credits during the year ended December 31, 2025.
15. Segment Information Our operating segments reflect the significant components of our operations where discrete financial information is evaluated separately by our President and Chief Executive Officer, who is our chief operating decision maker (“CODM”). Segment asset information is not used by the CODM to assess performance or allocate resources. Self-Storage Operations The Self-Storage Operations reportable segment reflects the aggregated rental operations from the self-storage facilities we own through the following operating segments: (i) Same Store Facilities, (ii) Acquired Facilities, (iii) Newly Developed and Expanded Facilities, and (iv) Other Non-Same Store Facilities. Our CODM evaluates performance and allocates resources for the Self-Storage Operations reportable segment based on its Net Operating Income (“NOI”), which represents the related revenue less cost of operations. Our CODM utilizes NOI during the budget and forecasting process to allocate capital and personnel resources and evaluates financial performance and operating trends of the reportable segment based on the budget-to-actual variance and year-over-year change of the NOI on an ongoing basis. The presentation in the table below sets forth the revenue, significant expense categories, and NOI of this reportable segment, as well as the related depreciation expense. For all periods presented, substantially all of our real estate facilities, goodwill and other intangible assets, other assets, and accrued and other liabilities are associated with the Self-Storage Operations reportable segment. Ancillary Operations Ancillary Operations reflects the combined operations of our tenant reinsurance, merchandise sales, and third party property management operating segments. F-33 PUBLIC STORAGE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2025 Presentation of Segment Information The following table reconciles NOI and net income attributable to our reportable segment to our consolidated net income: Year Ended December 31, 2025 2024 2023 (Amounts in thousands) Self-Storage Operations Reportable Segment Revenue $ 4,489,413   $ 4,395,993   $ 4,259,613 Cost of operations: Property taxes ( 480,793 ) ( 451,992 ) ( 411,323 ) On-site property manager payroll ( 162,942 ) ( 167,258 ) ( 164,405 ) Repairs and maintenance ( 98,140 ) ( 93,763 ) ( 83,429 ) Utilities ( 65,517 ) ( 63,611 ) ( 62,462 ) Marketing ( 103,340 ) ( 106,414 ) ( 90,717 ) Other direct property costs ( 123,239 ) ( 122,119 ) ( 114,879 ) Indirect cost of operations (a): ( 143,067 ) ( 131,563 ) ( 134,735 ) Total cost of operations ( 1,177,038 ) ( 1,136,720 ) ( 1,061,950 ) Net operating income 3,312,375   3,259,273   3,197,663 Depreciation and amortization ( 1,151,840 ) ( 1,129,766 ) ( 970,056 ) Net income 2,160,535   2,129,507   2,227,607 Ancillary Operations Revenue 334,700   299,623   258,077 Cost of operations ( 132,937 ) ( 121,281 ) ( 85,996 ) Net operating income 201,763   178,342   172,081 Total net income allocated to segments 2,362,298   2,307,849   2,399,688 Other items not allocated to segments: Real estate acquisition and development expense ( 19,550 ) ( 15,506 ) ( 26,451 ) General and administrative ( 106,682 ) ( 106,677 ) ( 80,632 ) Interest and other income 63,099   67,212   85,590 Interest expense ( 304,495 ) ( 287,401 ) ( 201,132 ) Equity in earnings of unconsolidated real estate entity 9,604   19,821   27,897 Foreign currency exchange gain (loss) ( 215,583 ) 102,244   ( 51,197 ) Gain on sale of real estate 1,113   1,537   17,178 Income tax (provision) benefit 7,228   ( 4,669 ) ( 10,821 ) Net income $ 1,797,032   $ 2,084,410   $ 2,160,120 (a) Indirect cost of operations are comprised of supervisory payroll, centralized management costs, and share-based compensation F-34 PUBLIC STORAGE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2025
16. Commitments and Contingencies Contingent Losses We are a party to various legal proceedings and subject to various claims and complaints; however, we believe that the likelihood of these contingencies resulting in a material loss to the Company, either individually or in the aggregate, is remote. Insurance and Loss Exposure We maintain comprehensive property and casualty insurance policies which include coverage for earthquake, rental loss, general liability, umbrella liability, management liability, employee medical insurance and workers compensation coverage through internationally recognized and highly rated insurance carriers, subject to deductibles. We reinsure a program that provides insurance to our customers from an independent third-party insurer. This program covers customer claims for losses to goods stored at our facilities as a result of specific named perils (earthquakes are not covered by this program), up to a maximum limit of $ 5,000 per storage unit. We reinsure all risks in this program, but purchase excess insurance to cover this exposure for a limit of $ 15.0 million for losses in excess of $ 10.0 million per occurrence. We are subject to licensing requirements and regulations in all states. Customers participate in the program at their option. At December 31, 2025, there were approximately 1.5 million certificates held by self-storage customers under the program, representing aggregate coverage of approximately $ 7.2 billion. Commitments We have construction commitments representing future expected payments for construction under contract totaling $ 169.4 million at December 31, 2025. We expect to pay approximately $ 155.3 million in 2026 and $ 14.1 million in 2027 for these construction commitments. We have future contractual payments on land, equipment and office space under various lease commitments totaling $ 65.5 million at December 31, 2025. We expect to pay approximately $ 4.8 million in 2026, $ 4.5 million in 2027, $ 2.9 million in each of 2028 and 2029, $ 2.7 million in 2030, and $ 47.7 million thereafter for these commitments. We have unfunded capital commitments related to our private equity investments totaling $ 48.2  million at December 31, 2025. We have unfunded loan commitments totaling $ 43.9 million at December 31, 2025. We expect to fund the loans in 2026, subject to the satisfaction of certain conditions.
17. Corporate Transformation Costs We have launched a corporate transformation initiative focused on modernization and growth. This includes streamlining our processes through technology and shifting our geographic footprint with a stronger corporate presence in offshore locations and relocation of our principal office from California to Texas. The initiative is intended to transform our corporate functions, improving efficiency and productivity. Corporate transformation costs of approximately $ 4.9 million were incurred for the year ended December 31, 2025. Corporate transformation costs are a component of general and administrative expense in the Consolidated Statements of Income. The following table presents changes in accrued corporate transformation costs and cumulative costs incurred to date: Year Ended December 31, 2025 Severance and Retention Recruitment and Relocation  Other  Total (Amounts in thousands) Balances at December 31, 2024 $ —   $ —   $ —   $ — Costs 2,359   2,022   494   4,875 Cash payments ( 1,405 ) ( 2,022 ) ( 494 ) ( 3,921 ) Balances at December 31, 2025 $ 954   $ —   $ —   $ 954 F-35 PUBLIC STORAGE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2025
18. Subsequent Events On February 12, 2026, the Company announced that Joseph D. Russell, Jr., President, Chief Executive Officer, and a trustee of the Board, notified the Board of his decision to retire from all of his positions effective as of March 31, 2026 (the “Retirement Date”). Subsequent to the Retirement Date, Mr. Russell will provide consulting services to the Company through March 31, 2027 under a retirement and transition agreement pursuant to which he will receive monthly consulting fees equal to $ 400,000 . The Company also announced the Board’s appointment of H. Thomas Boyle, who currently serves as the Company’s Senior Vice President, Chief Financial Officer and Chief Investment Officer, as Chief Executive Officer and trustee to succeed Mr. Russell effective April 1, 2026. In connection with his appointment as CEO, Mr. Boyle’s annual base salary was increased to $ 1.0 million (effective as of April 1, 2026), his 2026 target annual performance-based bonus was increased to 200 % of his base salary, and the aggregate target value of his 2026 annual equity award is $ 10.0 million. Additionally, in connection with his promotion, Mr. Boyle was granted a time-based AO LTIP Unit award in the Company’s Operating Partnership, with a grant date fair value of $ 10.0 million. The AO LTIP Unit award has a conversion price of $ 350 per unit and vests over eight years , with 60 % of the award vesting on the six th anniversary of the grant date and the remaining 40 % vesting ratably over the following two years . The Company further announced the Board’s appointment of Joseph D. Fisher as the Company’s President and Chief Financial Officer effective February 16, 2026. Mr. Fisher has been serving as a consultant for the Company since January 2026 and was previously President, Chief Financial Officer, and Chief Investment Officer at UDR, Inc. Mr. Fisher will participate in the Company’s executive compensation program. He will receive an initial annual base salary of $ 600,000 , he will be eligible to receive a 2026 annual performance-based cash incentive award with a target annual bonus potential of $ 1.4 million, and a 2026 annual equity award with an aggregate target value of $ 4.0 million. Additionally, in connection with his appointment, Mr. Fisher was granted a time-based AO LTIP Unit award in the Company’s Operating Partnership, with a grant date fair value of $ 3.0 million. The AO LTIP Unit award has a conversion price of $ 350 per unit and vests over eight years , with 60 % of the award vesting on the six th anniversary of the grant date and the remaining 40 % vesting ratably over the following two years . On February 10, 2026, the Board appointed Shankh S. Mitra, an independent trustee of the Company, to succeed Ronald L. Havner as the Chairman of the Board, effective as of April 1, 2026. In connection with this transition, the Company entered into agreements to sell to Mr. Mitra and Mr. Havner non-qualified options (“OP Options”) to purchase common units of the Operating Partnership for an aggregate purchase price of $ 25.0 million and $ 5.0 million, respectively. The purchase price was based on the Company’s determination of the fair value of the OP Options using a Monte Carlo Valuation simulation prepared by a third-party valuation firm. The OP Options have an exercise price of $ 350 per unit, will become exercisable upon the six th anniversary of the settlement date, and have a 10-year term. The transactions, which are expected to settle on or before February 20, 2026, were approved by the Audit Committee and the Board of Trustees in accordance with the Company’s policies. On February 10, 2026, the Board approved a change in the Company’s principal office from Glendale, California, to Frisco, Texas, effective immediately. Subsequent to December 31, 2025, we acquired or were under contract to acquire three self-storage facilities across three states with 0.2 million net rentable square feet for $ 20.7 million. F-36 PUBLIC STORAGE SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION (Amounts in thousands, except number of properties) Initial Cost Gross Carrying Amount At December 31, 2025 Description No. of Facilities Net Rentable Square Feet 2025 Encumbrances Land Buildings & Improvements Costs Subsequent to Acquisition Land Buildings Total Accumulated Depreciation Self-storage facilities by market: Los Angeles 233   17,941   $ 187   $ 585,848   $ 1,134,751   $ 687,867   $ 596,216   $ 1,812,250   $ 2,408,466   $ 1,130,816 Dallas/Ft. Worth 221   19,992   —   385,801   2,278,224   312,713   388,232   2,588,506   2,976,738   748,150 Houston 174   14,587   —   289,007   963,575   360,489   288,329   1,324,742   1,613,071   534,986 Chicago 145   9,403   —   158,287   530,281   222,108   161,124   749,552   910,676   505,451 San Francisco 142   9,496   —   248,501   570,134   384,278   265,895   937,018   1,202,913   660,441 Atlanta 122   8,182   1,389   168,081   482,923   150,784   168,444   633,344   801,788   381,481 Washington DC 119   8,443   —   423,176   1,329,933   239,540   438,682   1,553,967   1,992,649   635,368 Orlando/Daytona 117   6,928   —   187,890   652,931   118,690   193,296   766,215   959,511   278,476 New York 108   8,209   —   316,900   768,161   409,256   323,538   1,170,779   1,494,317   687,481 Miami 104   7,969   —   283,795   631,694   214,574   285,688   844,375   1,130,063   497,026 Seattle/Tacoma 102   7,402   —   246,108   634,810   233,019   249,239   864,698   1,113,937   529,836 Denver 76   5,606   —   125,358   362,010   137,085   125,851   498,602   624,453   243,877 Tampa 76   5,288   —   126,757   450,309   110,350   130,071   557,345   687,416   218,135 Philadelphia 72   4,883   —   75,325   341,298   104,459   74,346   446,736   521,082   238,242 Minneapolis/St. Paul 68   5,533   —   128,142   332,631   160,591   131,695   489,669   621,364   235,534 Charlotte 62   4,760   —   89,937   250,135   115,134   97,800   357,406   455,206   207,708 Detroit 54   3,961   —   77,077   289,354   95,458   78,484   383,405   461,889   189,273 Phoenix 53   3,889   —   108,051   367,874   74,946   108,042   442,829   550,871   195,300 Baltimore 52   4,109   —   142,206   798,014   85,384   143,430   882,174   1,025,604   240,590 Portland 51   3,078   —   65,802   233,930   58,237   66,460   291,509   357,969   165,514 Oklahoma City 51   3,712   —   70,646   328,653   38,730   70,646   367,383   438,029   82,258 West Palm Beach 49   3,960   —   162,675   246,483   135,017   163,623   380,552   544,175   210,124 San Antonio 42   3,045   —   58,753   250,276   48,529   58,711   298,847   357,558   120,781 Raleigh 41   2,988   —   94,345   247,524   59,558   95,314   306,113   401,427   120,796 Austin 40   3,128   —   73,198   224,069   66,215   75,720   287,762   363,482   143,275 Sacramento 38   2,291   —   34,758   115,143   48,496   35,242   163,155   198,397   108,401 Columbia 38   2,408   —   46,809   188,845   37,781   47,569   225,866   273,435   71,903 Norfolk 37   2,218   —   48,750   131,950   39,880   48,189   172,391   220,580   104,354 Indianapolis 37   2,440   —   46,160   171,251   33,510   47,160   203,761   250,921   84,753 Columbus 32   2,431   —   55,843   143,208   43,410   55,950   186,511   242,461   77,079 Kansas City 31   2,116   —   20,212   114,080   64,111   20,412   177,991   198,403   87,052 Boston 30   2,079   —   86,790   230,427   47,541   87,356   277,402   364,758   161,041 St. Louis 27   1,738   —   22,546   85,838   50,631   24,295   134,720   159,015   86,864 Las Vegas 27   1,989   —   35,047   148,111   57,543   37,758   202,943   240,701   79,837 Nashville/Bowling Green 26   1,753   —   49,172   142,351   42,585   49,170   184,938   234,108   53,973 Mobile 25   1,491   —   31,428   141,135   17,589   31,255   158,897   190,152   32,106 F-37 PUBLIC STORAGE SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION (Amounts in thousands, except number of properties) Initial Cost Gross Carrying Amount At December 31, 2025 Description No. of Facilities Net Rentable Square Feet 2025 Encumbrances Land Buildings & Improvements Costs Subsequent to Acquisition Land Buildings Total Accumulated Depreciation San Diego 24   2,336   —   89,782   162,043   80,472   92,292   240,005   332,297   143,295 Cincinnati 22   1,439   —   21,126   79,210   33,306   21,044   112,598   133,642   50,828 Memphis 22   1,413   —   27,627   167,899   21,529   28,980   188,075   217,055   45,752 Greensville/Spartanburg/Asheville 18   1,112   —   14,689   79,866   20,378   15,605   99,328   114,933   36,704 Colorado Springs 17   1,164   —   13,667   64,569   30,286   13,664   94,858   108,522   45,570 Charleston 17   1,249   —   29,099   90,950   28,596   30,075   118,570   148,645   45,010 Fort Myers/Naples 17   1,335   —   36,676   121,930   29,170   36,355   151,421   187,776   45,150 Milwaukee 16   1,054   —   13,981   42,149   17,445   13,950   59,625   73,575   42,075 Louisville 16   957   —   24,868   50,185   14,310   24,867   64,496   89,363   29,751 Richmond 16   810   —   21,121   56,202   12,231   20,926   68,628   89,554   33,807 Jacksonville 15   909   —   14,454   47,415   19,250   14,503   66,616   81,119   45,450 Birmingham 15   607   —   6,316   25,567   22,215   6,204   47,894   54,098   35,892 Greensboro 15   917   —   15,590   43,181   22,676   17,679   63,768   81,447   39,591 Chattanooga 15   1,009   —   14,443   58,722   13,990   14,245   72,910   87,155   26,707 Savannah 14   873   —   38,343   63,263   10,889   37,015   75,480   112,495   31,649 Boise 14   1,488   —   44,378   130,087   3,499   44,378   133,586   177,964   15,277 Honolulu 13   994   —   77,115   161,335   25,594   78,033   186,011   264,044   99,429 New Orleans 13   921   —   14,749   76,863   17,035   14,917   93,730   108,647   42,838 Salt Lake City 13   786   —   20,454   41,607   9,767   20,103   51,725   71,828   23,046 Hartford/New Haven 11   693   —   6,778   19,959   30,438   8,443   48,732   57,175   40,710 Omaha 11   936   —   17,965   69,085   7,350   17,965   76,435   94,400   20,667 Cleveland/Akron 11   695   —   7,449   38,402   11,009   7,842   49,018   56,860   20,391 Augusta 11   666   —   11,892   43,128   7,182   11,892   50,310   62,202   14,924 Buffalo/Rochester 9   462   —   6,785   17,954   9,202   6,783   27,158   33,941   20,345 Reno 7   559   —   5,487   18,704   8,137   5,487   26,841   32,328   18,187 Tucson 7   439   —   9,403   25,491   9,999   9,884   35,009   44,893   28,261 Wichita 7   432   —   2,017   6,691   12,338   2,130   18,916   21,046   14,392 Monterey/Salinas 7   324   —   8,465   24,151   8,184   8,455   32,345   40,800   29,297 Dayton 6   360   —   1,700   14,039   6,874   1,699   20,914   22,613   9,916 Roanoke 6   369   —   7,824   35,719   2,625   7,824   38,344   46,168   7,963 Evansville 5   325   —   2,340   14,316   2,831   2,312   17,175   19,487   7,623 Huntsville/Decatur 5   298   —   9,161   13,481   5,204   9,108   18,738   27,846   9,330 Providence 5   284   —   3,813   30,716   5,694   3,813   36,410   40,223   11,202 Lansing 5   291   —   3,293   30,742   3,263   3,293   34,005   37,298   5,791 Fort Wayne 4   271   —   3,487   11,003   5,048   3,487   16,051   19,538   8,197 Palm Springs 3   241   —   8,309   18,065   3,657   8,309   21,722   30,031   16,501 Rochester 3   155   —   2,142   10,787   4,419   2,075   15,273   17,348   6,244 F-38 PUBLIC STORAGE SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION (Amounts in thousands, except number of properties) Initial Cost Gross Carrying Amount At December 31, 2025 Description No. of Facilities Net Rentable Square Feet 2025 Encumbrances Land Buildings & Improvements Costs Subsequent to Acquisition Land Buildings Total Accumulated Depreciation Flint 3   191   —   2,734   19,228   1,696   2,733   20,925   23,658   4,472 Shreveport 2   150   —   817   3,030   3,600   741   6,706   7,447   5,825 Springfield/Holyoke 2   144   —   1,428   3,380   2,813   1,427   6,194   7,621   5,690 Santa Barbara 2   98   —   5,733   9,106   1,296   5,733   10,402   16,135   8,235 Topeka 2   93   —   225   1,419   3,141   225   4,560   4,785   3,588 Joplin 1   56   —   264   904   1,475   264   2,379   2,643   1,906 Syracuse 1   55   —   545   1,279   1,584   545   2,863   3,408   2,436 Modesto/Fresno/Stockton 1   33   —   44   206   1,471   193   1,528   1,721   1,373 Commercial and non-operating real estate —   12,307   19,892   152,699   11,343   173,555   184,898   118,485 3,171   229,439   $ 1,576   $ 5,850,066   $ 18,376,236   $ 5,851,955   $ 5,952,072   $ 24,126,185   $ 30,078,257   $ 11,468,054 Note: Buildings and improvements are depreciated on a straight-line basis over estimated useful lives ranging generally between 5 to 40 years. In addition, disclosures of the number and square footage of our facilities are unaudited. F-39