Public Storage PSA · USD

15. Segment InformationOur 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 OperationsThe 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 OperationsAncillary Operations reflects the combined operations of our tenant reinsurance, merchandise sales, and third party property management operating segments.

16. Commitments and ContingenciesContingent LossesWe 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 ExposureWe 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.CommitmentsWe 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.

14. Income TaxesAs 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 31,202520242023AmountPercentAmountPercentAmountPercent(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.

12. Share-Based CompensationWe 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 31,202520242023(Amounts in thousands)Self-storage cost of operations$12,003 $12,128 $13,636 Ancillary cost of operations1,276 1,161 1,289 Real estate acquisition and development expense1,660 2,750 1,242 General and administrative24,963 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.Restricted Share Units and LTIP UnitsWe 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.

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 PreparationWe 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.

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 $43.9 million expected to close in the next twelve months, subject to the satisfaction of certain conditions. As of December 31, 2025 and 2024, none of the notes receivable were in past-due or nonaccrual status and the allowance for expected credit losses was immaterial.8. Notes PayableOur notes payable (all of which were issued by PSOC), are reflected net of issuance costs (including original issue discounts), which are amortized as interest expense on the effective interest method over the term of each respective note. Our notes payable at December 31, 2025 and December 31, 2024 are set forth in the tables below:Amounts at December 31, 2025Amounts at December 31, 2024Coupon RateEffective RatePrincipalUnamortized CostsBook ValueFair ValueBook ValueFair Value(Dollar amounts in thousands)U.S. Dollar Denominated Unsecured DebtNotes due July 25, 2025SOFR+0.60%4.940%$— $— $— $— $399,537 $400,714 Notes due February 15, 20260.875%1.030%500,000 (99)499,901 497,958 499,160 479,639 Notes due November 9, 20261.500%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, 20273.094%3.218%500,000 (908)499,092 494,206 498,564 480,904 Notes due May 1, 20281.850%1.962%650,000 (1,567)648,433 620,402 647,756 592,876 Notes due November 9, 20281.950%2.044%550,000 (1,375)548,625 520,843 548,144 494,867 Notes due January 15, 20295.125%5.260%500,000 (1,775)498,225 516,660 497,639 506,074 Notes due May 1, 20293.385%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, 20312.300%2.419%650,000 (3,642)646,358 588,030 645,673 555,387 Notes due November 9, 20312.250%2.322%550,000 (2,078)547,922 490,580 547,570 459,682 Notes due August 1, 20335.100%5.207%700,000 (4,392)695,608 724,886 695,028 695,171 Notes due July 1, 20355.000%5.

7. Credit FacilityOn 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.

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 $43.9 million expected to close in the next twelve months, subject to the satisfaction of certain conditions. As of December 31, 2025 and 2024, none of the notes receivable were in past-due or nonaccrual status and the allowance for expected credit losses was immaterial.8. Notes PayableOur notes payable (all of which were issued by PSOC), are reflected net of issuance costs (including original issue discounts), which are amortized as interest expense on the effective interest method over the term of each respective note. Our notes payable at December 31, 2025 and December 31, 2024 are set forth in the tables below:Amounts at December 31, 2025Amounts at December 31, 2024Coupon RateEffective RatePrincipalUnamortized CostsBook ValueFair ValueBook ValueFair Value(Dollar amounts in thousands)U.S. Dollar Denominated Unsecured DebtNotes due July 25, 2025SOFR+0.60%4.940%$— $— $— $— $399,537 $400,714 Notes due February 15, 20260.875%1.030%500,000 (99)499,901 497,958 499,160 479,639 Notes due November 9, 20261.500%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, 20273.094%3.218%500,000 (908)499,092 494,206 498,564 480,904 Notes due May 1, 20281.850%1.962%650,000 (1,567)648,433 620,402 647,756 592,876 Notes due November 9, 20281.950%2.044%550,000 (1,375)548,625 520,843 548,144 494,867 Notes due January 15, 20295.125%5.260%500,000 (1,775)498,225 516,660 497,639 506,074 Notes due May 1, 20293.385%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, 20312.300%2.419%650,000 (3,642)646,358 588,030 645,673 555,387 Notes due November 9, 20312.250%2.322%550,000 (2,078)547,922 490,580 547,570 459,682 Notes due August 1, 20335.100%5.207%700,000 (4,392)695,608 724,886 695,028 695,171 Notes due July 1, 20355.000%5.