Financial Analysis

Acquisitions On July 22, 2026, the Company closed its merger (the Merger) with National Storage Affiliates Trust (NSA), a Maryland real estate investment trust (NSA), listed on the New York Stock Exchange, in an all-stock transaction. Under the terms of the Merger, NSA common shareholders and holders of Class A units of the NSA operating partnership received 0.1400 of a share of common stock (or OP Unit, as applicable) of the Company for each issued and outstanding common share (or partnership unit) of NSA they owned. The Company issued (i) approximately 11,200,000 common shares to former holders of NSA common shares and outstanding NSA equity awards, (ii) 9,569,557 Series T Preferred Shares to former holders of NSA Series A Preferred Shares, (iii) 5,668,128 Series U Preferred Shares to former holders of NSA Series B Preferred Shares, (iv) approximately 4,100,000 OP Units to former holders of NSA OP Units, and (v) 660,371 Series T-1 Preferred Units to former holders of NSA OPs Series A-1 Preferred Units. At closing, the Company retired NSAs existing credit facilities and bank debt and paid off NSAs various senior unsecured notes, while assuming certain existing mortgage debt. NSAs portfolio includes more than 1,000 properties, 69 million rentable square feet, and 550,000 units across 37 states and Puerto Rico. In connection with the Merger, Public Storage and certain investors of NSA formed a joint venture consisting of certain properties acquired from NSA. Public Storage wil …

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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 June 30, 2026, there were approximately 1.6 million certificates held by self-storage customers under the program, representing aggregate coverage of approximately $7.5 billion. Commitments We have construction com …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Notes Receivable We offer financing, typically in the form of bridge loans, to third-party self-storage owners for operating properties that we manage. The 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 June 30, 2026 and December 31, 2025, we had notes receivable of $173.3 million and $142.1 million, respectively, with average annual interest rates of 7.6% and 7.9%, respectively. At June 30, 2026, we had unfunded loan commitments of $44.3 million expected to close in the next twelve months, subject to the satisfaction of certain conditions. As of June 30, 2026 and December 31, 2025, none of the notes receivable were in past-due or nonaccrual status and the allowance for expected credit losses was immaterial. 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 June 30, 2026 and December 31, 2025 are set forth in the tables below: June 30, 2026 December 31, 2025 Coupon Rate Effective Rate Amount Fair Value Amount Fair Value (Dollar amounts in thousands) U.S. Dollar Denominated Unsecured Debt Notes due February 15, 2026 0.875% 0.000% $ $ $ 500,000 $ 497,958 Notes due November 9, 2026 1.500% 1.640% 650,000 643,625 650,000 636,828 Notes due …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

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. Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (Amounts in thousands) Self-storage cost of operations $ 3,130 $ 2,965 $ 6,099 $ 6,096 Ancillary cost of operations 380 338 731 673 Real estate acquisition and development expense 260 259 344 1,113 General and administrative 9,020 7,059 17,504 13,022 Total $ 12,790 $ 10,621 $ 24,678 $ 20,904 As of June 30, 2026, there was $103.5 million of total unrecognized compensation cost related to share-based compensation arrangements. This cost is expected to be recognized over a weighted-average period of three years.

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Goodwill and Other Intangible Assets Goodwill and other intangible assets consisted of the following: At June 30, 2026 At December 31, 2025 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 1,082,619 (1,039,281) 43,338 1,071,488 (1,004,542) 66,946 Total goodwill and other intangible assets $ 1,267,286 $ (1,039,281) $ 228,005 $ 1,256,155 $ (1,004,542) $ 251,613 Finite-lived intangible assets consist primarily of acquired customers in place. Amortization expense related to intangible assets subject to amortization was $15.5 million and $34.7 million for the three and six months ended June 30, 2026, respectively, and $20.5 million and $43.8 million for the same periods in 2025. During the six months ended June 30, 2026, intangibles increased $11.1 million, in connection with the acquisition of real estate facilities (Note 4). The estimated future amortization expense for our finite-lived intangible assets at June 30, 2026 is as follows: Year Amount (Amounts in Thousands) Remainder of 2026 $ 24,228 2027 14,103 2028 1,546 2029 229 2030 212 Thereafter 3,020 Total $ 43,338 …

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"Summary of Significant Accounting Policies There have been no significant changes to the Company's significant accounting policies described in Note 2, Basis of Presentation and Summary of Significant Accounting Policies , in Notes to Consolidated Financial Statements included in Item 8 of Part II of the Company's Annual Report on Form 10-K for the year ended December 31, 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 entitys 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."

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Related Party Transactions At June 30, 2026, Tamara Hughes Gustavson, a current member of our Board, held less than a 0.1% equity interest in, and is a manager of, PS Canada, a company that owns 68 self-storage facilities in Canada. Ms. Gustavsons adult children, own the remaining equity interest in PS Canada. 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. Our subsidiaries reinsure risks relating to loss of goods stored by customers in these facilities, and have received premium payments of approximately $1.0 million for both of the six months ended June 30, 2026 and 2025. As described in Note 3, on June 22, 2026, we entered into an agreement to acquire PS Canada. The transaction is currently expected to close in the third quarter of 2026, subject to the satisfaction of customary closing conditions. Throughout all periods presented, we had an approximate 35% equity interest in Shurgard. During the six months ended June 30, 2026 and 2025, we received $2.7 million and $2.4 million, respectively, of trademark license fees that Shurgard pays to us for the use of the Shurgard trademark. We eliminated $0.9 million and $0.8 million of intra-entity profits and losses for the six months ended June 30, 2026 and 2025, respectively, representing our equity share of the trademark license fees. We classify the remaining license fees we receive from Shurgard as interest …

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Corporate Transformation Costs In 2025, we 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 executive office from California to Texas. The initiative is intended to transform our corporate functions, improving efficiency and productivity. Corporate transformation costs of approximately $6.9 million and $1.8 million were incurred for the six months ended June 30, 2026 and 2025, respectively. Corporate transformation costs consisting of Employee Related and Real Estate Related expenses are a component of general and administrative expense in the Consolidated Statements of Income. Employee Related costs primarily consist of termination benefits provided to employees who have been involuntarily terminated, duplicate payroll costs and retention bonuses incurred during transition periods. Real Estate Related and Other costs primarily consist of accelerated depreciation and consulting fees. The following table presents changes in accrued corporate transformation costs and cumulative costs incurred during the six months ended June 30, 2026: Six Months Ended June 30, 2026 Employee Related Real Estate Related and Other Total (Amounts in thousands) Balances at December 31, 2025 $ 954 $ $ 954 Costs 2,313 4,619 6,932 Cash payments and other adjustments (1,929) (4,619) (6 …

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Segment Information Our operating segments reflect the significant components of our operations where discrete financial information is evaluated separately by our 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) 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 …

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"Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation We have prepared the accompanying interim consolidated financial statements in accordance with U.S. GAAP as set forth in the Accounting Standards Codification of the Financial Accounting Standards Board, and in conformity with the rules and regulations of the Securities and Exchange Commission (SEC). In our opinion, the interim consolidated financial statements presented herein reflect all adjustments, primarily of a normal recurring nature, that are necessary to present fairly the interim consolidated financial statements. Because they do not include all of the disclosures required by GAAP for complete annual financial statements, these interim consolidated financial statements should be read together with the audited Consolidated Financial Statements and related Notes included in the Companys Annual Report on Form 10-K for the year ended December 31, 2025. Certain amounts previously reported in our Statements of Cash Flows have been reclassified to conform to the June 30, 2026 presentation, with respect to the major types of capital expenditures in the cash flows from investing activities section. The reclassifications did not affect the subtotals for cash flows from operating, investing or financing activities. Disclosures of the number and square footage of facilities, as well as the number and coverage of tenant reinsurance policies are unaudited and outside the scope of our indep …

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Shareholders Equity Preferred Shares At June 30, 2026 and December 31, 2025, we had the following series of Cumulative Preferred Shares (Preferred Shares) outstanding: At June 30, 2026 At December 31, 2025 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 a …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

Subsequent Events On July 20, 2026, PSOC issued $900 million aggregate principal amount of senior notes at an effective interest rate of 4.855%, including $400 million aggregate principal amount of fixed rate senior notes bearing interest at an annual rate of 4.700% maturing on February 1, 2032 and $500 million aggregate principal amount of fixed rate senior notes bearing interest at an annual rate of 5.150% maturing on August 15, 2036. The senior notes are guaranteed by Public Storage. We received $886 million of net proceeds from the issuance. On July 22, 2026, the Company closed its merger with NSA Trust in an all-stock transaction. See Note 3 Acquisitions for details. As of July 29, 2026 we had $800 million of commercial paper outstanding with a weighted average maturity of eight days. Subsequent to June 30, 2026, we acquired or were under contract to acquire 21 self-storage facilities across six states with 1.5 million net rentable square feet for $211.7 million. Subsequent to June 30, 2026, we entered into forward sales agreements under our ATM program for a total of 370,731 common shares representing expected net proceeds of $120.8 million (when settled). Unsettled forward sales agreements under our ATM program through July 29, 2026 total 796,009 common shares representing expected net proceeds of $258.2 million (when settled). …

SubsequentEventsTextBlock · excerpt; the full note is in the filing