Public Storage (PSA)

CIK: 0001393311. SIC: 6798 Real Estate Investment Trusts. Latest 10-K as of: 2026-02-12.

SIC breadcrumb: Finance, Insurance, And Real Estate > Holding And Other Investment Offices > SIC 6798 Real Estate Investment Trusts

SEC company page: https://www.sec.gov/edgar/browse/?CIK=1393311. Latest filing source: 0001628280-26-007696.

Selected Fundamentals

Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-12. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001393311.json. Derived margins are computed from the extracted annual SEC facts.

Flow metrics use full-year FY periods from 10-K/10-K/A filings; balance-sheet metrics use FY-end instants. Missing metrics are omitted rather than fabricated.

Financial Charts

Macro Cross-References

• CPIAUCSL - Consumer Price Index for All Urban Consumers: All Items in U.S. City Average
• UNRATE - Unemployment Rate
• FEDFUNDS - Federal Funds Effective Rate
• CES0500000003 - Average Hourly Earnings of All Employees, Total Private
• DFEDTARU - Federal Funds Target Range - Upper Limit
• DFEDTARL - Federal Funds Target Range - Lower Limit
• DGS3MO - Market Yield on U.S. Treasury Securities at 3-Month Constant Maturity
• DGS2 - Market Yield on U.S. Treasury Securities at 2-Year Constant Maturity
• DGS10 - Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
• DGS30 - Market Yield on U.S. Treasury Securities at 30-Year Constant Maturity
• T10Y2Y - 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity
• CPILFESL - Consumer Price Index for All Urban Consumers: All Items Less Food and Energy
• CPIUFDSL - Consumer Price Index for All Urban Consumers: Food
• CPIENGSL - Consumer Price Index for All Urban Consumers: Energy
• CUSR0000SAH1 - Consumer Price Index for All Urban Consumers: Shelter
• PCEPI - Personal Consumption Expenditures: Chain-type Price Index
• PCEPILFE - Personal Consumption Expenditures Excluding Food and Energy: Chain-type Price Index
• PPIACO - Producer Price Index by Commodity: All Commodities
• T10YIE - 10-Year Breakeven Inflation Rate
• U6RATE - Total Unemployed, Plus All Marginally Attached Workers Plus Total Employed Part Time for Economic Reasons
• PAYEMS - All Employees, Total Nonfarm
• CIVPART - Labor Force Participation Rate
• EMRATIO - Employment-Population Ratio
• UNEMPLOY - Unemployed
• CE16OV - Employment Level
• ICSA - Initial Claims
• JTSJOL - Job Openings: Total Nonfarm
• JTSQUR - Quits: Total Nonfarm
• GDPC1 - Real Gross Domestic Product
• A191RL1Q225SBEA - Real Gross Domestic Product: Percent Change from Preceding Period
• INDPRO - Industrial Production: Total Index
• TCU - Capacity Utilization: Total Index
• HOUST - New Privately-Owned Housing Units Started: Total Units
• PERMIT - New Privately-Owned Housing Units Authorized in Permit-Issuing Places: Total Units
• RSAFS - Advance Retail Sales: Retail Trade
• PCE - Personal Consumption Expenditures
• DSPIC96 - Real Disposable Personal Income
• PSAVERT - Personal Saving Rate
• M2SL - M2
• BOPGSTB - U.S. International Trade in Goods and Services: Balance

Latest 10-K MD&A

Extracted between Item 7 and the next Item 7A/8 heading after HTML sanitization. Confidence: high. Filing date: 2026-02-12. Report date: 2025-12-31.

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,

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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.

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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.

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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.

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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 

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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.

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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 

%

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(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.

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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.

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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.

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