PSAPublic Storage

In November 2024, September 2025, the FASB issued ASU 2024-03, Income Statement 2025-06, Intangibles - Reporting Comprehensive Income Goodwill and Other - Expense Disaggregation Disclosures Internal-Use Software (Subtopic 220-40) that requires 350-40), to amend the disclosure criteria for capitalizing internal-use software costs. This update is intended to modernize the accounting for software costs by replacing the legacy guidance under which capitalization is based on the nature of additional information related to certain costs and expenses, including amounts of inventory purchases, employee compensation, the project development stage. This update requires software capitalization to begin when (1) management has authorized and depreciation committed funding to the software project and amortization included in each income statement line item. The guidance also requires disclosure of (2) it is probable that the total amount of selling expenses project will be completed and the entity’s definition selling expenses. software will be used to perform the function intended. The guidance is effective for annual periods beginning after December 15, 2026 2027 and interim periods within fiscal years beginning after December 15, 2027. those annual reporting periods. The guidance may be applied prospectively prospectively, retrospectively, or retrospectively. via a modified prospective approach. Early adoption is permitted. We are currently evaluating The company adopted these amendments effective January 1, 2026. The adoption did not have a material impact on the impact of this ASU on our Consolidated Financial Statements and related disclosures. Company’s consolidated financial statements.

Our use of or inability to safely and effectively adopt and deliver new technological capabilities and enhancements in line with strategic objectives, including artificial intelligence and machine learning, may put us at a competitive disadvantage; cause us to miss opportunities to innovate, achieve efficiencies, or improve the customer experience; or adversely impact our business, reputation, results of operations, and financial condition. Legislative activity in the privacy area may also result in new laws that are applicable For example, we have begun to us and that may hinder our business, including by restricting our use of customer data or otherwise regulating the use of algorithms and automated processing in ways that could materially affect our business or lead to significant increases in the cost of compliance. In addition, the use of emerging technologies, including artificial intelligence, entails risks including risks relating to the possibility of intellectual property infringement or misappropriation; data privacy; new or enhanced governmental or regulatory scrutiny, requirements, litigation, or other liability; ethical concerns; negative consumer perceptions as to automation and artificial intelligence; or other complications or liabilities that could adversely affect our business, reputation, results of operations, or financial results.

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, 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.

We have an unfunded loan commitment capital commitments related to our private equity investments totaling $ 12.5 48.2 million at December 31, 2024. 2025. We have unfunded loan commitments totaling $ 43.9 million at December 31, 2025. We expect to fund the loan loans in 2025 2026, subject to the satisfaction of certain conditions.