AddedRisk Factors
If we fail to successfully execute our recent leadership succession, we may struggle to effectively execute our strategic plan.
PSAPublic Storage
These forward-looking statements involve known and unknown risks and uncertainties, which may cause our actual results and performance to be materially different from those expressed or implied in the forward-looking statements. 10-K, Item 1
- Employees
- 5,770
- Headquarters
- Frisco, TX
- Next results
- around Feb 11, 2027
10-K 0001628280-26-007696 (2026-02-12) vs 10-K 0001393311-25-000036 (2025-02-24)
| Section | Compared text | Words now | Changed |
|---|---|---|---|
| Risk Factors | Item 1A | 7,497 | 9.5% |
| MD&A | Item 7 | 9,300 | 22.4% |
| Legal Proceedings | Item 3, via Note 16 – Commitments and Contingencies | 355 | 25.3% |
| Accounting Policies | 10-K text, Note 2 – Basis of Presentation and Summary of Significant Accounting Policies | 3,273 | 8.9% |
The redline: what was cut and what was added
In each section, the paragraph that changed most, marked against last year's 10-K:
cut words struck through, new words highlighted and underlined.
Accounting Policies 180 words changed in this paragraph; it is 36% similar to last year's version.
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.
Source: 10-K text, Note 2 – Basis of Presentation and Summary of Significant Accounting Policies, 10-K 0001628280-26-007696 vs 10-K text, Note 2 – Basis of Presentation and Summary of Significant Accounting Policies, 10-K 0001393311-25-000036
Risk Factors 133 words changed in this paragraph; it is 47% similar to last year's version.
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.
Source: Item 1A, 10-K 0001628280-26-007696 vs Item 1A, 10-K 0001393311-25-000036
MD&A 127 words changed in this paragraph; it is 73% similar to last year's version.
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.
Source: Item 7, 10-K 0001628280-26-007696 vs Item 7, 10-K 0001393311-25-000036
Legal Proceedings 24 words changed in this paragraph; it is 68% similar to last year's version.
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.
Source: Item 3, via Note 16 – Commitments and Contingencies, 10-K 0001628280-26-007696 vs Item 3, via Note 14 – Commitments and Contingencies, 10-K 0001393311-25-000036
Every change, by type
Sentences and paragraphs of PSA's Risk Factors and MD&A, 10-K 2026-02-12 against 10-K 2025-02-24. Each links to the text at sec.gov.
Quiet changes are sentences kept from last year with one to four words changed, at least one of them a hedge, a modal or a qualifier
(may, could, will, not, significant, material…). A year or date rolling forward is not counted.
The full word list
adverse, adversely, all, although, anticipate, anticipates, any, approximately, believe, believes, can, cannot, certain, could, expect, expects, generally, however, if, intend, intends, largely, likely, many, material, materially, may, might, most, must, never, no, not, possible, primarily, probable, should, significant, significantly, some, substantial, substantially, unlikely, will, would
AddedRisk Factors
We recently announced leadership changes, including a change in our Chairman of the Board, our President and Chief Executive Officer and our Chief Financial Officer. Although these changes were made pursuant to the Board’s succession planning efforts, there is no guarantee that the transition to new leadership will be executed successfully. Failure to successfully implement these successions may result in disruptions in the execution of our strategic plan. Failure to successfully implement future succession plans for other key employees may leave us vulnerable to retirements and turnover.
AddedRisk Factors
We may record losses as a result of the bankruptcy, insolvency, or other credit failure of the borrowers under our
AddedRisk Factors
bridge lending financing program. In that case, our revenues and results of operations may be materially and
AddedRisk Factors
Although we conduct due diligence and aim to carefully evaluate the risks associated with this debt and other investments, we could incur losses from our lending decisions, which includes subjective and complex judgments and forecasts of economic conditions and how these economic predictions might impair the ability of our borrowers to operate their business and/or make all required payments. For example, volatility of the capital and credit markets, increased interest rates, lower demand for self-storage and general economic conditions may adversely affect the solvency, creditworthiness or operations of our borrowers. If our forecasts prove incorrect, or if any of our borrowers fail to perform as expected, we may incur losses from these bridge loans which could have a material adverse effect on our operating revenue and results of operations.
AddedRisk Factors
the end of its taxable year ended December 31, 2022, as a result of our substantial ownership interest in it prior to the
AddedRisk Factors
closing of the PSB merger with an unaffiliated third party. We believe we have qualified as a REIT and we intend to continue to maintain our REIT status.
RemovedRisk Factors
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RewordedRisk Factors
RewordedRisk Factors
RewordedRisk Factors
Legislative and regulatory activity in the privacy area related to information technology, including related to privacy, may also result in new laws that are applicable to us and that may hinder our business, including by restricting our use of customer data or otherwise regulating the use of algorithms and automated processing in ways that could materially affect our business or lead to significant increases in the cost of compliance.
RewordedRisk Factors
We maintain an “at the market” offering program under which we may enter into forward sale agreements from time to time to sell common shares and, subject to certain conditions, we have the right to elect physical, cash or net share settlement under these agreements at any time and from time to time, in part or in full.
RewordedRisk Factors
Our property tax expense, which totaled approximately $452.0 million during the year ended December 31, 2024, generally depends upon the assessed value of our real estate facilities as determined by assessors and government agencies and, accordingly, could be subject to substantial increases if such agencies change their valuation approaches or opinions or if new laws are enacted, especially if new approaches are adopted or laws are enacted that result in increased property tax assessments in states or geographies where we have a high concentration of facilities.
RewordedRisk Factors
Although Public Storage currently wholly-owns (directly or indirectly) PSA OP and PSOC, and therefore exercises exclusive control over PSA OP and PSOC, including the authority to cause PSA OP and PSOC to make distributions, in connection with our future acquisition activities or otherwise, PSA OP may issue additional units of limited partnership to third parties, and these limited partners may negotiate for certain rights.
RewordedRisk Factors
Dividends paid by REITs to such stockholders are generally not eligible for that rate, but under current tax law, rate but, such stockholders may deduct up to 20% of ordinary dividends (i.e., dividends not designated as capital gain dividends or qualified dividend income) received from a REIT for taxable years beginning before January 1, 2026.
RewordedRisk Factors
RewordedRisk Factors
In addition, the use of emerging technologies, including artificial intelligence, entails risks including risks relating to the possibility of intellectual property infringement or misappropriation; data privacy; quality control related to artificial intelligence outputs; new or enhanced governmental or regulatory scrutiny, requirements, litigation, or other liability; ethical concerns; negative consumer perceptions as to automation and artificial intelligence; or other complications or liabilities that could adversely affect our business, reputation, results of operations, or financial results.
RewordedRisk Factors
Our use of or failure to adopt advancements in information technology technology, such as artificial intelligence, may hinder or prevent us from achieving strategic objectives or otherwise harm our business.
RewordedRisk Factors
Natural disasters, such as earthquakes, fires, hurricanes, drought, extreme temperatures and floods, terrorist attacks, civil unrest, and other events that damage our facilities or our customers’ tenants’ property, or that make our facilities temporarily unavailable, have in the past and may in the future adversely impact our business and financial results.
RewordedRisk Factors
Interest rates remain elevated compared to recent years and may increase. years.
Quiet changesRisk Factors
There is also may be an increasing influx of capital from outside financing sources driving more money, development, and supply into the industry.
AddedMD&A
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
AddedMD&A
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.
AddedMD&A
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
AddedMD&A
As of December 31, 2025, we have ongoing development and expansion projects at an estimated cost of approximately $609.9 million.
AddedMD&A
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.
AddedMD&A
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.
AddedMD&A
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)
AddedMD&A
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.
AddedMD&A
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.
AddedMD&A
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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RewordedMD&A
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 and resolutions, casualties, contingencies, due diligence costs incurred in pursuit of strategic transactions, realized or unrealized gain or loss on private equity investments, reorganization costs, acquisition integration costs, amortization income tax benefits from the sale of acquired non real estate-related intangibles, solar tax credits, a cash and stock hiring bonus for a new senior executive, executive and our equity share amortization of tax effect of a change in tax status, unrealized gain on derivatives, merger transaction costs and senior executive severance from our equity investees. acquired non real estate-related intangibles.
RewordedMD&A
General and administrative expense increased $26.0 million remained relatively unchanged in 2024, 2025, as compared to 2023 2024 due primarily to (i) ) an increase in corporate management costs driven primarily by higher payroll costs and costs, (ii) an increase in license and maintenance support corporate transformation costs related to our recently implemented offset by (iii) a decrease in IT applications. costs as a result of a successful ERP implementation in the prior year.
RewordedMD&A
As described below, our current committed cash requirements consist of (i) $140.7 $20.7 million in property acquisitions currently under contract, (ii) $433.5 $415.6 million of remaining spending on our current development pipeline, which will be incurred primarily in the next 18 to 24 months, and (iii) unfunded loan commitments of $43.9 million under the bridge lending program expected to close in the next twelve months, (iv) approximately $651 million $1.2 billion in scheduled principal repayments on our unsecured notes in the next twelve months. months, and (v) $48.2 million in unfunded capital commitments related to our private equity investments.
RewordedMD&A
The decrease increase in realized annual rent per occupied square foot in 2024 2025 as compared to 2023 2024 was due to cumulative rate increases to existing long-term tenants over the past twelve months partially offset by a 11.6% decrease in average rates per square foot charged to new tenants moving in over the past twelve months, partially offset by cumulative rate increases to existing long-term tenants over the same period.
RewordedMD&A
In 2024, 2025, net income allocable to our common shareholders was $1.873 $1.6 billion or $9.01 per diluted common share, compared to $1.9 billion or $10.64 per diluted common share, compared to $1.949 billion or $11.06 per diluted common share in 2023, 2024, representing a decrease of $76.1 $287.1 million or $0.42 $1.63 per diluted common share.
RewordedMD&A
Revenues for the Same Store Facilities decreased 0.7% or $26.7 million remained relatively unchanged in 2024 2025 as compared to 2023, 2024, due primarily to a decline in occupancy and lower higher realized annual rent per occupied square foot. foot partially offset by a decline in average occupancy.
RewordedMD&A
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RewordedMD&A
The increase of interest expense in 2024 2025 as compared to 2023 is 2024 was due to the issuance of $2.2 billion of notes payable in July 2023 and the increase of Compounded SOFR on our variable rate unsecured notes. U.S.
RewordedMD&A
RewordedMD&A
Cost of operations for the Same Store Facilities increased by 2.4% 1.8% or $20.6 $16.6 million in 2024 2025 as compared to 2023, 2024, due primarily to increased property tax expense, marketing expense, expense and repairs and maintenance expense, indirect cost of operation partially offset by decreased centralized management costs marketing expenses and on-site property manager payroll expense.
RewordedMD&A
Utility expense increased 1.0% in 2025 and decreased 3.9% and 2.0% 4.2% in 2024 and 2023, respectively, in each case 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. usage, partially offset by increased utility rates in 2025.
Quiet changesMD&A
We expect property tax expense to grow approximately 5% in 2025 2026 due primarily to higher assessed values.
Quiet changesMD&A
Future acquisition volume is likely to may be impacted by cost of capital and overall macro-economic uncertainties.
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