01—Abstract
Summary
Summary of the 10-K filed February 12, 2026. Cited figures are marked; the original filing is the authoritative source.
Public Storage (PSA) reported a year of flat core performance and sharply lower GAAP earnings in 2025.
Same Store revenues were essentially unchanged at $3.76 billiona (up 0.0%), with average occupancy down 0.4% to 92.0% and realized rent per occupied square foot up 0.5% to $22.54. Same Store cost of operations rose 1.8%, driven by property taxes (+5.3%), so Same Store NOI fell 0.5%. Growth came from the acquisition and development pipeline: Acquired Facilities NOI rose 34.2% and Newly Developed and Expanded Facilities NOI rose 15.6%.
Net income allocable to common shareholders fell 15.3% to $1.59 billionb, or $9.01 per diluted share, mainly because of a $215.6 million foreign currency loss on Euro-denominated notes. Management's measure of recurring performance, Core FFO, rose 1.7% to $2.99 billion, or $16.97 per share (up 1.8%), while reported FFO per share fell 8.0% to $15.81. Management expects Same Store revenues in 2026 to be modestly below 2025 levels, citing softer move-in demand and rising property taxes.
It expects on-site payroll to decline and retained operating cash flow to reach about $605 millionc. The balance sheet remains strong: $318 million of cash, a $1.5 billion undrawn revolver, a weighted average debt rate of about 3.2%, and an 'A' senior unsecured rating from S&P. Roughly $1.2 billion of unsecured notes mature in 2026, which management plans to refinance.
Leadership is changing materially. CEO and President Joseph Russell retires March 31, 2026, and Chief Financial and Investment Officer H. Thomas Boyle becomes CEO on April 1, 2026.
Shankh Mitra succeeds Ronald Havner as Chairman, and Joseph Fisher joins as President and CFO. The company is also running a corporate transformation program that includes relocating its principal office from California to Texas. Investors should weigh the strong balance sheet and stable core cash flow against weak same-store growth, rising property-tax pressure, currency-driven GAAP volatility, and management transition risk.
02—Key points
Key Highlights
- Same Store revenue was flat at $3.76 billion, with rent per occupied square foot up 0.5% offset by occupancy down 0.4% to 92.0%.
- Same Store NOI declined 0.5% as cost of operations rose 1.8%, with property taxes up 5.3% to $378.3 million.
- Core FFO rose 1.7% to $2.99 billion ($16.97 per diluted share, up 1.8%). Reported FFO per share fell 8.0% to $15.81.
- GAAP net income to common shareholders fell 15.3% to $9.01 per diluted share, driven by a $215.6 million foreign currency loss on Euro-denominated notes.
- Acquired Facilities NOI grew 34.2% after 87 acquisitions in 2025 for $945.6 million, and Newly Developed and Expanded Facilities NOI grew 15.6%.
- Liquidity is strong: $318.1 million of cash, a $1.5 billion undrawn revolver, a 3.2% weighted average debt rate, and about $605 million of expected retained cash flow in 2026. About $1.2 billion of unsecured notes mature in 2026.
- Leadership transition: CEO Joseph Russell retires March 31, 2026, and CFO/CIO H. Thomas Boyle becomes CEO April 1, 2026. Shankh Mitra becomes Chairman, and Joseph Fisher joins as President and CFO.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2025filed February 12, 2026Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $4.82B$4.70B | +2.7% |
| Operating Expenses | $2.89B$2.80B | +3.4% |
| Interest Expense | $304.50M$287.40M | +5.9% |
| Net Income | $1.78B$2.07B | −13.9% |
| EPS (Basic) | $9.04$10.68 | −15.4% |
| EPS (Diluted) | $9.01$10.64 | −15.3% |
| Shares Outstanding (Basic) | 175.45M175.35M | +0.1% |
| Shares Outstanding (Diluted) | 175.90M176.04M | −0.1% |
05—Questions
Frequently Asked Questions
Is Public Storage's core business growing?
Only modestly. Same Store revenue was flat in 2025 and Same Store NOI fell 0.5%, because occupancy slipped and property-tax and other costs rose. Growth came mainly from newly acquired and newly developed facilities, and management expects Same Store revenue in 2026 to be modestly below 2025.
Why did GAAP earnings fall while Core FFO rose?
The main driver was a $215.6 million foreign currency loss on Euro-denominated notes, which is a non-cash item that Core FFO excludes. Core FFO also excludes some one-time items such as corporate transformation costs. Core FFO rose 1.8% per share, which better reflects operating performance, although it is a non-GAAP measure.
Is the dividend and balance sheet at risk?
The filing shows no immediate stress. Retained operating cash flow was $566 million in 2025 and is expected to reach about $605 million in 2026, and the company carries $318 million of cash plus a $1.5 billion undrawn revolver. The main watch items are refinancing about $1.2 billion of 2026 maturities and the $194.7 million annual preferred dividend requirement, which management says it plans to fund through operations and new debt.
What do the leadership changes mean for investors?
Joseph Russell, who has led the company since 2019, retires March 31, 2026. He is succeeded as CEO by CFO and CIO H. Thomas Boyle, and Joseph Fisher joins as President and CFO. The filing also discloses corporate transformation, including relocating the principal office from California to Texas, with $15 to $20 million in costs over three years and expected savings of $3 to $5 million per year. Execution risk is elevated during the transition.
06—Continue