10-QPeriod: Q3 FY2025

Public Storage Quarterly Report for Q3 Ended Sep 30, 2025

Filed October 29, 2025For Securities:PSAPSA-PRPSA-PFPSA-PGPSA-PHPSA-PIPSA-PJPSA-PMPSA-PNPSA-POPSA-PPPSA-PQPSA-PSPSA-PKPSA-PL

Summary

Public Storage (PSA) reported its financial results for the third quarter and the first nine months of fiscal year 2025. For the third quarter, net income allocable to common shareholders increased by 21.2% to $461.4 million, or $2.62 per diluted share, compared to the same period in 2024. This growth was primarily driven by a significant foreign currency gain and an increase in self-storage Net Operating Income (NOI). For the nine-month period, net income allocable to common shareholders decreased by 13.7% to $1.1 billion, or $6.42 per diluted share. This decrease was largely attributed to substantial foreign currency exchange losses, partially offset by an increase in self-storage NOI. The company continues to execute its growth strategy through acquisitions and development. During the first nine months of 2025, PSA acquired 74 self-storage facilities for $814.6 million. Furthermore, the company is progressing with its solar energy initiative and a corporate transformation program aimed at improving efficiency. Liquidity remains strong, supported by substantial cash on hand, operating cash flow, and an undrawn credit facility, providing ample resources to fund ongoing operations, capital expenditures, and shareholder distributions.

Financial Highlights

33 data points
Beta

Revenue

$1.22B

Net Income

$511.06M

41.8% Net Margin

EPS (Diluted)

$2.62

Total Assets

$20.11B

Cash & Equivalents

$296.46M

Free Cash Flow

$875.09M

Financial Statements
Beta
Revenue$1.22B
Operating Expenses$732.53M
Interest Expense$79.69M
Net Income$511.06M
EPS (Basic)$2.63
EPS (Diluted)$2.62
Shares Outstanding (Basic)175.46M
Shares Outstanding (Diluted)175.88M

Key Highlights

  • 1Third-quarter net income allocable to common shareholders rose 21.2% year-over-year to $461.4 million, or $2.62 per diluted share, driven by foreign currency gains and increased self-storage NOI.
  • 2Nine-month net income allocable to common shareholders decreased 13.7% to $1.1 billion, or $6.42 per diluted share, primarily due to foreign currency exchange losses.
  • 3Total self-storage revenues increased by 2.6% for the third quarter and 2.0% for the nine-month period, driven by growth in non-same store facilities.
  • 4The company acquired 74 self-storage facilities for $814.6 million in the first nine months of 2025, expanding its portfolio.
  • 5Funds From Operations (FFO) per diluted share for the third quarter increased by 13.9% to $4.33, while Core FFO per diluted share saw a 2.6% increase to $4.31.
  • 6Despite a decrease in Same Store Facilities revenue growth for the nine-month period (0.1%), occupancy remained high, with a slight decrease in average occupancy offset by an increase in realized rent per occupied square foot.
  • 7Public Storage maintains a strong liquidity position with $296.5 million in cash and $1.48 billion available on its credit facility, sufficient to cover upcoming debt maturities and capital expenditures.

Frequently Asked Questions

The decrease in net income for the nine months ended September 30, 2025, compared to the same period in 2024, was primarily due to a significant increase in foreign currency exchange losses, largely associated with the company's Euro-denominated notes payable. This was partially offset by an increase in self-storage Net Operating Income (NOI).

During the first nine months of 2025, Public Storage acquired 74 self-storage facilities for $814.6 million and completed development and redevelopment activities costing $268.8 million, adding 1.1 million net rentable square feet. Net operating income from Acquired Facilities and Newly Developed and Expanded Facilities increased significantly, contributing positively to the company's overall performance.

Public Storage maintains a strong liquidity position. As of September 30, 2025, the company had $296.5 million in cash and equivalents. Additionally, it has a $1.5 billion revolving credit facility with approximately $1.48 billion available. The company expects to generate approximately $650 million in retained operating cash flow over the next twelve months. These resources are expected to be sufficient to cover upcoming debt repayments, capital expenditures, and dividend distributions.

The company's Euro-denominated unsecured notes payable expose it to foreign currency fluctuations. The significant losses reported in the nine-month period are primarily due to the change in the U.S. Dollar equivalent of these notes as the Euro depreciated against the U.S. Dollar. Public Storage also holds an investment in Shurgard, a European company, which provides a partial natural hedge against this exposure. The company plans to use proceeds from a recent Euro-denominated note issuance to refinance maturing Euro notes.