Public Storage Reports Results for the Fourth Quarter and Year Ended December 31, 2024

Public Storage (NYSE:PSA) announced today operating results for the fourth quarter and year ended December 31, 2024.

"Our fourth quarter performance reflected broad operational stabilization across the portfolio," said Joe Russell, President and Chief Executive Officer. "In the new year, we are inspired by the strength of the Los Angeles community in response to the fires and are fully supporting impacted customers and team members. Due to the associated pricing restrictions, our guidance anticipates an approximate $0.23 per share impact to Core FFO in 2025 while portfolio operations outside of Los Angeles continue to improve. Our completed Property of Tomorrow enhancement program, industry-leading transformation initiatives, sizeable and high-growth non-same store pool, and growth-oriented balance sheet have us well positioned for improving fundamentals and increased transaction market activity moving forward."

Highlights for the Three Months Ended December 31, 2024

• Reported net income allocable to common shareholders of $3.21 per diluted share.

• Reported core FFO allocable to common shareholders ("Core FFO") of $4.21 per diluted share.

• Achieved 79.2% Same Store (as defined below) direct net operating income margin.

• Acquired 17 self-storage facilities with 1.3 million net rentable square feet for $221.2 million. Subsequent to December 31, 2024, we acquired or were under contract to acquire nine self-storage facilities with 0.7 million net rentable square feet, for $140.7 million.

• Opened three newly developed facilities and completed various expansion projects, which together added 0.4 million net rentable square feet at a cost of $80.9 million. At December 31, 2024, we had various facilities in development and expansion expected to add 4.0 million net rentable square feet at an estimated cost of $741.6 million.

• Issued 184,390 of our common shares on the open market through our "at the market" offering program for aggregate net proceeds of approximately $60.3 million in cash.

Highlights for the Year Ended December 31, 2024

• Reported net income allocable to common shareholders of $10.64 per diluted share.

• Reported Core FFO of $16.67 per diluted share.

• Achieved 78.5% Same Store direct net operating income margin.

• Acquired 22 self-storage facilities with 1.7 million net rentable square feet for $267.5 million.

• Opened seven newly developed facilities and various expansion projects which together added 1.5 million net rentable square feet at a cost of $343.4 million.

• Issued 184,390 of our common shares on the open market through our "at the market" offering program for aggregate net proceeds of approximately $60.3 million in cash.

• Repurchased $200 million of our common shares on the open market under our previously announced share repurchase program at an average price of $275 per share.

• Completed a public offering of $1.0 billion aggregate principal amount of unsecured senior notes in various tranches and maturities and issued €150 million of senior notes to institutional investors.

Operating Results for the Three Months Ended December 31, 2024

For the three months ended December 31, 2024, net income allocable to our common shareholders was $564.4 million or $3.21 per diluted common share, compared to $389.7 million or $2.21 per diluted common share for the same period in 2023, representing an increase of $174.7 million or $1.00 per diluted common share. The increase is due primarily to a $193.9 million increase in foreign currency gains primarily associated with our Euro denominated notes payable, partially offset by a $17.0 million decrease in gain on sale of real estate.

Self-storage net operating income decreased $3.0 million in the three months ended December 31, 2024 as compared to the same period in 2023 as a result of a $7.2 million decrease attributable to our Same Store Facilities (as defined below), partially offset by a $4.3 million increase attributable to our Non-Same Store Facilities (as defined below). Revenues for the Same Store Facilities decreased 0.6% or $5.3 million in the three months ended December 31, 2024 as compared to the same period in 2023, due primarily to a decline in occupancy partially offset by a higher realized annual rent per occupied square foot. Cost of operations for the Same Store Facilities increased by 0.9% or $2.0 million in the three months ended December 31, 2024 as compared to the same period in 2023, due primarily to increased property tax expense, partially offset by decreased marketing expense and on-site property manager payroll expense. The increase in net operating income of $4.3 million for the Non-Same Store Facilities is due primarily to the impact of facilities acquired in 2023.

Operating Results for the Year Ended December 31, 2024

In 2024, net income allocable to our common shareholders was $1.873 billion or $10.64 per diluted common share, compared to $1.949 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 is due primarily to (i) a $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) a $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 is a result of a $108.9 million increase attributable to our Non-Same Store Facilities, partially offset by a $47.3 million decrease attributable to our Same Store Facilities. Revenues for the Same Store Facilities decreased 0.7% or $26.7 million in 2024 as compared to 2023, due primarily to a decline in occupancy and lower realized annual rent per occupied square foot. Cost of operations for the Same Store Facilities increased by 2.4% or $20.6 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 centralized management costs and on-site property manager payroll expense. The increase in net operating income of $108.9 million for the Non-Same Store Facilities is due primarily to the impact of facilities acquired in 2023.

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 three months ended December 31, 2024, FFO was $4.85 per diluted common share as compared to $3.78 for the same period in 2023, representing an increase of 28.3%.

For the year ended December 31, 2024, FFO was $17.19 per diluted common share, as compared to $16.60 in 2023, representing an increase of 3.6%.

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 loss contingencies and resolutions, casualties, due diligence costs incurred in pursuit of strategic transactions, unrealized gain on private equity investments, reorganization costs, acquisition integration costs, amortization of acquired non real estate-related intangibles, a cash and stock hiring bonus for a new senior executive, and our equity share of tax effect of a change in tax status and unrealized gain on derivatives from our equity investee. 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.

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 (unaudited):

Property Operations – Same Store Facilities

The Same Store Facilities consist of facilities that have been owned and operated on a stabilized level of occupancy, revenues, and cost of operations since January 1, 2022. The composition of our Same Store Facilities allows us to more effectively evaluate the ongoing performance of our self-storage portfolio in 2022, 2023, and 2024 and exclude the impact of fill-up of unstabilized facilities, which can significantly affect operating trends. We believe the Same Store Facilities information is used by investors and analysts 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 2,507 facilities (170.0 million net rentable square feet) that represent approximately 77% of the aggregate net rentable square feet of our U.S. consolidated self-storage portfolio at December 31, 2024 (unaudited):

Property Operations – Non-Same Store Facilities

In addition to the 2,507 Same Store Facilities, we have 566 facilities that were not stabilized with respect to occupancies, revenues, or cost of operations since January 1, 2022 or that we did not own as of January 1, 2022, including 260 facilities that were acquired, 46 newly developed facilities, 86 facilities that have been expanded or are targeted for expansion, and 174 facilities that are unstabilized because they are undergoing fill-up or were damaged in casualty events (collectively, the "Non-Same Store Facilities"). Operating data, metrics, and further commentary with respect to these facilities, including detail by vintage, are included in "Management's Discussion and Analysis of Financial Condition and Results of Operations" under "Analysis of Net Income – Self-Storage Operations" in our December 31, 2024 Form 10-K.

Investing and Capital Activities

During the three months ended December 31, 2024, we acquired 17 self-storage facilities (six in Texas, three each in Florida and Tennessee, and one each in Alabama, Colorado, Georgia, Ohio, and South Carolina) with 1.3 million net rentable square feet for $221.2 million. During 2024, we acquired 22 self-storage facilities (seven in Texas, four in Florida, three in Tennessee, two in South Carolina, and one each in Alabama, Colorado, Georgia, North Carolina, Ohio, and Virginia) with 1.7 million net rentable square feet for $267.5 million. Subsequent to December 31, 2024, we acquired or were under contract to acquire nine self-storage facilities across six states with 0.7 million net rentable square feet, for $140.7 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. The Simply portfolio facilities generated self-storage revenues of $151.8 million, NOI of $103.9 million (including Direct NOI of $109.2 million), and average square footage occupancy of 87.7% for 2024.

During the three months ended December 31, 2024, we opened three newly developed facilities and completed various expansion projects, which together contributed 0.4 million net rentable square feet (0.1 million each in California, Florida, Maryland, and Texas) at a cost of $80.9 million. During 2024, we opened seven newly developed facilities and various expansion projects, which together contributed 1.5 million net rentable square feet (0.5 million in California, 0.3 million in Florida, 0.2 million each in Maryland and Texas, and 0.1 million each in Arizona, Nevada, and New York) at a cost of $343.4 million. At December 31, 2024, we had various facilities in development (expected to contribute 2.5 million net rentable square feet) estimated to cost $498.9 million and various expansion projects (expected to contribute 1.5 million net rentable square feet) estimated to cost $242.7 million. Our aggregate 4.0 million net rentable square foot pipeline of development and expansion facilities includes 1.5 million in Florida, 1.1 million in California, 0.5 million in Texas, and 0.1 million each in Arizona, Colorado, Georgia, Hawaii, Idaho, Nevada, New York, South Carolina, and Virginia. The remaining $433.5 million of development costs for these projects are expected to be incurred primarily in the next 18 to 24 months.

During the three months and year ended December 31, 2024, we issued 184,390 of our common shares on the open market through our "at the market" offering program for aggregate net proceeds of approximately $60.3 million in cash.

Distributions Declared

On February 21, 2025, our Board of Trustees declared a regular common quarterly dividend of $3.00 per common share. The Board of Trustees also declared dividends with respect to our various series of preferred shares. All the dividends are payable on March 28, 2025 to shareholders of record as of March 13, 2025.

Outlook for the Year Ending December 31, 2025

Set forth below are our current expectations with respect to full year 2025 Core FFO per share and certain underlying assumptions. In reliance on the exception provided by applicable SEC rules, we do not provide guidance for GAAP net income per share, the most comparable GAAP financial measure, or a reconciliation of 2025 Core FFO per share to GAAP net income per share because we are unable to reasonably predict the following items which are included in GAAP net income: (i) gains or losses on sales of real estate investments, (ii) foreign currency exchange gains and losses, (iii) charges related to the redemption of preferred securities, and (iv) certain other significant non-cash and/or nonrecurring income or expense items. The actual amounts for any and all of these items could significantly impact our 2025 GAAP net income and, as disclosed in our historical financial results, have significantly impacted GAAP net income in prior periods. Our expectations on self-storage operations reflect the following updated 2025 Same Store and Non-Same Store pools for properties we owned at December 31, 2024: (i) 2,565 Same Store Facilities (175.3 million net rentable square feet) that we have owned and operated on a stabilized level of occupancy, revenues, and cost of operations since January 1, 2023, which generated NOI of $2,844.2 million in 2024 and (ii) 508 Non-Same Store Facilities (46.0 million net rentable square feet) that were not stabilized with respect to occupancy, revenues, or cost of operations since January 1, 2023 or that we did not own as of January 1, 2023, which generated NOI of $415.1 million in 2024.

Fourth Quarter Conference Call

A conference call is scheduled for February 25, 2025 at 9:00 a.m. (PT) to discuss the fourth quarter earnings results. The domestic dial-in number is (877) 407-9039, and the international dial-in number is (201) 689-8470. A simultaneous audio webcast may be accessed by using the link at www.publicstorage.com under "About Us, Investor Relations, News and Events, Event Calendar." A replay of the conference call may be accessed through March 11, 2025 by calling (844) 512-2921 (domestic), (412) 317-6671 (international) (access ID number for either domestic or international is 13751502) or by using the link at www.publicstorage.com under "About Us, Investor Relations, News and Events, Event Calendar."

About Public Storage

Public Storage, a member of the S&P 500, is a REIT that primarily acquires, develops, owns, and operates self-storage facilities. At December 31, 2024, we: (i) owned and/or operated 3,380 self-storage facilities located in 40 states with approximately 245 million net rentable square feet in the United States and (ii) owned a 35% common equity interest in Shurgard Self Storage Limited (Euronext Brussels:SHUR), which owned 318 self-storage facilities located in seven Western European nations with approximately 17 million net rentable square feet operated under the Shurgard® brand. Our headquarters are located in Glendale, California.

This press release, our Form 10-K for the year ended December 31, 2024, a financial supplement, and additional information about Public Storage are available on our website, www.publicstorage.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements relating to our 2025 outlook and all underlying assumptions; our expected acquisition, disposition, development, and redevelopment activity; supply and demand for our self-storage facilities; information relating to operating trends in our markets; expectations regarding operating expenses, including property tax changes; expectations regarding the impacts from inflation and changes in macroeconomic conditions; our strategic priorities; expectations with respect to financing activities, rental rates, cap rates, and yields; leasing expectations; our credit ratings; and all other statements other than statements of historical fact. Such statements are based on management's beliefs and assumptions made based on information currently available to management and may be identified by the use of the words "outlook," "guidance," "expects," "believes," "anticipates," "should," "estimates," and similar expressions. 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. Risks and uncertainties that may impact future results and performance include, but are not limited to those described in Part 1, Item 1A, "Risk Factors" in our most recent Annual Report on Form 10-K that will be filed with the Securities and Exchange Commission (the "SEC") on February 24, 2025 and in our other filings with the SEC. These include changes in demand for our facilities; changes in macroeconomic conditions; changes in national self-storage facility development activity; impacts of natural disasters; adverse changes in laws and regulations including governing property tax, evictions, rental rates, minimum wage levels, and insurance; adverse economic effects from public health emergencies, international military conflicts, or similar events impacting public health and/or economic activity; increases in the costs of our primary customer acquisition channels; adverse impacts to us and our customers from high interest rates, inflation, unfavorable foreign currency rate fluctuations, or changes in federal or state tax laws related to the taxation of REITs; security breaches, including ransomware; or a failure of our networks, systems, or technology. These forward-looking statements speak only as of the date of this press release or as of the dates indicated in the statements. All of our forward-looking statements, including those in this press release, are qualified in their entirety by this cautionary statement. We expressly disclaim any obligation to update publicly or otherwise revise any forward-looking statements, whether because of new information, new estimates, or other factors, events, or circumstances after the date of these forward-looking statements, except when expressly required by law. Given these risks and uncertainties, you should not rely on any forward-looking statements in this press release, or which management may make orally or in writing from time to time, neither as predictions of future events nor guarantees of future performance.

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Contact Ryan Burke

(818) 244-8080, Ext. 1141