Public Storage Files Q3 2024 10-Q Report

TL;DR

**Public Storage dropped its Q3 10-Q. Check financials.**

AI Summary

Public Storage filed its 10-Q for the period ending September 30, 2024. The filing covers the company's financial performance and operations for the third quarter of 2024. Key financial data and operational details are presented in this report.

Why It Matters

This filing provides investors and analysts with a detailed look at Public Storage's financial health and operational status as of the end of the third quarter of 2024.

Risk Assessment

Risk Level: low — This is a routine quarterly financial filing (10-Q) and does not inherently present new risks.

Key Players & Entities

• Public Storage (company) — Filer of the 10-Q
• 2024-09-30 (date) — End of the reporting period
• 2024-10-30 (date) — Filing date
• 701 WESTERN AVENUE GLENDALE CA 91201-2349 (address) — Company's business and mailing address

FAQ

Key Financial Figures

• $0.10 — nge on which registered Common Shares, $0.10 par value PSA New York Stock Exchange
• $0.01 — 0 of a 5.150% Cum Pref Share, Series F, $0.01 par value PSAPrF New York Stock Exchang

Filing Documents

• psa-20240930.htm (10-Q) — 2171KB
• psa-93024xex31_1.htm (EX-31.1) — 10KB
• psa-93024xex31_2.htm (EX-31.2) — 10KB
• psa-93024xex32.htm (EX-32) — 8KB
• 0001393311-24-000193.txt ( ) — 8783KB
• psa-20240930.xsd (EX-101.SCH) — 70KB
• psa-20240930_cal.xml (EX-101.CAL) — 80KB
• psa-20240930_def.xml (EX-101.DEF) — 312KB
• psa-20240930_lab.xml (EX-101.LAB) — 737KB
• psa-20240930_pre.xml (EX-101.PRE) — 526KB
• psa-20240930_htm.xml (XML) — 1050KB

FINANCIAL INFORMATION Pages

PART I FINANCIAL INFORMATION Pages

Consolidated Financial Statements (Unaudited)

Item 1. Consolidated Financial Statements (Unaudited) Consolidated Balance Sheets 1 Consolidated Statements of Income 2 Consolidated Statements of Comprehensive Income 3 Consolidated Statements of Equity 4 Consolidated Statements of Cash Flows 8 Condensed Notes to Consolidated Financial Statements 10

Management's Discussion and Analysis of Financial Condition and Results of Operations 24

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 24

Quantitative and Qualitative Disclosures About Market Risk 51

Item 3. Quantitative and Qualitative Disclosures About Market Risk 51

Controls and Procedures 51

Item 4. Controls and Procedures 51

OTHER INFORMATION (Items 3 and 4 are not applicable)

PART II OTHER INFORMATION (Items 3 and 4 are not applicable)

Legal Proceedings 52

Item 1. Legal Proceedings 52

Risk Factors 52

Item 1A. Risk Factors 52

Unregistered Sales of Equity Securities and Use of Proceeds 52

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 52 Item 5. Other Information 52

Exhibits 52

Item 6. Exhibits 52 PUBLIC STORAGE CONSOLIDATED BALANCE SHEETS (Amounts in thousands, except share data) September 30, 2024 December 31, 2023 (Unaudited) ASSETS Cash and equivalents $ 599,004 $ 370,002 Real estate facilities, at cost: Land 5,652,960 5,628,488 Buildings 22,441,100 21,836,750 28,094,060 27,465,238 Accumulated depreciation ( 10,172,372 ) ( 9,423,974 ) 17,921,688 18,041,264 Construction in process 310,514 345,453 18,232,202 18,386,717 Investment in unconsolidated real estate entity 397,482 390,180 Goodwill and other intangible assets, net 294,546 387,267 Other assets 279,985 275,050 Total assets $ 19,803,219 $ 19,809,216 LIABILITIES AND EQUITY Notes payable $ 9,473,778 $ 9,103,277 Accrued and other liabilities 619,416 598,993 Total liabilities 10,093,194 9,702,270 Commitments and contingencies (Note 14) Equity: Public Storage shareholders' equity: Preferred Shares, $ 0.01 par value, 100,000,000 shares authorized, 174,000 shares issued (in series) and outstanding, ( 174,000 shares at December 31, 2023) at liquidation preference 4,350,000 4,350,000 Common Shares, $ 0.10 par value, 650,000,000 shares authorized, 175,108,335 shares issued ( 175,670,727 shares at December 31, 2023) 17,511 17,567 Paid-in capital 6,032,686 5,980,760 Accumulated deficit ( 737,450 ) ( 267,910 ) Accumulated other comprehensive loss ( 52,684 ) ( 67,239 ) Total Public Storage shareholders' equity 9,610,063 10,013,178 Noncontrolling interests 99,962 93,768 Total equity 9,710,025 10,106,946 Total liabilities and equity $ 19,803,219 $ 19,809,216 See accompanying notes. 1 PUBLIC STORAGE CONSOLIDATED STATEMENTS OF INCOME (Amounts in thousands, except per share amounts) (Unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Revenues: Self-storage facilities $ 1,110,115 $ 1,078,721 $ 3,295,896 $ 3,167,025 Ancillary operations 77,643 65,099 222,293 190,797 1,187,758 1,143,820 3,518,189

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS September 30, 2024 (Unaudited) 1. Description of the Business Public Storage is a Maryland real estate investment trust ("REIT") engaged in the ownership and operation of self-storage facilities that offer storage spaces for lease, generally on a month-to-month basis, for personal and business use, ancillary activities such as tenant reinsurance, merchandise sales, and third party management, as well as the acquisition and development of additional self-storage space. Effective August 14, 2023, we are structured as an umbrella partnership REIT, or UPREIT, under which substantially all of our business is conducted through Public Storage OP, L.P. ("PSA OP"), an operating partnership, and its subsidiaries, including Public Storage Operating Company ("PSOC"). The primary assets of the parent entity, Public Storage, are general partner and limited partner interests in PSA OP, which holds all of the Company's assets through its ownership of all of the equity interests in PSOC. As a limited partnership, PSA OP is a variable interest entity and is consolidated by Public Storage as its primary beneficiary. As of September 30, 2024, Public Storage owned all of the general partner interests and approximately 99.87 % of the limited partnership interests of PSA OP, with the remaining 0.13 % of limited partnership interests owned by certain trustees and officers of the Company. Unless stated otherwise or the context otherwise requires, references to "Public Storage" mean the parent entity, Public Storage, and references to "the Company," "we," "us," and "our" mean collectively Public Storage, PSA OP, PSOC, and those entities/subsidiaries owned or controlled by Public Storage, PSA OP, and PSOC. At September 30, 2024, we owned interests in 3,053 self-storage facilities (with approximately 219.5 million net rentable square feet) located in 40 states in the United States ("U.S.") operating under the Public Storage name, and 1.1 milli

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS September 30, 2024 (Unaudited) Operating results for the three and nine months ended September 30, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024. Summary of Significant Accounting Policies There have been no significant changes to the Company's significant accounting policies described in Note 2, Basis of Presentation and Summary of Significant Accounting Policies , in Notes to Consolidated Financial Statements included in Item 8 of Part II of the Company's Annual Report on Form 10-K for the year ended December 31, 2023. 3. Real Estate Facilities Activity in real estate facilities during the nine months ended September 30, 2024 is as follows: Nine Months Ended September 30, 2024 (Amounts in thousands) Operating facilities, at cost: Beginning balance $ 27,465,238 Capital expenditures to maintain real estate facilities 173,684 Capital expenditures for property enhancements 109,320 Capital expenditures for energy efficiencies (LED lighting, solar) 39,291 Acquisitions 45,579 Dispositions and other ( 1,569 ) Developed or expanded facilities opened for operation 262,517 Ending balance 28,094,060 Accumulated depreciation: Beginning balance ( 9,423,974 ) Depreciation expense ( 748,398 ) Ending balance ( 10,172,372 ) Construction in process: Beginning balance 345,453 Costs incurred to develop and expand real estate facilities 228,311 Write-off of cancelled projects ( 733 ) Developed or expanded facilities opened for operation ( 262,517 ) Ending balance 310,514 Total real estate facilities at September 30, 2024 $ 18,232,202 During the nine months ended September 30, 2024, we acquired five self-storage facilities ( 0.3 million net rentable square feet of storage space), for a total cost of $ 46.3 million in cash. Approximately $ 0.7 million of the total cost was allocated to intangible assets. During the nine months ended September 30

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS September 30, 2024 (Unaudited) 4. Investment in Unconsolidated Real Estate Entity Throughout all periods presented, we had an approximately 35 % equity interest in Shurgard. On November 14, 2023, Shurgard issued 8,163,265 new common shares to institutional investors. We participated on a pro-rata basis in the offering and acquired 2,863,674 common shares for a cost of $ 112.6 million. On September 26, 2024, Shurgard issued 1,114,194 new common shares to its shareholders who opted to exchange the cash dividend rights declared on August 13, 2024 for additional shares. We received 487,600 new common shares in exchange for all of our dividend rights. At September 30, 2024, we effectively owned 34,619,733 common shares of Shurgard. Based upon the closing price at September 30, 2024 ( 42.10 per share of Shurgard common stock, at 1.116 exchange rate of U.S. Dollars to the Euro), the shares we owned had a market value of approximately $ 1.6 billion. Our equity in earnings of Shurgard comprised our equity share of Shurgard's net income, less amortization of the Shurgard Basis Differential (defined below). During the nine months ended September 30, 2024 and 2023, we received $ 3.2 million and $ 2.8 million of trademark license fees that Shurgard pays to us for the use of the Shurgard trademark, respectively. We eliminated $ 1.1 million and $ 1.0 million of intra-entity profits and losses for the nine months ended September 30, 2024 and 2023, respectively, representing our equity share of the trademark license fees. We classify the remaining license fees we receive from Shurgard as interest and other income on our Consolidated Statements of Income. During the nine months ended September 30, 2024 and 2023, we received cash dividend distributions from Shurgard totaling $ 22.8 million and $ 19.8 million, respectively. Approximately $ 13.3 million and $ 3.2 million of total cash distributions from Shurgard during the nine months en

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