Public StoragePSA
Public Storage Debt Disclosure
6. Notes Receivable
We offer bridge loan financing to third-party self-storage owners for operating properties that we manage. The bridge loans, collateralized by operating self-storage properties, typically have a term of or four years with two one-year extensions, and have variable interest rates. At December 31, 2025 and December 31, 2024, we had notes receivable of $142.1 million and $10.0 million with average annual interest rates of 7.9% and 8.1%, respectively. At 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. As of December 31, 2025 and 2024, none of the notes receivable were in past-due or nonaccrual status and the allowance for expected credit losses was immaterial.
8. Notes Payable
Our notes payable (all of which were issued by PSOC), are reflected net of issuance costs (including original issue discounts), which are amortized as interest expense on the effective interest method over the term of each respective note. Our notes payable at December 31, 2025 and December 31, 2024 are set forth in the tables below:
| Amounts at December 31, 2025 | Amounts at December 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||
| Coupon Rate | Effective Rate | Principal | Unamortized Costs | Book Value | Fair Value | Book Value | Fair Value | ||||||||||||||||||||||||||||||||||||||||
| (Dollar amounts in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
| U.S. Dollar Denominated Unsecured Debt | |||||||||||||||||||||||||||||||||||||||||||||||
| Notes due July 25, 2025 | +0.60% | 4.940% | $ | — | $ | — | $ | — | $ | — | $ | 399,537 | $ | 400,714 | |||||||||||||||||||||||||||||||||
| Notes due February 15, 2026 | 0.875% | 1.030% | 500,000 | (99) | 499,901 | 497,958 | 499,160 | 479,639 | |||||||||||||||||||||||||||||||||||||||
| Notes due November 9, 2026 | 1.500% | 1.640% | 650,000 | (747) | 649,253 | 636,828 | 648,383 | 614,981 | |||||||||||||||||||||||||||||||||||||||
| Notes due April 16, 2027 | +0.70% | 4.645% | 700,000 | (1,416) | 698,584 | 703,891 | 697,544 | 706,119 | |||||||||||||||||||||||||||||||||||||||
| Notes due September 15, 2027 | 3.094% | 3.218% | 500,000 | (908) | 499,092 | 494,206 | 498,564 | 480,904 | |||||||||||||||||||||||||||||||||||||||
| Notes due May 1, 2028 | 1.850% | 1.962% | 650,000 | (1,567) | 648,433 | 620,402 | 647,756 | 592,876 | |||||||||||||||||||||||||||||||||||||||
| Notes due November 9, 2028 | 1.950% | 2.044% | 550,000 | (1,375) | 548,625 | 520,843 | 548,144 | 494,867 | |||||||||||||||||||||||||||||||||||||||
| Notes due January 15, 2029 | 5.125% | 5.260% | 500,000 | (1,775) | 498,225 | 516,660 | 497,639 | 506,074 | |||||||||||||||||||||||||||||||||||||||
| Notes due May 1, 2029 | 3.385% | 3.459% | 500,000 | (1,017) | 498,983 | 489,405 | 498,673 | 472,031 | |||||||||||||||||||||||||||||||||||||||
Notes due July 1, 2030 (a) | 4.375% | 4.568% | 475,000 | (3,645) | 471,497 | 478,958 | — | — | |||||||||||||||||||||||||||||||||||||||
| Notes due May 1, 2031 | 2.300% | 2.419% | 650,000 | (3,642) | 646,358 | 588,030 | 645,673 | 555,387 | |||||||||||||||||||||||||||||||||||||||
| Notes due November 9, 2031 | 2.250% | 2.322% | 550,000 | (2,078) | 547,922 | 490,580 | 547,570 | 459,682 | |||||||||||||||||||||||||||||||||||||||
| Notes due August 1, 2033 | 5.100% | 5.207% | 700,000 | (4,392) | 695,608 | 724,886 | 695,028 | 695,171 | |||||||||||||||||||||||||||||||||||||||
| Notes due July 1, 2035 | 5.000% | 5.143% | 400,000 | (4,184) | 395,816 | 406,046 | — | — | |||||||||||||||||||||||||||||||||||||||
| Notes due August 1, 2053 | 5.350% | 5.474% | 900,000 | (15,224) | 884,776 | 870,986 | 884,224 | 856,992 | |||||||||||||||||||||||||||||||||||||||
| 8,225,000 | (42,069) | 8,183,073 | 8,039,679 | 7,707,895 | 7,315,437 | ||||||||||||||||||||||||||||||||||||||||||
| Euro Denominated Unsecured Debt | |||||||||||||||||||||||||||||||||||||||||||||||
| Notes due November 3, 2025 | 2.175% | 2.175% | — | — | — | — | 251,385 | 249,979 | |||||||||||||||||||||||||||||||||||||||
| Notes due September 9, 2030 | 0.500% | 0.640% | 821,758 | (5,252) | 816,506 | 727,308 | 720,735 | 630,159 | |||||||||||||||||||||||||||||||||||||||
| Notes due January 24, 2032 | 0.875% | 0.978% | 586,970 | (3,250) | 583,720 | 508,532 | 515,575 | 443,113 | |||||||||||||||||||||||||||||||||||||||
| Notes due January 20, 2034 | 3.500% | 3.836% | 498,925 | (5,945) | 492,980 | 441,580 | — | — | |||||||||||||||||||||||||||||||||||||||
| Notes due April 11, 2039 | 4.080% | 4.080% | 176,091 | (65) | 176,026 | 177,535 | 155,736 | 166,979 | |||||||||||||||||||||||||||||||||||||||
| 2,083,744 | (14,512) | 2,069,232 | 1,854,955 | 1,643,431 | 1,490,230 | ||||||||||||||||||||||||||||||||||||||||||
Mortgage Debt, secured by 2 real estate facilities with a net book value of 10.8 million | 4.240% | 4.240% | 1,576 | — | 1,576 | 1,545 | 1,708 | 1,591 | |||||||||||||||||||||||||||||||||||||||
| $ | 10,310,320 | $ | (56,581) | $ | 10,253,881 | $ | 9,896,179 | $ | 9,353,034 | $ | 8,807,258 | ||||||||||||||||||||||||||||||||||||
(a) The book value includes $0.1 million in adjustments related to changes in fair value attributable to hedging instruments on these notes as of December 31, 2025. See below for further discussion.
Public Storage has provided a full and unconditional guarantee of PSOC’s obligations under each series of unsecured notes.
U.S. Dollar Denominated Unsecured Notes
On June 30, 2025, PSOC completed a public offering of $875 million aggregate principal amount of senior notes, including $475 million aggregate principal amount of fixed rate senior notes bearing interest at an annual rate of 4.375% maturing on July 1, 2030 and $400 million aggregate principal amount of fixed rate senior notes bearing interest at an annual rate of 5.000% maturing on July 1, 2035. Interest on the senior notes is payable semi-annually on January 1 and July 1 of each year, commencing on January 1, 2026. In connection with the offering, we received approximately $867 million in net proceeds.
In connection with our public offering of senior notes due July 1, 2030, we entered into three separate interest rate swap agreements, with a combined notional amount of $475 million, which effectively convert the debt’s fixed interest rate to a variable rate ( + 0.92%). The swaps were designated in combination as a fair value hedge of interest rate risk and mature on July 1, 2030. The Company’s hedging relationship is assumed to be perfectly effective. As of December 31, 2025, the fair value of the swaps was an asset position of $0.1 million. There was no impact to earnings for the year ended December 31, 2025. The estimated fair values of our swaps are based upon changes in benchmark interest rates related to these notes. Because this methodology includes inputs that are less observable by the public and are not necessarily reflected in active markets, the measurement of the estimated fair values related to these financial instruments is categorized as level 2 in the fair value hierarchy.
On July 25, 2025, we repaid PSOC’s outstanding $400 million aggregate principal amount of floating rate senior notes bearing interest at a rate of Compounded + 0.60% at maturity.
On April 16, 2024, PSOC completed a public offering of $1.0 billion aggregate principal amount of senior notes, including $700 million aggregate principal amount of floating rate senior notes bearing interest at a rate of Compounded + 0.70% (reset quarterly) maturing on April 16, 2027 and $300 million aggregate principal amount of senior notes bearing interest at a fixed annual rate of 5.350% maturing on August 1, 2053. The 2053 notes issued at a discount of $5.3 million constitute a further issuance of, and form a single series with, PSOC’s outstanding 5.350% senior notes due 2053 issued on July 26, 2023 in the aggregate principal amount of $600 million. Interest on the floating rate senior notes is payable quarterly, commencing on July 16, 2024. Interest on the 2053 notes is payable semi-annually, commencing on August 1, 2024. In connection with the offering, we received $988.5 million in net proceeds.
On April 23, 2024, we repaid PSOC’s outstanding $700 million aggregate principal amount of floating rate senior notes bearing interest at a rate of Compounded + 0.470% at maturity.
On July 26, 2023, PSOC completed a public offering of $400 million, $500 million, $700 million, and $600 million aggregate principal amount of unsecured senior notes bearing interest at an annual rate of Compounded SOFR + 0.60% (reset quarterly), 5.125%, 5.100%, and 5.350%, respectively, and maturing on July 25, 2025, January 15, 2029, August 1, 2033, and August 1, 2053, respectively. Interest on the 2025 notes is payable quarterly, commencing on October 25, 2023. Interest on the 2029 notes is payable semi-annually, commencing on January 15, 2024. Interest on the 2033 notes and 2053 notes is payable semi-annually, commencing on February 1, 2024. In connection with the offering, we incurred a total of $18.7 million in costs.
The U.S. Dollar denominated unsecured notes (the “U.S. Dollar Denominated Unsecured Notes”) have various financial covenants with which we were in compliance at December 31, 2025. Included in these covenants are (a) a maximum Debt to Total Assets of 65% (approximately 19% at December 31, 2025) and (b) a minimum ratio of Adjusted EBITDA to Interest Expense of 1.5x (approximately 12x for the trailing twelve months ended December 31, 2025) as well as covenants limiting the amount we can encumber our properties with mortgage debt.
Euro Denominated Unsecured Notes
At December 31, 2025, our Euro denominated unsecured notes (the “Euro Notes”) consisted of four tranches: (i) €500.0 million issued in a public offering on January 24, 2020, (ii) €700.0 million issued in a public offering on September 9, 2021, (iii) €150.0 million issued to institutional investors on April 11, 2024, and (iv) €425.0 million issued in a public offering on October 3, 2025. The Euro Notes have financial covenants similar to those of the U.S. Dollar Denominated Unsecured Notes.
On October 3, 2025, PSOC completed a public offering of €425.0 million aggregate principal amount of fixed rate senior notes bearing interest at an annual rate of 3.500% maturing on January 20, 2034. We received €420.8 million in net proceeds from the offering. On November 3, 2025, we used the net proceeds to repay PSOC’s outstanding €242.0 million aggregate principal amount 2.175% senior notes due November 3, 2025 to institutional investors.
The €150.0 million notes issued to institutional investors on April 11, 2024 bear interest at a fixed rate of 4.080% and mature on April 11, 2039. We received $162.5 million in net proceeds upon converting the Euros to U.S. Dollars. On April 11, 2024, we repaid PSOC’s outstanding €100.0 million aggregate principal amount 1.540% senior notes due April 12, 2024 to the same institutional investors for $108.4 million.
We reflect changes in the U.S. Dollar equivalent of the amount payable including the associated interest, as a result of changes in foreign exchange rates as “Foreign currency exchange gain (loss)” on our income statement (losses of $213.5 million in 2025, as compared to gains of $103.0 million in 2024 and losses of $51.6 million in 2023).
Mortgage Notes
We assumed our non-recourse mortgage debt in connection with property acquisitions, and we recorded such debt at fair value with any premium or discount to the stated note balance amortized using the effective interest method.
At December 31, 2025, the related contractual interest rates of our mortgage notes are fixed, ranging between 3.9% and 7.1%, and mature between September 1, 2028 and July 1, 2030.
At December 31, 2025, approximate principal maturities of our Notes Payable are as follows:
| Unsecured Debt | Mortgage Debt | Total | |||||||||||||||
| (Amounts in thousands) | |||||||||||||||||
| 2026 | $ | 1,150,000 | $ | 138 | $ | 1,150,138 | |||||||||||
| 2027 | 1,200,000 | 146 | 1,200,146 | ||||||||||||||
| 2028 | 1,200,000 | 129 | 1,200,129 | ||||||||||||||
| 2029 | 1,000,000 | 88 | 1,000,088 | ||||||||||||||
| 2030 | 1,296,758 | 1,061 | 1,297,819 | ||||||||||||||
| Thereafter | 4,461,986 | 14 | 4,462,000 | ||||||||||||||
| $ | 10,308,744 | $ | 1,576 | $ | 10,310,320 | ||||||||||||
| Weighted average effective rate | 3.2% | 4.2% | 3.2% | ||||||||||||||
Interest capitalized as real estate totaled $6.5 million, $10.5 million, and $9.3 million for 2025, 2024, and 2023, respectively.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 12, 2026 | Showing above |
| 2016 | Mar 1, 2017 | |
| 2015 | Feb 29, 2016 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.