CHAIRMAN’S LETTER

To the Shareholders of Public Storage:

Public Storage was built on a handful of simple ideas, pursued without deviation for nearly five

decades. We own real estate that is difficult to replicate, we keep our balance sheet strong enough to

sleep soundly through any cycle, and we treat every dollar of capital as though it were our own,

because, in the most important sense, it is. None of that changes.

What does change is leadership, and I want to describe that transition with the candor it deserves.

Shankh Mitra will assume the role of Chairman. Shankh has served on our Board since 2021, and I

have had ample opportunity to observe how he thinks for over 15 years. He is a genuine investor,

not in the fashionable sense of the word, but in the way that matters: he evaluates businesses on their

long-term economics, not their near-term optics. He is fond of quoting Charlie Munger’s

observation that you become what you think about, and I believe Shankh spends an uncommon

amount of time thinking about how to compound value for owners over very long periods. That

disposition is exactly right for a company where a decision made today about land, leverage, or

leadership will still be felt twenty years hence.

Tom Boyle will serve as Chief Executive Officer. Tom joined us nine years ago as the designated

successor to our longtime Chief Financial Officer, and he has spent those years learning every corner

of this business. He is methodical, honest about what he doesn’t know, and genuinely conservative

with capital, a combination that is rarer than it should be. I expect him to lead the company with

the same steady hand that has served our shareholders well for decades.

Tom is supported by a strong team. Natalia Johnson, President and Chief Digital and

Transformation Officer, oversees the organizational infrastructure that makes everything possible,

human resources, technology, call center, and innovative data science and transformation efforts.

Chris Sambar, President and Chief Operating Officer, runs the operations that our customers

experience every day. Joe Fisher, the new President and Chief Financial Officer, brings deep fluency

in capital markets and finance. Taken together, this group gives me considerable confidence in the

company’s future.

I want to say a word about two people whose contributions deserve more than a footnote.

Joe Russell joined PS Business Parks in 2002 as President and eventually became its Chief Executive

Officer. The story of that company is told most simply in two numbers: it began trading at roughly

$17 per share in 1998 and was sold in 2022 for $187 per share. Results like that are not a matter of

luck or timing; they come from making sound acquisitions, staying focused when others drift, and

allocating capital with the patience of an owner rather than the urgency of a manager. In 2019, Joe

became President and Chief Executive Officer of Public Storage, and his tenure here has been

equally productive. He expanded our presence in Florida, the Washington–Baltimore corridor, and

Texas, and he pushed our operating capabilities decisively into the digital age. I count working

alongside Joe among the genuine privileges of my career.

John Reyes served as our Chief Financial Officer from 1996 through 2018 and will retire from the

Board this year. Look carefully at any significant decision this company has made over the past three

and a half decades, and you will find John’s fingerprints on it. He brought the kind of financial

discipline and quiet good judgment that rarely makes headlines but consistently makes the difference

between a good company and a great one. I will miss him.

It has been an honor to chair the Public Storage Board of Trustees. One of a trustee’s most

consequential responsibilities is ensuring that the right people are in charge before they are needed,

planning for succession not as a formality but as a genuine act of stewardship. Our board did that

work carefully and well. I am particularly grateful to Ron Spogli, Dick Poladian, and Kristy Pipes,

who invested countless hours in interviews, deliberations, and planning to make this transition as

seamless as it has been.

We will continue to measure ourselves the way owners do: by growth in cash flow per share, by

returns on invested capital, and by performance measured over years rather than quarters. We will

resist unnecessary complexity, avoid leverage that would make us uncomfortable in a downturn, and

report our results, good and bad, with the directness that shareholders deserve.

Public Storage has navigated many economic cycles over its history, and it has done so because it was

always managed with the long term in view. That orientation is unchanged.

Sincerely,

Ronald Havner

Chairman, Public Storage

February 27, 2026

CHIEF EXECUTIVE OFFICER’S LETTER

Fellow Stakeholders,

I write to you as we embark on another exciting era at Public Storage. This marks my final letter as

President & CEO of Public Storage, and it has been an honor to lead this amazing company since

2019. As a team, we have achieved strong success standing on the shoulders of prior generations led

by Wayne Hughes, Ron Havner, and countless other leaders.

The Transition to PS4.0

As recently announced, we are entering a new and powerful chapter, anchored by a fourth

generation of Public Storage leadership and strategic vision, now known as PS4.0

Succession planning has always been a top priority for our Board of Trustees, and the objective has

been crystal clear: to place exceptional talent in every senior leadership position at Public Storage.

I am pleased to say we have met that objective.

Tom Boyle, our Chief Financial and Investment Officer, will succeed me as CEO as of April 1,

2026. His broad abilities and deep knowledge of our industry and company make him well-suited to

be the company’s fourth CEO in our 53-year history. Tom has proven to be an exceptional leader in

both his CFO and CIO roles — with outstanding accomplishments across capital allocation,

operations, and financial strategy. Tom is more than ready to lead Public Storage into PS4.0. Our

board, management team, and I could not be more confident in his skill, drive, and vision.

Joe Fisher was also recently added to the executive team as President and CFO. Joe’s tenure at UDR

as President, CFO, and CIO — along with his stature in the REIT industry — made him an

exceptional fit for our senior leadership team. Joe joins Public Storage at a great time and adds

outstanding depth to our leadership ranks.

Further enhancing the in-place leadership team, Natalia Johnson was recently promoted from CAO

to President, Chief Digital and Transformation Officer, leading virtual customer engagement, AI,

and data science which drives optimized decisioning platforms, human capital, and enterprise

transformation. Chris Sambar, who joined the executive team in 2024, is now President, Chief

Operating Officer, with an expanded scope that includes operations, asset management, loss

prevention, and PS Advantage, our third-party management platform. Paul Spittle, SVP of

Acquisitions, has been promoted to lead company acquisition efforts as he succeeds Mike

McGowan, who recently retired following three decades of exceptional asset growth at Public

Storage. We are also pleased to welcome Ayash Basu as Chief Revenue and Marketing Officer, and

Gwen Montgomery as Chief Human Resources Officer.

At the board level, Ron Havner is stepping down as Chairman after fifteen years of iconic leadership

and will continue as a Trustee. Ron is a legend in our industry and has been a tremendous mentor to

me and the Public Storage team. I can’t thank him enough for his dedication. John Reyes, our

former CFO and current Trustee, is retiring from the board. John has guided Public Storage with

nearly three decades of financial acumen and discipline. His impact on Public Storage is

immeasurable. Shankh Mitra, the CEO of Welltower and an independent Public Storage trustee for

the past five years, will now take the role of Chairman. We’re fortunate to have Shankh guide and

mentor the management team with his vast experience and success within the REIT industry.

Together, under the PS4.0 umbrella, this best-in-class leadership team is well equipped to deploy

multiple industry-leading strategies at Public Storage, driven by:

1.

PS Next Operating Platform: Enhancing our leading brand, customer experience, and

data analytics to drive further margin expansion and growth.

2.

Value Creation Engine: Supported by the NextGEN platform, utilizing multi-lever

capital initiatives to accelerate accretive and disciplined earnings growth.

3.

Own It Culture: Fostering owners’ mindsets across the organization through leadership

and incentive alignment.

Tom Boyle, our new CEO, is anxious to share the powerful components of PS4.0 and how his

exceptional management team will unlock the unique set of initiatives each of these pillars

represents.

A Decade of Transformation

Looking back, three core principles have guided our success over the past ten years – innovation,

growth, and leadership.

Innovation

We have innovated across the company, including developing the industry’s first comprehensive and

centralized digital ecosystem that connects all aspects of our business and brings the customer

experience in line with broader consumer expectations today. Under the leadership of both Natalia

Johnson and Michael Braine, our Chief Technology Officer, we have built a robust and scalable

technology infrastructure that powers our digital transformation. Adoption has been swift, with self-

selected digital options now comprising 85% of our customer interactions, a significant increase

from 30% in 2019.

This digital ecosystem is a critical element of our broader operating model transformation. Philip

Kim, our Chief Data and Analytics Officer, and his team of data scientists have developed

sophisticated analytics capabilities that deliver real-time operational insights across our 3,500

locations. One of many examples is how we curate large data sets to provide insight into how and

when customers use our properties. This cross-platform cohesion is enabling a shift to optimized

property staffing based on the timing of customer needs. Our expert team of over 5,000 property

personnel now has more tools to support customers when and where they need us on a 24/7 basis

instead of being constrained to traditional property office routines for nine business hours each day.

We are tracking ahead of schedule on our transformation plan, with more optimization and margin

expansion to come from our new PS4.0 strategic initiatives as described below.

Growth

Through our innovation and portfolio expansion efforts, we are enhancing Public Storage’s growth

profile. The team continues to drive same store revenue and net operating income (NOI) growth

outperformance versus our peers. Accordingly, we are further widening our same store revenue,

NOI, and margin premiums relative to them. At 78% in 2025, we have expanded our NOI margin

by approximately 140 basis points since 2019.

The operational enhancement feeds directly into our portfolio expansion through acquisitions,

development, and redevelopment. Acknowledging our broad advantages, we have expanded our

portfolio by 61 million square feet (688 properties for $12.2 billion), or 36%, since 2019. Our

non-same store pool, which currently comprises 24% of total portfolio square footage, will continue

to be a powerful driver of earnings growth in excess of stabilized same store growth.

We are optimizing and growing our ancillary businesses as well. NOI in our tenant reinsurance

business reached $192 million in 2025, up 82% from 2019. The number of properties in our third-

party management program reached 446, expanding the pool by 5.4x over the same time period.

These businesses complement our core self-storage rental operations and add to our overall growth

profile.

All in, we have grown Core FFO per share by 58% and the common dividend by 50% since 2019.

Leadership

Public Storage has led the self-storage industry for nearly 53 years. Our brand is one of the most

visible in the United States, bringing with it numerous advantages that include customer recognition

and retention, marketing efficiency, and industry relationships that span our entire operations.

Today, it is more recognizable and powerful than it has ever been.

The brand is driven by our people, who embody a culture of pride, integrity, innovation,

development, engagement, and community. Through our innovation and growth, we have

created new specialized roles for property managers and a new career path leading to district

management. These are unique within the industry and have resulted in higher team member

engagement and reduced turnover. I have been honored to lead such a strong and committed

team.

I also want to thank the past and present Public Storage Board of Trustees for their guidance,

partnership, and support as we worked together to advance the already fantastic company I stepped

into. Today, we stand tall amongst the many great companies in an industry where vibrant, yet

collaborative and respectful competition is the norm. We will continue to lead the way on all fronts

moving forward.

2025 Performance Summary

With this exciting new era upon us, I will now briefly review our 2025 results. Public Storage is built

to operate, innovate, and evolve in any environment. We performed well in 2025 by achieving

operational stabilization and advancing our distinctive transformation plan. We created growth and

value for our stakeholders while further differentiating our industry-leading brand and platform.

In 2025, we had many successes, including:

•

Expanding the portfolio to 3,533 properties, 258 million square feet, and over two million

customers;

•

Delivering $4.8 billion and $3.5 billion in consolidated revenue and net operating

income, respectively;

•

Leading self-storage REITs on same store revenue and NOI per square foot;

•

Achieving peer-leading profitability with a 78% same store direct operating margin;

•

Acquiring 87 properties comprising 6.1 million square feet for $946 million and

delivering 12 newly developed properties and additional expansion properties comprising

2.1 million square feet for $409 million;

•

Driving outsized growth through our non-same store portfolio, comprising 606 properties

and 54.1 million square feet, which is now 24% of our total owned portfolio; and

•

Maintaining a $610 million property development and redevelopment pipeline.

I am proud of the team for their commendable focus and determination. We are well-positioned to

execute on PS4.0’s strategic vision moving forward.

2025 Business Results

We have two principal businesses: (i) self-storage, conducted under the Public Storage® brand, and

(ii) ancillary businesses, primarily the reinsurance of policies offered to our self-storage customers

under the Orange Door Storage Insurance Program® brand. Below are the revenues and NOI for

each business.

Revenues

(Amounts in millions)

2025

2024

2023

Self-storage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$ 4,489

$ 4,396

$ 4,260

Ancillary businesses . . . . . . . . . . . . . . . . . . . . . . . . . .

335

300

258

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$ 4,824

$ 4,696

$ 4,518

Net Operating Income1

(Amounts in millions)

2025

2024

2023

Self-storage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$ 3,312

$ 3,259

$ 3,198

Ancillary businesses . . . . . . . . . . . . . . . . . . . . . . . . . .

202

178

172

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$ 3,514

$ 3,437

$ 3,370

In 2025, the NOI of these businesses increased by $77 million, or 2%, to a record $3.5 billion. Our

core funds from operations and free cash flow per diluted common share were as follows:

2025

2024

2023

Earnings per share . . . . . . . . . . . . . . . . . . . . . . . . . . .

$ 9.01

$ 10.64

$ 11.06

Core FFO per share1

. . . . . . . . . . . . . . . . . . . . . . . .

$ 16.97

$ 16.67

$ 16.89

Free cash flow per share1

. . . . . . . . . . . . . . . . . . . . .

$ 15.97

$ 14.74

$ 14.80

1. See accompanying schedule “Supplemental Non-GAAP Disclosures.”

We consider our operating results by analyzing our portfolio across two categories: (i) stabilized

properties in the same store pool and (ii) unstabilized properties in the non-same store pool. The

same store pool allows us and investors to assess the health of our self-storage business by only

including properties with stabilized revenues (i.e., rent and occupancy) and operating expenses that

reflect organic growth on an “apples-to-apples” basis.

Same store NOI declined by 0.5% in 2025, compared to a 1.7% decline in 2024 and 4.7% increase

in 2023.

Same Store Properties

(Dollar amounts in millions, except occupancy and REVPAF)

2025

2024

2023

Revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$ 3,765

$ 3,764

$ 3,786

Costs of operations . . . . . . . . . . . . . . . . . . . . . . . . . .

936

920

900

Net operating income1 . . . . . . . . . . . . . . . . . . . . . . .

$ 2,829

$ 2,844

$ 2,886

Net rentable square feet . . . . . . . . . . . . . . . . . . . . . . .

175.3

175.3

175.3

Average occupancy . . . . . . . . . . . . . . . . . . . . . . . . . .

92.0%

92.4%

92.9%

Year-end occupancy . . . . . . . . . . . . . . . . . . . . . . . . .

91.0%

90.5%

91.2%

REVPAF

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$ 20.74

$ 20.72

$ 20.85

1. See accompanying schedule “Supplemental Non-GAAP Disclosures.”

It was a year of continuing operational normalization for Public Storage. Move-in rents, the primary

source of pressure, were down 6.5% year-over-year, improving from a 11.7% decline in 2024. Our

performance was bolstered by in-place customers, who continue to behave well with strong payment

patterns, healthy lengths of stay, and consistent move-out volumes.

Within the still competitive environment, the Public Storage team once again achieved the highest

same store revenue and NOI per square foot among the self-storage REIT peer group. We did so at a

superior level of growth and profitability as well, with a 78% operating margin that was 720 to 930

basis points higher than the respective margins of our peers. The operations team, led by Chris Sambar

and Steven Lentin, our EVP of Operations, has done a commendable job in partnership with

Richard Craig in revenue management, Dilhara Kaluarachchi in customer care, Robbie Williams in

asset management, Jeff Cox in security, and additional leaders from across the company.

We exclude our 606 unstabilized non-same store properties from the same store pool because their

year-over-year performance is not comparable to stabilized assets. Given self-storage’s stabilization

period (typically 3-5 years for occupancy and rents), this group primarily comprises properties

developed or redeveloped since 2020 and acquired since 2023. It consists of 54 million square feet,

or 24% of our total portfolio, as we enter 2026. The cost to acquire and build these properties

totaled approximately $5.6 billion. At stabilization, we estimate their market value will approximate

$7.7 billion, resulting in more than $2 billion of value creation.

Our non-same store NOI increased meaningfully during 2026 due to strong lease-up and the

addition of new acquisition and development properties, providing an engine of growth to offset the

industry’s broader normalization. We have significant upside tied to this pool of high-growth assets

over the coming years.

Non-Same Store Properties

(Amounts in millions, except occupancy and REVPAF)

2025

2024

2023

Revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$ 724

$ 632

$ 474

Costs of operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

241

217

162

Net operating income1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$ 483

$ 415

$ 312

Net rentable square feet . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

54.1

46.0

42.8

Average occupancy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

83.9%

82.1%

81.2%

REVPAF . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$ 13.91

$ 13.86

$ 13.51

1. See accompanying schedule “Supplemental Non-GAAP Disclosures.”

Enhancing the Size and Quality of Our Property Portfolio

We have a multi-dimensional approach to portfolio growth centered on acquisitions, development,

redevelopment, and third-party property management.

We expanded our portfolio by adding 98 properties comprising 8 million square feet through

acquisition, development, and redevelopment in 2025. The 606 non-same store properties, which

we refer to as a “company within a company” due to its size and growth potential, now comprise

24% of our total portfolio square footage, but only 15% of our NOI (due to 84% average

occupancy and rents that are below market), providing meaningful embedded growth through

lease-up over the next few years.

Total Owned Portfolio By Property Type

229 million square feet

76%

14%

10%

Stabilized

Same Store

Properties

Acquisitions

Development &

Redevelopment

High growth lease-up properties are

24% of the total portfolio

Non-Same Store

Lease-Up Properties:

Acquisitions

Led by Paul Spittle and his national acquisition team, we grew by 87 properties comprising

6.1 million square feet for $946 million during the year. The transaction market is opening up

following a multi-year slowdown resulting from higher interest rates and macroeconomic

uncertainty.

We have a differentiated acquisition strategy grounded in big data and analytics, and a reputation as

a preferred buyer that offers speed and certainty to close. We are well-positioned to acquire and drive

outsized returns as we enhance properties to our unmatched level of profitability over the next few

years.

Acquisitions

$796

$5,115

$731

$2,675

$268

$946

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

2020

2021

2022

2023

2024

2025

($ millions)

Development and Redevelopment

Self-storage property development has always been a difficult business. Recently, the confluence of

normalizing operations, higher costs and interest rates, and municipal roadblocks (e.g., NIMBY-ism)

have made it even more difficult. As a result, we expect new industry-wide development deliveries to

be at 2% or below of existing stock over the next few years after peaking at more than 5% in 2019.

Less new competition will be supportive of industry operating fundamentals.

Building directly is a major competitive advantage because, when and where it makes sense, we can

develop new properties at costs below the level at which existing properties are trading in the

marketplace. Property development is a long-term business that allows us to achieve superior returns

when combined with our industry-leading NOI generation. We remain disciplined and are

confident in our ability to grow the development pipeline to continue achieving attractive returns

that typically reach double-digit NOI yields on cost (including land). We are uniquely positioned to

deliver new properties at an opportune time when others can’t. To that end, Phil Williams, SVP of

Construction, and his team delivered $409 million of development and redevelopment in 2025 and

are building the pipeline for growth and value creation for years to come.

Third-Party Management

Pete Panos established and leads our third-party management business. Through this platform, we

manage properties for independent private owners as if they were our own. We are happy to share

our competitive advantages as a lever to increase our market coverage and scale, while benefiting

from stronger relationships when our partners choose to sell. We achieved strong third-party

management growth in 2025, adding 73 properties and expanding to 446 properties in total, which

includes 84 facilities under contract to manage. The momentum of this business is building as our

partners see the economic and reputational benefits of Public Storage’s platform and brand, in

addition to the ease and certainty of execution when they decide to sell.

Leading Tenant Reinsurance

Marshan Varley heads the Orange Door Storage Insurance Program®, which offers customers peace

of mind and protection from loss or damage to their belongings. The program leads the self-storage

tenant reinsurance industry with more robust offerings and enhanced use of our digital platform.

This has been well received by customers, with adoption increasing and the program generating

$192 million of NOI in 2025, up 13% relative to 2024. The Orange Door Storage Insurance

Program® is positioned for long-term growth as we continue expanding the portfolio and innovating

to ensure best-in-class protection for our customers.

Utilizing Our Growth-Oriented Balance Sheet

Public Storage’s balance sheet is calibrated to enable strong, sustainable growth over full economic

cycles. We are one of two U.S. REITs with A2 and A credit ratings from Moody’s and S&P,

respectively.

Under the leadership of Nicholas Kangas, EVP of Finance, we have funded external growth

primarily with retained cash flow and unsecured notes at attractive pricing on a relative basis, given

the low-leverage nature of our balance sheet, significant cash flow generation, and stable operating

profile. We utilized retained cash flow, net unsecured note issuance, and common stock issuance to

finance our capital allocation, resulting in $318 million in cash on hand at year-end. Capital was

allocated to a combination of acquisitions, development, and redevelopment.

With 4.2x net debt and preferred equity to EBITDA, retained cash flow is expected to be

approximately $605 million in 2026, and with a strong operating profile, we have advantageous

access to capital and significant capacity to fund further growth.

Total Return Performance and Outlook

The strength of our people, platform, balance sheet, and forward-looking strategies continue drive

outperformance relative to our peers.

Total Shareholder Returns1

Cumulative

4.7%

17.6%

62.7%

3.0%

6.2%

45.4%

1.9%

1.6%

37.9%

(3.7%)

2.1%

17.7%

-10%

0%

10%

20%

30%

40%

50%

60%

70%

1-Year

3-Year

5-Year

Public Storage

Extra Space

CubeSmart

National Storage Affiliates

1. As of February 27, 2026.

With next generation leadership taking the reins, improving operating fundamentals, unique

initiatives focused on further enhancing our competitive advantages, a balance sheet poised for

growth, and the delivery of new competitive supply declining from its 2019 peak, PS4.0 is very well

positioned.

As I retire from Public Storage, I want to thank the investor community for the opportunity to work

with you over the past decade. I have enjoyed our relationships and the healthy respect we have

developed, and the continued support and confidence you have placed in the management team at

Public Storage. I have lived by a dual philosophy of “telling it like it is” with a bias to always

prioritize decisions around long-term value creation. I know Tom and the team will continue to

guide their decisions under the same doctrine.

I am forever grateful for the trust that my colleagues, fellow Trustees, and you as shareholders, have

placed in Public Storage. I could not be more excited to hand the reins over to Tom and the

management team as they take Public Storage into its next and even more powerful era.

Joseph D. Russell, Jr.

President and Chief Executive Officer

February 27, 2026