Company: PSA-PH
Filing Date: 2025-07-30
Form Type: 10-Q
Source: 0001393311-25-000120
Chunk: 37

Company: Public Storage
Filing Date: 2025-07-30
Form: 10-Q
Item: Item 2
Chunk 37
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 (25.4 million net rentable square feet) for unrelated third parties, and were under contract to manage 90 additional facilities (7.7 million net rentable square feet) including 88 facilities that are currently under construction. During the six months ended June 30, 2025, we added 33 facilities to the program and had 16 facilities exit the program. While we expect this business to increase in scope and size, we do not expect any significant changes in overall profitability of this business in the near term as we seek new properties to manage and are in the earlier stages of fill-up for newly managed properties.

Analysis of items not allocated to segments

Equity in earnings of unconsolidated real estate entity

We account for our equity investment in Shurgard using the equity method and record our pro-rata share of its net income. For the three and six months ended June 30, 2025, we recognized a loss from our equity method investment of Shurgard of $2.2 million and earnings of $1.4 million, respectively, as compared to earnings of $6.5 million and $12.6 million for the same periods in 2024. Included in our equity earnings from Shurgard were $17.7 million and $31.0 million of our share of depreciation and amortization expense for the three and six months ended June 30, 2025, respectively, as compared to $9.8 million and $19.5 million for the same periods in 2024.

For purposes of recording our equity in earnings from Shurgard, the Euro was translated at exchange rates of approximately 1.174 U.S. Dollars per Euro at June 30, 2025 (1.039 at December 31, 2024), and average exchange rates of 1.134 and 1.076 for the three months ended June 30, 2025 and 2024, respectively, and average exchange rates of 1.093 and 1.081 for the six months ended June 30, 2025 and 2024, respectively. 

Real estate acquisition and development expense: In the three and six months ended June 30, 2025, we incurred a total of $2.5 million and $10.0 million, respectively, of internal and external expenses related to our acquisition and development of real estate facilities, as compared to $2.9 million and $6.6 million for the same periods in 202