Company: PSA-PH
Filing Date: 2025-02-24
Form Type: 10-K
Source: 0001393311-25-000036
Chunk: 34

Company: Public Storage
Filing Date: 2025-02-24
Form: 10-K
Item: Item 7
Chunk 34
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 the components of net income, including Ancillary Operations and certain items not allocated to segments, present a comparison for the year ended December 31, 2024 to the year ended December 31, 2023. The results of these components for the years ended December 31, 2023 compared to December 31, 2022 was included in our Annual Report on Form 10-K for the year ended December 31, 2023 on page 23, under Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” which was filed with the SEC on February 20, 2024.

Ancillary Operations

Ancillary revenues and expenses include amounts associated with the reinsurance of policies against losses to goods stored by tenants in our self-storage facilities, sale of merchandise at our self-storage facilities, and management of property owned by unrelated third parties. The following table sets forth our ancillary operations: 

Year Ended December 31, 20242023Change (Amounts in thousands)Revenues:Tenant reinsurance premiums $226,595$203,503$23,092Merchandise 26,97027,511(541)Third party property management46,05827,06318,995Total revenues 299,623258,07741,546Cost of operations:Tenant reinsurance 56,67842,36614,312Merchandise 17,63317,137496Third party property management46,97026,49320,477Total cost of operations 121,28185,99635,285Net operating income (loss):Tenant reinsurance 169,917161,1378,780Merchandise 9,33710,374(1,037)Third party property management(912)570(1,482)Total net operating income$178,342$172,081$6,261

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Tenant reinsurance operations: Tenant reinsurance premium revenue increased $23.1 million or 11.3% in 2024 over 2023, as a result of an increase in our tenant base with respect to acquired, newly developed, and expanded facilities and the third party properties we manage, as well as higher insurance participation in our tenant base at our same store facilities. Tenant reinsurance premium revenue generated from tenants at our Same-Store Facilities were $170.0 million and $163.2 million in 2024 and 2023, respectively, representing a 4.2