Company: PSA-PH
Filing Date: 2025-07-30
Form Type: 10-Q
Source: 0001393311-25-000120
Chunk: 36

Company: Public Storage
Filing Date: 2025-07-30
Form: 10-Q
Item: Item 2
Chunk 36
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enant reinsurance 15,07412,8762,19827,43624,5742,862Merchandise 4,5564,4451118,7289,490(762)Third party property management13,65910,2223,43727,81820,5487,270Total cost of operations 33,28927,5435,74663,98254,6129,370Net operating income (loss):Tenant reinsurance 46,57043,0283,54293,93985,4468,493Merchandise 1,8612,842(981)4,0824,383(301)Third party property management71662654619209410Total net operating income$49,147$45,932$3,215$98,640$90,038$8,602

Tenant reinsurance operations: Tenant reinsurance premium revenue increased $5.7 million or 10.3% for the three months ended June 30, 2025, and increased $11.4 million or 10.3% for the six months ended June 30, 2025, in each case as compared to the same period in 2024, 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 coverage and premium rates in our tenant base at our same store facilities. Tenant reinsurance premium revenue generated from tenants at our Same Store Facilities were $45.6 million and $90.3 million for the three and six months ended June 30, 2025, respectively, as compared to $43.2 million and $86.1 million for the same periods in 2024, representing an increase of 5.6% and 4.9%, respectively.

Cost of operations primarily includes claims paid as well as claims adjustment expenses. Claims expenses vary based upon the number of insured tenants and the volume of events that drive covered customer losses, such as burglary, as well as catastrophic weather events affecting multiple properties such as hurricanes and floods.

We expect tenant reinsurance operations to grow as we roll out insurance policies with increased coverage and higher premiums in 2025, and as we continue to increase the tenant base at our newly acquired and developed facilities.

46

Third-party property management: At June 30, 2025, in our third-party property management program, we managed 329 facilities