Company: PSA-PH
Filing Date: 2025-10-29
Form Type: 10-Q
Source: 0001628280-25-047163
Chunk: 37

Company: Public Storage
Filing Date: 2025-10-29
Form: 10-Q
Item: Item 2
Chunk 37
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 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.

Third-party property management: At September 30, 2025, in our third-party property management program, we managed 339 facilities (26.6 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 85 facilities that are currently under construction. During the nine months ended September 30, 2025, we added 45 facilities to the program and had 18 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 nine months ended September 30, 2025, we recognized earnings from our equity method investment of Shurgard of $3.7 million and $5.1 million, respectively, as compared to earnings of $2.9 million and $15.5 million for the same periods in 2024. Included in our equity earnings from Shurgard were $14.7 million and $45.7 million of our share of depreciation and amortization expense for the three and nine months ended September 30, 2025, respectively, as compared to $12.0 million and $31.5 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 September 30, 2025 (1.039 at December 31, 2024), and average exchange rates of 1.169 and 1.099 for the three months ended September 30, 2025 and