Company: PSA-PH
Filing Date: 2025-04-30
Form Type: 10-Q
Source: 0001393311-25-000069
Chunk: 34

Company: Public Storage
Filing Date: 2025-04-30
Form: 10-Q
Item: Item 2
Chunk 34
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 our equity in earnings from Shurgard, the Euro was translated at exchange rates of approximately 1.082 U.S. Dollars per Euro at March 31, 2025 (1.039 at December 31, 2024), and average exchange rates of 1.051 and 1.086 for the three months ended March 31, 2025 and 2024, respectively.

Real estate acquisition and development expense: In the three months ended March 31, 2025, we incurred a total of $7.4 million and $3.7 million, respectively, of internal and external expenses related to our acquisition and development of real estate facilities. These amounts are net of $3.5 million and $4.4 million in the three months ended March 31, 2025, respectively, in development costs that were capitalized to newly developed and redeveloped self-storage facilities. The year-over-year increase of real estate acquisition and development expense was primarily due to $3.8 million of impairment write-down of land parcels associated with cancelled development projects during the three months ended March 31, 2025.

General and administrative expense: The following table sets forth our general and administrative expense: 

 Three Months Ended March 31, 20252024Change (Amounts in thousands)Share-based compensation expense $5,963 $6,038 $(75)Corporate management costs7,633 7,795 (162)Other costs 11,588 7,503 4,085 Total $25,184 $21,336 $3,848 

General and administrative expense increased $3.8 million in the three months ended March 31, 2025, as compared to the same period of 2024 due primarily to 1) increased legal costs associated with nonrecurring corporate legal matters of $2.6 million and 2) $0.8 million of costs recognized in the three months ended March 31, 2025 related to a strategic corporate transformation initiative to modernize the workforce for our corporate functions and relocate certain employees of our corporate functions from Glendale, California, to Dallas, Texas. The initiative is intended to transform our corporate functions, improve efficiency and productivity, enhance collaboration, and align the organizational structure with our long-term growth objectives. While we expect to incur corporate transformation costs, primarily related to severance, retention, cross-training and relocation costs as we complete the initiative over the next two years, we do