Company: PSA-PH
Filing Date: 2025-10-29
Form Type: 10-Q
Source: 0001628280-25-047163
Chunk: 39

Company: Public Storage
Filing Date: 2025-10-29
Form: 10-Q
Item: Item 2
Chunk 39
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 costs and increased legal costs associated with nonrecurring corporate legal matters and corporate transformation costs recognized in the nine months ended September 30, 2025.

As part of our operating model transformation, we have launched a corporate transformation initiative focused on modernization and growth. This includes streamlining our processes through technology and expanding our geographic footprint with a stronger corporate presence in Texas and offshore locations. The initiative is intended to transform our corporate functions improving efficiency and productivity. 

We expect to incur corporate transformation costs of approximately $15 to $20 million as we complete the initiative over the next three years. Beginning in 2026, we believe this restructuring plan will result in future cost savings of approximately $3 to $5 million annually, although the amount and timing of such savings are subject to change depending on a variety of factors.

Interest and other income: The following table sets forth our interest and other income: 

Three Months Ended September 30,Nine Months Ended September 30,20252024Change20252024Change(Amounts in thousands)Interest earned on cash balances$8,598 $12,235 $(3,637)$23,668 $33,838 $(10,170)Commercial operations1,849 2,223 (374)7,203 7,065 138 Interest earned on notes receivable, net1,733 — 1,733 2,976 — 2,976 Unrealized gain on private equity investments6,148 2,626 3,522 4,360 4,740 (380)Other2,684 2,945 (261)8,828 6,605 2,223 Total $21,012 $20,029 $983 $47,035 $52,248 $(5,213)

Interest expense: For the three and nine months ended September 30, 2025, we incurred $81.6 million and $228.3 million, respectively, of interest on our outstanding notes payable, as compared to $77.3 million and $223.5 million for the same periods in 2024. In determining interest expense, these amounts were offset by capitalized interest of $1.9 million and $5.0 million during the three and nine months ended September 30, 2025, respectively, associated with our development activities, as compared to $3.0 million and $8.2 million for the same periods in 202