Company: PSA-PH
Filing Date: 2025-10-29
Form Type: 10-Q
Source: 0001628280-25-047163
Chunk: 40

Company: Public Storage
Filing Date: 2025-10-29
Form: 10-Q
Item: Item 2
Chunk 40
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4. The increase of interest expense for the three and nine months ended September 30, 2025 as compared to the same periods in 2024 is due to the issuance of U.S. Dollar and Euro denominated unsecured notes in April 2024 and the issuance of U.S. Dollar unsecured notes in June 2025 partially offset by a more favorable weighted average interest rate. At September 30, 2025, we had $10.1 billion of notes payable outstanding, with a weighted average interest rate of approximately 3.0%.

Foreign currency exchange gain (loss): For the three and nine months ended September 30, 2025, we recorded foreign currency gains of $0.9 million and losses of $213.9 million, respectively, representing primarily the changes in the U.S. Dollar equivalent of our Euro-denominated unsecured notes due to fluctuations in exchange rates, as compared to foreign currency losses of $70.6 million and $20.6 million, for the three and nine months ended September 30, 2024, respectively. 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, 1.116 at September 30, 2024, and 1.104 at December 31, 2023. Future gains and losses on foreign currency will be dependent upon changes in the relative value of the Euro to the U.S. Dollar and the level of Euro-denominated notes payable outstanding.

Income tax expense: We operate as a REIT for U.S. federal income tax purposes. As a REIT, we are generally not subject to U.S. federal income taxes on our taxable income distributed to stockholders. For the three and nine months ended September 30, 2025, we recorded income tax expense totaling $2.8 million and $7.5 million, respectively, related to income taxes incurred in certain state and local jurisdictions in which we operate, as compared to $2.5 million and $6.0 million for the same periods in 2024. 

48

Liquidity and Capital Resources

Overview and our Sources of Capital

While operating as a REIT allows us to minimize the payment of U.S. federal corporate income tax expense, we are required to distribute at least 90% of our taxable income to our shareholders. Notwithstanding this requirement, our annual operating