Company: PSA-PH
Filing Date: 2025-07-30
Form Type: 10-Q
Source: 0001393311-25-000120
Chunk: 16

Company: Public Storage
Filing Date: 2025-07-30
Form: 10-Q
Item: Item 2
Chunk 16
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 be similar to those earned in 2024. 

Late Charges and Administrative Fees

Late charges and administrative fees increased 0.1% and  0.9% for the three and six months ended June 30, 2025 as compared to the same period in the previous year as a result of higher late charges collected on delinquent accounts and higher administrative fees as a result of higher move-in activities.

Analysis of Same Store Cost of Operations 

Cost of operations (excluding depreciation and amortization) increased 2.9% and 1.5% in the three and six months ended June 30, 2025, respectively, as compared to the same period in 2024, due primarily to increased property tax expense and centralized management costs, partially offset by decreased on-site property manager payroll expense and marketing.

Property tax expense increased 4.4% in the three and six months ended June 30, 2025, as compared to the same period in 2024, as a result of higher assessed values. We expect property tax expense to grow approximately 5% in 2025 due primarily to higher assessed values.

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Centralized management costs represent administrative and cash compensation expenses for shared general corporate functions to the extent their efforts are devoted to self-storage operations. Such functions include information technology support, hardware, and software, as well as centralized administration of payroll, benefits, training, repairs and maintenance, customer service, pricing and marketing, operational accounting and finance, legal costs, and costs from field management executives. Centralized management costs increased 13.6% and 8.1% in the three and six months ended June 30, 2025, respectively, as compared to the same period in 2024, primarily driven by increases in personnel-related costs, including executive, human resource and facility management and pricing and marketing support. 

Marketing expense includes Internet advertising we utilize through our online paid search programs, television advertising and the operating costs of our website and telephone reservation center. Internet advertising expense, comprising keyword search fees assessed on a “per click” basis, varies based upon demand for self-storage space, the quantity of people inquiring about self-storage through online search, occupancy levels, the number and aggressiveness of bidding competitors, and other factors. These factors are volatile; accordingly, Internet advertising can increase or decrease significantly in the short-term. Our marketing expense increased by 5.0% and decreased by 3.5% in the three and six months ended June 30,