Company: PSA-PH
Filing Date: 2025-07-30
Form Type: 10-Q
Source: 0001393311-25-000120
Chunk: 38

Company: Public Storage
Filing Date: 2025-07-30
Form: 10-Q
Item: Item 2
Chunk 38
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4. These amounts are net of $3.4 million and $6.8 million in the three and six months ended June 30, 2025, respectively, in development costs that were capitalized to newly developed and redeveloped self-storage facilities, as compared to $4.2 million and $8.7 million for the same periods in 2024.

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

 Three Months Ended June 30,Six Months Ended June 30, 20252024Change20252024Change (Amounts in thousands)Share-based compensation expense $7,059 $6,772 $287 $13,022 $12,810 $212 Corporate management costs8,319 7,027 1,292 15,948 14,820 1,128 Corporate transformation costs1,013 — 1,013 1,802 — 1,802 Other costs 9,336 12,781 (3,445)20,139 20,286 (147)Total $25,727 $26,580 $(853)$50,911 $47,916 $2,995 

General and administrative expense decreased $0.9 million the three months ended June 30, 2025, as compared to the same period of 2024, primarily due to a decrease in loss contingencies related to corporate legal matters.

General and administrative expense increased $3.0 million in the six months ended June 30, 2025, as compared to the same period of 2024, primarily due to increased legal costs associated with nonrecurring corporate legal matters and corporate transformation costs recognized in the six months ended June 30, 2025.

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

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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 2028, 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