Company: PSA-PH
Filing Date: 2025-10-29
Form Type: 10-Q
Source: 0001628280-25-047163
Chunk: 15

Company: Public Storage
Filing Date: 2025-10-29
Form: 10-Q
Item: Item 2
Chunk 15
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We expect industry-wide demand in 2025 to increase as compared to 2024, across a diverse set of markets, subject to potential adverse effects from evolving political, macroeconomic uncertainty, including changes in trade policy and new tariffs, and microeconomic uncertainty. Following the recent wildfires in Southern California in early 2025, we anticipate an adverse impact on revenue growth at our self-storage facilities located in Los Angeles County, where a temporary governmental pricing limitation is in place under the “State of Emergency” declarations. These self-storage facilities generated approximately 10% of revenues earned by our Same Store Facilities in 2024. As a result, we expect Same Store Facilities revenues in 2025 to be similar to those earned in 2024. 

Late Charges and Administrative Fees

Late charges and administrative fees decreased 2.2% and 0.2% for the three and nine months ended September 30, 2025, respectively, as compared to the same periods in 2024, as a result of lower late charges collected on delinquent accounts due to lower customer delinquency rates for both periods.

Analysis of Same Store Cost of Operations 

Cost of operations (excluding depreciation and amortization) remained relatively unchanged for the three months ended September 30, 2025 and increased 1.0% for the nine months ended September 30, 2025, as compared to the same periods in 2024. The year over-year increase for the nine months ended September 30, 2025 was 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 4.9% and 4.5% for the three and nine months ended September 30, 2025, respectively, as compared to the same periods in 2024, as a result of higher assessed values. We expect property tax expense to grow approximately 5.5% in 2025 due primarily to higher assessed values.

On-site property manager payroll expense decreased 2.3% and 6.1% for the three and nine months ended September 30, 2025, respectively, as compared to the same periods in 2024, primarily due to reduction in labor hours driven by the continued implementation of dynamic staffing models based on customer activity levels. We expect on-site property manager payroll expense to decrease moderately in 2025 as compared to 2024 as we continue to enhance operational processes.

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Marketing expense includes internet advertising