Company: PSA-PH
Filing Date: 2025-06-26
Form Type: 424B5
Source: 0001193125-25-147817
Chunk: 109

Company: Public Storage
Filing Date: 2025-06-26
Form: 424B5
Chunk 109
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 from the non-REIT C corporation. Built-in gain is the amount by which an asset’s fair market value exceeds its adjusted                                                                                                                                                                                                                                               
 tax basis at the time we acquire the asset. To the extent that assets are transferred to us in a carry-over basis transaction by a partnership in which a corporation owns an interest, we will be subject to this tax in proportion to the non-REIT C corporation’s interest in the partnership. The results described in this paragraph assume that the non-REIT C corporation will not elect, in lieu of this 
 treatment, to be subject to an immediate tax when the asset is acquired by us. Any gain from the sale of property which we acquired in an exchange under Section 1031 (a like kind exchange) or Section 1033 (an involuntary conversion) of the                                                                                                                                                                  
 Code would be excluded from the application of this built-in gain tax. We also have acquired assets in carry-over basis merger transactions with a number of REITs. If any such acquired REIT failed to qualify                                                                                                                                                                                                  
 as a REIT at the time of its merger into us, it would have been a non-REIT C corporation and we also would be liable for tax liabilities inherited from it.                                                                                                                                                                                                                                                      |

41

| (8) | If we fail to satisfy one of the REIT asset tests (other than certain de minimis failures), but nonetheless                                                                                                  
 maintain our qualification as a REIT because other requirements are met, we will be subject to a tax equal to the greater of $50,000 or the amount determined by multiplying the net income generated by the 
 non-qualifying assets during the period of time that the assets were held as non-qualifying assets by the highest rate of tax applicable to corporations.                                                    |

| (9) | If we fail to satisfy certain of the requirements under the Code the failure of which would result in the loss                                                                                                 
 of our REIT status, and the failure is due to reasonable cause and not willful neglect, we may be required to pay a penalty of $50,000 for each such failure in order to maintain our qualification as a REIT. |

| (10) | If we fail to comply with the requirements to send annual letters to our shareholders requesting information                                                                                                              
 regarding the actual ownership of our shares and the failure was not due to reasonable cause or was due to willful neglect, we will be subject to a $25,000 penalty or, if the failure is intentional, a $50