Company: PSA-PH
Filing Date: 2025-06-26
Form Type: 424B5
Source: 0001193125-25-147817
Chunk: 118

Company: Public Storage
Filing Date: 2025-06-26
Form: 424B5
Chunk 118
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 taxable year, will not jeopardize our status as a REIT:

| (1) | charge rent for any property that is based in whole or in part on the income or profits of any person (unless 
 based on a fixed percentage or percentages of gross receipts or sales, as permitted and described above);     |

| (2) | rent any property to a related party tenant, including a taxable REIT subsidiary, unless the rent from the                                                                   
 lease to the taxable REIT subsidiary would qualify for the special exception from the related party tenant rule applicable to certain leases with a taxable REIT subsidiary; |

| (3) | derive rental income attributable to personal property other than personal property leased in connection with   
 the lease of real property, the amount of which is less than 15% of the total rent received under the lease; or |

| (4) | directly perform services considered to be noncustomary or “rendered to the occupant” of the 
 property.                                                                                    |

The ownership of certain partnership interests creates several issues regarding our satisfaction of the gross income tests. First, we earn property management fees from these partnerships. Existing Treasury regulations do not address the treatment of management fees derived by a REIT from a partnership in which the REIT holds a partnership interest, but the IRS has issued a number of private letter rulings holding that the portion of the management fee that corresponds to the REIT’s capital interest in the partnership in effect is disregarded in applying the gross income tests when the REIT holds a “substantial” interest in the partnership. We disregard the portion of management fees derived from partnerships in which we are a partner that corresponds to our interest in these partnerships in determining the amount of our nonqualifying income. Private letter rulings, while indicative of the IRS’s views as to a particular issue, cannot be relied upon by a taxpayer other than the taxpayer to whom the ruling has been issued. There can be no assurance, therefore, that the IRS would not take a contrary 46

position with respect to Public Storage, either rejecting the approach set forth in the private letter rulings mentioned above or contending that our situation is distinguishable from those
addressed in the private letter rulings (for example, arguing that we do not have a “substantial” interest in the partnerships).

In addition, we acquired interests in certain of these partnerships that entitle us to a percentage of profits (either from operations, or
upon a sale, or both) in excess of the percentage of total capital originally contributed to the partnership