Public Storage (NYSE:PSA) Q1 2022 Results Conference Call May 4, 2022 12:00 PM ET Company Participants Ryan Burke - VP, IR Joe Russell - President and CEO Tom Boyle - SVP and CFO Conference Call Participants Jeff Spector - Bank of America Michael Goldsmith - UBS Ki Bin Kim - Truist Juan Sanabria - BMO Capital Markets Samir Khanal - Evercore Keegan Carl - Berenberg Ron Kamdem - Morgan Stanley Rob Simone - Hedgeye Risk Smedes Rose - Citigroup Todd Thomas - KeyBanc Capital Spenser Allaway - Green Street Caitli ...

PART I FINANCIAL INFORMATION [Item 1. Consolidated Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Consolidated%20Financial%20Statements%20(Unaudited)) The unaudited consolidated financial statements for Q1 2022 reflect significant year-over-year growth in revenues and net income, driven by strong self-storage operations and increased total assets [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2022, total assets increased, total liabilities slightly decreased, and total equity grew, reflecting retained earnings and preferred share issuance Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2022 | December 31, 2021 | | :--- | :--- | :--- | | Cash and equivalents | $940,524 | $734,599 | | Real estate facilities, net | $15,422,723 | $15,306,996 | | **Total assets** | **$17,698,781** | **$17,380,908** | | Notes payable | $7,441,723 | $7,475,279 | | **Total liabilities** | **$7,895,694** | **$7,957,370** | | **Total equity** | **$9,719,261** | **$9,355,289** | [Consolidated Statements of Income](index=5&type=section&id=Consolidated%20Statements%20of%20Income) For Q1 2022, the company reported a significant increase in total revenues and net income allocable to common shareholders, resulting in higher diluted EPS Q1 2022 vs Q1 2021 Income Statement (in thousands, except per share data) | Metric | Q1 2022 | Q1 2021 | % Change | | :--- | :--- | :--- | :--- | | Total Revenues | $973,445 | $767,262 | 26.9% | | Net Income | $516,295 | $434,262 | 18.9% | | Net Income allocable to common shareholders | $464,124 | $385,810 | 20.3% | | Diluted EPS | $2.63 | $2.21 | 19.0% | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities increased significantly in Q1 2022, while cash was primarily used for investing activities like capital expenditures and acquisitions, and financing activities including shareholder distributions Cash Flow Summary (in thousands) | Activity | Q1 2022 | Q1 2021 | | :--- | :--- | :--- | | Net cash from operating activities | $656,241 | $509,162 | | Net cash used in investing activities | ($288,531) | ($403,725) | | Net cash used in financing activities | ($161,253) | ($202,971) | | **Increase (decrease) in cash** | **$206,630** | **($97,356)** | [Condensed Notes to Consolidated Financial Statements](index=11&type=section&id=Condensed%20Notes%20to%20Consolidated%20Financial%20Statements) The notes detail operations, accounting policies, and financial items, highlighting Q1 2022 acquisitions and the pending PSB merger expected to yield substantial cash proceeds - In Q1 2022, the company acquired **ten self-storage facilities** (781,000 net rentable sq. ft.) for a total cost of **$127.7 million**, comprising **$112.3 million** in cash and **$15.4 million** in partnership units[35](index=35&type=chunk) - On January 13, 2022, the company issued **10.0 million depositary shares** of its **4.100% Series S Preferred Shares**, raising **$250.0 million** in gross proceeds[68](index=68&type=chunk) - Subsequent to quarter-end, PS Business Parks, Inc. (PSB), in which the company holds a **41% equity interest**, entered into a merger agreement with Blackstone; if consummated, Public Storage expects to receive approximately **$2.7 billion** in cash proceeds and recognize a gain of about **$2.2 billion**[101](index=101&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes strong Q1 2022 performance to robust demand, higher rental rates, and occupancies, with significant NOI increases from Same Store and acquired facilities, supported by strategic initiatives and a strong financial profile [Results of Operations](index=27&type=section&id=Results%20of%20Operations) Net income for common shareholders increased in Q1 2022, driven by higher self-storage NOI and equity share of gains, with Core FFO per share rising significantly FFO and Core FFO per Share Reconciliation | Metric | Q1 2022 | Q1 2021 | % Change | | :--- | :--- | :--- | :--- | | Diluted EPS | $2.63 | $2.21 | 19.0% | | FFO per share | $3.83 | $3.08 | 24.4% | | Core FFO per share | $3.65 | $2.82 | 29.4% | - The increase in net income was primarily due to a **$167.3 million increase** in self-storage net operating income and a **$23.6 million equity share** of gains from PS Business Parks, Inc. real estate sales[115](index=115&type=chunk) [Analysis of Self-Storage Operations](index=28&type=section&id=Analysis%20of%20Self-Storage%20Operations) Self-storage operations show strong organic growth in Same Store facilities with increased NOI and rent per square foot, alongside significant NOI contributions from recently acquired properties Same Store Facilities (2,282 facilities) Operating Highlights - Q1 2022 vs Q1 2021 | Metric | Q1 2022 | Q1 2021 | % Change | | :--- | :--- | :--- | :--- | | Revenues | $749.3M | $647.2M | 15.8% | | Net Operating Income (NOI) | $561.3M | $465.8M | 20.5% | | Weighted Average Occupancy | 95.6% | 95.6% | 0.0% | | Realized Annual Rent per Occupied Sq. Ft. | $20.29 | $17.54 | 15.7% | - Same Store revenue growth was driven by **rate increases for existing tenants** and a **15.1% year-over-year increase in move-in rates** for new tenants due to strong demand[133](index=133&type=chunk) - NOI from Acquired Facilities increased from **$3.9 million** in Q1 2021 to **$55.3 million** in Q1 2022, primarily due to large portfolios acquired in 2021, including ezStorage and All Storage[123](index=123&type=chunk)[151](index=151&type=chunk)[152](index=152&type=chunk) [Liquidity and Capital Resources](index=46&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains a strong liquidity position with substantial cash and credit facilities, supplemented by expected proceeds from the pending PSB merger, supporting capital expenditures and development projects - The company holds high credit ratings of **'A' from S&P** and **'A2' from Moody's** for its senior notes, ensuring effective access to capital markets[196](index=196&type=chunk) - Upon closing the PSB merger, the company expects to receive approximately **$2.7 billion** in cash and will be required to distribute an estimated **$2.3 billion** taxable gain to common shareholders[200](index=200&type=chunk)[210](index=210&type=chunk) - As of March 31, 2022, the company has development and expansion projects with a remaining cost to complete of **$496.2 million**, expected to be incurred over the next 18 to 24 months[213](index=213&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=49&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk exposure stems from its debt, with a low weighted average interest rate, and foreign currency fluctuations related to its Shurgard investment, naturally hedged by Euro-denominated notes - At March 31, 2022, the company had approximately **$7.4 billion** in debt with a weighted average effective rate of **1.8%**[217](index=217&type=chunk)[218](index=218&type=chunk) - Foreign currency exposure from the investment in Shurgard (book value **$313.3 million**, fair value **$2.0 billion**) is naturally hedged by **€1.5 billion** (**$1.7 billion**) of Euro-denominated debt[219](index=219&type=chunk) [Item 4. Controls and Procedures](index=49&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of March 31, 2022, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were **effective** at a reasonable assurance level as of the end of the period[221](index=221&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, these controls[222](index=222&type=chunk) PART II OTHER INFORMATION [Item 1. Legal Proceedings](index=50&type=section&id=Item%201.%20Legal%20Proceedings) The company is party to various legal proceedings and claims, but management believes the likelihood of these resulting in a material loss is remote - The company states that the likelihood of any current legal proceedings resulting in a **material loss**, either individually or in aggregate, is **remote**[223](index=223&type=chunk) [Item 1A. Risk Factors](index=50&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2021 - No **material changes** to the risk factors disclosed in the 2021 Form 10-K were reported[224](index=224&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=50&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not repurchase any common shares during the quarter, with a significant number of shares remaining available under the existing repurchase program, though no current plans exist - The Board has authorized a repurchase program for up to **35,000,000 common shares**; as of March 31, 2022, **11,278,084 shares** remain available for repurchase under this program[226](index=226&type=chunk) - No common shares were repurchased during the three months ended March 31, 2022[216](index=216&type=chunk) [Item 6. Exhibits](index=50&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with or incorporated by reference into the Form 10-Q, including certifications and XBRL data files

Public Storage (NYSE:PSA) Q4 2021 Results Conference Call February 23, 2022 12:00 PM ET Company Participants Ryan Burke - VP, IR Joe Russell - President and CEO Tom Boyle - SVP and CFO Conference Call Participants Elvis Rodriguez - Bank of America Michael Goldsmith - UBS Jonathan Hughes - Raymond James Todd Thomas - KeyBanc Capital Markets Spenser Allaway - Green Street Caitlin Burrows - Goldman Sachs Smedes Rose - Citi Samir Khanal - Evercore Mike Mueller - JP Morgan Ronald Kamdem - Morgan Stanley Keegan C ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☒ Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the fiscal year ended December 31, 2021. or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to . Commission File Number: 001-33519 PUBLIC STORAGE (Exact name of Registrant as specified in its charter) Maryland 95-3551121 (State or other jurisdiction of incorporatio ...

Public Storage (NYSE:PSA) Q3 Earnings Conference Call November 2, 2021 12:00 PM ET Company Participants Ryan Burke – Vice President of Investor Relations Joseph Russell – CEO Thomas Boyle – CFO Mike McGowan – Senior Vice President of Acquisitions Conference Call Participants Jeffrey Spector – Bank of America Smedes Rose – Citi Juan Sanabria – BMO Todd Thomas – KeyBanc Capital Caitlin Burrows – Goldman Sachs Ki Bin Kim – Truist Rob Simone – Hedgeye Risk Management Jonathan Hughes – Raymond James Ronald Kamde ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended September 30, 2021 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from ____________ to ____________. Commission File Number: 001-33519 Public Storage (Exact name of registrant as specified in its charter) | Maryland | 95-3551121 | | --- ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q [X] Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended June 30, 2021 or [ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from ____________ to ____________. Commission File Number: 001-33519 Public Storage (Exact name of registrant as specified in its charter) | Maryland | 95-3551121 | | --- ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q [X] Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended March 31, 2021 or [ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from ____________ to ____________. Commission File Number: 001-33519 Public Storage (Exact name of registrant as specified in its charter) | Maryland | 95-3551121 | | --- ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K [X] Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the fiscal year ended December 31, 2020. or [ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to . Commission File Number: 001-33519 PUBLIC STORAGE (Exact name of Registrant as specified in its charter) Maryland 95-3551121 (State or other jurisdiction of incorpor ...

Financial Data and Key Metrics Changes - The company reported a slight improvement in same-store revenue, which improved to negative 2.7% from negative 3% in the previous quarter, indicating a recovery trend in underlying drivers such as fee-based rates and occupancy [66][70] - Occupancy rates increased significantly, finishing the third quarter up 200 basis points and reaching 230 basis points in October, reflecting strong customer demand [50][70] Business Line Data and Key Metrics Changes - The company resumed existing tenant rate increases in the third quarter, initially on a test basis, and has since increased the volume of those increases as confidence in tenant performance grew [16][18] - Move-in rates were up 8.2% in the quarter, with continued strength in top-of-funnel demand and reduced move-out activity contributing to improved occupancy [50][70] Market Data and Key Metrics Changes - The acquisition market has opened up, with many sellers looking to bring assets into the market, driven by low interest rates and strong performance in the storage sector [9][10] - The company is tracking a sizable portfolio acquisition of 36 properties across 15 markets, with 24 of the assets being relatively new Class A properties [11][12] Company Strategy and Development Direction - The company is focused on acquiring well-positioned assets to enhance its portfolio, particularly in prime core markets, and is optimistic about capturing growth opportunities from the new acquisitions [10][12] - The management emphasized the importance of maintaining a conservative balance sheet to allow for investments through cycles, indicating a disciplined approach to capital allocation [100][101] Management's Comments on Operating Environment and Future Outlook - Management noted that customer activity has been solid, with better collections, reduced move-outs, and strong new customer demand, indicating a positive trend in the operating environment [19][32] - The company is closely monitoring the potential impacts of the pandemic on consumer behavior and is prepared to adapt its strategies accordingly [85][88] Other Important Information - The company has seen a significant increase in e-rental platform usage, with over 40% of move-in volume coming from this channel, highlighting a shift towards more efficient customer interactions [89] - The company is actively looking for both domestic and international acquisition opportunities, leveraging its experience and knowledge from previous investments [80][91] Q&A Session Summary Question: Market activity and acquisition opportunities - Management noted that the acquisition market has opened up, with many sellers looking to sell assets due to favorable conditions, and they are tracking a sizable portfolio acquisition [9][10] Question: Rent increases for existing customers - Management confirmed that they resumed rent increases for existing tenants, albeit at a lower magnitude due to the current economic environment [16][18] Question: Move-out activity trends - Management reported a significant decline in move-out volumes, with a 12% to 15% decrease across all geographies, indicating strong customer retention [26][28] Question: Marketing spend trends - Management explained that marketing spend was reduced in the third quarter as top-of-funnel demand improved, but they still anticipate using advertising as a tool to attract new customers [38][41] Question: Demand drivers and future outlook - Management discussed various demand drivers, including work-from-home trends and housing market strength, and emphasized the need to monitor these factors as the pandemic evolves [85][86]