v3.25.2
Note Receivable
 6 Months Ended
Jun. 30, 2025
Notes Payable [Abstract]  
Note Receivable
6. Notes Receivable
We offer bridge loan financing to third-party self-storage owners for operating properties that we manage. The bridge loans, collateralized by operating self-storage properties, typically have a term of three years or four years with two one-year extensions, and have variable interest rates. At June 30, 2025, we had a notes receivable balance of $78.5 million included in other assets and an unfunded loan commitment of $44.1 million expected to close in the next twelve months, subject to the satisfaction of certain conditions. As of June 30, 2025, none of the notes receivable were in past-due or nonaccrual status and the allowance for expected credit losses was immaterial.
8. Notes Payable
Our notes payable (all of which were issued by PSOC), are reflected net of issuance costs (including original issue discounts), which are amortized as interest expense on the effective interest method over the term of each respective note. Our notes payable at June 30, 2025 and December 31, 2024 are set forth in the tables below:
   
Amounts at June 30, 2025
Amounts at
 December 31, 2024
 Coupon RateEffective Rate PrincipalUnamortized CostsBook
 Value		Fair
 Value		Book
 Value		Fair
 Value
   ($ amounts in thousands)
U.S. Dollar Denominated Unsecured Debt
Notes due July 25, 2025
SOFR+0.60%
4.940%$400,000 $(57)$399,943 $400,053 $399,537 $400,714 
Notes due February 15, 2026
0.875%1.030%500,000 (470)499,530 488,887 499,160 479,639 
Notes due November 9, 20261.500%1.640%650,000 (1,182)648,818 627,715 648,383 614,981 
Notes due April 16, 2027
SOFR+0.70%
5.041%700,000 (1,936)698,064 700,708 697,544 706,119 
Notes due September 15, 2027
3.094%3.218%500,000 (1,172)498,828 489,257 498,564 480,904 
Notes due May 1, 2028
1.850%1.962%650,000 (1,906)648,094 610,539 647,756 592,876 
Notes due November 9, 20281.950%2.044%550,000 (1,616)548,384 512,256 548,144 494,867 
Notes due January 15, 20295.125%5.260%500,000 (2,068)497,932 515,728 497,639 506,074 
Notes due May 1, 2029
3.385%3.459%500,000 (1,172)498,828 484,819 498,673 472,031 
Notes due July 1, 20304.375%4.568%475,000 (4,050)470,950 473,628 — — 
Notes due May 1, 20312.300%2.419%650,000 (3,984)646,016 577,297 645,673 555,387 
Notes due November 9, 20312.250%2.322%550,000 (2,253)547,747 480,262 547,570 459,682 
Notes due August 1, 20335.100%5.207%700,000 (4,682)695,318 718,627 695,028 695,171 
Notes due July 1, 20355.000%5.143%400,000 (4,404)395,596 398,444 — — 
Notes due August 1, 20535.350%5.474%900,000 (15,497)884,503 863,379 884,224 856,992 
 8,625,000 (46,449)8,578,551 8,341,599 7,707,895 7,315,437 
Euro Denominated Unsecured Debt
Notes due November 3, 2025
2.175%2.175%284,194 — 284,194 283,680 251,385 249,979 
Notes due September 9, 20300.500%0.640%822,002 (5,812)816,190 719,802 720,735 630,159 
Notes due January 24, 2032
0.875%0.978%587,145 (3,518)583,627 505,529 515,575 443,113 
Notes due April 11, 20394.080%4.080%176,143 (69)176,074 181,962 155,736 166,979 
   1,869,484 (9,399)1,860,085 1,690,973 1,643,431 1,490,230 
 Mortgage Debt, secured by 2 real estate facilities with a net book value of $11.0 million
4.287%4.287%1,643 — 1,643 1,620 1,708 1,591 
 $10,496,127 $(55,848)$10,440,279 $10,034,192 $9,353,034 $8,807,258 

Public Storage has provided a full and unconditional guarantee of PSOC’s obligations under each series of unsecured notes.
U.S. Dollar Denominated Unsecured Notes
On June 30, 2025, PSOC completed a public offering of $875 million aggregate principal amount of senior notes, including $$475 million aggregate principal amount of fixed rate senior notes bearing interest at an annual rate of 4.375% maturing on July 1, 2030 and $400 million aggregate principal amount of fixed rate senior notes bearing interest at an annual rate of 5.000% maturing on July 1, 2035. Interest on the senior notes is payable semi-annually on January 1 and July 1 of each year, commencing on January 1, 2026. In connection with the offering, we received approximately $867 million in net proceeds from the offering.
The U.S. Dollar denominated unsecured notes (the “U.S. Dollar Denominated Unsecured Notes”) have various financial covenants with which we were in compliance at June 30, 2025. Included in these covenants are (a) a maximum Debt to Total Assets of 65% (approximately 19% at June 30, 2025) and (b) a minimum ratio of Adjusted EBITDA to Interest Expense of 1.5x (approximately 12x for the twelve months ended June 30, 2025) as well as covenants limiting the amount we can encumber our properties with mortgage debt.
Euro Denominated Unsecured Notes
At June 30, 2025, our Euro denominated unsecured notes (the “Euro Notes”) consisted of four tranches: (i) €242.0 million issued to institutional investors on November 3, 2015, (ii) €500.0 million issued in a public offering on January 24, 2020, (iii) €700.0 million issued in a public offering on September 9, 2021, and (iv) €150.0 million issued to institutional investors on April 11, 2024. The Euro Notes have financial covenants similar to those of the U.S. Dollar Denominated Unsecured Notes.
We reflect changes in the U.S. Dollar equivalent of the amount payable including the associated interest, as a result of changes in foreign exchange rates as “Foreign currency exchange (loss) gain” on our income statement (losses of $147.1 million and $216.3 million for the three and six months ended June 30, 2025, respectively, as compared to gains of $12.5 million and $50.4 million for the three and six months ended June 30, 2024, respectively).
Mortgage Notes
We assumed our non-recourse mortgage debt in connection with property acquisitions, and we recorded such debt at fair value with any premium or discount to the stated note balance amortized using the effective interest method.
At June 30, 2025, the related contractual interest rates of our mortgage notes are fixed, ranging between 3.9% and 7.1%, and mature between September 1, 2028 and July 1, 2030.
At June 30, 2025, approximate principal maturities of our Notes Payable are as follows (amounts in thousands):
 Unsecured DebtMortgage DebtTotal
Remainder of 2025$684,194$67$684,261
20261,150,0001381,150,138
20271,200,0001461,200,146
20281,200,0001291,200,129
20291,000,000881,000,088
Thereafter 5,260,2901,0755,261,365
$10,494,484$1,643$10,496,127
Weighted average effective rate 3.0%4.3%3.0%
Interest capitalized as real estate totaled $3.1 million and $5.2 million for the six months ended June 30, 2025 and 2024, respectively.
Interest Rate Swaps
On June 30, 2025, in connection with our public offering of senior notes due July 1, 2030, we entered into three separate interest rate swap agreements, with a combined notional amount of $475 million, which effectively convert the debt’s fixed interest rate to a variable rate. The swaps were designated in combination as a fair value hedge of interest rate risk.
As of June 30, 2025, the fair value of each swap was zero.