v3.26.1
Notes Payable
 6 Months Ended
Jun. 30, 2026
Notes Payable [Abstract]  
Notes Payable Notes Receivable
We offer financing, typically in the form of bridge loans, to third-party self-storage owners for operating properties that we manage. The loans, collateralized by operating self-storage properties, typically have a term of three or four years with two one-year extensions, and have variable interest rates. At June 30, 2026 and December 31, 2025, we had notes receivable of $173.3 million and $142.1 million, respectively, with average annual interest rates of 7.6% and 7.9%, respectively. At June 30, 2026, we had unfunded loan commitments of $44.3 million expected to close in the next twelve months, subject to the satisfaction of certain conditions. As of June 30, 2026 and December 31, 2025, none of the notes receivable were in past-due or nonaccrual status and the allowance for expected credit losses was immaterial.
Notes Payable
Our notes payable (all of which were issued by PSOC) are reflected net of issuance costs (including original issue discounts), which are amortized as interest expense on the effective interest method over the term of each respective note. Our notes payable at June 30, 2026 and December 31, 2025 are set forth in the tables below:
June 30, 2026December 31, 2025
Coupon RateEffective RateAmountFair ValueAmountFair Value
(Dollar amounts in thousands)
U.S. Dollar Denominated Unsecured Debt
Notes due February 15, 20260.875%0.000%$— $— $500,000 $497,958 
Notes due November 9, 20261.500%1.640%650,000 643,625 650,000 636,828 
Notes due April 16, 2027
 SOFR+0.70%
4.368%700,000 701,779 700,000 703,891 
Notes due September 15, 20273.094%3.218%500,000 492,953 500,000 494,206 
Notes due May 1, 20281.850%1.962%650,000 620,723 650,000 620,402 
Notes due November 9, 20281.950%2.044%550,000 519,054 550,000 520,843 
Notes due January 15, 20295.125%5.260%500,000 508,858 500,000 516,660 
Notes due May 1, 20293.385%3.459%500,000 485,937 500,000 489,405 
Notes due July 1, 2030 (a)
4.375%4.568%475,000 471,817 475,000 478,958 
Notes due May 1, 20312.300%2.419%650,000 583,194 650,000 588,030 
Notes due November 9, 20312.250%2.322%550,000 487,288 550,000 490,580 
Notes due August 1, 20335.100%5.207%700,000 708,266 700,000 724,886 
Notes due July 1, 20355.000%5.245%400,000 398,567 400,000 406,046 
Notes due December 15, 20355.000%5.195%500,000 494,796 — — 
Notes due August 1, 20535.350%5.474%900,000 863,934 900,000 870,986 
8,225,000 7,980,791 8,225,000 8,039,679 
Euro Denominated Unsecured Debt
Notes due September 9, 20300.500%0.640%798,483 711,700 821,758 727,308 
Notes due January 24, 20320.875%0.978%570,345 495,680 586,970 508,532 
Notes due January 20, 20343.500%3.836%484,793 432,104 498,925 441,580 
Notes due April 11, 20394.080%4.080%171,104 171,773 176,091 177,535 
2,024,725 1,811,257 2,083,744 1,854,955 
Mortgage Debt, secured by 2 real estate facilities with a net book value of 11.0 million
4.187%4.187%1,507 1,455 1,576 1,545 
Total10,251,232 $9,793,503 10,310,320 $9,896,179 
Aggregate debt issuance costs and unamortized premium (discount), net(62,677)(56,581)
Hedge accounting fair value adjustment (a)(8,340)142 
Total$10,180,215 $10,253,881 

(a) The book value includes $8.3 million in adjustments related to changes in fair value attributable to hedging instruments on these notes as of June 30, 2026. See below for further discussion.
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 February 15, 2026, we repaid PSOC’s outstanding $500 million aggregate principal amount of senior notes bearing interest at an annual rate of 0.875% at maturity.
On April 6, 2026, PSOC issued $500 million of senior notes, bearing interest at a fixed rate of 5.000% per year and maturing on December 15, 2035. The senior notes are guaranteed by Public Storage. We received $493.7 million of net proceeds from the issuance.
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 (SOFR + 0.92%). The swaps were designated in combination as a fair value hedge of interest rate risk and mature on July 1, 2030. The Company’s hedging relationship is assumed to be perfectly effective. As of June 30, 2026, the fair value of the swaps was a liability position of $8.3 million. The estimated fair values of our swaps are based upon changes in benchmark interest rates related to these notes. Because this methodology includes inputs that are less observable by the public and are not necessarily reflected in active markets, the measurement of the estimated fair values related to these financial instruments is categorized as level 2 in the fair value hierarchy.
The Company has entered into swaps to hedge interest rate risk related to anticipated issuances of debt, which may include debt related to the Merger. The swaps have a notional amount of approximately $1.0 billion. The fair value of the swaps at June 30, 2026 was an asset position of $7.1 million, which are recorded in Other Assets on the Consolidated Balance Sheet. The company recognized unrealized losses of $0.6 million and $5.9 million during the three and six months ended June 30, 2026, respectively, reported in Interest and Other Income (Expense) in the Consolidated Statement of Income. During the three months ended June 30, 2026 we designated these swaps as Cash Flow Hedges and recognized $13.0 million in unrealized gains, which are included in Other Comprehensive Income related to change in fair value from the date of designation through June 30, 2026. Subsequent to quarter end, we settled $500 million of the swaps as part of the July 20, 2026 senior notes issuance.
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, 2026. Included in these covenants are (a) a maximum Debt to Total Assets of 65% (approximately 18% at June 30, 2026) and (b) a minimum ratio of Adjusted EBITDA to Interest Expense of 1.5x (approximately 11x for the trailing twelve months ended June 30, 2026) as well as covenants limiting the amount we can encumber our properties with mortgage debt.
Euro Denominated Unsecured Notes
At June 30, 2026, our Euro denominated unsecured notes (the “Euro Notes”) consisted of four tranches: (i) €500.0 million issued in a public offering on January 24, 2020, (ii) €700.0 million issued in a public offering on September 9, 2021, (iii) €150.0 million issued to institutional investors on April 11, 2024, and (iv) €425.0 million issued in a public offering on October 3, 2025. 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 gain (loss)” on our income statement (gains of $17.9 million and $59.8 million for the three and six months ended June 30, 2026, respectively, as compared to losses of $147.1 million and $216.3 million for the three and six months ended June 30, 2025, 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, 2026, 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, 2026, approximate principal maturities of our Notes Payable are as follows:
Unsecured DebtMortgage DebtTotal
(Amounts in thousands)
Remainder of 2026$650,000$70$650,070
20271,200,0001461,200,146
20281,200,0001291,200,129
20291,000,000881,000,088
20301,273,4831,0611,274,544
Thereafter 4,926,242134,926,255
$10,249,725$1,507$10,251,232
Weighted average effective rate 3.3%4.2%3.3%
Interest capitalized as real estate totaled $2.4 million and $3.1 million for the six months ended June 30, 2026 and 2025, respectively.