Public Storage Reports Revenue Growth but Decline in Net Income for Q2 and First Half of 2025

Public Storage reported its financial results for the second quarter and first half of 2025, revealing a decline in both revenue and net income compared to the same periods in 2024. For the three months ended June 30, 2025, the company generated total revenues of $1.201 billion, a 2.4% increase from $1.173 billion in the prior year. However, net income allocable to common shareholders fell to $309 million, or $1.76 per diluted share, down from $468 million, or $2.66 per diluted share, in the same quarter of 2024. The decrease in net income was primarily attributed to a significant increase in foreign currency losses related to Euro-denominated debt, which amounted to $146 million for the quarter.

In the first half of 2025, Public Storage's revenues reached $2.384 billion, up from $2.330 billion in the first half of 2024. However, net income allocable to common shareholders also decreased to $667 million, or $3.79 per diluted share, compared to $928 million, or $5.26 per diluted share, in the previous year. The company noted that the decline in net income was influenced by a $265 million increase in foreign currency exchange losses and a decrease in equity earnings from its investment in Shurgard Self Storage.

Operationally, Public Storage continued to expand its footprint, acquiring 25 self-storage facilities during the first half of 2025, adding approximately 1.8 million net rentable square feet for a total cost of $303 million. The company also reported that its Same Store Facilities experienced a slight revenue increase of 0.2% for the quarter, driven by higher realized annual rent per occupied square foot, although average occupancy decreased by 0.4%. The company managed a total of 3,103 self-storage facilities across 40 states, with a total of 224.1 million net rentable square feet.

Looking ahead, Public Storage is focused on its corporate transformation initiative aimed at modernization and growth, which includes expanding its geographic presence and enhancing operational efficiency. The company expects to incur approximately $15 to $20 million in corporate transformation costs over the next three years. Additionally, Public Storage has plans to acquire 47 self-storage facilities across 17 states for $481.9 million, further solidifying its growth strategy. The company remains optimistic about its long-term prospects, despite the challenges posed by macroeconomic conditions and foreign currency fluctuations.