Public Storage (PSA) risk factors, FY2024 10-K

Risks Related to Our Properties and Our Business

1. 01Natural disasters, terrorist attacks, civil unrest, or other events that could damage or otherwise disrupt our ability to operate our facilities could adversely impact our business and financial results
2. 02We are subject to risks from the consequences of climate change, including severe weather events and the adverse impact of other steps that may be taken to prevent or mitigate climate change
3. 03Operating costs, including property taxes, could increase
4. 04The acquisition of existing properties or self-storage operating companies is subject to risks that may adversely affect our growth and financial results
5. 05Our development program subjects us to risks
6. 06There is significant competition among self-storage operators and from other storage alternatives
7. 07Demand for self-storage facilities may be affected by customer perceptions and factors outside of our control
8. 08Our newly developed and expanded facilities, and facilities that we manage for third party owners, may negatively impact the revenues of our legacy facilities
9. 09We may incur significant liabilities from environmental contamination or moisture infiltration
10. 10Elevated interest rate levels could adversely impact us and our tenants
11. 11Economic conditions can adversely affect our business, financial condition, and growth
12. 12We have exposure to European operations through our ownership in Shurgard
13. 13Public health and other crises have adversely impacted, and may in the future adversely impact, our business
14. 14We have been and may in the future be adversely impacted by emergency regulations adopted in response to significant events, such as natural disasters or public health crises, that could adversely impact our operations
15. 15Our marketing and pricing strategies may fail to be effective or may be constrained by factors outside of our control
16. 16We are exposed to ongoing litigation and other legal and regulatory actions, which may divert management’s time and attention, require us to pay damages and expenses or restrict the operation of our business
17. 17Our use of or failure to adopt advancements in information technology may hinder or prevent us from achieving strategic objectives or otherwise harm our business
18. 18The failure or disruption of our computer and communications systems, on which we are heavily dependent, could significantly harm our business
19. 19If our confidential information is compromised or corrupted, including as a result of a cybersecurity incident, our reputation and business relationships could be damaged and our financial condition and operating results could be adversely affected
20. 20Ineffective succession planning for our CEO and executive management, as well as for our other key employees, may impact the execution of our strategic plan
21. 21We may fail to protect our intellectual property adequately
22. 22We may be subject to labor disruptions related to unionization efforts
23. 23Our use of artificial intelligence could expose us to various risks

Risks Related to Our Ownership, Organization and Structure

1. 24Takeover attempts or changes in control could be thwarted, even if beneficial to shareholders
2. 25Holders of our preferred shares have dividend, liquidation, and other rights that are senior to the rights of the holders of our common shares
3. 26Holders of our preferred shares are subject to certain risks

Risks Related to Government Regulations and Taxation

1. 27We would incur adverse tax consequences if we failed to qualify as a REIT, and we would have to pay substantial U.S. federal corporate income taxes
2. 28Dividends payable by REITs do not qualify for the preferential tax rates available for some dividends
3. 29We may pay some taxes, reducing cash available for shareholders
4. 30If PSA OP were to fail to maintain its status as a partnership for U.S. federal income tax purposes, our financial results would be adversely impacted
5. 31Changes in tax laws could negatively impact us
6. 32We have exposure to increased property tax in California
7. 33We are subject to extensive laws and regulations and to frequent changes in such laws and regulations
8. 34Our tenant reinsurance business is subject to governmental regulation, which could reduce our profitability or limit our growth
9. 35In the event that we recognize a significant gain from cash settlement of a forward sale agreement, the U.S. federal income tax treatment of the cash that we receive in such instance is unclear and could impact our ability to meet the REIT qualification requirements
10. 36International trade disputes, including U.S. trade tariffs and retaliatory tariffs, could adversely impact our business