v3.26.3
Notes Receivable
 9 Months Ended
Sep. 30, 2026
Notes Payable [Abstract]  
Notes Receivable 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 September 30, 2026 and December 31, 2025, we had notes receivable of $445.3 million and $142.1 million, respectively, with average annual interest rates of 9.0% and 7.9%, respectively. In connection with the NSA acquisition, we provided the PS-NSA JV with a $237 million mezzanine loan at an average interest rate of 10.22% and a $40 million credit facility, which was undrawn at September 30, 2026. During the nine months ended September 30, 2026, we recognized $4.8 million of interest income related to the mezzanine loan in interest and other income (expense) on our Consolidated Statements of Income. At September 30, 2026, we had unfunded bridge loan commitments of $23.1 million expected to close in the next twelve months, subject to the satisfaction of certain conditions.
As of September 30, 2026 and December 31, 2025, none of the notes receivable were in past-due or nonaccrual status and the allowance for expected credit losses was not material.Notes Payable
Our notes payable are reflected net of issuance costs (including original issue discounts), which are amortized as interest expense on the effective interest method over the term of each respective note. All of our notes payable were issued by PSOC with a full and unconditional guarantee by the Company, except the Canadian dollar notes, which were issued by PS Canada Finance ULC with a full and unconditional guarantee by PSOC and the Company. Our notes payable at September 30, 2026 and December 31, 2025 are set forth in the tables below:
September 30, 2026December 31, 2025
Coupon RateEffective RateAmountFair ValueAmountFair Value
(Dollar amounts in thousands)
U.S. Dollar Denominated Unsecured Debt
Notes due February 15, 20260.875%0.000%$— $— $500,000 $497,958 
Notes due November 9, 20261.500%1.640%650,000 647,933 650,000 636,828 
Notes due April 16, 2027
 SOFR+0.70%
4.332%700,000 699,932 700,000 703,891 
Notes due September 15, 20273.094%3.218%500,000 491,593 500,000 494,206 
Notes due May 1, 20281.850%1.962%650,000 617,320 650,000 620,402 
Notes due November 9, 20281.950%2.044%550,000 514,372 550,000 520,843 
Notes due January 15, 20295.125%5.260%500,000 498,968 500,000 516,660 
Notes due May 1, 20293.385%3.459%500,000 476,836 500,000 489,405 
Notes due July 1, 2030 (a)
4.375%4.568%475,000 457,548 475,000 478,958 
Notes due May 1, 20312.300%2.419%650,000 563,799 650,000 588,030 
Notes due August 31, 2031
SOFR+0.70%
4.386%500,000 500,000 — — 
Notes due November 9, 20312.250%2.322%550,000 467,762 550,000 490,580 
Notes due February 01, 20324.700%4.950%400,000 382,390 — — 
Notes due August 1, 20335.100%5.207%700,000 670,670 700,000 724,886 
Notes due July 1, 20355.000%5.245%400,000 372,439 400,000 406,046 
Notes due December 15, 20355.000%5.195%500,000 464,671 — — 
Notes due August 15, 20365.150%5.421%500,000 466,486 — — 
Notes due August 1, 20535.350%5.474%900,000 776,614 900,000 870,986 
9,625,000 9,069,333 8,225,000 8,039,679 
Euro Denominated Unsecured Debt
Notes due September 9, 20300.500%0.640%793,954 687,882 821,758 727,308 
Notes due January 24, 20320.875%0.978%567,110 471,667 586,970 508,532 
Notes due January 20, 20343.500%3.836%482,044 446,148 498,925 441,580 
Notes due April 11, 20394.080%4.080%170,133 157,811 176,091 177,535 
2,013,241 1,763,508 2,083,744 1,854,955 
Canadian Denominated Unsecured Debt
Notes due September 16, 20334.540%4.577%281,640 279,274 — — 
Mortgage Debt, secured by 32 real estate facilities with a net book value of 543.6 million
3.449%3.449%174,373 162,408 1,576 1,545 
Total12,094,254 $11,274,523 10,310,320 $9,896,179 
Aggregate debt issuance costs and unamortized premium (discount), net(80,430)(56,581)
Hedge accounting fair value adjustment (a)(21,791)142 
Total$11,992,033 $10,253,881 

(a) The book value includes $21.8 million in adjustments related to changes in fair value attributable to hedging instruments on these notes as of September 30, 2026. See below for further discussion.
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. We received $493.7 million of net proceeds from the issuance.
On July 20, 2026, PSOC issued $900 million aggregate principal amount of senior notes at an effective interest rate of 4.855%, after considering the effects of the settled interest rate swaps described below, including $400 million aggregate principal amount of fixed rate senior notes bearing interest at an annual rate of 4.700% maturing on February 1, 2032, and $500 million aggregate principal amount of fixed rate senior notes bearing interest at an annual rate of 5.150% maturing on August 15, 2036. We received $886 million of net proceeds from the issuance.
We use interest rate swaps to hedge the interest rate risk associated with debt. 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 September 30, 2026, the fair value of the swaps was a liability position of $21.8 million.
In connection with the anticipated issuances of fixed-rate notes, on April 22, 2026, we entered into four interest rate swaps with an aggregate notional amount of $1 billion to hedge our exposure to changes in interest rates. On July 20, 2026, in connection with our offering of $500 million fixed-rate senior notes due August 15, 2036, we settled $500 million of these swaps and received $6.8 million, which was recorded in accumulated other comprehensive income and is being amortized as a reduction to interest expense over the term of the related notes. At September 30, 2026, the remaining swaps had an aggregate notional amount of $500 million, were designated as cash flow hedges, and had an aggregate fair value of $37.6 million, which was recorded in Other Assets on the Consolidated Balance Sheet. For swaps designated as cash flow hedges we recognized $54.3 million in unrealized gains in Other Comprehensive Income from the date of designation through September 30, 2026. For the nine months ended September 30, 2026, we recognized losses of $5.9 million, reported in Interest and Other Income (Expense) on the Consolidated Statement of Income, primarily reflecting changes in fair value prior to formal hedge designation.
In connection with the PS Canada acquisition (see Note 3), on September 1, 2026, PSOC entered into two cross-currency swaps with an aggregate notional amount of $900.0 million, which are designated as a hedge of our net investment in PS Canada. The first is a fixed-for-fixed cross-currency swap with a notional amount of $400.0 million, maturing February 1, 2032. Under this swap, we receive fixed U.S. dollar interest at 0.854% and pay fixed CAD interest at 0%, semiannually, and it effectively converts our 4.700% senior notes due February 1, 2032 into CAD-denominated debt. The second is a floating-for-floating cross-currency swap with a notional amount of $500.0 million, maturing June 25, 2031. Under this swap, we receive one-month Term SOFR plus 0.70% and pay one-month Term CORRA plus 0.78%, monthly, and it effectively converts the Term Loan into CAD-denominated floating-rate debt. Neither swap involved an initial exchange of notional amounts. At maturity, we will pay the CAD notional amounts and receive the U.S. dollar notional amounts. We assess hedge effectiveness using the spot method. Amounts excluded from the assessment of effectiveness are recognized in interest expense as the periodic swap interest accrues. For the three and nine months ended September 30, 2026, we recognized a reduction of interest expense of $0.8 million and a gain of $10.6 million in other comprehensive income (loss) related to these swaps. At September 30, 2026, the swaps were in asset position of $10.6 million, recorded in Other Assets.
We estimate the fair values of our interest rate swaps and cross-currency swaps using discounted cash flow models based on observable market inputs, including SOFR and CORRA forward curves and
foreign currency exchange rates, adjusted for counterparty and our own nonperformance risk. These measurements are categorized as Level 2 in the fair value hierarchy.
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 September 30, 2026. Included in these covenants are (a) a maximum Debt to Total Assets of 65% (approximately 20% at September 30, 2026) and (b) a minimum ratio of Adjusted EBITDA to Interest Expense of 1.5x (approximately 10x for the trailing twelve months ended September 30, 2026) as well as covenants limiting the amount we can encumber our properties with mortgage debt.
Euro-Denominated Unsecured Notes
At September 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.
On September 1, 2026, we designated $370 million of our Euro Notes due January 20, 2034 as a hedge of our net investment in Shurgard. Remeasurement gains and losses on the designated Euro Notes are recorded in accumulated other comprehensive income (loss), where they offset translation adjustments on the hedged investment. These amounts will remain in accumulated other comprehensive income (loss) until the investment is sold or substantially liquidated. During the third quarter of 2026, a $0.2 million remeasurement gain on the designated Euro Notes was recognized in other comprehensive income as part of this hedging relationship.
CAD-Denominated Unsecured Notes
At September 30, 2026, our CAD denominated unsecured notes (the “CAD Notes”) consisted of C$400 million issued in a public offering on September 16, 2026. The CAD Notes have financial covenants similar to those of the U.S. Dollar Denominated Unsecured Notes.
Foreign Currency Exchange Gain (Loss)
We reflect changes in the U.S. Dollar equivalent of the amount payable of our Euro denominated and CAD denominated debt including the associated interest, as a result of changes in foreign exchange rates, after considering the effects of the Net Investment Hedges, as “Foreign currency exchange gain (loss)” on our income statement (gains of $10.9 million and $70.4 million for the three and nine months ended September 30, 2026, respectively, as compared to gains of $0.9 million and losses of $215.4 million for the three and nine months ended September 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. In connection with our acquisition of NSA, we assumed $167 million in mortgage debt, net of discount.
At September 30, 2026, the related contractual interest rates of our mortgage notes are fixed, ranging between 2.8% and 7.1%, and mature between September 1, 2028 and July 1, 2030.
At September 30, 2026, approximate principal maturities of our Notes Payable are as follows:
Unsecured DebtMortgage DebtTotal
(Amounts in thousands)
Remainder of 2026$650,000$35$650,035
20271,200,00085,0461,285,046
20281,200,00088,1291,288,129
20291,000,000881,000,088
20301,268,9541,0751,270,029
Thereafter 6,600,927—6,600,927
$11,919,881$174,373$12,094,254
Weighted average effective rate 3.6%3.4%3.6%
Interest capitalized as real estate totaled $3.9 million and $5.0 million for the nine months ended September 30, 2026 and 2025, respectively.