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v3.23.3

Notes Payable | 9 Months Ended
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Sep. 30, 2023
Notes Payable [Abstract] |
Notes Payable | 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 September 30, 2023 and December 31, 2022 are set forth in the tables below:
|  |  |  |  | Amounts at September 30, 2023 |  | Amounts at December 31, 2022
| Coupon Rate |  | Effective Rate |  | Principal |  | Unamortized Costs | Book Value |  | Fair Value |  | Book Value |  | Fair Value
|  |  |  |  | ($ amounts in thousands)
U.S. Dollar Denominated Unsecured Debt |  |  |  |  |  |  |  |  |  |  |  |
Notes due April 23, 2024 | SOFR+0.47% |  | 5.791% |  | $ | 700,000 |  |  | $ | (397) |  |  | $ | 699,603 |  |  | $ | 699,950 |  |  | $ | 699,075 |  |  | $ | 691,309 |
Notes due July 25, 2025 | SOFR+0.60% |  | 5.932% |  | 400,000 |  |  | (1,481) |  |  | 398,519 |  |  | 400,277 |  |  | — |  |  | — |
Notes due February 15, 2026 | 0.875% |  | 1.030% |  | 500,000 |  |  | (1,766) |  |  | 498,234 |  |  | 448,646 |  |  | 497,678 |  |  | 441,849 |
Notes due November 9, 2026 | 1.500% |  | 1.640% |  | 650,000 |  |  | (2,704) |  |  | 647,296 |  |  | 580,053 |  |  | 646,643 |  |  | 578,899 |
Notes due September 15, 2027 | 3.094% |  | 3.218% |  | 500,000 |  |  | (2,096) |  |  | 497,904 |  |  | 460,565 |  |  | 497,508 |  |  | 466,029 |
Notes due May 1, 2028 | 1.850% |  | 1.962% |  | 650,000 |  |  | (3,091) |  |  | 646,909 |  |  | 556,154 |  |  | 646,401 |  |  | 558,197 |
Notes due November 9, 2028 | 1.950% |  | 2.044% |  | 550,000 |  |  | (2,457) |  |  | 547,543 |  |  | 465,373 |  |  | 547,182 |  |  | 468,509 |
Notes due January 15, 2029 | 5.125% |  | 5.260% |  | 500,000 |  |  | (3,093) |  |  | 496,907 |  |  | 491,674 |  |  | — |  |  | — |
Notes due May 1, 2029 | 3.385% |  | 3.459% |  | 500,000 |  |  | (1,714) |  |  | 498,286 |  |  | 450,606 |  |  | 498,053 |  |  | 456,855 |
Notes due May 1, 2031 | 2.300% |  | 2.419% |  | 650,000 |  |  | (5,183) |  |  | 644,817 |  |  | 517,832 |  |  | 644,303 |  |  | 530,390 |
Notes due November 9, 2031 | 2.250% |  | 2.322% |  | 550,000 |  |  | (2,872) |  |  | 547,128 |  |  | 429,370 |  |  | 546,866 |  |  | 443,514 |
Notes due August 1, 2033 | 5.100% |  | 5.207% |  | 700,000 |  |  | (5,697) |  |  | 694,303 |  |  | 669,161 |  |  | — |  |  | — |
Notes due August 1, 2053 | 5.350% |  | 5.442% |  | 600,000 |  |  | (8,050) |  |  | 591,950 |  |  | 546,860 |  |  | — |  |  | — |
|  |  |  |  | 7,450,000 |  |  | (40,601) |  |  | 7,409,399 |  |  | 6,716,521 |  |  | 5,223,709 |  |  | 4,635,551 |
Euro Denominated Unsecured Debt |  |  |  |  |  |  |  |  |  |  |  |  |  |
Notes due April 12, 2024 | 1.540% |  | 1.540% |  | 105,744 |  |  | — |  |  | 105,744 |  |  | 103,939 |  |  | 107,035 |  |  | 104,344 |
Notes due November 3, 2025 | 2.175% |  | 2.175% |  | 255,915 |  |  | — |  |  | 255,915 |  |  | 244,650 |  |  | 259,039 |  |  | 246,119 |
Notes due September 9, 2030 | 0.500% |  | 0.640% |  | 740,208 |  |  | (7,771) |  |  | 732,437 |  |  | 566,585 |  |  | 740,634 |  |  | 566,204 |
Notes due January 24, 2032 | 0.875% |  | 0.978% |  | 528,720 |  |  | (4,456) |  |  | 524,264 |  |  | 396,406 |  |  | 530,317 |  |  | 396,297 |
|  |  |  |  | 1,630,587 |  |  | (12,227) |  |  | 1,618,360 |  |  | 1,311,580 |  |  | 1,637,025 |  |  | 1,312,964 |
Mortgage Debt, secured by 2 real estate facilities with a net book value of $11.7 million | 4.414% |  | 4.414% |  | 1,863 |  |  | — |  |  | 1,863 |  |  | 1,653 |  |  | 10,092 |  |  | 9,568 |
|  |  |  |  | $ | 9,082,450 |  |  | $ | (52,828) |  |  | $ | 9,029,622 |  |  | $ | 8,029,754 |  |  | $ | 6,870,826 |  |  | $ | 5,958,083 |
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 July 26, 2023, we completed a public offering of $400 million, $500 million, $700 million, and $600 million aggregate principal amount of unsecured senior notes bearing interest at an annual rate of Compounded SOFR + 0.60% (reset quarterly), 5.125%, 5.100%, and 5.350%, respectively, and maturing on July 25, 2025, January 15, 2029, August 1, 2033, and August 1, 2053, respectively. Interest on the 2025 notes is payable quarterly, commencing on October 25, 2023. Interest on the 2029 notes is payable semi-annually, commencing on January 15, 2024. Interest on the 2033 notes and 2053 notes is payable semi-annually, commencing on February 1, 2024. In connection with the offering, we incurred a total of $18.7 million in costs. 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, 2023. Included in these covenants are (a) a maximum Debt to Total Assets of 65% (approximately 16% at September 30, 2023) and (b) a minimum ratio of Adjusted EBITDA to Interest Expense of 1.5x (approximately 21x for the twelve months ended September 30, 2023) as well as covenants limiting the amount we can encumber our properties with mortgage debt. Euro Denominated Unsecured Notes Our Euro denominated unsecured notes (the “Euro Notes”) consist of four tranches: (i) €242.0 million issued to institutional investors on November 3, 2015, (ii) €100.0 million issued to institutional investors on April 12, 2016, (iii) €500.0 million issued in a public offering on January 24, 2020, and (iv) €700.0 million issued in a public offering on September 9, 2021. 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” on our income statement (gains of $48.2 million and $20.1 million for the three and nine months ended September 30, 2023, respectively, as compared to gains of $100.9 million and $239.2 million for the three and nine months ended September 30, 2022, 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 September 30, 2023, 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 September 30, 2023, approximate principal maturities of our Notes Payable are as follows (amounts in thousands):
| Unsecured Debt |  | Mortgage Debt |  | Total
Remainder of 2023 | $ | — |  | $ | 30 |  | $ | 30
2024 | 805,744 |  | 124 |  | 805,868
2025 | 655,915 |  | 131 |  | 656,046
2026 | 1,150,000 |  | 138 |  | 1,150,138
2027 | 500,000 |  | 146 |  | 500,146
Thereafter | 5,968,928 |  | 1,294 |  | 5,970,222
| $ | 9,080,587 |  | $ | 1,863 |  | $ | 9,082,450
Weighted average effective rate | 3.1% |  | 4.4% |  | 3.1%
Cash paid for interest totaled $97.5 million and $87.6 million for the nine months ended September 30, 2023 and 2022, respectively. Interest capitalized as real estate totaled $6.8 million and $4.2 million for the nine months ended September 30, 2023 and 2022, respectively.

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1B -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(c)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 470 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//470/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1B -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1B -Subparagraph (g) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1B -Subparagraph (i) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1C -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1C -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1C -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1E -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1E Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1I -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1I -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1I -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I + Details
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