News Release

Public Storage

701 Western Avenue

Glendale, CA 91201-2349

www.publicstorage.com

Public Storage Reports Results for the Three Months Ended September 30, 2015 

GLENDALE,  California – Public Storage (NYSE:PSA) announced today operating results for the three months ended September 30, 2015. 

Operating Results for the Three Months Ended September 30, 2015 

For the three months ended September 30, 2015, net income allocable to our common shareholders was $273.5 million or $1.58 per diluted common share, compared to $231.8 million or $1.34 per diluted common share for the same period in 2014 representing an increase of $41.7 million or $0.24 per diluted common share. The increase is primarily due to a $41.6 million increase in self-storage net operating income as a result of a $29.5 million increase in our Same Store Facilities and a $12.1 million increase in our Non Same Store Facilities.  Revenues for the Same Store Facilities increased 6.7% or $31.9 million in the three months ended September 30, 2015 as compared to the same period in 2014, due primarily to higher realized annual rent per occupied square foot.  Cost of operations for the Same Store Facilities increased by 1.9% or $2.4 million in the three months ended September 30, 2015 as compared to the same period in 2014, due primarily to increases in property taxes.  The increase in net operating income for the Non Same Store Facilities is due primarily to the impact of the development and acquisition of 191 self-storage facilities since January 2013.  

Operating Results for the Nine Months Ended September 30, 2015 

For the nine months ended September 30, 2015, net income allocable to our common shareholders was $750.0 million or $4.32 per diluted common share, compared to $624.2 million or $3.61 per diluted common share for the same period in 2014 representing an increase of $125.8 million or $0.71 per diluted common share. The increase is primarily due to a $126.4 million increase in self-storage net operating income as a result of a $84.6 million increase in our Same Store Facilities and a $41.8 million increase in our Non Same Store Facilities.  Revenues for the Same Store Facilities increased 6.5% or $89.9 million in the nine months ended September 30, 2015 as compared to the same period in 2014, due primarily to higher realized annual rent per occupied square foot.  Cost of operations for the Same Store Facilities increased by 1.3% or $5.3 million in the nine months ended September 30, 2015 as compared to the same period in 2014, due primarily to increases in property taxes, offset partially by lower advertising and selling expenses.  The increase in net operating income for the Non Same Store Facilities is due primarily to the impact of the development and acquisition of 191 self-storage facilities since January 2013.  

Funds from Operations

For the three months ended September 30, 2015, funds from operations (“FFO”) was $2.27 per diluted common share, as compared to $2.08 for the same period in 2014, representing an increase of $0.19 per share. FFO is a non-GAAP (generally accepted accounting principles) term defined by the National Association of Real Estate Investment Trusts and generally represents net income before depreciation, gains and losses and impairment charges with respect to real estate assets.

For the nine months ended September 30, 2015,  FFO was $6.33 per diluted common share, as compared to $5.81 for the same period in 2014, representing an increase of $0.52 per share.

We also present “Core FFO per share,” a non-GAAP measure that represents FFO per share excluding the impact of (i) foreign currency exchange gains and losses, (ii) EITF D-42 charges related to the redemption of preferred securities, (iii) property acquisition costs and (iv) certain other items. We believe Core FFO per share is a helpful measure used by investors and REIT analysts to understand our performance.   However, Core FFO per share is not a substitute for net income per share.  Because other REITs may not compute Core FFO per share in the same manner as we do, may not use the same terminology or may not present such a measure, Core FFO per share may not be comparable among REITs.

The following table reconciles from FFO per share to Core FFO per share (unaudited):

Property Operations – Same Store Facilities

The Same Store Facilities represent those facilities that have been owned and operated on a stabilized basis since January 1, 2013 and therefore provide meaningful comparisons for 2014 and 2015.  The following table summarizes the historical operating results of these 1,990 facilities (126.3 million net rentable square feet) that represent approximately 86% of the aggregate net rentable square feet of our U.S. consolidated self-storage portfolio at September 30, 2015.    

The following table summarizes selected quarterly financial data with respect to the Same Store Facilities (unaudited):

Property Operations – Non Same Store Facilities

The Non Same Store Facilities at September 30, 2015 represent 265 facilities that were not stabilized with respect to occupancies or rental rates since January 1, 2013 or that we did not own as of January 1, 2013.  The following table summarizes operating data with respect to the Non Same Store Facilities (unaudited):

Investing and Capital Markets Activities

During the three months ended September 30, 2015, we acquired two self-storage facilities in Colorado, with 0.2 million net rentable square feet, for $26 million.  Subsequent to September 30, 2015, we acquired or were under contract to acquire eleven self-storage facilities (one in California, eight in Florida and two in Texas), with 0.8 million net rentable square feet, for $108 million.

During the three months ended September 30, 2015, we completed three newly developed facilities and various expansion projects (0.3 million net rentable square feet) costing $31 million.  At September 30, 2015 we had various facilities in development (3.4 million net rentable square feet) estimated to cost $417 million and various expansion projects (0.6 million net rentable square feet) estimated to cost $90 million.  The remaining $332 million development cost for these projects is expected to be incurred primarily in the remainder of 2015 and 2016.

During the three months ended September 30, 2015, we called our 6.500% Series P Preferred Shares for redemption.  The shares were redeemed on October 8, 2015.

We agreed to issue, in a privately negotiated transaction closing on November 3, 2015, €242.0 million of Euro denominated Senior Unsecured Notes, bearing interest at a fixed rate of 2.175% and maturing in ten years. 

Distributions Declared

On October 28, 2015, our Board of Trustees declared a regular common quarterly dividend of $1.70 per common share.  The Board also declared dividends with respect to our various series of preferred shares. All the dividends are payable on December 30, 2015 to shareholders of record as of December 15, 2015.

Third Quarter Conference Call

A conference call is scheduled for October 29, 2015 at 11:00 a.m. (PDT) to discuss the third quarter earnings results.  The domestic dial-in number is (866) 406-5408, and the international dial-in number is (973) 582-2770 (conference ID number for either domestic or international is 57192844). A simultaneous audio webcast may be accessed by using the link at www.publicstorage.com under “Company Info, Investor Relations, News and Events, Events Calendar.”  A replay of the conference call may be accessed through November 12, 2015 by calling (800) 585-8367 (domestic) or (404) 537-3406 (international) or by using the link at www.publicstorage.com under “Company Info, Investor Relations, News and Events, Events Calendar.” All forms of replay utilize conference ID number 57192844.

About Public Storage

Public Storage, a member of the S&P 500 and FT Global 500, is a REIT that primarily acquires, develops, owns and operates self-storage facilities. The Company’s headquarters are located in Glendale, California.  At September 30, 2015, we had interests in 2,266 self-storage facilities located in 38 states with approximately 147 million net rentable square feet in the United States and 217 storage facilities located in seven Western European nations with approximately eleven million net rentable square feet operated under the “Shurgard” brand.  We also own a 42% common equity interest in PS Business Parks, Inc. (NYSE:PSB) which owned and operated approximately 28 million rentable square feet of commercial space at September 30, 2015.

Additional information about Public Storage is available on our website, www.publicstorage.com.

Forward-Looking Statements

All statements in this press release, other than statements of historical fact, are forward-looking statements which may be identified by the use of the words “expects,” “believes,” “anticipates,” “should,” “estimates” and similar expressions.  These forward-looking statements involve known and unknown risks and uncertainties, which may cause our actual results and performance to be materially different from those expressed or implied in the forward-looking statements.   Factors and risks that may impact future results and performance are described from time to time in our filings with the Securities and Exchange Commission, including in Item 1A, “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2014, our other Quarterly Reports on Form 10-Q and current reports on Form 8-K. These risks include, but are not limited to, the following: general risks associated with the ownership and operation of real estate, including changes in demand for our storage facilities, potential liability for environmental contamination,  adverse changes in tax, real estate and zoning laws and regulations and the impact of natural disasters; risks associated with downturns in the national and local economies in the markets in which we operate; the impact of competition from new and existing self-storage and commercial facilities and other storage alternatives; difficulties in our ability to successfully evaluate, finance, integrate into our existing operations and manage acquired and developed properties; risks related to our development of new properties and/or participation in joint ventures; risks associated with international operations including, but not limited to, unfavorable foreign currency rate fluctuations that could adversely affect our earnings and cash flows; the impact of the regulatory environment as well as national, state and local laws and

regulations including, without limitation, those governing REITs and our tenant reinsurance business; risks associated with a possible failure by us to qualify as a REIT under the Internal Revenue Code of 1986, as amended; security breaches or a failure of our networks, systems or technology could adversely impact our business, customer and employee relationships; changes in federal tax laws related to the taxation of REITs, which could impact our status as a REIT; difficulties in raising capital at a reasonable cost; delays in the development process; 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; and economic uncertainty due to the impact of war or terrorism. We disclaim any obligation to update publicly or otherwise revise any forward-looking statements, whether as a result of new information, new estimates, or other factors, events or circumstances after the date of this press release, except where expressly required by law.

(a)  Beginning with the three months ended September 30, 2015, commercial and property management operations are no longer included in ancillary revenues and expenses and are now included, net, in “Interest and other income.”  All prior period amounts have also been reclassified.