What changed in this filing

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Item 2. Management’s Discussion and Analysis

2026-05-01 compared with 2025-10-31 · 78 added, 102 removed, 225 unchanged (44% of the section changed)

15 unchanged sentences

See the notes to the unaudited condensed consolidated financial statements that contain additional information regarding our accounting policies and other disclosures.

We are a fully integrated, self-administered and self-managed real estate investment trust (“REIT”), formed to own, operate, manage, acquire, develop and redevelop self-storage properties (“stores”).

We are a fully integrated, self-administered and self-managed real estate investment trust (“REIT”) that owns, operates, manages, acquires, develops and redevelops self-storage properties (“stores”) and provides lending to owners of stores located throughout the United States.

We derive substantially all of our revenues from our two segments:

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Revenue from our tenant reinsurance segment consists of insurance revenues from the reinsurance of risks relating to the loss of goods stored by tenants in our stores.

Our stores are generally situated in highly visible locations clustered around large population centers.

Our stores are generally situated in highly visible locations clustered around population centers.

The clustering of our assets around these population centers enables us to reduce our operating costs through economies of scale.

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We believe that we are able to respond quickly and effectively to changes in local, regional and national economic conditions by adjusting rental rates through the combination of our revenue management team and our industry-leading technology systems.

We consider a store to be in the lease-up stage after it has been issued a certificate of occupancy, but before it has achieved stabilization.

We consider a store to be stabilized once it has been open for three years or has sustained average square foot occupancy of 80% or more for one calendar year.

As of September 30, 2025, we owned or had ownership interests in 2,427 operating stores.

As of March 31, 2026, we owned or had ownership interests in 2,428 operating stores.

Of these stores, 2,008 are wholly-owned, 12 are in consolidated joint ventures, and 408 are in unconsolidated joint ventures.

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These stores are located in 42 states and Washington, D.C.

The majority of our stores are clustered around large population centers.

The clustering of assets around these population centers enables us to reduce our operating costs through economies of scale.

The clustering of assets around population centers enables us to reduce our operating costs through economies of scale.

Our acquisitions have given us an increased scale in many core markets as well as a foothold in many markets where we had no previous presence.

As of September 30, 2025, approximately 2,460,000 tenants were leasing storage units at the operating stores that we own and/or manage, primarily on a month-to-month basis, providing the flexibility to increase rental rates over time as market conditions permit.

As of March 31, 2026, approximately 2,480,000 tenants were leasing storage units at the operating stores that we own and/or manage, primarily on a month-to-month basis, providing the flexibility to increase rental rates over time as market conditions permit.

Existing tenants generally receive rate increases at least annually, for which no direct correlation has been drawn to our vacancy trends.

Although leases are short-term in duration, the typical tenant tends to remain at our stores for an extended period of time.

For same-stores as of September 30, 2025, the average length of stay for tenants who have vacated was approximately 17.0 months.

For same-store properties as of March 31, 2026, the average length of stay for tenants who had vacated was approximately 16.8 months.

Our store portfolio is made up of different types of construction and building configurations.

Most often sites are what we consider “hybrid” stores, a mix of drive-up and multi-floor buildings.

The following table presents additional information regarding net rentable square feet and the number of stores by state:

September 30, 2025

Most often sites are what we consider “hybrid” facilities, a mix of both drive-up buildings and multi-floor buildings.

The following table presents additional information regarding our net rentable square feet and the number of stores by state:

As of March 31, 2026

REIT Owned Joint Venture Owned Managed Total

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Indiana 94 4,183,507 1 57,567 32 2,485,526 127 6,726,600

Iowa — — — — 1 86,680 1 86,680

Kansas 1 50,164 2 108,646 3 237,168 6 395,978

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Amounts in thousands, except store and share data

Comparison of the three and nine months ended September 30, 2025 and 2024

Results for the three and nine months ended September 30, 2025 included the operations of 2,427 stores (2,005 wholly-owned, 11 in consolidated joint ventures, and 411 in joint ventures accounted for using the equity method) compared to the results for the three and nine months ended September 30, 2024, which included the operations of 2,401 stores (1,934 wholly-owned, seven in consolidated joint ventures, and 460 in joint ventures accounted for using the equity method).

Comparison of the three months ended March 31, 2026 and 2025

Results for the three months ended March 31, 2026 included the operations of 2,428 stores (2,008 wholly-owned, 12 in consolidated joint ventures, and 408 in joint ventures accounted for using the equity method) compared to the results for the three months ended March 31, 2025, which included the operations of 2,424 stores (1,975 wholly-owned, ten in consolidated joint ventures, and 439 in joint ventures accounted for using the equity method).

Material or unusual changes in the results of our operations are discussed below:

The following table presents information on revenues earned for the periods indicated:

For the Three Months Ended September 30, For the Nine Months Ended September 30,

2025 2024 $ Change % Change 2025 2024 $ Change % Change

For the Three Months Ended March 31,

2026 2025 $ Change % Change

Property rental $ 733,213 $ 704,380 $ 28,833 4.1 %

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Total revenues $ 856,027 $ 819,997 $ 36,030 4.4 %

Property rental— The increase in property rental revenues for the three and nine months ended September 30, 2025 was primarily the result of an increase of $32,063 and $78,672, respectively, associated with acquisitions completed in 2024 and acquisitions completed in the first nine months of 2025.

The increase in revenue resulting from these acquisitions was partially offset by decreases in rental revenue of $5,882 and $15,601, respectively, due to property dispositions for the three and nine months ended September 30, 2025.

We acquired 58 wholly-owned stores and disposed of six wholly-owned stores in 2024, and we acquired 46 wholly-owned stores and disposed of 12 wholly-owned stores during the nine months ended September 30, 2025.

Tenant reinsurance— The increase in tenant reinsurance revenues was due primarily to an increase in the number of stores operated.

We operated 4,238 stores at September 30, 2025 compared to 3,862 stores at September 30, 2024.

Property rental— The increase in property rental revenues for the three months ended March 31, 2026 compared to the same period in the prior year was primarily the result of an increase of $22,679 associated with acquisitions completed in 2025 and acquisitions completed in the first three months of 2026.

The increase in revenue resulting from these acquisitions was partially offset by a decrease in property rental revenue of $6,543 due to property dispositions over the same period.

We acquired one wholly-owned store and disposed of one wholly-owned store during the three months ended March 31, 2026.

We acquired 76 wholly-owned stores and disposed of 37 wholly-owned stores during the year ended December 31, 2025.

In addition, property rental revenue increased by $11,372 due to improved operating results at our same-store properties.

Tenant reinsurance— The increase in tenant reinsurance revenue for the three months ended March 31, 2026 compared to the same period in the prior year was due primarily to an increase in the number of stores operated.

We operated 4,344 stores at March 31, 2026 compared to 4,099 stores at March 31, 2025.

Management fees and other income— Management fees and other income primarily represent the fees collected for our management of stores owned by third parties and unconsolidated joint ventures and other transaction fee income.

The increase for the three and nine months ended September 30, 2025 was due to both an increase in the number of stores managed and an increase in the overall revenue of stores under management when compared to the same period last year.

As of September 30, 2025, we managed 2,222 stores for unconsolidated joint ventures and third parties, compared to 1,921 stores as of September 30, 2024.

The increase for the three months ended March 31, 2026 compared to the same period in the prior year was primarily due to both an increase in the number of stores managed and an increase in the overall revenue of stores under management when compared to the same period last year.

As of March 31, 2026, we managed 1,916 stores for third party owners, compared to 1,675 stores as of March 31, 2025.

These increases are offset by a decrease in management fees attributable to stores in unconsolidated joint ventures, where the number of stores decreased from 439 to 408 over the same period.

The following table presents information on expenses for the periods indicated:

For the Three Months Ended September 30, For the Nine Months Ended September 30,

2025 2024 $ Change % Change 2025 2024 $ Change % Change

For the Three Months Ended March 31,

2026 2025 $ Change % Change

Property operations $ 238,303 $ 223,582 $ 14,721 6.6 %

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Total expenses $ 488,474 $ 467,028 $ 21,446 4.6 %

Property operations— The increase in property operations expense during the three and nine months ended September 30, 2025 consists primarily of an increase of $14,738 and $38,855, respectively, related to acquisitions completed in 2024 and acquisitions completed in the first nine months of 2025.

We acquired 58 wholly-owned stores in 2024 and an additional 46 wholly-owned stores during the nine months ended September 30, 2025.

Additionally, for the three and nine months ended September 30, 2025, there was an increase of $9,184 and $31,215, respectively, at our same-store properties primarily due to an increase in payroll and benefits, marketing, repairs and maintenance, and property tax expenses.

Property operations— The increase in property operations expense during the three months ended March 31, 2026 compared to the same period in the prior year consists primarily of an increase of $9,457 related to acquisitions completed in 2025 and in the first three months of 2026.

We acquired 76 wholly-owned stores in 2025 and one wholly-owned store during the three months ended March 31, 2026.

Additionally, for the three months ended March 31, 2026, there was an increase of $5,243 in property operations expense at our same-store properties primarily due to an increase in repairs and maintenance, insurance, and property operating expenses.

Tenant reinsurance— Tenant reinsurance expense represents the costs that are incurred to provide tenant reinsurance and is subject to volatility due to increased claims arising when significant events occur at stores.

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These expenses are recognized as incurred.

Our overall general and administrative expense increased primarily as a result of our increased size through acquisitions and growth in our managed portfolio.

Depreciation and amortization— We amortize to expense intangible assets-customer intangibles on a straight-line basis over the average period that a tenant is expected to utilize the facility (currently estimated at 18 months).

Depreciation and amortization expense decreased for both the three and nine month periods, primarily due to the customer intangibles associated with our merger with Life Storage being fully expensed in January of this year.

Depreciation and amortization expense increased for the three months ended March 31, 2026 compared to the same period in the prior year primarily as a result of the acquisition of new stores.

We acquired 76 wholly-owned stores in 2025 and one wholly-owned store during the three months ended March 31, 2026.

Other Revenues and Expenses

The following table presents information on other revenues and expenses for the periods indicated:

For the Three Months Ended September 30, For the Nine Months Ended September 30,

2025 2024 $ Change % Change 2025 2024 $ Change % Change

Loss on real estate assets held for sale and sold, net $ (105,128) $ (8,961) $ (96,167) 1,073.2 % $ (70,231) $ (63,620) $ (6,611) 10.4 %

For the Three Months Ended March 31,

2026 2025 $ Change % Change

Gain on real estate assets held for sale and sold, net $ — $ 35,761 $ (35,761) (100.0) %

Interest expense (147,299) (142,399) (4,900) 3.4 %

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Equity in earnings and dividend income from unconsolidated real estate entities 15,760 19,931 (4,171) (20.9) %

Equity in earnings of unconsolidated real estate ventures - gain on sale of real estate assets and sale of a joint venture interest 9,354 13,730 (4,376) (31.9) % 9,354 13,730 (4,376) (31.9) %

Impairment of Life Storage trade name — (51,763) 51,763 (100.0) % — (51,763) 51,763 (100.0) %

Equity in earnings of unconsolidated real estate ventures - gain on sale of a joint venture interest 207 — 207 100.0 %

Income tax expense (10,789) (8,991) (1,798) 20.0 %

Total other revenues & expenses, net $ (115,133) $ (68,044) $ (47,089) 69.2 %

Loss on real estate assets held for sale and sold, net— As of September 30, 2025, we had 29 properties classified as held for sale.

Of the 29 stores, 27 had an estimated fair value, net of selling costs, less than the carrying value of the assets.

During the three and nine months ended September 30, 2025, we recorded estimated net losses of $105,128 and $108,887, respectively.

Additionally, we completed the sale of 12 previously held for sale stores, resulting in a net gain of $38,656, which partially offset the loss recorded for the nine months ended September 30, 2025.

As of September 30, 2024, we had 17 stores classified as held for sale.

Of the 17 stores, nine had an estimated fair value, net of selling costs, less than the carrying value of the assets.

During the three and nine months ended September 30, 2024, we recorded estimated losses of $8,961 and $63,620, respectively.

Interest expense— The increase in interest expense during the three and nine months ended September 30, 2025 was primarily the result of higher outstanding debt.

As of September 30, 2025, we had approximately $13,162,058 in total face value of debt, compared to approximately $11,827,208 as of September 30, 2024.

Non-cash interest expense related to amortization of discount on unsecured senior notes, net— Represents the amortization of the discount assigned to the fair value of the Life Storage unsecured senior notes assumed as part of the Life Storage Merger and net premium from bond offerings, offset by the discount from assumed debt.

Interest income— Interest income represents interest earned on variable interest rate bridge loans, debt securities and on notes receivable from Common Operating Partnership unit holders.

The increase in interest income during the three and nine months ended September 30, 2025 was primarily the result of an increase in the amount of bridge loans outstanding.

The balance of bridge loans was $1,544,719 as of September 30, 2025, compared to $1,032,244 as of September 30, 2024.

Gain on real estate assets held for sale and sold, net— During the three months ended March 31, 2026, we disposed of one previously held for sale store, resulting in no gain or loss .

We disposed of 11 previously held for sale stores during the three months ended March 31, 2025, resulting in a gain of $39,520.

This gain was partially offset by losses of $3,759 related to the sale of three land parcels and three properties listed for sale during the quarter where the estimated fair value, net of selling costs, was less than the net carrying value of the assets.

Interest expense— The increase in interest expense during the three months ended March 31, 2026 compared to the same period in the prior year was primarily the result of higher outstanding debt.

As of March 31, 2026, we had approximately $13,406,885 in total face value of debt, compared to approximately $12,809,851 as of March 31, 2025.

Non-cash interest expense related to amortization of discount on unsecured senior notes, net— Represents the amortization of the discount assigned to the fair value of the Life Storage unsecured senior notes assumed as part of our merger with Life Storage and net premium from bond offerings, offset by the discount from assumed debt.

Interest income— Interest income represents interest earned on bridge loans, debt securities and on a note receivable from a Common Operating Partnership unit holder.

The increase in interest income during the three months ended March 31, 2026 compared to the same period in the prior year was primarily the result of an increase in the amount of bridge loans outstanding.

The balance of bridge loans outstanding was $1,452,159 as of March 31, 2026, compared to $1,369,089 as of March 31, 2025.

The increase is also attributable to interest received on a $50,000 note receivable from a Common Operating Partnership unit holder.

This note receivable originated in December 2024, bears interest at 10% per annum and matures on June 30, 2026.

Equity in earnings and dividend income from unconsolidated real estate entities— Equity in earnings of unconsolidated real estate entities represents the income earned through our ownership interests in unconsolidated joint ventures.

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To the extent that cash or profits in excess of these preferred returns are generated, we receive a higher percentage of the excess cash or profits.

The increase for the nine months ended September 30, 2025 is primarily due to the transaction in November 2024 in which we acquired additional ownership interest in the HF1 Sovran HHF Storage Holdings LLC and HF2 Sovran HHF Storage Holdings II LLC from our partner in the unconsolidated joint ventures.

The transaction increased our equity ownership percentages from 20% and 15%, respectively, to 49% in each unconsolidated joint venture.

The decrease for the three months ended September 30, 2025 is primarily due to the transfer and distribution of membership interests in the PR II EXR JV LLC joint venture in March 2025, the acquisition of our partners’ membership interests in the ESS-NYFL JV LP and ESS CA-TIVS JV LP joint ventures in April 2025, and the sale of our membership interest in the Life Storage Spacemax LLC joint venture in July 2025.

The number of stores in unconsolidated joint ventures in which we have ownership interests was 411 as of September 30, 2025, compared to 460 as of September 30, 2024.

Dividend income represents dividends from our investment in preferred stock of SmartStop and its affiliates.

Equity in earnings of unconsolidated real estate ventures - gain on sale of real estate assets and sale of a joint venture interest —The net gain of $9,354 for the three and nine months ended September 30, 2025 is due to the sale of our membership interest in the Life Storage Spacemax LLC joint venture, which held six properties, in July 2025.

During the three months ended September 30, 2024, the ESS Bristol Investments LLC joint venture sold five of its eight stores to one of our unconsolidated joint ventures, and we recognized a gain of $10,324 for our pro rata share of the transaction.

Additionally, we sold our membership interest in the Alan Jathoo JV LLC unconsolidated joint venture, which held nine stores, to our partner and recognized a gain of $3,406 as a result of the transaction.

Impairment of Life Storage trade name —During the three months ended September 30, 2024, we decided to operate all our stores under a single brand.

As a result of that decision, we deemed the Life Storage trade name as an intangible asset to be impaired and recognized a loss for the full value of the asset.

Income tax expense —The increase in income tax expense for the three and nine months ended September 30, 2025 was primarily the result of an increase in book income and a decrease in permanent tax deductions related to stock awards.

The decrease for the three months ended March 31, 2026 is primarily due to the transfer and distribution of membership interests in the PR II EXR JV LLC joint venture in March 2025 and the acquisition of our partners’ membership interests in the ESS-NYFL JV LP and ESS CA-TIVS JV LP joint ventures in April 2025.

Also contributing to the decrease is the sale of our membership interests in both the Extra Space Northern Properties VI LLC and the Life Storage Spacemax LLC joint ventures, which occurred in October and July 2025, respectively.

The number of stores in unconsolidated joint ventures in which we have ownership interests was 408 as of March 31, 2026, compared to 439 as of March 31, 2025.

Dividend income represents dividends from our investments in preferred stock of Strategic Storage Trust VI, Inc.

and Strategic Storage Growth Trust III, Inc.

Income tax expense —The increase in income tax expense for the three months ended March 31, 2026 compared to the same period in the prior year was primarily the result of an increase in book income and a decrease in permanent tax deductions related to stock awards.

FUNDS FROM OPERATIONS

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The computation of FFO may not be comparable to FFO reported by other REITs or real estate companies that do not define the term in accordance with the current NAREIT definition or that interpret the current NAREIT definition differently.

FFO does not represent cash generated from operating activities determined in accordance with GAAP and should not be

considered as an alternative to net income as an indication of our performance, as an alternative to net cash flow from operating activities, as a measure of our liquidity, or as an indicator of our ability to make cash distributions.

FFO does not represent cash generated from operating activities determined in accordance with GAAP and should not be considered as an alternative to net income as an indication of our performance, as an alternative to net cash flow from operating activities, as a measure of our liquidity, or as an indicator of our ability to make cash distributions.

The following table presents the calculation of FFO for the periods indicated:

For the Three Months Ended September 30, For the Nine Months Ended September 30,

2025 2024 2025 2024

For the Three Months Ended March 31,

Net income attributable to common stockholders $ 240,977 $ 270,875

1 unchanged sentence

Amortization of intangibles 3,723 11,079

Loss on real estate assets held for sale and sold, net 105,128 8,961 70,231 63,620

Gain on real estate assets held for sale and sold, net — (35,761)

Unconsolidated joint venture real estate depreciation and amortization 7,607 8,689

Unconsolidated joint venture gain on sale of real estate assets (9,354) (13,730) (9,354) (13,730)

Unconsolidated joint venture gain on sale of a joint venture interest (207) —

Income allocated to Operating Partnership noncontrolling interests 11,443 14,050

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The following table presents operating data for our same-store portfolio.

For the Three Months Ended September 30, Percent For the Nine Months Ended September 30, Percent

2025 2024 Change 2025 2024 Change

For the Three Months Ended March 31, Percent

2026 2025 Change

Same-store rental revenues

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The following table presents additional information for our same-store portfolio:

For the Three Months Ended September 30, For the Nine Months Ended September 30,

For the Three Months Ended March 31,

Same-store portfolio 2026 2025

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The following table presents a reconciliation of same-store net operating income to net income as presented on our condensed consolidated statements of operations for the periods indicated:

For the Three Months Ended September 30, For the Nine Months Ended September 30,

2025 2024 2025 2024

For the Three Months Ended March 31,

Net Income $ 252,420 $ 284,925

Adjusted to exclude:

Loss on real estate assets held for sale and sold, net 105,128 8,961 70,231 63,620

Gain on real estate assets held for sale and sold, net — (35,761)

Equity in earnings and dividend income from unconsolidated real estate entities (15,760) (19,931)

Equity in earnings of unconsolidated real estate ventures - gain on sale of real estate assets and sale of a joint venture interest (9,354) (13,730) (9,354) (13,730)

Equity in earnings of unconsolidated real estate ventures - gain on sale of a joint venture interest (207) —

Interest expense 147,299 142,399

3 unchanged sentences

General and administrative 46,509 45,974

Impairment of Life Storage trade name — 51,763 — 51,763

Management fees, other income and interest income (73,238) (69,872)

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Same-store net operating income $ 476,739 $ 470,922

Cash flows from operating activities for the nine months ended September 30, 2025 increased when compared to the same period in the prior year.

Cash flows from operating activities for the three months ended March 31, 2026 increased when compared to the same period in the prior year.

Cash flows used in investing activities relate primarily to our acquisition and development of new stores, sales of stores, investments in unconsolidated real estate entities, and notes receivable from bridge loans and fluctuate depending on our actions in those areas.

1 unchanged sentence

A summary of cash flows along with significant components are as follows:

For the Nine Months Ended September 30,

For the Three Months Ended March 31,

Net cash provided by operating activities $ 489,855 $ 481,404

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Acquisition and development of real estate assets (100,888) (243,861)

Proceeds from sale of real estate assets 168,747 4,415

Investment in unconsolidated real estate entities (107,178) (7,175)

Return of investment in unconsolidated real estate ventures 231,130 12,999

Issuance of notes receivable, net of sales and principal payments 55,702 (116,241)

Net proceeds (payments) from unsecured term loans, senior notes, revolving lines of credit and commercial paper (75,013) (636,379)

Proceeds from issuance of public bonds, net 1,650,000 1,000,000

Dividends paid on common stock (342,753) (344,203)

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LIQUIDITY AND CAPITAL RESOURCES

As of September 30, 2025, we had $111,931 available in cash and cash equivalents.

As of March 31, 2026, we had $138,986 available in cash and cash equivalents.

Our cash and cash equivalents are held in accounts managed by third party financial institutions and consist of invested cash and cash in our operating accounts.

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The following table presents information relating to our debt:

September 30, 2025

March 31, 2026

Total face value of debt $ 13,406,885

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In addition, we are pursuing additional sources of financing based on anticipated funding needs and growth assumptions.

In November 2024, we established our commercial paper program, under which we may issue, repay and re-issue short-term unsecured commercial paper notes.

Our commercial paper program provides us the ability to issue, repay and re-issue short-term unsecured commercial paper notes.

The aggregate principal amount outstanding under the program at any time cannot exceed $1,000,000, and the net proceeds of the commercial paper notes are expected to be used for general corporate purposes.

The maturities of the notes generally range from overnight to three months, with a maximum of up to 13 months.

The maturities of the notes generally range from overnight to three months, with a maximum of up to 397 days.

The commercial paper notes are issued under customary terms in the commercial paper market and are issued at a discount from par or, alternatively, can be issued at par and bear varying interest rates on a fixed or floating basis.

At any point in time, we expect to maintain available commitments under our Credit Facilities in an amount at least equal to the amount of commercial paper notes outstanding.

At September 30, 2025, we had $540,000 in issuances outstanding under the commercial paper program.

We hold a BBB+/Stable rating from S&P, which was upgraded from BBB/Stable in July 2023 in connection with the Life Storage Merger, and a Baa2/Positive rating from Moody’s Investors Service.

At any point in time, we expect to maintain available commitments under our credit facility in an amount at least equal to the amount of commercial paper notes outstanding.

At March 31, 2026, we had $850,000 in issuances outstanding under the commercial paper program.

We hold a BBB+/Stable rating from S&P and a Baa2/Stable rating from Moody’s Investors Service.

We intend to manage our balance sheet to maintain these ratings.

Certain of our real estate assets are pledged as collateral for our debt.

As of September 30, 2025, we had a total of 1,786 unencumbered stores as defined by our public bonds.

As of March 31, 2026, we had a total of 1,776 unencumbered stores as defined by our public bonds.

Our unencumbered asset value was calculated as $30,190,854 and our total asset value was calculated as $35,820,236 according to the calculations as defined by our public bonds.

We are subject to certain restrictive covenants relating to our outstanding debt.

We were in compliance with all financial covenants at September 30, 2025.

Our liquidity needs consist primarily of operating expenses, monthly debt service payments, recurring capital expenditures, dividends to stockholders and distributions to unit holders necessary to maintain our REIT qualification.

We may from time to time seek to repurchase our outstanding debt, shares of common stock or other securities in open market purchases, privately negotiated transactions or otherwise.

Such repurchases, if any, will depend on prevailing market conditions, our liquidity requirements, contractual restrictions and other factors.

In addition, we evaluate, on an ongoing basis, the merits of strategic acquisitions and other relationships, which may require us to raise additional funds.

We were in compliance with all financial covenants at March 31, 2026.

Our liquidity needs consist primarily of operating expenses, monthly debt service payments, recurring capital expenditures, distributions to unit holders and dividends to stockholders necessary to maintain our REIT qualification.

We evaluate, on an ongoing basis, the merits of strategic acquisitions and other relationships, which may require us to raise additional funds.

We may also use Operating Partnership units as currency to fund acquisitions from self-storage owners.

In addition, we may from time to time seek to repurchase our outstanding debt, shares of common stock or other securities in open market purchases, privately negotiated transactions or otherwise.

Such repurchases, if any, will depend on prevailing market conditions, our liquidity requirements, contractual restrictions and other factors.

On April 15, 2024, we entered into an equity distribution agreement (the “Equity Distribution Agreement”) with certain sales agents and forward purchasers named therein.

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333-278690) previously filed with and declared effective by the Securities and Exchange Commission (the “SEC”) and a prospectus supplement and accompanying prospectus, filed with the SEC.

As of September 30, 2025, no shares have been sold under the Equity Distribution Agreement, which we refer to as our “at the market” equity program.

As of March 31, 2026, no shares have been sold under the Equity Distribution Agreement, which we refer to as our “at the market” equity program.

OFF-BALANCE SHEET ARRANGEMENTS

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Results for any quarter may not be indicative of the results that may be achieved for the full fiscal year.

RECENT TAX LEGISLATION

On July 4, 2025, the One Big Beautiful Bill Act (the “OBBBA”) was enacted into law, which included certain modifications to U.S.

tax law, including certain provisions that affect the taxation of REITs and their investors.

The OBBBA permanently extended certain provisions that were enacted in the Tax Cuts and Jobs Act of 2017.

Such extensions included the

permanent extension of the 20% deduction for “qualified REIT dividends” for individuals and other non-corporate taxpayers.

The OBBBA also increased the percentage limit under the REIT asset test applicable to taxable REIT subsidiaries (the permissible value of taxable REIT subsidiary securities that a REIT may hold) from 20% to 25% of the value of the REIT’s total assets for taxable years beginning after December 31, 2025.

We are currently evaluating the provisions of the OBBBA, but we do not expect the OBBBA to have a material impact on our financial position and/or results of operations.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis