What Public Storage told the SEC could break it.

If Public Storage failed to satisfy REIT income tests and no relief provisions applied, it would not qualify to be taxed as a REIT — subjecting it to federal corporate income tax (and a 4-year requalification bar), reducing cash available for distributions.

“If we were to fail to satisfy one or both of the gross income tests for any taxable year, we may nevertheless qualify as a REIT for such year if we were entitled to relief under certain provisions of the Code. If these relief provisions were inapplicable, we would not qualify to be taxed as a REIT.”

U.S. and retaliatory tariffs could create inflationary pressure on Public Storage's development/redevelopment costs (steel, lumber, other materials) and disrupt global supply chains, increasing costs or delaying delivery of key inventories and supplies.

“International trade disputes, including threatened or implemented tariffs imposed by the U.S. and threatened or implemented tariffs imposed by foreign countries in retaliation, could result in inflationary pressures that directly impact our costs, such as costs for steel, lumber and other materials applicable to our development and redevelopment projects. Trade disputes could also adversely impact global supply chains which could further increase costs for us or delay delivery of key inventories and supplies.”

Public Storage bears earthquake and property/casualty risk on its facilities (it carries corporate earthquake coverage subject to deductibles, while its tenant goods reinsurance program explicitly excludes earthquakes), exposing it to catastrophe losses.

“We maintain comprehensive property and casualty insurance policies which include coverage for earthquake, rental loss, general liability, umbrella liability, management liability, employee medical insurance and workers compensation coverage through internationally recognized and highly rated insurance carriers, subject to deductibles. We reinsure a program that provides insurance to our customers from an independent third-party insurer. This program covers customer claims for losses to goods stored at our facilities as a result of specific named perils (earthquakes are not covered by this program), up to a maximum limit of $ 5,000 per storage unit.”