Public Storage to Buy Canada Portfolio $1.2B

Acquisition Overview

Public Storage (NYSE: PSA) announced that it will acquire Public Storage Canada for an aggregate consideration of approximately $1.2 billion. The transaction will be financed primarily through Public Storage Operating Partnership Units (OPUs), with $889 million of the purchase price paid in OPUs and $310 million in cash at closing. In addition, the agreement provides for a contingent earn‑out of up to $288 million in OPUs, which will be payable if the acquired platform meets specified net operating income (NOI) performance thresholds.

Assets Acquired

The acquisition brings 68 self‑storage properties into Public Storage’s portfolio, representing roughly 5.3 million square feet of rentable space. These assets are located in major Canadian markets, specifically Toronto, Vancouver, Montreal, Calgary and Ottawa. The Canadian platform reported first‑quarter 2026 same‑store occupancy of 83.1% and same‑store rents of $23.24 per occupied square foot.

Expected Financial Impact

Public Storage expects the deal to generate a going‑in NOI yield in the high‑5% range and to drive high‑single‑digit compounded NOI growth in the near term as the company implements its PS Next operating platform. The company indicated that the transaction will be accretive to long‑term portfolio internal rate of return (IRR), NOI growth, and funds‑from‑operations (FFO) per share growth.

Transaction Structure and Parties

The PS Canada platform was originally built by Public Storage founder Wayne Hughes and has been independently owned and operated by the Hughes family under the Public Storage brand. The acquisition was entered into with Tamara Hughes Gustavson and family pursuant to Public Storage’s existing Right‑of‑First‑Offer and Right‑of‑First‑Refusal provisions. The transaction is expected to close in the second half of 2026, subject to customary closing conditions. Public Storage highlighted that the leverage‑neutral OPU funding structure will preserve balance‑sheet strength for future opportunities.

Advisory Services

Scotiabank is acting as the financial advisor to Public Storage, while legal counsel is being provided by Wachtell, Lipton, Rosen & Katz and Torys LLP.

Market Reaction

Following the announcement, Public Storage shares ticked up roughly 1% in after‑hours trading on Monday.