Public Storage has completed the acquisition of National Storage Affiliates Trust, significantly expanding its footprint in the self-storage sector. The transaction creates a combined portfolio of over 4,500 properties spanning 327 million rentable square feet across the United States. This move strengthens Public Storage’s position as a premier global self-storage platform, which includes a significant presence in Europe through Shurgard and a strategic entry into Canada.

Under the terms of the merger, holders of National Storage Affiliates Trust common shares received 0.14 of a Public Storage common share for each share held. The acquisition adds more than 1,000 properties and 550,000 units to Public Storage’s existing operations. The company expects the transaction to be accretive to Funds From Operations (FFO) per share within the first year following the closing.

Public Storage anticipates realizing approximately $110 to $130 million in run-rate synergies over three to four years. Upon full realization of these synergies, accretion is expected to increase to approximately $0.35 to $0.50 per share. The integration will involve transitioning National Storage Affiliates Trust’s customer base to the Public Storage branding and operating model.

As part of the closing, Public Storage and certain legacy limited partners in National Storage Affiliates Trust’s operating partnership formed a joint venture. The joint venture consists of 313 properties across 28 states and Puerto Rico. Legacy limited partners own approximately 80% of the joint venture, while Public Storage holds the remaining interest. Public Storage will exclusively manage the portfolio and earn property management, asset management, and tenant reinsurance income.

The joint venture secured approximately $2 billion in secured mortgage financing from Goldman Sachs Bank USA and Wells Fargo Bank, National Association. Additionally, Public Storage provided $237 million in mezzanine financing to the joint venture. The financial advisors for Public Storage were Goldman Sachs & Co. LLC, Wells Fargo, and Eastdil Secured, while Morgan Stanley & Co. LLC served as the exclusive financial advisor for National Storage Affiliates Trust.

Transaction Details

Joint Venture Structure

Raymond James analyst RJ Milligan has reinstated coverage of Public Storage (NYSE: PSA), downgrading the stock from Strong Buy to Market Perform. The rating adjustment signals a revised expectation for the self-storage real estate investment trust's performance relative to the broader market.

The downgrade from Strong Buy to Market Perform indicates that the firm sees the stock's risk-reward profile as more balanced following its previous bullish stance. Public Storage operates as a self-administered and self-managed real estate investment trust, primarily acquiring, developing, and operating self-storage facilities.

Analyst Rating History

The following table details the recent rating change for Public Storage:

Raymond James provides equity research and investment banking services, with its analyst ratings serving as a key reference for investors assessing stock potential. The Market Perform rating typically suggests that the security is expected to perform in line with the average return of the analyst's coverage universe over the next 12 to 18 months.