Public Storage is expanding its footprint into major Canadian markets through the acquisition of Public Storage Canada in a transaction valued at approximately $1.2 billion. The deal, expected to close in the second half of 2026, provides the largest owner of self-storage facilities with access to a platform built by founder Wayne Hughes. The acquisition targets markets with high household incomes and low supply per capita compared to the U.S., positioning the company for long-term growth.

Transaction Details

Public Storage Operating Company will pay consideration worth approximately $1.2 billion at closing. The payment structure consists of approximately $889 million in Public Storage OP units, specifically 2.76 million units valued at $321.98 per unit, and approximately $310 million in cash. The agreement also includes an earn-out provision of up to $288 million in Public Storage OP units, priced at $375 per unit, contingent on the achievement of certain Net Operating Income (NOI) performance targets. The transaction was executed pursuant to existing Right-of-First-Offer and Right-of-First-Refusal agreements with Tamara Hughes Gustavson and family.

Portfolio Highlights

The acquired portfolio comprises 68 properties totaling 5.3 million square feet located in key Canadian markets including Toronto, Vancouver, Montreal, Calgary, and Ottawa. As of Q1 2026, the portfolio reported a same-store occupancy of 83.1% with same-store rents of $23.24 per occupied square foot. The properties operate under the Public Storage brand, which is expected to reduce upfront capital expenditures and minimize customer disruption.

Strategic and Financial Rationale

Public Storage anticipates the acquisition will deliver a going-in NOI yield in the high-5’s and drive high-single-digit compounding NOI growth in the near term. The growth is expected to be fueled by the implementation of the PS Next operating platform, focusing on customer experience, rental revenue, and operating expense efficiencies. The company projects the transaction will be accretive to long-term portfolio Internal Rate of Return (IRR), NOI growth, and Funds From Operations (FFO) per share growth, while maintaining a leverage-neutral funding structure.

Tom Boyle, CEO of Public Storage, stated that the acquisition represents a strategic opportunity to expand into markets with attractive long-term fundamentals. He highlighted the portfolio's high-quality real estate and the potential for meaningful upside through the company's operating platform. The transaction follows the previously announced deal with National Storage Affiliates Trust, underscoring the company's momentum in deploying capital into external growth opportunities.

Scotiabank analyst Nicholas Yulico has raised the price target for Public Storage to $342 while maintaining a Sector Outperform rating on the stock. The adjustment represents an increase from the previous target of $340.

The revised outlook reflects continued confidence in the company's performance within its sector. Public Storage is listed on the NYSE under the ticker symbol PSA.

Rating and Target Details