Public Storage Completes ~$1.2B Acquisition of PS Canada

Executive Summary

On September 1, 2026, Public Storage (NYSE: PSA) filed a Form 8-K announcing the closing of its acquisition of PS Canada Holdings, LLC ("PS Canada"). The transaction consolidates PS Canada's 68 self-storage properties (totaling ~5.3 million net rentable square feet) across major Canadian markets into Public Storage's direct ownership.

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Transaction Structure & Financial Terms

• Upfront Consideration: Approximately $1.2 billion, comprised of:
  • Equity Consideration: ~$900 million paid via 2,762,108 Common Units of Public Storage OP, L.P. (valued at $321.98 per unit).
  • Cash Consideration: ~$310 million in cash, subject to customary adjustments.
• Contingent Earn-Out: Sellers are eligible to receive up to 768,000 additional PSA OP Units (valued at $375.00 per unit, or up to $288 million), contingent upon PS Canada meeting specific Net Operating Income (NOI) performance targets.
• Redemption Terms: PSA OP Units are redeemable on a one-for-one basis for PSA common stock or cash at the company's discretion.
• Debt Financing: On August 31, 2026, PSOC fully drew down its $500.0 million delayed draw term loan facility to support closing and corporate funding requirements.

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Strategic Impact & Operational Highlights

• Asset Footprint: Adds 68 institutional-quality properties across Toronto, Vancouver, Montreal, Calgary, and Ottawa.
• Operational Synergies: PSA plans to implement its proprietary PS Next™ operating platform across the acquired Canadian footprint to drive operating efficiencies and high single-digit near-term compounding NOI growth.
• Financial Profile: Management expects the acquisition to be accretive to long-term IRR, NOI growth, and Core FFO per share, building from an attractive going-in yield in the high-5% range.