Public Storage announced that its subsidiary, Public Storage Operating Company, priced a public offering of $900 million aggregate principal amount of fixed-rate senior notes.
The notes will be guaranteed by Public Storage and issued in two tranches. The offering has a weighted average effective interest rate of 4.855%, including the impact of interest rate swaps.
The first tranche consists of $400 million aggregate principal amount of fixed-rate senior notes due 2032. These notes will bear interest at an annual rate of 4.700%, will be issued at 99.283% of par value, and will mature on February 1, 2032.
The second tranche consists of $500 million aggregate principal amount of fixed-rate senior notes due 2036. These notes will bear interest at an annual rate of 5.150%, will be issued at 98.553% of par value, and will mature on August 15, 2036.
Including the impact of prior interest rate swaps, the effective interest rate of the 2036 notes will be 4.979%. Public Storage Operating Company will pay interest on the 2032 notes semi-annually on February 1 and August 1 of each year, beginning February 1, 2027.
Interest on the 2036 notes will be paid semi-annually on February 15 and August 15 of each year, beginning February 15, 2027.
The offering is expected to close on July 20, 2026, subject to customary closing conditions. Public Storage Operating Company expects to use the net proceeds to help finance Public Storage’s pending acquisition of National Storage Affiliates Trust.
The proceeds may also be used to pay related fees and expenses and for general corporate purposes. These purposes could include investments in self-storage facilities, acquisitions of facilities or interests in entities that own facilities, development, mortgage loans secured by facilities, debt repayment, and the redemption of outstanding securities.
The sale of the notes is not contingent upon completion of the National Storage Affiliates acquisition. However, if the acquisition is not completed, Public Storage Operating Company will be required to redeem the outstanding notes at a redemption price equal to 101% of the principal amount being redeemed, plus accrued and unpaid interest.
Goldman Sachs & Co. and Wells Fargo Securities acted as joint book-running managers for the offering.
Public Storage is an S&P 500 real estate investment trust focused on acquiring, developing, owning, and operating self-storage facilities. As of March 31, 2026, the company owned and/or operated 3,546 self-storage facilities across 40 states, representing approximately 259 million net rentable square feet in the U.S.
Public Storage also owned a 35% common equity interest in Shurgard Self Storage, which owned 333 self-storage facilities across seven Western European countries with approximately 19 million net rentable square feet operated under the Shurgard brand. Public Storage is headquartered in Frisco, Texas.
