Public Storage announced that its operating partnership, Public Storage OP, and Public Storage Operating Company have entered into an agreement to acquire Public Storage Canada for approximately $1.2 billion USD, or $1.67 billion CAD.
Public Storage Canada is the third-largest self-storage platform in Canada. The platform was built by Public Storage founder Wayne Hughes and has been independently owned and operated by the Hughes family under the Public Storage brand for decades.
The acquisition is expected to expand Public Storage’s platform into major Canadian markets and create long-term internal and external growth opportunities. Public Storage said the Canadian self-storage market has attractive fundamentals, including high household incomes, strong relative population growth, and low per-capita supply compared to the U.S.
Under the terms of the transaction, Public Storage Operating Company will pay approximately $1.2 billion in consideration at closing. This includes approximately $889 million of Public Storage operating partnership units and approximately $310 million in cash, subject to customary purchase price adjustments.
The transaction also includes the potential for the sellers to receive up to $288 million in earn-out consideration in the form of Public Storage operating partnership units, contingent on achieving certain net operating income performance targets.
The acquisition was entered into with Tamara Hughes Gustavson and family through Public Storage’s existing right-of-first-offer and right-of-first-refusal rights. Public Storage said the off-market nature of the transaction helped provide attractive pricing.
The Public Storage Canada portfolio includes 68 properties totaling 5.3 million square feet. The portfolio is located in key Canadian markets including Toronto, Vancouver, Montreal, Calgary, and Ottawa. In the first quarter of 2026, Public Storage Canada had same-store occupancy of 83.1% and same-store rents of $23.24 USD per occupied square foot.
Public Storage said the acquisition is expected to provide an attractive going-in net operating income yield in the high-5% range. The company also expects high-single-digit compounding net operating income growth in the near term as it realizes synergies and operational upside through its PS Next operating platform.
The company said key areas of focus will include customer experience, rental revenue, operating expense efficiencies, and tenant reinsurance. Public Storage also expects the acquisition to be accretive to long-term portfolio internal rate of return, net operating income growth, and funds from operations per share growth.
The deal is primarily funded with Public Storage operating partnership units, which the company said is expected to be leverage-neutral and preserve balance sheet strength for future opportunities.
Public Storage said the acquisition also creates a platform opportunity in Canada for future acquisitions, new development, expansion, and lending opportunities. The existing Public Storage-branded portfolio is also expected to reduce upfront capital expenditures and minimize customer disruption.
The transaction is expected to close in the second half of 2026, subject to customary closing conditions.
Scotiabank is serving as financial advisor to Public Storage. Wachtell, Lipton, Rosen & Katz and Torys are serving as legal advisors, and Kekst CNC is serving as strategic communications advisor to Public Storage. Eastdil Secured is serving as financial advisor to the sellers, and Allen Matkins Leck Gamble Mallory & Natsis and Osler, Hoskin & Harcourt are serving as legal advisors to the sellers.
Public Storage is a REIT and a member of the S&P 500. As of March 31, 2026, the company owned and/or operated 3,546 self-storage facilities across 40 states with approximately 259 million net rentable square feet in the U.S. It also owned a 35% common equity interest in Shurgard Self Storage, which owned 333 self-storage facilities across seven Western European countries.
KEY QUOTES:
“The acquisition of PS Canada represents a strategic opportunity to expand the Public Storage platform into major Canadian markets with attractive long-term fundamentals.”
“This portfolio includes high-quality real estate in key markets, carries the Public Storage brand, and offers meaningful upside through our PS Next operating platform. Together with our previously announced National Storage Affiliates Trust transaction, this acquisition demonstrates the momentum of our value creation engine and the opportunity to deploy capital into highly strategic external growth opportunities.”
“We are grateful to Tamara Hughes Gustavson and family for the opportunity to acquire this exceptional portfolio, which was thoughtfully built and operated for many decades. We are humbled by their continued confidence in the Company through a meaningful further investment as part of this transaction.”
Tom Boyle, CEO of Public Storage
