Public Storage said Monday that it has reached an agreement to purchase Public Storage Canada for an approximate price of $1.2 billion, a transaction that pushed the company's shares up about 1% in after-hours trading.
Deal structure and consideration
The acquisition will be funded primarily with Public Storage Operating Partnership Units. At closing the company will deliver approximately $889 million in OPUs and pay about $310 million in cash. In addition, the deal includes potential earn-out consideration of up to $288 million in OPUs, which is tied to the attainment of specified net operating income performance targets.
Assets being acquired
The portfolio comprises 68 properties totaling 5.3 million square feet located across major Canadian markets including Toronto, Vancouver, Montreal, Calgary, and Ottawa. For the first quarter of 2026 the portfolio reported same-store occupancy of 83.1% and same-store rents at $23.24 per occupied square foot.
Expected financial and operational outcomes
Public Storage forecasts a going-in net operating income yield in the high-5% range. The company also expects near-term compounding NOI growth in the high-single-digits as it integrates the acquisitions into its PS Next operating platform. Management stated the transaction will be accretive to long-term portfolio internal rate of return, NOI growth, and funds from operations per share growth.
Seller, approvals and timing
The PS Canada platform was originally developed by Public Storage founder Wayne Hughes and has been owned and operated independently by the Hughes family under the Public Storage brand. The purchase agreement was negotiated with Tamara Hughes Gustavson and family under the company’s existing Right-of-First-Offer and Right-of-First-Refusal provisions.
The transaction is anticipated to close in the second half of 2026, subject to customary closing conditions.
Balance sheet and advisors
Public Storage described the OPU funding as leverage-neutral and said this approach will preserve balance sheet capacity for future opportunities. Scotiabank is acting as financial advisor to Public Storage, while Wachtell, Lipton, Rosen & Katz and Torys LLP are serving as legal advisors.
Market reaction
After the announcement investors bid the shares modestly higher in after-hours trading, reflecting the market’s initial response to the acquisition and the company’s stated expectations for accretion and NOI growth.