We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Can Public Storage's $1.2B Canada Acquisition Drive Long-Term Growth?
Read MoreHide Full Article
Key Takeaways
Public Storage plans a $1.2B acquisition of Public Storage Canada, entering major Canadian markets.
The 68-property portfolio has 5.3M square feet and first-quarter 2026 occupancy of 83.1%.
PSA expects a high-5% NOI yield and potential double-digit internal rates of return over time.
Public Storage (PSA - Free Report) is taking a major step beyond its core U.S. footprint with a planned $1.2 billion acquisition of Public Storage Canada. The deal gives PSA an immediate presence in several major Canadian markets, including Toronto, Vancouver, Montreal, Calgary and Ottawa, instead of building that network one property at a time.
The move is expected to benefit Public Storage by adding a well-known self-storage brand in markets with strong population growth, high household incomes and relatively lower storage supply than the United States. The portfolio includes 68 properties and 5.3 million net rentable square feet, with first-quarter 2026 occupancy of 83.1%, leaving room for better pricing and operations over time.
Public Storage expects the acquisition to deliver a going-in NOI yield in the high-5% range and potential double-digit internal rates of return over the long run. The company also plans to use its PS Next operating platform to improve revenue management, control costs, enhance customer experience and grow tenant reinsurance income.
The consideration will comprise $889 million in Public Storage OP units and $310 million in cash, subject to adjustments. Sellers may also receive up to $288 million in additional OP units if certain NOI performance targets are met.
The Canada deal comes as Public Storage is already pursuing another large transaction. Its pending acquisition of National Storage Affiliates Trust is valued at about $10.5 billion. Together, these moves show a clear focus on scale and market reach. In first-quarter 2026, PSA reported core FFO of $4.22 per share, up 2.4% from a year earlier.
For investors, the key point is that Public Storage is not just buying assets; it is buying future growth channels. Canada gives PSA a solid platform in attractive urban markets, while the use of operating partnership units helps preserve balance sheet flexibility. However, the deal still needs to close, and execution will matter, but it adds another reason to watch Public Storage as a large, disciplined player in self-storage.
Over the past three months, shares of this Zacks Rank #3 (Hold) company have rallied 19.5%, outperforming the industry's growth of 10.2%.
The Zacks Consensus Estimate for Equinix’s 2026 FFO per share is pinned at $42.93. This indicates projected year-over-year growth of 12%.
The Zacks Consensus Estimate for Prologis’ 2026 FFO per share is pegged at $6.18. This calls for year-over-year growth of 6.37%.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.
View the Zacks #1 Rank List
Image: Bigstock
Can Public Storage's $1.2B Canada Acquisition Drive Long-Term Growth?
Key Takeaways
Public Storage (PSA - Free Report) is taking a major step beyond its core U.S. footprint with a planned $1.2 billion acquisition of Public Storage Canada. The deal gives PSA an immediate presence in several major Canadian markets, including Toronto, Vancouver, Montreal, Calgary and Ottawa, instead of building that network one property at a time.
The move is expected to benefit Public Storage by adding a well-known self-storage brand in markets with strong population growth, high household incomes and relatively lower storage supply than the United States. The portfolio includes 68 properties and 5.3 million net rentable square feet, with first-quarter 2026 occupancy of 83.1%, leaving room for better pricing and operations over time.
Public Storage expects the acquisition to deliver a going-in NOI yield in the high-5% range and potential double-digit internal rates of return over the long run. The company also plans to use its PS Next operating platform to improve revenue management, control costs, enhance customer experience and grow tenant reinsurance income.
The consideration will comprise $889 million in Public Storage OP units and $310 million in cash, subject to adjustments. Sellers may also receive up to $288 million in additional OP units if certain NOI performance targets are met.
The Canada deal comes as Public Storage is already pursuing another large transaction. Its pending acquisition of National Storage Affiliates Trust is valued at about $10.5 billion. Together, these moves show a clear focus on scale and market reach. In first-quarter 2026, PSA reported core FFO of $4.22 per share, up 2.4% from a year earlier.
For investors, the key point is that Public Storage is not just buying assets; it is buying future growth channels. Canada gives PSA a solid platform in attractive urban markets, while the use of operating partnership units helps preserve balance sheet flexibility. However, the deal still needs to close, and execution will matter, but it adds another reason to watch Public Storage as a large, disciplined player in self-storage.
Over the past three months, shares of this Zacks Rank #3 (Hold) company have rallied 19.5%, outperforming the industry's growth of 10.2%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks from the broader REIT sector are Equinix, Inc. (EQIX - Free Report) and Prologis, Inc. (PLD - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Equinix’s 2026 FFO per share is pinned at $42.93. This indicates projected year-over-year growth of 12%.
The Zacks Consensus Estimate for Prologis’ 2026 FFO per share is pegged at $6.18. This calls for year-over-year growth of 6.37%.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.