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Public Storage Boosts Liquidity With New Credit and Loan Facilities
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Key Takeaways
PSA expanded its unsecured revolving credit facility to $3B, maturing in June 2030.
PSA added a $500M delayed draw term loan and launched a $1B commercial paper program.
PSA gains liquidity, lower borrowing costs and flexibility to support future growth initiatives.
Public Storage Inc. (PSA - Free Report) has strengthened its financial flexibility through a series of financing initiatives. The company has increased its unsecured revolving credit facility to $3 billion, replacing the current $1.5 billion arrangement, which was scheduled to mature on June 1, 2027. The new revolver allows borrowings in U.S. dollars and certain foreign currencies, maturing on June 25, 2030, with an extension option through June 25, 2031.
The credit facility also includes an option to increase the total commitments by an additional $2 billion, subject to obtaining lender commitments. The arrangement lowers the current interest by 15 basis points, bearing at SOFR plus 0.650% based on the company’s current credit ratings.
PSA also closed a delayed draw term loan facility amounting to $500 million and established an unsecured commercial paper program for $1 billion. The term loan facility carries a caveat to be drawn in up to four advances through Dec. 22, 2026, maturing on June 25, 2031, bearing interest at SOFR plus 0.700% based on the company’s current credit ratings. The commercial paper notes issued under the commercial paper program are fully and unconditionally guaranteed by PSA.
The spread applicable to both the revolver and term loan facility is subject to change based on Public Storage’s credit ratings.
Final Take on Public Storage
These financing arrangements highlight lender confidence in Public Storage’s financial strength and operating platform. The expanded credit facility, new term loan and commercial paper program provide the company with greater financial flexibility to support future growth initiatives.
With enhanced liquidity and lower borrowing costs, Public Storage is well-positioned to pursue value-accretive investment opportunities, strengthen its balance sheet and continue delivering long-term value to shareholders.
Over the past three months, shares of this Zacks Rank #3 (Hold) company have gained 20.6% compared with the industry’s growth of 12.4%.
The Zacks Consensus Estimate for LAMR’s 2026 FFO per share has been revised upward 2.2% to $8.81 over the past two months.
The consensus estimate for CUZ’s 2026 FFO per share has been raised by a cent over the past week to $2.94.
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
Public Storage Boosts Liquidity With New Credit and Loan Facilities
Key Takeaways
Public Storage Inc. (PSA - Free Report) has strengthened its financial flexibility through a series of financing initiatives. The company has increased its unsecured revolving credit facility to $3 billion, replacing the current $1.5 billion arrangement, which was scheduled to mature on June 1, 2027. The new revolver allows borrowings in U.S. dollars and certain foreign currencies, maturing on June 25, 2030, with an extension option through June 25, 2031.
The credit facility also includes an option to increase the total commitments by an additional $2 billion, subject to obtaining lender commitments. The arrangement lowers the current interest by 15 basis points, bearing at SOFR plus 0.650% based on the company’s current credit ratings.
PSA also closed a delayed draw term loan facility amounting to $500 million and established an unsecured commercial paper program for $1 billion. The term loan facility carries a caveat to be drawn in up to four advances through Dec. 22, 2026, maturing on June 25, 2031, bearing interest at SOFR plus 0.700% based on the company’s current credit ratings. The commercial paper notes issued under the commercial paper program are fully and unconditionally guaranteed by PSA.
The spread applicable to both the revolver and term loan facility is subject to change based on Public Storage’s credit ratings.
Final Take on Public Storage
These financing arrangements highlight lender confidence in Public Storage’s financial strength and operating platform. The expanded credit facility, new term loan and commercial paper program provide the company with greater financial flexibility to support future growth initiatives.
With enhanced liquidity and lower borrowing costs, Public Storage is well-positioned to pursue value-accretive investment opportunities, strengthen its balance sheet and continue delivering long-term value to shareholders.
Over the past three months, shares of this Zacks Rank #3 (Hold) company have gained 20.6% compared with the industry’s growth of 12.4%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks from the broader REIT sector are Lamar Advertising (LAMR - Free Report) and Cousins Properties (CUZ - 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 LAMR’s 2026 FFO per share has been revised upward 2.2% to $8.81 over the past two months.
The consensus estimate for CUZ’s 2026 FFO per share has been raised by a cent over the past week to $2.94.
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.