Can Public Storage's $1.2B Canada Acquisition Drive Long-Term Growth?
Public StoragePSA 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%.
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Stocks to Consider
Some better-ranked stocks from the broader REIT sector are Equinix, Inc.EQIX and Prologis, Inc.PLD, 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.
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