Public Storage to Acquire National Storage Affiliates in $5.6 Billion Stock Deal -- Update

Dow Jones03-16

By Connor Hart

$Public Storage(PSA-N)$ agreed to acquire National Storage Affiliates in a $5.63 billion all-stock deal, creating a storage-unit company with a combined market capitalization of about $57 billion.

The self-storage company said Monday that the deal will expand its footprint in high-growth geographies including the Sun Belt region, adding more than 1,000 properties, 69 million rentable square feet, and 550,000 units across 37 states and Puerto Rico.

Under the terms of the agreement, National Storage Affiliates shareholders would receive 0.14 share of Public Storage common stock for each share they own. The offer implies a value of $41.68 a share based on Public Storage's closing price Friday, the companies said.

The deal is valued at $10.5 billion including debt, they added.

Shares of Public Storage fell 3% in premarket trading, to $286, while shares of National Storage Affiliates jumped 27%, to $39.37.

The transaction has been approved by both companies' boards of trustees and is expected to close in the third quarter, subject to approval by National Storage Affiliates shareholders and other customary closing conditions, the companies said.

The companies said they expect the deal to generate annual run-rate synergies of $110 million to $130 million within three to four years from revenue enhancements, operating efficiencies, tenant reinsurance uplift and general and administrative savings. The transaction is projected to be accretive to funds from operations per share within the first year following closing.

Public Storage said it plans to repay National Storage Affiliates' existing bank debt and senior unsecured notes while assuming the company's mortgage debt and certain preferred equity.

Public Storage has secured $4 billion in committed financing from Goldman Sachs and Wells Fargo, consisting of a $2 billion corporate bridge loan and a $2 billion joint-venture off-balance sheet bridge loan, it said.

Write to Connor Hart at connor.hart@wsj.com

(END) Dow Jones Newswires

March 16, 2026 08:12 ET (12:12 GMT)

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Public Storage to Acquire National Storage Affiliates in $5.6 Billion Stock Deal -- Update

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