The merger will combine two of the leading self-storage operators, with Public Storage acquiring over 1,000 properties and 69 million rentable square feet across 37 states and Puerto Rico. The combined entity is projected to have a pro forma equity market capitalization of around $57 billion and a total enterprise value of approximately $77 billion. Both companies' Boards of Trustees have unanimously approved the transaction, which is anticipated to close in the third quarter of 2026, pending approval from NSA's equity holders and the satisfaction of customary closing conditions.
In addition to the acquisition, a new joint venture will be formed, comprising 313 properties on NSA's operating platform, which will provide an attractive yield alternative for existing NSA OP unitholders. This joint venture is expected to be capitalized with $2.2 billion of property-level secured debt, including a mezzanine loan investment from Public Storage of approximately $240 million.
Public Storage's CEO, Tom Boyle, emphasized the strategic benefits of the merger, stating that it will allow the company to expand its platform with assets that are highly complementary to its existing portfolio. The merger is expected to enhance operational efficiencies and drive significant earnings growth, with anticipated run-rate synergies of $110 to $130 million within the next three to four years.
The transaction is positioned to be accretive to funds from operations (FFO) per share within the first year of closing, with further accretion expected as synergies are realized. This acquisition marks a pivotal moment in Public Storage's strategic vision, PS4.0, aimed at capitalizing on growth opportunities in the self-storage sector. The merger is expected to strengthen the combined company's balance sheet and enhance its competitive position in the market.
