Public Storage (PSA.N): Reunited and It Feels So Good; Thoughts on PSA‘s Acquisition of Public Storage Canada

Research evidence excerpt

Public Storage (PSA.N): Reunited and It Feels So Good; Thoughts on PSA‘s Acquisition of Public Storage Canada

Public Storage (PSA.N)

23 June 2026 Citi Research

Pushback — We believe there will be questions on how PSA expects to grow NOI by

high-single-digits in a new foreign market, as much of this growth is tied to improving

occupancy from 83% today to ~90% in the future (i.e., revenue synergies). Further,

PSA is entering a foreign market at the same time it is trying to integrate its ~$10.5bn

NSA acquisition. It is our understanding that PSA may not adjust anything on

operations / corporate structure for the first six months, as it focuses on the NSA

integration first. Thus, there will be no initial G&A / cost savings over this time. It is

also our understanding that PSA will not adjust the renewal practices of Public

Storage Canada at this time (with market rents equal to in-place rents unlike the US),

albeit there could be additional upside from optimizing this process in the future.

Implications — In our view, PSA has outperformed this year partly because of its more

aggressive external growth model. While a $1.2bn acquisition is not a large needle-

mover for a +$75bn enterprise, the accretion and strategic nature of this acquisition

help further the company’s story. The main risk going forward is that PSA does not

achieve the revenue synergies from this acquisition or NSA, which would put into

question PSA’s new model. However, given the company’s track record and the

details behind each transaction, we are more inclined to believe PSA will achieve

these synergies. While the company trades at a premium multiple, it is not so large

that we think it will inhibit further outperformance from here, and thus we maintain

our Buy rating.