Public Storage closes $10.5B all-stock acquisition of National Storage Affiliates Trust

By: Nina Dale Source: CRE Daily Reading Time: 4 min

Key Takeaways

• Public Storage closed its $10.5 billion all-stock acquisition of National Storage Affiliates Trust (NSAT), adding over 1,000 properties.
• NSAT shareholders received 0.14 shares of Public Storage per NSAT share; the deal is expected to boost earnings by $0.35–$0.50 per share within four years due to $110 million–$130 million in synergies.
• The acquisition cements Public Storage's lead in the self-storage sector with 4,500 U.S. facilities and an expanded Sun Belt market presence.

Major Portfolio Consolidation in Self-Storage

Public Storage's $10.5 billion acquisition of National Storage Affiliates Trust (NSAT) marks one of the largest self-storage mergers on record, according to Inside Self Storage. The merger comes as consolidation continues to reshape the self-storage REIT landscape, with operators seeking enhanced scale, market reach, and operational efficiency.

NSAT's portfolio of more than 1,000 properties across 37 states and Puerto Rico significantly increases Public Storage's national footprint. The combined entity now controls over 4,500 self-storage facilities, totaling 327 million rentable square feet, positioning Public Storage well ahead of its competitors in both number of locations and total rentable space.

The Details

Public Storage and NSAT closed the transaction on July 22. NSAT shareholders received 0.14 Public Storage shares for each NSAT share. Meanwhile, NSAT operating partnership unit holders received equivalent Public Storage OP units.

The acquisition is expected to generate $110 million–$130 million in annual synergies within four years. These efficiencies should improve Public Storage's earnings by $0.35–$0.50 per share. The transaction also included retiring NSAT's debt and paying preferred shares.

Goldman Sachs and Wells Fargo secured a $4 billion financing package for the deal. Morgan Stanley and Clifford Chance advised NSAT. Goldman Sachs, Wells Fargo, and Eastdil Secured advised Public Storage.

Sun Belt Gains and REIT Sector Comparisons

The deal accelerates Public Storage's expansion into high-growth regions, especially the Sun Belt. It reflects a broader shift toward growing southern and western metros. According to Green Street, Sun Belt self-storage occupancy consistently exceeded national averages over the previous four years.

The transaction will also create scale-based efficiencies for Public Storage. Sector leaders increasingly use larger, multi-state footprints to optimize operations. Extra Space Storage and CubeSmart have followed this strategy while expanding their portfolios.

Including this transaction, Public Storage's equity market cap reaches $57 billion, well above its peers. That increased scale further strengthens its position among major self-storage REITs.

Why It Matters

This acquisition stands out because of both its size and timing. Self-storage has remained one of commercial real estate's most resilient sectors. Pandemic disruptions, migration patterns, and changing consumer behavior have supported demand in recent years.

By absorbing NSAT, Public Storage removes a major competitor and strengthens its pricing capabilities. The company can also streamline expenses and leverage its technology platforms. These factors support management's "PS4.0 Value Creation Engine."

Public Storage now operates 327 million rentable square feet, according to company disclosures. Before this transaction, it operated 258 million square feet. Its European partner, Shurgard, operates another 18 million square feet.

Shareholders on both sides also gained immediate and long-term benefits. NSAT holders received a premium through the all-stock transaction.

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