Public Storage Canada (PS Canada), which has a portfolio of 68 self-storage facilities across five major Canadian cities, is set to be sold to Texas-based Public Storage (PSA-N) for $1.67 billion.

The portfolio assets, which total 5.3 million square feet, are located in Toronto, Vancouver, Montreal, Calgary and Ottawa.

"These markets benefit from low supply per capita (well below the U.S. average) and the portfolio features robust 3-mile trade area populations and household incomes," Public Storage said in an announcement on the transaction.

Both Public Storage and PS Canada were founded by the late American billlionaire Wayne Hughes but PS Canada was operated as an independent company by the Hughes family for decades.

Terms of the transaction

The American company is making the transaction through its operating companies - Public Storage Operating Company and Public Storage OP.

Under the terms of the deal, Public Storage Operating Company (PSOC) will pay approximately US$1.2 billion ($1.67 billion) at closing, consisting of approximately US$889 million of Public Storage OP units (2.76 million OPUs, valuing each such unit at $321.98 per unit) and approximately US$310 million in cash.

The transaction will also include an opportunity for the sellers to receive earn-out considerations of up to US$288 million in Public Storage OP units priced at $375 per unit, contingent on the achievement of certain NOI performance targets, the announcement said. 

The transaction was entered into with the founder's daugher, Tamara Hughes Gustavson.

“The acquisition of PS Canada represents a strategic opportunity to expand the Public Storage platform into major Canadian markets with attractive long-term fundamentals," CEO Tim Boyle said. "This portfolio includes high-quality real estate in key markets, carries the Public Storage brand, and offers meaningful upside through our PS Next operating platform."

The PS Canada acquisition follows the company's acquisition of National Storage Affiliates Trust for US$10.5 billion, which was announced in March. 

Public Storage said the PS Canada acquisition offers a number of strategic benefits including: gaining exposure to a growing Canadian self-storage industry; a platform opportunity in major Canadian markets, including expanded acquisition, new development, expansion, and lending opportunities; an existing Public Storage-branded portfolio that reduces upfront capital expenditures and minimizes customer disruption; and allows for low-cost CAD-denominated borrowing to fund recently announced external growth.

"We are grateful to Tamara Hughes Gustavson and family for the opportunity to acquire this exceptional portfolio, which was thoughtfully built and operated for many decades," Boyle said in the announcement.

The transaction is expected to close in the second half of 2026.

Public Storage and PS Canada

Public Storage is the largest owner of self-storage facilites in the U.S., with 3,546 facilities in 40 states, as of March 31. It was founded by Hughes in 1976 with a single California facility. The company is a member of the S&P 500.

PS Canada opened its first location in Brampton, Ont. in 1979. It was originally established as a Canadian partnership affiliated with Public Storage USA, but became fully independent in 2003.