Public Storage has closed its acquisition of Public Storage Canada in a transaction valued at about $1.2 billion at closing.
The company paid roughly $900 million in Public Storage operating units, equal to 2.76 million units priced at $321.98 each, plus about $310 million in cash. The deal also leaves open the possibility of up to $288 million more in operating units if certain net operating income targets are met, with those units priced at $375 each.
With the acquisition complete, Public Storage now directly owns 68 Canadian properties totaling 5.3 million square feet. The portfolio spans Toronto, Vancouver, Montreal, Calgary and Ottawa.
The company said the Canadian assets come with a “high-5’s” going-in yield and that it expects near-term compounded NOI growth in the high single digits. It also said the deal should contribute to long-term IRR, NOI growth and FFO per share.
Public Storage said the acquisition adds a new layer to its existing footprint, which now includes 4,647 self-storage facilities in 41 states and Puerto Rico with about 329 million net rentable square feet, plus a 35% equity stake in Shurgard Self Storage Limited, which operates 335 facilities across seven Western European countries with about 19 million net rentable square feet. The market has reacted to these announcements by moving the company's shares -0.16% to a price of $306.50. For more information, read the company's full 8-K submission here.
