U.S. self-storage giant Public Storage is making a major acquisition to enter Canada, striking a billion-dollar deal for one of that country’s largest self-storage providers that would give it immediate size in major urban markets.
Public Storage said it agreed to acquire Public Storage Canada, a 68-property portfolio spanning Toronto, Vancouver, Montreal, Calgary and Ottawa, in a deal valued at about $1.67 billion Canadian, or 1.2 billion U.S. dollars. The transaction, expected to close in the second half of 2026, marks the Texas-based real estate investment trust's first major operating foothold in Canada.
“The acquisition of PS Canada represents a strategic opportunity to expand the Public Storage platform into major Canadian markets with attractive long-term fundamentals,” Public Storage CEO Tom Boyle said in a statement.
The Canadian business was established by Public Storage founder Wayne Hughes and has operated independently by his family under the same brand for decades, letting the buyer avoid rebranding or major repositioning after closing. Wayne Hughes and Kenneth Volk co-founded Public Storage in August 1972 in Glendale, California, with a $50,000 initial investment. The company relocated this year to the Dallas suburb of Frisco, Texas.
Analysts say the purchase reflects a wave of deals in the self-storage sector, particularly as large U.S. real estate investment trusts look to expand beyond their home markets.
“It’s part of a larger trend of consolidation within the self-storage industry,” said Michael Goldsmith, an analyst at UBS. “Historically, these businesses have been pretty fragmented, so the larger public players have started to consolidate the industry through acquisitions and basically improving operations.”
Leveraging economies of scale
The big operators benefit from the scope of their businesses, said Goldsmith, allowing them to bring better market data, standardized operating practices and stronger customer experience across portfolios.
“It’s part of a larger trend of consolidation within the self-storage industry."
“The larger players have size and scale, which leads to better market knowledge and best practices,” Goldsmith said in an interview. “There’s definitely an opportunity for continued consolidation in this space, as we’ve seen in the United States.”
That includes a series of major deals south of the Canadian border. For instance, in March, Public Storage agreed to acquire National Storage Affiliates, and rival Extra Space Storage acquired Life Storage. In Canada, Montreal Mini‑Storage was acquired by Brookfield, adding another large, well-capitalized player to the sector and signaling a rising appetite among major investors for Canadian storage assets.
For executives in Canada, the move also feels like a logical next step for Public Storage as it looks abroad.
“I was anticipating it for a while,” said Simon Berman, founder and CEO of Montreal Mini‑Storage, in an interview. “It’s a very logical fit. They’ve been honing their craft, rolling out a new management strategy across more and more assets.”
He added “why not buy something that already bears their name and make it better?”
Public Storage Canada's portfolio contains a total of about 5.3 million square feet. It was 83.1% occupied in the first quarter, leaving room to lift occupancy.
Public Storage said it expects the acquisition to generate an initial net operating income yield in the high-5% range and drive near-term growth as it applies its operating platform to improve pricing, customer experience and cost efficiencies.
UBS' Goldsmith said the underlying demand drivers for self-storage also help explain investor interest in the sector, which tends to benefit from life events such as moving, downsizing or changes in household composition.
“What’s really interesting about self-storage is it’s a solution for a very specific need,” he said. “There’s usually a catalyst — you’re moving, there’s a life event — and you need somewhere to put your things.”
Canada presents growth opportunities
He added that Canada remains comparatively undersupplied.
“There are a lot more facilities per capita in the U.S. than in Canada,” Goldsmith said. “That’s one of the reasons this deal is attractive. There just isn’t as much storage supply, and it gives them a platform to acquire and potentially develop new facilities.”
The transaction was structured largely as an equity deal, with Public Storage issuing about US$889 million in operating partnership units and paying roughly US$310 million in cash, with additional earn-out consideration tied to future performance.
The deal was negotiated off-market under longstanding rights between the company and the Hughes family, helping secure what the buyer described as attractive pricing.
The Canadian platform's appeal lies in both its national footprint and existing branding, Montreal Mini‑Storage's Berman said.
“We have an asset here in Canada that’s well represented across the country and has quite a bit of upside,” he said. “From occupancy to margins, there’s still room to improve.”
The deal also comes as institutional interest increases in Canada’s self-storage sector, where supply per capita remains lower than in the United States and ownership has historically been fragmented.
Public Storage says it's the largest owner of self-storage facilities. As of March 31, it owned and/or operated 3,546 self-storage facilities located in 40 states containing a total of approximately 259 million rentable square feet in the United States.
Public Storage also owns a 35% common equity interest in Shurgard Self Storage Ltd., a company with 333 self-storage facilities with a combined 19 million square feet of rentable space across seven Western European countries.
For the record
Scotiabank is serving as the financial advisor to Public Storage. Wachtell, Lipton, Rosen & Katz and Torys LLP are serving as legal advisors. Eastdil Secured is serving as financial advisor, and Allen Matkins Leck Gamble Mallory & Natsis LLP and Osler, Hoskin & Harcourt LLP are serving as legal advisors to the sellers.