Public Storage (NYSE:PSA) announced that it will acquire National Storage Affiliates (NYSE: NSA) in an all-stock transaction valued at approximately $10.5 billion.

Under the agreement, NSA shareholders will receive 0.14 shares of PSA stock for each NSA share, implying a price of $41.68 per share.

NSA shares rose nearly 28% to just under $40 following the announcement, while Public Storage shares fell 3.6% to $284.

The acquisition will combine more than 1,000 properties, 69 million rentable square feet, and 550,000 units across 37 states and Puerto Rico. The combined company would have a pro forma equity market capitalization of approximately $57 billion and a total enterprise value of roughly $77 billion.

As part of the deal, Public Storage and NSA’s operating partnership unitholders will form a joint venture including 313 properties, representing nearly 20 million rentable square feet across 28 states and Puerto Rico. NSA OP unitholders are expected to own 80% of the joint venture, with PSA holding the remaining interest. Public Storage will manage the portfolio and provide related management services.

Public Storage will also assume NSA’s existing mortgage debt and preferred shares while repaying NSA’s bank debt and unsecured notes. The company has secured $4 billion in committed financing, including corporate and joint venture bridge loans provided by Goldman Sachs Bank USA and Wells Fargo Bank, National Association.

Public Storage cited several strategic benefits of the acquisition, including expanding its presence in high-growth markets such as the Sun Belt, enhancing its digital-first platform, and achieving operational efficiencies. The transaction is expected to be accretive to funds from operations per share in the first year and deliver further earnings growth over three to four years through expected synergies in revenue, operations, and cost management.

Tom Boyle, incoming CEO of Public Storage, said the acquisition will deepen the company’s market presence and expand its platform.

“By applying our PS Next operating model to NSA’s portfolio, we see meaningful opportunity to enhance the customer experience, drive financial upside, and create significant value for shareholders over the near and long term as our industry emerges from the bottom of the self storage operating cycle,” Boyle said.

NSA CEO David Cramer highlighted the strategic fit of the transaction and the opportunity for NSA unitholders to participate in the combined company’s growth.

“By joining PSA, we ensure that the entrepreneurial spirit of our regional partners is preserved within a global platform capable of driving unprecedented scale,” Cramer said.

The transaction has been approved by the boards of both companies and is expected to close in the third quarter of 2026.