KBRA Affirms NSA OP, LP Issuer and Issue Ratings and Extends Watch Developing Status

KBRA has affirmed the BBB issuer rating and extends its Watch Developing status for the BBB issuer and unsecured debt ratings of NSA OP, LP and the BBB- preferred stock ratings of National Storage Affiliates Trust (NSA).

The Watch Developing status was initially assigned following the announcement that parent National Storage Affiliates Trust (NSA) had agreed to be acquired by Public Storage (NYSE: PSA) in a stock-for-stock transaction valued at approximately $10.5 billion. The ratings remain on Watch Developing as the transaction has not yet closed and remains subject to customary closing conditions.

Since the initial rating action, there have been no material changes to the announced transaction structure. The combined entity will have a total managed platform of over 4,500 self storage properties in 42 states, deepening PSA's presence in key Sun Belt markets and providing upside in enhanced revenue opportunities, occupancy gains, and cost savings. Total operating benefits are estimated at $110 million to $130 million annually, to be realized over the next several years as the former NSA properties are rebranded and fully integrated into the PSA operating platform.

PSA has obtained $4 billion of bridge financing, which will be used at closing to retire NSA OP, LP's outstanding $1.3 billion of bank term loans and revolver borrowings and $2 billion of senior unsecured notes. PSA also said that it expects to assume NSA's Series A and Series B cumulative preferred stock and Series A-1 cumulative preferred units (combined $370 million liquidation value), as well as approximately $200 million of consolidated mortgage debt.

The NSA acquisition is expected to close in Q3 2026. KBRA will continue to monitor the transaction for any potential changes to proposed terms and expected prepayment of the rated senior unsecured notes at closing.

To access ratings and relevant documents, click here.

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