KBRA Places NSA OP, LP Issuer and Issue Ratings on Watch Developing

KBRA places its BBB issuer and securities ratings for NSA OP, LP on Watch Developing following the announcement that parent National Storage Affiliates Trust (NSA) has agreed to be acquired by industry leader Public Storage (NYSE: PSA) in a stock-for-stock transaction valued at approximately $10.5 billion. KBRA also places its BBB- preferred stock ratings for NSA on Watch Developing.

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 notes at closing.

To access ratings and relevant documents, click here.

Methodologies