Public Storage Withdraws Acquisition Offer for Abacus Storage King

Public Storage (PSA) shares declined slightly after the company withdrew its acquisition offer for Abacus Storage King, citing financial discipline and confidence in optimizing its portfolio through other opportunities. The decision was made after completing due diligence with Ki Corporation. Public Storage is a real estate investment trust specializing in self-storage facility acquisition, development, ownership, and operation.

July 2, 2025

Public Storage (PSA) shares experienced a slight decline following the company's withdrawal of its non-binding indicative offer to acquire Abacus Storage King (ASX:ASK). The decision, made after a comprehensive due diligence period with Ki Corporation, reflects Public Storage's financial discipline and confidence in optimizing its portfolio through other opportunities [1].

Joe Russell, Public Storage's Chief Executive Officer, stated, "We appreciate Abacus Storage King’s partnership through the due diligence processes. Following extensive review, we were unable to match their Independent Board Committee’s value assessment. This decision reflects our financial discipline and confidence in the wide array of opportunities available to continue enhancing our portfolio" [1].

Public Storage, a member of the S&P 500, is a real estate investment trust (REIT) that primarily acquires, develops, owns, and operates self-storage facilities. As of June 30, 2025, the company owned and/or operated 3,432 self-storage facilities located in 40 states with approximately 250 million net rentable square feet in the United States and owned a 35% common equity interest in Shurgard Self Storage Limited (Euronext Brussels: SHUR) [1].

The withdrawal of the acquisition offer comes amidst a period of strong financial performance for Public Storage. In the first quarter of 2025, the company reported a quarterly earnings per share (EPS) of $4.28, exceeding estimates, and its FY 2025 guidance is set between 16.450-17.00 EPS [2]. Several institutional investors and hedge funds have also shown interest in Public Storage, with Ameriprise Financial Inc. increasing its holdings by 0.2% in Q1 and other investors such as Shum Financial Group Inc., Lido Advisors LLC, Meeder Advisory Services Inc., and Meeder Asset Management Inc. also increasing their stakes [2].

Public Storage's stock performance has been robust, with a current ratio of 1.77, a quick ratio of 1.77, and a debt-to-equity ratio of 2.04. The company has a market cap of $50.25 billion, a P/E ratio of 31.23, and a beta of 0.86. Analysts have a mixed view on the stock, with an average rating of "Moderate Buy" and a consensus price target of $335.43 [2].

Despite the withdrawal of the acquisition offer, Public Storage's strategic focus on optimizing its portfolio and expanding its opportunity set is likely to continue driving growth and value creation for shareholders. The company's strong financial performance and robust investment profile suggest that it remains a solid investment for those looking to gain exposure to the self-storage sector.

References:

[1] https://finance.yahoo.com/news/ki-corporation-public-storage-withdraw-233500088.html
[2] https://www.marketbeat.com/instant-alerts/filing-public-storage-psa-shares-acquired-by-ameriprise-financial-inc-2025-08-22/