PSA
Public Storage
Is PSA Halal?
Self-storage leasing is generally permissible, but Public Storage's current debt/assets ratio fails the examined asset-based Sharia limits and its ancillary insurance and preferred-equity exposures remain qualitative concerns.
What You Should Know
Public Storage is a self-storage REIT operating 3,176 facilities as of March 31, 2026, with ancillary tenant reinsurance, merchandise and third-party-management businesses. Its Q1 2026 Form 10-Q reports $19,850.409 million of total assets, $10,032.266 million of interest-bearing debt, $134.609 million of cash, $142.501 million of net notes receivable and $1,217.741 million of quarterly revenue. Those inputs produce debt/assets of 50.54%, liquidity of 0.68% and receivables plus cash/assets of 1.40%. Debt fails the examined FTSE Yasaar, MSCI and Malaysia asset-based limits; the core self-storage activity is generally permissible, but the filing does not provide a universal prohibited-revenue or separate interest-income numerator. Preferred shares, tenant reinsurance and the pending National Storage Affiliates merger remain material qualitative considerations. This is a current ZakatInvest calculation, not an index-membership claim.
⚠️ Concerns
- •Debt/assets of 50.54% exceed the examined 33% asset-based limits; the calculation uses notes payable plus the drawn credit facility
- •Public Storage has $4,350 million of preferred shares with stated dividend rates; preferred equity is retained as a qualitative concern and is not silently added to the debt input
- •Tenant reinsurance is reported as a material ancillary revenue stream and requires scholar-specific treatment rather than an unsupported haram-revenue estimate
- •Interest and other income is combined in the filing, so no separate interest-income percentage or fixed purification rate is asserted
- •The pending National Storage Affiliates merger could materially change debt, preferred equity, property and ancillary-revenue exposures
- •Market-cap denominator methods are not calculated without a licensed historical market-cap series
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-03-31; calculated 2026-07-13.
10,032.266 / 19,850.409
134.609 / 19,850.409
277.11 / 19,850.409
- Financial
- Fails
- Overall
- Fails
Debt is 50.54%, above the examined 33.333% limit. Liquidity is 0.68% and receivables plus cash are 1.40%, below their limits; the income numerator is unavailable and the business allocation remains incomplete.
- Financial
- Fails
- Overall
- Fails
Debt is 50.54%, above the examined 33.33% total-assets limit. Liquidity and receivables plus cash are below the examined limits. This is a calculation against the named method, not an index-membership claim.
- Financial
- Fails
- Overall
- Fails
Debt is 50.54%, above the examined 33% limit; liquidity is 0.68%. This is a calculation against SAC ratios, not an official classification of a U.S.-listed security.
- Financial
- Not calculated
- Overall
- Not calculated
A properly licensed and reproducible historical market-cap series is not stored, so these methods are not estimated from a current spot price.
Business-activity disclosure
Public Storage is a REIT whose core business owns and operates self-storage facilities. General-purpose self-storage leasing is generally permissible at the activity level, while tenant reinsurance, merchandise sales, third-party management and a pending NSA transaction require separate qualitative review.
Limitation: The quarterly filing reports ancillary revenue categories but does not allocate every tenant, insurance, merchandise or related-party stream into a universal prohibited-revenue numerator.
Purification
Public Storage does not separately disclose interest income from the combined interest-and-other-income line or a scholar-approved purification percentage for tenant reinsurance, preferred distributions or leverage-related returns.
Inputs, assumptions and primary sources
- Assets use Public Storage's consolidated total assets of $19,850.409 million at March 31, 2026.
- Interest-bearing debt uses $9,707.266 million of notes payable plus $325.0 million drawn on the unsecured credit facility. Preferred shares of $4,350 million are retained as a qualitative capital-structure concern and are not silently added to the debt input.
- Cash uses $134.609 million of cash and equivalents. Receivables use the separately disclosed $142.501 million of net notes receivable; other assets are not separately disaggregated into a reproducible receivables numerator.
- Quarterly revenue uses $1,217.741 million of total revenues. The filing reports $7.778 million of combined interest and other income (expense), but does not separately isolate interest income, so no non-compliant-income percentage is inferred.
- The filing reports self-storage, tenant reinsurance, merchandise and third-party-management revenue, but does not provide a universal prohibited-revenue numerator for every tenant, insurance or merchandise category.
This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.
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