The Short Answer
Public Storage (PSA) is currently doubtful under the examined quantitative screens. Its core self-storage leasing activity is generally permissible, but the latest debt/assets calculation is above the examined FTSE Yasaar, MSCI and Malaysia asset-based limits. Tenant reinsurance, preferred equity and the pending National Storage Affiliates transaction also need qualitative review.
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.
This is a reproducible ZakatInvest calculation from Public Storage's March 31, 2026 Form 10-Q. It is not an index-membership claim or a fatwa. Market-cap denominator methods are not estimated without a licensed historical market-cap series, and the qualitative analysis remains separate from the numerical result.
Sharia Screening Methodology
Islamic equity screens commonly examine:
- Business activity: whether the core activity and material revenue streams are permissible
- Debt and liquidity: interest-bearing liabilities and cash or interest-bearing securities relative to assets or market value
- Receivables: receivables plus cash relative to assets, with thresholds varying by methodology
- Non-compliant income: separately disclosed interest or other prohibited income, where the filing permits a reproducible numerator
Public Storage's Business Activity
Public Storage owned 3,176 self-storage facilities across 40 states and Puerto Rico at March 31, 2026. Its consolidated operations include the same-store and acquired-property portfolios, third-party property management, tenant reinsurance and merchandise sales. General-purpose self-storage leasing is generally permissible at the activity level, but each ancillary stream still needs its own Sharia treatment.
Qualitative Concerns
1. Conventional debt and preferred equity
The Q1 filing reports $9,707.266 million of notes payable and $325.0 million drawn on the unsecured credit facility. It also reports $4,350 million of preferred shares with stated dividend rates. The quantitative panel uses the interest-bearing debt input for the named asset-based calculations; preferred equity remains a separate qualitative concern rather than being silently added to that ratio.
2. Tenant reinsurance and ancillary revenue
Tenant reinsurance premiums were $66.503 million in the quarter, alongside merchandise and third-party-management revenue. The filing does not allocate every tenant, insurance or merchandise stream into a universal prohibited-revenue numerator, so no unsupported percentage is asserted. A qualified scholar should determine how the insurance contracts and related distributions should be treated.
3. Pending National Storage Affiliates merger
Public Storage announced a proposed all-stock acquisition of National Storage Affiliates. The filing says the transaction was expected to close in the third quarter of 2026, subject to approvals and other conditions. Closing could change the debt, preferred-equity, property and ancillary-revenue perimeter, so PSA should be re-screened when the transaction status changes.
Current Financial Ratios (March 31, 2026)
- Interest-bearing debt / assets: 50.54% — above the examined 33% limits ❌
- Cash + interest-bearing securities / assets: 0.68% — below the examined liquidity limits ✅
- Receivables + cash / assets: 1.40% — below the examined receivables limits ✅
- Non-compliant income / revenue: Not calculated; interest and other income is combined in the filing
- Prohibited-revenue numerator: Not disclosed; business-activity screen remains incomplete
How to Read the Result
PSA is doubtful in this review: self-storage is generally permissible, but debt/assets of 50.54% fails the examined asset-based methods. The result does not claim that every methodology or scholar reaches the same conclusion.
- FTSE Yasaar asset-based debt screen — Fails at 50.54% ❌
- MSCI Islamic total-assets debt screen — Fails at 50.54% ❌
- Malaysia SAC asset-based debt screen — Fails at 50.54% ❌
Bottom Line
Public Storage (PSA) is currently doubtful under the examined quantitative screens. The core self-storage business is generally permissible, but conventional financing fails the named asset-based debt tests, while tenant reinsurance, preferred distributions and the pending NSA transaction require additional scholar-specific analysis. No fixed purification percentage is asserted from the combined interest-and-other-income line.
PSA's self-storage activity is generally permissible, but the current asset-based debt screen fails. Use the checker to compare other securities.
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