What to Know About This Fund's $61 Million Self-Storage Bet as a $10.5 Billion Deal Nears

First Trust Capital Management established a new position in National Storage Affiliates Trust (NYSE:NSA) during the first quarter, buying an estimated $61.29 million in shares based on average quarterly pricing, according to a May 14, 2026, SEC filing.

What happened

According to an SEC filing dated May 14, 2026, First Trust Capital Management L.P. reported a new position in National Storage Affiliates Trust, acquiring 1,814,200 shares. The estimated transaction value was $61.29 million, calculated using the average closing price for the quarter ending March 31, 2026. The stake’s quarter-end value was $68.47 million, a figure that incorporates both trading activity and changes in the stock’s price.

What else to know

• This was a new position for the fund, representing 3.6% of its 13F assets under management after the trade.
• Top holdings post-filing:
  • NYSE:GTLS: $130.63 million (6.9% of AUM)
  • NASDAQ:HOLX: $100.38 million (5.3% of AUM)
  • NYSE:SEE: $98.23 million (5.2% of AUM)
  • NASDAQ:MASI: $85.27 million (4.5% of AUM)
  • NASDAQ:EA: $82.77 million (4.3% of AUM)
• As of Friday, NSA shares were priced at $42.71, up about 26% over the past year, which is roughly in line with the S&P 500’s roughly 28% gain in the same period.

Company overview

Company snapshot

• NSA operates and acquires self-storage properties across major U.S. metropolitan areas, generating revenue from rental income and related services.
• The firm employs a real estate investment trust (REIT) model, aggregating and managing a diversified portfolio of storage assets to drive recurring cash flow and scale efficiencies.
• It serves individuals, small businesses, and commercial clients seeking secure, flexible storage solutions in key growth markets.

National Storage Affiliates Trust is a leading self storage REIT with a substantial footprint in the United States, focusing on ownership and operation of properties in high-demand metropolitan areas.

What this transaction means for investors

First Trust appears to be buying into a self-storage REIT that already has a defined catalyst on the horizon: its planned acquisition by Public Storage in a transaction valued at roughly $10.5 billion. The acquisition was announced in mid-March, so it’s not clear whether First Trust bought in before or after, but holding onto the position at quarter’s end suggests conviction through at least then.

Meanwhile, National Storage Affiliates has been producing respectable operating results. First-quarter net income climbed 42% year over year to $27.7 million, while Core FFO per share increased 5.6% to $0.57. Same-store NOI rose 2.0%, helped by lower operating expenses and improving occupancy, which reached 84.5% at quarter end and 84.9% by April 30.

In the earnings release, management highlighted the pending Public Storage merger as the reason it would discontinue formal guidance because of the transaction.

For long-term investors, the takeaway is straightforward. This is less a bet on explosive growth and more a wager that a high-quality portfolio of 1,061 storage properties across 37 states will successfully make it across the finish line of a major industry consolidation deal.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chart Industries and Masimo. The Motley Fool recommends Electronic Arts. The Motley Fool has a disclosure policy.