Is PSA (Public Storage) Halal or Haram?

Based on our AAOIFI-standard shariah screening, PSA is Halal and considered permissible for Muslim investors. It passed all 4 of 4 compliance screens including business activity review, debt-to-market-cap ratio (19.89% vs ≤33% threshold), interest income ratio (0.76% vs ≤5% threshold), and cash & securities ratio (0.62% vs ≤33% threshold).

Public Storage is a leading Real Estate Investment Trust (REIT) that acquires, develops, and operates self-storage facilities. With over 2,500 locations across the United States and a significant stake in Europe's Shurgard brand, it provides rentable storage space to millions of individual and commercial customers. For Muslim investors, Public Storage currently stands as a fully Halal investment option under AAOIFI standards. The company successfully passes all four critical screening criteria, meaning both its core real estate operations and its capital structure align with Islamic finance principles. From a financial perspective, the company maintains a conservative balance sheet with a Debt to Market Cap ratio of 19.9%, remaining comfortably below the 33% maximum limit. Additionally, its interest-bearing cash reserves are exceptionally low at 0.6% of market capitalization, and impermissible interest income accounts for a negligible 0.76% of total revenue. While the stock is currently compliant, everyday Muslim investors should continue to monitor its debt levels and interest income quarterly. As real estate expansion often requires capital, ensuring that future acquisitions do not push conventional debt past the 33% threshold remains essential for ongoing shariah compliance. Public Storage operates in the Real Estate sector under the REIT - Industrial industry and is headquartered in Glendale, CA, US. The company is led by CEO H. Thomas Boyle and employs approximately 5,900 people.

PSA was screened using AAOIFI-based shariah compliance criteria. Four tests are applied: (1) Business Activity — the company's core business must not derive primary income from haram (prohibited) activities such as alcohol, gambling, tobacco, or interest-based finance. (2) Debt-to-Market-Cap — total debt must not exceed 33% of market capitalization. (3) Interest Income — interest income must not exceed 5% of total revenue. (4) Cash & Securities — cash and interest-bearing securities must not exceed 33% of market cap. PSA passed 4 of these 4 screens.

Although PSA passes all shariah screens, it does earn $36.6M in interest income (0.76% of revenue). Many scholars recommend purifying this portion by donating the equivalent percentage of any dividends received to charity. For example, if you receive $100 in dividends, you would donate approximately $0.76 to purify the income.

PSA was last screened on 2026-04-29. Shariah compliance status can change as companies report new financial data, acquire new businesses, or shift revenue streams. We recommend checking back periodically for the most up-to-date screening results.