Public Storage Announces Closing of the ezStorage Portfolio Acquisition

Rhea-AI Summary

Public Storage (NYSE: PSA) has completed the acquisition of ezStorage for $1.8 billion, adding 48 properties with 4.2 million net rentable square feet in high-demand areas of Washington DC, Virginia, and Maryland. This acquisition enhances Public Storage's presence, yielding a total of 163 properties and 11.3 million net rentable square feet in the Mid-Atlantic region. The transaction, immediately accretive to FFO, was funded by $2 billion in senior unsecured notes, and is expected to enhance the company's growth strategy.

Positive

• Acquisition of ezStorage valued at $1.8 billion expands footprint by 48 properties.
• Immediately accretive to FFO, indicating financial benefit to shareholders.
• In-house development team to expand portfolio by 10%, enhancing long-term growth.
• Strengthened market presence in high-demand submarkets.

Negative

• None.

Public Storage (NYSE:PSA), the leading owner, acquirer, developer, and operator of self-storage properties, announced today that it has closed on the acquisition of ezStorage, one of the highest quality self-storage portfolios in the United States, for $1.8 billion.

The transaction adds 48 properties (4.2 million net rentable square feet) located in submarkets with strong demand and high barriers for new property development across Washington DC, Virginia, and Maryland. In combination with Public Storage’s existing market presence, the Company’s Mid-Atlantic portfolio is unmatched in coverage and quality with 163 properties and 11.3 million net rentable square feet.

The acquisition highlights Public Storage’s unique operating, property development, and balance sheet advantages. The Public Storage operations team will optimize performance through the industry’s leading brand and platform. Public Storage’s in-house development team, the only one amongst the self-storage REIT peer group, will expand the portfolio’s square footage by 10% through development opportunity at eight of the sites. The Company funded the acquisition by utilizing its growth-oriented balance sheet to issue $2 billion of senior unsecured notes and quickly closed the transaction in a well-coordinated effort with the ezStorage team. The acquisition is immediately accretive to FFO, and a presentation with further detail is available on the Investor Relations section of PublicStorage.com

“We are pleased to acquire such an irreplaceable portfolio and, once again, thank the Manganaro family and the entire ezStorage team for their partnership through this process,” said Joe Russell, Public Storage Chief Executive Officer. “I am also very proud of the Public Storage team’s execution of our opportunistic growth strategy. Since the start of 2019, we have expanded our portfolio by 22 million net rentable square feet, or 13%, through $4.3 billion of acquisitions, development, and redevelopment. We continue to see broad opportunity for growth across the property acquisition and development spectrum.”

Company Information

Public Storage, a member of the S&P 500 and FT Global 500, is a REIT that primarily acquires, develops, owns, and operates self-storage facilities. At March 31, 2021, we had: (i) interests in 2,563 self-storage facilities located in 38 states with approximately 176 million net rentable square feet in the United States, (ii) an approximate 35% common equity interest in Shurgard Self-Storage SA (Euronext Brussels:SHUR) which owned 243 self-storage facilities located in seven Western European nations with approximately 13 million net rentable square feet operated under the “Shurgard” brand, and (iii) an approximate 42% common equity interest in PS Business Parks, Inc. (NYSE:PSB) which owned and operated approximately 28 million rentable square feet of commercial space at March 31, 2021. Our headquarters are located in Glendale, California.

Additional information about Public Storage is available on the Company’s website at PublicStorage.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210429005666/en/

FAQ

What is the value of the ezStorage acquisition by Public Storage?

Public Storage acquired ezStorage for $1.8 billion.

How many properties were included in the ezStorage acquisition?

The acquisition includes 48 properties.

What is the impact of the ezStorage acquisition on Public Storage's FFO?

The acquisition is immediately accretive to FFO, benefiting shareholders.

Where are the ezStorage properties located?

The properties are located in Washington DC, Virginia, and Maryland.

What growth strategy is Public Storage pursuing with this acquisition?

Public Storage plans to expand its portfolio's square footage by 10% through in-house development.