Public Storage Enhances Portfolio Coverage, Quality, and Growth with ezStorage Acquisition

Rhea-AI Summary

Public Storage (NYSE:PSA) has acquired ezStorage for $1.8 billion, adding 48 properties with 4.2 million net rentable square feet across Washington DC, Virginia, and Maryland. This acquisition is part of Public Storage’s growth strategy, expected to increase its portfolio by 10% by expanding existing properties. Funded through unsecured debt, the deal is anticipated to be accretive to FFO following closing in May 2021. Since 2019, Public Storage has expanded by 21 million net rentable square feet through $4.1 billion in acquisitions and development.

Positive

• Acquisition of ezStorage enhances market presence with 48 properties and 4.2 million net rentable square feet.
• Transaction expected to be immediately accretive to FFO.
• Portfolio expansion of approximately 21 million net rentable square feet since 2019 strengthens growth strategy.

Negative

• None.

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

The portfolio comprises 48 properties (4.2 million net rentable square feet) located in submarkets with strong demand drivers and high barriers for new property development across Washington DC, Virginia, and Maryland. Public Storage’s industry-leading development team will assume responsibility for one property that is under construction and expand eight additional properties, resulting in a 10% increase in square footage through 2023. In combination with its existing market presence, the Company’s Mid-Atlantic portfolio will be unmatched in coverage and quality with 163 properties and 11.3 million net rentable square feet.

The Company plans to fund the acquisition with unsecured debt. The transaction will be immediately accretive to FFO following an anticipated closing in May 2021. A presentation with further detail regarding the transaction is available on the Investor Relations section of PublicStorage.com

The transaction reflects Public Storage’s continued execution of its opportunistic growth strategy. Capitalizing on its industry-leading brand, operating scale, and growth-oriented balance sheet, the Company has been actively expanding its portfolio through acquisitions and development. Since the start of 2019, Public Storage has expanded its portfolio by approximately 21 million net rentable square feet, or 13%, through $4.1 billion of acquisitions, development, and redevelopment, including properties under contract.

“We are pleased to welcome the ezStorage customers to Public Storage’s industry-leading brand and platform,” said Joe Russell, Public Storage Chief Executive Officer. “The acquisition is a direct reflection of Public Storage’s unique positioning for growth through acquisitions, development, redevelopment, and third-party management.”

“We thank the Manganaro family and the ezStorage team for their integrity through our long-standing relationship. Their properties reflect unparalleled local-market knowledge and a focus on location and property quality,” said Mike McGowan, Public Storage Senior Vice President of Acquisitions. “Looking ahead, we see a wide range of opportunities to acquire and develop properties in desirable markets as part of Public Storage’s broader growth initiatives.”

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 December 31, 2020, we had: (i) interests in 2,548 self-storage facilities located in 38 states with approximately 175 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 241 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 December 31, 2020. 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/20210413005647/en/

FAQ

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

The acquisition of ezStorage by Public Storage is valued at $1.8 billion.

How many properties are included in the ezStorage acquisition?

The ezStorage acquisition includes 48 properties.

When is the expected closing date for the ezStorage acquisition?

The ezStorage acquisition is expected to close in May 2021.

What impact will the ezStorage acquisition have on Public Storage's portfolio size?

The acquisition will increase Public Storage's portfolio size by 10% through additional expansions.

How is Public Storage financing the ezStorage acquisition?

Public Storage plans to fund the ezStorage acquisition with unsecured debt.