8-KRegulation FDOther EventsExhibits & Filings

Public Storage 8-K Report, Regulation FD Disclosure (Apr 13, 2021)

Filed April 13, 2021For Securities:PSAPSA-PRPSA-PFPSA-PGPSA-PHPSA-PIPSA-PJPSA-PMPSA-PNPSA-POPSA-PPPSA-PQPSA-PSPSA-PKPSA-PL

Summary

Public Storage (PSA) announced a significant strategic acquisition on April 13, 2021, entering into a definitive agreement to acquire 48 self-storage facilities from ezStorage Corp. for $1.8 billion. These facilities are strategically located across key sub-markets within the Washington D.C. and Baltimore metropolitan areas, adding 4.2 million net rentable square feet to PSA's portfolio. This move is expected to enhance the company's market presence in attractive, high-density regions. The acquisition, anticipated to close in May 2021, represents a substantial investment and is poised to contribute to Public Storage's growth. The acquired properties demonstrated strong performance metrics in Q4 2020, with an average occupancy of 86% and a rent per square foot of $21.89. The company estimates a nominal capitalization rate of 3.6% based on the annualized net operating income from this portfolio, suggesting a potentially attractive yield on investment. Investors should note that the closing of this transaction is subject to customary conditions.

Key Highlights

  • 1Public Storage (PSA) to acquire 48 self-storage facilities from ezStorage Corp. for $1.8 billion.
  • 2Acquisition expands PSA's footprint into the Washington D.C. and Baltimore metropolitan areas.
  • 3Adds 4.2 million net rentable square feet to the company's portfolio.
  • 4Acquired properties averaged 86% occupancy and $21.89 rent per square foot in Q4 2020.
  • 5Estimated nominal capitalization rate for the acquisition is 3.6%.
  • 6Transaction is expected to close in May 2021, subject to customary closing conditions.

Frequently Asked Questions

The acquisition of ezStorage Corp. facilities allows Public Storage to expand its presence in attractive, high-density sub-markets within the Washington D.C. and Baltimore metropolitan areas. These are strategically important and growing regions, and the addition of these facilities is expected to strengthen PSA's market position.

The acquisition price is $1.8 billion. The acquired portfolio demonstrated strong performance in Q4 2020 with 86% occupancy and an average rent of $21.89 per square foot. Public Storage estimates a nominal capitalization rate of 3.6% based on the annualized net operating income from these properties, suggesting a potentially accretive investment.

The acquisition is expected to close in May 2021. However, the transaction is subject to the satisfaction of customary closing conditions, and there can be no assurance that the closing conditions will be met or that the acquisition will be completed on the described terms.

Public Storage posted a presentation and issued a press release regarding this acquisition on its website on April 13, 2021. These documents are referenced as Exhibits 99.1 and 99.2 in the 8-K filing. Information regarding forward-looking statements and associated risks can be found in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2020.