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.