BY Richard Summerfield
Public Storage Inc., a self-storage real estate investment trust (REIT) and third-party management firm, has agreed to acquire its smaller rival ezStorage for $1.8bn.
The deal, which is expected to close in May 2021, will see Public Storage acquire California-based ezStorage and its 48 properties, which comprise 4.2 million net rentable square feet across Washington, DC, Virginia and Maryland. The company will fund the transaction with unsecured debt and expects it to be immediately accretive to funds from operations (FFO).
“We are pleased to welcome the ezStorage customers to Public Storage’s industry-leading brand and platform,” said Joe Russell, chief executive of Public Storage. “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,” said Mike McGowan, senior vice president of acquisitions at Public Storage. “Their properties reflect unparalleled local-market knowledge and a focus on location and property quality. 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.”
Public Storage has interests in 2548 self-storage facilities in 38 states across the US, with approximately 175 million net of rentable square feet. The company also holds a 35 percent interest in Shurgard Self Storage SA, which has 241 facilities in seven European countries, with approximately 13 million net rentable square feet.
Public Storage has been particularly active in the M&A market in recent years. Since 2019, the company expanded its net rentable square feet by 13 percent, or about 21 million net rentable square feet, through $4.1bn in acquisitions, development and expansions, not including the deal for ezStorage.
Under the terms of the deal, Public Storage will take over responsibility of one property still under construction and intends to expand eight existing ezStorage locations. Those projects will increase the portfolio’s square footage by 10 percent throughout 2023, the company announced.
News: Public Storage acquires rival ezStorage for $1.8 billion