Extra Space Storage Inc. will issue and sell 5 million shares of its common stock in a public offering. Citigroup Global Markets Inc. is acting as the sole book-running manager for the offering. Extra Space will grant the underwriter a 30-day option to purchase up to an additional 750,000 shares to cover over-allotments, if any.
The company intends to use the net proceeds from the offering to repay outstanding debt and to fund potential property acquisitions, including a newly announced multi-property acquisition in Ohio for $39.5 million. Total acquisitions under contract to will amount to $198.2 million. Any excess proceeds will be used for general corporate purposes. A shelf registration statement relating to these securities has been filed with and declared effective by the Securities and Exchange Commission.
Headquartered in Salt Lake City, Extra Space owns or operates 832 self-storage properties in 34 states and Washington, D.C. The company's properties comprise approximately 555,000 units and more than 60 million square feet of rentable storage space.