Self-storage real estate investment trust Extra Space Storage Inc. will issue and sell 5,200,000 shares of its common stock in a public offering. Citigroup 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 780,000 shares.
Extra Space intends to use the net proceeds of the offering to fund its acquisition of 28 properties that are under contract or letter of intent with an aggregate purchase price of $190.2 million. The funds will also be used to repay a portion of the outstanding indebtedness under the company's secured lines of credit and other general corporate and working-capital purposes.
The pending acquisitions include the purchase of a joint-venture partner's interest in one of Extra Space's existing joint ventures that owns 21 self-storage properties in 11 states, resulting in full ownership of the joint venture by the company. They also include the purchase of seven additional properties in Florida, Maryland, Massachusetts and New Jersey.
The pending acquisitions are subject to the completion of the company's due diligence, the satisfaction of other closing conditions andin the case of the acquisition of the joint-venture partner's interestthe negotiation and execution of a definitive purchase agreement. Extra Space intends to close the acquisitions by Dec. 31, assuming all conditions are satisfied.
An automatic shelf registration statement and preliminary prospectus supplement relating to these securities were previously filed with the Securities and Exchange Commission.
The offering will be made only by means of a prospectus supplement and accompanying prospectus, copies of which may be obtained from Citigroup, C/O Broadridge Financial Solutions, 1155 Long Island Ave., Edgewood, NY 11717.
Headquartered in Salt Lake City, Extra Space owns or operates more than 900 self-storage properties throughout the United States and Puerto Rico. The companys properties comprise approximately 610,000 units and about 66.5 million square feet of rentable space.
- Extra Space Storage: Extra Space Storage Inc. Announces Offering of 5,200,000 Shares of Common Stock