Self-Storage REIT Extra Space Announces Public Offering of 5.5M Shares of Common Stock
Extra Space Storage Inc., a self-storage real estate investment trust (REIT) and third-party management firm, will offer 5.5 million shares of common stock in a public offering at $68.15 per share. The gross proceeds are expected to garner $374.8 million, with the offering expected to close by June 22. In addition, the REIT has granted underwriters a 30-day option to purchase up to an additional 825,000 shares. The offering will be managed jointly by Bank of America Merrill Lynch, Citigroup and Wells Fargo Securities LLC, according to a press release.
June 16, 2015
Extra Space Storage Inc., a self-storage real estate investment trust (REIT) and third-party management firm, will offer 5.5 million shares of common stock in a public offering at $68.15 per share. The gross proceeds are expected to garner $374.8 million, with the offering expected to close by June 22. In addition, the REIT has granted underwriters a 30-day option to purchase up to an additional 825,000 shares. The offering will be managed jointly by Bank of America Merrill Lynch, Citigroup and Wells Fargo Securities LLC, according to a press release.
Extra Space will use the proceeds from the offering to partially fund its intended $1.4 billion acquisition of SmartStop Self Storage Inc., which operates 168 facilities in 21 states and Canada. If approved by SmartStop shareholders, Extra Space will claim ownership of 121 SmartStop facilities and assume third-party management of 43 others. The deal is expected to close before the end of the year.
The public-offering shares will be issued pursuant to an effective shelf-registration statement filed with the Securities and Exchange Commission.
Headquartered in Salt Lake City, Extra Space currently owns or operates 1,106 self-storage properties in 35 states; Washington, D.C.; and Puerto Rico. The company’s properties comprise approximately 740,000 units and 81.8 million square feet of rentable space. The SmartStop portfolio will boost its footprint to nearly 95 million square feet.
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