Self-Storage REITs Extra Space, Life Storage Complete Merger

July 20, 2023

5 Min Read
Self-Storage REITs Extra Space, Life Storage Complete Merger

Update 7/20/23 – Self-storage REITs Extra Space and Life Storage have completed their merger following yesterday’s shareholder approval. The combined company creates the largest operator in the industry, with more than 3,500 locations comprising about 270 million rentable square feet. It has an enterprise value of approximately $46 billion, according to a press release.

“We are prepared for the smooth integration of Life Storage, and we believe this combination gives the combined company an even more formidable portfolio, team and platform, with over 3,500 stores across 43 states,” Margolis said. “We are confident we will achieve at least $100 million in underwritten annual run-rate synergies, and that we will unlock additional synergies resulting from our increased scale.”

The combined company currently operates self-storage facilities under the Extra Space, Life Storage and Storage Express brand names.

With the completion of the merger, the Extra Space board has expanded from 10 to 13 directors, adding three members designated by Life Storage: Mark G. Barberio, Joseph Saffire and Susan Harnett.

7/19/23 – Shareholders of self-storage REITs Extra Space and Life Storage yesterday voted to approve the proposed merger between the two companies during separate virtual meetings. The deal was affirmed by more than 99.9% of Extra Space stockholders and more than 99.7% of Life Storage stockholders. The votes represented about 90.3% of Extra Space outstanding shares of common stock, while Life Storage votes represented approximately 83.4%., according to a press release.

The transaction is expected to close tomorrow, subject to customary closing conditions.

4/3/23 – Self-storage real estate investment trusts (REITs) Extra Space Storage Inc. and Life Storage Inc. have signed a merger agreement, under which Extra Space will acquire Life Storage in an all-stock transaction for $12.7 billion. The deal, which is expected to close during the second half of the year, will add 1,198 facilities and more than 88 million square feet to the Extra Space portfolio and create the industry’s largest footprint, with more than 3,500 locations comprising more than 264 million square feet, according to a press release.

The combined company is expected to have an equity value of $36 billion and enterprise worth of about $47 billion. Under the terms of the agreement, Life Storage shareholders will receive 0.8950 of an Extra Space share for each Life Storage share, representing a total consideration of about $145.82 per share based on the closing stock price on March 31, the release stated.

The respective boards of directors unanimously approved the transaction, though it must still be accepted by shareholders of both REITs.

The combined entity will retain the Extra Space name and continue to trade on the New York Stock Exchange under the EXR ticker. Kenneth W. Woolley will remain board chair, while Joseph D. Margolis will continue as CEO and director. The company board will expand from 10 to 12 members and include three directors from Life Storage, according to the release.

The deal comes a little more than a month after Life Storage formally rejected a hostile takeover bid by Public Storage Inc. in an all-stock offer of about $11 billion. In a joint statement, Extra Space and Life Storage officials cited “transformative scale,” “enhanced diversification,” operational synergies and financial impact as key benefits of the transaction.

“We are impressed with the management team’s strategic repositioning of the Life Storage portfolio over the last seven years, creating a highly diversified portfolio of quality storage assets in strong growth markets,” Margolis said. “The business combination is highly synergistic, creating an even stronger combined company that will drive long-term, outsized operational and external growth opportunities through scale efficiencies, higher retained cash flow, data analytics, third-party management relationships and more. We look forward to welcoming the Life Storage family to Team Extra Space and bringing our organizations together to drive enhanced growth.”

“Following a deliberate and comprehensive review, the Life Storage board unanimously concluded that the pending transaction with Extra Space maximizes value today and is the transaction most likely to deliver superior long-term returns for our shareholders,” said Joseph Saffire, CEO of Life Storage. “Together with Extra Space, we expect to accelerate growth while maintaining our customer-centric focus and commitment to continued innovation. We are also pleased that Life Storage shareholders will participate in the tremendous upside of the combined Extra Space and Life Storage platform through a significant ownership stake in the combined company.”

The addition of Life Storage properties is expected to grow the Extra Space portfolio by more than 50%. The Life Storage portfolio includes 758 wholly-owned, 141 joint-venture and 299 managed facilities.

Extra Space is working with Citigroup Global Markets Inc. and J.P. Morgan Securities LLC as lead and secondary financial adviser, respectively. Latham & Watkins LLP is serving as its legal adviser. Life Storage is using BofA Securities and Wells Fargo Securities as financial advisers and Hogan Lovells US LLP and Quinn Emanuel Urquhart & Sullivan LLP as legal advisers.

The REITs hosted a joint webcast and conference call this morning at 8:30 a.m. ET. A webcast replay will be posted on the investor-relations pages of and A telephonic replay also will be available until April 17.

Headquartered in Salt Lake City, Extra Space owns or operates more than 2,338 self-storage properties nationwide and in Puerto Rico. The company’s properties comprise approximately 1.6 million units and 176.1 million square feet of rentable space.

Based in Buffalo, New York, Life Storage operates in 37 states and Washington, D.C.

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