Shares of National Storage Affiliates (NSA 2.81%) surged on Monday after the real estate investment trust (REIT) struck a deal to be acquired by Public Storage (PSA 2.60%).
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An enticing offer for National Storage Affiliates' shareholders
Under the terms of the deal, Public Storage would purchase National Storage Affiliates for $10.5 billion, including debt. Investors would receive 0.14 of a share of Public Storage stock for every share of National Storage Affiliates they own. That equates to $41.68 per share, a premium of roughly 35%, based on the companies' closing prices on Friday.
The deal is projected to close in the third quarter, subject to shareholder and regulatory approval.
NYSE: NSA
Key Data Points
National Storage Affiliates brings over 1,000 properties with 550,000 storage units spanning 69 million rentable square feet in 37 states and Puerto Rico. Public Storage already possesses more than 3,500 self-storage sites with over 250 million rentable square feet in 40 states. The combined company's pro forma market value is estimated at $57 billion.
Stronger together
Operating under the well-known Public Storage brand should provide a marketing boost to National Storage Affiliates' facilities. The merged company should also benefit from cost efficiencies, attractive financing terms, and robust free cash flow.
"Public Storage is the ideal strategic fit for our company given their best-in-class brand, operating platform, and future growth profile," National Storage Affiliates CEO David Cramer said.
