Public Storage to Acquire Simply Self Storage Portfolio

TL;DR

Public Storage buying Simply Self Storage portfolio, deal closes Q3 2024.

AI Summary

On June 3, 2024, Public Storage filed an 8-K to disclose that it has entered into a definitive agreement to acquire the self-storage portfolio of Simply Self Storage. The transaction is expected to close in the third quarter of 2024, subject to customary closing conditions. This acquisition will significantly expand Public Storage's presence in key markets.

Why It Matters

This acquisition represents a significant strategic move for Public Storage, expanding its market share and potentially leading to increased revenue and operational efficiencies.

Risk Assessment

Risk Level: medium — The acquisition is subject to customary closing conditions, meaning there's a possibility the deal may not be completed.

Key Players & Entities

• Public Storage (company) — Acquiring company
• Simply Self Storage (company) — Target company
• June 3, 2024 (date) — Filing date
• third quarter of 2024 (date) — Expected closing period

FAQ

Key Financial Figures

• $0.10 — nge on which registered Common Shares, $0.10 par value PSA New York Stock Exchange
• $0.01 — 0 of a 5.150% Cum Pref Share, Series F, $0.01 par value PSAPrF New York Stock Exchang

Filing Documents

• psa-20240603.htm (8-K) — 76KB
• 0001393311-24-000140.txt ( ) — 336KB
• psa-20240603.xsd (EX-101.SCH) — 5KB
• psa-20240603_def.xml (EX-101.DEF) — 22KB
• psa-20240603_lab.xml (EX-101.LAB) — 44KB
• psa-20240603_pre.xml (EX-101.PRE) — 24KB
• psa-20240603_htm.xml (XML) — 16KB

01 Regulation FD Disclosure

Item 7.01 Regulation FD Disclosure. On June 3, 2024, Public Storage (the "Company") posted on the Investor Relations section of its website a presentation (the "Investor Presentation") it intends to use at an upcoming investor conference.

01 Other Events

Item 8.01 Other Events. The Investor Presentation includes the following operating update for the two months ended May 31, 2024. Same Store Facilities Operating Update (a) Two Months Ended May 31, 2024 2023 Change (Amounts in thousands, except for per square foot amounts) Tenants moving in during the period: Average annual contract rent per square foot (b) $ 14.05 $ 16.65 (15.6)% Square footage 21,093 20,953 0.7% Contract rents gained from move-ins $ 49,393 $ 58,145 (15.1)% Tenants moving out during the period: Average annual contract rent per square foot (b) $ 20.77 $ 21.08 (1.5)% Square footage 19,486 20,136 (3.2)% Contract rents lost from move-outs $ 67,454 $ 70,744 (4.7)% At May 31, Square foot occupancy 92.8% 92.9% (0.1)% Annual contract rent per occupied square foot (b) $ 22.64 $ 22.89 (1.1)% Please see "Analysis of Same Store Revenue" under "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Company's Quarterly Report on Form 10-Q for the period ended March 31, 2024 for further information with respect to the various factors that affect the Company's revenues. (a) The Same Store Facilities consist of 2,507 facilities (170.0 million net rentable square feet) that have been owned and operated on a stabilized basis since January 1, 2022. (b) Annual contract rent represents the agreed upon monthly rate that is paid by the Company's tenants in place at the time of measurement. Contract rates are initially set in the lease agreement upon move-in and the Company adjusts them from time to time with notice. Contract rent excludes other fees that are charged on a per-item basis, such as late charges and administrative fees, does not reflect the impact of promotional discounts, and does not reflect the impact of rents that are written off as uncollectible.

Forward-Looking Statements

Forward-Looking Statements This Current Report on Form 8-K, including the sections of the Company's Quarterly Report on Form 10-Q for the period ended March 31, 2024 filed with the Securities and Exchange Commission (the "SEC") on April 30, 2024 that are referenced herein, contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements in this Form 8-K, other than statements of historical fact, are forward-looking statements, which may be identified by the use of the words "outlook," "guidance," "expects," "believes," "anticipates," "should," "estimates," and similar expressions. These forward-looking statements involve known and unknown risks and uncertainties, which may cause actual events to be materially different from those expressed or implied in the forward-looking statements. Factors and risks that may impact future results and performance include, but are not limited to, those described in Part 1, Item 1A, "Risk Factors" in the Company's Annual Report on Form 10-K for the period ended December 31, 2023 filed with the SEC on February 20, 2024 and in the Company's other filings with the SEC.

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. PUBLIC STORAGE By: /s/ H. Thomas Boyle Date: June 3, 2024 H. Thomas Boyle Senior Vice President, Chief Financial and Investment Officer

View Full Filing

View this 8-K filing on SEC EDGAR