GLENDALE, Calif.--(BUSINESS WIRE)--Public Storage (NYSE:PSA), the leading owner, developer, and operator of self-storage properties, has closed the first phase of its previously announced acquisition of the newly built, high-quality Beyond Self Storage portfolio.
In total, the portfolio comprises 36 properties (3.6 million net rentable square feet), which Public Storage has agreed to acquire for $528 million. The first phase includes 24 existing properties (2.3 million net rentable square feet) built since 2016, with an average occupancy of approximately 35%. The second phase includes 12 properties (1.3 million net rentable square feet) in various stages of development that the Company will acquire upon completion in 2021.
The transaction reflects Public Storage’s continued execution of its opportunistic growth strategy. Capitalizing on its industry-leading brand, operating scale, and fortress balance sheet, the Company has been actively expanding its portfolio through acquisitions ranging from raw land to stabilized operating properties. Since the start of 2019, Public Storage has expanded its portfolio by approximately 13.9 million net rentable square feet, or 9%, through $1.9 billion of acquisitions, development, and redevelopment, including properties currently under contract.
“We are pleased to welcome the Beyond Self Storage customers to Public Storage’s industry-leading brand and platform,” said Joe Russell, Public Storage Chief Executive Officer. “The addition of these high-quality assets enhances our strong and diversified portfolio, and we are committed to further building on our industry leadership through organic and external growth. Public Storage is uniquely positioned for further growth through acquisitions, development, redevelopment, and third-party management, and we will continue to execute our strategy to deliver long-term value for our shareholders, customers, and employees.”
“We thank the Beyond Self Storage team for their partnership and integrity, and compliment them on the quality of the portfolio,” said Mike McGowan, Public Storage Senior Vice President of Acquisitions. “Looking ahead, we continue to see a wide range of opportunities to acquire and develop properties in desirable markets, enabling us to accelerate Public Storage’s broader growth initiatives.”
Public Storage, a member of the S&P 500 and FT Global 500, is a REIT that primarily acquires, develops, owns and operates self-storage facilities. At September 30, 2020, we had: (i) interests in 2,504 self-storage facilities located in 38 states with approximately 171 million net rentable square feet in the United States, (ii) an approximate 35% common equity interest in Shurgard Self Storage SA (Euronext Brussels:SHUR) which owned 239 self-storage facilities located in seven Western European nations with approximately 13 million net rentable square feet operated under the “Shurgard” brand and (iii) an approximate 42% common equity interest in PS Business Parks, Inc. (NYSE:PSB) which owned and operated approximately 28 million rentable square feet of commercial space at September 30, 2020. Our headquarters are located in Glendale, California.
Additional information about Public Storage is available on the Company’s website at PublicStorage.com.