Public Storage Snaps Up ezStorage For $1.8B

Developer and operator of self-storage facilities Public Storage has acquired ezStorage in the United States for $1.8 billion. The ezStorage portfolio of storage properties consists of 48 properties with a total area of 4.2 million net rentable square feet located in submarkets across Washington DC, Virginia, and Maryland.

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Public Storage’s (PSA) CEO Joe Russell said, “We are pleased to welcome the ezStorage customers to Public Storage’s industry-leading brand and platform. The acquisition is a direct reflection of Public Storage’s unique positioning for growth through acquisitions, development, redevelopment, and third-party management.”

PSA’s team will develop one under-construction property and also expand eight additional properties, with this resulting in a 10% increase in square footage through 2023. In addition to PSA’s existing storage property portfolio, its Mid-Atlantic portfolio will have 163 properties and 11.3 million net rentable square feet.

Public Storage intends to fund the acquisition with unsecured debt and the deal is expected to be immediately accretive to funds from operations (FFO). Additionally, the acquisition is expected to close in May of this year. (See Public Storage stock analysis on TipRanks)

PSA has expanded its property portfolio by 13% through acquisitions worth $4.1 billion since 2019.

Following the acquisition announcement, Truist Financial analyst Ki Bin Kim raised the price target from $262 to $269 and reiterated a Buy rating on the stock.

Kim is “moderately positive” about the acquisition and believes that this deal is a “clear signal” that PSA could go for more acquisitions now, compared to previous years.

Turning to Wall Street, the consensus rating for PSA is a Moderate Buy, based on 2 Buys and 4 Holds. The average analyst price target of $259.80 implies a 2.7% downside from current levels.