Brief: Extra Space Storage & Life Storage Combine To Form The Preeminent Storage Operator

Life Storage

03/04/2023 11:30

April 3 (Reuters) - Extra Space Storage Inc  EXR.N :
    * EXTRA SPACE STORAGE & LIFE STORAGE COMBINE TO FORM THE
PREEMINENT STORAGE OPERATOR
    * EXTRA SPACE STORAGE INC - PROPOSED DEAL FOR APPROXIMATELY
$145.82 PER SHARE
    * EXTRA SPACE STORAGE INC - UNDER TERMS OF AGREEMENT, LIFE
STORAGE
SHAREHOLDERS WILL RECEIVE 0.8950 OF AN EXTRA SPACE SHARE FOR
EACH LIFE STORAGE SHARE THEY OWN
    * EXTRA SPACE STORAGE - AT CLOSING, CO AND LIFE STORAGE
SHAREHOLDERS ARE EXPECTED TO OWN APPROXIMATELY 65% AND 35% OF
COMBINED COMPANY, RESPECTIVELY
    * EXTRA SPACE STORAGE INC - RESPECTIVE BOARDS OF DIRECTORS
OF BOTH
EXTRA SPACE AND LIFE STORAGE HAVE UNANIMOUSLY APPROVED
TRANSACTION
    * EXTRA SPACE STORAGE INC - COMBINED COMPANY IS EXPECTED TO
HAVE A
PRO FORMA EQUITY MARKET CAPITALIZATION OF APPROXIMATELY $36
BILLION
    * EXTRA SPACE STORAGE INC - COMBINED COMPANY IS EXPECTED TO
HAVE
TOTAL ENTERPRISE VALUE OF APPROXIMATELY $47 BILLION
    * EXTRA SPACE STORAGE - DEAL TO INCREASE SIZE OF CO'S
PORTFOLIO BY
MORE THAN 50% BY STORE COUNT WITH ADDITION OF LIFE STORAGE'S
1,198 PROPERTIES
    * EXTRA SPACE STORAGE INC - EXTRA SPACE WILL RETAIN ITS NAME
AND
CONTINUE TO TRADE ON NYSE UNDER TICKER "EXR"
    * EXTRA SPACE STORAGE - DEAL EXPECTED TO GENERATE AT LEAST
$100
MILLION IN ANNUAL RUN-RATE OPERATING SYNERGIES FROM G&A &
PROPERTY OPERATING EXPENSE SAVINGS
    * EXTRA SPACE STORAGE INC - DEAL EXPECTED TO BE ACCRETIVE TO
CORE
FFO PER SHARE WITHIN FIRST YEAR OF CLOSING AND BE LEVERAGE
NEUTRAL
    * EXTRA SPACE STORAGE INC - TRANSACTION IS EXPECTED TO
GENERATE AT
LEAST $100 MILLION IN ANNUAL RUN-RATE OPERATING SYNERGIES
    * EXTRA SPACE STORAGE INC - KENNETH W. WOOLLEY WILL REMAIN
CHAIRMAN OF BOARD AND JOSEPH D. MARGOLIS WILL REMAIN AS CEO AND
DIRECTOR
    * EXTRA SPACE STORAGE INC - EXTRA SPACE BOARD WILL BE
EXPANDED
FROM 10 TO 12 DIRECTORS
    * EXTRA SPACE STORAGE INC - TRANSACTION IS CURRENTLY
EXPECTED TO
CLOSE IN SECOND HALF
    * EXTRA SPACE STORAGE INC - TRANSACTION IS EXPECTED TO BE
ACCRETIVE TO CORE FFO PER SHARE WITHIN FIRST YEAR OF CLOSING AND
BE LEVERAGE NEUTRAL
    * EXTRA SPACE STORAGE INC - EXTRA SPACE BOARD WILL CONSIST
OF NINE
DIRECTORS FROM EXTRA SPACE'S BOARD AND THREE DIRECTORS FROM LIFE
STORAGE
    * EXTRA SPACE STORAGE INC - WILL ACQUIRE LIFE STORAGE IN AN
ALL-STOCK TRANSACTION

Source text for Eikon:  ID:nPnSS3G3a 
Further company coverage:  EXR.N 

 ((reuters.briefs@thomsonreuters.com;))