Public Storage Completes Acquisition of National Storage Affiliates Trust
Public Storage (PSA) said Wednesday that it has completed its acquisition of National Storage Affiliates Trust (NSA), with shareholders of National Storage entitled to receive 0.14 of a Public Storage share for each National Storage share.Public Storage said it continues to expect the acquisition to be accretive to funds from operations per share within year one following closing. Additionally, accretion is slated to increase to $0.35 to $0.50 per share upon realization of about $110 to $130 million in run-rate synergies over three to four years, according to the company.With the close of the acquisition, Public Storage and certain legacy limited partners in NSA's operating partnership have formed a joint venture consisting of 313 properties, previously owned by NSA, the company said.The legacy limited partners will own about 80% of the joint venture with Public Storage owning the remaining stake in the entity. Public Storage will exclusively manage the joint venture portfolio and earn income from customary property management, asset management, and tenant reinsurance, according to the company.As part of the closing, the joint venture obtained about $2 billion in secured mortgage financing from Goldman Sachs Bank USA and Wells Fargo Bank, as well as $237 million in mezzanine financing from Public Storage, the company said.Price: $310.89, Change: $+1.14, Percent Change: +0.37%
