Extra Space, Life Storage to Merge, Create $47B Self Storage Giant
The combined company will have more than 3,500 locations serving upward of 2 million customers.
1110 Brawley School Road in Mooresville, N.C., which operates under the Extra Space brand. Image courtesy of CBRE
In a deal that will create the largest self storage operator in the U.S., Extra Space Storage will acquire Life Storage, the REITs announced on April 3. The deal will create a company with an estimated enterprise value of $47 billion and a pro forma equity market value of $36 billion, the companies said.
The combined company will have more than 3,500 locations serving upward of two million customers and will retain the Extra Space name. Extra Space will expand its store count by more than 50 percent with the addition of Life Storage’s portfolio: 1,198 properties that consist of 758 wholly owned locations, 141 owned by joint ventures and 299 third-party-managed stores. Buffalo, N.Y.-based Life Storage serves more than 675,000 customers in 37 states and Washington, D.C.
The deal is expected to close in the second half of 2023.
Joseph Margolis, the president & CEO of Extra Space, will serve as CEO & director of the combined company. The Extra Space board of directors will comprise nine members from Extra Space and three from Life Storage. Life Storage shareholders will receive $145.82 per share, equivalent to 0.8950 of an Extra Space share for each Life Storage share they own, based on Extra Space’s closing share price on March 31.
Salt Lake City-based Extra Space Storage’s portfolio comprised 176.1 million rentable square feet and 1.6 million units across 2,338 properties as of last Dec. 31. The REIT is headquartered in Salt Lake City.
Key advisers to Extra Space include Citigroup Global Markets Inc., lead financial advisor, and Latham & Watkins LLP, legal advisor to Extra Space. J.P. Morgan Securities LLC, is serving as an additional financial advisor to Extra Space.
Life Storage’s financial advisers include Wells Fargo Securities and BofA Securities. The company’s legal advisers are Hogan Lovells US LLP and Quinn Emanuel Urquhart & Sullivan LLP.
