Public Storage (PSA) announces $1.8 billion acquisition of ezStorage portfolio.

Public Storage (PSA) announced today that will acquire a portfolio of 48 self storage properties located in Virginia, Maryland, and Washington, DC for $1.8 billion in cash.  PSA said that the portfolio is being purchased at a 3.6% nominal cap rate based on an 86% occupancy rate, but is expected to yield between 4.0% and 4.4% in year two under Public Storage ownership.

The ezStorage portfolio comprises 4.2 million rentable square feet and results in an approximate 60% increase to PSA's existing Mid-Atlantic property base.  The company described the portfolio as "one of the highest quality portfolios in the U.S."  PSA also said that it intends to finance the acquisition through unsecured debt, resulting in immediate earnings accretion.  Inclusive of preferred stock, pro forma leverage is expected to be approximately 4.1x.

Established in 1972, Public Storage is the largest owner/operator of self-storage properties in the U.S. with 2,548 properties in 38 states. PSA has a total market capitalization of approximately $47 billion and is a member of the S&P 500 and FT Global 500 equity indexes.