Sovran Self Storage Announces $398 Mln In Acquired And Contracted Acquisitions

(RTTNews) - Sovran Self Storage Inc. (SSS) said that it had entered into contracts to acquire 25 self storage facilities in eight different states for a total purchase price of approximately $371 million. In addition, the Company also announced the acquisition of five facilities during the 4th quarter of 2015 and January 2016 for a purchase price of approximately $27 million, bringing the total acquired and under contract to 30 self storage facilities.

The newly announced facilities include five single store acquisitions and four portfolio acquisitions; one comprised of 13 stores, and three comprised of four properties each.

In aggregate, the newly announced transactions include 21 stabilized properties in the Company's existing markets of Boston/SE New Hampshire (6), Central/Southern Florida (5), Connecticut (2), Dallas (3), Denver (1), New York City metro area (2) and Philadelphia (2). A recently developed facility in Phoenix, AZ, another market in which the Company has a presence, also will be acquired.

The company has also executed contracts to acquire eight properties in the Los Angeles, CA metro area, a new market for the Company. Seven of these properties are stabilized and account for approximately $167 million of the overall transaction costs, while the eighth property is a newly developed store in North Los Angeles County being acquired for $18.6 million. Collectively, the properties total about 2.3 million square feet of rentable storage space. The seven stabilized Los Angeles stores account for 749,042 sq. ft., and the newly opened Los Angeles store has 79,835 sq. ft.

The company believes that the acquisitions of the stabilized properties will be accretive on a leverage neutral basis to funds from operations in 2016.

The company has taken, or anticipates taking title to all 30 of the stores at various dates between late December 2015 and April 2016.

Separately, Sovran Self Storage announced that it has commenced a public offering of 2.30 million shares of common stock. In connection with the offering, the Company has also granted the underwriters a 30-day option to purchase up to 345,000 additional shares of common stock.

Net proceeds from the offering will be used to fund property acquisitions and general corporate purposes.