Press Release

Extra Space Storage (EXR) to Acquire SmartStop Self Storage in $1.4B Deal

Extra Space Storage (NYSE: EXR) has entered into a definitive agreement to acquire SmartStop Self Storage, Inc. (SmartStop®), a public, non-traded real estate investment trust (REIT). SmartStop® stockholders will receive $13.75 per share in cash which represents a total purchase price of $1.4 billion. Extra Space will pay $1.29 billion, and the remaining $120 million will come from the sale of certain assets by SmartStop® at or prior to the closing.

SmartStop®, based in Ladera Ranch, California, is currently the seventh largest owner and operator of self-storage facilities in the United States, operating 169 self-storage properties in 21 states, and in Toronto, Canada.

Upon completion of the acquisition, Extra Space will own 121 SmartStop stores and will assume the property management of 43 third-party managed stores, all located in the United States. Certain assets of SmartStop® will be sold for approximately $120 million, as adjusted for certain construction costs, at or prior to the closing of the transaction, including one store in California, beneficial interests in two stores in Alabama and five stores in Toronto, Canada. The stores in Alabama and California will be managed by Extra Space following the transaction.

“We are delighted to announce this acquisition. SmartStop® has built a high-quality national portfolio, and these 164 stores will enhance and complement our physical footprint and digital presence,” commented Spencer Kirk, Chief Executive Officer of Extra Space Storage. “We will be welcoming many SmartStop® associates to the Extra Space team, and we look forward to sharing best practices with our new team members.”

The acquisition is expected to be accretive to funds from operations as adjusted (AFFO). Once completed, the acquisition will increase Extra Space’s presence across the United States. The acquisition is subject to the approval of SmartStop’s stockholders and other customary closing conditions. Extra Space management expects the acquisition to close in the latter half of 2015.

Summary of Strategic Benefits:

  • Extra Space will gain additional physical and digital scale in markets where it already has a strong operating presence.
  • The portfolio includes well-located, high-quality physical facilities.
  • The acquired sites provide opportunities for occupancy and rate increases and other income opportunities.
  • This transaction establishes a new property management relationship with Strategic Storage Trust II, Inc. and Strategic Storage Growth Trust, Inc., entities affiliated with SmartStop.

Transaction Advisors

Latham & Watkins LLP; Holland & Hart LLP; Sive, Paget & Riesel P.C. and Jones Waldo Holbrook & McDonough, PC acted as Extra Space Storage’s outside legal counsel in connection with this transaction.

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SmartStop Asset Management, LLC

10 Terrace Rd.
Ladera Ranch, CA 92694

T: (949) 429.6600
F: (949) 429.6606