Extra Space Storage, Life Storage Agree to Merger

Industry leaders Extra Space Storage Inc. and Life Storage Inc. have reached an agreement to merge, creating the largest self storage REIT with over 3,500 locations.
 
The boards of directors of both companies have unanimously approved the transaction. Extra Space will retain its name and continue to trade on the NYSE under the ticker EXR. Ken Woolley will remain chairman of the board, and Joe Margolis will remain as CEO and director.

The Extra Space board will expand from 10 to 12 directors, with nine from Extra Space's board and three from Life Storage, including CEO Joseph Saffire. The transaction is currently expected to close in the second half of 2023, subject to the approval of Extra Space and Life Storage shareholders.
 
“We are impressed with the management team's strategic repositioning of the Life Storage portfolio over the last seven years, creating a highly diversified portfolio of quality storage assets in strong growth markets," said Extra Space CEO Joe Margolis. "The business combination is highly synergistic, creating an even stronger combined company that will drive long-term, outsized operational and external growth opportunities through scale efficiencies, higher retained cash flow, data analytics, third-party management relationships and more.”
 
Extra Space’s portfolio will grow by more than 50% by store count, adding Life Storage’s 1,198 properties — including 758 wholly-owned, 141 joint venture, and 299 third-party managed.
 
Earlier, Life Storage rejected an unsolicited bid from Public Storage for $129 per share. Life Storage stock closed Friday at $131.09, giving the company a market value of $11.2 billion.  
 
“Following a deliberate and comprehensive review, the Life Storage Board unanimously concluded that the pending transaction with Extra Space maximizes value today and is the transaction most likely to deliver superior long-term returns for our shareholders,” Saffire said. “Together with Extra Space, we expect to accelerate growth while maintaining our customer-centric focus and commitment to continued innovation. We are also pleased that Life Storage shareholders will participate in the tremendous upside of the combined Extra Space and Life Storage platform through a significant ownership stake in the combined company."