Sovran Self Storage (SSS) Acquires LifeStorage for $1.3B

Sovran Self Storage Inc. SSS, the Williamsville, NY-based self-storage real estate investment trust ("REIT") acquired LifeStorage, LP, the Buffalo, NY-based self storage operator for around $1.3 billion. Addition of LifeStorage to its portfolio is likely to bolster Sovran Self Storage's position in its existing markets.

The acquisition was mainly funded with the proceeds generated from the public offering of 6.9 million of common shares that the company completed in May 2016 and the sale of $600 million notes with an interest rate of 3.5%, completed in Jun 2016.

Sovran Self Storage is engaged in acquiring, owning and managing self-storage properties and it operates around 650 self storage facilities, spread over 29 states. This acquisition will add 25 new facilities in the Chicago market and 19 facilities in the major Texas markets. This has also paved the way for the company's entry into Las Vegas with 17 facilities, and Northern California with 10 facilities. The deal has not only expanded Sovran Self Storage's scale in these markets but also created a platform to carry out further acquisitions to drive its growth momentum.

Currently, Sovran Self Storage has a Zacks Rank #3 (Hold). Investors interested in the REIT sector can consider some better-ranked stocks like Equity Commonwealth EQC, CoreSite Realty Corporation COR and W. P. Carey Inc. WPC. All these stocks sport a Zacks Rank #1 (Strong Buy).

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