Skip to main content

Market Overview

A Deep Dive Into National Storage's Acquisition Of iStorage

Share:
A Deep Dive Into National Storage's Acquisition Of iStorage

Last week, National Storage Affiliates Trust (NYSE: NSA) announced the acquisition of competitor iStorage's portfolio for $630 million.

National Storage launched a joint venture with state pension fund Heitman Capital Management to secure the acquisition of 66 self-storage facilities comprising 4.5 million square feet in 12 states. iStorage currently has an 86 percent occupancy rate, with the average rent per square foot of $12.24. The largest geographic concentration of iStorage's portfolio is in Florida, with 21 facilities.

"Management is confident that it can further increase rent levels
and increase ancillary income from the portfolio," said Jefferies in a recent analyst note.

National Storage will hold a 25 percent ownership interest in iStorage, with Heitman Capital Management retaining the remaining 75 percent.

Related Link: U-Haul Of Intown Offers More Self-Storage Options To Washington, DC

Jefferies upgraded its rating on National Storage to a Buy rating and upped its price target to $24 from $22.

"Subsequent data released by NSA on the deal reinforces our view that the transaction is accretive, adds an additional growth driver, demonstrates NSA's ability to further grow its platform and could eventually lead to a unified brand," wrote Jefferies.

At time of writing, National Storage was up 3.80 percent on the day at $20.51.

Full ratings data available on Benzinga Pro.

Do you have ideas for articles/interviews you'd like to see more of on Benzinga? Please email feedback@benzinga.com with your best article ideas. One person will be randomly selected to win a $20 Amazon gift card!

Latest Ratings for NSA

DateFirmActionFromTo
Mar 2021Wells FargoMaintainsOverweight
Mar 2021Morgan StanleyMaintainsEqual-Weight
Jan 2021Evercore ISI GroupInitiates Coverage OnOutperform

View More Analyst Ratings for NSA
View the Latest Analyst Ratings

 

Related Articles (NSA)

View Comments and Join the Discussion!

Posted-In: Analyst Color Long Ideas M&A News REIT Upgrades Price Target Analyst Ratings Best of Benzinga

Latest Ratings

StockFirmActionPT
FOARaymond JamesInitiates Coverage On15.0
TZOONoble Capital MarketsUpgrades18.0
IMAXWedbushUpgrades26.0
EIGBoenning & ScattergoodUpgrades49.0
HUYA86 ResearchUpgrades22.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com