Sovran Self Storage Acquires Assets
Sovran Self Storage, Inc. (SSS), a real estate investment trust (:REIT), has recently acquired nine self storage facilities for $54.7 million. The transaction was funded through the proceeds from the company’s equity program, borrowings from its line of credit, and operating cash flow.
The properties span a total of 770,000 square feet of net rentable space. Of the nine properties, four are located in Atlanta, Georgia; three in Jacksonville, Florida; one in Raleigh, North Carolina; and one in Chicago, Illinois. The company already has a presence in each of these markets. Sovran intends to rebrand the properties under the trade name Uncle Bob’s Self Storage
Earlier in the second quarter of 2012, Sovran acquired four premium self storage facilities. Subsequent to the end of the quarter, the company also sold five non-strategic properties.
With these portfolio repositioning initiatives, Sovran aims to divest non-core assets and target high-quality assets in lucrative markets with better growth opportunities. The strategic moves are intended to improve the overall quality of its portfolio.
Headquartered in Buffalo, New York, Sovran engages in the business of acquisition and management of self-storage facilities. The company’s self-storage properties offer storage space to residential and commercial users, besides outside storage for automobiles, recreational vehicles, and boats. Presently, the company operates 443 self storage facilities in 25 states.
Sovran currently retains a Zacks #3 Rank, which translates into a short-term Hold rating. We also have a long-term Neutral recommendation on the stock. One of its competitors, Public Storage (PSA) holds a Zacks #3 Rank.
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