Sovran Self Storage Inc. (SSS) recently announced the acquisition of 22 Texas self storage for $111.0 million. The acquired property spans approximately 1.3 million square feet of net rentable storage space and will be operational under the company’s trade name of Uncle Bob’s Self Storage. The acquisition was funded by proceeds generated from the company’s line of credit and cash flow from operations.
In a separate transaction, the company also announced that it has acquired a storage facility in Atlanta Georgia, for $9.5 million. The facility encompasses 69,000 square feet of rentable space, and is the 16th Uncle Bob’s location in the Atlanta market.
This transaction is a strategic move on the company’s part to expand its presence in the Texas market and the addition of Class A properties will significantly boost the company’s portfolio.
Headquartered in Buffalo, New York, Sovran Self Storage operates as a real estate investment trust (REIT) and engages in the business of acquiring and managing self-storage facilities. The company owns or manages 431 self storage facilities in 25 states.The company’s self-storage properties offer storage space to residential and commercial users, as well as offer outside storage for automobiles, recreational vehicles, and boats.
Sovran Self Storage currently retains a Zacks #3 Rank, which translates into a short-term Hold rating. We are also maintaining our long-term Neutral recommendation on the stock. One of its competitors, Host Hotels & Resorts Inc. (HST) also holds a Zacks #3 Rank.
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