Sovran Self Storage Inc. SSS, the Williamsville, NY-based equity real estate investment trust (“REIT”), announced the closure of the public offering comprising 1.38 million common shares. Priced at $90.40 per share, the offering reaped a gross proceed of $125 million.
After adjustment for the commissions and expenses associated with the offering as well as underwriting-related discounts, Sovran Self Storage received around $119.6 million. The company intends to use the funds for repayment of outstanding debt pertaining to an unsecured line of credit.
Sovran Self Storage is engaged in acquiring and managing self storage facilities. Notably, on Feb 18, the company reported fourth-quarter 2014 adjusted funds from operations (“FFO”) of $1.13 per share, a penny ahead of the Zacks Consensus Estimate and up 9 cents year over year.
In fourth-quarter 2014, Sovran Self Storage issued 250,000 common shares via at the market (“ATM”) program at an average price of $84.69 per share, for net proceed of $20.9 million. The proceeds were used for purchasing properties and repaying the company’s line of credit. The latest public offering too is expected to increase the financial flexibility of the company.
Sovran Self Storage currently sports a Zacks Rank #1 (Strong Buy).
Investors interested in equity REITs may also consider stocks like CareTrust REIT, Inc. CTRE, Gladstone Land Corporation LAND and Sotherly Hotels Inc. SOHO. All these stocks hold the same Zacks Rank as Sovran Self Storage.
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