What is going on:
Public Storage, whose share price decreased by 2.26%, has put forward an unsolicited offer of $11 billion for real estate investment trust Life Storage Inc., escalating its bid to purchase its smaller counterpart following the refusal of its initial proposal.
In a letter to Life Storage’s management, Public Storage expressed its all-stock offer of roughly $129 per share, as earlier reported by The Wall Street Journal.
Why it’s important:
Public Storage, the largest operator of self-storage in the U.S., claimed to possess roughly 9% of total square footage in the U.S. as of Dec. 31, 2021.
By consolidating the storage market, the top five operators would own around 19% of the space, leaving the rest in the hands of regional and local operators.
How it’ll impact the future:
As ecommerce sales expand from companies like Amazon, so does overall accumulation, meaning demand for storage will continue to grow alongside of consumer spending.