Extra Space Storage Inc. (EXR), a real estate investment trust (REIT), has recently completed a public offering of 6.0 million shares of its common stock to enhance its liquidity. This includes 780,000 shares sold to the underwriters. Citigroup part of Citigroup, Inc (C) acted as the sole book-running manager for the offering.
Extra Space intends to use the net proceeds from the offering to fund acquisition of 28 properties, to repay a portion of the outstanding debt under its secured lines of credit and for other general corporate and working capital purposes.
As of September 30, 2012, the company’s fixed-rate debt to total debt was 74.2%. During the third quarter 2012, Extra Space obtained $149.1 million in secured financing. It consisted of four loans with a weighted average interest rate of 2.9%. At quarter-end, cash and cash equivalents stood at $43.6 million.
Headquartered in Salt Lake City, Utah, Extra Space is engaged in property management and development activities that include acquiring, management, development and sales, as well as the rental of self-storage facilities. The company owns and operates 910 self-storage properties in 34 states, Washington, D.C. and Puerto Rico. The company's properties comprise approximately 610,000 units totalling approximately 66.7 million square feet of rentable space.
Extra Space currently retains a Zacks #1 Rank, which translates into a short-term Strong Buy rating. We have a long-term Neutral recommendation on the stock. One of its competitors, Public Storage (PSA) holds a Zacks #3 Rank, which translates into a short term Hold rating.