Public Storage (NYSE: PSA), the leading owner, acquirer, developer, and operator of self-storage properties, stock rose 1.70% (As on Dec 15, 11:20:07 AM UTC-4, Source: Google Finance) after the Citigroup upgraded the shares to Buy from Neutral and raised the price target to $400 from $353. Meanwhile, the company has recently closed on the acquisition of All Storage, a high-quality self-storage portfolio, for $1.5 billion. The deal has added 56 self-storage properties (7.5 million net rentable square feet) primarily located in the growing Dallas-Fort Worth market. The 52 properties in Dallas-Fort Worth add prominent locations in new, high-growth submarkets in addition to complementary locations in Public Storage’s existing submarkets. With the addition of the portfolio and additional properties recently closed or under contract, the Company’s Dallas-Fort Worth presence is unmatched in coverage and quality, with nearly 200 locations and 17 million net rentable square feet. Public Storage funded the acquisition by utilizing its growth-oriented balance sheet to issue $1.75 billion of senior unsecured notes and quickly closed the transaction in a well-coordinated effort with the All Storage team. The Company expects the transaction will be immediately accretive to FFO per share with accretion accelerating through stabilization. The acquisition reflects Public Storage’s continued execution of its opportunistic growth strategy. Since the start of 2019, the Company has expanded its portfolio by 36 million net rentable square feet, or 22%, through $7.1 billion of acquisitions, development, and redevelopment, including properties under contract. The Company has significantly accelerated growth with $5.1 billion of acquisitions expected to close during 2021. Recent acquisition and development properties in the Company’s non-same store pool now account for more than 25% of the total portfolio, providing significant growth for Public Storage and its stakeholders as the properties lease up over the next few years.

On the other hand, during the three months ended September 30, 2021, the company opened one newly developed facility and various expansion projects (0.7 million net rentable square feet – 0.4 million in Florida, 0.2 million in California and 0.1 million in Texas) costing $85.5 million. During the nine months ended September 30, 2021, the company opened four newly developed facilities and various expansion projects (1.2 million net rentable square feet – 0.6 million in Florida, 0.2 million each in California and Virginia and 0.1 million each in Colorado and Texas) costing $171.1 million. At September 30, 2021, the company had various facilities in development (1.7 million net rentable square feet) estimated to cost $272.8 million and various expansion projects (2.9 million net rentable square feet) estimated to cost $457.8 million.