The leading real estate investment trust (REIT) operating
self-storage facilities -
) is borrowing $700 million in a one-year term loan from Wells
Fargo Bank of
Wells Fargo & Company
). The move comes as the company gears up to capitalize on the
attractive rates on a short-term bank loan.
Public Storage plans to use the fund for financing its
acquisition and development efforts and meeting its other
corporate needs. Notably, the company's acquisition initiatives
helped it carve a niche in the U.S and the European market.
Therefore, this loan for supporting its growth initiatives bode
well going forward.
Notably, Public Storage has already purchased 44 storage
facilities (2.8 million net rentable square feet) for $324
million in October. At the end of October, the company was under
contract to buy another 44 facilities (2.7 million square feet)
for $430 million. These acquisitions are expected to close in Dec
These 88 facilities help extend the company's property portfolio
with assets in California, Colorado, Florida, Georgia, North
Carolina, South Carolina, Texas and Virginia. Moreover, as of Sep
30, 2013, Public Storage had development and expansion projects
in its pipeline worth an estimated cost of $188 million ($46
million already incurred at the end of the third quarter).
Furthermore, the 'Public Storage' brand is widely recognized in
the self-storage industry. Backed by this, we believe the company
is well poised to maintain its growth curve going forward.
Public Storage also owns a 43% common equity interest in
PS Business Parks Inc.
), which owns and operates commercial space, primarily flex,
multi-tenant office and industrial space.
Public Storage currently has a Zacks Rank #2 (Buy). A number of
other REITs that are also performing well and deserve a look
Getty Realty Corp.
National Health Investors Inc.
), both carrying a Zacks Rank #1 (Strong Buy).
GETTY REALTY CP (GTY): Free Stock Analysis
NATL HEALTH INV (NHI): Free Stock Analysis
PUBLIC STORAGE (PSA): Free Stock Analysis
PS BUSINESS PKS (PSB): Free Stock Analysis
WELLS FARGO-NEW (WFC): Free Stock Analysis
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