Sovran Self Storage, Inc. (
, a real estate investment trust (REIT), has recently acquired nine
self storage facilities for $54.7 million. The transaction was
funded through the proceeds from the company's equity
program, borrowings from its line of credit, and
operating cash flow.
PUBLIC STORAGE (PSA): Free Stock Analysis
SOVRAN SLF STOR (SSS): Free Stock Analysis
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The properties span a total of 770,000 square feet of net rentable
space. Of the nine properties, four are located in Atlanta,
Georgia; three in Jacksonville, Florida; one in Raleigh, North
Carolina; and one in Chicago, Illinois. The company already has a
presence in each of these markets. Sovran intends to rebrand the
properties under the trade name Uncle Bob's Self Storage
Earlier in the second quarter of 2012, Sovran acquired four premium
self storage facilities. Subsequent to the end of the
quarter, the company also sold five non-strategic properties.
With these portfolio repositioning initiatives, Sovran aims to
divest non-core assets and target high-quality assets in lucrative
markets with better growth opportunities. The strategic moves are
intended to improve the overall quality of its portfolio.
Headquartered in Buffalo, New York, Sovran engages in the business
of acquisition and management of self-storage facilities. The
company's self-storage properties offer storage space to
residential and commercial users, besides outside storage for
automobiles, recreational vehicles, and boats. Presently, the
company operates 443 self storage facilities in 25 states.
Sovran currently retains a Zacks #3 Rank, which translates into a
short-term Hold rating. We also have a long-term Neutral
recommendation on the stock. One of its competitors,
Public Storage (
holds a Zacks #3 Rank.