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.