Mar 22, 2023
Extra Space Storage Weighs Offer for Rival Life Storage
(Bloomberg) -- Extra Space Storage Inc. is weighing making an offer for Life Storage Inc., the real estate company that rejected a takeover proposal from Public Storage earlier this year, according to people familiar with the matter.
Extra Space is working with an adviser on a potential bid, the people said asking not to be identified because the matter is private. Its plans aren’t final and could still change.
Representatives for Life Storage and Extra Space declined to comment.
Self-storage real estate benefited during the pandemic because people wanted more space while working from home. But demand and pricing power have begun to soften with a growing pipeline of new supply from developers.
Life Storage, which operates more than 1,100 self-storage properties, rejected an $11 billion bid from Public Storage in February, saying the offer “significantly” undervalued the company.
Life Storage rose 1.1% to $125.21 at 12:25 p.m. in New York trading Wednesday, giving it a market value of about $10.7 billion. Extra Space fell 1.6% to $156.07, for a market value of about $21 billion.
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