LADERA RANCH, CA—Extra Space Storage Inc., a leading owner and operator of self-storage properties, has completed its acquisition of SmartStop Self Storage, Inc. a public, non-traded REIT.

As a result of the SmartStop acquisition, Extra Space acquired 122 stores and assumed the property management of 43 stores previously managed by SmartStop.
"We are excited about the merger of these two great companies and the expansion of our national portfolio and operating platform," said Spencer Kirk, CEO of Extra Space Storage. "The additional scale increases our presence in existing markets, and should enhance our ability to source customers online."

SmartStop stockholders approved the transaction at their shareholder meeting held September 29.

Stockholders received $13.75 per share in cash which represents a total purchase price of approximately $1.4 billion. Extra Space paid approximately $1.31 billion, and the remaining $90 million came from the sale of certain assets by SmartStop immediately prior to closing.

“We are excited that our stockholders have been rewarded for believing in our vision to create a high quality self storage company that blended the right balance of stabilized properties for cash flow and lease-up opportunities for growth,” said Michael Schwartz, founder of SmartStop. “The $13.75 per share price represents a premium of approximately 27% over SmartStop's most recently announced net asset value, and assuming the reinvestment of all prior dividends, results in an average annual return on investment in excess of 15.3%.”

SmartStop, formerly known as Strategic Storage Trust, Inc., was initially formed in 2007 as a public, non-traded real estate investment trust with the objective of providing regular income to its investors with the potential for growth through appreciation of its assets. SmartStop raised approximately $568 million of equity capital from investors, and during its approximately 8-year operating period, SmartStop consistently provided investors with cash distributions at an annual rate equal to 7% of investment (based on a $10 per share offering price). At the closing of the merger, SmartStop achieved its final objective, a successful liquidity event for its stockholders.
Latham & Watkins LLP; Holland & Hart LLP; Sive, Paget & Riesel P.C. and Jones Waldo Holbrook & McDonough, PC acted as Extra Space Storage's outside legal counsel in connection with this transaction.
Extra Space Storage Inc., headquartered in Salt Lake City, is a fully-integrated, self-administered and self-managed real estate investment trust. As of October 1, Extra Space owned and/or operated 1,335 self-storage properties in 36 states, Washington, D.C. and Puerto Rico.