Self-Storage REIT National Storage Affiliates Trust Launches IPO

Update 4/27/15 – National Storage Affiliates Trust (NSA) announced that its IPO of 20 million common shares will be priced at $13 per share. The effort could raise $260 million, which the real estate investment trust intends to use, in part, to acquire 21 self-storage properties. NSA also confirmed that underwriters will have a 30-day option to purchase up to an additional 3 million common shares.

The IPO is expected to run through the New York Stock Exchange and close on or about April 28, according to a press release.

4/15/15 – National Storage Affiliates Trust (NSA), a Maryland-based real estate investment trust (REIT) specializing in self-storage, has launched an initial public offering (IPO) of 20 million common shares at between $15 and $17 per share. The company has also granted underwriters a 30-day option to purchase up to an additional 3 million common shares. The IPO has been approved for listing on the New York Stock Exchange but is subject to official notice of issuance under the NSA ticker symbol, according to a press release.

NSA intends to use the funds to acquire 21 self-storage properties, repay debt, and pay general corporate and working-capital expenses, company officials said.

An initial report on the IPO filing with the Securities and Exchange Commission (SEC) in February said the IPO would be for $100 million, but based on the number of shares and pricing announced by NSA, the offering could raise more than $300 million.

Jefferies & Co., Morgan Stanley and Wells Fargo Securities LLC will act as joint book-running managers on the deal. KeyBanc Capital Markets Inc. will act as lead manager, while Baird, Capital One Securities Inc., RBC Capital Markets and SunTrust Robinson Humphrey will act as co-managers, according to the release.

A registration statement relating to the securities has been filed with the SEC but is not yet effective, NSA officials said.

The REIT was previously referred to as National Storage Affiliates based in Colorado. The company was formed in July 2013 by affiliated self-storage operators Northwest Self Storage, Optivest Properties and SecurCare Self Storage. It has since added Irvine, Calif.-based Guardian Storage; Addison, Texas-based Move It Self Storage and Chandler, Ariz.-based Storage Solutions as affiliated partners.

NSA is a self-administered, self-managed REIT with 225 self-storage facilities comprising 12.4 million net rentable square feet. The company is owned by its affiliate operators, who are contributing their interests in their self-storage assets over the next few years as their current mortgage debt matures. The company intends to expand its footprint to more than 245 facilities and 14 million square feet by the second quarter of 2015, according to the company website.