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>>> Public Storage Provides Update in Relation to Agreed Acquisition of PS Business Parks by Affiliates of Blackstone Real Estate


Business Wire

April 25, 2022


https://finance.yahoo.com/news/public-storage-provides-relation-agreed-130500530.html


GLENDALE, Calif., April 25, 2022--(BUSINESS WIRE)--Public Storage (NYSE:PSA) ("Public Storage" or the "Company") today provided certain updates as to the impact on Public Storage of the agreed acquisition by affiliates of Blackstone Real Estate ("Blackstone") of PS Business Parks, Inc. (NYSE:PSB) ("PS Business Parks"), which was announced today. Upon consummation of the transaction, Public Storage, like all holders of PS Business Parks’ common shares and units, would receive $187.50 in cash per PS Business Parks common share or unit. Public Storage holds an approximate 41% common equity interest in PS Business Parks through approximately 7.2 million common shares and 7.3 million limited partnership units.

Public Storage expects to receive approximately $2.7 billion of cash proceeds and recognize a $2.3 billion tax gain on sale upon consummation of the transaction. Public Storage expects to distribute the $2.3 billion gain to its shareholders.

Public Storage estimates annual Core Funds from Operations would be lower following the consummation of the transaction to a degree approximating its $101 million pro rata share of PS Business Park’s Core FFO in 2021, which comprised approximately 4% of Public Storage’s total Core FFO during the year.

Additional Transaction Details

The transaction is expected to close in the third quarter of 2022, subject to approval by PS Business Parks’ stockholders and other customary closing conditions. Public Storage has agreed to vote its shares of PS Business Parks common stock, which represent 25.9% of the outstanding shares, in favor of the transaction, subject to the terms of a support agreement between Public Storage, PS Business Parks and an affiliate of Blackstone.

The merger agreement also includes a "go-shop" period that will expire 30 days from today on May 25, 2022, which permits PS Business Parks and its representatives to actively solicit and consider alternative acquisition proposals to acquire PS Business Parks. PS Business Parks has the right to terminate the definitive merger agreement with Blackstone to enter into a superior proposal, subject to the payment of a termination fee and certain other terms and conditions of the definitive merger agreement, and Public Storage’s support agreement will terminate automatically upon the termination of the merger agreement.

From the date of the merger agreement through the closing of the transaction, PS Business Parks is permitted to declare and pay regular, quarterly cash distributions to holders of its common stock and to holders of its operating partnership’s units, in each case, including Public Storage, in an amount of up to $1.05 per share or unit, including a pro rata distribution in respect of any stub period.

Additional information regarding the transaction may be found in documents that PS Business Parks files with the SEC, available on the SEC’s website at sec.gov.

Company Information

Public Storage, a member of the S&P 500 and FT Global 500, is a REIT that primarily acquires, develops, owns, and operates self-storage facilities. At December 31, 2021, we had: (i) interests in 2,787 self-storage facilities located in 39 states with approximately 198 million net rentable square feet in the United States, (ii) an approximate 35% common equity interest in Shurgard Self-Storage SA (Euronext Brussels:SHUR) which owned 253 self-storage facilities located in seven Western European nations with approximately 14 million net rentable square feet operated under the "Shurgard" brand, and (iii) an approximate 41% common equity interest in PS Business Parks, Inc. (NYSE:PSB) which owned and operated approximately 28 million rentable square feet of commercial space at December 31, 2021. Our headquarters are located in Glendale, California.

Additional information about Public Storage is available on the Company’s website at PublicStorage.com.

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