AUS
NZ
UK
CA
USA
IND
Summary
- Elliott Management Corporation has reportedly purchased a sizable stake in Public Storage
- Public Storage shares last closed at 220.06, up 1.61 per cent from the previous closing price of 216.58 on Friday
New York-based investment management company Elliott Management Corporation has reportedly bought a stake in the California-headquartered self-storage firm Public Storage (NYSE:PSA). In recent weeks, Public Storage and Elliott Associates have had constructive discussions, the former said in a statement without giving further details.
Elliott Management has bought a sizable stake in Public Storage and has been trying to nominate some of its directors on the board of self-storage firm, Bloomberg reported. Subsequent to the deliberations, Elliott Management has submitted the nomination of six directors to be placed on the Board of Trustees of Public Storage, before the nomination cut-off date of December 12.
Public Storage has informed about the appointment of three new Board members -- Shankh Mitra, David Neithercut and Paul Williams. The new members will be inducted in the board with effect from 1 January.
Three existing Board members -- Uri P. Harkham, B. Wayne Hughes, Jr., and Daniel C. Staton -- will be retiring on 31 December, the company said in the same statement released on 13 December.
The markets are yet to witness the first reaction of the apparent development. Last week, Public Storage shares closed 1.61 per cent higher at $220.06 after extending the gains in the afternoon deals.
Public Storage (11 December)
(Source: EODHD/Others, Thomson Reuters)
The last one-and-half months were quite unfavourable for the shares of Public Storage as compared to the benchmark indices Dow Jones Industrial Average and S&P 500. The stock of Public Storage has lost nearly 4 per cent in the past 45 days, whereas the one-month percentage loss stands at 5.83 per cent. During this period, both S&P 500 and Dow Industrials have advanced 12 to 14 per cent in the last one-and-half month stretch.
Last week, Public Storage completed the acquisition of a newly built self-storage portfolio comprising as many as 36 properties for a cumulative sum of $528 million. A total of 36 properties include a net rentable area of 3.6 million square feet and is divided into two phases. The first phase contains 24 existing properties, while the second phase has 12 units that are, at the moment, in various stages of development and will be acquired in 2021 upon completion.
