- $260M raised in the institutional component
- Retail raise to commence 15 June and end 24 June
- Securities for institutional offer to begin trading 23 June
In light of a strong market and 27 acquisitions, totalling $373 million, the company started the equity raise in order to both fund the acquisitions and reduce company gearing.
The 27 acquisitions were across 24 storage centres and three development sites.
NSR said it “has 16 active projects, with 6 projects under construction as at 30 April 2021. The development pipeline is forecast to add aggregate NLA of approximately 110,000 sqm.”
“Given the ongoing compression in yields across the self-storage sector, and our strong growth in rate, REVPAM and occupancy, NSR believes it is an opportune time to expedite the pace of its development, expansion and centre revitalisation programs.”
Andrew Catsoulis, National Storage Managing Director
The reduced gearing rate is approximately 35%.
The equity raise was “structured as a 1-for-6.27accelerated non-renounceable entitlement offer”, priced at $2.00 per stapled security, and ranked equally with existing stapled securities from allotment.
In less than 24 hours, the company has now completed the institutional component of the raise, with circa $260 million raised.
“We are very appreciative of the huge amount of support received for National Storage and its growth strategy from both existing and new institutional shareholders.”
The retail entitlement offer will be commencing from 9am on Tuesday, 15 June this year and close a week later on Thursday 24 June.
Like the institutional offer, it will be priced at $2.00 per security.
National Storage also said that for those desiring an earlier allotment on 23 June, the early retail offer must be made by 5:00pm AEST on 21 June.
New securities issued as part of the institutional entitlement offer are expected to begin trading on 23 June this year.
“The equity raising will allow National Storage to strengthen the balance sheet, replenish investment capacity and provide additional funding flexibility going forward.”