Life Storage Intrinsic Value Calculation – Life Storage Set to Maximize Shareholder Value with All-Stock Merger Arb Deal
April 14, 2023
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Life Storage ($NYSE:LSI), Inc., a self-storage real estate investment trust, is set to maximize shareholder value with an all-stock merger arbitrage deal. This lucrative opportunity is presented by Life Storage in the form of an attractive all-stock deal. The merger arbitrage deal will allow Life Storage shareholders to exchange their shares for shares of National Storage Affiliates Trust in a fixed ratio. This means that Life Storage shareholders will be able to receive a portion of National Storage Affiliates Trust’s stock in exchange for their shares of Life Storage. In addition to the merger arb opportunity, Life Storage has been working to expand its operations and improve its financial performance.
The company has completed several acquisitions and is expected to make additional investments to further strengthen its position as one of the leading self-storage real estate investment trusts in the United States. The all-stock merger arb deal with National Storage Affiliates Trust is a great opportunity for Life Storage shareholders to capitalize on the company’s strong growth potential and increase their long-term returns. With the deal, shareholders are able to benefit from the increased shareholder value without incurring the costs associated with a traditional merger.
Price History
The stock opened at $146.4 and closed at $144.6, down 0.6% from the prior closing price of 145.4. This merger arb deal is considered to be one of the most significant moves of the company in recent years, and its goal is to create a bigger, more diversified and more profitable organization that can compete better with larger competitors. The new merged company, which will be named Life Storage Solutions LLC, will be based in Buffalo, New York. It will include the existing Life Storage business as well as several additional subsidiaries.
This deal has been structured in a way that allows shareholders of both companies to benefit from the new entity. Furthermore, the company expects to generate significant savings from the combined operations. With this move, LIFE STORAGE aims to strengthen its position in the market and increase shareholder value over time. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Life Storage. More…
| Total Revenues | Net Income | Net Margin |
| 990.95 | 358.13 | – |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Life Storage. More…
| Operations | Investing | Financing |
| 586.86 | -1.14k | 406.42 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Life Storage. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 7.39k | 3.56k | 42.61 |
Key Ratios Snapshot
Some of the financial key ratios for Life Storage are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| – | – | 46.4% |
| FCF Margin | ROE | ROA |
| – | – | – |
Analysis – Life Storage Intrinsic Value Calculation
GoodWhale has conducted an analysis of LIFE STORAGE‘s fundamentals, and based on our proprietary Valuation Line, have calculated the intrinsic value of LIFE STORAGE’s shares to be around $101.4. Currently, LIFE STORAGE stock is being traded at $144.6 – an overvaluation of 42.6%. More…
Peers
The competition between Life Storage Inc and its competitors is fierce. Public Storage, Extra Space Storage Inc, and National Storage Affiliates Trust are all major players in the self-storage industry and they are all fighting for market share. The company has a strong presence in the Northeast and Mid-Atlantic regions of the country. Extra Space Storage Inc is a publicly traded company that owns and operates self-storage facilities in the United States. The company has a strong presence in the Western United States. National Storage Affiliates Trust is a publicly traded real estate investment trust that owns and operates self-storage facilities in the United States.
– Public Storage ($NYSE:PSA)
Public Storage has a market cap of 51.38B as of 2022. The company is a leading provider of self-storage solutions with over 2,200 locations across the United States and Europe. Public Storage offers a variety of storage unit sizes and features to meet the needs of its customers. The company’s self-storage solutions are designed to provide customers with convenient, safe, and affordable storage options.
– Extra Space Storage Inc ($NYSE:EXR)
As of 2022, Extra Space Storage Inc has a market cap of 22.22B. The company is a leading provider of storage solutions with over 2,200 locations across the United States. The company offers a variety of storage options for both residential and commercial customers.
– National Storage Affiliates Trust ($NYSE:NSA)
National Storage Affiliates Trust is a real estate investment trust focused on the ownership, operation and acquisition of self storage properties located throughout the United States. As of December 31, 2018, the Company owned and operated 647 self storage properties located in 35 states with approximately 43.2 million rentable square feet.
Summary
Investors have the opportunity to capitalize on an attractive all-stock merger arb deal, with Life Storage Inc. (NYSE:LSI) and Sovran Self Storage Inc. (NYSE:SSS). Analysts believe that the all-stock merger is a great opportunity for investors due to its favorable terms, with the expected return on investment for the deal being around 4%.
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