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PSA, Ki Consortium Revises Bid for Abacus Storage King to A$1.65
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Key Takeaways
PSA and Ki Consortium raised their offer for Abacus Storage King to A$1.65 per stapled security.
The consortium plans to acquire all Abacus securities not already held by Ki Group.
Public Storage seeks to apply its expertise to expand Abacus operations and boost customer experience.
Public Storage (PSA - Free Report) and Ki Corporation, as a consortium, have announced a revised, non-binding offer to acquire Abacus Storage King at a price of A$1.65 per stapled security. This new offer marks an increase from the prior bid of A$1.47 per stapled security. In response to the updated proposal, the consortium and Abacus Storage King have mutually agreed to proceed with due diligence.
According to the prior press release, PSA and Ki are aiming for the acquisition of all outstanding stapled securities of Abacus that are not held by Ki Group, Abacus’ major security holder.
If completed, the transaction would see Public Storage and Ki each acquiring a 50% stake in Abacus Storage King, which is one of the leading self-storage operators in Australia and New Zealand. Abacus’ portfolio includes around 126 operating properties, 21 development sites and 75 managed or licensed locations.
Leveraging its successful collaboration with Shurgard Self Storage Limited in Europe, Public Storage aims to apply its deep industry expertise and competitive strengths to support Abacus Storage King, enhance customer experience, optimize operations, grow ancillary businesses and accelerate portfolio expansion.
This move into international markets appears strategically sound, given that Australia and New Zealand offer an established, fast-growing self-storage market, supported by strong population growth, stable economic conditions and rising consumer adoption. Moreover, the fragmented nature of property ownership in the region offers attractive opportunities for market consolidation.
Final Words on Public Storage
Public Storage is one of the most recognized names in the self-storage industry, with high brand value and presence across key metropolitan markets in the United States. Accretive buyouts, development and expansion activities foster growth prospects.
From the beginning of 2023 through the first quarter of 2025, Public Storage acquired a total of 195 facilities with 14.5 million net rentable square feet for $3.1 billion. During the first quarter of 2025, these facilities contributed a net operating income (NOI) of $35.8 million. With solid access to capital, the company is well-poised to take advantage of any potential opportunity.
However, soft demand industry-wide and lower occupancy are concerns. We expect the 2025 weighted average square foot occupancy to decline to 91.8%. Moreover, high supply fuels competition, affecting pricing power and margins.
Shares of this Zacks Rank #3 (Hold) company have risen 0.1% over the past three months, underperforming the industry's growth of 5.5%.
The Zacks Consensus Estimate for Digital Realty Trust’s full-year funds from operations (FFO) per share is pegged at $7.04, calling for a 4.9% increase year over year. Digital Realty has a long-term FFO per share growth rate of 9.3%.
The Zacks Consensus Estimate for SBA Communications’ 2025 FFO per share is pegged at $12.74, moving marginally northward over the past two months. SBA Communications has a long-term FFO per share growth rate of 10%.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
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PSA, Ki Consortium Revises Bid for Abacus Storage King to A$1.65
Key Takeaways
Public Storage (PSA - Free Report) and Ki Corporation, as a consortium, have announced a revised, non-binding offer to acquire Abacus Storage King at a price of A$1.65 per stapled security. This new offer marks an increase from the prior bid of A$1.47 per stapled security. In response to the updated proposal, the consortium and Abacus Storage King have mutually agreed to proceed with due diligence.
According to the prior press release, PSA and Ki are aiming for the acquisition of all outstanding stapled securities of Abacus that are not held by Ki Group, Abacus’ major security holder.
If completed, the transaction would see Public Storage and Ki each acquiring a 50% stake in Abacus Storage King, which is one of the leading self-storage operators in Australia and New Zealand. Abacus’ portfolio includes around 126 operating properties, 21 development sites and 75 managed or licensed locations.
Leveraging its successful collaboration with Shurgard Self Storage Limited in Europe, Public Storage aims to apply its deep industry expertise and competitive strengths to support Abacus Storage King, enhance customer experience, optimize operations, grow ancillary businesses and accelerate portfolio expansion.
This move into international markets appears strategically sound, given that Australia and New Zealand offer an established, fast-growing self-storage market, supported by strong population growth, stable economic conditions and rising consumer adoption. Moreover, the fragmented nature of property ownership in the region offers attractive opportunities for market consolidation.
Final Words on Public Storage
Public Storage is one of the most recognized names in the self-storage industry, with high brand value and presence across key metropolitan markets in the United States. Accretive buyouts, development and expansion activities foster growth prospects.
From the beginning of 2023 through the first quarter of 2025, Public Storage acquired a total of 195 facilities with 14.5 million net rentable square feet for $3.1 billion. During the first quarter of 2025, these facilities contributed a net operating income (NOI) of $35.8 million. With solid access to capital, the company is well-poised to take advantage of any potential opportunity.
However, soft demand industry-wide and lower occupancy are concerns. We expect the 2025 weighted average square foot occupancy to decline to 91.8%. Moreover, high supply fuels competition, affecting pricing power and margins.
Shares of this Zacks Rank #3 (Hold) company have risen 0.1% over the past three months, underperforming the industry's growth of 5.5%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks from the broader REIT sector are Digital Realty Trust (DLR - Free Report) and SBA Communications (SBAC - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Digital Realty Trust’s full-year funds from operations (FFO) per share is pegged at $7.04, calling for a 4.9% increase year over year. Digital Realty has a long-term FFO per share growth rate of 9.3%.
The Zacks Consensus Estimate for SBA Communications’ 2025 FFO per share is pegged at $12.74, moving marginally northward over the past two months. SBA Communications has a long-term FFO per share growth rate of 10%.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.