Sovran Self Storage, Inc. , a real estate investment trust (REIT), has recently divested a 12-property portfolio to World Class Capital Group, LLC, for $35.5 million. The proceeds were utilized to reduce the outstanding balance on Sovran’s line of credit.
Spanning approximately 900,000 net rentable square feet, the sold portfolio includes over 8,000 units in Houston and Dallas, Texas, making it one of the largest self-storage portfolio sales in the U.S. in 2012. Subsequent to the divestiture, Sovran continues to operate 110 Texas self storage facilities under the trade name Uncle Bob’s Self Storage.
Sovran is continuing with its portfolio repositioning program in which it divests non-core assets and targets high-quality assets in attractive lucrative markets with better growth opportunities. The company has acquired 32 properties in Texas over the last year and remains focused on its asset recycling program by reducing exposure in its non-core investments.
Earlier in the second quarter 2012, Sovran acquired four premium self storage facilities and also subsequent to the end of the quarter, the company sold five non-strategic properties.
Headquartered in Buffalo, New York, Sovran engages in the business of acquiring and managing self-storage facilities. The company’s self-storage properties offer storage space to residential and commercial users, besides outside storage for automobiles, recreational vehicles, and boats.
Sovran currently retains a Zacks #2 Rank, which translates into a short-term Buy rating. We also have a long-term Neutral recommendation on the stock. One of its competitors, Public Storage (PSA - Free Report) holds a Zacks #3 Rank, which translates into a short-term Hold rating.