|6 Months Ended|
Jun. 30, 2021
|Subsequent Events [Abstract]|
|SUBSEQUENT EVENTS||SUBSEQUENT EVENTS
Self Storage Property Acquisitions
Subsequent to June 30, 2021, the Company acquired seven self storage properties for approximately $68.6 million. Consideration for these acquisitions included approximately $57.1 million of net cash, the assumption of approximately $0.2 million of other working capital liabilities and OP equity of approximately $11.3 million (consisting of the issuance of 189,322 OP units and 10,870 subordinated performance units). Of these acquisitions, one self storage property for $11.7 million was acquired from a company in which an entity controlled by J. Timothy Warren, a trustee of the Company, was an investor. Mr. Warren's adult children held an ownership interest in such investor entity. Of the total consideration paid, the interest of Mr. Warren's children was approximately 9,290 OP Units with a value of $0.5 million.
Common Share Offering
On July 23, 2021, the Company closed a follow-on public offering of 10,120,000 of its common shares, which included 1,320,000 common shares sold upon the exercise in full by the underwriters of their option to purchase additional common shares, at a public offering price of $51.25 per share. The Company received aggregate net proceeds from the offering of approximately $497.4 million after deducting the underwriting discount and additional expenses associated with the offering. The Company used the net proceeds for self storage property acquisitions, general corporate purposes and to repay borrowings outstanding under its Revolver.
Subsequent to June 30, 2021, the Company sold 782,000 of its common shares through the ATM program at an average offering price of $51.82 per share, resulting in net proceeds to the Company of approximately $40.0 million, after deducting compensation payable by the Company to such agents and offering expenses. The Company used the net proceeds for self storage property acquisitions and to repay borrowings outstanding under its Revolver.
2026 and May 2031 Senior Unsecured Notes
On July 26, 2021 the operating partnership issued the 2026 Notes and the May 2031 Notes. See Note 8 for additional detail regarding the 2026 Notes and the May 2031 Notes. The Company used the proceeds to repay outstanding amounts on its revolving line of credit and for general corporate purposes.
Fixed Rate Mortgage Payable
On July 9, 2021, the Company entered into an agreement with a single lender for an $88.0 million debt financing secured by a first lien on eight of the Company's self storage properties. This interest-only loan matures in July 2028 and has a fixed interest rate of 2.77%. The Company used the net proceeds to repay borrowings outstanding under its Revolver.
Term Loan Commitment
The Company received commitments in July 2021 from a syndicated group of lenders to partially exercise the expansion option under its unsecured credit facility for a $100.0 million tranche E term loan facility (the "Term Loan E"). The Term Loan E is expected to close during the third quarter of 2021 and mature in early 2027. The credit facility's existing financial covenants are not expected to change as a result of the expansion. The Company plans to use the proceeds from the Term Loan E for self storage property acquisitions and for general corporate purposes.
The entire disclosure for significant events or transactions that occurred after the balance sheet date through the date the financial statements were issued or the date the financial statements were available to be issued. Examples include: the sale of a capital stock issue, purchase of a business, settlement of litigation, catastrophic loss, significant foreign exchange rate changes, loans to insiders or affiliates, and transactions not in the ordinary course of business.
Reference 1: http://www.xbrl.org/2003/role/disclosureRef