Truist does not think will be offer superior to Extra Space’s for Life Storage

After Extra Space Storage (EXR) announced it has entered into a definite agreement to acquire Life Storage (LSI) in an all-stock transaction that values the latter at $145.82 per share, or $12.4B, Truist analyst Ki Bin Kim said the firm does not think there will be a superior offer made. While "technically" Public Storage (PSA) could have potentially extracted a higher level of synergies from a Life Storage acquisition, the firm believes Extra Space’s smaller equity base "allows each dollar of accretion to be more meaningful," the analyst tells investors. In terms of the derivative impact, the firm calls the deal an "incremental positive" for CubeSmart (CUBE) and sees a positive implication for National Storage (NSA). Truist maintains a Hold rating and $165 price target on Extra Space shares.