PSA, Ki Consortium Revises Bid for Abacus Storage King to A$1.65

Group 1 - Public Storage (PSA) and Ki Corporation have made a revised, non-binding offer to acquire Abacus Storage King at A$1.65 per stapled security, up from A$1.47 [1][8] - The consortium aims to acquire all outstanding stapled securities of Abacus not held by Ki Group, with each party set to own a 50% stake if the acquisition is completed [2] - Abacus Storage King operates around 126 properties, 21 development sites, and 75 managed or licensed locations, making it a leading self-storage operator in Australia and New Zealand [2] Group 2 - Public Storage plans to leverage its collaboration with Shurgard Self Storage Limited to enhance Abacus's customer experience, optimize operations, and accelerate portfolio expansion [3] - The self-storage market in Australia and New Zealand is characterized by strong population growth and stable economic conditions, presenting attractive opportunities for market consolidation [4] Group 3 - Public Storage has acquired 195 facilities with 14.5 million net rentable square feet for $3.1 billion from the beginning of 2023 through the first quarter of 2025, contributing a net operating income of $35.8 million in Q1 2025 [6] - The company is well-positioned to capitalize on potential opportunities due to solid access to capital [6] Group 4 - Despite the growth prospects, the industry faces challenges such as soft demand and lower occupancy rates, with expectations for a decline in the 2025 weighted average square foot occupancy to 91.8% [7] - High supply in the market is increasing competition, which affects pricing power and margins [7]