Public Storage Defends Growth Plan After Elliott Nominates Directors
December 14 2020 - 5:13PM
Dow Jones News
By Micah Maidenberg
Public Storage defended its track record on driving growth after
activist investor Elliott Management nominated directors for the
company's board and criticized the self-storage firm's
performance.
"The Public Storage board of trustees and management team are
committed to serving the best interests of the company and its
shareholders, and will continue to take decisive action to drive
sustainable value creation," the company said.
The owner of interests in about 2,500 self-storage facilities
covering 171 million rentable square feet in the U.S. said it has
expanded its property portfolio, bolstered investment in customer
retention and raised more than $3 billion in fresh debt and
preferred capital to fund growth and lower capital costs, among
other efforts.
The company's total shareholder return over 20 years is 16%,
more than double that of the S&P 500 index, it said.
Public Storage also said it has added five new directors to its
board over the past 18 months.
Elliott said earlier Monday it believes Public Storage has
underperformed, faulting the real estate-investment trust for what
it said was a failure to invest aggressively in its business. The
investor said the company should refresh its board and nominated
six candidates.
Elliott said in a letter that Public Storage has underperformed
other self-storage companies "over the last decade, despite having
numerous structural advantages."
Write to Micah Maidenberg at micah.maidenberg@wsj.com
(END) Dow Jones Newswires
December 14, 2020 16:58 ET (21:58 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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