Life Storage Inc. (NYSE: LSI) is witnessing a substantial uptick in its stock performance today. At last check, the stock was trading at $124.11, representing a 12.24% increase from its previous value. The reason for this significant rise in value is attributed to the company receiving a takeover bid, which has generated substantial investor interest and optimism in the company’s future prospects.
Who is bidding to take over LSI?
Today, Life Storage (LSI) confirmed that Public Storage sent it an unsolicited all-stock proposal. As part of the proposal, Public Storage would acquire all the outstanding shares of Life Storage for 0.4192 shares of its common stock for each share of LSI.
A privately submitted proposal previously reviewed by Life Storage’s Board of Directors appears substantially similar in all material respects to the proposal received today. However, the Board will carefully review the proposal with the assistance of its legal and financial advisors before determining the best course of action.
LSI will release its quarterly results
LSI will release its financial results for the quarter that ended December 31, 2022, on Thursday, February 23, 2023, after the market closes. In a conference call scheduled for Friday, February 24, 2023, Life Storage will discuss operations and review financial results.
LSI increased the dividend consistently
In recent weeks, LSI’s Board of Directors approved an increase in the quarterly common stock dividend from $1.08 to $1.20 per share or $4.32 to $4.80 annually. It represents an increase of 11% over the previous quarter and 20% over the first quarter of 2022. Using the closing share price on December 30, 2022, the dividend yield would be 4.9% per year.
This marks LSI’s sixth quarterly dividend increase in the last four years, resulting in an overall dividend increase of 79%. Dividend growth has been consistent for Life Storage (LSI) and it is committed to continuing to deliver strong financial performance and shareholder value for years to come.