Life Storage Inc. (LSI) will raise its quarterly dividend by 3.7 percent to $1.11 per share in 2021. This comes after a dividend hike of 7.0 percent to $1.07 per share announced in 2020 by the company formerly known as Sovran Self Storage. This is the second dividend increase announced by the real estate company since 2017. Life Storage also announced a three-for-two stock split of the Company’s common stock, which will be made in the form of a 50% stock dividend.
In a press release dated January 4, 2021 Life Storage announces the dividend hike and stock split: Shareholders of record at the close of business on January 15, 2021 will receive one additional share of Life Storage common stock for every two shares owned. These additional shares will be distributed on January 27, 2021. Cash will be distributed in lieu of fractional shares based on the closing price on the record date. The Company has approximately 49.5 million shares outstanding and, after the split, the Company will have approximately 74.3 million shares outstanding. Life Storage’s common stock will begin trading on a split-adjusted basis on January 28, 2021.
On a pre-split basis, the quarterly cash dividend equates to $1.11 per common share or $4.44 annualized. The increase is effective with the quarterly dividend to be paid on January 27, 2021 to shareholders of record on January 15, 2021. The dividend, based on today’s opening share price, equates to an annual yield of 3.7%. The dividend will be paid on pre-split shares.
The new annual dividend rate of $4.44 per share yields 3.9% at a stock price of $114.65. Life Storage pays an estimated $216 million in dividends to shareholders annually.
“As we deliver strong operating results and cash flows, we will continue to reward our shareholders. We are confident in the company and its growth prospects,” commented Joe Saffire, Chief Executive Officer of Life Storage, Inc. in the company's press release.
Life Storage, Inc., formerly Sovran Self Storage, Inc., is a self-administered and self-managed real estate company. The company acquires, owns and manages self-storage properties in the United States and Canada. The company serves both residential and commercial storage customers with storage units rented by month. Life Storage (formerly Sovran Self Storage) has been in the self storage business since 1984; the company went public in 1995.