The National Storage REIT (ASX: NSR) share price is in focus after the company announced it has entered into a binding Scheme Implementation Deed with a consortium led by Brookfield and GIC. Under the proposed deal, NSR securityholders will receive a total value of $2.86 cash per security, representing a 26.5% premium to the last undisturbed price. The scheme values NSR's equity at $4.0 billion and an enterprise value of $6.7 billion.
What did National Storage REIT report?
- Entered a binding scheme with Brookfield and GIC consortium for a total cash consideration of $2.86 per security
- Scheme values equity at approximately $4.0 billion and enterprise value at $6.7 billion
- Total consideration represents 26.5% premium to last undisturbed price as of 25 November 2025
- Scheme consideration is a 10.9% premium to NSR's net tangible asset (NTA) value of $2.58 per security
- Board unanimously recommends voting in favour, subject to no superior proposal and independent expert support
- Potential permitted distribution of up to 6 cents per security, deducted from the cash offer if paid
What else do investors need to know?
The proposed transaction follows a period of negotiation and confirms earlier speculation that NSR was in acquisition talks. If the permitted distribution is paid for the half-year ending 31 December, the cash component of the scheme price is reduced by 6 cents. The board has also suspended the Dividend Reinvestment Plan (DRP) effective immediately in light of the scheme.
The board's unanimous recommendation comes with support from an independent expert and is subject to a shareholder vote, court approvals and a range of regulatory clearances including from the Foreign Investment Review Board and New Zealand's Overseas Investment Office. Subject to conditions, implementation could occur in the second quarter of 2026.
What did National Storage REIT management say?
NSR Managing Director Andrew Catsoulis said:
This proposal is an endorsement of the strong fundamentals and long-term growth strategy of NSR, which has evolved from a single storage centre originally developed at Oxley Queensland in 1995 to Australia and New Zealand's leading owner and operator of self-storage centres with over 290 centres today providing over 1.6 million square metres of state of the art storage space for its customers. We are confident this position will be further strengthened with the Consortium's support.
What's next for National Storage REIT?
Securityholders are not required to take any action at this time. Details of the proposal, including the Scheme Booklet and independent expert's report, will be provided ahead of a vote anticipated for April 2026. If approved and all conditions are satisfied, the implementation of the scheme is expected in the second quarter of 2026.
The board will pay close attention to regulatory clearances and any competing proposals that may arise, with a 'superior proposal' clause providing flexibility. If the transaction proceeds, NSR will be removed from the ASX and its shares delisted.
National Storage REIT share price snapshot
Over the past 12 months, the National Storage REIT shares have climbed 16%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 3% over the same period.
