<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(b)
of The Securities Exchange Act of 1934
Date of Report: June 15, 1998
(Date of earliest event reported: June 1, 1998)
STORAGE TRUST REALTY
(Exact name of registrant as specified in its charter)
Maryland 1-13462 43-1689825
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
2407 Rangeline Street
Columbia, Missouri 65202
(Address and zip code of principal executive offices)
Registrant's telephone number, including area code:(573)499-4799
Not Applicable
(Former name or former address, if changed since last report)
<PAGE>
ITEM 5: ACQUISITION OF STORES
During the period from March 30, 1998 to June 1, 1998, Storage Trust Realty
(the "Company") completed the acquisition of 15 self-storage stores through
Storage Trust Properties L.P. (the "Operating Partnership"), a limited
partnership controlled by the Company as its sole general partner and in which
the Company holds a 93.24% ownership interest as of May 31, 1998. These
stores, totaling approximately 730,000 net rentable square feet, are located
in two states, and were purchased for approximately $42,481,000.
All of the stores were acquired in arms-length transactions and, except as
described below, there are no material relationships between any of the
sellers and the Company, the Operating Partnership, any other affiliate of the
Company, any trustee or officer of the Company or any associate of any trustee
or officer of the Company.
The Company had a loan agreement with the owner of the acquired Texan Storage
store. The balance funded under a note receivable at the time of acquisition
was $1,575,000. The Company exercised an option given by Texan Storage to
acquire the store during the term of the loan. The Company had also managed
the store, through Storage Realty Management Corp., from March 1997 through
the date of acquisition.
Management of the Company determined the purchase price through arms-length
negotiations, after taking into consideration such factors as the geographic
location of the properties, demographics of the market areas, age and
condition of the stores, the projected amounts of maintenance costs and
capital improvements, the current revenues of the stores, comparable stores
competing in the applicable markets, rental rates and occupancy levels for the
stores and competing stores, and the estimated amount of taxes, utility costs,
personnel costs, and other anticipated expenses.
<PAGE>
Each of the stores has been used by the sellers as a self-storage store prior
to their acquisition by the Company, and the Company intends to continue the
use of all of those stores for that purpose.
These stores were acquired for the combination of cash, the assumption of
mortgages totaling $24,585,000 (which were paid off immediately after
closing), the conversion of a note receivable with a balance at the date of
acquisition of $1,575,000 and the issuance of 126,990 units in the Operating
Partnership valued at $3,118,000
The cash for the acquisitions was provided from funds available under
the Company's $150 million revolving line of credit with BankBoston,
N.A., Bank of America, N.A. and other lenders.
<PAGE>
The following tables provide certain information concerning the stores
acquired:
<TABLE>
<CAPTION>
TABLE I
Date of
Store and Location Seller(s) Acquisition
<S> <C> <C>
U-Stor-It U-Stor-It #13
West 47th Street (Brighton Park)
Chicago, IL L.L.C. March 30, 1998
U-Stor-It U-Stor-It #7
South Main Place (Carol Stream)
Carol Stream, IL L.L.C. March 30, 1998
U-Stor-It U-Stor-It #19
North Western Street (Carpentersville)
Carpentersville, IL L.L.C. March 30, 1998
U-Stor-It U-Stor-It #9
East Chicago Avenue (Elgin East)
Elgin, IL L.L.C. March 30, 1998
U-Stor-It U-Stor-It #10
South Pulaski Road (Ford City)
Chicago, IL L.L.C. March 30, 1998
U-Stor-It U-Stor-It #1
Gary Avenue (Geneva)
Geneva, IL L.L.C. March 30, 1998
U-Stor-It U-Stor-It #5
LaSalle Avenue (Naperville)
Naperville, IL L.L.C. March 30, 1998
<PAGE>
TABLE I (continued)
Date of
Store and Location Seller(s) Acquisition
<S> <C> <C>
U-Stor-It U-Stor-It #2
Business 30 (Oswego)
Aurora, IL L.L.C. March 30, 1998
U-Stor-It U-Stor-It #11
North 5th Avenue (River Grove)
River Grove, IL L.L.C. March 30, 1998
U-Stor-It U-Stor-It #3
East Main Street (St. Charles)
St. Charles, IL L.L.C. March 30, 1998
U-Stor-It U-Stor-It #4
Old Church Road (Streamwood)
Streamwood, IL L.L.C. March 30, 1998
U-Stor-It U-Stor-It #12
Central Road (Mount Prospect)
Mount Prospect, IL L.L.C. March 30, 1998
A AAA Key Self Storage A AAA Key Self
North Central Expressway Service Storage
Richardson, TX Corp. April 29, 1998
U-Stor-It U-Stor-It #6
Big Timber Road (Elgin)
Elgin, IL L.L.C. May 15, 1998
Texan Storage
FM 528 Russell and
Webster, TX Shannon Walla June 1, 1998
<PAGE>
<CAPTION>
TABLE II
Net Percentage
Rentable Occupancy[4]
Purchase Square # of at Date of
Store and Location Price Footage Units Acquisition
<S> <C> <C> <C> <C>
U-Stor-It
West 47th Street
Chicago, IL $ 1,755,000 [1] 37,345 282 92%
U-Stor-It
South Main Place
Carol Stream, IL $ 3,877,000 [1] 59,815 627 71%
U-Stor-It
North Western Street
Carpentersville, IL $ 3,122,000 [1] 46,550 461 91%
U-Stor-It
East Chicago Avenue
Elgin, IL $ 2,000,000 [1] 38,585 346 46%
U-Stor-It
South Pulaski Road
Chicago, IL $ 1,359,000 [1] 22,200 323 86%
U-Stor-It
Gary Avenue
Geneva, IL $ 3,414,000 [1] 53,175 502 79%
U-Stor-It
LaSalle Avenue
Naperville, IL $ 5,918,000 [1] 75,678 744 68%
U-Stor-It
Business 30
Aurora, IL $ 2,700,000 [1] 57,565 564 63%
<PAGE>
<CAPTION>
TABLE II (continued)
Net Percentage
Rentable Occupancy[4]
Purchase Square # of at Date of
Store and Location Price Footage Units Acquisition
<S> <C> <C> <C> <C>
U-Stor-It
North 5th Avenue
River Grove, IL $ 3,390,000 [1] 52,675 518 82%
U-Stor-It
East Main Street
St. Charles, IL $ 2,712,000 [1] 45,150 460 86%
U-Stor-It
Old Church Road
Streamwood, IL $ 2,500,000 [1] 41,460 415 92%
U-Stor-It
Central Road
Mt. Prospect, IL $ 2,512,000 [1] 42,575 444 0%
A AAA Key Self Storage
North Central Expressway
Richardson, TX $ 1,320,000 [2] 28,600 269 95%
U-Stor-It
Big Timber Road
Elgin, IL $ 3,729,000 [2] 69,761 568 87%
Texan Storage
FM 528
Webster TX $ 2,173,000 [3] 59,368 521 74%
Totals or Average $42,481,000 730,502 7,044 74%
</TABLE>
Notes to TABLE II:
[1] Acquired for cash of $7,556,000, the assumption of $24,585,000 of
mortgages (which were paid off immediately after closing) and the
issuance of 126,990 units of the Operating Partnership valued at
$3,118,000.
[2] Acquired for cash.
[3] Acquired for cash and the conversion of a note receivable with a
balance at the date of acquisition of $1,575,000.
[4] Determined by dividing net rentable square footage occupied by total net
rentable square footage.
<PAGE>
ITEM 7: FINANCIAL STATEMENTS AND EXHIBITS
(a) FINANCIAL STATEMENTS APPLICABLE TO REPORTED STORES
It is not possible to provide at the time of filing this Report on
Form 8-K any of the financial statements or the additional
information specified by Rule 3-14 of Regulation S-X, as required by
Item 7(a)(3). The required financial information and additional
information will be filed by amendment within 60 days of the date of
this filing.
(b) PRO FORMA CONSOLIDATED FINANCIAL INFORMATION
It is not possible to provide at the time of filing this Report on
Form 8-K any of the pro forma financial information required
pursuant to Article 11 of Regulation S-X, as required by Item
7(b)(1). The required pro forma information will be filed by
amendment within 60 days of the date of this filing.
(c) EXHIBITS
See Index to Exhibits, which is hereby incorporated by reference
herein.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
STORAGE TRUST REALTY
June 15, 1998 /s/ Michael G. Burnam
(Date) Michael G. Burnam
Chief Executive Officer
June 15, 1998 /s/ Stephen M. Dulle
(Date) Stephen M. Dulle
Chief Financial Officer
<PAGE>
INDEX TO EXHIBITS
Exhibit
Number Document Description
99.1 Press release concerning the acquisition of the twelve stores, dated
April 2, 1998.
<PAGE>
Exhibit 99.1
Storage Trust Realty For additional information contact
2407 Rangeline Street Steve Dulle, Chief Financial Officer
Columbia, MO 65202 573.499.4799
Press Release
STORAGE TRUST REALTY ANNOUNCES ACQUISITION OF CHICAGO PACKAGE
TOTAL OF 12 STORES FOR $35,259,000
COLUMBIA, Missouri (April 2, 1998) Storage Trust Realty (NYSE:SEA) announces
that on March 31, 1998, the Company completed the acquisition of twelve
self-storage stores in the Chicago, IL area for a combined purchase price of
$35,259,000. The acquired stores currently contain 573,000 net rentable
square feet with approximately eight acres of additional land to expand six
of the stores by 138,000 net rentable square feet. The stores were
purchased for a combination of cash, the assumption of $24,585,000 of
mortgages (which were paid off immediately after closing) and the issuance
of 126,990 operating partnership units. Funds for these acquisitions were
obtained from borrowings on the Company s new $150 million revolving line of
credit. With these acquisitions, the Company has 22 stores in the Chicago
area and the Company has acquired 26 stores during the first three months of
1998 containing 1,425,000 net rentable square feet for a combined purchase
price of $88,136,000.
In addition to the twelve stores mentioned above, the Company has signed a
contract to acquire one additional store in the Chicago market from the same
Owner containing 70,000 net rentable square feet for a purchase price of
$3,729,000. The Company expects to complete the acquisition by May 15,
1998. The Company also has an option to acquire an additional six stores
(which are currently under development or construction) in the Chicago
market from the same owner.
Mike Burnam, Chief Executive Officer, commented on the acquisitions: "We are
maintaining our focus and in keeping with our business plan of becoming a
super regional operator, we are aggressively acquiring stores in our core
markets. We are now a major player in Chicago and we will be increasing our
market share as we expect to exercise these options over the next 12 to 18
months as the stores come on-line and start their lease-up period. We will
also pursue other acquisition and development opportunities in the Chicago
market.
Storage Trust Realty is a fully integrated, self managed and self
administered real estate investment trust headquartered in Columbia,
Missouri, engaged in the management and ownership of 227 self-storage stores
located in 16 states totaling 12.0 million net rentable square feet and
106,000 units.
Additional information on the Company can be obtained at our website at
www.storagetrust.com.
The statements made in this press release that are not historical facts are
forward-looking statements within the meaning of Sections 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange Act of
1934. These forward-looking statements are based on current expectations,
estimates and projections about the industry and markets that Storage Trust
operates, managements beliefs, and assumptions made by management.
Therefore, actual outcomes and results may differ materially from what is
expressed or forecasted in such forward-looking statements.
END OF PRESS RELEASE
<PAGE>
