Sovran Self Storage, Inc. Enters into Definitive Agreement to Acquire LifeStorage, LP

BUFFALO, N.Y.–(BUSINESS WIRE)–$SSS #MergersandAcquisitions–Sovran Self Storage, Inc. (“Sovran” or the “Company”) (NYSE:SSS), a self
storage real estate investment trust (REIT), announced today it has
entered into a definitive agreement to acquire LifeStorage, LP
(“LifeStorage”), a privately-owned self storage operator, for a gross
aggregate purchase price of approximately $1.3 billion, payable in cash.
Sovran has secured $1.35 billion in bridge financing to provide
certainty of closure, but the Company intends to permanently finance the
transaction with proceeds from contemplated equity and debt offerings.

LifeStorage, LP based in Roseville, California, is the sixth largest
private owner and operator of self storage facilities in the United
States, currently operating 92 self storage properties in nine states.
Upon completion of the acquisition, Sovran will own 84 LifeStorage
stores with a purchase contract for three additional certificates of
occupancy deals to be delivered late 2016 and early 2017.

“We are delighted to announce this acquisition. LifeStorage has built a
high-quality national portfolio, and these stores will enhance and
complement our physical footprint and digital presence,” commented David
Rogers, Chief Executive Officer of Sovran.

The newly acquired facilities will strengthen the Company’s strategic
position in its existing markets, including the addition of 25
facilities in Chicago, IL, 19 facilities across the Texas major markets
including eight in Austin and five in Dallas, and three each in Orlando,
FL and Los Angeles, CA.

The acquisition will also mark the Company’s entrance into several new
markets that include Northern California (10 facilities) and Las Vegas,
Nevada (17 facilities), thereby adding sufficient scale for the Company
to perform competitively in these markets while pursuing smaller deals
to fuel future growth.

Regarding the growth potential of the properties, Rogers noted,
“LifeStorage was founded in 2011, and its stores were built or purchased
in the past five years. While we believe these properties have been well
run, we foresee improved operating results as we apply our customer
service standards and transition these stores onto our web marketing and
Revenue Management platforms.”

The acquisition is subject to customary closing conditions. Sovran
management expects the acquisition to close in the third quarter of 2016.

TRANSACTION ADVISORS:

Wells Fargo Securities, LLC acted as lead financial advisor and SunTrust
Robinson Humphrey also acted as a financial advisor to Sovran Self
Storage. Phillips Lytle LLP and Hogan Lovells served as legal counsel in
connection with this transaction.

Citgroup Global Markets, Inc. acted as exclusive financial advisor to
LifeStorage and Latham & Watkins LLP served as counsel to LifeStorage in
connection with the transaction.

FORWARD LOOKING STATEMENTS:

The pending acquisition mentioned in this release is subject to
customary closing conditions; therefore no assurance can be given that
these properties will be purchased according to the terms described.

When used within this news release, the words “intends,” “believes,”
“expects,” “anticipates,” and similar expressions are intended to
identify “forward looking statements” within the meaning of that term in
Section 27A of the Securities Act of 1933, and in Section 21E of the
Securities Exchange Act of 1934. Such forward-looking statements involve
known and unknown risks, uncertainties and other factors, which may
cause the actual results, performance or achievements of the Company to
be materially different from those expressed or implied by such forward
looking statements. Such factors include, but are not limited to, the
effect of competition from new self storage facilities, which could
cause rents and occupancy rates to decline; the Company’s ability to
evaluate, finance and integrate acquired businesses into the Company’s
existing business and operations; the Company’s ability to enter new
markets where it has little or no operational experience; the Company’s
existing indebtedness may mature in an unfavorable credit environment,
preventing refinancing or forcing refinancing of the indebtedness on
terms that are not as favorable as the existing terms; interest rates
may fluctuate, impacting costs associated with the Company’s outstanding
floating rate debt; the Company’s ability to comply with debt covenants;
the future ratings on the Company’s debt instruments; the regional
concentration of the Company’s business may subject it to economic
downturns in the states of Florida and Texas; the Company’s ability to
effectively compete in the industries in which it does business; the
Company’s reliance on its call center; the Company’s cash flow may be
insufficient to meet required payments of principal, interest and
dividends; and tax law changes which may change the taxability of future
income.

CONFERENCE CALL:

Sovran will host a conference call at 8:30 a.m. Eastern Time on
Thursday, May 19, 2016. Participants may access the call at 877-407-8033
(domestic) or 201-689-8033 (international); a slide presentation will be
available on the Company’s website under the News & Events tab of the
Investor Relations page at http://invest.unclebobs.com/news/events-calendar.
A telephone replay will be available for 72 hours by calling
877-660-6853 (domestic) or 201-612-7415 (international) and entering
conference ID 13638094.

ABOUT SOVRAN SELF STORAGE, INC:

Sovran Self Storage, Inc. is a self-administered and self-managed equity
REIT that is in the business of acquiring and managing self storage
facilities. The Company operates over 550 self storage facilities in 26
states under the name “Uncle Bob’s Self Storage”®.

Contacts

Sovran Self Storage, Inc.
Diane Piegza, 716-650-6115
Vice
President
Investor Relations & Community Affairs