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Sovran’s stock sale was a hit

Sovran Self Storage’s stock sale last week was a bigger hit with investors than the company first thought.

The Amherst-based company, which runs Uncle Bob’s self storage facilities, raised $269.7 million by selling 2.65 million additional shares of its stock, Sovran said Tuesday. That was $35 million more than the company initially reported last week.

The extra proceeds stemmed from strong demand for the shares among investors, which allowed the offering’s underwriters to sell 345,000 additional shares by exercising their over-allotment option.

The money from the stock offering will help Sovran pay for the 30 new stores that it is acquiring in a series of acquisitions valued at $400 million announced last week. The acquisitions include eight stores in the Los Angeles market, the company’s first foray into California.

With the stock sale funding roughly two-thirds of the acquisition cost, Sovran is capitalizing on the strength of its stock price, which has jumped by more than 60 percent since the end of 2013 as stronger occupancy levels and higher rents have bolstered the company’s earnings.

Sovran sold the additional shares at a price of $105.75. The shares closed Monday at $108.60, down 30 cents.

email: drobinson@buffnews.com