Global Self Storage Inc. shareholders voted to approve the company's charter amendment proposal aimed at aligning the charter with its status as a real estate investment trust.
Compass Point Research & Trading LLC analyst Casey Alexander said in an Oct. 16 note that the vote was critical as Global Self Storage's previous charter as an investment company restricted it to no more than 20 million shares outstanding and limited its share issuance and debt financing to no more than $1 million.
Alexander said the REIT-aligned charter should allow Global Self Storage to pursue growth opportunities and expedite acquisitions through a syndicated capital offering, debt or preferred stock issuance, or through an umbrella partnership REIT structure. Being able to raise equity capital should bring the company "onto the radar screen of a larger audience of institutional investors as small cap self-storage investment opportunities are limited," the analyst said.
Other matters approved at the meeting included proposals to increase the company's authorized common shares in case the proposed charter change was not approved and to hold the executive compensation advisory vote every three years.
Independent proxy advisory firm Institutional Shareholder Services had recommended approval for the charter amendment proposal, but urged shareholders to vote down the proposed increase to the authorized shares and the proposal for advisory vote every three years.