National Storage REIT (ASX: NSR) is a leading self-storage facilitator that provides storage solutions to over 60,000 customers at 160 different locations around the country. These include storage offerings of business storage, records management, climate-controlled wine storage, vehicle storage, vehicle and trailer hire, packaging, insurance and other value-added services. The firm listed on the ASX in 2013 and currently trades on a market cap near $1.4b with a share price of $1.8.
How did NSR perform in FY19?
National Storage REIT reported its FY19 results on the 28th of August 2019, The firm reported a 21% increase in underlying earnings that jumped to $62.4m and an increase in total assets under management of 36% to $1.95b. National Storage also reported a total dividend distribution for FY19 of 9.6 cents per share and asset acquisition of $403m, up 160% for FY19. The firm also offered guidance for FY20 of underlying EPS growth to be greater than 4%.
What does the future hold for NSR?
National Storage has managed to deliver a sound result inline with their guidance despite challenges within the Australian real estate market, this demonstrates the resilience of the storage industry despite declining property markets. The firm currently has an occupancy rate of 81.4% that it is looking to raise to 90% in the future, this will generate an additional $24m in revenue for the Company. NSR has begun an operational transformation in order to increase organic growth through automation, timely reporting and increased use of technology. These plans will act to improve the firm's bottom line and increase profits in the future. The Company also has 13 development projects underway that when finished will generate considerable revenue for NSR as well as several joint ventures that will increase the firm’s asset base.
This article has been prepared by the Australian Stock Report Pty Ltd (AFSL: 301 682. ABN: 94 106 863 978)
(“ASR”). ASR is part of Amalgamated Australian Investment Group Limited (AAIG) (ABN: 81 140 208 288 Level 13, 130 Pitt Street, Sydney NSW 2000).
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