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National Storage REIT Is Storage A Resilient Property Asset?

Jordan Baird

Jordan Baird is the head ASR Wealth Advisers client services desk and has been with the organisation since 2017. He first started investing in his early years. While he believes that investors should leave no stone unturned he has a particular interest in trading based on broad macroeconomic trends along with specific analysis of innovative up-and-coming companies.

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.

National Storage REIT -REPORT
Source: https://www.nationalstorageinvest.com.au/

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.

 


 

Disclaimer:

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).

This article is provided for informational purpose only and does not purport to contain all matters relevant to any particular investment or financial instrument. Any market commentary in this communication is not intended to constitute “research” as defined by applicable regulations. Whilst information published on or accessed via this website is believed to be reliable, as far as permitted by law we make no representations as to its ongoing availability, accuracy or completeness. Any quotes or prices used herein are current at the time of preparation. This document and its contents are proprietary information and products of our firm and may not be reproduced or otherwise disseminated in whole or in part without our written consent unless required to by judicial or administrative proceeding. The ultimate decision to proceed with any transaction rests solely with you. We are not acting as your advisor in relation to any information contained herein. Any projections are estimates only and may not be realised in the future.

ASR has no position in any of the stocks mentioned.

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