What Does National Storage Do?
National Storage REIT [ASX: NSR] is one of Australia’s largest storage providers. It has an interest (in different ways) in 82 centres across seven Australian states. According to the company, its product offerings include self-storage, business storage, vehicle storage, wine storage, vehicle hire, packaging and insurance.
What’s Happening to the National Storage Share Price?
Here is a daily chart of the stock…
The company listed on the Australian Stock Exchange in December 2013. According to the company, it’s the first publicly listed independent, internally managed and fully integrated owner and operator of self-storage centres in Australia.
The stock is flirting with all time highs. There was a huge amount of volume on 19 June compared to a standard trading day. On 26 of the same month the company announced an expansion into the New Zealand market for the first time. The company will use its debt facility and spend NZD$23 million to acquire five self-storage assets.
What Now for National Storage ?
Part of its growth strategy is strategic acquisitions, like the recent New Zealand one. The company says self-storage is a fragmented market to which it can add scale and efficiency.
It has the financial capacity to take advantage should opportunities present themselves. Should interest rates continue to fall, National Storage might look attractive to dividend investors because it pays out almost all its underlying earnings. While the company’s storage assets are a mix of freehold and leasehold, the majority are freehold.
The freehold properties it does own should continue to appreciate as property continues to rise in Australia. For more on why that is, go here .
Editor, The Daily Reckoning