Image – National Storage, Abacus Property.
  • Self-storage still hot property
  • NSR profits up 154%
  • ABP profits up 336%

The Property Tribune reported earlier this year that the self-storage market was one of the most lucrative around, with industrial and logistics more broadly reported as the “most sought-after” property class.

That seems to be reflected in the financial results of National Storage (ASX: NSR) and Abacus Property (ASX: ABP). While Abacus is not purely in the self-storage game, the company’s self-storage portfolio is valued at $2.0 billion; Abacus’ commercial portfolio for comparison sake is $2.1 billion.

National Storage REIT (ASX: NSR)

“We have achieved record Group rate, occupancy and REVPAM growth with rate increasing 8.3% to $260/m2, occupancy increasing 8.5% to 86.1% and REVPAM increasing 22.8% to $227/m2,” said NSR MD Andrew Catsoulis.

The company acquired 22 new centres totalling $320 million across FY21, representing 128,000 square metres of new net lettable area, and three development sites totalling $32 million.

FY21 Change Direction
A-IFRS profit after tax $309.7 million 154%
Revenue from ordinary activities $217.7 million 22%
NTA $1.89 15%
Underlying earnings $86.5 million 28%
Underlying EPS 8.5 cps 2.40%
Total return 19.50%
Total assets $3.25 billion 23%
Gearing 22%

NSR has also already settled or contracted 4 acquisitions worth $33 million dollars in FY22 so far.

Abacus Property Group (ASX: ABP)

ABP made significant investments in the self-storage arena during FY21, acquiring $271 million of stores and other self storage investments, including the remaining 75% of storage operator, Storage King.

Abacus also acquired the remaining 60% portion of The Oasis Centre in Broadbreach Queensland for $103.5 million, half of 241 Adelaide Street in Brisbane for $31.8 million, and more.

The company also acquired post balance date, one-third of Myer Melbourne for $135.2 million, and a Sydney self-storage portfolio for $160 million.

FY21 Change Direction
Statutory profit $369.4 million 336%
FFO $136.4 million 9.50%
FFO per security 18.4 cents 5.10%
Full year DPS 17.5 cents 5.40%
NTA $3.43 3.30%

Breaking down the portfolios further, the self-storage portfolio data is as follows:

FY21 Change Direction
FFO $69.6 million 15.50%
Portfolio valuation increase $227.9 million or 19%
Portfolio valuation $2 billion
RevPAM increase 6.30%

Abacus also reported a passing yield of 5.8% on established portfolio valued at $874 million.

The commercial portfolio data is as follows:

FY21 Change Direction
FFO $86.9 million 23.90%
Portfolio valuation increase $9.5 million or 0.5%
Cap rates 5.50% Compressed by 11 bps
Portfolio valuation  $2.1 billion
Office net property income $69.2 million 16%
Retail net property income  $11 million 26%

“Abacus had an active year including deployment of $1 billion of capital, completion of a $402 million Entitlement Offer and internalisation of our Self Storage manager Storage King, to become a vertically integrated Self Storage investment platform,” said Abacus MD Steven Sewell.

The expected FY22 full-year distribution will reflect a payout ratio broadly in line with the target range of 85 – 95% of FFO.

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