- 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.
|A-IFRS profit after tax||$309.7 million||154%||↑|
|Revenue from ordinary activities||$217.7 million||22%||↑|
|Underlying earnings||$86.5 million||28%||↑|
|Underlying EPS||8.5 cps||2.40%||↑|
|Total assets||$3.25 billion||23%||↑|
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.
|Statutory profit||$369.4 million||336%||↑|
|FFO per security||18.4 cents||5.10%||↓|
|Full year DPS||17.5 cents||5.40%||↓|
Breaking down the portfolios further, the self-storage portfolio data is as follows:
|Portfolio valuation increase||$227.9 million or 19%||↑|
|Portfolio valuation||$2 billion|
Abacus also reported a passing yield of 5.8% on established portfolio valued at $874 million.
The commercial portfolio data is as follows:
|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.