Jimmy Khan
Aug 23, 2022 17:01
Investors that want to participate in the expanding real estate market without having to deal with the responsibilities of owning real estate choose real estate investment trusts, or REITs. Vic Patel, the founder of Forex Training Group, asserts that the market for self-storage and warehouse REITs is expanding right now and that investors would be advised to be optimistic on these companies. He justifies his position by claiming that because of the widespread unemployment brought on by the COVID-19 epidemic, many individuals were unable to pay their rent. Even some homeowners sold their homes, indicating a rise in interest in storage and warehouse REITs over the previous year.
In the US, 10.6% of households are presently renting self-storage units, up from 9.4% in 2020, according to a snapshot of the storage industry. As of January 2021, the self-storage sector generated $39.5 billion in yearly sales.
Self-storage revenues were estimated to be $48.02 billion in 2020, and by 2026, they are predicted to rise to $64.71 billion, implying a CAGR of 5.45%. One of the main factors driving the expansion of the storage sector is increased urbanization, since new enterprises need warehouse space. Additionally, individuals moving between cities for employment or from rural to urban regions use self storage facilities for their things.
Among those covered in detail below, some of the most notable warehouse and self storage companies include CubeSmart (NYSE:CUBE), Extra Space Storage Inc. (NYSE:EXR), Public Storage (NYSE:PSA), and WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC).
A well-known name in real estate, Duke Realty Corporation (NYSE:DRE), owns, develops, and manages a number of industrial and logistical facilities. They have modern distribution hubs and bulk warehouses. Since its founding in 1972, Duke Realty Corporation (NYSE:DRE) has accumulated assets in 19 logistics areas throughout the US and has immediate intentions to grow. In order to communicate with prospective customers and lease spaces online, Duke Realty Corporation (NYSE:DRE) also makes use of e-commerce.
At the end of June, 15 of the 873 hedge funds tracked by Insider Monkey had positions worth $49.1 million in Duke Realty Corporation (NYSE:DRE). Hedge funds had interests in the warehouse REIT valued at $279.6 million in the prior quarter, compared to 20 this quarter.
Duke Realty Corporation (NYSE:DRE) was given Overweight rating on September 1 by Barclays analyst Anthony Powell, who also set the price objective at $57.
The largest shareholder in Duke Realty Corporation (NYSE:DRE) is the billionaire American investor Israel Englander's Millennium Management, which has 259,718 shares worth $12.29 million.
Like CubeSmart (NYSE:CUBE), Extra Space Storage Inc. (NYSE:EXR), Public Storage (NYSE:PSA), and WillScot Mobile Mini Holdings Corp., Duke Realty Corporation (NYSE:DRE) is a great warehouse and self-storage company to invest in (NASDAQ:WSC).
STAG Industrial, Inc. (NYSE:STAG), a REIT focused on purchasing and managing single-tenant industrial properties throughout the United States, is the eleventh company on our list of the top warehouse and self storage companies to purchase. STAG Industrial, Inc. (NYSE:STAG) has made it simpler for investors to discover a reliable mix of growth and income by concentrating primarily on industrial assets.
15 hedge funds monitored by Insider Monkey had holdings in STAG Industrial, Inc. (NYSE:STAG) at the end of the second quarter of 2021, valued at $232.1 million, down from 17 the quarter before. Zimmer Partners is the company with the greatest interest in STAG Industrial, Inc. (NYSE:STAG), owning 1.68 million shares worth $63.07 million.
On July 27, STAG Industrial, Inc. (NYSE:STAG) released financial results for the second quarter. The company's EPS was $0.52, exceeding expectations by $0.02. The actual sales, which came in at $138.43 million, also above experts' projections by $4.07 million.
RBC Capital analyst Michael Carroll maintained an Outperform rating and a $46 price target on STAG Industrial, Inc. (NYSE:STAG) shares on August 3.
For both personal and business clients, StorageVault Canada Inc. (NASDAQ:SVAUF) owns, operates, and leases out self storage and portable storage space. StorageVault Canada Inc. (NASDAQ:SVAUF), in addition to providing storage facilities, it provides document storage, data management, and shredding services to several government and healthcare organizations. With more than 200 facilities throughout the nation, it is the only self storage REIT that is publicly listed in Canada. Our ranking of the top stocks to purchase in the self-storage and warehousing sectors includes StorageVault Canada Inc. (NASDAQ:SVAUF) as the tenth stock.
On October 15, Himanshu Gupta, an analyst with Scotiabank, increased the price objective for StorageVault Canada Inc. (NASDAQ:SVAUF)'s from C$6.25 to C$6.50 while maintaining an Outperform rating.
On October 15, the business said that it had paid a total of $8.7 million for two additional storage facilities from different contractors, one in the GTA and the other in Alberta. StorageVault Canada Inc.
(NASDAQ:SVAUF) issued 713,537 common shares worth $3.6 million as part of the payment for the properties, which were partially paid for in cash. With the conclusion of these two deals, StorageVault Canada Inc. (NASDAQ:SVAUF) has completed transactions totaling $140.7 million.
StorageVault Canada Inc. (NASDAQ:SVAUF), like CubeSmart (NYSE:CUBE), Extra Space Storage Inc. (NYSE:EXR), Public Storage (NYSE:PSA), and WillScot Mobile Mini Holdings Corp., is a great warehouse and self storage company to invest in (NASDAQ:WSC).
Another American REIT, PS Business Parks, Inc. (NYSE:PSB), owns, develops, and manages a number of commercial assets, mostly multi-tenant industrial and office space. 28 million square feet of rental space totaling 97 properties spread throughout California, Texas, Virginia, Florida, Maryland, and Washington State are owned by the corporation.
By the end of June, 16 hedge funds that Insider Monkey was tracking had interests worth $111.1 million, an increase from 12 hedge funds which held stakes worth $112.4 million in the previous quarter. Osterweis Capital Management is the company with the greatest holding in PS Business Parks, Inc. (NYSE:PSB), with a total investment of $33.1 million.
With a price objective of $163, Wells Fargo analyst Blaine Heck raised the shares from Underweight to Equal Weight. According to the analyst, PS Business Parks, Inc. (NYSE:PSB) has recovered from the COVID-19 pandemic's effects, and its value is now comparable to that of its rivals.
In its investor letter for Q1 2021, Heartland Mid Cap Value Fund by Heartland Advisors referenced PS Business Parks, Inc. (NYSE:PSB).
CubeSmart (NYSE:CUBE), a Pennsylvania-based REIT that specializes entirely in self storage facilities, is the next company on our list of the top warehouse and self storage companies to purchase. They market their storage facilities to both residential and business customers. The business was originally created in 2004 under the name U-Store-It-Trust, but in 2011 its name was changed to CubeSmart (NYSE:CUBE). The eighth stock on our list, the firm operates more than 1000 indoor storage facilities around the country.
By the conclusion of the June quarter, 18 of the 873 hedge funds tracked by Insider Monkey were positive on CubeSmart (NYSE:CUBE), down from 25 in the first quarter. The largest investor in CubeSmart is Ric Dillon of Diamond Hill Capital (NYSE:CUBE).
The COVID-19 epidemic and economic digitization have caused a rise in e-commerce, which the firm is aggressively using. To enable users to track current business performance, CubeSmart (NYSE:CUBE) released the SmartView mobile app on October 1. Customers may use SmartView, a program launched by CubeSmart (NYSE:CUBE) to advance the self storage sector, to follow their personal information remotely.
National Storage Affiliates Trust (NYSE:NSA), a self-managed REIT that owns and manages self storage facilities in strong growth regions, is the seventh company on our list of the top warehouse and self storage companies to purchase. The firm has 864 self storage facilities spread over 36 US states and Puerto Rico, totaling 55.2 million square feet of rented storage space. Since its initial public offering in 2015, National Storage Affiliates Trust (NYSE:NSA) has developed rapidly via strategic pipeline purchases, third party purchases, and strategic joint ventures.
At the end of June, 20 of the exclusive hedge funds monitored by Insider Monkey owned holdings in National Storage Affiliates Trust (NYSE:NSA) worth $208 million, up from 14 at the end of the previous quarter with interests worth $103.4 million. The biggest shareholder in the firm is Israel Englander's Millennium Management, which has 1.82 million shares valued at $92.25 million.
On October 7, Keegan Carl of Berenberg maintained a Buy rating and set a $62 price objective for National Storage Affiliates Trust (NYSE:NSA). According to him, the market seems to be underestimating the potential for development in the REIT sector.
On August 26, the firm declared a $0.41 dividend per common share, to be paid to stockholders on September 30. This dividend represents both a 20.6% rise from Q3 2020 and a 7.9% increase from the prior quarter.
Similar to CubeSmart (NYSE:CUBE), Extra Space Storage Inc. (NYSE:EXR), Public Storage (NYSE:PSA), and WillScot Mobile Mini Holdings Corp., National Storage Affiliates Trust (NYSE:NSA) is a great warehouse and self storage company to invest in (NASDAQ:WSC).
Extra Space Storage Inc. (NYSE:EXR), a Utah-based REIT that deals in self storage facilities, is the sixth company on our list of the top warehouse and self storage companies to purchase. Extra Space Storage Inc. (NYSE:EXR), which was founded in 1977, is the second-largest provider of self-storage rental units in the country.
Extra Space Storage Inc. (NYSE:EXR) was the subject of positive hedge fund sentiment at the end of June, down from 28 at the same time last quarter. The biggest shareholder of Extra Space Storage Inc. (NYSE:EXR) is Jeffrey Furber of AEW Capital Management, with holdings worth $129.5 million.
On July 27, the company's actual FFO was $1.64, above consensus projections by $0.10. Extra Space Storage Inc.'s (NYSE:EXR) actual revenue was $321.5 million, above the projected sales by $4.18 million.
A Buy recommendation was maintained on the stock by Berenberg analyst Keegan Carl with a $198 price target because of the company's potential for long-term sustainable development.
Life Storage, Inc. (NYSE:LSI), a New York-based REIT that invests in self storage facilities, is the fifth company on our list of the best 5 warehouse and self storage companies to purchase. The corporation has 1000 storage facilities and 67 million square feet of rentable space spread across 34 states. Uncle Bob's Self Storage was the company's name until 2017, when Life Storage, Inc. (NYSE:LSI) changed its name to reflect its customer-focused strategy, steady growth, and use of intelligent technologies for sustainable self storage solutions.
There were 21 long positions in Life Storage, Inc. (NYSE:LSI) among the 873 top funds monitored by Insider Monkey at the end of June, down from 26 in the previous quarter, with reported holdings totaling $261.5 million.
On August 3, Life Storage, Inc. (NYSE:LSI) released results, topping analysts' average projections by $0.06 with an actual FFO of $1.20. The company's sales of $187.26 million was $8.97 million more than what was anticipated.
On October 7, Keegan Carl of Berenberg began coverage of Life Storage, Inc. (NYSE:LSI) with a Buy rating and a $143 price objective. On October 1, Life Storage, Inc. (NYSE:LSI) announced an increase of 16% in the quarterly dividend on common shares. Shareholders would now get a new, higher dividend of $0.86 instead of $0.74. This will provide a 3% dividend yield every year. According to Life Storage, Inc.'s (NYSE:LSI) CEO Joe Saffire, the company's solid foundation, positive financial outlook, and high projected cash flow allowed them to enhance the dividend.
AMERCO (NASDAQ:UHAL) is an American company that offers storage, moving, and property insurance services. Customers may rent trucks, trailers, portable storage and moving units, specialized rental products, and self-storage facilities from the Reno-based business. AMERCO (NASDAQ:UHAL), the fourth company on our list of the best 5 warehouse and self storage companies to purchase, has 30,000 workers spread throughout many states.
21 hedge funds, down from 23 hedge funds in the prior quarter, were long AMERCO (NASDAQ:UHAL), with reported positions of $817.1 million in Insider Monkey's extensive database of 873 hedge funds.
With 561,258 shares worth $330.8 million, David Abrams' Abrams Capital Management is the company with the highest holding in AMERCO (NASDAQ:UHAL). The 13F portfolio of Abrams contains 7.35% of AMERCO (NASDAQ:UHAL).
The business released its profits for the second quarter of 2021 on August 4. Earnings per share for AMERCO (NASDAQ:UHAL) were $17.6, above analyst average expectations by $9.54. The company's actual sales, which came in at $1.47 billion, outperformed analyst expectations by $235.82 million.
On October 8, AMERCO (NASDAQ:UHAL) announced a special $0.50 per share dividend on its common shares. On October 29, this dividend would become due.
In their investor letter for Q2 2021, Smead Value Fund, run by Smead Capital Management, addressed AMERCO (NASDAQ:UHAL). The fund said that analysts severely undervalue REITs like AMERCO (NASDAQ:UHAL), which is insulting to the top-performing equities.
Public Storage (NYSE:PSA), the biggest self storage REIT in America, is the third company on our list of the best 5 warehouse and self storage companies to purchase. With more than 2200 storage facilities located across the US, Canada, and Europe, the corporation has a total of 170 million square feet of rentable space. S&P 500 Component Public Storage (NYSE:PSA) is traded on the open market.
At the end of June, 27 of the hedge funds that Insider Monkey tracked were positive on Public Storage (NYSE:PSA), with reported positions totaling $1.08 billion. In comparison, 26 hedge funds had interests totaling $929 million in the preceding quarter. With shares worth $284.2 million, Ric Dillon's Diamond Hill Capital is the company with the largest investment in Public Storage (NYSE:PSA).
On August 3, the business stated that actual FFO was $3.15, $0.21 more than expected. At $829.32 million, the revenue also above market expectations by $24.82 million. Public Storage (NYSE:PSA) was maintained as a Hold on October 7 by Keegan Carl of Berenberg, with a price objective of $321.
In addition to providing scaled-up tailored warehouse solutions to its clients, Prologis, Inc. (NYSE:PLD) also takes care of the associated labor, operations, and transportation for clients.
Prologis, Inc. (NYSE:PLD) was the subject of 40 hedge fund ownership reports in Insider Monkey's research database at the end of June, up from 39 in the prior quarter. The biggest shareholder in the business is AEW Capital Management, which is run by Jeffrey Furber.
Prologis, Inc.'s (NYSE:PLD) actual FFO for the second quarter was $1.01 on July 19, above analysts' average projections by $0.02. However, at $1.01 billion, the revenue fell short of expectations by $9.66 million.
On October 8, BTIG analyst Thomas Catherwood increased the price target for Prologis, Inc. (NYSE:PLD) to $146 while maintaining a Buy rating. The firm's strategic capital and customer solutions were used by the analyst to forecast better profitability for the company.
The top-ranking American REIT created as a consequence of a merger between WillScot and Mobile Mini, WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC), is included first on our list of the best 5 warehouse and self storage companies to purchase. Mobile Mini provided portable storage options whilst WillScot focuses on modular space solutions.
52 hedge funds had long positions in WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC) at the end of June, up from 47 at the end of the previous quarter with holdings totaling $1.27 billion.
Andrew Wittmann, a Baird analyst, maintained an Outperform rating and a $37 price target on August 9 for WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC). The analyst said that the company's future is favorably bright due to solid asset economics and outstanding execution.
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