Self-storage business NSR went to the market in June looking for $325m to repay debt and add liquidity to its balance sheet after its recent acquisition spree – The ~$2.5bn business currently owns 150- sites across Australian and New Zealand. Only back in March of 2020 US-listed $US54bn goliath Public Storage (PSA US) bid $2.40 for NSR which it promptly withdrew as the pandemic accelerated around the world. However if anything NSR looks cheaper / better value than ever to me, a couple of interesting thoughts / observations:
- A friend of mine just took a small 25m2 storage space for his business in Sydney but there was so little supply that only 1 of the 5 companies he contacted even bothered to call back and they had nothing suitable.
- With NSR yielding ~4% unfranked and potential suitors lurking the risk / reward looks excellent.
MM likes NSR from a risk / reward perspective
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NB MM currently holds a 4% exposure to National Storage (NSR) in our MM Active Income Portfolio and is also tempted to add to the Growth Portfolio as a “situation play” : Click here to view
