MM recently sold NSR at $2.65, the fact that it’s already 21% lower is not a sign that MM are geniuses but more testament to how weak the sector has been over the last few months. Self-storage is one area where businesses/people can cut costs in tough times but the current 25% pullback by NSR is already building in plenty of revenue contraction over the coming years. The company has an impressive footprint across Australia but diversification is no insulation if the whole country goes into a recession and property prices fall as interest rates rise.
The companies are estimated to yield 4.35% unfranked over the next 12 months which is solid but no insulation for the current downside momentum i.e. we like NSR but will remain patient for now.
MM likes NSR into further weakness
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