Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.
Thanks for your efforts ongoing! You timed your exit from SGP very well, but it appears to have rapidly stabilised and if rates are now close to pausing, where would you consider an appropriate entry point. NSR has held up well, but ABP (diversified, but large exposure to Kings Storage) has struggled. Do you see value (or relative value) in one over the other.
Hi Tony,
National Storage (NSR) is the highest quality / purest way to play self storage which is a space we like. Around ~$2.55 is reasonable risk/reward. Abacus (ABP) is cheaper however it has other components to it, retail + office, the latter we like but hold already through Dexus (DXS) which we remain positive on.
In terms of Stockland (SGP), with no earnings growth (in our view) and a multiple slightly expensive relative to its own history, we think the dividend, which is sustainable, will be the extent of returns for the next 12 months. We’d only be interesting into further weakness below ~$3.70
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