National Storage Affiliates Trust (NYSE: NSA) is a self-storage REIT that owns, operates and acquires 1076 self-storage properties in the largest metropolitan areas throughout 42 states and Puerto Rico. It has almost 70 million square feet of rentable space.
The Greenwood, CO-based company was founded in 2013 and initiated its IPO on the New York Stock Exchange (NYSE) in 2015 at $9.52 per share.
National Storage Affiliates Trust’s annual dividend is $2.20, for a yield of 5.2%. Over the past five years, the dividend has been raised 11 times and grown substantially by 96%. There have been no cuts nor elimination of the dividend during this time.
The 52-week price range for National Storage Affiliates Trust is $41.83 to $70.04. The stock’s most recent high in mid-August was $57.66, but it’s fallen over 26% since.
While revenue has increased in each of the past three quarters, the earnings per share (EPS) have been relatively stable in that same time frame. But like so many other REITs, higher interest rates and recession fears have driven its price lower. In addition, despite an overall 41% rise in EPS year-over-year, National Storage Affiliates Trust has fallen short of analyst EPS estimates for four consecutive quarters. However, in three of those four quarters, the FFO surpassed analyst estimates.
But looking at its longer-term performance, National Storage Affiliates Trust has produced tremendous growth and is up over 119% in the last five years. It has outperformed several other self-storage REITs in total performance.
Despite the recent price weakness, Evercore ISI Group’s Samir Khanal recently maintained an Outperform rating on National Storage Affiliates Trust, but lowered his target price from $60 to $58. From National Storage’s price of $40.98, this represents a potential 41.5% appreciation, making it the self-storage REIT with the highest upside, according to recent analyst ratings.
Given the five-year appreciation, dividend growth and upside target price potential, National Storage Affiliates Trust could be a huge winner going forward for investors with a longer-term perspective. The second quarter funds from operations (FFO) was $0.71 per share, 29.1% higher than the $0.55 during the second quarter of 2021, and easily covered the quarterly dividend of $0.55 per share.
Investors are cautioned to do their own due diligence when researching stock purchases, and not to rely solely on the advice of brokerage or bank analysts. The best of these analysts are only right about half the time. The price targets are best utilized simply as guides for a stock’s future potential.
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