Do you know about the real estate market where self-storage is done for growth? If you don't know about this, you must read ahead as this will be helpful.
This industry or the real estate market offers solutions to the problem of where to keep your belongings, and one of the best methods for investors to profit is through self-storage REITs and real estate investment trusts.
Over the past few years, a small number of REITs with a broad focus on self-storage needs have appeared. These REITs have done well, particularly when viewed as alternatives to erstwhile stock market favourites like tech and social media stocks.
Let us know about the top self-storage companies in Greenfield, Indiana & in the USA, which are listed below-
- StorageMart
- Storage Asset Management
- Merit Hill Capital
- U – Haul
- National Storage Affiliates
- Cube Mart
- Bottom line
- Life Storage
- Public Storage
- Extra Space Storage
Let us discuss some of them in detail-
1. Public Storage:
Public Storage, a long-time industry pioneer, has achieved the top spot on our ranking. By September 2021, the company will have 186 million net rentable square feet under its belt, and its recognizable orange signs can be seen in 39 states.
Based on the recent action, Public Storage's portfolio is destined to expand even further: Approximately 26 million square feet of self-storage facilities have been bought by the REIT since 2019 for a total of $6.3 billion in acquisition and development activity.
This year, Public Storage's funds from operations are expanding by 56.90%. Wall Street anticipates that the FFO growth for this real estate investment trust will continue, albeit possibly not at the same rate as the previous year.
Although the price-to-earnings ratio for this sector is higher than the market as a whole, at 32, it has excelled up until recent weeks. Check the Self-Storage Facility Worth before investing your hard-earned money in it.
2. CubeSmart:
The dividend yield for this self-storage REIT is now 3.89%. The FFO of CubeSmart (NYSE: CUBE) has increased by 19.60% over the last five years and by 28.30% this year. The 42 price-to-earnings ratio is more significant than the firms in this sector.
With a highly liquid market and a daily volume of 1.62 million shares, larger institutions can purchase (and sell).
3. Bottom Line:
It is crucial to understand that REITs like these rely heavily on broader economic factors like interest rates, employment levels, and the impact of inflation. They may have variable pricing because of these factors during uncertain times.
As opposed to the tech or social media stock sectors, however, investors may be able to gain from the variety REITs can provide.
4. Life Storage:
The price-to-earnings ratio of Life Storage, which is traded on the NYSE, is 34. Funds from operations this year climbed by 48.90%, with favourable FFO growth rates for the previous five years of 19.4%.
The yield on the company's dividend is 3.41%. Another REIT with a comparatively low trading volume—550,000 shares per day on average—is Life Storage.
This one reached its top in December of last year at $154 per share and is currently trading for $117 a share, which is a significant decline over a short period.
5. Extra Space Storage:
Another well-known company in this industry, Extra Space Storage Inc., saw an increase in funds from operations of 66.8% this year. Growth over the previous five years has been 16.30%.
Like Public Storage, Wall Street analysts are optimistic about the stock but do not anticipate the current frenetic pace to continue. The price-to-earnings ratio of 29 is higher than the S&P 500 but in line with the sector.
743,000 shares are exchanged per day, a low volume for security listed on the New York Stock Exchange. The dividend yield for Extra Space Storage right now is 3.33%.
Now we will see the largest self-storage companies in the US or USA based on the annual revenue of the company (2018-2019) and by several facilities, owned or managed:
- Public Storage: $2.68 billion with 2,844 facilities owned.
- Extra Space Storage: $1.3 billion with 1,878 facilities owned.
- CubeSmart: $643.9 million with 1,261 facilities owned.
- Life Storage: $574.7 million with 905 facilities managed.
- National Storage Affiliates Trust: $387.9 million with 948 facilities managed.
Although public storage is a vital and vast sector. These self-storage companies really have solutions to the problem of where and how to manage your belongings. I hope the above content was informational and impressive.
