Freehold: The market is mispricing National Storage

Within our universe we think the market is incorrectly pricing a ‘yield + growth’ situation for a company called National Storage (NSR). NSR generates income from its portfolio of ~80 self-storage sites across Australia, distributing to investors bi-annually. Future earnings growth is generated from increasing rents, as well as further acquisitions of self-storage assets. We concede that the difficult operating environment for NSR in the short term could see some potential share price volatility. Nonetheless, it is likely these operational headwinds will eventually subside, and the company will continue to create value over the medium to long term consolidating the Australian self-storage sector. Freehold Funds remain long term holders of NSR.