National Storage REIT
National Storage released a result of $24.3mill underlying profit (8.2cps), in line with guidance. Contribution from acquisitions drove a 39% increase in revenue, which in turn underwrote the profit result.
Operationally, National Storage noted mixed trading conditions, with discounting prevalent across the storage sector. National Storage continued its focus on optimally balancing occupancy and rental rates. Given this, the 3% rental rate increase achieved (excluding acquisitions and developing centres) was positive.
Total assets under management increased significantly over FY15, from $549mill to $740mill. This will drive the expected earnings step-up in FY16; an increase of 19% to 21% over FY15. With additional securities on issue this equates to 8.7 to 8.8 cps (6.0% to 7.5% growth per security).
- Fleur Graves