The calculations below outline how an intrinsic value for
National Storage REIT
is arrived at by discounting future cash flows to their present value. We use
analyst's estimates of cash flows going forward 5 years.
See our documentation to learn about this calculation.
National Storage REIT is a Real Estate Investment Trust (REIT), we use funds from operations (FFO) or adjusted funds from operations (AFFO) instead of levered free cash flow for REITs. This excludes depreciation and borrowing. Ideally analysts estimates of AFFO are used, where these aren't available we use FFO.5 year cash flow forecast
|Funds From Operations (FFO) (AUD, Millions)||A$0.00||A$49.20||A$51.70||A$54.40||A$55.10|
|Source||Extrapolated @ (20%, capped from 22.25%)||Analyst x1||Analyst x1||Analyst x1||Analyst x1|
Discounted (@ 8.55%)
Present value of next 5 years cash flows:
Terminal Value = FCF2021 × (1 + g) ÷ (Discount Rate – g)
Terminal Value = A$55 × (1 + 2.76%) ÷ (8.55% – 2.76%)
Terminal value based on the Perpetuity Method where growth (g) =
Present value of terminal value:
Equity Value (Total value) = Present value of next 5 years cash flows +
A$806 = A$158 + A$649
Value = Total value / Shares Outstanding (A$806 / 516)Discount to Share Price
Value per share:
Current discount (share price of A$1.55): 1.12%
The discount rate, or required rate of return, is estimated by calculating the Cost of Equity.
Discount rate = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
Discount rate = 8.55% = 2.76% + (0.8 * 7.24%)
The Levered Beta is the Unlevered Beta adjusted for financial leverage. It is limited to 0.8 to 2.0 (practical range for a stable firm). Note the market value of equity is used not the book value (A$797,469,794).
Levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
0.657 = 0.417 (1 + (1- 30%) (81.95%))
Levered Beta used in calculation = 0.8
This company is a bank or financial institution, which is analysed accordingly below.
Mr. Andrew Catsoulis serves as the Managing Director of National Storage Holdings Limited at National Storage REIT. Mr. Catsoulis serves as Company Secretary of Stowaway Self Storage Pty Ltd. He is a qualified finance, commercial and property lawyer who has worked for major law firm both in Australia and overseas. He is also a qualified project manager with considerable property development experience. He has over 18 years of specific self-storage industry expertise in areas of acquisition, development, integration and operation of 'greenfield' and developed self-storage centres. He was instrumen in the successful acquisition and integration of the original National Storage Group portfolio. He serves as Director at Stowaway Self Storage Pty Ltd, Storcat Pty Ltd., NS Saleco Pty Ltd and National Storage REIT. He has been a Director of National Storage Holdings Limited since November 1, 2013.
Average tenure of the National Storage REIT management team in years:
Average tenure of the National Storage REIT board of directors in years:
National Storage REIT engages in the ownership and operation of self-storage centers in Australia and New Zealand. The company owns and operates 116 self-storage centers; and manages 65,000 storage units through 622,000 square meters of net lettable area. It offers business storage, records management, climate controlled wine storage, vehicle storage, vehicle and trailer hiring, packaging, insurance, and other value added services. The company provides its solutions to approximately 40,000 residential and commercial customers. National Storage REIT is headquartered in Brisbane, Australia.
|Name:||National Storage REIT|
National Storage REIT
71 Eagle Street,
|Exchange Symbol||Ticker Symbol||Security||Exchange||Country||Currency||Listed on|
|ASX||NSR||Staple Securities||Australian Securities Exchange||AU||AUD||19. Dec 2013|