ASX:NSR

Stock Analysis Report

National Storage REIT

Executive Summary

National Storage is the largest self-storage providers in Australia and New Zealand, with 168 centres providing tailored storage solutions to over 60,000 residential and commercial customers.

Rewards

Trading at 12.9% below its fair value

Earnings are forecast to grow 39.74% per year

Earnings grew by 205.3% over the past year

Risk Analysis

Dividend of 4.73% is not well covered by earnings

Large one-off items impacting financial results

Shareholders have been diluted in the past year



Snowflake Analysis

Proven track record with reasonable growth potential.


Similar Companies

Goodman Group

ASX:GMG

Share Price & News

How has National Storage REIT's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: NSR has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.6%

NSR

2.3%

AU REITs

2.6%

AU Market


1 Year Return

19.0%

NSR

16.9%

AU REITs

19.8%

AU Market

Return vs Industry: NSR exceeded the Australian REITs industry which returned 14.7% over the past year.

Return vs Market: NSR matched the Australian Market which returned 19.8% over the past year.


Shareholder returns

NSRIndustryMarket
7 Day3.6%2.3%2.6%
30 Day7.9%3.4%4.0%
90 Day11.8%1.7%5.7%
1 Year25.5%19.0%22.5%16.9%25.2%19.8%
3 Year67.2%40.7%53.5%31.5%40.7%21.9%
5 Year94.1%42.7%87.5%45.7%62.0%25.5%

Price Volatility Vs. Market

How volatile is National Storage REIT's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is National Storage REIT undervalued compared to its fair value and its price relative to the market?

12.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NSR (A$2.03) is trading below our estimate of fair value (A$2.33)

Significantly Below Fair Value: NSR is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: NSR is poor value based on its PE Ratio (245.8x) compared to the REITs industry average (15.8x).

PE vs Market: NSR is poor value based on its PE Ratio (245.8x) compared to the Australian market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: NSR is poor value based on its PEG Ratio (6.2x)


Price to Book Ratio

PB vs Industry: NSR is overvalued based on its PB Ratio (11.8x) compared to the AU REITs industry average (1.2x).


Next Steps

Future Growth

How is National Storage REIT forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

39.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NSR's forecast earnings growth (39.7% per year) is above the savings rate (1.1%).

Earnings vs Market: NSR's earnings (39.7% per year) are forecast to grow faster than the Australian market (9.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: NSR's revenue (8.7% per year) is forecast to grow faster than the Australian market (3.8% per year).

High Growth Revenue: NSR's revenue (8.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NSR's Return on Equity is forecast to be low in 3 years time (6.1%).


Next Steps

Past Performance

How has National Storage REIT performed over the past 5 years?

78.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NSR has a large one-off gain of A$83.1M impacting its June 30 2019 financial results.

Growing Profit Margin: NSR's current net profit margins (3.4%) are higher than last year (1.3%).


Past Earnings Growth Analysis

Earnings Trend: NSR has become profitable over the past 5 years, growing earnings by 78.8% per year.

Accelerating Growth: NSR's earnings growth over the past year (205.3%) exceeds its 5-year average (78.8% per year).

Earnings vs Industry: NSR earnings growth over the past year (205.3%) exceeded the REITs industry -16.4%.


Return on Equity

High ROE: NSR's Return on Equity (11.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is National Storage REIT's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: NSR has a high level of physical assets or inventory.

Debt Coverage by Assets: NSR's debt is not covered by short term assets (assets are 0.2x debt).


Financial Institutions Analysis

Asset Level: NSR's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if NSR has a sufficient allowance for bad loans.

Low Risk Liabilities: NSR reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if NSR has an acceptable proportion of non-loan assets held.

Low Risk Deposits: NSR has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if NSR has an appropriate level of bad loans.


Next Steps

Dividend

What is National Storage REIT's current dividend yield, its reliability and sustainability?

4.71%

Current Dividend Yield


Dividend Yield vs Market

company4.7%marketbottom25%2.3%markettop25%5.4%industryaverage4.3%forecastin3Years5.1%

Current dividend yield vs market & industry

Notable Dividend: NSR's dividend (4.73%) is higher than the bottom 25% of dividend payers in the Australian market (2.34%).

High Dividend: NSR's dividend (4.73%) is low compared to the top 25% of dividend payers in the Australian market (5.47%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, NSR has been paying a dividend for less than 10 years.

Growing Dividend: NSR's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (44.3%), NSR's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NSR's dividends in 3 years are not forecast to be well covered by earnings (100.9% payout ratio).


Next Steps

Management

What is the CEO of National Storage REIT's salary, the management and board of directors tenure and is there insider trading?

5.7yrs

Average board tenure


CEO

Andrew Catsoulis 0

0yrs

Tenure

AU$1,542,138

Compensation

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 quali ...


CEO Compensation Analysis

Compensation vs Market: Andrew's total compensation ($USD1.06M) is about average for companies of similar size in the Australian market ($USD959.05K).

Compensation vs Earnings: Andrew's compensation has increased by more than 20% in the past year.


Board Age and Tenure

5.7yrs

Average Tenure

Experienced Board: NSR's board of directors are considered experienced (5.7 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

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Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 20.4%.


Management Team

  • Stuart Owen

    Chief Financial Officer

    • Tenure: 5.3yrs
    • Compensation: AU$757.63k
  • Pat Rogers

    General Counsel

    • Compensation: AU$512.02k
  • Andrew Catsoulis

    MD & Director

    • Compensation: AU$1.54m
  • Makala Ffrench Castelli

    General Manager of Marketing & Corporate

    • Claire Fidler

      Company Secretary & Executive Director

      • Tenure: 2.5yrs
      • Compensation: AU$345.12k

    Board Members

    • Howard Brenchley (63yo)

      Independent Non-Executive Director

      • Tenure: 5.2yrs
      • Compensation: AU$124.05k
    • Laurie Brindle

      Independent Non-Executive Chairman

      • Tenure: 6.2yrs
      • Compensation: AU$289.00k
    • Andrew Catsoulis

      MD & Director

      • Compensation: AU$1.54m
    • Anthony Keane

      Independent Non-Executive Director

      • Tenure: 6.2yrs
      • Compensation: AU$146.00k
    • Steven Leigh

      Independent Non-Executive Director

      • Tenure: 5.2yrs
      • Compensation: AU$121.00k
    • Claire Fidler

      Company Secretary & Executive Director

      • Tenure: 2.5yrs
      • Compensation: AU$345.12k

    Company Information

    National Storage REIT's company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: National Storage REIT
    • Ticker: NSR
    • Exchange: ASX
    • Founded: 2013
    • Industry: Specialized REITs
    • Sector: Real Estate
    • Market Cap: AU$1.616b
    • Shares outstanding: 788.06m
    • Website: https://www.nationalstorage.com.au

    Number of Employees


    Location

    • National Storage REIT
    • Waterfront Place
    • Level 16
    • Brisbane
    • Queensland
    • 4000
    • Australia

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    NSRASX (Australian Securities Exchange)YesStaple SecuritiesAUAUDDec 2013
    NSRCHIA (Chi-X Australia)YesStaple SecuritiesAUAUDDec 2013

    Biography

    National Storage is the largest self-storage providers in Australia and New Zealand, with 168 centres providing tailored storage solutions to over 60,000 residential and commercial customers. NSR is the first independent, internally managed and fully integrated owner and operator of self-storage centres to be listed on the Australian Securities Exchange (ASX). 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/20 10:38
    End of Day Share Price2020/01/20 00:00
    Earnings2019/06/30
    Annual Earnings2019/06/30


    Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.