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More in store: NSR looks for capital to drive major expansion plans

Business

Brisbane based National Storage REIT will raise $325 million from shareholders to strengthen its balance sheet and drive its expansion.

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The company, which owns storage centres, said strong market conditions meant its acquisitions in 2021 had tallied to $373 million and it was continuing the expansion to provide long-term revenue.

It has also upgraded its full year earnings guidance from 8.1 cents a share to between 8.5 and 8.6 cents a share. For 2022 it was anticipating underlying growth to its earnings per share of 8 per cent or more.

The equity raising will be done through a 1-for-6.27 accelerated, non-renounceable entitlement offer at $2 per stapled security.

The funds will be used to repay debt and reduce gearing from about 35 per cent to 24 per cent.

Managing director Andrew Catsoulis said all states and territories in which it operated were performing strongly and occupancy was more than 80 per cent and more than a third of its centres were operating at 90 per cent occupancy.

“We attribute this strong operational result to a positive macro-economic environment as well as a number if internal operational improvements over the past 12 to 18 months,” Catsoulis said.

The company had conducted 27 acquisitions which consisted of 24 storage centres and three development sites which added a 134,400 square metres of net lettable area to the portfolio.

“Given the ongoing compression in yields across the self storage sector and our strong growth in rate, revenue per available per square metre and occupancy, NSR believes it is an opportune time to expedite the pace of its development, expansion and centre revitalisation programs,” Catsoulis said.

“With 70 per cent of our centres now operating at or near stabilised occupancy it is important that we continue to grow our built capacity in a sustainable fashion so as to generate ongoing opportunities to grow underlying earnings per security and net tangible assets.”

 

 

 

 

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