Despite a fall in occupancy and rate, National Storage REIT reported a solid FY20 result and has weathered the recent covid-19 challenges, observes Morgans.
The analyst predicts further acquisitions with balance sheet capacity around $500m, following the recent capital raising.
FY20 distributions totaled 8.1 cents.
Morgans calculates FY21 EPS guidance of 7.7-8.3 cents equates to implied underlying earnings of $78-84m and assumes a FY21 DPS of 7.7 cents.
Over July/August, key metrics have seen an improvement, with enquiries and move-ins almost back to pre-pandemic levels.
The Hold rating is maintained. The target price is increased to $1.83 from $1.61.
Sector: Real Estate.
Target price is $1.83.Current Price is $1.87. Difference: ($0.04) – (brackets indicate current price is over target). If NSR meets the Morgans target it will return approximately -2% (excluding dividends, fees and charges – negative figures indicate an expected loss).
