Citi has upgraded Abacus Storage King’s short-term share price target to $1.73, up from the previous target of $1.40. This revision implies an underlying growth of almost 11 per cent for the company. Abacus Storage King is an Australian real estate investment trust (REIT) specialising in self-storage facilities. They manage and operate storage locations across Australia and New Zealand.
The upgrade follows Monday’s announcement that Abacus Storage King would grant a consortium, led by South African businessman Nathan Kirsh, access to confidential information for due diligence. This decision came after the consortium increased its takeover offer by nearly 15 per cent, bringing the total bid to $2.17 billion.
The consortium, comprising Ki Corporation (Nathan Kirsh’s family office) and New York-listed Public Storage, increased its all-cash bid to $1.65 per security. This represents an increase from their initial April offer of $1.47 per security, which Abacus had previously rejected. The revised offer has allowed the consortium to begin a detailed review of Abacus’s financial records.
According to Citi analyst Howard Penny, self-storage remains a strong growth area within Australian real estate due to high tenant demand relative to supply. Penny also noted that Abacus Storage King is undervalued compared to its global self-storage peers. On Monday, Abacus Storage King shares closed up 8.5 cents, or 5.8 per cent, at $1.56.
