{"id":8145,"date":"2022-06-09T19:08:03","date_gmt":"2022-06-10T00:08:03","guid":{"rendered":"http:\/\/blog.jlbn.net\/?p=8145"},"modified":"2022-06-19T14:31:00","modified_gmt":"2022-06-19T19:31:00","slug":"4-reits-to-gain-exposure-to-growing-self-storage-real-estate-market","status":"publish","type":"post","link":"http:\/\/blog.jlbn.net\/?p=8145","title":{"rendered":"4 REITs To Gain Exposure To Growing Self-Storage Real Estate Market"},"content":{"rendered":"\n

George Carlin\u2019s classic bit about \u201cstuff\u201d<\/a> and where to put \u201cstuff\u201d and the hilarity of finding places for \u201cstuff\u201d is what self-storage is all about.<\/p>\n\n\n\n

The dilemma of where to put your stuff is addressed by this market and one of the best ways to take advantage as an investor is with\u00a0self-storage real estate investment trusts<\/a>\u00a0(REITs).<\/p>\n\n\n\n

Filling up storage space is not just for homeowners or renters with excess stuff\u2014businesses are looking for the same places too.<\/p>\n\n\n\n

A few REITs focused on the entire range of self-storage needs have emerged over the past few years and have done well\u2013especially when considered as alternatives to former stock market favorites, such as tech and social media stocks.<\/p>\n\n\n\n

Answering that \u201cwhere do I put my stuff?\u201d question has made these self-storage real estate investments attractive to many investors from the March 2020 pandemic scare until now:<\/p>\n\n\n\n

Public Storage<\/strong><\/h2>\n\n\n\n

Public Storage <\/strong>(NYSE: PSA<\/a>) is growing its funds from operations<\/a> (the REIT version of earnings) by 56.90% this year. The past 5-year growth rate is a much tamer 7.7%. Wall Street expects the FFO increases for this self-storage real estate investment trust to continue, although perhaps not at the current 12-month pace.<\/p>\n\n\n\n

The REIT\u2019s dividend yield is 2.42%<\/a>. The price-to-earnings ratio is higher than the market as a whole, up there at 32, but this sector has outperformed until recent weeks. It\u2019s not been that unusual for operations of these kinds to sport higher price-to-earnings ratios.<\/p>\n\n\n\n

Public Storage stock has dropped from a peak of $420 per share in April of this year down to its recent price of $330 per share.<\/p>\n\n\n\n

Extra Space Storage<\/strong><\/h2>\n\n\n\n

Extra Space Storage Inc. (NYSE: <\/strong>EXR<\/strong><\/a>) <\/strong>is another widely followed company in this sector with funds from operations up by 66.8% this year. The rate of growth over the past 5 years is 16.30%. As with Public Storage, Wall Street analysts do not expect the recent torrid pace to continue but remain positive about the stock.<\/p>\n\n\n\n

The price-to-earnings ratio of 29 is about in line with the sector but higher than that of the S&P 500<\/strong>. The average daily volume is 743,000 shares, relatively light for a New York Stock Exchange-traded security.<\/p>\n\n\n\n

Extra Space Storage currently has a\u00a0dividend yield of 3.33%<\/a>.<\/p>\n\n\n\n

CubeSmart<\/strong><\/h2>\n\n\n\n

This self-storage REIT currently has a 3.89% dividend yield<\/a>. CubeSmart\u2019s<\/strong> (NYSE: CUBE<\/a>) FFO is up by 28.30% this year and up by 19.60% over the past 5 years. The price-to-earnings ratio of 42 is higher than the group of stocks in this sector.<\/p>\n\n\n\n

The average daily volume is 1.62 million shares, relatively liquid and making it possible for larger institutions to buy (and sell).<\/p>\n\n\n\n

Life Storage<\/strong><\/h2>\n\n\n\n

Life Storage<\/strong> (NYSE: LSI<\/a>) trades on the NYSE with a price-to-earnings ratio of 34. This year\u2019s funds from operations increased by 48.90% with a positive FFO growth rate of 19.4% for the past 5 years.<\/p>\n\n\n\n

The company\u2019s dividend has a yield of 3.41%<\/a>. Life Storage is another REIT that is relatively lightly traded with an average daily volume of just 550,000.<\/p>\n\n\n\n

This one peaked in December of last year at $154 per share and now goes for $117 per share, which is quite a drop in a short period.<\/p>\n\n\n\n

Bottom Line<\/strong><\/h2>\n\n\n\n

It\u2019s important to realize that REITs, such as these, depend greatly on broader economic concerns, such as interest rates, levels of employment and the effects of inflation. Because of these factors, they can be volatile in price during times of uncertainty. On the other hand, investors may be able to benefit from the diversity REITs can offer as compared to tech or social media stock sectors.<\/p>\n\n\n\n

In the meantime, consider how valuable self-storage can be to those looking for space to keep their stuff, as comedian George Carlin described it not too long ago<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

George Carlin\u2019s classic bit about \u201cstuff\u201d and where to put \u201cstuff\u201d and the hilarity of finding places for \u201cstuff\u201d is what<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[254,3422],"tags":[888,3425],"_links":{"self":[{"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=\/wp\/v2\/posts\/8145"}],"collection":[{"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=8145"}],"version-history":[{"count":1,"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=\/wp\/v2\/posts\/8145\/revisions"}],"predecessor-version":[{"id":8146,"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=\/wp\/v2\/posts\/8145\/revisions\/8146"}],"wp:attachment":[{"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=8145"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=8145"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=8145"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}