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Wells Fargo Upgrades Sovran Self Storage (SSS) to Outperform

January 16, 2013 9:17 AM EST Send to a Friend
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Price: $78.51 -0.3%

Rating Summary:
    5 Buy, 4 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 10 | Down: 8 | New: 0
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Wells Fargo upgraded Sovran Self Storage (NYSE: SSS) from Market Perform to Outperform and raised its valuation range from $58-$62 to $64-$68.

The firm comments, "Like EXR, SSS outperformed in 2012 with the 2nd highest total return at +50.8% total return. See comparables above. We look for continued outperformance in 2013 based on: (1) portfolio shift remains in place, selling older, lower-growth facilities and redeploying proceeds into newer facilities carrying lease-up opportunities in generally higher-barrier markets, (2) operating tailwinds should support fundamental trends over at least the intermediate term, and (3) recent 6.7% dividend raise to $1.92/shr annualized was ahead of our +4% expectation and represented the first raise since Q3 2008; still, the FAD payout ratio on our 2013 estimated FAD ($3.05/shr) remains relatively low at 62% and could pave the way for more visibility on future raises."

For an analyst ratings summary and ratings history on Sovran Self Storage click here. For more ratings news on Sovran Self Storage click here.

Shares of Sovran Self Storage closed at $63.18 yesterday.




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