UBS on U.S. Self Storage REITs - Q2 Wrap Up: Raising Numbers on EXR, PSA, SSS
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Price: $41.14 -0.82%
Rating Summary:
11 Buy, 13 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 23 | New: 22
Rating Summary:
11 Buy, 13 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 23 | New: 22
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UBS on U.S. Self Storage REITs - Q2 Wrap Up
Analyst, Christy McElroy, said, "We remain positive on storage fundamentals given solid demand trends (driven by market share gains among the larger operators and an uptick in new demand) and no new supply growth, and growth expectations could tick higher if acquisition volumes ramp. That said, the stocks appear fully valued, trading at premiums to private market value. Within the group on a relative basis, we favor CubeSmart (Nasdaq: CUBE) (seeing a catalyst in occupancy ramp-up) and Public Storage (NYSE: PSA) (given YTD underperformance).
McElroy noticed some familiar themes in Q2 including: 1) Market share game in full effect, but (new) demand is improving; 2) Revenue management still varies; 3) decline in operating expenses; 4) guidance moving higher (again); 5) new supply remains low = continuing compression of cap rates.
Maintains Neutral on Extra Space Storage (NYSE: EXR), PT raised from $33 to $34.
Neutral on Public Storage (NYSE: PSA), PT raised from $143 to $148.
Neutral on Sovran Self Storage (NYSE: SSS), PT raised from $51 to $55.
Analyst, Christy McElroy, said, "We remain positive on storage fundamentals given solid demand trends (driven by market share gains among the larger operators and an uptick in new demand) and no new supply growth, and growth expectations could tick higher if acquisition volumes ramp. That said, the stocks appear fully valued, trading at premiums to private market value. Within the group on a relative basis, we favor CubeSmart (Nasdaq: CUBE) (seeing a catalyst in occupancy ramp-up) and Public Storage (NYSE: PSA) (given YTD underperformance).
McElroy noticed some familiar themes in Q2 including: 1) Market share game in full effect, but (new) demand is improving; 2) Revenue management still varies; 3) decline in operating expenses; 4) guidance moving higher (again); 5) new supply remains low = continuing compression of cap rates.
Maintains Neutral on Extra Space Storage (NYSE: EXR), PT raised from $33 to $34.
Neutral on Public Storage (NYSE: PSA), PT raised from $143 to $148.
Neutral on Sovran Self Storage (NYSE: SSS), PT raised from $51 to $55.
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