Life Storage, Inc.NYSE
Fri, Dec. 2, 11:51 AM
- The financial sector is taking a breather from its staggering post-election run, with a post-jobs report dip in rates a good enough excuse for satiated bulls to cash in some chips.
- XLF -1%, KBE -0.7%, KRE -0.7%.
- Individual issues: Bank of America (BAC -1.8%), Morgan Stanley (MS -1.2%), Citigroup (C -1.9%), M&T (MTB -1.1%), Flagstar (FBC -1.7%), Fifth Third (FITB -1.6%), PNC Financial (PNC -1.4%), Prudential (PRU -1.1%), Lincoln National (LNC -1.9%), Schwab (SCHW -2.1%), State Street (STT -1.8%)
- No longer part of the financial sector as far as the GICS classification, REITs are enjoying the respite in rates. IYR +1.6%, VNQ +1.6%
- Realty Income (O +4.1%), Vereit (VER +3%), Omega Healthcare (OHI +3.2%), Welltower (HCN +3.5%), HCP (HCP +2.7%), Universal Health (UHT +4.4%), W.P. Carey (WPC +2%), Lexington Realty (LXP +2.5%), Essex Property (ESS +1.2%), Aimco (AIV +1.5%), General Growth (GGP +2.6%), Brixmor (BRX +1.6%), Federal Realty (FRT +1.8%), Kimco (KIM +1.2%), Public Storage (PSA +1.4%), Life Storage (LSI +1.4%), Boston Properties (BXP +1.2%), Stag Industrial (STAG +2.4%).
Fri, Nov. 11, 12:53 PM
- Surging interest rates this week had investors pulling money from income favorites like REITs and utilities, and rotating into yield-starved banks, insurance companies, and brokerages.
- With the bond market closed for Veteran's Day, rates are taking the day off, and REITs and utilities (XLU +0.3%) are seeing a sizable bounce. VNQ +1.1%, IYR +0.9%
- Retails rates are thought to be more exposed than most to rising rates, and they were among the hardest hit. Today: Realty Income (O +1.6%), Vereit (VER +4.3%), National Retail (NNN +1%), Store Capital (STOR +4.3%)
- Other equity REITs: Omega (OHI +0.5%), LTC Properties (LTC +2%), Healthcare Trust (HTA +2.2%), Gramercy Property (GPT +3%), Gladstone Commercial (GOOD +4.3%), Lexington Realty (LXP +2.4%), General Growth (GGP +1%), Simon Property (SPG +1%), Retail Opportunity (ROIC +2.5%), Life Storage (LSI +1.4%), First Potomac (FPO +7.5%), Stag Industrial (STAG +1.5%)
Mon, Nov. 7, 10:30 AM
- Now it's the team at Evercore ISI, and analyst Steve Sakwa says the "noisy" Q3 earnings season has created buying opportunities, with AFFO multiples at their lowest since Dec. 2013, and implied cap rates about 400 basis points above the 10-year Treasury yield (vs. a typical 320 bps).
- Noting either strong fundamentals or attractive valuations, he's a fan of Paramount Group (PGRE +0.2%), General Growth (GGP +1.5%), Vornado (VNO +0.9%), Prologis (PLD +1.4%), CubeSmart (CUBE +1.8%), Brixmor (BRX +0.7%), Life Storage (LSI +2%), Simon Property (SPG +0.3%), Mack-Cali (CLI +1.2%).
- Previously: American Assets, Macerich, and DDR win sell-side upgrades (Nov. 7)
- Previously: Barron's: REITs are on sale (Nov. 5)
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Wed, Nov. 2, 4:30 PM
Tue, Nov. 1, 5:35 PM
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Tue, Oct. 4, 9:06 AM
Fri, Sep. 9, 11:32 AM
- The former Sovran Self Storage has had a rough run of it as it absorbs its $1.3B purchase of LifeStorage (Sovran has been renamed Life Storage, and its new symbol is LSI).
- The stock looks to have put in at least a temporary bottom in late August, and has rallied about 6% since. Citi today upgrades to Buy from Neutral. The $105 price target suggests about 13.5% upside. Shares are down 0.1% today.
Wed, Aug. 10, 11:36 AM
- The previously outperforming REIT sector has been under pressure since April, with all four major names now in the red for the year.
- Performing worst is Sovran Self Storage (NYSE:SSS) - down 13.9% YTD - particularly after it cut guidance earlier this month as it absorbs the LifeStorage acquisition. Jefferies today downgrades to Hold From Buy, with price target cut to $100 from $135 (current is $92.39).
- Jefferies keeps Extra Space Storage (NYSE:EXR) and CubeSmart (NYSE:CUBE) each at Buy, but lower the PT on EXR to $105 from $115, and on CUBE to $37 from $39. There's no action on Public Storage (NYSE:PSA).
- A much smaller industry player is National Storage (NYSE:NSA), and it's higher by 60% since its May 2015 IPO, including a 22% YTD gain. Jefferies rates this high-flyer a Hold, and today lowers the PT to $22 from $24 (current is $20.79).
Thu, Aug. 4, 9:38 AM
- Adjusted FFO of $55.6M or $1.32 per share vs. $44.2M and $1.24 one year ago. This year's per share result was lowered by $0.09 thanks to the equity and debt issuance for the $1.3B LifeStorage acquisition (closed on July 15). Absent that, AFFO was $1.41 per share.
- Sovran this month to rebrand its "Uncle Bob's Self Storage" to "Life Storage." Corporate name will change to "Life Storage, Inc," and ticker will change to LSI from SSS.
- Same-store revenues up 5.7% Y/Y, with occupancy up 30 bps and rents up 5.2%. Same-store operating expenses up 3.3%; Same-store NOI up 6.8%.
- Full-year AFFO guidance of $5.30-$5.34 per share; Q3 of $1.37-$1.39. Houston market is a drag. NOI growth there is expected at 3.5-4.5% vs. company-wide NOI growth of 6.5-7.5%. Houston makes up about 9.4% of overall NOI.
- CC is underway
- Previously: Sovran Self Storage beats by $0.09, beats on revenue (Aug. 3)
- SSS -5.4%
Wed, Aug. 3, 4:26 PM
Tue, Aug. 2, 5:35 PM
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Thu, Jul. 28, 12:22 PM
- Results from Extra Space Storage (EXR -4.7%) and Public Storage (PSA -3.6%) didn't leave a whole lot to be desired, but investors are using the news to further lighten up on what had been among the strongest REIT sectors.
- Public Storage is still higher by 17.75% Y/Y, and Extra Space by 20.6%.
- Others today: Sovran Self Storage (SSS -2%), CubeSmart (CUBE -1.9%), National Storage (NSA -1.7%)
Tue, Jul. 5, 4:21 PM
Wed, Jun. 8, 10:35 AM
- Extra Space Storage's (NYSE:EXR) 2016 Q1 same-store NOI growth of 12.3% outpaced that of Public Storage (NYSE:PSA) at 10.4%, and Sovran (NYSE:SSS) at 9.9%, but fell short of CubeSmart (NYSE:CUBE) at 12.9%.
- Over the last 41 quarters, EXR's 6.7% average same-store NOI growth stands against 4.6% for PSA, 5.1% for SSS, and 4.2% for CUBE.
- Today's $0.78 quarterly dividend compares to about $0.15 five years ago.
- The 10-year return of EXR (which includes the market crash) is 841.5%, tops among REITs - 2nd place is Digital Realty at just 490%. EXR is more than a 10-bagger since the 2009 bottom.
- For the future, the company still sees plenty of opportunity for sector consolidation, noting it, Public Storage, Sovran, and CubeSmart control just 15.7% of the market. While there is construction going on, it is muted, says management, so constrained supply will continue to be a tailwind.
- REITWeek presentation slides
Thu, May 19, 8:23 PM
- Sovran Self Storage (NYSE:SSS) has priced a public offering of 6M shares, at $100/share.
- That's about 3.2% below today's closing price of $103.35. The company expects proceeds of about $578.4M, to be used to help buy the country's No. 6 self-storage provider, LifeStorage.
- Earlier, the company announced a deal to buy LifeStorage for about $1.3B in cash.
- Underwriters have a 30-day option to buy up to 900,000 more shares; the offering should close next Wednesday.
- Shares fell 7.2% today and volume accelerated into the close.
Thu, May 19, 7:15 AM
- Sovran Self Storage (NYSE:SSS) agrees to acquire LifeStorage for roughly $1.3B in cash. Based in Roseville, CA, LifeStorage is the 6th-largest private owner and operator of self storage facilities in the U.S., with 92 properties in nine states.
- Sovran has secured $1.35B in bridge financing to show the sellers it can close, but intends to raise permanent equity and debt to fund the deal.
- The purchase will add to Sovran's positions in some existing markets, giving it 25 more facilities in Chicago, 19 across major markets in Texas, and three each in Orlando and L.A.
- There's also the entrance into new markets like NoCal and Las Vegas.