Sovran Self Storage: Capturing Profits With Self Storage REITs
Bennington Investment Ideas
Bennington Investment Ideas
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.
Tue, May 17, 9:44 AM
Wed, Apr. 27, 4:27 PM
Tue, Apr. 26, 5:35 PM
- ACGL, AEL, AF, ALGT, AMKR, AMP, ANIK, AR, ASGN, AVB, AVG, BCR, BGC, BKCC, BLKB, CACI, CAKE, CAVM, CBL, CDE, CGI, CLI, CMO, CMPR, CNMD, CNO, CRY, CSGP, CVTI, DGI, DLB, DMRC, DRE, DTLK, DWRE, DXCM, ECHO, EFX, ELY, EQY, ESRT, ESV, EXTR, FB, FIX, FNF, FORM, FORR, FR, FSLR, GG, HOLX, HTCH, HY, IBKC, INFN, IPHS, KEX, KIM, KRA, KRC, KS, LLNW, LOCK, LOGI, LQ, MANT, MAR, MC, MEOH, MMLP, MN, MSTR, MTGE, NE, NEU, NGD, NTGR, NVDQ, OIS, ORLY, OTEX, PEB, PPC, PRXL, PYPL, QDEL, QEP, QGEN, RCII, RGLD, RNG, ROIC, SCI, SFLY, SGI, SIMO, SNDK, SPRT, SSS, STR, TAL, TER, TILE, TS, TTEK, TTMI, TXN, TYL, UHS, UNM, VAR, VRTX, WCN, WIRE, WLL, WRE, WSR, XL, XLNX
Mon, Apr. 4, 9:24 AM
Mon, Feb. 29, 11:11 AM
- After a nice period of outperformance from Sovran Self Storage (SSS -0.1%), Everocre ISI heads to the sidelines, downgrading to Hold from Buy. The $111 price target compares to the current level of $108.53.
- Evercore started coverage on SSS with a Buy just after Labor Day, and the stock's up by about 25% since.
Wed, Feb. 17, 4:29 PM
- Q4 adjusted FFO of $46.39M or $1.28 per share vs. $38.3M and $1.13 one year ago. Full-year AFFO per share of $4.94 vs. $4.36 in 2014.
- Same-store revenue (399 stores) of 6.7%; operating expenses up 4.6%; NOI up 7.8%. Average occupancy of 90.5% up 120 basis points.
- Full-year 2016 AFFO per share guidance of $5.45-$5.51, with Q1 at $1.17-$1.19. NOI growth should be 7-8%. Houston makes up 10% of expected NOI next year, and its NOI growth should be 6-7%.
- Previously: Sovran Self Storage FFO in-line, beats on revenue (Feb. 17)
- Conference call tomorrow at 9 ET
- SSS flat after hours
Wed, Feb. 17, 4:20 PM
Tue, Feb. 16, 5:35 PM| Tue, Feb. 16, 5:35 PM
Mon, Jan. 25, 4:26 PM
- The company sold 2.645M shares (including the underwriter greenshoe of 345K shares) for $105.75 each. Among the uses of the money will be to help fund pending property acquisitions, likely meaning the $371M purchase of 25 facilities in eight states, including California.
- SSS closed today at $108.60.
Tue, Jan. 19, 4:15 PM
- The company has agreed to purchase 25 facilities in eight states for a total purchase price of $371M. Sovran (NYSE:SSS) also closed on five buys in Q4 and January for roughly $27M, bringing the total under contract/closed to 30.
- Eight of those under contract are in the Los Angeles area - a new market for Sovran. Seven of these are stabilized and account for $167M of the purchases, and the eighth is a newly-developed store in North LA County being purchased for $18.6M.
- CEO David Rogers: "While its taken us a while to get there, we are thrilled to enter the Los Angeles market."
Fri, Jan. 8, 9:46 AM
- These income favorites are known for having had a tough time of it in 2015, in part thanks to worries about rising interest rates. MKM's Jonathan Krinsky, however, notes REITs have been relatively outperforming the S&P 500 for months and have just broken out to nine-month highs versus the broader market.
- Krinsky's a technician, so he's staying with the trend and recommending going long REITs (NYSEARCA:IYR) versus the S&P 500.
- Turning to individual REIT sectors and names, he's overweight apartments (AIV, AVB, ESS, EQR, MAA), UDR), storage (CUBE, EXR, PSA, SSS), and shopping malls (KIM, MAC, FRT, REG, IRM).
- He's equal weight data centers (buys: CONE, DCT, QTS, sells: EGP), diversified (buys: AMT, CCI, DLR, DRE, PSB, sells: EQIX, LPT, STAG, VNO, WY, WPC).
- He's underweight office property (buys: EQC, sells: HPP, FSP, GOV, KRC, OFC, PKY, SLG), hotels (sells: AHT, FCH, HPT, HST), mREITs (sells: ARR, STWD, RSO, buy: ABR), healthcare (sells: HCP, MPW, OHI, VTR, buys: DOC, HR, HTA)
Mon, Jan. 4, 4:32 PM
- Sovran (NYSE:SSS) raises the borrowing limit on its bank revolver by $200M to $500M. All other material terms remain the same and the maturity date is still Dec. 2019.
Sovran Self Storage, Inc. is a real estate investment trust, which engages in the acquisition, ownership and management self storage properties. The firm operates under the trade name Uncle Bob's Self Storage. It also offers truck rental, office and rental space, and vehicle storage. The company... More
Industry: REIT - Industrial
Country: United States
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