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Global Self Storage: Overlooked Micro-Cap Self Storage Play

Sep. 15, 2023 5:53 PM ETGlobal Self Storage (SELF)10 Comments
AlmaStreet Capital profile picture
AlmaStreet Capital


  • Global Self Storage has seen a decline in price due to industry-wide challenges, but its portfolio of properties in secondary and tertiary cities with strict zoning laws offers potential for growth.
  • The company has strong barriers to entry, unique spaces, and pricing power due to its focus on areas with limited self-storage space and strict zoning laws.
  • The possibility of an acquisition, portfolio expansion, and continued dividends make Global Self Storage an attractive investment opportunity.

Reit inscription on a wooden block. Real estate investment trust concept. Company that owns, operates, or finances income-generating real estate. Magnifying glass

Andrii Yalanskyi


Global Self Storage (NASDAQ:SELF) is a niche self-storage REIT which has seen its price decline by over 20% since 2022 highs and has generally traded within a small window over the past few years, due to its

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AlmaStreet Capital profile picture
Research focused on GARP stocks with a long-term investment horizon. Articles edited by MS Research

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Comments (10)

NantanLupan profile picture
Why would a self storage company of 12 properties go public?
Que Analyst profile picture
@NantanLupan Yeah its one of those companies that really shouldn’t be public, but luckily they don’t really overpay management and CEO has 8% ownership. T

The main reason for a small REIT to go public though is it allows them to issue shares and thus make Acquisitions and additions more pragmatically with a lower cost of capital. It was originally formed from a CEF that transitioned to a REIT in order to try and grow, which they have done from 4 to 12 properties over the last decade.

The reason why they can’t acquire more is not only current interest rates, but its also the fact cap rates haven’t caught up, in the meantime they have made many additions to properties such as their Lima Ohio property expansion in April I think, and their Millbrook Expansion in 2021, among other smaller projects.
NantanLupan profile picture
@Que Analyst So they're a minnow in search of a whale? Rather than building their own new facilities then leasing up and refinancing, they're searching for acquisitions, believing they can issue new shares for deals that are accretive to FFO/AFFO?

They added 8 properties over the past 10 years. Were all by acquisition or were any built from scratch?

Is it possible that insiders just went public to cash out?
Que Analyst profile picture
@NantanLupan they haven’t cashed out rlly and still hold interest, also they were originally an investment company (CEF) then switched to REIT, these properties weren’t part of an original private company they and other investors owned, they were acquired, renovated, and then rented out.
This little stock has been a very reliable cash calf for me.
Que Analyst profile picture
@imranfat yeah with current FFO multiple of 14x which includes mortgage principal + interest and GDP level rent escalations long-term, it is definitely an attractive investment. Also since the mortgage is just payments already included in FFO, it has 9.5M in cash/invest lowering risk. Ths all makes it a nice cash calf with a 5.8% yield and 7.3% FFO yield and a strong balance sheet with 25M in expansion liquidity once interest rates go down.
cpcasazza profile picture
I agree. It’s undervalued and not much downside. I’m dripping for now. Wouldn’t be surprised by a takeover, but not expecting one either.
@cpcasazza management not interested in being taken over
Que Analyst profile picture
@valuecat Yeah it is a bit of an annoyance, but at the same time, Mark Winmill CEO owns 8.3% or 4M through himself and his family office (I think), and VPs own roughly 1x of their salaries. Also the CEO makes 400k total comp which could be maybe a 100k lower considering his ownership, but executive comp as a whole is pretty fair. I do think that if they were approached with a good enough offer, they would sell. I think the bigger problem in them selling is first of all they are branded a good amount and so it would be hard to change and not affect local brand equity, and the even bigger problem that an 11 property portfolio isn’t that big in terms of public self storage size. I mean PSA routinely acquires 1B+ portfolios and even NSA, smallest SS REIT acquires 350M-500M a year in properties. This really just leaves medium size PE RE players. It seems like an easy buy and sell if you just do a public advertised takeover.
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