Wells Fargo Initiates National Storage Affiliates Trust at Underweight
June 16, 2023
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Wells Fargo has recently initiated coverage on National Storage Affiliates ($NYSE:NSA) Trust (NSA) with an Underweight rating. NSA is a self-administered and self-managed entity that acquires, owns, and operates self-storage facilities in the United States. The company currently has external management arrangements with SmartStop Asset Management, LLC and Strategic Storage Trust, LLC for hands-on management of its properties. The company operates under the “CubeSmart” brand name and offers customers storage units, packing supplies, locks, and other related products and services. It has provided investors with stable income and capital appreciation over the years and has since become one of the largest operators of self-storage facilities in the United States.
Wells Fargo’s Underweight rating is due to its belief that NSA’s valuation is stretched, given current market conditions. Furthermore, the rating firm believes that NSA may face difficulty in maintaining its dividend growth trajectory in light of the current market environment. Despite this, Wells Fargo does agree that NSA has a strong track record of operating performance and a solid balance sheet that should help it weather the current economic uncertainty.
Stock Price
The stock opened at $34.5 and closed at $35.5, a rise of 1.1% from the previous closing price of $35.1. Overall, the initiation of NSA stock at “Underweight” by Wells Fargo could be a sign that the stock could continue to underperform in the near future, but the long-term prospects for the company remain positive. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for NSA. More…
| Total Revenues | Net Income | Net Margin |
| 822.38 | 93.32 | – |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for NSA. More…
| Operations | Investing | Financing |
| 443.85 | -584.16 | 154.64 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for NSA. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 6.19k | 3.78k | 14.66 |
Key Ratios Snapshot
Some of the financial key ratios for NSA are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| – | – | 37.0% |
| FCF Margin | ROE | ROA |
| – | – | – |
Analysis
At GoodWhale, we make it our mission to help you make smart investment decisions. That’s why we’ve done the research and analysis to give you a comprehensive review of National Storage Affiliates Trust. When it comes to risk rating, National Storage Affiliates Trust is a low risk investment in terms of financial and business aspects. This makes it a great option for the investor seeking a reliable and stable long-term return. However, even though the company is generally considered low risk, we have detected one risk warning in their balance sheet. To view this warning, be sure to register with us today so that you can see the full analysis of National Storage Affiliates Trust and other investments. More…
Peers
All four companies are publicly traded real estate investment trusts (REITs) and are among the largest self-storage providers in the United States. National Storage Affiliates Trust is the second-largest self-storage REIT by market capitalization, behind Extra Space Storage Inc.
– Extra Space Storage Inc ($NYSE:EXR)
Extra Space Storage Inc is a real estate investment trust that owns and operates self-storage properties. As of December 31, 2020, the company owned and operated 1,891 self-storage properties in 42 states; Washington, D.C.; and Puerto Rico. It has a market cap of 22.22B as of 2022.
– Public Storage ($NYSE:PSA)
Public Storage is a self-storage company that has a market cap of 51.38B as of 2022. The company has over 2,200 locations in the United States and Europe.
– CubeSmart ($NYSE:CUBE)
CubeSmart is a self-storage real estate investment trust. The company invests in self-storage properties and operates them under the CubeSmart brand. As of December 31, 2020, the company owned 1,444 self-storage properties in 38 states, Washington, D.C., and Puerto Rico.
Summary
National Storage Affiliates Trust (NSA) has recently been initiated at Underweight by Wells Fargo. The investment analysis of the company is centered around the firm’s current portfolio of storage facilities, which makes up the majority of NSA’s revenue. The company also has a strong financial position, with a debt-to-equity ratio below industry average and healthy cash flow metrics. Their dividend yield is also above the industry average.
However, there are some risks, such as potential competition from larger players in the industry, and the possibility that customer demand for storage solutions may decrease in the future. Overall, the investment analysis of NSA suggests that it is a relatively safe investment, with a good dividend yield and strong fundamentals.
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