VRAI - Storage REITs: Zero To Hero

• Storage REITs stumbled into the pandemic with challenged fundamentals and an outlook for near-zero growth amid oversupply challenges. Catalyzed by the suburban housing boom, self-storage demand is suddenly insatiable.
• Like a phoenix rising from the ashes, storage REITs have continued their incredible turnaround this year. Consistent with trends across the housing sector, storage rents are soaring across the country.
• Storage REITs delivered the most comprehensive "beat and raise" quarter of any REIT sector in recent memory. Every storage REIT now expects double-digit FFO and NOI growth this year.
• Forward-looking indicators and interim updates suggest that third quarter results should be similarly strong. The demographic-driven housing boom bodes well for a sustained recovery into the mid-2020s.
• Despite the rally, valuations remain compelling as the sector's strong balance sheets, low cap-ex profile, and above-average external growth potential warrant a premium multiple relative to other REIT sectors.

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