2024-05-27 12:34:08 ET
Summary
- Big Yellow Group is the largest self-storage business in the UK and has shown double-digit outperformance in the market.
- The UK self-storage market remains underpenetrated, offering growth and consolidation potential.
- The valuation for Big Yellow is no longer appealing, trading at a higher P/AFFO than comparable companies like Public Storage.
Dear readers/followers
You may recall that a number of months ago, back in March, I started covering a UK-based REIT called Big Yellow (BYLOF). I considered the company a "BUY" at the time, and now I'm updating given a double-digit outperformance to market. I'm downgrading the company at this time for reasons related to company valuation - in layman's terms, it's become too expensive at this particular time.
The Big Yellow Group is the largest self-storage business in the UK. I've recently covered other UK REITs as well that you'll see articles on here on Seeking Alpha, and I believe the UK market offers a very compelling, low-valuation entry into what is without a doubt - to my mind - qualitative real estate plays....
Read the full article on Seeking Alpha
For further details see:
Big Yellow Has Meant Big Outperformance (Rating Downgrade)