2023-06-15 11:10:40 ET
Wells Fargo on Thursday initiated coverage of National Storage Affiliates Trust ( NYSE: NSA ) at Underweight on near-term headwinds.
"We see near-term headwinds, including soft spring leasing, a more levered balance sheet and pockets of oversupply, although could see some opportunity longer-term," said analyst Eric Luebchow.
Secondary market/Sunbelt exposure has boosted growth rate, but this has created much more difficult comps going forward. The REIT's participating regional operator structure has created a $1.4B captive pipeline of future M&A, but this makes it a less attractive acquisition target.
Wells Fargo's 2023/2024 estimates for National Storage ( NSA ) core FFO per share are $2.80/$2.87, compared with $2.80/$2.92 consensus . "We are forecasting ~3.3% core FFO per share growth through 2025 and 3-4% same-store NOI growth, below storage peers."
Price target was set at $36, implying 2.4% potential upside to NSA's last close.
Sell-side analysts as well as SA Quant rate NSA Hold .
More on self-storage REITs
- Wells Fargo initiates CubeSmart at Overweight
- Picking A Winner In Self-Storage REITs
- A Look At National Storage Affiliates
For further details see:
National Storage Affiliates initiated at Underweight at Wells Fargo