- Self Storage REITs have been unexpected leaders throughout the pandemic. Riding the tailwinds of the single-family housing boom, storage REITs are one of four property sectors in positive territory this year.
- Storage REITs stumbled into 2020 with challenged fundamentals and a strained outlook after years of relentless supply growth, which led to intense competition between operators and downward pressure on rents.
- Contrary to early predictions, rent collection has remained essentially spotless throughout the pandemic, and dividends have also remained untouched. Payments are essentially "collateralized" by a renter's possessions.
- After a sharp slowdown in leasing volumes during the "shutdown months," interim updates indicated that demand has rebounded sharply since mid-summer, helped by a red-hot housing market.
- While storage REITs are no longer the perennially outperforming "darlings" of the REIT sector, our long-term outlook remains favorable. We see opportunities for these REITs to consolidate amid the recent industry struggles.
For further details see:
Storage REITs: Housing Boom Brightens Outlook