- Self-Storage REITs stumbled into 2020 as perennial underperformers with challenged fundamentals amid oversupply headwinds and a strained outlook which appeared certain to deteriorate further amid the pandemic.
- Reversal of fortunes? Self-storage REITs were unexpected leaders in 2020, producing the second-best returns of any property sector. Four-of the six storage REITs boosted their dividends above pre-pandemic rates.
- Storage demand has rebounded sharply since mid-summer, helped by a red-hot housing market. The demographic-driven housing boom bodes well for a continued recovery into the mid-2020s.
- Storage demand is driven by "change" and there will be no shortage of that as mobility rates normalize post-pandemic. Recent earnings reports and interim updates showed momentum building into 2021.
- While supply growth remains a headwind, our long-term outlook remains favorable. Same-store metrics are poised to turn positive next year while external growth opportunities should remain plentiful.
For further details see:
Storage REITs: Riding The Housing Boom