National Storage (ASX:NSR) share price lower following AGM update

The National Storage REIT (ASX:NSR) share price is dropping lower on Wednesday despite the release of an upbeat AGM presentation…

| More on:
Packing boxes

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The National Storage REIT (ASX: NSR) share price is dropping lower on Wednesday despite the release of an upbeat annual general meeting presentation.

In morning trade the self-storage operator's shares are down 1% to $1.82.

What was in its annual general meeting update?

Along with the summary of its performance in FY 2020, management provided investors with an update on how it was performing in the new financial year.

According to the release, National Storage has started FY 2021 in a positive fashion, with its combined occupancy up 5.6% year to date to 84.5%.

Management notes that in excess of 60,000 square metres of occupancy has been added since 1 July, which is the equivalent of 12 full centres.

Also increasing in FY 2021 has been its revenue per available square metre (REVPAM) metric. At the end of the first quarter, it stood at $200. This is up from $195 at 30 June.

In respect to occupancy levels, management notes that almost half (48%) of its centres are now operating with occupancy levels above 85%. Approximately 23% are above 90% occupancy.

Another positive is that the pandemic hasn't stopped the company from pursuing its growth through acquisitions strategy. It completed eight acquisitions totalling $139 million, adding 54,100 square metres of net lettable area. Pleasingly, its forward-looking acquisition pipeline remains strong.

In addition to this, there are four expansion projects that are nearing completion and its development pipeline remains strong with seven projects expected to be completed during FY 2021.

Outlook.

National Storage is one of only a handful of companies that are confident enough to provide guidance for the full year. Though, admittedly, it has provided a reasonably broad guidance range.

Management revealed that it expects to report underlying earnings of $78 million to $84 million and underlying earnings per share of 7.7 cents to 8.3 cents per security.

This compares to underlying earnings of $67.7 million and earnings per share of 8.3 cents in FY 2020.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Fallers

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Share Fallers

Why ALS, Fisher & Paykel Healthcare, IPD, and Predictive Discovery shares are falling today

These shares are having a tough time on hump day. But why?

Read more »

A man looks down with fright as he falls towards the ground.
Share Fallers

Why Aspen, Healius, Nufarm, and Propel shares are falling today

These shares are having a tough session on Tuesday. But why?

Read more »

A worried man holds his head and look at his computer.
Share Fallers

Why Elders, James Hardie, Origin Energy, and SGH shares are falling today

These shares are starting the week in the red. But why?

Read more »

Bored man sitting at his desk with his laptop.
Share Fallers

Why Catalyst Metals, Duratec, Nufarm, and Rio Tinto shares are dropping today

These shares are ending the week in the red. But why?

Read more »

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Share Fallers

Why Dexus, Mayne Pharma, Nufarm, and Treasury Wine shares are falling today

These shares are having a tough session on Thursday. But why?

Read more »

A young man clasps his hand to his head with his eyes closed and a pained expression on his face as he clasps a laptop computer in front of him, seemingly learning of bad news or a poor investment.
Share Fallers

Why James Hardie, Mayne Pharma, Nufarm, and Resimac shares are falling today

These shares are having a tough time on hump day. But why?

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Share Fallers

Why Kogan, Monash IVF, OFX, and ResMed shares are falling today

Why are these shares taking a tumble today? Let's find out.

Read more »

A young male investor wearing a white business shirt screams in frustration with his hands grasping his hair after ASX 200 shares fell rapidly today and appear to be heading into a stock market crash
Share Fallers

Why Appen, DroneShield, Gentrack, and New Hope shares are dropping today

These shares are starting the week in the red. But why?

Read more »