Should I Buy NSR REIT for the Dividends? HighlightsNational...

Should I Buy NSR REIT for the Dividends? Highlights

National Storage REIT, NSR, has delivered excellent returns for investors over the past decade, averaging 11.7% annually. And this is before excluding its lucrative dividend yield.

National Storage REIT: Current Price

At the beginning of 2020 NSR reached all-time highs. Today the National Storage share price is $2.10, which is at the upper end of its 52-week range of 1.775-2.21.

About National Storage REIT

National Storage REIT (ASX: NSR) is an Australia-based internally managed and integrated owner and operator of self-storage centers in Australia and New Zealand. The Company has approximately 146 self-storage centers under operation or management, providing storage solutions to over 50,000 customers across Australia and New Zealand.

Should I Buy NSR: COVID-19 Resilience

All 182 NSR centers across Australia and New Zealand have remained open and operational throughout the COVID-19 pandemic. Storage revenues continue to demonstrate the resilient nature of the self-storage asset class to economic volatility. Self-storage was classified as an essential service during the Level 4 Lockdown restrictions in New Zealand, and as a result, NSR was able to continue to provide access for other essential service providers and those requiring access to storage for essential items.

Should I Buy NSR: Distribution History

Since 2014 NSR has managed to maintain a steady flow of income for investors, even during COIVD-19. Their current yield is 3.52%.

What is NSR dividend policy?

NSR understands the importance of distributions for investors whilst maintaining prudent liquidity. They target a distribution policy of 90% – 100% of underlying earnings.

Acquisitions

There is a lot of interest in the acquisition of NSR, at the time these price targets were relatively high, showing a lot of faith in NSR shares.

Should I Buy NSR: Financials

In February NSR released its Half-year results with the following highlights;

• A-IFRS profit after tax of $101.4 million
• 1H FY21 underlying earnings of $39.2 million, up 14%
• 1H FY21 underlying EPS of 3.9cps
• Total assets of $2.81 billion, up 14%
• Net tangible assets $1.72 per stapled security, up 4.2%
• 18 acquisitions totaling $258 million settled in 1H FY21
• 19 active development projects providing NLA pipeline of approximately 130,000m2
• FY21 underlying earnings guidance range revised to 8.1 – 8.5cps

Should I Buy NSR: Technical Analysis

The general consensus within the Technical Analysis community is currently bullish on NSR shares. The moving averages and Technical Indicators seems to indicate a Strong Buy.

In summary, the upside is likely to prevail as long as $1.99 is a support. The alternative scenario is that a downside breakout of $1.99 would call for $1.92 and $1.88.

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