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The aftermath of hurricane Irene is actually leaving -- -- sector in better shape than before the storm and Paul order not -- Is a senior analyst to be -- capital markets He joins me now on the -- there's explicit take a look at.
Storage reits and obligate companies but a lot of our viewers are intimidated -- -- Explain to me what -- storage REIT is and why you think they're good bet right now.
Sure well the storage Reid is basically a place where individuals and businesses.
Can bring their items for for storage -- We we think that they're good right now because.
In the aftermath of the hurricane folks need to do some repairs and usually want a safe place for their belongings.
Self storage reits and self storage locations.
Provide that does safe place for your belongings.
And -- really she's a real estate investment -- is it combines a lot of them together in the right it's a portfolio those property type portfolios are kind of playing beat the -- overall I can tell you I become the stuff aren't public storage PSA you've got -- underperform on these -- but it's up 22 and a half percent over Euro over a year or so what's your position on this one.
Sure well we recently put this under performed -- our recommendation in place based in part on how good the stock has done.
We think that the valuation.
In the near term and intermediate term.
It looks pretty full to us we you know certainly believe that public storage is a great franchise a great company.
But on a valuation basis compared to the other names.
In the group.
We think it's a little rich.
-- but the one that's got the most.
Exposure to hurricane -- Is your second -- and that's Extra Space Storage correct some like this one -- because of my.
Yet yes we do we think that all of those storage streets that have properties in the affected areas will see some increase in demand for -- space.
-- from people and businesses doing repairs hasn't mentioned.
Extra space happens to have the largest exposure to the hurricane region.
At about 32%.
And the stock is up 38%.
A year over year and you've also got its sovereign self storage that's -- that's.
As the ticker very simple to remember of a this is a market perform in your pet.
Again based on valuation and looking at the bigger picture.
Are we like it but down by the name that we really like is the the one that we have yet to speak about and that's you stored symbol Y -- this is going to -- really if you really OK why you behind this one's -- -- like you store because they have the most existing vacancy in their portfolio.
And what that means is that.
They have the most upside from leasing up that space from getting new customers.
We we think that that down incremental revenue goes to the bottom line quicker then rental rate increases which occur over time.
Things I found interesting about storage reach and they -- they for structuring this morning about it was that.
Overall because what we're seeing and how saying I thought that's a great idea because.
You're seeing so many people -- -- moving out of the mansion is moving into smaller spaces but still keeping their belongings until they hopefully you get the next thing -- probably.
And that becomes a storage issue.
-- that's a little is actually is is a way to invest on a means it's a bad economy but a way to invest.
Sure aren't stepping back it looks like Iran.
That folks use self storage based on any sort of change in life circumstances.
Be -- good or bad so that could be downsizing your home.
A marriage or divorce moving because you lost your job moving because you're gonna get a new job someplace else all of those give rise to the need for self storage.
Tall order not a senior analyst -- in -- capital markets interesting very interesting thank you very much thanks.
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