Finance and investment writer and blogger Amanda Alix, a contributor to investment adviser "The Motley Fool," recently extolled the benefits of investing in self-storage real estate investment trusts (REIT), calling them great investments.

April 30, 2012

1 Min Read
Investment Adviser 'The Motley Fool' Calls Self-Storage REITs Great Investments

Finance and investment writer and blogger Amanda Alix, a contributor to investment adviser "The Motley Fool," recently extolled the benefits of investing in self-storage real estate investment trusts (REIT), calling them great investments.

Alix cited a Wall Street Journal report that said self-storage REITs enjoyed a 35.4 percent return in 2011, compared with 8 percent for other REITs. She echoed the report's claim that foreclosures actually pushed many consumers into self-storage and compared with other commercial renters, self-storage saw little overall revenue drop during the recession.

The writer singled out Extra Space Storage Inc. for having its stock price climb 40 percent per share in the past year. She also mentioned Public Storage Inc.'s place as the largest REIT and noted its stock price rose 25 percent. The four U.S.-based self-storage REITs are CubeSmart, Extra Space, Public Storage, and Sovran Self Storage Inc., which operates under the brand Uncle Bob's Self Storage.

She predicts the future will only be rosier for the REITs: "In addition to helping storage facilities stay informed of what the competition is up to, the Internet has also helped heighten awareness of the industry among consumers, which brings in more business. There is strong evidence that the industry will be able to continue increasing rents this year and into the future, due to decreased competition."

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