NGKF Capital Markets, a group within commercial real estate advisory firm Newmark Grubb Knight Frank (NGKF), has released an online report highlighting key performance metrics from the fourth-quarter 2014 financial results issued by the four publicly traded U.S.-based self-storage real estate investment trusts (REITs)—CubeSmart, Extra Space Storage Inc., Public Storage Inc. and Sovran Self Storage Inc.
“The fourth quarter rounded out a stellar year for the sector, with multi-faceted increases above the broader REIT population,” NGKF Capital analysts wrote. “FFO [funds from operation] growth levels across the self-storage sector continue to bolster expectations of elevated performance delivery. Four-quarter NOI [net operating income] growth, as well as consensus guidance, remains solid in the mid-to-high single digits, driven by confidence in revenue growth and continued stability in achieved occupancy.”
The five-page “4Q14 Self Storage REIT Report” provides an overview and analysis of self-storage REIT performance collectively and in comparison to other REIT sectors. It includes market indexes and comparison charts examining self-storage REIT occupancy, adjusted FFO, dividends per share, same-store revenue and historical stock prices. It also includes highlights from all four REIT fourth-quarter financial statements.
“Quantifying development/new supply continues to have the greatest impact on the outlook of the sector,” according to the report. “Expectations are that the markets will not take on enough new supply in 2015 or even 2016 to negatively impact the entire industry. All four REITs continue to actively contribute new supply to the market by way of purchases at completion, joint-venture development, direct development and third-party management programs geared toward private developers.”
Inside Self-Storage also recently published a summary of fourth-quarter financial results for all four REITs.
NGKF offers investment sales, transaction management, debt placement, proprietary lending, and appraisal and valuation advisory services. Together with its affiliates and London-based partner Knight Frank, NGKF employs more than 11,000 professionals, operating from more than 340 offices on five continents.