Over
five years ago I wrote about one of my favorite real estate sectors:
Self-storage. And I added a few paragraphs on Public Storage (PSA). Since then
PSA shares have risen 130.9 percent, for an annualized return of 16.3 percent.
That does not include the attractive 3+ percent dividend.
The future looks good
for the sector.
According to MJ
Partners, a Chicago-based real estate brokerage and investment banking firm,
private owners of self-storage facilities are reporting 89 percent occupancy. And
the five major public-traded firms, like PSA, have seen 92 percent occupancy. Strong
demand for storage and limited supply are driving these record numbers.
If you didn’t jump
into PSA when I suggested it in back in 2010, now might be a good time to give
it a second look. As vacancy rates fall and rents grow, investor demand for
this cash cow is bound to improve.
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