Self-Storage REITs: Storage Wars Wage On

December 11, 2019 | Hoya Capital

Self-Storage REITs: Storage Wars Wage On Uncategorized Dec 11 Written By Ok Boomer, what are you going to do with four rooms of extra furniture when you downsize? Self-storage operators continue to see "booming" demand for storage space. The glory-days of double-digit annual rent growth, however, are long gone for the self-storage REIT sector, which has seen a commensurate boom in supply growth over the last half-decade. Once a perennial top-performer in the REIT sector, developers and new operators have flocked to the sector in recent years, adding new supply at a furious rate, weakening fundamentals. 2019 was shaping up to be a strong year for the sputtering self-storage REIT sector, but 3Q19 earnings were a setback on the road to recovery.

Competition remains fierce in an oversupplied market. Symptomatic of the ongoing storage wars, marketing spending jumped nearly 60% from last year for these REITs, pressuring same-store NOI growth to essentially zero. To read the full report, click here to visit Seeking Alpha! Comments (0) Newest First Oldest First Newest First Most Liked Least Liked Add Comment --> Preview Edit --> Post Comment… Previous Previous Good News Becomes Bad News For REITs Next Next Daily Recap: Fed Holds | Stocks Climb | REITs Dip