11 Best Warehouse and Self-Storage Stocks to Buy

In this piece, we will take a look at the eleven best warehouse and self-storage stocks to buy. If you want to skip our industry introduction and take a look at the top five stocks in this list, then head on over to 5 Best Warehouse and Self-Storage Stocks to Buy.

The stock market consists of a diverse set of sectors that are able to cater to all types of risk appetites that an investor might have. High growth areas such as technology offer high returns but come with a high risk as well, while others, such as real estate investment trusts (REITs) are relatively stable and involatile.

Another example of the latter sector are warehouse and self-storage stocks, which consist of logistics firms, storage companies, and REITs. This market is among the more stable ones out there, and its performance is linked to the overall economy and consumer spending power. Consequently, market research reports outline modest compounded annual growth rates (CAGRs) for these companies.

For instance, a report by Technavio lists that over the next five years, the warehousing industry will grow at a CAGR of 6%, as it is fueled by the demand from several industries such as healthcare, pharmaceutical, and manufacturing. The advent of technology has also impacted warehousing, with the smart warehousing sector — that uses a variety of technologies such as IoT, RFID, and data analytics — slated to have a CAGR of 11.2% from 2022 to 2028, for an estimated value of $29 billion at the end of the forecast period.

Another report, this time from Mordor Intelligence, estimated the value of the self-storage market at $48 billion in 2020, and it outlines that from 2020 to 2026 it will grow at 5.46% for a final value of $65 billion. It also shares that increased urbanization and an improved economic outlook will drive this growth. Finally, Market Growth Reports has a similarly moderate CAGR estimate for the market, as it believes that the self-storage industry will have a 3.77% CAGR from 2022 to 2028, with the driving factors behind this growth being business storage and the largest share of the pie going to personal storage. Asia Pacific is expected to be the fastest growing region for the market as developed regions such as North America have already matured.

So naturally, the self-storage and warehousing industry merits a deeper look as we have done in this piece. Some of the popular firms in our list for today are WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC), Prologis, Inc. (NYSE:PLD), and Public Storage (NYSE:PSA).

Our Methodology

We took a broad look at the self-storage and warehousing industry to siphon out some of the top firms that can be expected to perform strongly in the future based on factors such as their business models, financial metrics, and market performance. The companies were then ranked according to hedge fund sentiment gathered through Insider Monkey’s survey of 895 hedge funds for the second quarter of this year.

Best Warehouse and Self-Storage Stocks to Buy

11. Global Self Storage, Inc. (NASDAQ:SELF)

Number of Hedge Fund Holders: 2

Global Self Storage, Inc. (NASDAQ:SELF) is an American REIT that is headquartered in New York. It develops, acquires, and manages self-storage properties for both residential and commercial customers and has properties in several states including New York, Pennsylvania, and Ohio.

While The Vanguard Real Estate ETF has dropped by 12% this year, shares of Global Self Storage, Inc. (NASDAQ:SELF) have grown by 7.5%, indicating its strength in the market. Additionally, it is one of the few corporate players in the large self-storage market that consists primarily of mom and pop companies, which lends it cost and economies of scale advantages. Global Self Storage, Inc. (NASDAQ:SELF)’s funds from operations (FFO) and total cash from operations (TCFO) have also grown by 14% and 17% over the past three years and its share price has also outperformed the REIT average for the same time period. It also pays a 7 cent dividend for a 4.79% yield.

Insider Monkey’s Q2 2022 survey of 895 hedge funds revealed that two had invested in the company.

Global Self Storage, Inc. (NASDAQ:SELF)’s largest investor is Jim Simons’s Renaissance Technologies which owns 146,300 shares that are worth $824,000.

Alongside Prologis, Inc. (NYSE:PLD), WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC), and Public Storage (NYSE:PSA), Global Self Storage, Inc. (NASDAQ:SELF) is a top self-storage and warehouse stock.

10. Americold Realty Trust, Inc. (NYSE:COLD)

Number of Hedge Fund Holders: 13

Americold Realty Trust, Inc. (NYSE:COLD) has the distinct honor of being the world’s largest REIT that is involved in the acquisition and operation of cold storage warehouses. It operates 185 temperature controlled warehouses in several countries including America, Canada, and New Zealand. The firm is based in Atlanta, Georgia, United States.

While the nature of its business leaves it prone to headwinds from supply chain constraints and economic uncertainties, over the long term Americold Realty Trust, Inc. (NYSE:COLD) is one of the strongest players in its industry. Its market is on the path to recovery, as the United States Department of Agriculture reported in July 2022 that stocks of cheese, butter, poultry, red meat, fruits, and vegetables were all up year over year as suppliers gained confidence in the post pandemic era. Americold Realty Trust, Inc. (NYSE:COLD) also has an 18% share of the total cold storage market, providing it with key bargaining power advantages.

Baird increased Americold Realty Trust, Inc. (NYSE:COLD)’s share price target to $33 from $27 in July 2022, citing that its previous estimates were too conservative but that complete recovery will take some time. Insider Monkey profiled 895 hedge funds for their June quarter of 2022 portfolios to discover that 13 had bought the company’s shares.

Out of these, Scott W. Clark’s Darlington Partners Capital is Americold Realty Trust, Inc. (NYSE:COLD)’s largest investor. It owns 4 million shares that are worth $124 million.

Heartland Advisors mentioned the company in its Q2 2022 investor letter. Here is what the fund said:

“Atlanta-based, Americold Realty Trust (NYSE:COLD), for instance, is the second largest owner and operator of cold-storage warehouses in the world and represents a critical piece in the food-production supply chain. Cold storage is a niche asset class within Real Estate. Unlike most real estate owners who only collect a rent check, Americold manages operations for tenants, which creates a meaningful barrier to entry. While the company’s shares came under selling pressure in the second half of last year and early in 2022 — due to sharp declines in occupancy rates and inflationary pressures – April data published by the USDA suggested that cold-storage inventories could be improving after a sustained period of contraction.

Americold, as of quarter end, was trading at a 6.2% cap rate on NTM net operating income (NOI) and over 7% on normalized NOI. We believe a 5% cap rate represents a fair multiple for REITs with meaningful barriers to entry, which implies the potential for a total return north of 25%.”

9. CubeSmart (NYSE:CUBE)

Number of Hedge Fund Holders: 18

CubeSmart (NYSE:CUBE) is a REIT headquartered in Malvern, Pennsylvania, United States. The company is one of the three largest owners and operators of self-storage properties in America and it provides storage space to residential and commercial customers.

CubeSmart (NYSE:CUBE) has one of the strongest balance sheets in the self-storage industry, with most of its debt being fixed rate and having an average maturity of more than six years. The company has grown its enterprise value 16x over the last 18 years, and 74% of its properties are in metropolitan areas, which then makes them attractive as last mile delivery options. CubeSmart (NYSE:CUBE)’s occupancy rate was 95% as of last year, indicating that its properties are not going to waste. Finally, it also pays a 43 cent dividend for a 3.39% yield.

Raymond James increased CubeSmart (NYSE:CUBE)’s share price target to $58 from $52 in August 2022, sharing that its valuation and size are key strong points. Insider Monkey’s 895 hedge fund survey for this year’s second quarter outlined that 18 had held a stake in the company.

CubeSmart (NYSE:CUBE)’s largest investor is Ric Dillon’s Diamond Hill Capital which owns 2.8 million shares that are worth $122 million.

8. AMERCO (NASDAQ:UHAL)

Number of Hedge Fund Holders: 20

AMERCO (NASDAQ:UHAL) is a DIY moving and storage operator for household and commercial customers in the United States and Canada. The company rents trucks, trailers, storage units, and other items to household movers and it also provides an online platform to connect customers with moving companies. The firm is headquartered in Reno, Nevada, United States.

AMERCO (NASDAQ:UHAL) is the fourth largest self-storage owner in the U.S., with more than 50 million square feet of properties under its belt. It also has hundreds of thousands of trucks, trailers, and towing cars in its portfolio. Its self-storage revenues have compounded by 17% over the past nine years, and its revenue per truck has blossomed by 18% in CAGR over the past two years, keeping track of inflation and growing from $17,520 to $21,872. Additionally, AMERCO (NASDAQ:UHAL) is also estimated to be undervalued by at least 48% when growth over the upcoming 3-5 years is considered.

Insider Monkey’s Q2 2022 survey of 895 hedge funds revealed that 20 had bought AMERCO (NASDAQ:UHAL)’s shares.

Donald Yacktman’s Yacktman Asset Management is AMERCO (NASDAQ:UHAL)’s largest investor through a $350 million stake that comes via 733,498 shares.