5 Best Self Storage Stocks to Buy Now

In this article, we discuss 5 best self storage stocks to buy now. If you want to read our detailed discussion on the storage industry, check out 10 Best Self Storage Stocks to Buy Now. 

5. U-Haul Holding Company (NYSE:UHAL)

Number of Hedge Fund Holders: 28

U-Haul Holding Company (NYSE:UHAL) is a do-it-yourself moving and storage company for household and commercial goods in the United States and Canada. The company operates via Moving and Storage, Property and Casualty Insurance, and Life Insurance segments. It is one of the best self storage stocks to watch. 

On June 30, Wolfe Research analyst Keegan Carl initiated coverage of U-Haul Holding Company (NYSE:UHAL) with a Peer Perform rating and no price target. Despite recognizing the strengths of U-Haul Holding Company (NYSE:UHAL)’s core business and its unique positioning compared to traditional self-storage, the analyst is cautious due to a challenging macro environment and housing market. 

According to Insider Monkey’s first quarter database, 28 hedge funds were bullish on U-Haul Holding Company (NYSE:UHAL), compared to 22 funds in the prior quarter. Donald Yacktman’s Yacktman Asset Management is the largest stakeholder of the company, with 6.8 million shares worth $352.4 million. 

4. Public Storage (NYSE:PSA)

Number of Hedge Fund Holders: 32

Public Storage (NYSE:PSA) is a real estate investment trust that acquires, owns, and operates self-storage facilities. On June 12, Public Storage (NYSE:PSA) obtained a $1.5 billion unsecured revolving credit facility, which will fully replace the existing $500 million facility. The new facility will be valid until June 12, 2027, with a possible extension of up to one additional year. As per the terms of the updated credit agreement, Public Storage (NYSE:PSA) has the ability to borrow up to $1.5 billion initially, with the option to increase its borrowing capacity to $2.5 billion.

According to Insider Monkey’s first quarter database, 32 hedge funds were bullish on Public Storage (NYSE:PSA), compared to 34 funds in the earlier quarter. Jeffrey Furber’s AEW Capital Management is the largest stakeholder of the company, with 421,920 shares worth about $127.5 million. 

Baron Real Estate Fund made the following comment about Public Storage (NYSE:PSA) in its first quarter 2023 investor letter:

“Self-Storage REITs that offer a compelling combination of scale and cost of capital advantages, low capital expenditure requirements, strong balance sheets, and monthly leases that provide an opportunity for landlords to increase rents to combat inflation. Examples: Public Storage (NYSE:PSA) and Extra Space Storage Inc.

Public Storage Incorporated is the world’s largest owner, operator, and developer of self-storage facilities. Public Storage has achieved the #1 market position in 14 of its top 15 markets and is widely recognized as the leading self-storage company with a premier brand.

It is currently valued at a 5.7% implied capitalization rate or a 20% discount to its estimated net asset value.”

3. Life Storage, Inc. (NYSE:LSI)

Number of Hedge Fund Holders: 47

Life Storage, Inc. (NYSE:LSI) is a self-administered and self-managed REIT that acquires and manages self-storage facilities. It is one of the best self storage stocks to monitor. On May 2, Life Storage, Inc. (NYSE:LSI) reported a Q1 FFO of $1.63 and a revenue of $273.6 million, topping Wall Street estimates by $0.01 and $9.13 million, respectively. The company expects FY23 adjusted funds from operations per share between $6.75 to $6.95, versus a consensus of $6.93. 

According to Insider Monkey’s first quarter database, 47 hedge funds were bullish on Life Storage, Inc. (NYSE:LSI), up from 28 funds in the earlier quarter. The collective stakes held by hedge funds in Q1 2023 increased to $1 billion from $566 million in Q4 2022. 

2. Prologis, Inc. (NYSE:PLD)

Number of Hedge Fund Holders: 51

Prologis, Inc. (NYSE:PLD) is a real estate investment trust that leases logistics facilities to business-to-business and retail/online fulfillment customers in North America, South America, Europe, and Asia. Prologis, Inc. (NYSE:PLD) is one of the best self storage stocks to watch. 

On June 28, Goldman Sachs analyst Caitlin Burrows maintained a Buy rating and a $170 price target on Prologis, Inc. (NYSE:PLD) following the company’s announcement of a $3.1 billion agreement to purchase 14 million square feet in the Blackstone Industrial Portfolio. The analyst explained that while the assets will have a neutral to slightly positive impact on earnings in the first year, the main advantage of this acquisition lies in enhancing Prologis’ platform, clusters, and Essentials business. This, in turn, strengthens the company’s long-term potential for sustained earnings growth. 

According to Insider Monkey’s first quarter database, 51 hedge funds were bullish on Prologis, Inc. (NYSE:PLD), compared to 55 funds in the prior quarter. Jeffrey Furber’s AEW Capital Management is the biggest stakeholder of the company, with 2.8 million shares worth $350.7 million. 

Baron Real Estate Fund made the following comment about Prologis, Inc. (NYSE:PLD) in its first quarter 2023 investor letter:

“Industrial REITs that we expect to benefit from ongoing robust warehouse demand and increased rents fueled by the growth in e-commerce and the buildout of logistics’ supply chains. Examples: Prologis, Inc. (NYSE:PLD), Rexford Industrial Realty, Inc., EastGroup Properties, Inc., and Terreno Realty Corporation.

Prologis, Inc. is the world’s largest industrial REIT. The company owns a high-quality real estate portfolio that is concentrated in major global trade markets and large population centers across the Americas, Europe, and Asia. Prologis has an unmatched global platform, strong competitive advantages (scale, data, and technology), and attractive embedded growth prospects. The company is the only industrial REIT with an ‘A’ credit rating.

Following a decline in its shares of more than 30% in 2022, we believe Prologis’ current implied capitalization rate of 4.2% is compelling given that the company’s rents on its in-place leases are more than 65% below current market rents, thus providing a strong runway for growth in the next three to five years.

Following strong quarterly results, the shares of Prologis, Inc., the world’s largest industrial REIT, performed well in the first quarter of 2023. The company owns a high-quality real estate portfolio that is concentrated in major global trade markets and large population centers across the Americas, Europe, and Asia. Prologis has an unmatched global platform, strong competitive advantages (scale, data, and technology), and attractive embedded growth prospects. The company is the only industrial REIT with an ‘A’ credit rating.”

1. WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC)

Number of Hedge Fund Holders: 59

WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC) offers portable storage solutions in the United States, Canada, and Mexico. The company leases modular space and portable storage units to clients in the commercial and industrial, construction, retail and wholesale trade, education, energy and natural resources, government, and healthcare sectors. 

On April 26, WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC) reported a Q1 GAAP EPS of $1.00 and a revenue of $565.5 million, outperforming Wall Street consensus by $0.71 and $31.78 million, respectively. The company also announced a share repurchase program of $1.0 billion on May 3, 2023. 

According to Insider Monkey’s first quarter database, 59 hedge funds were bullish on WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC), compared to 56 funds in the prior quarter. 

Here is what Bernzott Capital Advisors US Small Cap Value Fund has to say about WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC) in its Q3 2022 investor letter:

“Willscot Mobile Mini (NASDAQ:WSC): This modular and portable storage space company posted another quarter of strong earnings with good growth in rental rates as it increased penetration of value-added products and services such as units equipped with HVAC, ethernet ports, and plumbing. Pricing, profitability, and cash flow generation continue to be positives.”

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