In this article, we will take a look at the 5 best warehouse and self-storage stocks to buy. For a more comprehensive analysis of the storage industry, go directly to the 12 Best Warehouse and Self Storage Stocks to Buy.
5. Life Storage, Inc. (NYSE:LSI)
Number of Hedge Fund Holders: 21
The fifth stock on our list of the top 5 warehouse and self storage stocks to buy is Life Storage, Inc. (NYSE:LSI), which is a New York-based REIT investing in self storage units. The company owns 67 million square feet of rentable space across 34 states, with 1000 storage units. Before 2017, Life Storage, Inc. (NYSE:LSI) operated under the name Uncle Bob’s Self Storage, but it later rebranded to reflect its customer-focused approach, progressive growth, and use of intelligent technology for sustainable self storage solutions.
Of the 873 elite funds tracked by Insider Monkey, 21 were long Life Storage, Inc. (NYSE:LSI) at the end of June, with reported stakes worth $261.5 million, down from 26 in the previous quarter.
Life Storage, Inc. (NYSE:LSI) reported earnings on August 3, with an actual FFO of $1.20, beating analysts’ consensus estimates by $0.06. The revenue for the company was $187.26 million, exceeding forecasted revenue by $8.97 million.
On October 7, Berenberg analyst Keegan Carl initiated coverage of Life Storage, Inc. (NYSE:LSI)’s stock with a Buy rating, announcing a price target of $143. Life Storage, Inc. (NYSE:LSI) announced an increase of 16% in quarterly common stock dividend on October 1. The new dividend paid to stakeholders would be $0.86 per share, up from $0.74. This will result in an annual dividend yield of 3%. Life Storage, Inc. (NYSE:LSI) CEO, Joe Saffire, stated that they were able to increase the dividend due to strong fundamentals of the firm, a powerful financial outlook for the future, and strong predicted cash flow.
4. AMERCO (NASDAQ:UHAL)
Number of Hedge Fund Holders: 21
AMERCO (NASDAQ:UHAL) is an American provider of property insurance, moving, and storage facilities. The Reno-based company facilitates customers with the rental of trucks, trailers, portable moving and storage units, specialty rental items, and self storage spaces. With 30,000 employees across several states, AMERCO (NASDAQ:UHAL) is the fourth stock on our list of the top 5 warehouse and self storage stocks to buy.
Of the 873 hedge funds in Insider Monkey’s comprehensive database, 21 were long AMERCO (NASDAQ:UHAL), with reported stakes worth $817.1 million, down from 23 hedge funds in the previous quarter. David Abrams’ Abrams Capital Management is the largest stakeholder in AMERCO (NASDAQ:UHAL), with 561,258 shares worth $330.8 million. AMERCO (NASDAQ:UHAL) represents 7.35% of Abrams’ 13F portfolio.
On August 4, the company announced its earnings for the second quarter of 2021. AMERCO (NASDAQ:UHAL) reported earnings per share of $17.6, beating analysts’ consensus estimates by $9.54. The actual revenue for the company also surpassed analyst estimates by $235.82 million at $1.47 billion.
AMERCO (NASDAQ:UHAL) declared a special dividend on common stock of $0.50 per share on October 8. This dividend would be payable on October 29.
Smead Value Fund, managed by Smead Capital Management, mentioned AMERCO (NASDAQ:UHAL) in their Q2 2021 investor letter. The fund stated that REITs like AMERCO (NASDAQ:UHAL) are heavily underestimated by analysts, which is disrespectful to the top performing stocks. Here is what they said:
“AMERCO (UHAL) backed off from terrific 12-month performance. Let them know if you’d like to rent a vehicle to go to Los Angeles from Phoenix. It only costs $189 to go to LA, but it cost $1,200 to rent the same vehicle in LA and drive it to Phoenix. These results can be directly tied to holding shares which are heavily under-owned by most institutions and professionals. Many of our companies are under-followed or downright disrespected by the analysts which are paid to research them. We hope we are still in an era where stock picking can shine.”
3. Public Storage (NYSE:PSA)
Number of Hedge Fund Holders: 27
The stock ranking third on our list of the top 5 warehouse and self storage stocks to buy is Public Storage (NYSE:PSA), which is the largest self storage REIT in America. The company has more than 2200 storage facilities across the US, Canada, and Europe, and has total rentable space of 170 million square feet. Public Storage (NYSE:PSA) is traded as a S&P 500 Component.
Out of the hedge funds traced by Insider Monkey, 27 were bullish on Public Storage (NYSE:PSA), with reported stakes worth $1.08 billion at the end of June. This is compared to 26 hedge funds in the previous quarter, with stakes amounting to $929 million. Ric Dillon’s Diamond Hill Capital is the biggest stakeholder of Public Storage (NYSE:PSA), with stakes valued at $284.2 million.
On August 3, the company reported the actual FFO at $3.15, exceeding estimates by $0.21. The revenue also beat market estimates by $24.82 million at $829.32 million. On October 7, Berenberg analyst Keegan Carl kept a Hold rating on Public Storage (NYSE:PSA) with a price target of $321.
2. Prologis, Inc. (NYSE:PLD)
Number of Hedge Fund Holders: 40
Prologis, Inc. (NYSE:PLD) offers curated warehouse solutions to its clients at scale, and they take care of related labor, operations, and transportation for customers as well.
At the end of June, 40 hedge funds in Insider Monkey’s elite database reported owning stakes in Prologis, Inc. (NYSE:PLD), up from 39 in the previous quarter. Jeffrey Furber’s AEW Capital Management is the largest stakeholder in the company.
On July 19, the actual FFO of Prologis, Inc. (NYSE:PLD) for the second quarter was $1.01, beating analysts’ consensus estimates by $0.02. The revenue, however, missed estimates by $9.66 million at $1.01 billion.
BTIG analyst Thomas Catherwood kept a Buy rating on Prologis, Inc. (NYSE:PLD), and raised the price target to $146 on October 8. The analyst predicted higher earnings for the company based on its strategic capital and customer solutions.
Third Avenue Management mentioned Prologis, Inc. (NYSE:PLD) in one of its letters. Here is what they said about PLD in their Q1 2021 investor letter:
“Prologis, Inc. (a U.S.-based real estate investment trust that is the largest owner of modern logistic facilities with a platform that expands more than 950 million square feet of space in 19 countries globally) completing $2.0 billion USD of debt placements at a weighted average interest rate of 0.9% with an average term of more than 13 years. In the process, the company has further solidified one of the most compelling capital structures in the real estate industry with a prudent loan-to-value ratio of approximately 25% that is primarily comprised of fixed-rate debt at an average cost of 1.8% for a term that exceeds 10 years. As a result, the long-tenured management at Prologis (including one of the true leaders in the real estate space CEO Hamid Moghadam) have set up the company for what could be a very rewarding period ahead as incremental rental income and asset management fees seem likely to accrue disproportionately to shareholders on the “bottom-line” with its interest costs locked-in.”
1. WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC)
Number of Hedge Fund Holders: 52
Ranking first on our list of the top 5 warehouse and self storage stocks to buy is WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC), which is a leading American REIT formed as a result of a merger between WillScot and Mobile Mini. Whereas WillScot specializes in modular space solutions, Mobile Mini offered portable storage solutions.
At the end of June, 52 hedge funds were long WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC), with stakes $1.39 billion, up from 47 in the previous quarter, with stakes amounting to $1.27 billion.
On August 9, Baird analyst Andrew Wittmann kept an Outperform rating on WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC), with a price target of $37, up from $35. The analyst stated that the future of the company is positively bright, owing to good execution and strong asset economics.
Benzott Capital Advisors mentioned WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC) in their Q4 2020 investor letter. Here is what they said:
“Willscot Mobile Mini Holdings (WSC): Reported solid financial results highlighted by rate increases in its modular segment and good cash flow. The merger of WillScot and Mobile Mini was completed in 3Q. The two business models are both based on strong recurring revenues from long duration leases and similar asset characteristics, such as long lives, low maintenance, high margin, short payback periods and strong cash flow generation. By combining the fleets, totaling over 365,000 units, the offering becomes more strategic and valuable to customers, and the diversification of the portfolio improves. The company is off to a good start following the merger.”
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