National Storage REIT Surges with 8.2% EPS Growth and $2.86 Takeover Bid
National Storage REIT has reported a robust half-year performance with rising earnings and a significant takeover proposal offering a 26.5% premium to shareholders.
- IFRS profit after tax of $73.7 million with underlying EPS up 8.2%
- Declared fully-franked dividend of 6.0 cents per security
- Completed 18 acquisitions worth $200 million and 11 development projects adding 99,000m²
- Entered scheme implementation deed proposing $2.86 per security takeover offer
- Sustainability initiatives progressing towards net zero Scope 1 and 2 emissions by 2030
Strong Financial Performance
National Storage REIT (ASX – NSR) has delivered a solid first half for fiscal year 2026, posting an IFRS profit after tax of $73.7 million and an underlying earnings per security (EPS) of 6.0 cents, marking an 8.2% increase from the previous period. This growth underscores the resilience and operational strength of the largest self-storage provider in Australia and New Zealand.
The company’s revenue per available metre (REVPAM) rose by 5.3% to $286.0 per square metre, supported by a healthy operating margin of 68%. Net tangible assets (NTA) also increased modestly to $2.61 per stapled security, reflecting the quality and value appreciation of NSR’s property portfolio, which now stands at $5.65 billion.
Expansion Through Acquisitions and Developments
NSR continued its aggressive growth strategy by settling 18 acquisitions worth $200 million during the half-year, including both established centres and sites earmarked for future development. The company completed 11 new development projects, adding 99,000 square metres of net lettable area (NLA), which is expected to generate approximately $16 million in additional revenue once fully stabilised.
With 43 active development projects and a pipeline of around 401,000 square metres of NLA, NSR is positioning itself for sustained medium-term growth. This expansion is a clear signal of confidence in the self-storage sector’s demand dynamics and NSR’s market leadership.
Takeover Proposal Offers Premium to Shareholders
In a significant strategic development, NSR entered into a scheme implementation deed with a consortium led by Brookfield Asset Management and GIC. The proposed takeover values NSR at an implied equity value of $4.0 billion and an enterprise value of $6.7 billion, offering NSR securityholders $2.86 per stapled security. This represents a 26.5% premium over the undisturbed share price and a 10.9% premium to the NTA as of 30 June 2025.
The transaction, subject to regulatory and shareholder approvals, is expected to complete in the second quarter of 2026. The NSR board has unanimously recommended the proposal, highlighting the attractive premium and the absence of a superior offer.
Sustainability Progress
NSR also reported ongoing progress on its sustainability commitments, aiming to reduce and offset Scope 1 and 2 greenhouse gas emissions by 2030. Initiatives include rooftop solar installations, LED lighting upgrades, and energy metering, with potential plans to source renewable energy and engage in offsetting activities to achieve net zero emissions.
This focus on sustainability aligns with broader investor expectations and regulatory trends, potentially enhancing NSR’s long-term value proposition.
Bottom Line?
As NSR navigates a promising growth trajectory alongside a transformative takeover bid, investors will be watching closely how these developments reshape the company’s future.
Questions in the middle?
- Will the proposed takeover secure all necessary regulatory and shareholder approvals on schedule?
- How will NSR’s expansion pipeline impact earnings growth post-stabilisation?
- What further sustainability initiatives might NSR pursue to meet its 2030 net zero goals?
