Australia Self-Storage Operator National Storage Becomes Publicly Traded REIT

Australian self-storage operator National Storage issued a public offering of 126.3 million stapled securities late last month and will now operate as a real estate investment trust (REIT) traded on the Australian Stock Exchange (ASX). Now known as National Storage REIT, the company made its securities offer at 98 cents each, with an expected capitalization of $240 million. The offering was scheduled to close Dec. 16.

The REIT is the first independent, internally managed and fully integrated owner and operator of self-storage centers listed on the ASX," company officials said in its prospectus. The company is one of Australias largest operators, with 62 self-storage facilities serving more than 23,000 customers.

The forecast earnings per security was 7.8 cents, with a distribution yield of 8 percent. Each stapled security is made up of one share of APN National Storage Property Trust, an unlisted trust, and one share in National Storage Holdings, according to the source. The companys shares will begin trading on the stock exchange on Dec. 19 under the symbol NSR.

This marks a pivotal turn in the development of self-storage in Australia, officials at Australia-based software provider Centreforce Technology Group said in an e-mail newsletter. Until this week, investors could only invest in self-storage privately or via property trusts. The IPO [initial public offering] for National Storage was oversubscribed, indicating strong interest in this class of investment.

National Storage was formed in December 2000 following the merger of Stowaway Self Storage, National Mini Storage and Premier Self Storage. The company indicates on its website its intention to continue to expand its storage network through the acquisition of existing facilities and the development of "greenfield" sites.