FBR Capital Markets Corp., an investment bank serving the middle market, initiated coverage on four self-storage real estate investment trusts (REITs).
By initiating coverage, FBR will consider the REITs' past stock performance to observe indicators for future performance. It also released its first assessment of the four REITS.
Sovran Self Storage and U-Store-It Trust started with an Outperform rating. Public Storage and Extra Space Storage have a Market Perform rating.
An FBR analyst said the self-storage industry is slowly recovering, marked by a weak demand and low supply. However, the analysts said the REITs have a distinct advantage in today’s commercial sector and expect above-average operational performance from the industry as a whole.
Source: StreetInsider.com, FBR Capital Initiates Coverage on Self Storage REITs: Demand in Hibernation
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