There aren't many good choices on the ASX for income that are quality and have a good yield.
I think National Storage REIT (ASX: NSR) would be on that income list for me, here's why:
Real estate exposure
I would question anyone wanting to enter the residential property market at this stage in the game, but there could be potential in the commercial real estate investment trust (REIT) space.
National Storage gives an investor exposure to good urban real estate and the growing theme of self-storage.
Growth
National Storage is experiencing pleasing growth. Property prices are very expensive per square metre, it makes economical sense to store stuff in a National Storage unit rather than a garage or extra bedroom.
Over the long-term I expect National Storage to be able to charge more per square metre as real estate becomes even more expensive. It has grown its revenue from $202 per square metre in FY16 to $212 per square metre in FY17.
National Storage's occupancy has risen up to 77.5% which is positive and also gives further room for growth in the future.
Good income
The best reason to invest in National Storage is its pleasing income yield.
It currently has an unfranked distribution yield of 6.09%, which beats term deposits by a significant margin.
Foolish takeaway
National Storage has been a solid performer for investors over the last five years and I think the good income will keep flowing for a long time to come.
