The Motley Fool

Why this ASX 200 REIT is trading at a 52-week high

National Storage REIT (ASX: NSR) is one ASX 200 real estate investment trust (REIT) that has started 2020 strongly.

The National Storage security price closed 1.03% higher at a new 52-week high of $1.97 per share. All in all, the group’s securities are now up 7.07% to start the year.

So, why is National Storage climbing higher on the ASX and should you be buying in 2020?

Why the National Storage security price is climbing higher

These strong capital gains have come despite no market moving news from National Storage so far this year. The ASX 200 REIT specialises in self-storage units and is currently yielding a tidy 4.97% per annum.

The self-storage group’s securities also started trading ex-dividend on 30 December 2019, meaning the upcoming dividend is not included in its current valuation.

However, the new year can bring about lots of short-term movements as investors rebalance and reposition their portfolios.

It could also be that people are buying in amidst the ongoing property boom. With house prices going up, more people are buying and selling with cheap credit.

That in turn can mean people potentially have more demand for storage units run by National Storage to keep all of their belongings as they move between houses.

Whatever the reason, a 7.07% gain so far in 2020 is a strong start to the year in anyone’s books.

Should you buy into National Storage?

The real benefit of ASX 200 REITs is that they provide diversification and strong income.

National Storage’s 4.97% dividend yield is attractive and better than many ASX dividend shares at the moment.

National Storage also offers an easy way to invest in commercial real estate and diversify your holdings. Generally, commercial real estate is less cyclical than company earnings in many industries, meaning it could maintain its dividends even in a downturn.

Finally, ASX 200 REITs offer an easy way to invest in an otherwise un-investable asset class. Most of us don’t have the money to go into direct commercial real estate, and even if we did, it would be heavily concentrated in one asset.

If you’re looking for strong earnings and portfolio diversification, then National Storage could be a buy in 2020.

For stable ASX dividend shares, check out these high-quality options below!

Top 3 Dividend Shares To Buy For 2020

When Edward Vesely -- our resident dividend expert -- has a stock tip, it can pay to listen. With huge winners like Dicker Data (up 126%) and Collins Food (up 79%) under his belt, Edward is building an enviable following amongst investors that are planning for retirement.

In a brand new report, Edward has just revealed what he believes are the 3 best dividend stocks for income-hungry investors to buy now. All 3 stocks are paying growing fully franked dividends giving you the opportunity to combine capital appreciation with attractive dividend yields.

Best of all, Edward’s “Top 3 Dividend Shares To Buy For 2020” report is totally free to all Motley Fool readers.

Click here now to access this free report.

Motley Fool contributor Kenneth Hall has no position in any of the stocks mentioned. The Motley Fool Australia has recommended National Storage REIT. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

FREE REPORT: Five Cheap and Good Stocks to Buy now…

Our Motley Fool experts have FREE report, detailing 5 dirt cheap shares that you can buy today.

One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

Another is a diversified conglomerate trading near a 52-week low all while offering a 2.7% fully franked yield…

Plus 3 more cheap bets that could position you to profit over the next 12 months!

See for yourself now. Simply click the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.

CLICK HERE FOR YOUR FREE REPORT!