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Why shares in this ASX REIT have soared 7% today

The National Storage REIT (ASX: NSR) share price has soared 7.77% today after the REIT confirmed it is a takeover target.

What did National Storage announce?

National Storage noted recent media speculation about a potential takeover proposal. This follows yesterday’s news from The Australian reporting the Aussie REIT could be working towards a potential takeover.

The newspaper reported offshore funding for a bid has been locked in and a prospective buyer could be an offshore trade group or private equity firm.

National Storage has now confirmed it is a takeover target and has received a non-binding indicative proposal. The potential buyer is Gaw Capital Partners, for 100% of the issued stapled securities of National Storage.

Gaw Capital Partners is a Hong Kong-based real estate private equity firm. The group has been active in Australia prior to making this proposal.

The National Storage board said talks are in a preliminary stage and any takeover arrangement remains subject to several conditions. Shareholders are advised to take no action at this time in respect of their shares.

However, the ASX REIT share price has been rocketing in today’s trade following the news.

The National Storage share price has flown past its previous $2.09 per share 52-week high to be trading for $2.22 at the time of writing.

This follows a bullish period for the group as its share price is up 34.54% since the start of August. This also means the REIT has gone from 52-week low to 52-week high in a matter of months.

The capital growth is particularly impressive given REITs are known for their income more than share price gains.

National Storage REIT boasts a market cap of $1.75 billion and a dividend yield of 4.41% per annum.

How are the ASX REITs performing?

It has been a relatively strong start to the year for the ASX REITs in 2020.

The Mirvac Group (ASX: MGR) share price hit a new 52-week high yesterday and is up 9.43% this year.

Scentre Group (ASX: SCG) shares are up just 1.57% in January while Stockland Corporation Ltd (ASX: SGP) has surged more than 8%.

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Motley Fool contributor Kenneth Hall has no position in any of the stocks mentioned. The Motley Fool Australia has recommended National Storage REIT and Scentre Group. 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.

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