The National Storage REIT (ASX: NSR) share price jumped 2.4% higher on Wednesday to close at a new 52-week high.
Why is the National Storage share price surging higher?
Yesterday’s strong gains came as the S&P/ASX 200 Index (ASX: XJO) managed another strong day of trade. The benchmark Aussie index climbed 0.6% higher to 6,928.00 points on Wednesday.
National Storage was one of many high-profile shares pushing higher yesterday. Shares in the Aussie REIT are now up 3.7% in 2021 and 33.1% in the last 12 months. All of this comes as National Storage pushes ahead with its growth and expansion strategy.
National Storage advised in December that it now has 206 self-storage centres across Australia and New Zealand. There were also plans announced to add 5 expansion and development projects that were nearing completion or recently completed.
The National Storage share price fell lower towards the end of the year as investors hoped for stronger FY2021 guidance. The Aussie REIT is forecasting earnings per share at the upper end of the 7.7 to 8.3 cents per share range.
This week’s announcement of the trans-Tasman travel bubble has helped to boost investors hopes for Australia’s economy. New Zealand Prime Minister Jacinda Ardern announced plans to allow quarantine-free travel between Australia and New Zealand from April 19 onwards.
That saw ASX 200 shares climb higher in the hopes of further tourism activity and general economic optimism. The National Storage share price has jumped higher despite no announcements since March 5 and appears to be caught up in the momentum.
The National Storage share price closed at a new 52-week high of $2.13 per share on Wednesday. The group’s current $2.2 billion valuation is notably close to or higher than some of the takeover offers received in 2019 and 2020.
US-based Public Storage made a $2.40 per share offer for the REIT while private equity groups Warburg Pincus and Gaw Capital both offered $2.20 per share for National Storage.
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