Motley Fool Australia

The National Storage (ASX:NSR) share price is at a 52-week high. Here’s why

Top asx share price represented by paper cutout image of mountain peaks with red flag
Image source: Getty Images

The National Storage REIT (ASX: NSR) share price jumped 2.4% higher on Wednesday to close at a new 52-week high.

Shares in the self-storage real estate investment trust (REIT) closed at $2.13 per share with a $2.2 billion market capitalisation.

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.

Foolish takeaway

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.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

*Returns as of February 15th 2021

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Related Articles…