Chilton REIT Outlook: Self Storage REITs are Up to the Challenge

This month’s REIT Outlook (attached), titled “Self Storage REITs are Up to the Challenge”, takes a deeper look into the recent stock performance of the self storage sector as well as the underlying operating environment. Similar to apartments, the self storage REITs have been impacted by negative sentiment surrounding decelerating fundamentals. However, cash flow and NAV growth should remain above historical averages as a result of superior operations and consolidation opportunities. In fact, the self storage REITS are expected to produce the highest cash flow per share growth of all REIT sectors in 2016 and the second-most in 2017. We view the sector’s current valuation as one of the best buying opportunities the sector has seen in recent memory.