Over a 10-year period, self-storage real estate investment trusts have exploded, earning annualized returns north of 19.1%, as reported by SPGlobal. While there are numerous REIT sectors, including mortgage, industrial, healthcare, net lease and much more, self-storage has the highest 10-year return.
The rise in self-storage can be attributed to the needs of younger generations, such as millennials, looking for extra storage as they are cramped in their apartments. Not to mention, many retirees looking to travel may find it more cost-effective to have a storage unit and a smaller house in their hometown.
Also Read: 2 Industrial Equity REITs That Have Above-Average Yields
National Storage Affiliates reported that for the past 28 years since 1994, self-storage REITs saw an average return of 18.8%. Here are two for investors to consider.
National Storage Affiliates Trust (NYSE: NSA) is offering a dividend yield of 5.81% or $2.20 per share annually, utilizing quarterly payments, with a strong track record of increasing its dividends for six consecutive years. National Storage Affiliates is a real estate investment trust that owns, operates, and acquires self-storage properties located within metropolitan statistical areas throughout the United States.
National Storage currently is one of the largest owners and operators of self-storage facilities in the U.S. and operates 1,100 self-storage properties located in 42 states and Puerto Rico with approximately 71.5 million rentable square feet, as of Sept. 30, 2022.
National Storage has seen 900% growth since the formation of its multifaceted acquisition strategy, which is primarily due to joint ventures and third-party acquisitions.
Global Self Storage (NASDAQ: SELF) is offering a dividend yield of 5.84% or 29 cents per share annually, making quarterly payments, with an infrequent track record of increasing its dividend payments. Global Self Storage is a self-administered and self-managed real estate investment trust that owns, operates, manages, acquires, develops and redevelops self-storage properties for residential and commercial customers.
Global Self Storage currently has 13 self-storage properties with 968,563 square feet of total leasable space, in multiple states that include Connecticut, Illinois, Indiana, New York, Ohio, Oklahoma, Pennsylvania, and South Carolina.
Global Self Storage's strategic plans for growth include acquisitions, directly or through joint ventures, and expansion projects at existing properties.
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