National Storage REIT (ASX:NSR) Managing Director, Andrew Catsoulis discusses the company’s focus and opportunities for innovation at the ASX Spotlight Series 2016, in New York
National Storage is Australia’s first pure play sector specific storage company listed on the ASX with 95 centres across Australia and New Zealand, at a market cap of approximately $600,000 million with total assets under management of approximately $900 million.
National Storage’s focus is the growth of its self-storage business through a number of key areas. And this includes growth organically, through rate per square metre and occupancy growth, across our centres. It includes growth via acquisition, given the highly fragmented nature of the Australian self-storage market. It includes growth via development and management of new centres. And finally, it includes growth via product innovation.
The Australian market size of the self-storage market is approximately $12 billion, with around 2,000 centres across Australia and New Zealand. These centres are predominantly owned by ‘mum and dad’ type investors, with an aging ownership demographic and a relative lack of succession planning. And all of these factors provide a good opportunity for us in that acquisition forum.
The biggest opportunities for growth in our industry, from National Storage’s perspective, are the ongoing organic growth of our business through rate per square metre and occupancy growth. The acquisition base growth, through the continued roll-up of that fragmented ownership base. And finally, the development type growth through development of new centres.
There area number of opportunities for innovation in our industry. Primarily they relate to expansion of our product offering, expansion of the services that we offer our customers. Such as getting into minimal logistics, expansion of some of our complimentary businesses, such as wine storage, records management. And providing alternative and value added services to our existing storage customers.