Wednesday, December 4, 2013

National Storage REIT Float

Another participant in the feeding frenzy that is the IPO market right now is National Storage REIT.

An investment in this float is probably more for those interested in income via distributions rather than the excitement of stag profits on the opening day of trading. This business looks like the more boring but stable kind.

According to the prospectus, the REIT "will be the first independent, internally managed and fully-integrated owner and operator of self-storage centres listed on the ASX".

The group currently owns or operates 62 self-storage centers across Australia.

The offer is for 126.3 million stapled securities at a price of 98 cents each.

At the offer price of 98 cents, National Storage REIT will be capitalized at $240 million upon listing.

The forecast earnings per security is 7.8 cents with a distribution yield of 8%.

The offer is actually for stapled securities. Each stapled security will be made up of one share of APN National Storage Property Trust (an unlisted property trust) and one share in National Storage Holdings. If you want to know more about the structure of the companies involved and who owns what, it is probably best that you download the prospectus and have a read for yourself.

The National Storage share offer opened last week and is expected to close on 16 December with shares commencing trading on the Australian Stock Exchange on 19 December. The company will trade under the ASX code of NSR.

If you like the sound of this investment and would like to read more of the details, you can download the National Storage REIT prospectus here.