NSR - National Storage REIT

[System]

National Storage is one of the largest self-storage providers in Australia, with 62 centres across six states tailoring self-storage products to over 23,000 residential and commercial customers.

http://www.nationalstorageinvest.com.au

 

[Cashflows]

This company has me scratching my head, in their annual reports it states that it will record $48,993,000 in profit before tax, but then it states that they will only pay $260,000 in taxes for the year.... ?!?!?!

The only reasoning they provide is in note 8 where it says, 'NPST is not liable to pay income tax provided its taxable income and taxable realised gains are fully distributed to unit holders.'...

All I can say is, who does their tax returns and when can I meet them?

 

[coolcup]

This company has me scratching my head, in their annual reports it states that it will record $48,993,000 in profit before tax, but then it states that they will only pay $260,000 in taxes for the year.... ?!?!?!

The only reasoning they provide is in note 8 where it says, 'NPST is not liable to pay income tax provided its taxable income and taxable realised gains are fully distributed to unit holders.'...

All I can say is, who does their tax returns and when can I meet them?

This is pretty standard for listed property trusts. Their legal entity has a trust within the structure (rather than just a company). The group is structured so that all the profit sits in the trust and the trust distributes the majority of that profit. This means the trust does not need to pay tax, and the tax liability is born by the unitholders who receive the distributions.

The ATO is no worse off. In a company situation, a dividend is paid from after tax profits along with a franking credit, so the ATO ends up getting tax at the marginal rate of the underlying shareholder. This is the same net outcome in the case of a trust.

Hope this helps.

 

[Cashflows]

Thanks Coolcup, that makes a lot more sense.

 

[Miner]

Hello folks
Anyone following NSR? It was once recommended by Motley but not doing well and had a capital raise as well.
This thread was not updated for 5 years - does tell me how bad the stock could be ??
Thanks

 

[Ann]

Rightio this is number two stock of how I enter a trade. Higher highs higher lows, bounce off a support/resistance line and then I enter the trade at red star. I am not entering any trades at this time until I am more confident the market will allow this stock to rise. Very low volumes, showing serious caution in the market at the moment. I normally never draw projections on a chart, this time it is only to illustrate where this might travel and where I would potentially enter, but not at the angle I drew, the chart was a bit squashy. I should add, I do much more work on a trade than simply look at a chart if I am going to enter a trade. This is my starting point.

 

[BlindSquirrel]

They've announced another SPP.
The price is at around a 3% discount to the current SP. If I take it up it will overweight my portfolio to them but I don't want to be diluted either.

With current interest rates, shouldn't they be looking more at debt rather than paying it down?

 

[galumay]

I looked at this after I read an article about what good businesses Storage Companies were in the US, I discovered no investible businesses in Australia though, the 2 big listed ones both turned out to fail to meet my criteria. Its a much tougher business in Australia.

 

[BlindSquirrel]

Is anyone else currently in this? Here's hoping that the takeover rumblings come to fruition!
I bought at 1.73 for the unfranked distributions in case they became more sought after if Labor won, then I just held them as it's a stable business.

 

[qldfrog]

Popped up in one of my system let's cross fingers

 

[Dona Ferentes]

Timing?! A premium of 47% to NTA

takeover looms

The country’s largest self-storage operation, the National Storage REIT, appears likely to be taken over by US giant Public Storage, with shares in the target trust jumping to close to the bid price of its $1.9bn proposal.

The company’s shares traded up to $2.38 on Monday morning, just below the $2.40 per share plan made public after market on Friday by the listed National Storage. The bid price was above both the expectations and price targets analysts had on the local self-storage operation.

 

[Dona Ferentes]

Now up to $2.41

National Storage REIT is in the middle of a three-pronged bidding war, with Warburg Pincus the latest confirmed bidder. National Storage said it had received a $2.20 per share bid from the firm, earlier than a higher $2.40 per share bid from NYSE-listed Public Storage.

“Warburg Pincus is currently conducting its non-exclusive due diligence including review of confidential information provided by NSR and is in discussions with NSR management in relation to the proposal,” it said.

“NSR continues to work with these three parties in relation to proposals to acquire NSR and notes that discussions with each party are at this stage preliminary and subject to a number of conditions and there is no certainty that the discussions will lead to a final recommended offer."

 

[qldfrog]

Now up to $2.41

Higher higher

 

[The Triangle]

Good example of why not to take things off a watch list! I should have jumped in last month when it was in the low $1 range. I took this off my list a year or two ago when it was averaging $1.70. A good price, but not great price. The reason to buy now is for another takeover offer.

NSR managed to pickup so many takeover offers from the USA in such a short span of time - only to see all of them drop off the radar so rapidly. I do believe that a certain % of takeover offers are there to elevate a share price to allow a related party to exit with a win. I find it odd that no one else was willing the keep going.