This report is an updated version of the report published on 8 May 2025 at 12:50 PM AEST.

National Storage REIT (ASX: NSR)

NSR is Australia-based self-storage provider which tailors’ self-storage solutions to residential and commercial customers.

Recommendation Rationale – SELL at AUD 2.390

• Negative Financial Highlights: As of 31 December 2024, the company's cash and cash equivalents had decreased to AUD 49mn, down from AUD 55.2mn at the end of 30 June 2024. At the same time, the company's total current liabilities saw a significant increase, rising to AUD 441.4mn as of 31 December 2024, compared to AUD 151.3mn as of 30 June 2024.
• Trading Near the Resistance: NSR stock has surpassed its R1 level recommended on 11 March 2025. Therefore, share price can face resistance at the current levels.
• Overvalued Multiples: On a forward 12-month basis – key trading multiples (EV/Sales, EV/EBITDA, Price/Earnings, Price/Cash flow, Price/Book) are higher than the real estate sector.
• Market Risk: Downturns in the Australian and New Zealand economies, changes in consumer spending, and fluctuations in property values can affect occupancy rates, rental income, and the overall demand for self-storage.

NSR’s Daily Price Chart

Valuation Methodology: Price/Earnings Approach (FY June'26E) (Illustrative)

Stock might trade at a slight premium to its peers considering the completion of 7 project in 1HFY25, increased revenue in 1HFY25, and expected underlying earnings per share in FY25. For conducting the valuation, the following peers have been considered: Charter Hall Social Infrastructure REIT (ASX: CQE), Scentre Group (ASX: SCG) and LendLease Group (ASX: LLC).

Considering that the stock has surpassed its R1 level, macroeconomic uncertainty, current trading level, and risks associated, the share price can face consolidation at the current levels. Hence, a ‘Sell’ recommendation is given on the stock at the current market price of AUD 2.390, at 11:55 AM, AEST, as of 8 May 2025.

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical issues prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is neither an indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 8 May 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Dividend Yield may vary as per the stock price movement.

Note 5: Kalkine reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 25-30 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest.

Stop-loss: In general, it is a level to protect further losses in case of any unfavourable movement in the stock prices.