National Storage to receive $140m from fund asset sale
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The news: Self-storage provider National Storage REIT (NSR) will secure $140 million in sales from the second tranche of the National Storage Ventures Fund, which it co-owns with Singaporean sovereign wealth fund GIC.
The numbers: The NSR-managed National Storage Ventures Fund will invest $228 million to acquire, develop and operate six assets. NSR holds a roughly 25% stake in the fund, with the remaining interest held by GIC.
Settlement of the tranche two asset acquisition is targeted for mid-June and is expected to generate approximately $140 million in net sale proceeds for NSR, which will use the funds to repay debt.
NSR also reaffirmed its FY25 guidance, forecasting underlying earnings per security of at least 11.8 cents. It reaffirmed its distribution policy of paying out 90% to 100% of underlying earnings.
The context: The first tranche of the fund acquired 10 assets, deploying approximately $270 million in capital. This also generated $140 million in net sale proceeds for NSR, which it used for debt repayments and to strengthen the balance sheet.
The source: ASX
