National Storage REIT reported a profit of $39.2m, in line with Morgan Stanley's estimated $38.7m. The REIT has revised its FY21 earnings guidance to 8.1c-8.5c from 7.7c-8.3c. The broker expects 8.2c.

The broker notes Australia occupancy is now at 84.9%,up from 77.8% in June 2020. The REIT also made $258m of acquisitions in the half and completed six development projects during the same period. 

The REIT has flagged a revenue runway of $24-32m, assuming occupancy rises to 87.5%-90%.

Equal-weight rating. Target price is $1.98. Industry view is In-Line.

Sector: Real Estate.

Target price is $1.98.Current Price is $1.89. Difference: $0.09 - (brackets indicate current price is over target). If NSR meets the Morgan Stanley target it will return approximately 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

© 2021 Acquisdata Pty Ltd., source FN Arena