What is National Storage REIT Financial Strength?
National Storage REIT has the Financial Strength Rank of 2. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Warning Sign:
National Storage REIT displays poor financial strength. Usually, this is caused by too much debt for the company.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:
1. The debt burden that the company has as measured by its
Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3.
Altman Z-Score.
National Storage REIT's Interest Coverage for the quarter that ended in Dec. 2023 was 3.76.
National Storage REIT's debt to revenue ratio for the quarter that ended in Dec. 2023 was 3.79.
As of today, National Storage REIT's Altman Z-Score is 1.82.
Competitive Comparison of National Storage REIT's Financial Strength
For the REIT - Industrial subindustry, National Storage REIT's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
National Storage REIT's Financial Strength Distribution in the REITs Industry
For the REITs industry and Real Estate sector, National Storage REIT's Financial Strength distribution charts can be found below:
* The bar in red indicates where National Storage REIT's Financial Strength falls into.
National Storage REIT Financial Strength Calculation
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors
A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
National Storage REIT's Interest Expense for the
months ended in Dec. 2023 was A$-24.6 Mil. Its Operating Income for the
months ended in Dec. 2023 was A$92.4 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was A$1,232.0 Mil.
National Storage REIT's Interest Coverage for the quarter that ended in Dec. 2023 is
The higher the ratio, the stronger the company's financial strength is.
Warning Sign:
Ben Graham prefers companies' interest coverage to be at least 5. National Storage REIT interest coverage is 4.02, which is low.
2. Debt to revenue ratio. The lower, the better.
National Storage REIT's Debt to Revenue Ratio for the quarter that ended in Dec. 2023 is
3. Altman Z-Score.
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
National Storage REIT has a Z-score of 1.82, indicating it is in Grey Zones. This implies that National Storage REIT is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.
Warning Sign:
Altman Z-score of 1.82 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
National Storage REIT (ASX:NSR) Business Description
Traded in Other Exchanges
Address
1 Eagle Street, Level 16, Brisbane, QLD, AUS, 4000
National Storage REIT is the largest self-storage provider in Australia and New Zealand. Most of its properties are owned and operated, but it also has long-term leaseholds. Most NSR centres are in city fringe, suburban and regional areas. The industry is fragmented, mostly comprising single site owners, while the largest three players, NSR, privately owned Kennards, and the listed Abacus Storage King operate over a third of the market. NSR plans to continue acquiring and developing self-storage centres, consolidating the fragmented industry, as well generating organic growth via dynamic pricing and occupancy management. However, its large rivals are competing via similar strategies.
National Storage REIT (ASX:NSR) Headlines
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