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Self Storage Fuels Real Estate Growth

25th January 2016

Of the top three companies in 2015, in terms of total shareholder returns, two are invested in self-storage. With Safestore Holdings on top of the list, delivering a return of staggering 54% and Big Yellow Group, third on the list, delivering a return of 35%. No wonder, self-storage was the top performing sub sector both in the US and Europe in 2015.
 
The past 12 months have been very positive for the real estate sector, especially in comparison with the wider equity and bond markets. According to EPRA, global real estate delivered a total return of of 11.5% smashing the total returns delivered by global equities (1.5%) and global bonds (1.3%). Even over three, five, 10 and 20 years, global real estate has comfortably outperformed the wider equity and bond markets.
 
The UK quoted EPRA Real Estate Index had another excellent year delivering 9.1%, outperforming the FTSE 100 (-4%), the FTSE All Share (-2.27%) and even FTSE 250 (9%).
 
The table below highlights the top 10 companies in terms of total shareholder returns (TSR):
 
No.        Company                   Return        Market Cap (m)*
1   Safestore Holdings             54%               £742.2
2   UNITE Group                        44%               £1455.7
3   Big Yellow Group                 35%               £1268.2
4   Capital & Regional              28%               £455.5
5   Workspace Group               26%               £1556.6
6   Town Centre Securities     26%               £172.8
7   Helical Bar                            25%               £561.1
8   New River Retail                  24%               £643.7
9   Grainger                                24%               £969.2
10 Derwent London                 23%               £4085.5
 
* Approximate at 31.12.2015
* Excluding companies with a market cap of <£100m