Opinions
Andrew Moffs
StorageVault Canada
SVI-T
PAST TOP PICK
Apr 28, 2022
(A Top Pick Mar 30/21, Up 46%) Likes the self-storage space, especially in Canada. The market leader. Has scale. Recession-resilient, as revenue relies on life events that happen irrespective of the economic cycle. Think death, divorce, dislocation, disaster. Discount to NAV, especially compared to its growth profile.
$6.650
Stock price when the opinion was issued
Transportation
It's the ideal tool to help you make quicker, more informed decisions for
managing and tracking your investments.
You might be interested:
BUY
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research
SVI operates in a structure relatively similar to a REIT but is much more growth-focussed. It needs to utilize debt in order to be able to grow its portfolio of assets which it rents out. It has also grown primarily via acquisition. The rising rate environment has created cost pressures, however we do think the outlook is positive. As Canada has already begun cutting rates, we think SVI stands to benefit from lower interest expenses (bottom-line expansion) and being able to isse more debt to finance growth (top line expansion). The industry is capital intensive so while high debt is a risk, it is somewhat unavoidable. We like the outlook for SVI.
Unlock Premium - Try 5i Free
misc consumer products
Advertising