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Zacks Initiates Coverage of Global Self Storage With Neutral Recommendation
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Zacks Investment Research has recently initiated coverage of Global Self Storage, Inc. (SELF - Free Report) , assigning a "Neutral" recommendation to the company's shares. This assessment comes amid a mixed outlook for the company, which has been making notable strides in the real estate investment trust (REIT) space despite industry challenges.
SELF, headquartered in Millbrook, NY, is a self-administered and self-managed REIT that acquires, owns, operates, manages and redevelops self-storage properties across the United States. It provides secure, accessible and affordable storage solutions for both residential and commercial customers.
In the first quarter of 2025, Global Self Storage reported a 108.6% year-over-year increase in net income and a 16.8% rise in Adjusted Funds From Operations (AFFO), driven by disciplined cost management and operating leverage. Same-store Net Operating Income rose 6.3%, exceeding revenue growth of 3%, underscoring the company’s efficiency in expanding margins.
Liquidity remains a strength, with $24.9 million in available capital including cash, marketable securities, and an undrawn $15 million revolving credit facility.
The research report highlights several key factors that could drive SELF’s future growth. Occupancy climbed to 92.1% while the average tenant stay reached a company record of 3.5 years, indicating strong customer retention. These operational improvements have allowed the company to maintain a stable dividend yield of 5.19%, which is well covered by AFFO and supported by a conservative 72.5% payout ratio. Additionally, Global Self Storage has expanded its operating model through third-party property management, which offers potential for capital-light revenue growth and future acquisition opportunities.
However, potential investors should consider certain risks outlined in the report. Global Self Storage’s rising interest expense, up 9.2% in the latest quarter, and a narrow asset footprint — 12 same-store properties and one third-party managed site — limit scalability and expose the company to localized economic risks. Furthermore, SELF’s accumulated deficit has widened, and real estate asset values have declined slightly, raising concerns about reinvestment productivity and intrinsic value creation.
Global Self Storage’s stock has significantly outperformed its industry peers and the broader market over the past year. The valuation metrics for the company indicate a potentially stable income-generating investment rather than a growth opportunity, making it more suitable for yield-focused portfolios than those seeking capital appreciation.
For a comprehensive analysis of Global Self Storage’s financial health, strategic initiatives, and market positioning, you are encouraged to view the full Zacks research report. This in-depth report provides a detailed discussion of the company's operational strategies, financial performance, and the potential risks and opportunities that lie ahead.
Note: Our initiation of coverage on Global Self Storage, which has a modest market capitalization of $62.9 million, aims to equip investors with the information needed to make informed decisions in this promising but inherently risky segment of the market.
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Zacks Initiates Coverage of Global Self Storage With Neutral Recommendation
Zacks Investment Research has recently initiated coverage of Global Self Storage, Inc. (SELF - Free Report) , assigning a "Neutral" recommendation to the company's shares. This assessment comes amid a mixed outlook for the company, which has been making notable strides in the real estate investment trust (REIT) space despite industry challenges.
SELF, headquartered in Millbrook, NY, is a self-administered and self-managed REIT that acquires, owns, operates, manages and redevelops self-storage properties across the United States. It provides secure, accessible and affordable storage solutions for both residential and commercial customers.
In the first quarter of 2025, Global Self Storage reported a 108.6% year-over-year increase in net income and a 16.8% rise in Adjusted Funds From Operations (AFFO), driven by disciplined cost management and operating leverage. Same-store Net Operating Income rose 6.3%, exceeding revenue growth of 3%, underscoring the company’s efficiency in expanding margins.
Liquidity remains a strength, with $24.9 million in available capital including cash, marketable securities, and an undrawn $15 million revolving credit facility.
The research report highlights several key factors that could drive SELF’s future growth. Occupancy climbed to 92.1% while the average tenant stay reached a company record of 3.5 years, indicating strong customer retention. These operational improvements have allowed the company to maintain a stable dividend yield of 5.19%, which is well covered by AFFO and supported by a conservative 72.5% payout ratio. Additionally, Global Self Storage has expanded its operating model through third-party property management, which offers potential for capital-light revenue growth and future acquisition opportunities.
However, potential investors should consider certain risks outlined in the report. Global Self Storage’s rising interest expense, up 9.2% in the latest quarter, and a narrow asset footprint — 12 same-store properties and one third-party managed site — limit scalability and expose the company to localized economic risks. Furthermore, SELF’s accumulated deficit has widened, and real estate asset values have declined slightly, raising concerns about reinvestment productivity and intrinsic value creation.
Global Self Storage’s stock has significantly outperformed its industry peers and the broader market over the past year. The valuation metrics for the company indicate a potentially stable income-generating investment rather than a growth opportunity, making it more suitable for yield-focused portfolios than those seeking capital appreciation.
For a comprehensive analysis of Global Self Storage’s financial health, strategic initiatives, and market positioning, you are encouraged to view the full Zacks research report. This in-depth report provides a detailed discussion of the company's operational strategies, financial performance, and the potential risks and opportunities that lie ahead.
Read the full Research Report on Global Self Storage here>>>
Note: Our initiation of coverage on Global Self Storage, which has a modest market capitalization of $62.9 million, aims to equip investors with the information needed to make informed decisions in this promising but inherently risky segment of the market.