Information Memorandum for Insurance Broking And Risk Manage

KENNARDS SELF STORAGE

Currently there are three existing major market participants being the following:

National Storage REIT (NSR) are Australia’s largest owner operator. NSR are a Real Estate Investment Trust (REIT). As at 31 December 2019 the REIT has an estimated a value of approximately $2.286 billion and comprises a total of 180 self-storage facilities throughout Australia and New Zealand, an NSA of 930,000m² and an average portfolio occupancy of 81.4% and an average REVPAM of $207/m². Since its initial public offering in late 2013 NSR has grown considerably by aggressively acquiring various facilities/portfolios and continues to do so. In addition, a number of new developments are currently in the pipeline with 12 facilities under various stages of construction. Approximately 15 acquisitions for HY20 in total being $179 million and a further $120 million under active consideration.

Kennards Self Storage (KSS) are a privately-owned owner operator. KSS is estimated to have a value in excess of $1.6 billion and comprises a total of 75 self-storage facilities throughout Australia and New Zealand with an NSA of 522,000m² and an average portfolio occupancy of 80.0%. More recently, Kennards has focused on the establishment of new developments with a number of facilities being opened or currently in the pipeline.

Abacus Property Group (ABP) are a diversified REIT. The self-storage investment component of the group as at 31 December 2019 is estimated to have a value of approximately $1.058 billion and comprises a total of 80 self-storage facilities throughout Australia and New Zealand with an NSA of 366,927m², an average portfolio occupancy of 88.6% and an average rental rate of $287/m². Over the last 12 months Abacus has expanded the portfolio through acquiring existing facilities. Approximately $89 million (AUD) of acquisitions have settled to date during HY20 with a further $63 million exchanged post reporting date. The current development pipeline includes new developments and refurbishments over 47,500m² of NSA.

Other smaller tier participants include investment trusts. These trusts have emerged more recently and are actively pursuing acquisition and development opportunities across Australia. The two most active participants are the following:

StoreInvest are an unlisted property fund specialising in self-storage facilities. StoreInvest is estimated to have a value in excess of $85 million. The portfolio currently comprises 10 self-storage facilities, an NSA of 55,000m² and an average portfolio occupancy of 80.00%. They are currently actively seeking acquisition opportunities throughout Australia.

Universal Self Storage Funds Management (USSFM) are an unlisted property fund specialising in self-storage facilities. USSFM were established in 2014. The fund is currently actively seeking development opportunities throughout Australia with known partnerships with National Storage and Storage King.

Information Memorandum Kennards Self Storage June 2020 5