Our analysis is based on comparing Life Storage, Inc. with the following peers – Acadia Realty Trust, Extra Space Storage Inc. and Public Storage (AKR-US, EXR-US and PSA-US).
Life Storage, Inc.’s dividend yield is 4.80 percent and its dividend payout is 334.78 percent. This compares to a peer median dividend yield of 3.92 percent and a payout level of 135.12 percent. This type of dividend performance might make it a good stock for dividend investors. However, the company’s relatively low dividend quality score of 17 out of a possible score of 100 raises questions on the sustainability of its robust payout ratio.
Dividend Quality Overview
- Over the last twelve months (prior to June 30, 2017), LSI-US paid a low quality dividend, which represents a yield of 4.67% at the current price.
- Dividend quality trend has not been consistent over the last five years. Dividends were paid during each of these years — of these 2 were medium quality and 3 were low quality.
- The ending cash balance is less than the last full year dividend payment and cannot be relied on to cushion any significant reduction of cash flows in the future.
Quadrant label definitions. Hover to know more
Over the last twelve months (prior to June 30, 2017), LSI-US paid a low quality dividend.
The source of the company’s cash to support the dividend paid over the last twelve months is operating cash flow (coverage of 1.35x), investing cash flow (coverage of -8.42x), issuance cash flow (coverage of 3.06x) and twelve-month prior cash (coverage of 5.06x), for a total dividend coverage of 1.04x.
These coverage ratio factors imply that the firm had to dip into the beginning cash balance to pay the dividend, which suggests a low dividend quality.
|Dividend Yield (%)||2.8||2.98||3.03||2.87||3.94||4.8|
|Dividend Payout (%)||104.84||88.62||101.87||101.27||188.78||334.78|
A complete list of metrics and analysis is available on the company page.
Life Storage, Inc. is a real estate investment trust, which engages in the acquisition, ownership, and management of self storage properties. It also offers truck rental, office and rental space, and vehicle storage. It operates under the trade name Uncle Bob’s Self Storage. The company was founded by Robert J. Attea, David L. Rogers, Kenneth F. Myszka, and Charles E. Lannon in 1982 and is headquartered in Buffalo, NY.
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