Payoffs are what’s in Stor-Age for portfolio specialisation

Business

Payoffs are what’s in Stor-Age for portfolio specialisation

Stor-Age has managed to deliver total dividend growth of 9.05% during the period for the year to March

Nick Wilson

Stor-Age Property REIT’s strong performance for the year to March certainly helps support the argument that portfolio specialisation can pay off handsomely.

Generally, there are two schools of thought, one that believes diversification helps investors ride out difficult economic conditions and another that holds that specialisation – be it offices, industrial or retail – is the key to outperformance. The argument in favour of specialisation is that the management teams are able to focus on one particular property type such as logistics, residential or retail, and become experts in that field. The problem with a general property fund is that a CEO may run the risk of being a jack of all trades, but a master of none. 

Stor-Age, which owns self-storage properties in SA and the UK, managed to deliver total dividend growth of 9.05% during the period, way ahead of its peers in the listed real estate sector, which has on average delivered low single-digit growth. Some counters even reported reductions in dividend payouts. ..

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