A UK self-storage star found a better way to gauge portfolio risk and valuation, with detailed views into its unique market position and ESG strategy.
Client story
Mastering storage valuation with unmatched market insight
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Spotlight
Value and Risk Advisory
Size
100+ assets
Location
UK
Getting the measure of risk and valuation across massive data sets — and sites
With extensive experience in this operational asset class, JLL’s valuation experts knew first-hand the right methodology to use: With a Discounted Cash Flow approach, lease-up periods and yield management could be explicitly forecasted in cash flows. This meant analysing profit and loss data for each of the self-storage company’s assets. To calculate competitive advantage, we also conducted a competitor study within our supply database.
In self-storage, any operational cost savings are directly accretive to value. JLL led a review of utility costs for all 100+ assets to identify savings and quantify the impact of solar panel installation on property values. Further, by comparing our operational benchmark database to actual performance, we applied informed growth forecasts to cash flows.
In addition to examining data, our EMEA Self Storage Value & Risk Advisory team needed to conduct onsite visits at each asset — a logistical challenge, considering the storage company’s footprint stretches from London to Exeter to Edinburgh.