Global investment firm KKR & Co. Inc. (NYSE:KKR) recently announced the launch of a platform, Alpha Storage Properties (ASP), to invest in self-storage real estate properties across the United States. Industry veteran Jonathan Perry will serve as the CEO of the platform.
Strategic Impact
The launch of the platform is aimed at investing in self-storage properties in high-growth markets and strategic infill locations across the country. Notably, the seed portfolio includes roughly 11,700 units or 1.2 million square-feet.
Further, Jonathan Perry’s leadership experience of over two decades in the self-storage industry across various roles is expected to benefit the company.
Management Commentary
The Head of Real Estate Acquisitions in the Americas for KKR, Roger Morales, said, “We are thrilled to launch ASP under Jonathan’s leadership. His deep knowledge of the self-storage sector will help accelerate the growth of our portfolio. Self-storage is a resilient sector that has experienced steady growth over the past 30 years and we are seeing an increase in demand resulting from the evolving relationship people have with their living space, the cost of housing and accelerated trends in net migration.”
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Price Target
On December 15, Wells Fargo analyst Christopher Harris initiated coverage on the stock with a Buy rating and a price target of $9, which implies upside potential of 21.7% from current levels.
Consensus among analysts is a Strong Buy based on 7 Buys and 1 Hold. The average KKR price target of $88.88 implies upside potential of 20.2% from current levels. Shares have gained about 84.3% over the past year.
Smart Score
KKR scores a 7 out of 10 from TipRanks’ Smart Score rating system, indicating that the stock is likely to perform in line with market expectations. Shares have gained 83.9% over the past year.
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