Hey there,
SVI - Storage Vault - is a samll that is getting swooped up in the current negative sentiment towards equities. That said, the company does have decent growth rates and while it isn't formally a "REIT" it is considered one as it owns properties. As you may know, REITs have taken a beating in recent months due to higher rates. This will also impact SVI much in the same way. It has $1.3B in debt (high for a company its size) and a D/E ratio fo 7.7 - once again extremely high and the highest among all TSX-listed REITs. On the bright side, only 4.4% is variable. It has $152M due in 2023 and another $158M due in 2024. If it needs to refinance any of this, it'll likely be at higher rates - so a risk to consider. It generated $42.6M in cash from operations last quarter, so it doesn't exactly have a ton of wiggle room to pay down that debt due in the next couple of years. In fact, it did say that this year's debt is likely to be refinanced.
That said, I think the company is very cheap here and is trading near historic lows on NAV and P/FFO. The industry remains highly fragmented which should allow the company to make additional acquisitions. It is the largest operator in Canada but isn't close to the leaders in the US which means there is ample opportunity for expansion. Keep in mind that making acquisitions in this environment is more expensive given current rates so it is likely the company's pace of ROI would also diminish.
Overall though, it could be an excellent opportunity to pick up the company. I haven't looked at it in a while (until now) and the only issue i see right now is debt - which is obviously a big one. Through the first 6 months of the year, interest payments have gone up 24.3% and it'll likely keep going up if rates don't stabilize in the near term.
Mat