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Life Storage Inc – Other Financial Vehicles
Life Storage, Inc. is a self-administered and self-managed equity REIT that is in the business of acquiring and managing self-storage facilities. Located in Buffalo, New York, the Company operates more than 900 storage facilities in 31 states and in the province of Ontario, Canada. The Company serves both residential and commercial storage customers with storage units rented by month. Life Storage consistently provides responsive service to approximately 500,000 customers, making it a leader in the industry.
Analysis Results
Intrinsic Value $151.07
Latest Price $107.19
Relative Value 29% undervalued
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Cash Flow (Millions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 16.3%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.9%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 16.3%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (million) Present value (million)
2022 418 391
2023 486 425
2024 565 462
2025 657 502
2026 763 546
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 15700 million. This corresponds to a present value of 10500 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 2320 million. Adding in the terminal value gives a total present value of 12800 million.

There are presently 85.0 million outstanding shares, so the intrinsic value per share is 151.07.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 199,900,000
Current Cash 171,865,000
Current Liabilities 159,055,000
Current Debt 0
Non-Cash Working Capital (NCWC) -131,020,000
Change in NCWC -25,804,000
EBIT 338,134,000
Tax Provision 0
Depreciation and Amortization 147,119,000
Capital Expenditure -85,080,000
Unlevered Free Cash Flow 374,369,000
Current Assets 79,254,000
Current Cash 54,400,000
Current Liabilities 130,070,000
Current Debt 0
Non-Cash Working Capital (NCWC) -105,216,000
Change in NCWC -10,866,000
EBIT 238,356,000
Tax Provision 0
Depreciation and Amortization 122,925,000
Capital Expenditure -56,397,000
Unlevered Free Cash Flow 294,018,000
Current Assets 38,749,000
Current Cash 17,458,000
Current Liabilities 180,641,000
Current Debt 65,000,000
Non-Cash Working Capital (NCWC) -94,350,000
Change in NCWC -13,775,000
EBIT 231,812,000
Tax Provision 0
Depreciation and Amortization 107,130,000
Capital Expenditure -90,995,000
Unlevered Free Cash Flow 234,172,000
Current Assets 29,622,000
Current Cash 13,560,000
Current Liabilities 187,637,000
Current Debt 91,000,000
Non-Cash Working Capital (NCWC) -80,575,000
Change in NCWC 6,050,000
EBIT 221,819,000
Tax Provision 0
Depreciation and Amortization 102,530,000
Capital Expenditure -67,397,000
Unlevered Free Cash Flow 263,002,000
Current Assets 24,857,000
Current Cash 9,167,000
Current Liabilities 207,315,000
Current Debt 105,000,000
Non-Cash Working Capital (NCWC) -86,625,000
Change in NCWC -15,134,000
EBIT 174,667,000
Tax Provision 0
Depreciation and Amortization 127,485,000
Capital Expenditure -83,657,000
Unlevered Free Cash Flow 203,361,000
Current Assets 37,026,000
Current Cash 23,685,000
Current Liabilities 337,832,000
Current Debt 253,000,000
Non-Cash Working Capital (NCWC) -71,491,000
Change in NCWC -29,856,000
EBIT 124,123,000
Tax Provision 0
Depreciation and Amortization 117,081,000
Capital Expenditure -72,852,000
Unlevered Free Cash Flow 138,496,000
Current Assets 20,747,000
Current Cash 7,032,000
Current Liabilities 134,350,000
Current Debt 79,000,000
Non-Cash Working Capital (NCWC) -41,635,000
Change in NCWC -3,668,000
EBIT 150,690,000
Tax Provision 0
Depreciation and Amortization 58,506,000
Capital Expenditure -41,739,000
Unlevered Free Cash Flow 163,789,000
Current Assets 21,417,000
Current Cash 8,543,000
Current Liabilities 99,841,000
Current Debt 49,000,000
Non-Cash Working Capital (NCWC) -37,967,000
Change in NCWC -6,292,000
EBIT 118,419,000
Tax Provision 0
Depreciation and Amortization 51,749,000
Capital Expenditure -35,097,000
Unlevered Free Cash Flow 128,779,000
Current Assets 22,298,000
Current Cash 9,524,000
Current Liabilities 93,449,000
Current Debt 49,000,000
Non-Cash Working Capital (NCWC) -31,675,000
Change in NCWC 2,155,000
EBIT 103,703,000
Tax Provision 0
Depreciation and Amortization 45,546,000
Capital Expenditure -33,889,000
Unlevered Free Cash Flow 117,515,000
Current Assets 16,508,000
Current Cash 7,255,000
Current Liabilities 148,083,000
Current Debt 105,000,000
Non-Cash Working Capital (NCWC) -33,830,000
Change in NCWC -2,855,000
EBIT 83,618,000
Tax Provision 0
Depreciation and Amortization 41,679,000
Capital Expenditure -36,845,000
Unlevered Free Cash Flow 85,597,000

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