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Strategies & Market Trends : Value Investing

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Jurgis Bekepuris

staring

To: staring who wrote (58470)	11/13/2016 9:56:16 PM
From: Spekulatius	2 Recommendations of 79085

Re UHAL. - you are correct that's UHAL's FCF was negative, but this was due to real estate investments of ~ $600M, which mostly went into expanding the self storage business. This is hardly maintenance Capex and I would exclude most of this $600M for the purpose of calculating the FCF of the ongoing business. This self storage business has grown nicely within UHAL and is very synergistic with UHAL core moving business. When you look at the multiples that the market is paying for self storage Reits (20x NOI), you will realize that this business is worth a substantial part of UHAL's market cap.

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