Self-Storage Financial Model and Opportunity Analysis

The Self-Storage Opportunity Analysis is focused to analyze the acquisition of a Self-Storage Property which rents small storage boxes for people and business requiring additional storage space. The Excel spreadsheet template allows to evaluate the financial viability of acquiring the site, improving the operating performance, projecting the operational key metrics and financials for a period of 5 years and simulate a proposed exit. The model compares entry and exit valuation and the main other financial metrics of relevance to this type of analysis.

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The focus of the self-storage financial model template lies on the analysis of an investment opportunity of buying a self-storage property either currently in operations or in the process of being built. The Excel financial model template for the self-storage financial analysis focuses on obtaining an understanding of the price to be paid to acquire the property and assess the opportunity of implementing value-enhancing strategies such as increasing the operating performance indicators of the site and assessing their foreseeable impact on the property’s valuation within a five-year period. Self-storage financial analysis aims to assess the valuation impact on the property value by improving rental prices, ancillary revenues, occupancy rate, leasable area, and changing the operating costs. In addition, the model also allows to simulate and analyze the improvements in the capitalization rates to be paid when purchasing and selling the property.

Self-Storage – Financial Projections

The self-storage financial model builds financial projections for all the key operating performance indicators, Income Statement, Balance Sheet, Cash Flow Statement, Free Cash Flows for a period of five years based on a monthly forecast as from the acquisition date. The self-storage financial projections are aggregated into a yearly financial forecast as well which allows the calculation of the relevant investment metrics such as the levered and unlevered Internal Rate of Return (IRR), Cash on Cash yield, required funding, and investment multiple. The model allows simulating two exit scenarios, trade sale or refinancing.

Please watch the below video for more information on how the spreadsheet template works.

 

The self-storage financial model template comes with the following worksheets:

Executive Summary

Contains the information of the site, a chart with the population nearby, a comparison of the property and equity valuation between entry and exit within 5 years, an overview about the projected financials over the next 5-years, a summary of the unlevered and levered investment metrics, a comparison of the expected valuation and key performance indicators between entry and exit and a reconciliation of the contributing factors leading to a change in the property’s value.

Assumptions
A worksheet that contains all the relevant assumptions of the self-storage site:

– The specification and size of the property
– Historic revenues and Net Operating Income
– The Purchase Price and related Acquisition Costs
– The key performance indicators (occupancy rates, rental prices, ancillary revenues) and their expected improvements
– The targeted operating costs
– Exit assumptions including year and type of exit (trade sale or refinancing) and the expected property valuation (via the net capitalization rate).
– Debt assumptions that cover two types of debt at the time of entry and a refinancing facility at time of exit

Forecast
Includes the calculation of detailed monthly key performance indicators required to perform the self-storage financial analysis and financials which become aggregated into yearly financial projections for a period of 5-years.
– Operational metrics
– Income Statement
– Balance Sheet
– Cash Flow statement
– Financial Ratios
– Property Valuation Forecast
– Debt Schedule
– Free Cash Flow Forecast
– Entry / Exit Comparison Calculations

Terms & Abbreviations
Contains an explanation of the color codes used throughout the financial model templates and a summary of all terms & abbreviations used.

Instructions
A sheet with brief instructions on how to best work with the financial model template and a suggested work plan.

The self-storage financial model Excel template comes in the form of two versions, a free PDF Demo version and a fully editable MS Excel spreadsheet template (paid version).
File type:
. xlsx
.pdf

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