🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

U-Haul expands storage options in Minnesota

Published 11/08/2024, 08:38 PM
UHAL
-

BRAINERD, Minn. - U-Haul has expanded its self-storage footprint in Minnesota with the acquisition of five former KO Storage facilities in Cass and Crow Wing Counties, the company announced on Nov. 7. The purchase adds 790 drive-up units to U-Haul's existing services in the Brainerd micropolitan area.

Lucy Aveen-West, the U-Haul Co. of Northern Minnesota president, stated that this expansion is aimed at providing more quality storage solutions in the area. The goal is to meet the increasing demand for secure and affordable self-storage with convenient access for local residents.

The new U-Haul self-storage sites include locations in Brainerd, Baxter (NYSE:BAX), Nisswa, and Pillager. Notably, the North Baxter facility also offers RV storage spaces, truck and trailer rentals, and a retail showroom for moving supplies. The other facilities will be operated remotely, allowing customers to rent storage units 24/7.

U-Haul's expansion plan includes hiring up to 10 new team members to manage and maintain the new properties. The company, which prides itself on being recognized as a "Best for Vets" employer, emphasizes its commitment to hiring veterans and giving them preference in the hiring process.

The newly acquired facilities are already open for business, and customers can reserve storage by downloading the U-Haul app or contacting the local team. U-Haul's comprehensive services are tailored to meet the needs of do-it-yourself movers, offering a large fleet of trucks, trailers, and towing devices, as well as self-storage units across North America.

This expansion is part of U-Haul's ongoing efforts to support job growth and provide essential services to communities in northern Minnesota. The information for this report is based on a press release statement.

In other recent news, U-Haul Holding Company announced a dip in its first-quarter earnings, posting $195 million compared to $257 million in the same quarter of the previous year, primarily due to reduced gains from the sale of retired equipment. Despite this, the company experienced a year-over-year increase in equipment rental revenue for the first time in eight quarters, rising by $15 million. In addition, self-storage revenue grew by $17 million, indicating improvements in average revenue per occupied foot.

U-Haul also declared a quarterly cash dividend for its Series N Non-Voting Common Stock, maintaining its commitment to return value to its shareholders. This marks the eighth consecutive quarterly dividend since the company initiated its dividend policy.

As part of its recent developments, U-Haul has been actively expanding its self-storage footprint, adding 17 new locations and investing $402 million in real estate acquisitions and development costs. The company is also considering a $500 million private placement to support growth. However, it acknowledges the need to streamline operations and improve employee productivity, as operating expenses have risen due to utilities, property taxes, and wages.

InvestingPro Insights

U-Haul's parent company, AMERCO (NASDAQ: UHAL), shows promising financial stability and growth potential, aligning with its recent expansion in Minnesota. According to InvestingPro data, UHAL's revenue for the last twelve months as of Q2 2025 stood at $5.64 billion, with a gross profit margin of 28.2%. This robust financial performance supports the company's ability to fund expansions like the recent acquisition of five former KO Storage facilities.

InvestingPro Tips highlight that UHAL's stock generally trades with low price volatility, which could be attractive for investors seeking stability. Additionally, the company's liquid assets exceed short-term obligations, indicating a strong financial position to support its growth initiatives.

It's worth noting that while UHAL doesn't pay dividends to shareholders, it has been profitable over the last twelve months. This profitability supports the company's strategy of reinvesting in growth opportunities, such as the expansion in Minnesota's self-storage market.

For investors interested in a deeper analysis, InvestingPro offers 13 additional tips for UHAL, providing a comprehensive view of the company's financial health and market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.