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This FTSE 250 stock could fly along with the Diageo share price

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Maybe it’s just me, but I can’t usually think about property-owning Real Estate Investment Trusts (REITs) without stifling a yawn. Yet not all REITs are boring stocks, as FTSE 250 firm Safestore Holdings (LSE: SAFE) demonstrates.

The self-storage solutions provider’s share price is an exciting 340% or so higher than it was six years ago and the dividend is up around 180% over that time. Operational progress and a valuation re-rating drove the stock’s progress, which hasn’t been boring at all, and today’s interim results suggest that growth remains on track.

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Good results

Revenue at constant exchange rates increased 9.7% compared to the equivalent period a year ago, while like-for-like revenue moved 4.6% higher, suggesting the firm’s offering is attracting more business from established sites as well as expanding into new ones. Adjusted diluted earnings per share — stripped of property value gains and losses — shot up more than 21%, while adjusted net asset value per share increased a little under 14%. The directors topped off this impressive financial performance by pushing up the interim dividend by 21.4%, demonstrating their confidence in the outlook.

People just love to store their stuff and Safestore today reported “the strongest occupancy performance in the last five years” with like-for-like occupancy increases of 5.2% in the UK operation and 6% in Paris.

As well as organic growth, the company has a vibrant acquisition programme aimed at taking advantage of a tailwind from a self-storage market the firm describes as a young and expanding industry.”  I reckon we’ll see a lot more growth from Safestore in the years to come and think the stock is well worth your further research time now.

Solid performance

Maybe Safestore could sit well in a portfolio alongside FTSE 100 premium alcoholic drinks supplier Diageo (LSE: DGE). The stock is around 70% higher than it was six years ago and over that time the dividend has advanced around 51%. Not as stunning as Safestore’s performance over the period but not bad for a goliath with a market capitalisation of £68bn at today’s share price around 2,727p.

The company has been long prized by investors for the defensive characteristics of its underlying business. Operational cash flow over the past six years has been robust, easily supporting earnings and rising steadily year after year. My Foolish colleague Harvey Jones reported on another strong set of results with the firm’s interim report back in January, and I’m expecting another robust financial statement with the full-year results due on 26 July.

To me, Diageo really is one of those stocks that you can buy now and tuck away with reasonable confidence that your investment will have grown in value 10 or 20 years from now, particularly if you reinvest dividends along the way. As such, I reckon the firm makes an ideal potential retirement investment for those with a long-term investment horizon in mind. It’s well worth consideration alongside Safestore Holdings, in my view.

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Kevin Godbold has no position in any of the shares mentioned. The Motley Fool UK has recommended Diageo. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

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