National Storage Affiliates(NSA)

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National Storage Affiliates(NSA) - 2025 Q2 - Quarterly Report
2025-08-05 20:06
UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-37351 National Storage Affiliates Trust (Exact name of Registrant as specified in its charter) Maryland 46-5053858 (State or other jurisdic ...
National Storage Affiliates(NSA) - 2025 Q2 - Earnings Call Transcript
2025-08-05 18:02
Financial Data and Key Metrics Changes - The company reported core FFO per share of $0.55 for Q2 2025, an 11% decline from the prior year, primarily due to decreased same store NOI and increased interest expense [13][17]. - Same store revenues declined by 3%, driven by a lower average occupancy of 240 basis points and a year-over-year decline in average revenue per square foot of 30 basis points [13][15]. - Same store NOI growth was negative 6.1% for the quarter, with expense growth at 4.6%, mainly due to property taxes, marketing, repair and maintenance, and utilities [13][15]. Business Line Data and Key Metrics Changes - The company sold 10 properties in non-core markets and acquired one property in Texas and an annex in California, focusing on improving balance sheet metrics [7][8]. - The occupancy rate increased by 140 basis points sequentially during Q2 to finish at 85%, with further improvement to 85.3% in July [10]. - RevPath improved for five consecutive months, with the year-over-year delta decreasing from 4.2% in February to 1.6% in July [11]. Market Data and Key Metrics Changes - The company noted continued pressure from new supply in several markets, which has impacted performance more than expected [6]. - The housing market remains challenging, with no meaningful improvement in macroeconomic conditions affecting occupancy and revenue [5][6]. - The company expects new supply to decline over the next few years, supporting an improving supply-demand backdrop [9]. Company Strategy and Development Direction - The company is focused on improving its portfolio and occupancy position through increased marketing spend and the use of concessions [9]. - Management remains confident in the outlook for NSA, expecting to realize full benefits from the pro internalization as the housing market recovers [8][9]. - The company is being disciplined in capital allocation, balancing share repurchases with potential acquisitions [26][27]. Management's Comments on Operating Environment and Future Outlook - Management acknowledged that the elevated use of concessions during the quarter was a near-term drag on revenues [7]. - The company is optimistic about the potential for recovery in the housing market, particularly in Sunbelt and suburban markets [9]. - Management believes they have hit bottom in fundamentals and are starting to see positive trends operationally [10]. Other Important Information - The company has ample liquidity with no significant debt maturities until 2026, maintaining a revolver balance of $400 million [16]. - The adjusted guidance for 2025 includes same store revenue growth of negative 2% to 3% and core FFO per share of $2.17 to $2.23 [17]. Q&A Session Summary Question: Can you walk through the scenarios for the updated guidance? - Management explained that the revised guidance is primarily anchored to same store revenue growth, with expectations of seasonal occupancy trends and the impact of higher discounts and concessions [20][21]. Question: How are you thinking about share repurchases? - Management views the current stock price as attractive and plans to balance share repurchases with capital allocation for acquisitions [26][27]. Question: How is the ECRI strategy performing in light of market pressures? - Management reported no significant changes in the ECRI program and noted that they are adjusting their approach based on customer behavior and churn [31][32]. Question: What is the competitive landscape like in your markets? - Management indicated that new supply has likely peaked in many markets, leading to more stability in asking rents and occupancy levels [51][52]. Question: Can you elaborate on the green shoots in your new marketing strategy? - Management highlighted improvements in visibility scores and top-of-funnel demand due to increased marketing spend and rebranding efforts [55][56]. Question: What are the challenges with the pro internalization? - Management noted that challenges are more market-driven rather than specific to individual pro properties, with some markets being particularly competitive [90][91]. Question: How many properties are earmarked for sale? - Management confirmed they have identified properties for potential sale and are evaluating strategies for reinvestment in the portfolio [96][97].
National Storage Affiliates(NSA) - 2025 Q2 - Earnings Call Transcript
2025-08-05 18:00
Financial Data and Key Metrics Changes - The company reported core FFO per share of $0.55 for Q2 2025, an 11% decline from the prior year, primarily due to decreased same store NOI and increased interest expense [13] - Same store revenues declined by 3%, driven by a lower average occupancy of 240 basis points and a year-over-year decline in average revenue per square foot of 30 basis points [13] - Expense growth was 4.6% in Q2, with property taxes, marketing, repair and maintenance, and utilities being the main drivers [14] Business Line Data and Key Metrics Changes - Same store NOI growth was negative 6.1%, reflecting the challenges faced in the current operating environment [14] - The company sold 10 properties in non-core markets and acquired one property in Texas, along with an annex in California [7][8] - RevPath improved for five consecutive months, with the year-over-year delta decreasing from 4.2% in February to 1.6% in July [11] Market Data and Key Metrics Changes - Occupancy increased by 140 basis points sequentially during Q2 to finish at 85%, with further improvement to 85.3% in July [10] - The year-over-year occupancy decline narrowed to 150 basis points in July from 220 basis points in June [10] - The company noted that new supply is projected to decline over the next few years, supporting an improving supply-demand backdrop [9] Company Strategy and Development Direction - The company is focused on improving its balance sheet metrics and remains disciplined in capital use, expecting to be a net seller of assets for the year [8][15] - Increased marketing spend and the use of concessions are part of the strategy to improve portfolio performance and occupancy [9] - The company is optimistic about the long-term outlook, particularly as the housing market recovers and new supply declines [9] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that macroeconomic conditions have not improved meaningfully, impacting occupancy and revenue expectations [6] - The elevated use of concessions during the quarter was a near-term drag on revenues, but management believes these actions are necessary given the current environment [7] - Management expressed confidence in the outlook for NSA, expecting to realize benefits from pro internalization and improved market conditions [8] Other Important Information - The company has ample liquidity with no significant debt maturities until 2026 and a current revolver balance of $400 million [15] - Adjusted guidance for 2025 includes same store revenue growth of negative 2% to 3% and core FFO per share of $2.17 to $2.23 [16] Q&A Session Summary Question: Can you walk through the scenarios underpinning the updated guidance? - Management explained that the revised guidance reflects expectations of occupancy trends and seasonal declines, with less dependency on macro conditions compared to earlier in the year [20][22] Question: How are you thinking about share repurchases given current share prices? - Management indicated that share repurchases are considered attractive but will be balanced with capital allocation decisions and maintaining balance sheet metrics [24] Question: How is the ECRI strategy performing in light of market pressures? - Management reported no significant changes in the ECRI program and noted that they are adjusting risk scores based on customer behavior [29][30] Question: What is the current state of your marketing strategy and its impact? - Management highlighted improvements in visibility scores and increased top-of-funnel demand due to enhanced marketing efforts and rebranding [56][78] Question: Can you elaborate on the challenges faced during the pro internalization? - Management noted that challenges are more market-driven rather than specific to individual properties, with some markets being particularly competitive [88] Question: What is the outlook for property dispositions and acquisitions? - Management confirmed that they have identified properties for sale and are being disciplined in capital allocation, focusing on optimizing existing portfolio performance [92][106]
National Storage (NSA) Q2 Earnings: Taking a Look at Key Metrics Versus Estimates
ZACKS· 2025-08-05 00:01
Core Insights - National Storage (NSA) reported revenue of $188.84 million for the quarter ended June 2025, reflecting a decrease of 0.8% year-over-year and a surprise of -0.36% compared to the Zacks Consensus Estimate of $189.53 million [1] - The earnings per share (EPS) for the quarter was $0.55, significantly higher than the $0.16 reported in the same quarter last year, but below the consensus estimate of $0.58, resulting in an EPS surprise of -5.17% [1] Revenue Breakdown - Rental revenue was reported at $169.84 million, slightly below the average estimate of $172.35 million, but showing a year-over-year increase of 1.1% [4] - Management fees and other revenue reached $12.23 million, compared to the estimated $12.43 million, marking a substantial year-over-year increase of 28.4% [4] - Other property-related revenue was $6.77 million, slightly above the two-analyst average estimate of $6.75 million, with a year-over-year change of 8.4% [4] Stock Performance - Over the past month, shares of National Storage have returned -9.2%, contrasting with the Zacks S&P 500 composite's increase of 0.6% [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]
National Storage (NSA) Q2 FFO and Revenues Miss Estimates
ZACKS· 2025-08-04 22:51
National Storage (NSA) came out with quarterly funds from operations (FFO) of $0.55 per share, missing the Zacks Consensus Estimate of $0.58 per share. This compares to FFO of $0.62 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an FFO surprise of -5.17%. A quarter ago, it was expected that this real estate investment trust would post FFO of $0.56 per share when it actually produced FFO of $0.54, delivering a surprise of -3.57%.Over the last four qu ...
National Storage Affiliates(NSA) - 2025 Q2 - Quarterly Results
2025-08-04 20:07
Table of Contents Page 1 Earnings Release 7 Consolidated Statements of Operations 8 Consolidated Balance Sheets 9 Schedule 1 - Funds From Operations and Core Funds From Operations 11 Schedule 2 - Other Non-GAAP Financial Measurements 12 Schedule 3 - Portfolio Summary 14 Schedule 4 - Debt and Equity Capitalization 16 Schedule 5 - Summarized Information for Unconsolidated Real Estate Ventures 17 Schedule 6 - Same Store Performance Summary By MSA 21 Schedule 7 - Same Store Operating Data - Trailing Five Quarte ...
13只看涨+2只看跌!大摩揭秘二季度机会,标普每股盈利或增5%
贝塔投资智库· 2025-07-23 04:15
Core Viewpoint - Morgan Stanley's strategy team highlights 15 stocks with short-term catalytic potential, indicating that S&P 500 index earnings growth in Q2 may exceed expectations [1] Earnings Expectations - The market anticipates a 5% year-over-year increase in S&P 500 Q2 earnings per share and over 4% revenue growth, but actual growth may be stronger [1] - The seven major tech companies are expected to see a 14% increase in net profit, while the remaining 493 constituents may experience a 3% decline [1] - Despite analysts lowering earnings expectations from April to May, the earnings revision has rebounded from -25% to approximately 1%, suggesting Q2 earnings will likely exceed expectations, aligning with the historical average of 4%-5% [1] Recommended Stocks - **argenx SE (ARGX.US)**: undervalued R&D pipeline, target price $700 [2] - **Atlassian (TEAM.US)**: continuous revenue growth potential over 20% and expected margin expansion, target price $320 [3] - **Chewy (CHWY.US)**: benefits from marketing and product optimization, expected revenue to maintain or exceed Q1 levels, target price $50 [4] - **CVS Health (CVS.US)**: advantages from competitor store closures and growth in pharmacy benefit management, target price $80 [4] - **DraftKings (DKNG.US)**: potential earnings inflection point in Q2, with actual licensing rates offsetting tax and regulatory pressures, target price $52 [4] - **Eaton Corporation (ETN.US)**: benefits from improved profit margins in U.S. electrical business, target price $375 [5] - **Eli Lilly (LLY.US)**: core products Mounjaro and Zepbound expected to contribute $8.2 billion in revenue, exceeding expectations may lead to 2025 guidance upgrades, target price $1,135 [5] - **F5 (FFIV.US)**: positive outlook due to demand growth in cloud and load balancing products, target price $305 [6] - **NVIDIA (NVDA.US)**: strong end-user demand and accelerated shipments of rack-level products supporting supply-side growth, target price $170 [7] - **Omada Health (OMDA.US)**: operational leverage through technology empowerment and multi-disease sales, target price $25 [8] - **Southwest Airlines (LUV.US)**: potential stock rebound if internal guidance is met and baggage fee impacts are confirmed as limited, target price $38 [9] - **Valley National Bank (VLY.US)**: expected net interest income growth of 3% quarter-over-quarter, target price $11 [10] - **Western Digital (WDC.US)**: undervalued gross margin expansion prospects, target price $85 [11] Cautious Outlook - **National Storage Affiliates Trust (NSA.US)**: cautious due to expected funds from operations (FFO) per share being below market and company guidance, target price $30 [12] - **Teradyne (TER.US)**: revenue and earnings per share forecasts for FY2026 are 7% and 14% below Wall Street expectations, target price $74 [13] Summary - Overall, Morgan Stanley's recommendations combine company fundamentals, industry trends, and market sentiment, providing diversified options for investors [14]
Credit Rating For The Unrated REITs (Part 5): National Storage Affiliates Trust
Seeking Alpha· 2025-07-01 15:34
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National Storage Affiliates Trust (NSA) Earnings Call Presentation
2025-06-25 13:02
Strategic Initiatives and Internalization - NSA sold a $540 million portfolio of 71 non-core assets to a private buyer[12] - NSA contributed 56 assets valued at $346.5 million into a new joint venture (2024 JV)[12] - A new joint venture (2023 JV) was formed with $400 million of committed equity capital for acquisitions, implying $1 billion of buying power with leverage up to 60%, and acquired 18 properties totaling approximately $148 million YTD[12] - Since launching the program in 2022, NSA repurchased 18.2 million common shares totaling $675 million, retiring 12% of total common shares and OP units outstanding[12] - NSA internalized its PRO structure, effective as of July 1, 2024, acquiring management agreements, intellectual property, and tenant insurance program rights for $94.9 million, consisting of 1,548,866 OP units and $32.6 million in cash[13] Financial Performance and Portfolio - NSA's total enterprise value is $10.3 billion[55] - Q3 2024 same store NOI growth was -5.3% year-over-year[55] - Q3 2024 core FFO/share growth was -7.5% year-over-year[55] - NSA's dividend rate has grown 73% over the past five years (Q4 2024 vs Q4 2019)[72] Market Position and Growth Strategy - NSA defines the Sunbelt as the following states: AL, AR, AZ, CA, FL, GA, LA, MS, NC, NM, NV, OK, SC, TN and TX, and 66% of NSA's stores are in the Sunbelt[59, 60]
National Storage Affiliates(NSA) - 2025 Q1 - Quarterly Report
2025-05-06 20:07
Revenue Performance - Total revenue decreased by $7.8 million, or 4.0%, for the three months ended March 31, 2025, compared to the same period in 2024, primarily due to the contribution of 56 self storage properties to the 2024 Joint Venture and the sale of 42 self storage properties [123]. - Rental revenue decreased by $10.9 million, or 6.0%, for the three months ended March 31, 2025, attributed to the contribution of 56 self storage properties to the 2024 Joint Venture and the sale of 42 self storage properties [124]. - Total rental revenue fell by $10.9 million, or 6.1%, from $180.4 million in Q1 2024 to $169.5 million in Q1 2025 [147]. - Same store portfolio rental revenues decreased by $5.4 million, or 3.2%, from $167.6 million in Q1 2024 to $162.2 million in Q1 2025, primarily due to a drop in average occupancy from 85.8% to 83.9% [148]. - Other property-related revenue increased by $0.1 million, or 0.8%, for the three months ended March 31, 2025, compared to the same period in 2024 [125]. - Other property-related revenue for the same store portfolio increased by $0.3 million, or 4.3%, from $6.2 million in Q1 2024 to $6.4 million in Q1 2025 [149]. Occupancy and Operational Metrics - Average portfolio occupancy declined from 85.2% for the three months ended March 31, 2024, to 83.4% for the same period in 2025 [123]. - Annualized total portfolio rental revenues per occupied square foot decreased from $15.70 to $15.58, a decline of 0.8%, driven by decreased contractual lease rates for in-place tenants [124]. - Net operating income (NOI) decreased by $11.3 million, or 8.5%, from $132.4 million in Q1 2024 to $121.1 million in Q1 2025 [151]. - EBITDA dropped by $71.3 million, or 38.3%, from $186.0 million in Q1 2024 to $114.6 million in Q1 2025 [155]. - Adjusted EBITDA decreased by $6.9 million, or 5.3%, from $129.9 million in Q1 2024 to $123.0 million in Q1 2025 [155]. Income and Expenses - Net income attributable to common shareholders decreased by $46.0 million, from $53.9 million in Q1 2024 to $7.9 million in Q1 2025 [122]. - Income before income taxes fell by $75.3 million, from $96.0 million in Q1 2024 to $20.6 million in Q1 2025 [122]. - Total operating expenses slightly decreased by $0.35 million, or 0.3%, from $121.2 million in Q1 2024 to $120.8 million in Q1 2025 [122]. - Property operating expenses for the same store portfolio rose by $1.8 million, or 3.7%, from $50.4 million in Q1 2024 to $52.2 million in Q1 2025 [150]. - General and administrative expenses decreased by $2.5 million, or 16.1%, for the three months ended March 31, 2025, primarily due to a reduction in management fees following the internalization of the PRO structure [128]. Debt and Interest Expenses - Interest expense increased by $2.4 million, from $38.1 million in Q1 2024 to $40.5 million in Q1 2025 [122]. - Interest expense increased by $2.4 million, or 6.2%, for the three months ended March 31, 2025, attributed to an increase in variable interest rate debt from $138.0 million to $425.8 million [131]. - The company had $425.8 million of debt subject to variable interest rates as of March 31, 2025, with a potential annual impact of $4.3 million on interest expense for a 100 basis point change in reference rates [190]. - Total borrowings under the credit facility as of March 31, 2025, amounted to $1.355 billion, including a $950.0 million Revolver, a $275.0 million Term Loan D, and a $130.0 million Term Loan E [168]. - As of March 31, 2025, the effective interest rates were 3.96% for Term Loan D and 4.89% for Term Loan E [169]. Cash Flow and Capital Expenditures - Cash provided by operating activities fell by $8.4 million, or 8.9%, from $94.0 million in Q1 2024 to $85.6 million in Q1 2025 [163]. - Cash used in investing activities was $9.7 million in Q1 2025, a significant decrease from $567.4 million in Q1 2024 [164]. - Capital expenditures totaled $5.7 million in Q1 2025, slightly up from $5.4 million in Q1 2024 [165]. - Cash used in financing activities decreased to $106.5 million for the three months ended March 31, 2025, from $660.0 million for the same period in 2024 [167]. Shareholder Returns and Dividends - The company paid $43.6 million in distributions to common shareholders and $5.1 million to preferred shareholders during the three months ended March 31, 2025 [185]. - The board declared a cash dividend of $0.57 per common share and OP unit, and $0.375 per Series A Preferred Share on February 13, 2025 [186]. Market and Credit Ratings - Kroll Bond Rating Agency downgraded the issuer and senior notes credit ratings to BBB from BBB+ on March 17, 2025, with a stable outlook [182]. - The self-storage business experiences seasonal fluctuations, with higher revenues typically realized from May through September [188]. - The company has an expansion option under the credit facility that could increase total borrowing capacity to $1.900 billion if fully exercised [168]. - Interest rate swaps are used to moderate exposure to interest rate risk, converting variable rate debt to fixed rates [189].