Company Update November 2024 Forward-Looking Statements And Non-GAAP Financial Measures Forward-Looking Statements: We make forward-looking statements in this presentation that are subject to risks and uncertainties. These forward-looking statements include information about possible or assumed future results of our business, financial condition, liquidity, results of operations, plans and objectives. When we use the words "believe," "expect," "anticipate," "estimate," "plan," "continue," "intend," "should, ...

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 March 31, 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 jurisdi ...

National Storage Affiliates Trust (NSA) Q1 2025 Earnings Call May 06, 2025 01:00 PM ET Company Participants George Hoglund - VP - IRDavid Cramer - President, CEO & TrusteeBrandon Togashi - EVP & CFOEric Wolfe - DirectorSamir Khanal - DirectorRobin Haneland - Senior Equity Research AssociateMichael Griffin - DirectorSalil Mehta - Equity Research AssociateRonald Kamdem - Managing Director & Head of US REITs and CRE ResearchRavi Vaidya - Vice PresidentOmotayo Okusanya - Managing Director Conference Call Partic ...

National Storage Affiliates Trust (NSA) Q1 2025 Earnings Call May 06, 2025 01:00 PM ET Company Participants George Hoglund - VP - IRDavid Cramer - President, CEO & TrusteeBrandon Togashi - EVP & CFOEric Wolfe - DirectorSamir Khanal - DirectorRobin Haneland - Senior Equity Research AssociateMichael Griffin - DirectorSalil Mehta - Equity Research AssociateRonald Kamdem - Managing Director & Head of US REITs and CRE ResearchRavi Vaidya - Vice PresidentOmotayo Okusanya - Managing Director Conference Call Partic ...

Financial Data and Key Metrics Changes - The company reported core FFO per share of $0.54 for Q1 2025, a 10% decline from the prior year due to decreased same store NOI and increased interest expense [13] - Same store revenues declined by 3%, driven by a 190 basis point decrease in average occupancy and a 1% year-over-year decrease in average revenue per square foot [13] - Expense growth was 3.7% in Q1, with marketing, repairs and maintenance, and utilities being the main drivers, partially offset by a decrease in personnel costs [13][14] Business Line Data and Key Metrics Changes - The company experienced a sequential improvement in same store revenue growth by 130 basis points year-over-year, with all but three reported same store markets showing improvement [6] - Contract rates increased approximately 5% in April compared to Q1 levels, while occupancy increased by 20 basis points to finish April at 83.8% [8][10] - The ECRI program continues to perform well, with the length of stay above historical averages and bad debt expense within expected ranges [7] Market Data and Key Metrics Changes - Portland and Houston were highlighted as top-performing markets, with Portland delivering positive revenue growth and Houston generating 2.2% revenue growth in the quarter [10][12] - The company noted a steady flow of acquisition opportunities despite broader economic uncertainty, successfully closing on three assets totaling approximately $40 million during the quarter [11] Company Strategy and Development Direction - The company is focused on operational improvements following the Pro transition, leveraging consolidated operating platforms and upgraded marketing tools to enhance customer acquisition and pricing strategies [7][12] - The management expressed confidence in the self-storage sector's resilience and noted significant investor interest, as evidenced by the recent IPO of a peer company [12] Management's Comments on Operating Environment and Future Outlook - Management believes they have found a trough in fundamentals, with encouraging trends in contract rents and an improving supply outlook [11] - The company expects to see sequential improvement in same store NOI growth as the year progresses, despite anticipating negative growth in the second quarter [16][30] Other Important Information - The company has no debt maturities in 2025 and a current revolver balance of $444 million, providing approximately $500 million of availability [15] - The company is actively managing its portfolio, planning to exit markets where they have single assets and focusing on improving operational efficiencies [97] Q&A Session Summary Question: Can you provide perspective on the recent contract rate increase and occupancy trends? - Management noted that sequential improvements in contract rates and occupancy were observed, with a positive trend in move-in rates as well [20][21] Question: What are the expectations for revenue growth in the second half of the year? - Management indicated that while the second quarter is expected to be negative for revenue and NOI, they anticipate positive growth in the back half of the year [30][31] Question: How are promotions and discounts trending for new tenants? - Management confirmed that while there has been an increase in promotional discounts, they remain within historical ranges and are being used strategically to attract new tenants [60][61] Question: What are the current demand drivers for self-storage? - Management highlighted various demand drivers, including transitions, small businesses, and residential needs, while noting that the lack of home sales is currently impacting occupancy [100][101] Question: How does the company view the impact of tariffs on tenants? - Management stated that while tariffs could potentially impact tenants, they have not yet seen any direct effects or feedback from customers regarding this issue [117]

National Storage (NSA) reported $188.35 million in revenue for the quarter ended March 2025, representing a year-over-year decline of 4%. EPS of $0.54 for the same period compares to $0.65 a year ago.The reported revenue represents a surprise of +0.42% over the Zacks Consensus Estimate of $187.56 million. With the consensus EPS estimate being $0.56, the EPS surprise was -3.57%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Str ...

分组1 - National Storage (NSA) reported quarterly funds from operations (FFO) of $0.54 per share, missing the Zacks Consensus Estimate of $0.56 per share, and down from $0.60 per share a year ago, representing an FFO surprise of -3.57% [1] - The company posted revenues of $188.35 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.42%, but down from $196.15 million year-over-year [2] - Over the last four quarters, National Storage has surpassed consensus FFO estimates two times and topped consensus revenue estimates two times [2] 分组2 - The stock's immediate price movement will depend on management's commentary on the earnings call and future FFO expectations [3][4] - National Storage shares have lost about 0.5% since the beginning of the year, compared to the S&P 500's decline of -3.3% [3] - The current consensus FFO estimate for the coming quarter is $0.58 on $189.51 million in revenues, and $2.32 on $761.62 million in revenues for the current fiscal year [7] 分组3 - The Zacks Industry Rank for REIT and Equity Trust - Other is currently in the bottom 37% of over 250 Zacks industries, indicating potential challenges for the sector [8] - Empirical research shows a strong correlation between near-term stock movements and trends in estimate revisions, which can impact investor decisions [5][6]

Financial Performance - Reported net income of $19.5 million for Q1 2025, a decrease of 79.5% compared to Q1 2024[6] - Core funds from operations (Core FFO) of $73.4 million, or $0.54 per share, a decrease of 10.0% per share compared to Q1 2024[6] - Total revenue for Q1 2025 was $188,354, a decrease of 4.0% from $196,148 in Q1 2024[30] - Net income attributable to common shareholders for Q1 2025 was $7,880, down 85.2% from $53,917 in Q1 2024[30] - Earnings per share - diluted decreased to $0.10 in Q1 2025 from $0.65 in Q1 2024[36] - Adjusted EBITDA for Q1 2025 was $123,009, down from $129,927 in Q1 2024, reflecting a decrease of 5.4%[39] - Cash and cash equivalents decreased to $19,266 as of March 31, 2025, from $50,408 at December 31, 2024[31] - Total assets decreased to $5,255,004 as of March 31, 2025, from $5,354,462 at December 31, 2024[31] - Total revenue for the three months ended March 31, 2025, was $61,624 million, a significant increase from $9,221 million in the same period of 2024[57] - Net operating income for the same period was $39,208 million, compared to $4,941 million in 2024, reflecting strong operational performance[57] - The company reported a net loss of $272 million for the three months ended March 31, 2025, an improvement from a net loss of $2,691 million in the same period of 2024[57] Operational Metrics - Same store net operating income (NOI) decreased by 5.7% for Q1 2025, driven by a 3.0% decrease in same store total revenues[6] - Same store period-end occupancy was 83.6% as of March 31, 2025, a decrease of 240 basis points compared to March 31, 2024[6] - Total revenues for same store operations were $168.7 million, a decrease of 3.0% compared to Q1 2024[11] - The average annualized rental revenue per occupied square foot decreased by 1.0% to $15.70 for Q1 2025[11] - Net Operating Income (NOI) for Q1 2025 was $121,115, a decline of 8.5% compared to $132,380 in Q1 2024[38] - Average occupancy at the end of Q1 2025 was 83.6%, down from 84.7% in Q4 2024, a decrease of 1.1 percentage points[64] - Average annualized rental revenue per occupied square foot in Q1 2025 was $15.70, slightly up from $15.60 in Q4 2024, an increase of 0.6%[64] - Average occupancy for the same store portfolio decreased to 83.9% in Q1 2025 from 85.8% in Q1 2024[67] Expenses and Costs - Property operating expenses increased by 3.7% year-over-year for Q1 2025[12] - The company incurred acquisition and integration costs of $2,445 in Q1 2025, compared to $507 in Q1 2024[30] - Property operating expenses for Q1 2025 totaled $55,104,000, an increase from $54,694,000 in Q1 2024[67] - General and administrative expenses decreased to $13,145,000 in Q1 2025 from $15,674,000 in Q1 2024, a reduction of 16.3%[67] Debt and Financing - The company has approximately $522.5 million of available capacity on its $950.0 million revolving line of credit as of March 31, 2025[14] - As of March 31, 2025, total debt amounts to $3,436,060,000 with a weighted average effective interest rate of 4.54%[48] - The net debt to annualized current quarter adjusted EBITDA ratio is 6.9x, while the trailing twelve-month fixed charge coverage ratio is 2.7x[52] - Total leverage ratio stands at 45.1%, well below the covenant limit of 60.0%[52] Acquisitions and Dispositions - Acquired three wholly-owned self storage properties for approximately $13.5 million during Q1 2025[6] - The company acquired 3 self-storage properties during the quarter ended March 31, 2025, adding 107,041 rentable square feet at an acquisition cost of $12,434,000, with total investment reaching $13,494,000[44] - The company disposed of 2 self-storage properties during the same quarter, generating net proceeds of $9,752,000 from 82,270 rentable square feet[45] - The company’s acquisition strategy focuses on expanding its footprint in key markets, as evidenced by recent acquisitions in Kansas and New Mexico[46] Portfolio Overview - As of March 31, 2025, the company operates a total of 1,075 stores with a rentable square footage of 70,208,353, achieving an overall occupancy rate of 83.3%[42] - The company’s wholly-owned portfolio includes 816 stores with a total rentable square footage of 52,199,772 and an occupancy rate of 83.1%[42] - The highest occupancy rate among states is in Oregon at 87.2% for wholly-owned stores[42] - The company has a diverse portfolio across multiple states, including significant operations in Texas, California, and Florida[42] Future Outlook - NSA reaffirms Core FFO guidance for 2025, estimating Core FFO per share between $2.30 and $2.38[16] - The company plans to continue focusing on market expansion and new product development to drive future growth[58] - The company continues to optimize its portfolio through strategic dispositions, enhancing overall asset quality and liquidity[45]

Core Insights - Noor Darwish, a former management consultant at BCG, has shifted his investment strategy to focus on companies trading at significant discounts to their net asset value or liquidation value, as well as crypto-related equities [1] - In February 2023, Noor fully rotated his portfolio into crypto, investing in GDLC at $6 per share and selling at $21, achieving a 250% portfolio gain, which outperformed both Bitcoin and the broader market [1] - Noor has also transitioned into other Grayscale private placements, which yielded an 80% gain in 6 months, and relocated to Puerto Rico to benefit from a 0% capital gains tax rate under the Act 60 program [1] Investment Strategy - The investment focus is on companies with substantial discounts to net asset value or liquidation value, indicating a value-oriented approach [1] - The strategy includes a significant allocation to cryptocurrencies, reflecting a trend towards digital assets [1] - The decision to move to Puerto Rico is aimed at optimizing tax efficiency for capital gains, particularly in anticipation of future gains from crypto investments [1] Company Operations - Noor runs OverApply, a job application service that automates the job search process for clients, having applied to over 300,000 jobs resulting in more than 4,000 interviews and 500 job offers [1]

Financial Data and Key Metrics Changes - The company reported core FFO per share of $0.60 for Q4 2024 and $2.44 for the full year, at the high end of guidance, driven by better-than-expected G&A and management fees [18] - Same-store revenue declined by 4.3% in Q4, with a 2.5% drop in rent revenue per square foot and a 180 basis point year-over-year decline in average occupancy [18][19] - Expense growth was 4.7% in Q4 and 3.7% for the full year, primarily driven by property tax, marketing, and utilities [19] Business Line Data and Key Metrics Changes - The company internalized its pro structure, consolidating brands from 12 to 7 and onboarding approximately 250 properties and over 380 employees [9] - The company sold 49 core facilities for over $270 million and used proceeds to pay down debt and purchase $65 million of properties [11] Market Data and Key Metrics Changes - The housing turnover in the U.S. is at its lowest levels in 40 years, creating pent-up demand that could contribute to recovery [12] - New deliveries in the company's markets are expected to decline from 3.5% in 2024 to 2% by 2027, below the long-term national average [14] Company Strategy and Development Direction - The company aims to maximize the performance of its existing portfolio using consolidated operating platforms and upgraded marketing tools [11] - The medium-term outlook for the self-storage sector is positive, with expectations of recovery in the housing market benefiting the company [12][14] Management's Comments on Operating Environment and Future Outlook - Management noted that while current operating conditions are challenging, the outlook for the self-storage sector is improving due to declining supply and potential recovery in housing [12][14] - The company expects same-store NOI growth to improve from negative mid-single digits at the start of the year to positive growth by year-end [26] Other Important Information - The company has no debt maturities in 2025 and a current revolver balance of approximately $430 million, providing over $500 million of availability [20] - The company has implemented a new $400 million ATM program and a $350 million share repurchase program [20] Q&A Session Summary Question: Guidance on revenue growth and occupancy rate - Management explained that the guidance reflects a transition year with expectations of improved occupancy and revenue growth due to internal efficiencies and market conditions [31][34] Question: Impact of California wildfires on growth - Management indicated minimal impact from the wildfires, as only eight stores are in affected areas [41][42] Question: Capital recycling and market transactions - Management confirmed plans for more dispositions and acquisitions, with a focus on operational efficiency and market opportunities [43][46] Question: Improvement in market conditions - Management noted a mixture of improving market conditions and internal operational improvements contributing to the guidance [62][64] Question: Internalization completion and third-party management - Management confirmed the completion of internalization and identified two markets where third-party management will continue [66][68] Question: Recovery in the housing market - Management stated that the guidance assumes no worse than 2024 for the housing market, with expectations of modest improvement [75][84] Question: Supply and delivery expectations - Management projected a decline in new supply deliveries from 3.5% in 2024 to 2% by 2027, indicating a gradual absorption of existing supply [98][100] Question: Revenue guidance and pricing assumptions - Management clarified that the revenue guidance assumes modest improvement in pricing and occupancy compared to the previous year [110][112]