At Trade With Beta , we also pay close attention to closed-end funds and are always keeping an eye on them for directional and arbitrage opportunities created by market price deviations. As you can guess, timing is crucial in these kinds of trades; therefore, you are welcome to join us for early access and the discussions accompanying these kinds of trades.In today's article, we will look in detail at National Storage Affiliates Trust ( NSA ), and we will try to give it a credit rating using Moody's methodo ...

Core Insights - Old Dominion University has achieved a significant milestone by becoming the first institution to receive dual validation from the NSA for its innovative cyber and artificial intelligence programs, setting a new national benchmark in cybersecurity education [1][6] - The university's cybersecurity programs are validated through 2030, demonstrating a long-term commitment to excellence in the field [2][6] - Old Dominion University is the only institution in Virginia and one of ten nationwide to earn all three of NSA's Centers of Academic Excellence designations, highlighting its leadership in preparing students for the intersection of artificial intelligence and cyber defense [3][6] Program Details - The Bachelor of Science in Cybersecurity with a Major in Artificial Intelligence for Cybersecurity received AICyber validation, while the Master of Science in Cybersecurity with a concentration in AI Security was validated for the SecureAI program [2] - The School of Cybersecurity has grown significantly since its inception in 2015, enrolling approximately 1,700 students this fall and graduating over 1,500 alumni [4] Partnerships and Opportunities - Old Dominion University has developed partnerships with national agencies and companies, including local military bases, the NSA, and Amazon, to provide students with internship, research, and certification opportunities [5] - This commitment to innovation ensures that graduates are well-equipped to lead in the cybersecurity industry [5]

Norfolk, VA, Dec. 15, 2025 (GLOBE NEWSWIRE) -- Old Dominion University’s School of Cybersecurity is setting a new national benchmark in cybersecurity education in becoming the first institution to receive dual validation for its pioneering cyber and artificial intelligence programs from the National Security Agency (NSA). This groundbreaking achievement advances the University’s leadership in preparing students for the rapidly evolving technological landscape where artificial intelligence intersects with cy ...

National Storage Affiliates Trust ( NSA ) is now trading around the levels from the pandemic, offering a solid opportunity thanks to their PRO-Transition moves combined with potential for macro improvements thanks especially to rate cutsAs of 2025, I've got over 10 years of researching companies. In total, throughout my investing life, I estimate that I researched (in depth) well over 1000 companies, from commodities like oil, natural gas, gold and copper to tech like Google or Nokia and many emerging marke ...

Core Viewpoint - The article discusses a selection of stocks with high dividend yields that are currently viewed unfavorably by Wall Street analysts, suggesting potential investment opportunities in these "hated" stocks. Group 1: Real Estate Investment Trusts (REITs) - National Storage Affiliates Trust (NSA) has a yield of 7.9% and operates 1,069 properties across 37 states and Puerto Rico, benefiting from a recession-resistant business model, although it is currently facing a 20% pullback in performance [3][4] - NSA's recent quarter showed declines in earnings, core FFO, same store net operating income, and occupancy, reflecting broader challenges in the self-storage sector rather than unique issues for NSA [3][4] - Alexander's (ALX) has an 8.5% yield and is highly concentrated, with 60% of its revenues coming from tenant Bloomberg. The company is in discussions for loan restructuring after failing to repay a $300 million loan [5][6] - Despite challenges, ALX has shown double-digit total returns in 2025, outperforming the broader real estate sector, but Wall Street remains skeptical due to dividend concerns [7] Group 2: Talent Solutions and Consulting - Robert Half (RHI) has a yield of 9.0% and operates in contract talent solutions, permanent placement, and consulting services. The company has seen its stock price drop 80% since its peak in 2022, leading to more Sell and Hold ratings than Buys [10][11] - The decline in RHI's stock is attributed to a post-COVID hiring moderation, with significant job losses reported, although the company believes the impact of AI on its business is overstated [12][13] - RHI's earnings are expected to drop by 45% this year, raising concerns about dividend coverage as the payout is projected to exceed earnings through at least the end of 2026 [14] Group 3: Crafting and Creativity Platform - Cricut (CRCT) boasts a high yield of 20.6% and operates as a creativity platform, offering machines and software for crafting. The company initiated a new semiannual dividend program despite declining profits [16][17] - The stock has seen a significant decline, leading to a yield increase above 20%, with analysts recommending selling the stock [19] - Despite a loyal user base and expected profit growth of over 20% in 2025, Cricut faces challenges with flat or declining revenues projected in the coming years, particularly if economic conditions affect holiday shopping [20][21]

Core Viewpoint - The article discusses four high dividend yield stocks, ranging from 7.9% to 20.6%, that are currently being overlooked by Wall Street analysts despite their potential for income generation [1][2]. Group 1: National Storage Affiliates Trust (NSA) - NSA is a self-storage REIT with a yield of 7.9%, operating 1,069 properties across 37 states and Puerto Rico, and is considered recession-resistant [3][4]. - The stock has experienced a 20% decline in 2025, attributed to lower earnings and occupancy rates, although similar trends are seen in competitors, indicating broader industry challenges [4][5]. - NSA's payout coverage is tightening, with expected earnings of $2.20 per share against a dividend payout of $2.28, leading to concerns about sustainability [5]. Group 2: Alexanders (ALX) - ALX, yielding 8.5%, is a concentrated landlord with significant reliance on a single tenant, Bloomberg, which accounts for 60% of its revenue [6][7]. - The company is facing financial difficulties, including a loan restructuring discussion after failing to repay a $300 million loan [7]. - Despite these issues, ALX has delivered double-digit total returns in 2025, outperforming the broader real estate sector [8]. Group 3: Robert Half (RHI) - RHI has a yield of 9.0% and operates in talent solutions and consulting, but its stock has plummeted 80% since its peak in 2022, leading to more Sell and Hold ratings than Buys [10][11]. - The company is facing challenges from AI's impact on job placements, although its CEO argues that the effects are overstated for experienced roles [14][15]. - RHI's dividend payout is projected to exceed earnings significantly, with expected profits dropping by 45% this year [15]. Group 4: Cricut (CRCT) - Cricut boasts a high yield of 20.6% and operates as a creativity platform, but its profitability is declining despite recent dividend commitments [17][18]. - The company has seen a significant drop in stock price, leading to a yield increase, yet analysts are pessimistic about its future growth prospects [19][20]. - Revenue projections indicate potential stagnation or decline, particularly if economic conditions affect holiday sales, which are crucial for the company [21].

Revenue Performance - Total revenue decreased by $4.9 million, or 2.5%, for the three months ended September 30, 2025, compared to the same period in 2024, primarily due to a decline in average occupancy from 86.0% to 84.5%[135] - Rental revenue decreased by $4.6 million, or 2.6%, for the three months ended September 30, 2025, attributed to the same decline in average occupancy and the sale of 12 self storage properties[136] - Total revenue decreased by $14.3 million, or 2.5%, for the nine months ended September 30, 2025, attributed to a decline in average occupancy from 85.8% to 83.8%[150] - Rental revenue decreased by $20.0 million, or 3.8%, for the nine months ended September 30, 2025, driven by lower average occupancy and the sale of self-storage properties[151] - Total rental revenue for the three months ended September 30, 2025, was $169.9 million, down from $174.5 million in 2024, reflecting a decrease of $4.6 million[176] Operating Expenses - Total operating expenses increased slightly by $0.7 million, or 0.6%, for the three months ended September 30, 2025, compared to the same period in 2024[134] - Property operating expenses increased by $6.5 million, or 4.1%, for the nine months ended September 30, 2025, compared to the same period in 2024[154] - Same store portfolio property operating expenses increased by $2.5 million, or 4.9%, for the three months ended September 30, 2025, driven by higher marketing, property tax, and utilities expenses[179] - Total property operating expenses for the nine months ended September 30, 2025, increased by $6.5 million, or 4.1%, compared to the same period in 2024[180] Net Income - Net income attributable to common shareholders for the three months ended September 30, 2025, was $13.31 million, a decrease of $0.28 million compared to the same period in 2024[134] - Net income for the three months ended September 30, 2025, was $29.0 million, slightly down from $29.8 million in 2024[184] - Net income attributable to common shareholders decreased from $79.5 million to $35.5 million for the nine months ended September 30, 2025[149] Funds from Operations (FFO) - Funds from operations (FFO) attributable to common shareholders for the three months ended September 30, 2025, was $75,070,000, down from $82,365,000 in 2024, a decline of 8.9%[168] - Core FFO for the nine months ended September 30, 2025, was $224,313,000, slightly down from $227,508,000 in 2024, indicating a decrease of 1.1%[168] - FFO per share for the three months ended September 30, 2025, was $0.56, down from $0.61 in 2024, a decrease of 8.2%[171] - Core FFO per share for the nine months ended September 30, 2025, was $1.66, compared to $1.84 in 2024, indicating a decline of 9.8%[171] Property and Portfolio Information - As of September 30, 2025, the company owned 807 self storage properties across 33 states and Puerto Rico, comprising approximately 51.6 million rentable square feet[126] - The company's unconsolidated real estate ventures currently own 262 properties, with a third-party interest valued at approximately $2.1 billion[127] - The company disposed of 12 self storage properties during the nine months ended September 30, 2025, and contributed 56 properties to the 2024 Joint Venture in the previous year[132] Cash Flow and Capital Expenditures - Operating cash flow decreased to $265.7 million for the nine months ended September 30, 2025, down from $282.9 million in the same period of 2024, primarily due to a decline in rental revenue and average occupancy dropping from 85.8% to 83.8%[197] - Cash provided by investing activities was $10.8 million for the nine months ended September 30, 2025, a significant decrease from $470.9 million in the same period of 2024, with $72.1 million from the sale of 12 self-storage properties[198] - Total capital expenditures increased to $26.6 million for the nine months ended September 30, 2025, compared to $13.5 million in 2024, with recurring capital expenditures at $15.7 million and value-enhancing expenditures at $9.7 million[200] Debt and Interest Rates - Interest expense increased by $7.4 million, or 6.4%, for the nine months ended September 30, 2025, due to the maturity of interest rate swaps and an increase in variable-rate debt from $186.8 million to $404.4 million[158] - The effective interest rates for outstanding loans as of September 30, 2025, were 4.11% for Term Loan D and 5.03% for Term Loan E[203] - As of September 30, 2025, the company had $404.4 million of debt subject to variable interest rates, which could impact future earnings by approximately $4.0 million annually with a 100 basis point change in reference rates[227] Shareholder Distributions - During the nine months ended September 30, 2025, the company paid $131.0 million in distributions to common shareholders and $15.3 million to preferred shareholders[219] - A cash dividend of $0.57 per common share and OP unit was declared, with a record date of September 15, 2025[220] - Cash distributions of $0.375 per Series A and B Preferred Shares were also declared, with the same record date of September 15, 2025[220] Market and Regulatory Environment - The self-storage business experiences seasonal fluctuations, with higher occupancy typically in July and lower in February, affecting revenue and profit realization[222] - Interest rate risk is the primary market risk, with the company using interest rate swaps to convert variable rate debt to fixed rates[226] - The enactment of the One Big Beautiful Bill Act (OBBB) on July 4, 2025, introduces major changes affecting the taxation of REITs and their investors[224]

Financial Data and Key Metrics Changes - The company reported Core FFO per share of $0.57 for Q3 2025, an 8% decline from the prior year, primarily due to a decrease in same-store NOI and an increase in interest expense [9] - Same-store revenues declined by 2.6%, driven by a lower average occupancy of 150 basis points and a year-over-year decline in average revenue per square foot of 40 basis points [9][10] - Expense growth was 4.9% in Q3, with property taxes, marketing, and utilities being the main drivers [10] Business Line Data and Key Metrics Changes - Rental revenue was down 2.2% year-over-year in Q3, an improvement from a negative 3.2% in the first half of 2025 [10] - The other property-related revenue line item faced a difficult comparison due to outsized performance in the previous year [10] Market Data and Key Metrics Changes - Contract rates in October improved by 160 basis points compared to the previous year, while occupancy ended October at 84.3%, down 170 basis points year-over-year [4][9] - The company is optimistic about the self-storage sector's outlook for 2026 and beyond, citing expected reductions in new supply and potential increases in storage demand due to lower mortgage rates [5] Company Strategy and Development Direction - The company is focusing on improving occupancy levels and revenue growth through increased marketing spend, competitive positioning, and solid execution of the sales process [8] - A preferred investment program was launched to enhance earnings growth and return to being a growth company [6][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position for 2026, citing improvements in occupancy levels and contract rates [19][20] - The company believes it has reached an inflection point, with positive momentum in same-store revenue growth and operational stability [6][7] Other Important Information - The company amended its credit facility agreement, resulting in nearly $1 million of annual interest savings [13] - The company maintains ample liquidity and healthy access to various sources of capital, with no significant debt maturities until the second half of 2026 [13] Q&A Session Summary Question: What makes the company confident compared to peers? - Management highlighted the structural improvements made over the past couple of years, including consolidating brands and operating platforms, which have positioned the company for better performance [17][19] Question: What is the outlook for capital recycling? - Management indicated ongoing efforts in capital recycling, with some properties currently on the market and a focus on operational efficiency and returns for shareholders [22][24] Question: How do improved street rates impact same-store revenue growth? - Management noted that closing the occupancy gap and positioning in the market will help drive revenue growth, with confidence in the ECRI strategy to maximize rate changes [28][29] Question: What are the demand drivers for the quarter? - Management observed that moving remains a top reason for storage usage, but there hasn't been a significant shift in housing-related demand despite lower mortgage rates [95] Question: Why not narrow guidance at this point? - Management explained that the historical approach has been to leave guidance unchanged unless there are material changes, allowing for a consistent outlook [97]

Financial Performance - Reported net income of $29.0 million for Q3 2025, a decrease of 2.5% compared to Q3 2024[6] - Core funds from operations (Core FFO) of $76.5 million, or $0.57 per share, representing an 8.1% decrease per share compared to Q3 2024[6] - Year-over-year same store total revenue decreased by 2.6% for Q3 2025, primarily due to a 150 basis point decrease in average occupancy[12] - For the three months ended September 30, 2025, total revenue was $188.7 million, a decrease of 2.4% from $193.6 million in the same period of 2024[32] - Rental revenue for the same period was $169.9 million, down 2.9% from $174.5 million year-over-year[32] - Net income attributable to common shareholders for the three months ended September 30, 2025, was $13.3 million, compared to $13.6 million in the prior year, reflecting a decrease of 2.0%[32] - Funds From Operations (FFO) attributable to common shareholders for the three months ended September 30, 2025, was $75.1 million, down from $82.4 million in the prior year[36] - Core FFO per share for the three months ended September 30, 2025, was $0.57, compared to $0.62 in the same period of 2024[36] - Net Operating Income (NOI) for the three months ended September 30, 2025, was $121.02 million, a decrease from $129.16 million in 2024[40] - EBITDA for the three months ended September 30, 2025, was $122.51 million, slightly down from $123.61 million in 2024[41] Occupancy and Store Performance - Same store period-end occupancy was 84.5% as of September 30, 2025, a decrease of 140 basis points from September 30, 2024[6] - The company operated 1,069 self-storage properties as of September 30, 2025, with approximately 69.8 million rentable square feet[26] - Total occupancy rate for the same store pool decreased to 84.5% in Q3 2025 from 85.9% in Q3 2024, a decline of 1.4%[61] - Average occupancy for the total portfolio was 84.5% in Q3 2025, down from 85.9% in Q3 2024[68] - Average occupancy at period end was 84.5% in Q3 2025, compared to 85.0% in Q2 2025[68] - The average occupancy across all MSAs was 84.5% in Q3 2025, compared to 85.9% in Q3 2024, reflecting a 1.4% decline[61] Revenue and Expenses - Total revenue for the three months ended September 30, 2025, was $3,259 million, a significant increase from $28,011 million in the same period in 2018[56] - Property operating expenses for the three months ended September 30, 2025, were $1,376 million, a decrease from $9,022 million in 2018, indicating improved cost management[56] - Year-to-date property operating expenses increased by 4.4% to $157,795,000 from $151,172,000 in 2024[64] - Total property operating expenses for YTD 2025 were $157.795 million, an increase from $151.172 million in YTD 2024[68] - Average annualized rental revenue per occupied square foot was $15.68 in Q3 2025, down from $15.78 in Q3 2024[68] Acquisitions and Dispositions - The company acquired two self-storage properties for approximately $32.0 million during Q3 2025[6] - The company acquired 7 self-storage properties during 2025, totaling 3,392 units and 407,630 square feet, with total acquisition costs amounting to $74,879,000[46] - In the quarter ended September 30, 2025, the company disposed of 2 self-storage properties, generating net proceeds of $5,962,000 from 553 units and 82,972 square feet sold[47] Debt and Financing - As of September 30, 2025, NSA has approximately $543.6 million of available capacity on its $950.0 million revolving line of credit[16] - The company’s debt financing stood at $3.40 billion as of September 30, 2025, slightly down from $3.45 billion at the end of 2024[34] - As of September 30, 2025, total debt amounts to $3,403,399,000 with a weighted average effective interest rate of 4.50%[48] - The net debt to annualized current quarter adjusted EBITDA ratio is 6.7x, while the trailing twelve-month fixed charge coverage ratio is 2.6x[52] - Total leverage ratio stands at 46.6%, which is below the covenant limit of 60.0%[52] Guidance and Future Outlook - The company expects an improvement in self-storage fundamentals supported by an improving supply/demand balance in 2026 and beyond[5] - NSA reaffirms its Core FFO guidance for the year ended December 31, 2025, with estimates of $2.17 to $2.23 per share[18] - The company plans to participate in the Jefferies Real Estate Conference on November 17-19, 2025, and the Nareit REITworld 2025 Annual Conference on December 8-11, 2025[25] Management and Operational Metrics - Funds from operations (FFO) is a key performance measure for NSA, defined as net income excluding real estate depreciation and amortization, with adjustments for equity in earnings from unconsolidated ventures[78] - Core FFO is further adjusted to eliminate the impact of non-core items, such as acquisition costs and executive severance costs, providing a clearer view of operational performance[79] - Net operating income (NOI) represents rental revenue plus other property-related revenue less property operating expenses, serving as a primary measure of economic productivity for NSA's properties[82][91] - The company emphasizes that FFO and Core FFO should be considered alongside GAAP measures like total revenues and net income for a comprehensive understanding of performance[80]

Core Viewpoint - Four real estate stocks have shown significant declines in momentum despite the Federal Reserve entering a rate-cutting cycle, indicating persistent challenges in the sector's risk appetite and investor sentiment [2][9]. Group 1: Stock Performance - Cherry Hill Mortgage Investment Corp. (CHMI) saw its momentum score decrease from 10.68 to 10.50, a drop of 0.18 percentile points, with a year-to-date decline of 3.82% and a 30.58% drop over the past year [8]. - National Storage Affiliates Trust (NSA) experienced a momentum percentile slip from 10.68 to 9.35, a decrease of 1.33 points, with an 18.98% decline year-to-date and a 37.14% drop over the year [8]. - Sachem Capital Corp. (SACH) also saw its momentum score fall from 10.68 to 9.35, mirroring NSA's decline, with an 11.11% year-to-date drop and a 55.56% decline over the year [8]. - Smith Douglas Homes Corp. (SDHC) had its ranking decrease from 10.11 to 9.01, a reduction of 1.10 percentile points week-on-week, reflecting uncertainty around housing starts and affordability [7]. Group 2: Market Context - The underperformance of these four realty stocks is notable as rate reductions by the Fed typically stimulate the real estate sector by lowering capital costs and boosting demand [9]. - The decline in momentum rankings suggests that company-specific risks, such as credit quality and supply imbalances, are currently outweighing macro-level benefits [9].