Group 1 - The National Storage Affiliates Trust (NSA) held its Fourth Quarter 2024 earnings conference call on February 27, 2025, with key participants including the President and CEO, CFO, and Investor Relations VP [1][2][3] - The conference call included a formal presentation followed by a question-and-answer session for registered financial analysts [2][3] - Management provided a supplemental package with additional details on the company's results, available on the investor relations section of the company's website [4]

Financial Data and Key Metrics Changes - Core FFO per share for Q4 2024 was reported at $0.60, and for the full year at $2.44, which was at the high end of guidance [18] - Same store revenue declined by 4.3% in Q4, driven by a 2.5% decrease in rent revenue per square foot and a 180 basis point year-over-year decline in average occupancy [18][19] - Year-over-year NOI growth was down 5.5%, with expense growth at 4.7% for Q4 and 3.7% for the full year [18][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 - Housing turnover in the U.S. is at historically low levels, creating pent-up demand that is expected to contribute to recovery [12] - New deliveries in the company's markets are projected to decline from 3.5% in 2024 to 2% by 2027, which is 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 benefiting from a housing market recovery [12] 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 reduced supply and potential recovery in housing [12][14] - The company expects to see sequential improvement in same-store NOI growth, starting in the negative mid-single digits and potentially reaching positive growth by year-end [26] Other Important Information - The company has no debt maturities in 2025 and has established a $400 million ATM program and a $350 million share repurchase program [20] - The leverage ratio was reported at 6.5 times net debt to EBITDA at the end of the quarter [21] 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 [32][34] Question: Impact of California wildfires on growth - Management indicated minimal impact from the wildfires, as only eight stores are located in affected areas [42] Question: Capital recycling and market transactions - Management confirmed plans for more dispositions and acquisitions, with a focus on operational efficiency and market opportunities [44][46] Question: Market conditions and housing recovery - Management acknowledged mixed signals in the housing market but remains cautiously optimistic about a recovery impacting demand [74][76] Question: Internalization completion and market strategy - Management confirmed the internalization process is complete, with two pros remaining in specific markets [68] Question: Supply and delivery expectations for 2025 - Management projected a decline in new supply deliveries, with expectations for gradual absorption of existing supply [98][100] Question: Guidance on property taxes and insurance - Management provided insights on operating expense guidance, indicating property taxes would grow in line with overall expense growth [115] Question: Acquisition strategy and market cap rates - Management noted stable cap rates despite interest rate volatility, with ongoing acquisition strategies balancing between JV capital and balance sheet [132][134]

Portfolio and Acquisitions - As of December 31, 2024, the company operated a portfolio of 1,074 self-storage properties across 42 states and Puerto Rico, totaling approximately 70.2 million rentable square feet and 552,000 storage units[18]. - In 2024, the company acquired 7 self-storage properties with a total fair value of approximately $64.9 million, comprising 462,942 rentable square feet and 3,420 units[28]. - During 2024, the company sold 40 self-storage properties for approximately $273.1 million, consisting of about 2.6 million rentable square feet and 19,000 storage units[30]. - The company’s 2024 Joint Venture owned 56 self-storage properties with approximately 3.2 million rentable square feet and 24,000 storage units, in which the company holds a 25% ownership interest[34]. - The company’s portfolio is primarily located in high-quality growth markets, with over 70% situated in the top 100 metropolitan statistical areas[38]. - The company’s joint ventures, as of December 31, 2024, represent approximately $2.0 billion in gross real estate assets, presenting potential acquisition opportunities[43]. - The company has a diversified portfolio with properties located in 38 states and Puerto Rico, enhancing its market presence[170]. - The company executed new asset management and property management agreements with former PROs, transitioning operations over a 12-month period[166]. - The 2024 Joint Venture owned 56 self-storage properties with approximately 3.2 million rentable square feet as of December 31, 2024[172]. - The company has an active acquisition pipeline, indicating a strategy for future growth in the self-storage market[169]. Financial Performance - Total revenue decreased by $87.7 million, or 10.2%, for the year ended December 31, 2024, compared to 2023, primarily due to the sale of 32 self-storage properties and a decrease in average occupancy from 88.0% to 85.6%[180]. - Rental revenue decreased by $93.7 million, or 11.8%, for the year ended December 31, 2024, attributed to the sale of properties and a decrease in occupancy[181]. - Other property-related revenue decreased by $2.3 million, or 7.8%, for the year ended December 31, 2024, mainly due to reduced tenant insurance revenue from property dispositions[182]. - Management fees and other revenue increased by $8.3 million, or 24.2%, for the year ended December 31, 2024, driven by increased property management and acquisition fees[183]. - Net income attributable to National Storage Affiliates Trust was $111.5 million for the year ended December 31, 2024, down from $156.7 million in 2023[192]. - Net income for the year ended December 31, 2024, was $183,270, a decrease from $236,988 in 2023[204]. - FFO attributable to common shareholders, OP unitholders, and LTIP unitholders for 2024 was $304,123, down from $341,528 in 2023[204]. - Core FFO attributable to common shareholders, OP unitholders, and LTIP unitholders for 2024 was $308,719, compared to $343,423 in 2023[204]. - Total net operating income for the year ended December 31, 2024, was $515,757, down from $594,666 in 2023, reflecting a decrease of $78,909[213]. - FFO per share and unit for 2024 was $2.40, down from $2.67 in 2023[209]. - Core FFO per share and unit for 2024 was $2.44, compared to $2.69 in 2023[209]. Debt and Financing - As of December 31, 2024, the total borrowings under the unsecured credit facility amounted to $1.355 billion, with $950 million available under the revolving line of credit, $275 million in Term Loan D, and $130 million in Term Loan E[45]. - The company had $460 million in term loan facilities, $1.950 billion in senior unsecured notes, and $200.8 million in fixed-rate mortgages outstanding as of December 31, 2024[46]. - The company expects to employ leverage in its capital structure, considering factors such as interest rates and flexibility in managing properties[48]. - The company has approximately $3.4 billion in outstanding debt, with 6.5% subject to variable interest rates, increasing interest expense risk[101]. - Interest rate increases could adversely affect cash flow and the ability to service debt, impacting acquisition financing and property sales[101]. - Covenants related to indebtedness could impact economic performance and may require repayment from other sources if not satisfied[103]. Operational Strategy - The company aims to maximize property-level cash flow by leveraging economies of scale and optimizing market rents and occupancy[41]. - The company plans to continue pursuing strategic acquisitions and partnerships with institutional investors to drive external growth[23]. - The company has transitioned to a fully integrated property management platform, managing 815 consolidated properties and 259 unconsolidated properties as of December 31, 2024[24]. - The company competes with various entities in the self-storage market, including national, regional, and local operators, as well as other public self-storage REITs[60]. Risks and Challenges - The company faces risks from adverse economic conditions, including potential declines in occupancy levels and rental rates due to economic slowdowns or high inflation[68]. - The company’s property portfolio consists solely of self-storage properties, exposing it to risks inherent in a single industry[67]. - The company may experience increased operating expenses due to regulatory requirements, which could negatively impact net income and cash flows[72]. - The company’s short-term storage leases expose it to risks of re-leasing units at unfavorable terms, potentially impacting revenues[74]. - The company is increasingly dependent on information technology, and security breaches could disrupt operations and result in significant costs[75]. - Climate change and severe weather could materially affect the company’s properties and operations, leading to increased capital expenditures without corresponding revenue increases[83]. - The company faces risks related to illiquidity in real estate investments, limiting the ability to respond to adverse market conditions[86]. - Public health crises could significantly disrupt financial condition and operations, affecting tenant obligations and consumer spending[90]. Corporate Governance and Compliance - Approximately 52% of the company's employees were women, and 33% of the senior management team were women as of December 31, 2024[63]. - The company had a total of 1,466 employees as of December 31, 2024, including those in the property management platform[64]. - The company has not established a minimum dividend payment level, and future distributions will depend on various factors including operational performance and capital expenditures[124]. - The company emphasizes the importance of cybersecurity, integrating risk management into its overall strategy and engaging external experts for assessments[129]. - The audit committee of the board of trustees oversees cybersecurity risks, ensuring regular updates and compliance with industry standards[132]. - The company has implemented cybersecurity training for employees and conducts periodic phishing assessments to reinforce awareness[134]. - The board of trustees has the authority to revoke the REIT election without shareholder approval, which could lead to significant tax liabilities and reduced distributions[118]. Tax and Regulatory Considerations - The company has qualified as a REIT since the taxable year ended December 31, 2015, but there are risks associated with maintaining this status due to complex regulations and potential changes in legislation[105]. - If a Subsidiary REIT fails to qualify, it could lead to U.S. federal income tax liabilities and affect the company's overall REIT qualification[106]. - The company must distribute at least 90% of its net taxable income each year to maintain REIT status, and failure to do so could result in a 4% excise tax on undistributed amounts[111]. - The company may incur a 100% tax on income from prohibited transactions, which could significantly impact cash flow and distribution capabilities[112]. - At least 75% of the company's gross income must be derived from real property-related sources to comply with REIT requirements, which may limit investment opportunities[113]. - Legislative or regulatory changes related to REITs could adversely affect the company's business and shareholder returns[120]. - The company may face tax liabilities that reduce cash flow even if it qualifies as a REIT, including state and local taxes on undistributed income[109].

Core Insights - National Storage (NSA) reported a revenue of $190.12 million for the quarter ended December 2024, reflecting a year-over-year decline of 11.7% and an EPS of $0.60 compared to $0.72 a year ago [1] - The revenue fell short of the Zacks Consensus Estimate of $191.58 million by 0.76%, while the EPS exceeded the consensus estimate of $0.58 by 3.45% [1] Revenue Breakdown - Management fees and other revenue amounted to $12.38 million, surpassing the average estimate of $10.78 million by three analysts, marking a year-over-year increase of 34.3% [4] - Rental revenue was reported at $171.03 million, below the average estimate of $173.35 million, indicating a year-over-year decline of 13.9% [4] - Other property-related revenue reached $6.71 million, also below the average estimate of $7.15 million, representing a year-over-year decrease of 10.6% [4] Stock Performance - Shares of National Storage have returned +3.2% over the past month, contrasting with a -2.3% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Group 1 - National Storage (NSA) reported quarterly funds from operations (FFO) of $0.60 per share, exceeding the Zacks Consensus Estimate of $0.58 per share, but down from $0.68 per share a year ago, indicating a 11.76% year-over-year decline [1][2] - The company posted revenues of $190.12 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 0.76%, and down from $215.41 million year-over-year, reflecting a 11.67% decrease [2] - National Storage has surpassed consensus FFO estimates two times over the last four quarters, while it has topped consensus revenue estimates two times as well [2] Group 2 - The stock has gained approximately 2.5% since the beginning of the year, outperforming the S&P 500's gain of 1.3% [3] - The current consensus FFO estimate for the upcoming quarter is $0.58 on revenues of $193.52 million, and for the current fiscal year, it is $2.40 on revenues of $785.85 million [7] - The Zacks Industry Rank for REIT and Equity Trust - Other is currently in the bottom 46% of over 250 Zacks industries, indicating potential challenges for stock performance [8]

Financial Performance - Reported net income of $26.1 million for Q4 2024, a decrease of 75.8% compared to Q4 2023, with diluted earnings per share of $0.15 compared to $0.72 in Q4 2023[6] - Full year 2024 net income was $183.3 million, a decrease of 22.7% compared to 2023, with diluted earnings per share of $1.18 compared to $1.48 in 2023[6] - Net income attributable to common shareholders for Q4 2024 was $11.615 million, down from $63.915 million in Q4 2023[33] - Net income for the year ended December 31, 2024, was $183,270, down from $236,988 in 2023, representing a decrease of about 22.6%[37] - Net income for the three months ended December 31, 2024, was $26,131,000, a decrease from $108,056,000 in the same period of 2023[43] Core Funds from Operations - Core funds from operations (Core FFO) for Q4 2024 were $81.2 million, or $0.60 per share, a decrease of 11.8% per share compared to Q4 2023[6] - Core FFO for full year 2024 was $308.7 million, or $2.44 per share, a decrease of 9.3% per share compared to 2023[6] - Core FFO per share for the three months ended December 31, 2024, was $0.60, down from $0.68 in the same period of 2023, a decrease of about 11.8%[40] - Core FFO per share guidance for 2025 is projected between $2.30 and $2.38, compared to $2.44 for 2024[21] Revenue and Operating Income - Same store net operating income (NOI) decreased by 7.5% in Q4 2024 compared to Q4 2023, driven by a 4.3% decrease in total revenues and a 4.7% increase in property operating expenses[6] - Total revenue for the year ended December 31, 2024, was $770.335 million, a decrease from $858.063 million in 2023[33] - Total revenue for Q4 2024 was $170.687 million, a decrease of 4.3% compared to $178.314 million in Q4 2023[65] - Net operating income for Q4 2024 was $49.837 million, reflecting a margin of 70.8%, down from 73.3% in Q4 2023[65] - Net operating income for the year ended December 31, 2024, was $515,757, compared to $594,666 in 2023, a decline of approximately 13.3%[42] Property Operations - Same store NOI decreased by 5.5% for full year 2024 compared to 2023, driven by a 3.0% decrease in total revenues and a 3.7% increase in property operating expenses[6] - Property operating expenses growth is anticipated to be between 3.0% and 4.0% for 2025, consistent with a 3.7% increase in 2024[21] - The overall property operating expenses increased to $494,052,000, down 5.5% from $523,008,000 in the previous year[70] - Property operating expenses for YTD 2024 totaled $199.5 million, an increase from $192.3 million in YTD 2023[75] Acquisitions and Dispositions - Acquired four self-storage properties for approximately $39.6 million during Q4 2024[6] - The company acquired 81 self-storage properties during 2024, totaling 35,133 units and 4,927,948 rentable square feet, with acquisition costs amounting to $557,747,000[50] - The company disposed of 96 self-storage properties during 2024, generating net proceeds of $616,812,000 from 42,691 units and 5,799,991 rentable square feet[51] Debt and Equity - As of February 24, 2025, the company has no debt maturities in 2025 and approximately $512.5 million of available capacity on its $950.0 million revolving line of credit[17] - Total debt as of December 31, 2024, is $3,449,087,000[57] - The weighted average effective interest rate of maturing debt is 4.36%[57] - The total leverage ratio stands at 44.5%, below the covenant limit of 60.0%[57] Dividends - Declared a quarterly cash dividend of $0.57 per common share for Q4 2024, with total cash dividends of $2.25 per common share for full year 2024[19] Market Performance - The average occupancy for the total/weighted average decreased to 84.4% in Q4 2024 from 85.8% in Q4 2023, a change of (1.4)%[67] - The same store pool for 2023 showed an average occupancy of 84.5%, down from 86.0% in 2022, reflecting a (1.5)% change[68] - Average annualized rental revenue per occupied square foot decreased to $15.56 in Q4 2024, down 2.5% from $15.96 in Q4 2023[67] Management and Operations - NSA uses FFO and Core FFO as key performance indicators to evaluate its operational performance, excluding items not indicative of operations such as gains or losses from property sales and depreciation[86] - NOI is defined as rental revenue plus other property-related revenue less property operating expenses, and is a primary measure for evaluating economic productivity[90] - Effective July 1, 2024, NSA completed the internalization of its participating regional operators (PROs), transitioning operations over a 12-month period[93]

Core Insights - National Storage (NSA) is expected to report quarterly earnings of $0.58 per share, reflecting a decline of 14.7% year-over-year [1] - Analysts forecast revenues of $191.58 million, indicating a decrease of 11.1% compared to the previous year [1] Earnings Projections - The consensus EPS estimate has been revised upward by 0.7% over the past 30 days, indicating a collective reassessment by analysts [2] - Changes in earnings projections are crucial for predicting investor reactions, with empirical studies showing a strong correlation between earnings estimate trends and short-term stock price movements [3] Revenue Estimates - Analysts project 'Revenue- Management fees and other revenue' to reach $10.78 million, a change of +16.9% from the prior-year quarter [5] - 'Revenue- Rental revenue' is expected to be $173.35 million, reflecting a decrease of 12.8% from the previous year [5] - The consensus estimate for 'Revenue- Other property-related revenue' stands at $7.15 million, indicating a decline of 4.7% year-over-year [5] Depreciation and Amortization - The consensus for 'Depreciation and amortization' is estimated at $48.68 million, down from $53.99 million reported in the same quarter last year [6] Stock Performance - National Storage shares have increased by 0.3% over the past month, contrasting with a -1.8% change in the Zacks S&P 500 composite [6] - The company holds a Zacks Rank 3 (Hold), suggesting it is expected to closely follow overall market performance in the near term [6]

Group 1 - The article discusses the author's journey into investing, starting in high school in 2011, focusing on REITs, preferred stocks, and high-yield bonds, indicating a long-standing interest in markets and the economy [1] - The author has recently adopted a strategy that combines long stock positions with covered calls and cash secured puts, emphasizing a fundamental long-term investment approach [1] - The author primarily covers REITs and financials on Seeking Alpha, with occasional articles on ETFs and other stocks influenced by macro trade ideas [1]

MOVE IT BOAT & RV S NATIONAL STORAGE - AFFILIATES - 2024 THIRD QUARTER EARNINGS RELEASE & SUPPLEMENTAL FINANCIAL INFORMATION 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 Ve ...

National Storage Affiliates Trust. (NYSE:NSA) Q3 2024 Earnings Conference Call October 31, 2024 1:00 PM ET Company Participants George Hoglund - Vice President, Investor Relations David Cramer - President and CEO Brandon Togashi - Chief Financial Officer Conference Call Participants Juan Sanabria - BMO Capital Markets Todd Thomas - KeyBanc Capital Markets Jeffrey Spector - Bank of America Michael Goldsmith - UBS Omotayo Okusanya - Deutsche Bank Ronald Kamdem - Morgan Stanley Salil Mehta - Green Street Brend ...