Workflow
National Storage Affiliates(NSA)
icon
Search documents
National Storage (NSA) Q2 FFO and Revenues Miss Estimates
ZACKS· 2025-08-04 22:51
分组1 - National Storage (NSA) reported quarterly funds from operations (FFO) of $0.55 per share, missing the Zacks Consensus Estimate of $0.58 per share, and down from $0.62 per share a year ago, representing an FFO surprise of -5.17% [1] - The company posted revenues of $188.84 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 0.36%, and down from $190.45 million year-over-year [2] - National Storage shares have lost about 21.9% since the beginning of the year, while the S&P 500 has gained 6.1% [3] 分组2 - The current consensus FFO estimate for the coming quarter is $0.59 on revenues of $191.03 million, and for the current fiscal year, it is $2.31 on revenues of $762.96 million [7] - The Zacks Industry Rank for REIT and Equity Trust - Other is currently in the top 38% of over 250 Zacks industries, indicating that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8]
National Storage Affiliates(NSA) - 2025 Q2 - Quarterly Results
2025-08-04 20:07
[Earnings Release](index=3&type=section&id=Earnings%20Release) Overview of NSA's Q2 2025 performance, financial highlights, management commentary, and revised guidance [Second Quarter 2025 Highlights and Management Commentary](index=3&type=section&id=Second%20Quarter%202025%20Highlights%20and%20Management%20Commentary) Q2 2025 declines in net income, Core FFO, and same-store NOI, driven by soft demand and concessions Key Financial Metrics | Metric | Q2 2025 | Change vs Q2 2024 | | :--- | :--- | :--- | | Net Income | $31.0 million | -4.1% | | Core FFO per Share | $0.55 | -11.3% | | Same Store NOI | - | -6.1% | | Same Store Period-End Occupancy | 85.0% | -220 bps | - Management commentary indicates that positive sequential trends in contract rates and occupancy were outweighed by persistent softness in storage demand, driven by low existing home sales and supply pressure in Sunbelt markets[6](index=6&type=chunk) - The elevated use of concessions during the quarter, while driving rental volume, had a near-term negative impact on revenues, contributing to the downward revision of full-year guidance[6](index=6&type=chunk) - Subsequent to the quarter-end, an unconsolidated real estate venture acquired one self storage property for approximately **$21.8 million** in July 2025[6](index=6&type=chunk) [Financial Results](index=4&type=section&id=Financial%20Results) Q2 2025 net income decreased **4.1%** to **$31.0 million**, Core FFO per share fell **11.3%** due to lower NOI and higher interest expense Financial Performance Summary (in thousands, except per share) | Metric | Three Months Ended June 30, 2025 | Change vs 2024 | Six Months Ended June 30, 2025 | Change vs 2024 | | :--- | :--- | :--- | :--- | :--- | | Net income | $30,958 | (4.1)% | $50,477 | (60.4)% | | FFO per share and unit | $0.54 | (11.5)% | $1.06 | (11.7)% | | Core FFO per share and unit | $0.55 | (11.3)% | $1.09 | (10.7)% | - The substantial year-to-date decrease in net income was primarily attributed to larger gains on the sale of self storage properties recognized in the first quarter of 2024[10](index=10&type=chunk) - The decrease in FFO and Core FFO per share was driven by a decline in same-store NOI and an increase in interest expense[11](index=11&type=chunk) [Same Store Operating Results (771 Stores)](index=4&type=section&id=Same%20Store%20Operating%20Results%20(771%20Stores)) Same-store NOI for 771 stores declined **6.1%** in Q2 2025 due to **3.0%** revenue drop and **4.6%** expense increase Same Store Operating Results (in thousands) | Metric | Three Months Ended June 30, 2025 | Change vs 2024 | | :--- | :--- | :--- | | Total revenues | $168,975 | (3.0)% | | Property operating expenses | $52,720 | 4.6% | | Net Operating Income (NOI) | $116,255 | (6.1)% | | Average Occupancy | 84.2% | (2.4)% | - The decrease in Q2 same-store revenue was driven by a **240 basis point** drop in average occupancy and a **0.3%** decline in average annualized rental revenue per occupied square foot[13](index=13&type=chunk) - Markets with above-average same-store revenue growth included Portland, Houston, and San Juan, PR, while Riverside-San Bernardino, Atlanta, and Phoenix were below average[13](index=13&type=chunk) - The increase in same-store property operating expenses was primarily driven by higher costs for marketing, repairs and maintenance, and property taxes[14](index=14&type=chunk) [Investment and Disposition Activity](index=5&type=section&id=Investment%20and%20Disposition%20Activity) NSA invested **$11.4 million** in acquisitions, contributed **$4.5 million** to a JV, and agreed to sell ten properties for **$66.5 million** - Acquired one wholly-owned property and one annex for approximately **$11.4 million**[16](index=16&type=chunk) - A joint venture acquired one property for **$18.0 million**, with NSA contributing **$4.5 million**[15](index=15&type=chunk) - Agreed to sell ten wholly-owned properties for approximately **$66.5 million**, with eight closing in Q2 for **$60.0 million**, and proceeds used to pay down the revolving line of credit[17](index=17&type=chunk) [Balance Sheet and Dividends](index=5&type=section&id=Balance%20Sheet%20and%20Dividends) NSA maintained **$544.1 million** in credit capacity and declared a **$0.57** quarterly cash dividend - The company has approximately **$544.1 million** of available capacity on its revolving line of credit as of June 30, 2025[18](index=18&type=chunk) - A quarterly cash dividend of **$0.57** per common share was declared and paid during the second quarter of 2025[19](index=19&type=chunk) [2025 Guidance](index=6&type=section&id=2025%20Guidance) NSA revised 2025 guidance downwards, lowering Core FFO per share and same-store revenue growth Revised 2025 Guidance | Guidance Metric | Current 2025 Range | Prior 2025 Range | | :--- | :--- | :--- | | Core FFO per share | $2.17 - $2.23 | $2.30 - $2.38 | | Same store total revenue growth | (3.0)% - (2.0)% | (1.25)% - 1.25% | | Same store NOI growth | (5.75)% - (4.25)% | (2.8)% - 0.0% | | Acquisitions (in millions) | $50.0 - $100.0 | $100.0 - $300.0 | - The primary driver for the revised guidance is lower same-store growth assumptions[20](index=20&type=chunk) [Consolidated Financial Statements](index=9&type=section&id=Consolidated%20Financial%20Statements) Presents consolidated statements of operations and balance sheets, detailing revenue, expenses, assets, and liabilities [Consolidated Statements of Operations](index=9&type=section&id=Consolidated%20Statements%20of%20Operations) Q2 2025 total revenues **$188.8 million**, net income **$31.0 million**, YTD net income significantly lower at **$50.5 million** Consolidated Statements of Operations (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Total revenue | $188,842 | $190,448 | | Total operating expenses | $120,543 | $118,475 | | Interest expense | ($41,269) | ($37,228) | | Gain on sale of self storage properties | $9,571 | $2,668 | | Net income | $30,958 | $32,280 | [Consolidated Balance Sheets](index=10&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets decreased to **$5.18 billion**, liabilities to **$3.54 billion**, and equity to **$1.64 billion** Consolidated Balance Sheets (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Self storage properties, net | $4,695,617 | $4,812,496 | | Total assets | $5,181,285 | $5,354,462 | | Debt financing | $3,402,659 | $3,449,087 | | Total liabilities | $3,543,603 | $3,591,115 | | Total equity | $1,637,682 | $1,763,347 | [Supplemental Schedules](index=11&type=section&id=Supplemental%20Schedules) Provides detailed reconciliations and additional financial/operational data, including non-GAAP measures and portfolio summaries [Schedule 1 - Funds From Operations and Core Funds From Operations](index=11&type=section&id=Schedule%201%20-%20Funds%20From%20Operations%20and%20Core%20Funds%20From%20Operations) Reconciles Q2 2025 GAAP Net Income of **$31.0 million** to FFO of **$72.3 million** and Core FFO of **$74.4 million** Funds From Operations and Core Funds From Operations (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net income | $30,958 | $32,280 | | FFO attributable to common shareholders | $72,341 | $70,118 | | Core FFO attributable to common shareholders | $74,381 | $71,224 | | FFO per share and unit | $0.54 | $0.61 | | Core FFO per share and unit | $0.55 | $0.62 | [Schedule 2 - Other Non-GAAP Financial Measurements](index=13&type=section&id=Schedule%202%20-%20Other%20Non-GAAP%20Financial%20Measurements) Reconciles Q2 2025 NOI to **$121.0 million**, EBITDA to **$125.2 million**, and Adjusted EBITDA to **$123.8 million** Other Non-GAAP Financial Measurements (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net income | $30,958 | $32,280 | | Net Operating Income | $120,985 | $128,725 | | EBITDA | $125,176 | $121,900 | | Adjusted EBITDA | $123,825 | $127,751 | [Schedule 3 - Portfolio Summary](index=14&type=section&id=Schedule%203%20-%20Portfolio%20Summary) NSA operated 1,067 properties (**69.7 million** sq ft) with YTD investments of **$42.9 million** and dispositions of **$67.1 million** - The total operated portfolio consists of **1,067 properties** with approximately **550,000 units** and **69.7 million rentable square feet**, with an overall occupancy of **84.8%**[45](index=45&type=chunk) Top 5 States by Number of Stores | Top 5 States (Total Operated) | Number of Stores | | :--- | :--- | | Texas | 203 | | Florida | 105 | | California | 98 | | Georgia | 72 | | Oregon | 70 | 2025 Year-to-Date Activity | 2025 YTD Activity | Stores | Total Investment / Net Proceeds | | :--- | :--- | :--- | | Total Investments | 5 | $42.9 million | | Total Dispositions | 10 | $67.1 million | [Schedule 4 - Debt and Equity Capitalization](index=16&type=section&id=Schedule%204%20-%20Debt%20and%20Equity%20Capitalization) NSA's total debt was **$3.4 billion** with a **4.52%** weighted average interest rate and **135.3 million** common shares/units Debt Metrics | Debt Metric | Value | | :--- | :--- | | Total Debt | ~$3.4 billion | | Weighted Average Effective Interest Rate | 4.52% | | Net Debt to Annualized Current Quarter Adjusted EBITDA | 6.8x | | Total Leverage Ratio | 45.8% | - Total common shares and units outstanding were **135,290,513** as of June 30, 2025[58](index=58&type=chunk) [Schedule 5 - Summarized Information for Unconsolidated Real Estate Ventures](index=18&type=section&id=Schedule%205%20-%20Summarized%20Information%20for%20Unconsolidated%20Real%20Estate%20Ventures) NSA's unconsolidated ventures own 260 properties with **$2.72 billion** assets, **$1.21 billion** debt, and **$61.7 million** Q2 2025 revenue Unconsolidated Ventures Summary (at 100%) | Unconsolidated Ventures (at 100%) | As of June 30, 2025 | | :--- | :--- | | Number of Stores | 260 | | Gross Book Value of Real Estate Assets | $2.72 billion | | Outstanding Debt | $1.21 billion | | NSA's Investment Carrying Value | $231.4 million | Combined Operating Information (at 100%) | Combined Operating Info (at 100%) | Three Months Ended June 30, 2025 | | :--- | :--- | | Total revenue | $61.7 million | | Net operating income | $40.3 million | | FFO and Core FFO | $23.2 million | [Schedule 6 - Same Store Performance Summary By MSA](index=19&type=section&id=Schedule%206%20-%20Same%20Store%20Performance%20Summary%20By%20MSA) Q2 2025 same-store NOI varied by MSA, with Houston up **4.1%** and North Port-Sarasota down **21.6%** Q2 2025 Same Store NOI Change by MSA | MSA | Q2 2025 Same Store NOI Change | | :--- | :--- | | **Top Performers** | | | Houston-Pasadena-The Woodlands, TX | 4.1% | | San Juan-Bayamón-Caguas, PR | 2.2% | | **Bottom Performers** | | | North Port-Bradenton-Sarasota, FL | (21.6)% | | Atlanta-Sandy Springs-Roswell, GA | (16.4)% | | Shreveport-Bossier City, LA | (13.2)% | [Schedule 7 - Same Store Operating Data - Trailing Five Quarters](index=23&type=section&id=Schedule%207%20-%20Same%20Store%20Operating%20Data%20-%20Trailing%20Five%20Quarters) Same-store NOI for 771 stores declined from **$123.8 million** in Q2 2024 to **$116.3 million** in Q2 2025, with occupancy decreasing Same Store Operating Data - Trailing Five Quarters | Metric | 2Q 2024 | 3Q 2024 | 4Q 2024 | 1Q 2025 | 2Q 2025 | | :--- | :--- | :--- | :--- | :--- | :--- | | Net operating income ($M) | $123.8 | $124.5 | $120.9 | $116.4 | $116.3 | | Occupancy at period end | 87.2% | 85.9% | 84.7% | 83.6% | 85.0% | [Schedule 8 - Reconciliation of Same Store Data and Net Operating Income to Net Income](index=24&type=section&id=Schedule%208%20-%20Reconciliation%20of%20Same%20Store%20Data%20and%20Net%20Operating%20Income%20to%20Net%20Income) Reconciles Q2 2025 total rental revenue of **$169.8 million** and NOI of **$121.0 million** to consolidated Net Income of **$31.0 million** Q2 2025 Revenue Breakdown (in thousands) | Q2 2025 Revenue Breakdown ($ in thousands) | Amount | | :--- | :--- | | Same store portfolio rental revenue | $162,570 | | Non-same store portfolio rental revenue | $7,268 | | **Total rental revenue** | **$169,838** | - The schedule reconciles from a total Net Operating Income of **$121.0 million** down to a Net Income of **$31.0 million** for Q2 2025 by accounting for items such as G&A, depreciation, and interest expense[72](index=72&type=chunk) [Schedule 9 - Selected Financial Information](index=25&type=section&id=Schedule%209%20-%20Selected%20Financial%20Information) Q2 2025 total capital expenditures increased to **$6.2 million**, G&A expenses decreased to **$12.8 million** due to lower supervisory costs Capital Expenditures (in thousands) | Capital Expenditures ($ in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Recurring capital expenditures | $3,429 | $3,025 | | Value enhancing capital expenditures | $1,927 | $346 | | **Total consolidated portfolio capital expenditures** | **$6,199** | **$4,016** | - General and administrative expenses for Q2 2025 were **$12.8 million**, a decrease from **$16.2 million** in Q2 2024, mainly due to lower supervisory and administrative costs[73](index=73&type=chunk) [Glossary](index=26&type=section&id=Glossary) Defines key non-GAAP financial measures and operational terms like FFO, Core FFO, NOI, and Same Store Portfolio - Defines Funds From Operations (FFO) as net income excluding real estate depreciation, gains/losses from property sales, and other specific items, providing a measure of a REIT's operating performance[81](index=81&type=chunk) - Defines Core FFO as FFO further adjusted to remove items not considered indicative of core operating performance, such as acquisition costs, integration costs, and casualty-related expenses[81](index=81&type=chunk) - Defines Net Operating Income (NOI) as rental revenue plus other property-related revenue less property operating expenses, serving as a primary measure to evaluate property economic productivity[85](index=85&type=chunk)[94](index=94&type=chunk) - The Same Store Portfolio is defined as properties owned and operated on a stabilized basis since the first day of the earliest year presented, allowing for comparable year-over-year analysis[92](index=92&type=chunk)
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
Group 1 - The article discusses the features of the investing group Trade With Beta, which includes frequent picks for mispriced preferred stocks and baby bonds, weekly reviews of over 1200 equities, IPO previews, hedging strategies, and an actively managed portfolio [1] - The service offers a chat room for discussion among sophisticated traders and investors, allowing for real-time engagement and idea sharing [1] - The analyst has disclosed a beneficial long position in the shares of NSA.PR.B, indicating a personal investment interest in the discussed securities [1]
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].
National Storage Affiliates(NSA) - 2025 Q1 - Earnings Call Transcript
2025-05-06 18:02
Financial Data and Key Metrics Changes - Core FFO per share for Q1 2025 was reported at $0.54, a 10% decline from the prior year due to decreased same store NOI and increased interest expense [14] - 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 [14] - Expense growth was 3.7% in Q1, primarily due to marketing, repairs and maintenance, and utilities, partially offset by a decrease in personnel costs [14][15] Business Line Data and Key Metrics Changes - The existing customer base remains healthy, with a successful ECRI program and a length of stay above historical averages [9] - Contract rates increased approximately 5% in April compared to Q1 levels, while occupancy increased by 20 basis points to 83.8% [10] - Same store NOI growth was negative 5.7%, but showed sequential improvement from the previous quarter [15] Market Data and Key Metrics Changes - Portland and Houston markets showed positive revenue growth, with Portland being a top performer due to effective marketing and pricing strategies [11][12] - The company closed on three assets totaling approximately $40 million and sold two properties for $10 million during the quarter [12] Company Strategy and Development Direction - The company is focused on operational improvements and realizing benefits from consolidated operating platforms and upgraded marketing tools [9] - There is a disciplined approach to acquisitions amidst broader economic uncertainty, with expectations for more transactions in the coming months [12] - The self-storage sector has shown resilience to various operating environments, with significant investor interest demonstrated by recent IPOs in the sector [13] Management's Comments on Operating Environment and Future Outlook - Management believes they have found a trough in fundamentals and are encouraged by the trajectory of contract rents and improving supply outlook [12] - The company expects to see positive revenue growth in the back half of the year, driven by improved pricing power and occupancy [30][31] - Management noted that while the housing market remains challenging, they do not expect it to worsen and see potential for recovery [108] 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 [16] - Marketing expenses are expected to remain elevated due to competitive pressures, with a year-over-year increase of 20% in Q1 [15][78] Q&A Session Summary Question: Can you provide perspective on the increase in contract rates and occupancy? - Management noted sequential improvement in contract rates and occupancy, with positive trends observed from January through April [20][21] Question: What is the status of revenue growth expectations for the second half of the year? - Management indicated that while Q2 is expected to be negative for revenue and NOI year-over-year, 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 concessions are within expected ranges and have not exceeded historical levels, with a slight increase in promotional usage [58] Question: What are the current demand drivers for self-storage? - Demand is driven by various factors including transitions, small businesses, and residential needs, although the lack of home sales is impacting occupancy [101][102] Question: How does the company view the transaction market for acquisitions and dispositions? - Management is being patient in the acquisition market while actively working on dispositions, with a focus on improving operational efficiencies [46][97]
National Storage Affiliates(NSA) - 2025 Q1 - Earnings Call Transcript
2025-05-06 18:02
Financial Data and Key Metrics Changes - Core FFO per share for Q1 2025 was reported at $0.54, a 10% decline from the prior year due to decreased same store NOI and increased interest expense [11] - Same store revenues declined by 3%, driven by a 190 basis point decrease in average occupancy and a 1% decrease in average revenue per square foot [11][12] - Expense growth was 3.7%, primarily due to increases in marketing, repairs and maintenance, and utilities, partially offset by a decrease in personnel costs [11][12] Business Line Data and Key Metrics Changes - The existing customer base remains healthy, with a successful ECRI program and a length of stay above historical averages [6] - Contract rates increased approximately 5% in April compared to Q1 levels, while occupancy increased by 20 basis points to 83.8% [7][11] - Same store NOI growth was negative 5.7%, but showed sequential improvement from the previous quarter [12] Market Data and Key Metrics Changes - Portland and Houston markets showed positive revenue growth, with Portland being a top performer due to successful pricing and ECRI program implementation [8][10] - The company closed on three assets totaling approximately $40 million and sold two properties for $10 million during the quarter [9] Company Strategy and Development Direction - The company is focused on operational improvements and realizing benefits from consolidated operating platforms and upgraded marketing tools [6][10] - There is a disciplined approach to acquisitions amidst economic uncertainty, with expectations for more transactions in the coming months [9] - The self-storage sector is viewed as resilient, with significant investor interest demonstrated by recent IPOs in the sector [10] Management's Comments on Operating Environment and Future Outlook - Management believes they have found a trough in fundamentals and are encouraged by the trajectory of contract rents and improving supply outlook [9][10] - The company expects a moderately better spring leasing season than last year, with improving pricing power and occupancy through summer months [16] - Management remains cautious about the impact of economic conditions and tariffs but has not seen direct effects on business so far [9][10] 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 [13] - New disclosures in the supplemental package include contract rent per square foot for in-place customers and move-ins/move-outs to assist with modeling [15] Q&A Session Summary Question: Can you provide perspective on the increase in contract rates and occupancy? - Management noted sequential improvement in contract rates and occupancy, with positive trends in move-in rates and overall revenue maximization efforts [18][19] 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 year-over-year, they anticipate positive growth in the back half of the year [26][27] Question: How are promotions and discounts trending for new tenants? - Management confirmed that concessions remain within expected ranges, with a slight increase in promotional discount usage to attract new tenants [56] Question: What is the current state of the transaction market? - Management reported steady deal flow and a disciplined approach to acquisitions, with expectations for material movement on dispositions [41][44] Question: How is the company addressing occupancy challenges? - Management stated that vacate activity remains muted compared to last year, and they are focused on balancing revenue and occupancy strategies [70][71] Question: What are the current demand drivers for self-storage? - Management highlighted various demand drivers, including transitions, small business needs, and residential storage requirements, while noting challenges due to low home sales [96][98]
National Storage Affiliates(NSA) - 2025 Q1 - Earnings Call Transcript
2025-05-06 17:00
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]
Compared to Estimates, National Storage (NSA) Q1 Earnings: A Look at Key Metrics
ZACKS· 2025-05-05 23:30
Core Insights - National Storage (NSA) reported revenue of $188.35 million for Q1 2025, a year-over-year decline of 4% and an EPS of $0.54, down from $0.65 a year ago [1] - The revenue exceeded the Zacks Consensus Estimate of $187.56 million by 0.42%, while the EPS fell short of the consensus estimate of $0.56 by 3.57% [1] Revenue Breakdown - Management fees and other revenue amounted to $12.14 million, surpassing the three-analyst average estimate of $12.08 million, reflecting a year-over-year increase of 33.7% [4] - Rental revenue was reported at $169.48 million, exceeding the three-analyst average estimate of $168.52 million, but showing a year-over-year decline of 6.1% [4] - Other property-related revenue reached $6.74 million, slightly above the two-analyst average estimate of $6.70 million, with a year-over-year change of 0.8% [4] Stock Performance - National Storage shares have returned +7.3% over the past month, outperforming the Zacks S&P 500 composite's +0.4% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]