MicroStockHub/iStock via Getty Images Introduction National Storage Affiliates (NYSE:NSA) has performed in line with the Vanguard Real Estate Index Fund ETF (VNQ) so far in 2024, posting a mid-single-digit total return: ● 55 NSA vs VNQ in 2024 (Seeking Alpha) I also covered the shares back in June 2024, arguing deteriorating operating performance was not adequately reflected in the company's valuation. The recently released Q2 2024 results have strengthened my conviction there is no alpha to be found in Nat ...

Financial Data and Key Metrics Changes - The company reported core FFO per share of $0.62 for Q2 2024, a decrease of approximately 9% year-over-year, primarily due to a decline in same-store NOI [10] - Revenue growth declined by 2.8% on a same-store basis, driven by a 320 basis point year-over-year decline in average occupancy, despite a 60 basis point increase in rent revenue per square foot [10][11] - Expense growth was 4.8% in Q2, with increases in repairs and maintenance, marketing, and insurance, partially offset by a decline in property taxes [11] Business Line Data and Key Metrics Changes - Same-store occupancy ended June at 87% and July at 86.6%, with street rates declining by 1.7% in July and down 14% from the previous year [5][10] - The company is seeing more acquisition opportunities, having closed on a $72 million property portfolio in the Rio Grande Valley, with an average occupancy in the mid-70s [6][7] Market Data and Key Metrics Changes - The Sunbelt markets are experiencing more challenges, with occupancy only up 50 basis points and street rates down 9%, compared to non-Sunbelt markets which saw a sequential occupancy gain of 180 basis points and street rates up about 2% [14][15] - The company noted that the competitive operating environment is affecting customer demand for storage, particularly due to a muted housing market and absorption of new supply [5][6] Company Strategy and Development Direction - The company is focusing on internalizing its PRO structure, with 70% of PRO-managed stores now on the NSA platform, aiming for 94% by year-end [8] - The company expects accretion from the PRO internalization in three areas: G&A savings, elimination of cash flow splits, and operational efficiencies [8][9] - The company is optimistic about long-term growth despite near-term headwinds, emphasizing the importance of optimizing its portfolio and generating access to growth capital via joint ventures [9] Management's Comments on Operating Environment and Future Outlook - Management anticipates continued pressure from a competitive environment throughout the second half of the year, adjusting full-year expectations accordingly [5][6] - The company believes that the current operating environment will remain challenging, particularly in Sunbelt markets, but expects these markets to outperform in the long term [15][43] - Management is hopeful for a stronger leasing season in 2025, contingent on potential changes in the housing market and interest rates [58] Other Important Information - The company repurchased 1.9 million shares for $72 million during the quarter and converted subordinated performance units into OP units, simplifying its capital structure [12] - The company is actively seeking to push out debt maturities and create more capacity on its line of credit as interest rates become more favorable [11] Q&A Session Summary Question: Can you discuss the PRO internalization and the occupancy gap? - Management plans to close the occupancy gap by bringing stores onto their platforms and utilizing marketing strategies and AI tools [16][17] Question: What are the cap rates for the recent acquisitions? - Recent acquisitions had cap rates in the mid-6s for stabilized assets and low 4s for properties with lease-up components [18][19] Question: What are the ECRI assumptions in guidance? - ECRI assumptions remain assertive, with no changes based on customer behavior, and the company plans to continue pushing rate increases [21][22] Question: Are you seeing more inbound calls for transactions? - There is increased deal flow, with sellers' expectations becoming more realistic compared to six months ago [25][26] Question: What is the outlook for same-store expenses? - The company has increased the low end of expense guidance due to higher marketing spend and uncertainty in property taxes [44][46] Question: How is customer demand being influenced? - The company has not seen significant impacts from economic slowing, but new supply and housing market conditions are affecting customer transitions [41][42] Question: What is the outlook for street rates? - Street rates are expected to remain competitive, with management anticipating a gradual improvement in year-over-year comparisons [63][66]

Company Overview - National Storage Affiliates (NSA) is a storage REIT with interests in 1,050 properties across 42 states and Puerto Rico, primarily focused in the Sun Belt region, which accounts for 65% of its locations [3][15] - The largest exposure is in Texas, making up 18.5% of NSA properties [3] Operational Performance - As of June 2024, occupancy was reported at 86.7%, a slight increase from 85.9% at the end of Q1 2024, but down 3% year-over-year, indicating oversupply in the storage market [5][23] - Core FFO was $0.60 per share in Q1 2024, down 9.1% year-over-year, with revenues declining against rising costs, leading to a 3.7% decrease in net operating income (NOI) year-over-year [16] - The full-year NOI growth outlook for 2024 is bleak, with a projected 4% year-over-year decline, and Core FFO expected at about $2.48 per share, down 7.8% year-over-year [17] Financial Metrics - Total revenue growth is projected to decline by 4.0% in 2024, with property operating expenses expected to rise by 3.0% to 5.0% [9] - The company ended Q1 2024 with net debt of $3.2 billion, with 40% of enterprise value funded by debt and 5% by preferred shares [18] - The weighted average cost of debt is 4.1%, with 96% of the debt being fixed rate [10] Market Dynamics - The market-implied cap rate is approximately 7.2%, which is not attractive given the declining occupancy and NOI dynamics [19] - The company is internalizing its participating regional operating structure, which may save $0.03-$0.04 per share in general and administrative expenses, translating to $7.5-$9 million in cumulative savings [20] Strategic Initiatives - After disposals in Q4 2023 and Q1 2024, the company generated $540 million in liquidity, reducing its indebtedness [21] - The company continues to buy back shares, which may increase leverage in the future [21] Investment Considerations - Given the operational underperformance in 2024, the company is expected to face challenges in returning to growth, with the oversupply in the self-storage market likely to persist [23] - Preferred shares (NSA.PR.A) offer a 6.3% yield, well-covered by Core FFO and market capitalization, presenting an alternative investment option [22]

[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Financial Statements](index=4&type=section&id=ITEM%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Q1 2024, highlighting a decrease in total assets to $5.37 billion and a significant increase in net income to $95.1 million, driven by property dispositions [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to $5.37 billion as of March 31, 2024, from $5.93 billion, primarily due to property dispositions, resulting in reduced liabilities and equity Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Total Assets** | **$5,366,865** | **$5,931,811** | | Self storage properties, net | $4,877,930 | $4,917,815 | | Assets held for sale, net | $— | $550,199 | | **Total Liabilities** | **$3,419,793** | **$3,805,970** | | Debt financing | $3,285,547 | $3,658,205 | | **Total Equity** | **$1,947,072** | **$2,125,841** | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Total revenue decreased by 5.7% to $196.1 million for Q1 2024, primarily due to property sales, while net income surged to $95.1 million, driven by a $61.2 million gain on property dispositions Q1 2024 vs. Q1 2023 Statement of Operations (in thousands, except per share amounts) | Metric | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | Total Revenue | $196,148 | $207,993 | | Total Operating Expenses | $121,191 | $127,935 | | Gain on sale of self storage properties | $61,173 | $— | | **Net Income** | **$95,088** | **$40,392** | | Net Income Attributable to Common Shareholders | $53,917 | $24,997 | | **Earnings per share - diluted** | **$0.65** | **$0.24** | | Dividends declared per common share | $0.56 | $0.55 | [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities decreased to $94.0 million in Q1 2024, while investing activities generated $567.4 million from property sales, and financing activities used $660.0 million for debt repayments and share repurchases Cash Flow Summary for the Three Months Ended March 31 (in thousands) | Activity | 2024 | 2023 | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | $94,001 | $109,753 | | Net Cash Provided by (Used In) Investing Activities | $567,399 | $(36,172) | | Net Cash Used In Financing Activities | $(660,013) | $(63,944) | [Notes to Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail accounting policies and financial activities, including property ownership, the formation of a new joint venture, disposition of 95 properties, significant share repurchases, and the use of interest rate swaps to manage debt risk - As of March 31, 2024, the company owned **809** consolidated self storage properties and managed an additional **241** properties through unconsolidated real estate ventures in which it holds a **25%** equity interest[32](index=32&type=chunk)[33](index=33&type=chunk) - In Q1 2024, the company formed a new joint venture (the "2024 Joint Venture") and contributed **56** self storage properties to it[73](index=73&type=chunk)[76](index=76&type=chunk) - During Q1 2024, the company sold **39** properties for net proceeds of **$265.1 million** and contributed **56** properties to the 2024 Joint Venture for net proceeds of **$343.7 million**, recording a total net gain of **$61.2 million**[85](index=85&type=chunk) - The company repurchased **5,491,925** common shares for approximately **$203.5 million** during Q1 2024[60](index=60&type=chunk) - As of March 31, 2024, the company had **$1.23 billion** in notional amount of interest rate swaps designated as cash flow hedges to manage interest rate risk on its variable-rate debt[104](index=104&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=ITEM%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section analyzes Q1 2024 financial performance, attributing a 5.7% revenue decrease to property dispositions and lower occupancy, while net income rose due to property sales, and non-GAAP metrics like Core FFO per share declined [Results of Operations](index=31&type=section&id=Results%20of%20Operations) Total revenue decreased by $11.8 million (5.7%) in Q1 2024 due to property sales and lower occupancy, while net income increased significantly to $95.1 million, driven by a $61.2 million gain on property dispositions Q1 2024 vs. Q1 2023 Operating Results (in thousands) | Metric | Q1 2024 | Q1 2023 | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $196,148 | $207,993 | $(11,845) | | Property Operating Expenses | $54,694 | $56,483 | $(1,789) | | Gain on sale of self storage properties | $61,173 | $— | $61,173 | | Net Income | $95,088 | $40,392 | $54,696 | - The decrease in total revenue was primarily driven by the disposition of **39** properties sold to a third party and **56** properties contributed to the 2024 Joint Venture, as well as a decrease in total portfolio average occupancy from **88.6%** to **85.2%** YoY[131](index=131&type=chunk) [Non-GAAP Financial Measures](index=34&type=section&id=Non-GAAP%20Financial%20Measures) Non-GAAP metrics for Q1 2024 show Core FFO per share decreased to $0.60, same-store NOI declined by 3.7% to $124.2 million due to lower rental revenue and higher expenses, and Adjusted EBITDA also decreased to $129.9 million Non-GAAP Performance Metrics (Q1 2024 vs. Q1 2023) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Core FFO per share & unit | $0.60 | $0.66 | | Same Store NOI (in thousands) | $124,216 | $128,998 | | Adjusted EBITDA (in thousands) | $129,927 | $142,716 | - Same-store NOI decreased by **3.7%** YoY. This was caused by a **1.7%** decrease in same-store rental revenue (due to lower occupancy) and a **4.5%** increase in same-store property operating expenses (due to higher insurance and marketing costs)[153](index=153&type=chunk)[154](index=154&type=chunk)[156](index=156&type=chunk) [Liquidity and Capital Resources](index=40&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2024, the company had **$64.2 million** in cash, using proceeds from property sales to repay **$613.4 million** in debt and repurchase **$203.5 million** in shares, while maintaining a **$1.825 billion** credit facility - Primary uses of cash in Q1 2024 were principal payments on debt of **$613.4 million** and common share repurchases of **$203.5 million**[173](index=173&type=chunk) - Primary sources of cash in Q1 2024 were **$94.0 million** from operations and **$608.8 million** from the sale and contribution of properties[169](index=169&type=chunk)[170](index=170&type=chunk) - As of March 31, 2024, the company had **$805.6 million** of available borrowing capacity under its revolving line of credit[91](index=91&type=chunk)[175](index=175&type=chunk) - On February 15, 2024, the board declared a quarterly dividend of **$0.56** per common share[190](index=190&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=46&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate fluctuations, with **$138.0 million** of unhedged variable-rate debt, where a 100 basis point change would impact annual earnings and cash flows by approximately **$1.4 million** - The company's main market risk exposure is to interest rate fluctuations[206](index=206&type=chunk) - As of March 31, 2024, the company had **$138.0 million** of unhedged variable-rate debt[207](index=207&type=chunk) - A hypothetical **100 basis point (1%)** change in interest rates would affect annual earnings and cash flows by approximately **$1.4 million**[207](index=207&type=chunk) [Controls and Procedures](index=47&type=section&id=ITEM%204.%20Controls%20and%20Procedures) The company's disclosure controls and procedures were deemed effective as of March 31, 2024, with no material changes to internal control over financial reporting reported during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of the end of the reporting period[209](index=209&type=chunk) - No material changes to internal control over financial reporting occurred during the first quarter of 2024[210](index=210&type=chunk) [PART II. OTHER INFORMATION](index=47&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=47&type=section&id=ITEM%201.%20Legal%20Proceedings) The company is not currently involved in any legal proceedings considered material - As of the filing date, the company is not subject to any material legal proceedings[213](index=213&type=chunk) [Risk Factors](index=47&type=section&id=ITEM%201A.%20Risk%20Factors) This section refers investors to the company's 2023 Annual Report on Form 10-K for a comprehensive discussion of potential risks and uncertainties - For a detailed discussion of risk factors, the company refers to its 2023 Annual Report on Form 10-K[214](index=214&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=47&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) In Q1 2024, the company issued **72,802** common shares to satisfy redemption requests under a registration exemption and repurchased **5,491,925** common shares for approximately **$203.5 million** - During Q1 2024, the company issued **72,802** common shares to satisfy redemption requests from certain limited partners under a registration exemption[215](index=215&type=chunk) Issuer Purchases of Equity Securities (Q1 2024) | Period | Total Shares Purchased | Average Price Paid Per Share | | :--- | :--- | :--- | | Jan 1 - Jan 31, 2024 | 856,036 | $38.35 | | Feb 1 - Feb 29, 2024 | 1,817,617 | $36.63 | | Mar 1 - Mar 31, 2024 | 2,818,272 | $36.91 | | **Total** | **5,491,925** | **$37.04** | [Defaults Upon Senior Securities](index=48&type=section&id=ITEM%203.%20Defaults%20Upon%20Senior%20Securities) Not applicable, as the company reports no defaults upon senior securities - Not applicable[220](index=220&type=chunk) [Mine Safety Disclosures](index=48&type=section&id=ITEM%204.%20Mine%20Safety%20Disclosures) Not applicable, as the company has no mine safety disclosures to report - Not applicable[221](index=221&type=chunk) [Other Information](index=48&type=section&id=ITEM%205.%20Other%20Information) Not applicable, as the company reports no other information - Not applicable[222](index=222&type=chunk) [Exhibits](index=48&type=section&id=ITEM%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including articles of incorporation, bylaws, officer certifications, and XBRL data files - The report includes standard exhibits such as CEO/CFO certifications under Sarbanes-Oxley Sections 302 and 906, and interactive data files (XBRL)[223](index=223&type=chunk)[225](index=225&type=chunk)

For the quarter ended March 2024, National Storage (NSA) reported revenue of $196.15 million, down 5.7% over the same period last year. EPS came in at $0.60, compared to $0.24 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $194.83 million, representing a surprise of +0.68%. The company delivered an EPS surprise of -1.64%, with the consensus EPS estimate being $0.61.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall ...

National Storage (NSA) came out with quarterly funds from operations (FFO) of $0.60 per share, missing the Zacks Consensus Estimate of $0.61 per share. This compares to FFO of $0.66 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an FFO surprise of -1.64%. A quarter ago, it was expected that this real estate investment trust would post FFO of $0.66 per share when it actually produced FFO of $0.68, delivering a surprise of 3.03%.Over the last four qua ...

Table of Contents Page 1 Earnings Release 7 Consolidated Statements of Operations 8 Consolidated Balance Sheets 9 Schedule 1 - Funds From Operations and Core Funds From Operations 11 Schedule 2 - Other Non-GAAP Financial Measurements 12 Schedule 3 - Portfolio Summary 14 Schedule 4 - Debt and Equity Capitalization 16 Schedule 5 - Summarized Information for Unconsolidated Real Estate Ventures 17 Schedule 6 - Same Store Performance Summary By MSA 19 Schedule 7 - Same Store Operating Data - Trailing Five Quarte ...

Portfolio and Acquisitions - As of December 31, 2023, the company operated a portfolio of 1,050 self-storage properties across 42 states and Puerto Rico, totaling approximately 68.6 million rentable square feet and 542,000 storage units[19]. - The company completed 20 acquisitions in 2023, adding 10,479 units and 1,298,864 rentable square feet, with a total fair value of $229.45 million[36]. - The company aims to recruit 1 to 3 additional PROs to expand its geographic footprint and market share[22]. - The company’s acquisition strategy focuses on off-market opportunities, leveraging local market knowledge from its PROs[32]. - The company’s portfolio includes 39 properties classified as held for sale, totaling approximately 2.4 million rentable square feet, expected to be sold in 2024[34]. - In 2024, the company contributed 56 self-storage properties to a joint venture, consisting of approximately 3.2 million rentable square feet and valued at approximately $346.5 million[39]. - In 2022, the company acquired 45 self-storage properties for a total fair value of $569.2 million, with a total of 3.2 million rentable square feet across these properties[40]. - The company has a captive pipeline of over 110 self-storage properties valued at approximately $1.7 billion, which are expected to drive future growth[52]. Financial Performance - Total revenue increased by $56.5 million, or 7.0%, for the year ended December 31, 2023, compared to 2022, reaching $858.1 million[216]. - Rental revenue rose by $45.2 million, or 6.0%, for the year ended December 31, 2023, totaling $794.0 million, driven by acquisitions and increased lease rates[217]. - Net income attributable to common shareholders increased by $47.3 million, or 52.4%, to $137.7 million for the year ended December 31, 2023[215]. - Total operating expenses increased by $9.3 million, or 1.8%, to $521.4 million for the year ended December 31, 2023[215]. - Other property-related revenue increased by $4.6 million, or 18.1%, for the year ended December 31, 2023, compared to 2022, primarily due to an increase in tenant insurance revenue of $4.4 million[218]. - Management fees and other revenue rose by $6.8 million, or 24.6%, for the year ended December 31, 2023, compared to 2022, mainly driven by changes in tenant insurance programs[219]. Debt and Financing - The company’s unsecured credit facility allows for total borrowings of $1.955 billion, with $381.0 million outstanding under the revolving line of credit and an additional capacity of $562.6 million[59]. - The company has a term loan facility of $75.0 million maturing in December 2028, with the entire amount outstanding at an effective interest rate of 4.62%[60]. - As of December 31, 2023, the company had approximately $3.7 billion of debt outstanding, with about $511.0 million (14.0%) subject to variable interest rates[127]. - The company has issued various senior unsecured notes totaling over $1.1 billion with varying interest rates and maturity dates[64][65][67][68][69]. - Increased interest rates could raise the company's interest expenses, adversely affecting cash flow and the ability to service debt and make distributions[127]. - The company must distribute at least 90% of its net taxable income to maintain its REIT qualification, and failure to do so could result in a 4% non-deductible excise tax on any shortfall[137]. Operational Strategy - The company has internalized management for three PROs, enhancing operational efficiency and eliminating supervisory fees[23]. - The company’s operational strategy includes centralized initiatives for revenue enhancement and cost optimization to drive growth[22]. - The company’s properties are strategically located in high-quality sub-markets, providing strong and stable cash flows less sensitive to economic fluctuations[34]. - The company’s PRO structure aligns the interests of regional operators with public shareholders, incentivizing performance through subordinated performance units[21]. - The company engages in strategic joint ventures, which involve risks such as potential bankruptcy of partners and differing business interests[106]. Employee and Diversity - As of December 31, 2023, the company had a total of 1,108 employees, including those from its property management platform[83]. - Approximately 63% of the company's employees were women as of December 31, 2023, and 32% of the senior management team were women[82]. Risks and Challenges - The company faces risks from adverse economic conditions that could lower occupancy levels and rental rates, impacting operating results and property values[86]. - The company is dependent on automated information technology processes, making it vulnerable to cyber-attacks that could disrupt operations and compromise sensitive data[96]. - The company may incur significant costs to comply with the Americans with Disabilities Act (ADA), which could adversely affect financial condition and cash flows[98]. - Environmental compliance costs and liabilities could impact the company’s results of operations, as it may be liable for hazardous substances on its properties[99]. - The company faces competition from various entities in the self-storage market, which could affect occupancy rates and rental income[91]. - The company relies heavily on key personnel, and the loss of any senior management team members could harm business prospects[105]. Shareholder Considerations - The company has a dividend reinvestment plan under consideration for shareholders to reinvest cash dividends into additional common shares[73]. - The company has not established a minimum dividend payment level, and future distributions will be at the discretion of the board[150]. - The company anticipates that as cash available for distribution (CAD) grows, the conversion ratio of subordinated performance units to OP units will also increase[148]. - The partnership agreement may delay or prevent changes in control, impacting shareholder interests[118].

Financial Performance - Reported net income of $108.1 million for Q4 2023, an increase of 114.5% compared to Q4 2022, with diluted earnings per share of $0.72[5] - Net income attributable to common shareholders for Q4 2023 was $63.9 million, compared to $27.9 million in Q4 2022, with diluted earnings per share rising to $0.72 from $0.31[35] - Net income for Q4 2023 was $108,056, a 114% increase from $50,377 in Q4 2022[46] - For the year ended December 31, 2023, total revenue reached $214,292 million, resulting in a net income of $29,949 million[66] - Total revenue for the year ended December 31, 2023, was $670,527,000, representing a 2.4% increase compared to $654,529,000 in 2022[76] Funds From Operations (FFO) and Core FFO - Core funds from operations (Core FFO) for Q4 2023 were $83.6 million, or $0.68 per share, a decrease of 4.2% per share compared to Q4 2022[5] - Funds From Operations (FFO) attributable to common shareholders was $83.37 million for Q4 2023, a decrease of 7.8% compared to $89.89 million in Q4 2022[39] - Core FFO per share for the year ended December 31, 2023, was $2.69, down from $2.81 in 2022, reflecting a decline of 4.3%[43] - NSA uses FFO and Core FFO as key performance indicators to evaluate operational performance, excluding items like gains from property sales and depreciation[93] Revenue and Occupancy - Same store total revenues increased by 2.4% for full year 2023, driven by a 6.1% increase in average annualized rental revenue per occupied square foot[13] - Same store net operating income (NOI) decreased by 1.6% in Q4 2023, driven by a negligible increase in total revenues and a 4.8% rise in property operating expenses[5] - Same store period-end occupancy was 86.0% as of December 31, 2023, a decrease of 410 basis points compared to December 31, 2022[5] - Average annualized rental revenue per occupied square foot increased to $16.05 in Q4 2023, up 3.6% from $15.49 in Q4 2022[73] - The average occupancy rate across the same store pool was 87.2% in Q4 2023, down from 91.0% in Q4 2022, reflecting a 3.8% decrease[73] Property Acquisitions and Sales - Acquired 20 wholly-owned self storage properties for approximately $229.5 million during full year 2023, with $113.2 million in preferred shares and $67.3 million in OP equity[8] - Entered into an agreement to sell 71 self storage properties for approximately $540.0 million, with 32 properties sold in December 2023 and 39 properties classified as held for sale[5] - The company plans to acquire self-storage properties with a budget ranging from $100 million to $300 million in 2024[22] - The company reported a gain on the sale of self-storage properties of $63.91 million in 2023, compared to $5.47 million in 2022[39] Debt and Financing - Debt financing rose to $3.66 billion in 2023, an increase of 3% from $3.55 billion in 2022[37] - Total liabilities increased to $3.81 billion in 2023, compared to $3.68 billion in 2022, marking a rise of 3.3%[37] - The weighted average effective interest rate of maturing debt is 3.35%[57] - Net debt to annualized current quarter adjusted EBITDA is 6.1x[60] Dividends and Share Repurchase - The Board declared a quarterly cash dividend of $0.56 per share, a 1.8% increase from Q4 2022, with total dividends for 2023 at $2.23 per share, reflecting a 3.7% increase from 2022[20] - Repurchased 8,836,639 common shares for approximately $310.2 million under the share repurchase program during full year 2023[8] - In Q4 2023, NSA repurchased 852,771 shares for approximately $27.4 million, totaling 8,836,639 shares repurchased for about $310.2 million in the full year[19] Operational Metrics - The company held ownership interests in 1,050 self-storage properties as of December 31, 2023, with approximately 68.6 million rentable square feet[29] - Total stores operated as of December 31, 2023, reached 1,050, with a total of 541,696 units and 68,610,915 rentable square feet, maintaining an occupancy rate of 85.3%[47] - The company reported interest expenses of $45,441 for Q4 2023, compared to $34,633 in Q4 2022, reflecting a 31.5% increase[46] Future Guidance - For 2024, NSA's Core FFO per share guidance is estimated between $2.40 and $2.56, compared to $2.69 for 2023[22] - Total revenue growth for 2024 is projected to decline by 4.0% to 0.0%, while property operating expenses are expected to grow by 3.0% to 5.0%[22]

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 September 30, 2023 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 jur ...