Financial Performance - The company reported a significant increase in revenue, achieving $500 million for the quarter, representing a 20% year-over-year growth[6] - The company provided an optimistic outlook, projecting a revenue growth of 25% for the next quarter, driven by new product launches[7] User Engagement - User data showed a 15% increase in active users, reaching 2 million by the end of the quarter[7] - The implementation of an integrated Internet marketing strategy is expected to boost customer engagement by 20%[18] Market Expansion - The company plans to expand its market presence by entering three new geographic regions by the end of the fiscal year[18] - A strategic acquisition of a competitor was completed, valued at $100 million, expected to enhance market share by 10%[18] Operational Efficiency - Investment in new technology development increased by 30%, focusing on enhancing operational efficiency and customer experience[18] - The company aims to reduce operating expenditures by 5% through improved cost management strategies[18] - Projected capital expenditures for the upcoming year are estimated at $50 million, primarily for technology upgrades[18] Demand Indicators - The company reported a 12% increase in occupancy rates across its facilities, indicating strong demand[7]

Company Overview - As of September 30, 2022, National Storage Affiliates (NSA) had a total enterprise value of $9.9 billion[16] - NSA's property portfolio consisted of 1,100 properties[17] - The company achieved a total shareholder return of 337% since its IPO in April 2015[15] - In Q3 2022, NSA's wholly-owned acquisitions amounted to $322 million[17] - The dividend rate increased by 34% year-over-year in Q3 2022[18] - Same-store average occupancy was 94.1% in Q3 2022[19] Financial Performance - Same-store NOI growth was 12.1% year-over-year in Q3 2022[19] - Core FFO per share growth was 26.3% year-over-year in Q3 2022[19] - Same-store revenue growth was 10.7% year-over-year in Q3 2022[19] Capital Structure - Total principal debt outstanding was $3.5 billion[65] - The weighted average maturity of the debt was 5.4 years[65] - The effective interest rate on the debt was 3.6%[65] - Equity represents 59% of the total enterprise value[61]

National Storage Affiliates Trust (NYSE:NSA) Q3 2022 Earnings Conference Call November 3, 2022 1:00 PM ET Company Participants George Hoglund - Vice President of Investor Relations Tamara Fischer - Chief Executive Officer David Cramer - President and Chief Operating Officer Brandon Togashi - Chief Financial Officer Conference Call Participants Juan Sanabria - BMO Capital Markets Neil Malkin - Capital One Securities Smedes Rose - Citi Michael Goldsmith - UBS Wesley Golladay - Baird Ronald Kamdem - Morgan Sta ...

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, 2022 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 ...

National Storage Affiliates Trust (NYSE:NSA) Q2 2022 Earnings Conference Call August 4, 2022 1:00 PM ET Company Participants George Hoglund - Vice President of Investor Relations Tamara Fischer - President, Chief Executive Officer & Trustee Dave Cramer - Executive Vice President, Chief Operating Officer & Member of Pro Advisory Committee Brandon Togashi - Executive Vice President, Chief Financial Officer, Chief Accounting Officer & Treasurer Conference Call Participants Samir Khanal - Evercore ISI Ki Bin Ki ...

Part I [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section provides unaudited condensed consolidated financial statements for the quarter and six months ended June 30, 2022, detailing accounting policies and financial activities [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to **$5.76 billion** and total liabilities to **$3.26 billion** as of June 30, 2022, driven by property growth and increased debt financing Balance Sheet Summary | Metric | June 30, 2022 ($ thousands) | December 31, 2021 ($ thousands) | | :--- | :--- | :--- | | **Total Assets** | 5,759,041 | 5,562,594 | | **Total Liabilities** | 3,257,728 | 3,080,139 | | **Total Equity** | 2,501,313 | 2,482,455 | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Total revenue grew **43.9%** to **$198.9 million** and net income reached **$48.4 million** in Q2 2022, with six-month figures at **$386.1 million** and **$93.2 million** respectively Summary of Operations ($ thousands) | Metric | Q2 2022 ($ thousands) | Q2 2021 ($ thousands) | H1 2022 ($ thousands) | H1 2021 ($ thousands) | | :--- | :--- | :--- | :--- | :--- | | **Total Revenue** | 198,890 | 138,246 | 386,074 | 261,238 | | **Net Income** | 48,425 | 35,675 | 93,211 | 63,310 | | **Diluted Earnings Per Share** | $0.24 | $0.25 | $0.48 | $0.44 | [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities significantly increased to **$227 million** in the first six months of 2022, while **$244.9 million** was used in investing activities, and **$25.6 million** provided by financing activities Cash Flow Summary (Six Months Ended June 30, $ thousands) | Activity | 2022 ($ thousands) | 2021 ($ thousands) | | :--- | :--- | :--- | | **Net Cash Provided by Operating Activities** | 227,043 | 144,259 | | **Net Cash Used in Investing Activities** | (244,926) | (398,136) | | **Net Cash Provided by Financing Activities** | 25,624 | 258,151 | | **Increase in Cash, Cash Equivalents, and Restricted Cash** | 7,741 | 4,274 | [Notes to Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail accounting policies and financial statement items, including property acquisitions, debt structure, equity composition, related party transactions, and fair value measurements, highlighting key events like Northwest PRO internalization and significant financing activities - As of June 30, 2022, the company owned **892** consolidated self-storage properties and held interests in a total of **1,076** properties across **42** states and Puerto Rico[31](index=31&type=chunk)[34](index=34&type=chunk) - The company acquired **20** self-storage properties for **$207.5 million** in the first six months of 2022[77](index=77&type=chunk) - Total outstanding debt was **$3.14 billion** as of June 30, 2022, an increase from **$2.94 billion** at the end of 2021[83](index=83&type=chunk) - Subsequent to the quarter-end, the company acquired an additional **six** properties for **$71.6 million** and approved a **$400 million** stock repurchase program[112](index=112&type=chunk)[113](index=113&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=30&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management analyzes the company's Q2 and H1 2022 financial performance, covering revenue growth driven by acquisitions and strong same-store performance, increased expenses, liquidity, capital resources, and key non-GAAP metrics like FFO, Core FFO, and NOI [Results of Operations](index=33&type=section&id=Results%20of%20Operations) Net income increased to **$48.4 million** in Q2 2022, driven by a **$42.3 million** rise in total NOI from acquisitions and **17.3%** same-store NOI growth, with H1 2022 net income reaching **$93.2 million** Q2 Performance (vs. Q2 2021, $ thousands) | Metric | 2022 ($ thousands) | 2021 ($ thousands) | Change | | :--- | :--- | :--- | :--- | | **Total Revenue** | 198,890 | 138,246 | +43.9% | | **Total Net Operating Income (NOI)** | 137,789 | 95,485 | +44.3% | | **Same-Store NOI** | 101,737 | 86,747 | +17.3% | | **Net Income** | 48,425 | 35,675 | +35.7% | H1 Performance (vs. H1 2021, $ thousands) | Metric | 2022 ($ thousands) | 2021 ($ thousands) | Change | | :--- | :--- | :--- | :--- | | **Total Revenue** | 386,074 | 261,238 | +47.8% | | **Total Net Operating Income (NOI)** | 269,066 | 178,145 | +51.0% | | **Same-Store NOI** | 199,621 | 166,857 | +19.6% | | **Net Income** | 93,211 | 63,310 | +47.2% | [Non-GAAP Financial Measures](index=39&type=section&id=Non-GAAP%20Financial%20Measures) The company uses FFO, Core FFO, NOI, and Adjusted EBITDA to measure performance, with Core FFO per share at **$0.71** in Q2 2022 and **$1.38** in H1 2022, reflecting adjustments for non-cash items to clarify core business operations FFO and Core FFO per Share/Unit | FFO & Core FFO per Share/Unit | Q2 2022 | Q2 2021 | H1 2022 | H1 2021 | | :--- | :--- | :--- | :--- | :--- | | **FFO per Share/Unit** | $0.70 | $0.55 | $1.37 | $1.03 | | **Core FFO per Share/Unit** | $0.71 | $0.55 | $1.38 | $1.04 | [Liquidity and Capital Resources](index=43&type=section&id=Liquidity%20and%20Capital%20Resources) Primary liquidity sources include operating cash flow, debt, and equity issuances, with **$32.3 million** cash and **$359.3 million** available on the revolving credit facility as of June 30, 2022, alongside significant property acquisitions and dividend payments - Primary liquidity sources include cash flow from operations, debt financing, and equity issuances[177](index=177&type=chunk) - As of June 30, 2022, the company held **$32.3 million** in cash and had **$359.3 million** available under its revolving credit facility[181](index=181&type=chunk)[187](index=187&type=chunk) - In the first half of 2022, the company used **$175 million** in cash for property acquisitions and paid **$96.2 million** in common stock dividends[183](index=183&type=chunk)[186](index=186&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=49&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate risk on its floating-rate debt, with **$695 million** unhedged as of June 30, 2022, where a **100-basis point** increase would raise annual interest expense by approximately **$7 million** - The primary market risk is interest rate risk[217](index=217&type=chunk) - As of June 30, 2022, **$695 million** of the company's debt was subject to floating interest rates, excluding debt subject to interest rate swaps[218](index=218&type=chunk) - A **100-basis point** increase in reference rates would increase annual interest expense by approximately **$7 million**[218](index=218&type=chunk) [Controls and Procedures](index=50&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, assessed the company's disclosure controls and procedures as effective as of June 30, 2022, with no significant changes in internal control over financial reporting during the quarter - The company's disclosure controls and procedures were deemed effective at the end of the period[220](index=220&type=chunk) - No significant changes occurred in internal control over financial reporting during the second quarter of 2022[221](index=221&type=chunk) Part II [Legal Proceedings](index=50&type=section&id=Item%201.%20Legal%20Proceedings) The company reports no involvement in any legal proceedings deemed material at this time - The company is not currently involved in any material legal proceedings[224](index=224&type=chunk) [Risk Factors](index=50&type=section&id=Item%201A.%20Risk%20Factors) This section directs readers to the company's annual report on Form 10-K for the year ended December 31, 2021, for a comprehensive discussion of potential risks and uncertainties - For a discussion of potential risks and uncertainties, refer to the 'Risk Factors' section in the company's 2021 Form 10-K[225](index=225&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=50&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) In Q2 2022, the company issued **294,573** common shares to satisfy OP unit redemptions and issued OP units for property acquisitions, with these transactions exempt from registration under Section 4(a)(2) of the Securities Act - In the second quarter of 2022, **294,573** common shares were issued to satisfy redemption requests from limited partners[226](index=226&type=chunk) - OP units were issued as partial consideration for the acquisition of several self-storage properties[227](index=227&type=chunk) - As of August 3, 2022, **38,022,594** OP units and **12,369,794** subordinated performance units were outstanding (excluding units held by the company)[234](index=234&type=chunk) [Other Information](index=52&type=section&id=Item%205.%20Other%20Information) On July 29, 2022, the company amended its credit agreement and other debt instruments to permit common stock repurchases under board-authorized plans, provided no default or event of default has occurred - On July 29, 2022, the company amended its credit agreement and other debt instruments[240](index=240&type=chunk) - This amendment permits the company to repurchase its common stock under board-authorized plans, provided no default has occurred[240](index=240&type=chunk)

National Storage Affiliates Company Update June 2022 Forward-Looking Statements and Non-GAAP Financial Measures FORWARD-LOOKING STATEMENTS: We make forward-looking statements in this presentation that are subject to risks and uncertainties. These forward-looking statements include information about possible or assumed future results of our business, financial condition, liquidity, results of operations, plans and objectives. When we use the words "believe," "expect," "anticipate," "estimate," "plan," "conti ...

National Storage Affiliates Company Update May 2022 Forward-Looking Statements and Non-GAAP Financial Measures FORWARD-LOOKING STATEMENTS: We make forward-looking statements in this presentation that are subject to risks and uncertainties. These forward-looking statements include information about possible or assumed future results of our business, financial condition, liquidity, results of operations, plans and objectives. When we use the words "believe," "expect," "anticipate," "estimate," "plan," "contin ...

National Storage Affiliates Company Update May 2022 Forward-Looking Statements and Non-GAAP Financial Measures FORWARD-LOOKING STATEMENTS: We make forward-looking statements in this presentation that are subject to risks and uncertainties. These forward-looking statements include information about possible or assumed future results of our business, financial condition, liquidity, results of operations, plans and objectives. When we use the words "believe," "expect," "anticipate," "estimate," "plan," "contin ...

Financial Data and Key Metrics Changes - Core FFO per share for Q1 2022 was reported at $0.68, representing a 39% increase year-over-year [20] - Same-store NOI increased by 22.2% in Q1 2022, driven by a 16.6% revenue increase and a 3.1% increase in property operating expenses [21] - Full-year 2022 guidance was updated to core FFO per share of $2.80 to $2.85, reflecting a 4% increase from previous guidance and 25% growth over the prior year [23] Business Line Data and Key Metrics Changes - Same-store occupancy averaged 94.7% during Q1 2022, an increase of 250 basis points compared to the previous year [21] - Street rates averaged 22% higher in Q1 2022 compared to the same period last year [16] - Rent roll-up remained positive at about 1% in Q1, increasing to slightly above 5% by the end of April [16] Market Data and Key Metrics Changes - The percentage of stores with new competitors within a 3- and 5-mile radius decreased to 27% and 45%, respectively [18] - Rising interest rates and inflation are driving up construction costs, further restraining new supply in the market [17] Company Strategy and Development Direction - The company plans to slow down acquisition volume in 2022 to focus on digesting the $2.2 billion of assets acquired in the previous year [11] - The company is integrating Northwest Self Storage assets into its corporate managed portfolio, which is expected to enhance growth [12] - The company continues to engage with high-quality private operators for potential partnerships, although no immediate changes are expected due to the current rate environment [63] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the self-storage sector's resilience, noting that fundamentals remain strong and demand is durable [60] - The company has not experienced significant pushback from customers regarding rate increases, indicating effective revenue management strategies [29] - Management acknowledged the potential impact of rising interest rates on new supply but remains optimistic about the overall market dynamics [39] Other Important Information - The company issued $17 million of OP equity during the quarter and closed a $125 million tranche of a private placement [24] - Kroll Bond Rating Agency upgraded the credit rating of the operating partnership to BBB+ from BBB flat, reflecting a conservative balance sheet [24] Q&A Session Summary Question: What changed to raise NOI guidance significantly? - Management indicated that Q1 performance exceeded expectations, leading to increased confidence in the remainder of the year [28] Question: Is there any pushback from customers regarding rate increases? - Management reported minimal pushback, with high occupancy levels and effective revenue management strategies [29] Question: How is occupancy expected to trend for the remainder of the year? - Management anticipates a seasonal spike in occupancy during summer months, followed by a normal seasonal pattern [31] Question: Are there concerns about inflation impacting rent increases? - Management does not foresee significant concerns regarding inflation, as self-storage remains an affordable option for consumers [35] Question: What is the impact of rising interest rates on new supply? - Management noted that rising interest rates are putting pressure on new supply, with fewer projects being approved and completed [39] Question: How are the recent acquisitions performing relative to expectations? - Acquired assets are performing 5% to 10% above initial underwriting expectations, contributing to revised guidance [49]