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National Storage Affiliates(NSA) - 2024 Q3 - Quarterly Results
NSANational Storage Affiliates(NSA)2024-10-30 20:08

Financial Performance - Reported net income of 29.8millionforQ32024,adecreaseof30.929.8 million for Q3 2024, a decrease of 30.9% compared to Q3 2023[2] - Core funds from operations (Core FFO) were 83.9 million, or 0.62pershare,adecreaseof7.50.62 per share, a decrease of 7.5% per share compared to Q3 2023[3] - Total revenues for same store operations decreased by 3.5% in Q3 2024 compared to Q3 2023[13] - Total revenue for the nine months ended September 30, 2024, was 580.2 million, down from 642.7millioninthesameperiodof2023,representingadecreaseofapproximately9.7642.7 million in the same period of 2023, representing a decrease of approximately 9.7%[32] - Net income attributable to common shareholders for the nine months ended September 30, 2024, was 79.5 million, compared to 73.7millionin2023,anincreaseofapproximately7.573.7 million in 2023, an increase of approximately 7.5%[32] - The company reported a diluted earnings per share of 1.03 for the nine months ended September 30, 2024, compared to 0.77inthesameperiodof2023[32]−TotalrevenueforQ32024was0.77 in the same period of 2023[32] - Total revenue for Q3 2024 was 174.8 million, a decrease of 3.5% compared to 181.2millioninQ32023[55]−NetoperatingincomeforQ32024was181.2 million in Q3 2023[55] - Net operating income for Q3 2024 was 124.6 million, down 5.3% from 131.6millioninQ32023[55]OccupancyandRevenueTrends−Samestoreperiod−endoccupancywas85.6131.6 million in Q3 2023[55] Occupancy and Revenue Trends - Same store period-end occupancy was 85.6% as of September 30, 2024, a decrease of 270 basis points compared to September 30, 2023[4] - Average occupancy decreased by 2.9% to 86.3% for Q3 2024 compared to 89.2% in Q3 2023[13] - Total same store occupancy for Q3 2024 was 85.6%, down from 88.3% in Q3 2023, representing a decrease of 2.7%[57] - Average annualized rental revenue per occupied square foot decreased to 15.67 in Q3 2024 from 15.81inQ32023,adeclineof0.915.81 in Q3 2023, a decline of 0.9%[57] - The average occupancy for the 2023 same store pool was 86.5%, down from 89.5% in the previous year, reflecting a 3.0% decline[57] Property Acquisitions and Dispositions - The company acquired 18 self-storage properties for approximately 147.9 million through a joint venture, contributing about 37.0million[4][15]−Thecompanyacquiredself−storagepropertiesfor37.0 million[4][15] - The company acquired self-storage properties for 229.5 million in 2023, with guidance for 2024 acquisitions ranging from 100millionto100 million to 300 million[21] - A total of 96 self-storage properties were disposed of, generating net proceeds of 616,812,000,with39propertiessoldinQ12024alone[46]−Thecompanyhasacquiredself−storagepropertiesinmultiplestates,includingGeorgia(11),Indiana(7),andTexas(19)[46]ExpensesandCostManagement−PropertyoperatingexpensesfortheninemonthsendedSeptember30,2024,were616,812,000, with 39 properties sold in Q1 2024 alone[46] - The company has acquired self-storage properties in multiple states, including Georgia (11), Indiana (7), and Texas (19)[46] Expenses and Cost Management - Property operating expenses for the nine months ended September 30, 2024, were 159.6 million, compared to 172.2millionin2023,reflectingadecreaseofabout7.3172.2 million in 2023, reflecting a decrease of about 7.3%[32] - General and administrative expenses for the nine months ended September 30, 2024, were 45.0 million, slightly up from 44.3millionin2023[32]−Theaveragepropertyoperatingexpensesincreasedby3.444.3 million in 2023[32] - The average property operating expenses increased by 3.4% to 149,659,000 for the nine months ended September 30, 2024[59] - Property operating expenses totaled 52,712,000inQ32024,downfrom52,712,000 in Q3 2024, down from 58,581,000 in Q3 2023, a decrease of approximately 10.5%[66] Debt and Financing - Issued 350.0millionofseniorunsecurednoteswithaweightedaverageinterestrateof5.6350.0 million of senior unsecured notes with a weighted average interest rate of 5.6% and a maturity of 7.6 years[5] - Debt financing decreased from 3,658,205 to 3,428,304,areductionofapproximately6.33,428,304, a reduction of approximately 6.3%[34] - The company has a total debt of 3,428,304,000, with a weighted average effective interest rate of 4.34%[48] - The net debt to annualized current quarter adjusted EBITDA ratio stands at 6.4x, while the trailing twelve-month fixed charge coverage ratio is 2.8x[49] Guidance and Future Outlook - The company reaffirms its previously provided Core FFO guidance estimates for the year ended December 31, 2024[20] - Core FFO per share for 2023 was 2.69,withguidancefor2024rangingfrom2.69, with guidance for 2024 ranging from 2.36 to 2.44[21]−Samestoretotalrevenuegrowthfor2023was2.42.44[21] - Same store total revenue growth for 2023 was 2.4%, while the guidance for 2024 indicates a potential decline of 3.75% to 2.25%[21] Joint Ventures and Investments - The total investments in unconsolidated real estate ventures for the quarter ended September 30, 2024, amounted to 147,858,000, with 18 properties and 7,698 units[45] - The total outstanding debt across all ventures amounted to 1,212,881,000asofSeptember30,2024[52]−Thetotalrentablesquarefeetacrossallventuresreached17,978,106,withanoveralloccupancyrateof86.71,212,881,000 as of September 30, 2024[52] - The total rentable square feet across all ventures reached 17,978,106, with an overall occupancy rate of 86.7% as of Q3 2024[52] Market and Regional Performance - The MSA with the highest revenue in Q3 2024 was Riverside-San Bernardino-Ontario, generating 11.2 million[55] - The Riverside-San Bernardino-Ontario area experienced a 2.2% decrease in occupancy, dropping to 87.3% in Q3 2024 from 89.5% in Q3 2023[57] - The Houston-The Woodlands-Sugar Land area reported a 3.8% decline in total revenue to 40,150,000,withnetoperatingincomedown5.640,150,000, with net operating income down 5.6% to 31,086,000[59]