National Storage Affiliates(NSA) - 2020 Q3 - Quarterly Report

Company Overview - As of September 30, 2020, the company owned 611 self-storage properties across 29 states and Puerto Rico, comprising approximately 36.8 million rentable square feet and 293,000 storage units[153]. - The same store portfolio consisted of 500 consolidated self storage properties as of September 30, 2020, providing a basis for year-over-year performance analysis[163]. Acquisitions and Growth - During the nine months ended September 30, 2020, the company acquired 44 self-storage properties for $282.8 million, adding approximately 2.3 million rentable square feet and 18,100 storage units[154]. - The company has a potential acquisition opportunity in its unconsolidated real estate ventures, which currently own 177 properties valued at approximately $1.5 billion based on historical book value[156]. - The company aims to expand its platform by recruiting additional established self-storage operators and implementing centralized initiatives for cost optimization[151]. Financial Performance - Net income for the three months ended September 30, 2020, was $21.4 million, an increase of $4.9 million or 29.7% compared to $16.5 million for the same period in 2019[165]. - Total revenue increased by $30.8 million, or 10.7%, for the nine months ended September 30, 2020, compared to the same period in 2019[181]. - Rental revenue rose by $27.6 million, or 10.5%, for the nine months ended September 30, 2020, driven by a $26.5 million increase in non-same store rental revenue[182]. - Net income for Q3 2020 was $21,411,000, compared to $16,514,000 in Q3 2019, representing a 29% increase[197]. - Adjusted EBITDA for the nine months ended September 30, 2020 was $205.8 million, up 11% from $185.2 million in the same period of 2019[206]. Occupancy and Revenue Metrics - Same store move-in volume increased approximately 11% during the three months ended September 30, 2020, compared to the same period in 2019[147]. - Same store period-end occupancy was 91.9% as of September 30, 2020, an increase of approximately 260 basis points compared to September 30, 2019[147]. - The company experienced a same store period-end occupancy of 92.4% as of October 31, 2020, which was a 50 basis point increase compared to September 30, 2020[146]. Expenses and Costs - Property operating expenses increased by $9.8 million, or 11.8%, for the nine months ended September 30, 2020, primarily due to a $9.6 million rise in non-same store expenses[185]. - General and administrative expenses decreased by $0.5 million, or 4.0%, for the three months ended September 30, 2020, attributed to reduced supervisory fees following a merger[172]. - Interest expense rose by $4.8 million, or 11.6%, for the nine months ended September 30, 2020, due to additional borrowings[188]. Cash Flow and Capital Expenditures - Cash provided by operating activities increased to $167.6 million for the nine months ended September 30, 2020, compared to $150.1 million for the same period in 2019, reflecting an increase of $17.5 million[212]. - Cash used in investing activities decreased to $268.5 million for the nine months ended September 30, 2020, down from $364.4 million in the same period of 2019[213]. - Total capital expenditures for the nine months ended September 30, 2020 were $13.0 million, a decrease from $15.9 million in 2019[214]. Debt and Interest Rate Management - The company had $246.5 million of debt subject to variable interest rates as of September 30, 2020, with a potential annual impact of $2.5 million on future earnings and cash flows if one-month LIBOR changes by 100 basis points[247]. - The company uses interest rate swaps to moderate exposure to interest rate risk, converting variable rate debt to fixed rate[246]. Shareholder Returns and Equity - The board of trustees declared a cash dividend of $0.34 per common share and OP unit, and cash distributions of $0.375 per Series A Preferred Share on August 20, 2020, payable on September 30, 2020[230]. - The company issued 8,105,192 common shares in connection with the mergers of SecurCare and DLAN[223]. - The company expects to generate approximately $160 million in net proceeds from the forward sale agreements of 4,900,000 common shares[225].