National Storage Affiliates(NSA) - 2024 Q3 - Quarterly Results

Financial Performance - Reported net income of $29.8 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 $0.62 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 $642.7 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 $73.7 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 $0.77 in the same period of 2023[32] - Total revenue for Q3 2024 was $174.8 million, a decrease of 3.5% compared to $181.2 million in Q3 2023[55] - Net operating income for Q3 2024 was $124.6 million, down 5.3% from $131.6 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 $15.81 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 $37.0 million[4][15] - The company acquired self-storage properties for $229.5 million in 2023, with guidance for 2024 acquisitions ranging from $100 million to $300 million[21] - A total of 96 self-storage properties were disposed of, generating net proceeds of $616,812,000, 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 $172.2 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 $44.3 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 $52,712,000 in Q3 2024, down from $58,581,000 in Q3 2023, a decrease of approximately 10.5%[66] Debt and Financing - Issued $350.0 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, 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, with guidance for 2024 ranging from $2.36 to $2.44[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 $1,212,881,000 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, with net operating income down 5.6% to $31,086,000[59]