National Storage Affiliates(NSA) - 2024 Q4 - Annual Results

Financial Performance - Reported net income of $26.1 million for Q4 2024, a decrease of 75.8% compared to Q4 2023, with diluted earnings per share of $0.15 compared to $0.72 in Q4 2023[6] - Full year 2024 net income was $183.3 million, a decrease of 22.7% compared to 2023, with diluted earnings per share of $1.18 compared to $1.48 in 2023[6] - Net income attributable to common shareholders for Q4 2024 was $11.615 million, down from $63.915 million in Q4 2023[33] - Net income for the year ended December 31, 2024, was $183,270, down from $236,988 in 2023, representing a decrease of about 22.6%[37] - Net income for the three months ended December 31, 2024, was $26,131,000, a decrease from $108,056,000 in the same period of 2023[43] Core Funds from Operations - Core funds from operations (Core FFO) for Q4 2024 were $81.2 million, or $0.60 per share, a decrease of 11.8% per share compared to Q4 2023[6] - Core FFO for full year 2024 was $308.7 million, or $2.44 per share, a decrease of 9.3% per share compared to 2023[6] - Core FFO per share for the three months ended December 31, 2024, was $0.60, down from $0.68 in the same period of 2023, a decrease of about 11.8%[40] - Core FFO per share guidance for 2025 is projected between $2.30 and $2.38, compared to $2.44 for 2024[21] Revenue and Operating Income - Same store net operating income (NOI) decreased by 7.5% in Q4 2024 compared to Q4 2023, driven by a 4.3% decrease in total revenues and a 4.7% increase in property operating expenses[6] - Total revenue for the year ended December 31, 2024, was $770.335 million, a decrease from $858.063 million in 2023[33] - Total revenue for Q4 2024 was $170.687 million, a decrease of 4.3% compared to $178.314 million in Q4 2023[65] - Net operating income for Q4 2024 was $49.837 million, reflecting a margin of 70.8%, down from 73.3% in Q4 2023[65] - Net operating income for the year ended December 31, 2024, was $515,757, compared to $594,666 in 2023, a decline of approximately 13.3%[42] Property Operations - Same store NOI decreased by 5.5% for full year 2024 compared to 2023, driven by a 3.0% decrease in total revenues and a 3.7% increase in property operating expenses[6] - Property operating expenses growth is anticipated to be between 3.0% and 4.0% for 2025, consistent with a 3.7% increase in 2024[21] - The overall property operating expenses increased to $494,052,000, down 5.5% from $523,008,000 in the previous year[70] - Property operating expenses for YTD 2024 totaled $199.5 million, an increase from $192.3 million in YTD 2023[75] Acquisitions and Dispositions - Acquired four self-storage properties for approximately $39.6 million during Q4 2024[6] - The company acquired 81 self-storage properties during 2024, totaling 35,133 units and 4,927,948 rentable square feet, with acquisition costs amounting to $557,747,000[50] - The company disposed of 96 self-storage properties during 2024, generating net proceeds of $616,812,000 from 42,691 units and 5,799,991 rentable square feet[51] Debt and Equity - As of February 24, 2025, the company has no debt maturities in 2025 and approximately $512.5 million of available capacity on its $950.0 million revolving line of credit[17] - Total debt as of December 31, 2024, is $3,449,087,000[57] - The weighted average effective interest rate of maturing debt is 4.36%[57] - The total leverage ratio stands at 44.5%, below the covenant limit of 60.0%[57] Dividends - Declared a quarterly cash dividend of $0.57 per common share for Q4 2024, with total cash dividends of $2.25 per common share for full year 2024[19] Market Performance - The average occupancy for the total/weighted average decreased to 84.4% in Q4 2024 from 85.8% in Q4 2023, a change of (1.4)%[67] - The same store pool for 2023 showed an average occupancy of 84.5%, down from 86.0% in 2022, reflecting a (1.5)% change[68] - Average annualized rental revenue per occupied square foot decreased to $15.56 in Q4 2024, down 2.5% from $15.96 in Q4 2023[67] Management and Operations - NSA uses FFO and Core FFO as key performance indicators to evaluate its operational performance, excluding items not indicative of operations such as gains or losses from property sales and depreciation[86] - NOI is defined as rental revenue plus other property-related revenue less property operating expenses, and is a primary measure for evaluating economic productivity[90] - Effective July 1, 2024, NSA completed the internalization of its participating regional operators (PROs), transitioning operations over a 12-month period[93]