National Storage Affiliates(NSA) - 2025 Q1 - Quarterly Results

Financial Performance - Reported net income of $19.5 million for Q1 2025, a decrease of 79.5% compared to Q1 2024[6] - Core funds from operations (Core FFO) of $73.4 million, or $0.54 per share, a decrease of 10.0% per share compared to Q1 2024[6] - Total revenue for Q1 2025 was $188,354, a decrease of 4.0% from $196,148 in Q1 2024[30] - Net income attributable to common shareholders for Q1 2025 was $7,880, down 85.2% from $53,917 in Q1 2024[30] - Earnings per share - diluted decreased to $0.10 in Q1 2025 from $0.65 in Q1 2024[36] - Adjusted EBITDA for Q1 2025 was $123,009, down from $129,927 in Q1 2024, reflecting a decrease of 5.4%[39] - Cash and cash equivalents decreased to $19,266 as of March 31, 2025, from $50,408 at December 31, 2024[31] - Total assets decreased to $5,255,004 as of March 31, 2025, from $5,354,462 at December 31, 2024[31] - Total revenue for the three months ended March 31, 2025, was $61,624 million, a significant increase from $9,221 million in the same period of 2024[57] - Net operating income for the same period was $39,208 million, compared to $4,941 million in 2024, reflecting strong operational performance[57] - The company reported a net loss of $272 million for the three months ended March 31, 2025, an improvement from a net loss of $2,691 million in the same period of 2024[57] Operational Metrics - Same store net operating income (NOI) decreased by 5.7% for Q1 2025, driven by a 3.0% decrease in same store total revenues[6] - Same store period-end occupancy was 83.6% as of March 31, 2025, a decrease of 240 basis points compared to March 31, 2024[6] - Total revenues for same store operations were $168.7 million, a decrease of 3.0% compared to Q1 2024[11] - The average annualized rental revenue per occupied square foot decreased by 1.0% to $15.70 for Q1 2025[11] - Net Operating Income (NOI) for Q1 2025 was $121,115, a decline of 8.5% compared to $132,380 in Q1 2024[38] - Average occupancy at the end of Q1 2025 was 83.6%, down from 84.7% in Q4 2024, a decrease of 1.1 percentage points[64] - Average annualized rental revenue per occupied square foot in Q1 2025 was $15.70, slightly up from $15.60 in Q4 2024, an increase of 0.6%[64] - Average occupancy for the same store portfolio decreased to 83.9% in Q1 2025 from 85.8% in Q1 2024[67] Expenses and Costs - Property operating expenses increased by 3.7% year-over-year for Q1 2025[12] - The company incurred acquisition and integration costs of $2,445 in Q1 2025, compared to $507 in Q1 2024[30] - Property operating expenses for Q1 2025 totaled $55,104,000, an increase from $54,694,000 in Q1 2024[67] - General and administrative expenses decreased to $13,145,000 in Q1 2025 from $15,674,000 in Q1 2024, a reduction of 16.3%[67] Debt and Financing - The company has approximately $522.5 million of available capacity on its $950.0 million revolving line of credit as of March 31, 2025[14] - As of March 31, 2025, total debt amounts to $3,436,060,000 with a weighted average effective interest rate of 4.54%[48] - The net debt to annualized current quarter adjusted EBITDA ratio is 6.9x, while the trailing twelve-month fixed charge coverage ratio is 2.7x[52] - Total leverage ratio stands at 45.1%, well below the covenant limit of 60.0%[52] Acquisitions and Dispositions - Acquired three wholly-owned self storage properties for approximately $13.5 million during Q1 2025[6] - The company acquired 3 self-storage properties during the quarter ended March 31, 2025, adding 107,041 rentable square feet at an acquisition cost of $12,434,000, with total investment reaching $13,494,000[44] - The company disposed of 2 self-storage properties during the same quarter, generating net proceeds of $9,752,000 from 82,270 rentable square feet[45] - The company’s acquisition strategy focuses on expanding its footprint in key markets, as evidenced by recent acquisitions in Kansas and New Mexico[46] Portfolio Overview - As of March 31, 2025, the company operates a total of 1,075 stores with a rentable square footage of 70,208,353, achieving an overall occupancy rate of 83.3%[42] - The company’s wholly-owned portfolio includes 816 stores with a total rentable square footage of 52,199,772 and an occupancy rate of 83.1%[42] - The highest occupancy rate among states is in Oregon at 87.2% for wholly-owned stores[42] - The company has a diverse portfolio across multiple states, including significant operations in Texas, California, and Florida[42] Future Outlook - NSA reaffirms Core FFO guidance for 2025, estimating Core FFO per share between $2.30 and $2.38[16] - The company plans to continue focusing on market expansion and new product development to drive future growth[58] - The company continues to optimize its portfolio through strategic dispositions, enhancing overall asset quality and liquidity[45]