National Storage Affiliates Trust (NSA) Q1 2025 Earnings Call Highlights: Navigating Challenges ...
Q : Can you provide context on the 5% increase in contract rates from March and the 20 basis points rise in occupancy? Is this typical for April, and how do these rates compare year-over-year? A : David Cramer, CEO: We've seen sequential improvements in our rate scheme throughout the year, with street and contract rates increasing from January through April and into May. Our focus has been on maximizing revenue through occupancy, rate growth, and marketing spend. Our new schedule shows in-place customer rate growth and move-in rate growth, with move-in rates turning positive in March and continuing to improve in April and May.
Core FFO per share declined by 10% from the prior year period due to a decrease in same-store NOI and an increase in interest expense.
NSA's marketing and pricing strategies, including the use of AI, have led to better search rankings and optimized rate decisions.
Net Debt-to-EBITDA: 6.9 times at quarter end, expected to be 6% to 6.5% in the latter half of the year.
Story Continues
Q: How are you progressing with revenue synergies for the PRO properties, and can you update us on the occupancy gap you aimed to close by summer? A: David Cramer, CEO: The transition mainly occurred in the third and fourth quarters of last year. We've seen traction from consolidated pricing and marketing efforts. Initially, there was a 250 to 300 basis point occupancy gap, which we aim to close by mid-summer. We're making good progress, particularly in rate growth, and expect further traction in marketing and occupancy by then.
Q: Can you quantify the expected revenue growth pickup in the second half of the year, given the first quarter's negative 3% revenue growth? A: Brandon Togashi, CFO: We started the year with mid-single-digit negative same-store NOI growth, slightly worse than expected due to OpEx items like winter storm impacts. We expect continued sequential improvement, with revenue and NOI turning positive in the back half of the year, although the exact timing is uncertain.
Q: How much of the month-to-month improvement is due to seasonality versus actual demand improvements? A: David Cramer, CEO: Seasonality plays a role, with activity picking up in the spring leasing season. However, we've also seen success in street rate improvements since late last year, which is atypical for early months. Our ECRI program remains productive, and while occupancy may not rise as strongly as last year, our revenue has improved significantly.
Q: Can you discuss the dynamics of street rates and occupancy, and how you expect these to play out through the spring leasing season? A: David Cramer, CEO: We've had success in improving street and move-in rates, leading to better contract rates. While occupancy is a focus, our marketing and top-of-the-funnel efforts are gaining traction. We're balancing revenue growth with occupancy, and the improved rates reduce pressure on occupancy numbers.
Q: What is the current state of the transaction market, and what are your acquisition and disposition plans? A: David Cramer, CEO: We're seeing deal flow and are patient in matching deals with our cost of capital. We have active JV partners and are making progress on dispositions, aiming for $200 million this year. Acquisitions are lumpy, and we're being selective in our purchases.
Q: What occupancy assumptions are baked into your guidance, and have you seen any signs of a housing market recovery? A: Brandon Togashi, CFO: Our guidance assumes a moderately better demand than last year, with occupancy increases expected. We're seeing encouraging demand in expected markets, but it's still early in the leasing season.
Q: Can you quantify the operating expense savings from the PRO internalization, and will there be additional benefits in 2025? A: Brandon Togashi, CFO: We've realized G&A savings of about $2.5 million annually, with tenant insurance economics and property-level personnel cost savings also contributing. We're at a good run rate, and these benefits are largely reflected in our current numbers.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Upturn
a day ago
- Business Upturn
Ericsson bags multi-year NOC Managed Services contract with Bharti Airtel
Ericsson (NASDAQ: ERIC) has been awarded a significant multi-year Network Operations Center (NOC) Managed Services contract by Bharti Airtel, reinforcing the strong and enduring partnership between the two telecom giants. This strategic collaboration highlights Ericsson's leadership in managed services and its commitment to delivering superior network performance and value to Airtel's customers. Under this new agreement, Ericsson will deploy its advanced intent-based operations through a centralized NOC to efficiently manage Bharti Airtel's diverse network services. These include 4G, 5G Non-Standalone (NSA), 5G Standalone (SA), Fixed Wireless Access (FWA), Private Networks, and Network Slicing. The move aims to enhance network reliability, scalability, and innovation across Airtel's pan-India footprint. Ericsson's state-of-the-art NOC will play a crucial role in managing and scaling Airtel's expansive network infrastructure, especially focusing on expanding Fixed Wireless Access and Network Slicing capabilities throughout the country. This will empower Airtel to offer improved connectivity solutions and cater to evolving customer demands in the 5G era. Randeep Sekhon, CTO of Bharti Airtel, stated, 'We are excited to enhance our strong collaboration with Ericsson as we pursue our goal of creating a future-ready network that delivers an exceptional experience for our customers. We believe that these innovative technologies will empower us to meet the growing data demands of consumers in a digitally connected India.' With a partnership spanning over 25 years, Ericsson and Bharti Airtel have collaborated across multiple generations of mobile communication technologies. This latest contract follows Airtel's recent collaboration with Ericsson on 5G Core technology, further driving the evolution of India's 5G ecosystem. Aman Shukla is a post-graduate in mass communication . A media enthusiast who has a strong hold on communication ,content writing and copy writing. Aman is currently working as journalist at
Fox News
5 days ago
- Fox News
Chinese-made solar panels used on American farms puts US power grid at risk: former NSA official
A former analyst with the National Security Agency said that China is positioning equipment in "strategic places" that could be used to disrupt U.S. commerce after rogue communication devices were found inside Chinese solar power inverters. Rogue communication devices that were not in official product documents were found inside Chinese solar power inverters when they were examined by U.S. experts for possible security issues, two sources told Reuters. The two sources said that the rogue power inverters have undocumented communication channels which could be used to circumvent firewalls remotely, which could have major consequences. These power inverters connect the solar panel to electic grids. Rocky Cole, former intelligence analyst at the National Security Agency and co-founder of iVerify, told Fox News Digital it's "very conceivable" that China is using these rogue power inverters to gain access to American infrastructure. "It very much fits into the model of China implanting hardware in American critical infrastructure for the purpose of planning cyberattacks against the United States in the event of, say, a conflict with Taiwan or something along those lines," Cole said. Chinese companies are mandated by law to assist China's intelligence agencies when needed. Liu Pengyu, a spokesperson for the Chinese Embassy in Washington, D.C. gave Fox News Digital the following statement: "The goal of China's pursuit of development is to enable its people to live a better life. We oppose the presumption of guilt under unclear facts, the generalization of the concept of national security, and the distortion and smear of China's achievements in the field of energy infrastructure," Pengyu said. According to one of the sources, the undocumented communication devices, which include cellular radios, were found in batteries from multiple suppliers from China over the past nine months. Cole said this is just another example of China preparing for a possible conflict involving the U.S. "There are communications devices in these really strategic places that you can imagine could theoretically be used to disrupt U.S. commerce in the event of some sort of conflict," Cole said. "It's difficult not to view Chinese-made hardware in the realm of critical infrastructure as a national security threat in my mind." "Any time that you have any time that there's a supply chain outside the U.S. or U.S.-allied countries, that presents opportunities for what's called in intelligence parlance, supply chain operation, which means intelligence operatives work with the manufacturers to implant backdoors in the hardware," he added. "Without strict oversight of supply chains, it becomes very difficult to certify with any confidence that your hardware doesn't contain these backdoors implanted in supply chain operations. I think it's critically important that American officials are aware of the risks posed by Chinese-made hardware as it relates to critical infrastructure."
Yahoo
6 days ago
- Yahoo
HaloMD Vows to Defend Providers and the Federal IDR Framework Against Blue Cross Lawsuit
DALLAS, June 4, 2025 /PRNewswire/ -- HaloMD, the nation's prominent health‑technology company empowering healthcare providers to secure fair payment through the federal Independent Dispute Resolution (IDR) process, announced today that it will fight "to the full extent of the law" against a baseless lawsuit filed by Blue Cross Blue Shield Healthcare Plan of Georgia (BCBSGA) in the U.S. District Court for the Northern District of Georgia on May 27, 2025. "After years of systematically underpaying physicians and severely compressing reimbursement rates, BCBSGA has resorted to a courtroom smear campaign orchestrated to intimidate healthcare providers and to challenge rules and regulations of the very system Congress established to ensure fairness and protection for patients and providers," stated Alla LaRoque, President of HaloMD. "HaloMD will not stand by while a dominant insurer tries to suppress the evidence‑based advocacy that is finally achieving parity for physicians." The lawsuit arrives as national attention centers on the No Surprises Act (NSA)—landmark legislation that protects patients from surprise medical bills and grants clinicians a federally protected Independent Dispute Resolution (IDR) structure to contest insurers' unfairly low reimbursements. Regulated and implemented by the Centers for Medicare & Medicaid Services (CMS), the IDR process relies on certified Independent Dispute Resolution Entities (IDREs) to issue legally-binding, impartial arbitration awards. HaloMD has emerged as the industry's best‑in‑class technology partner—and a lifeline—for physician groups that lack the scale, resources, or in‑house expertise to navigate the complex IDR process and reclaim revenue lost to chronic underpayment. For many small and rural practices, HaloMD is the difference between keeping the lights on and closing their doors. HaloMD's platform levels the playing field, arming every provider—regardless of size—with the data, technology, and regulatory savvy needed to secure fair, timely payments. Lawsuit attacks providers and the arbitration system itself BCBSGA's filing does not merely target emergency physicians who have long suffered systemic underpayment or no payment at all; it directly challenges certified IDREs and the entire IDR framework. If successful, the suit would: Erode statutory safeguards, compliance with rules and regulations, authority of impartial arbitrators and balance in the process of dispute resolution; Disrupt patient access to emergency care by jeopardizing sustainability of medical practices; Set a dangerous precedent allowing insurers to litigate away federal consumer‑protection laws and processes After decades of setting reimbursement rates unilaterally, insurers are now confronting a neutral, factor‑driven arbitration process where they no longer hold the upper hand. As IDR rulings uphold fair and reasonable payments, BCBSGA has resorted to baseless litigation to regain an advantage it can no longer command. Put plainly, this payor is attacking the process because it is losing in IDR. "This is not a good‑faith legal dispute—it is a calculated strike aimed at collapsing the IDR infrastructure so insurers can return to unilateral price‑setting," added LaRoque. Timing underscores insurer's intent BCBSGA filed its lawsuit just one day before the Centers for Medicare & Medicaid Services (CMS) released public‑use data confirming that more and more emergency physicians—pushed into IDR after being paid pennies on the dollar—are finally recouping the reimbursements they were always entitled to with HaloMD's support. Next steps HaloMD is prepared to vigorously defend itself in this litigation in a manner that will highlight the lawsuit's meritless nature. "Our mission is bigger than any single lawsuit," LaRoque said. "We exist to safeguard the financial viability of medical practices so they can focus on saving lives—not fighting payors." Media Contact Press Inquiries: HaloMD Communications, View original content to download multimedia: SOURCE HaloMD Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
