National Storage Affiliates Trust Reports Fourth Quarter and Full Year 2024 Results

Yahoo

26-02-2025

GREENWOOD VILLAGE, Colo., February 26, 2025--(BUSINESS WIRE)--National Storage Affiliates Trust ("NSA" or the "Company") (NYSE: NSA) today reported the Company's fourth quarter and full year 2024 results.
Fourth Quarter 2024 Highlights
Reported net income of $26.1 million for the fourth quarter of 2024, a decrease of 75.8% compared to the fourth quarter of 2023. Reported diluted earnings per share of $0.15 for the fourth quarter of 2024 compared to $0.72 for the fourth quarter of 2023.
Reported core funds from operations ("Core FFO") of $81.2 million, or $0.60 per share for the fourth quarter of 2024, a decrease of 11.8% per share compared to the fourth quarter of 2023.
Reported a decrease in same store net operating income ("NOI") of 7.5% for the fourth quarter of 2024 compared to the same period in 2023, driven by a 4.3% decrease in same store total revenues and a 4.7% increase in same store property operating expenses.
Reported same store period-end occupancy of 84.4% as of December 31, 2024, a decrease of 140 basis points compared to December 31, 2023.
Acquired four wholly-owned self storage properties for approximately $39.6 million during the fourth quarter of 2024.
Entered into a new sales agreement for an At the Market ("ATM") program authorizing, but not obligating, the sale of up to $400.0 million of NSA's common shares of beneficial interest ("common shares") from time to time.
Full Year 2024 Highlights
Reported net income of $183.3 million for full year 2024, a decrease of 22.7% compared to full year 2023. Reported diluted earnings per share of $1.18 for full year 2024 compared to $1.48 for full year 2023.
Reported Core FFO of $308.7 million, or $2.44 per share for full year 2024, a decrease of 9.3% per share compared to full year 2023.
Reported a decrease in same store NOI of 5.5% for full year 2024 compared to full year 2023, driven by a 3.0% decrease in same store total revenues and a 3.7% increase in same store property operating expenses.
Acquired seven wholly-owned self storage properties for approximately $64.9 million and 18 self storage properties through the Company's unconsolidated real estate ventures for approximately $147.9 million during full year 2024.
Completed the sales of 40 wholly-owned self storage properties to unaffiliated third parties for net proceeds of approximately $273.1 million and contributed 56 wholly-owned self storage properties to a joint venture between a subsidiary of NSA and a subsidiary of Heitman Capital Management, LLC (the "2024 Joint Venture") for approximately $346.5 million during full year 2024.
Repurchased 7,400,322 common shares for approximately $275.2 million under the previously announced share repurchase program.
Completed the internalization of the Company's participating regional operator ("PRO") structure. As a result, the Company purchased the PROs' management contracts, and in some cases, their brand names, related intellectual property and certain rights related to the PROs' tenant insurance programs.
David Cramer, President and Chief Executive Officer, commented, "Same store results were in line with our expectations for the fourth quarter as we were pleased to finish the heavy lifting from the internalization of our PRO structure. Core FFO per share came in at the high end of our expectations due primarily to lower-than-expected general and administrative expenses, better-than-expected contributions from our unconsolidated real estate ventures, and favorable property and tenant insurance outcomes."
Mr. Cramer further commented, "We were focused throughout 2024 positioning NSA to realize outsized benefits as market fundamentals improve. While there is uncertainty in the macro environment for 2025, we have no near term debt maturities, and we remain focused on executing operationally and realizing the expected accretion that we've previously highlighted from the internalization of our PRO structure."
Financial Results
($ in thousands, except per share and unit data)
Three Months Ended December 31,
Year Ended December 31,
2024
2023
Change
2024
2023
Change
Net income
$
26,131
$
108,056
(75.8
)%
$
183,270
$
236,988
(22.7
)%
Funds From Operations ("FFO")(1)
$
79,746
$
83,369
(4.3
)%
$
304,123
$
341,528
(11.0
)%
Add back acquisition costs
328
235
39.6
%
1,602
1,659
(3.4
)%
Add integration and executive severance costs(2)
1,137
—
—
%
2,671
—
—
%
Subtract casualty-related recoveries(3)
—
—
—
%
—
(522
)
—
%
Add loss on early extinguishment of debt
—
—
—
%
323
758
(57.4
)%
Core FFO(1)
$
81,211
$
83,604
(2.9
)%
$
308,719
$
343,423
(10.1
)%
Earnings per share - basic
$
0.15
$
0.77
(80.5
)%
$
1.18
$
1.58
(25.3
)%
Earnings per share - diluted
$
0.15
$
0.72
(79.2
)%
$
1.18
$
1.48
(20.3
)%
FFO per share and unit(1)
$
0.59
$
0.68
(13.2
)%
$
2.40
$
2.67
(10.1
)%
Core FFO per share and unit(1)
$
0.60
$
0.68
(11.8
)%
$
2.44
$
2.69
(9.3
)%
(1)
Non-GAAP financial measures, including FFO, Core FFO and NOI, are defined in the Glossary in the supplemental financial information and, where appropriate, reconciliations of these measures and other non-GAAP financial measures to their most directly comparable GAAP measures are included in the Schedules to this press release and in the supplemental financial information.
(2)
Integration costs relate to expenses incurred as a part of the internalization of the PRO structure. Executive severance costs are recorded within the line items "General and administrative expenses" and "Non-operating (expense) income" in our consolidated statements of operations.
(3)
Casualty-related recoveries in 2023 relate to casualty-related expenses incurred during 2022 and are recorded in the line item "Other" within operating expenses in our consolidated statements of operations.
Net income decreased $81.9 million for the fourth quarter of 2024 and by $53.7 million for the year ended December 31, 2024 ("year-to-date") as compared to the same periods in 2023. These decreases were primarily driven by a decrease in NOI, resulting from: (i) the sale of 32 self storage properties to an unaffiliated third party in December 2023, (ii) the contribution of 56 self storage properties to the 2024 Joint Venture, in the first quarter of 2024, and (iii) the sale of 40 self storage properties to unaffiliated third parties in the year ended December 31, 2024. Additionally, the decrease in net income for the fourth quarter of 2024 was impacted by a gain on sale of self storage properties in the fourth quarter of 2023. The decreases in net income for the fourth quarter and year-to-date were partially offset by decreases in depreciation expense of $5.8 million and $32.1 million, respectively, and interest expense of $6.1 million and $11.9 million, respectively.
The decreases in FFO and Core FFO for the fourth quarter of 2024 and year-to-date were the result of a decrease in NOI of 16.0% and 13.3%, respectively, which were partially offset by a decrease in interest expense of 13.4% and 7.2%, respectively, as compared to the same periods in 2023. The decrease in FFO and Core FFO per share and unit for the fourth quarter of 2024 and year-to-date was largely driven by a decrease in same store NOI, partially offset by decreased management fees paid to former PROs, reflected within general and administrative expenses, following the internalization of the PRO structure.
Same Store Operating Results (776 Stores)
($ in thousands, except per square foot data)
Three Months Ended December 31,
Year Ended December 31,
2024
2023
Change
2024
2023
Change
Total revenues
$
170,687
$
178,314
(4.3
)%
$
693,548
$
715,296
(3.0
)%
Property operating expenses
49,837
47,614
4.7
%
199,496
192,288
3.7
%
Net Operating Income (NOI)
$
120,850
$
130,700
(7.5
)%
$
494,052
$
523,008
(5.5
)%
NOI Margin
70.8
%
73.3
%
(2.5
)%
71.2
%
73.1
%
(1.9
)%
Average Occupancy
85.2
%
87.0
%
(1.8
)%
85.8
%
88.7
%
(2.9
)%
Average Annualized Rental Revenue Per Occupied Square Foot
$
15.56
$
15.96
(2.5
)%
$
15.68
$
15.71
(0.2
)%
Year-over-year same store total revenues decreased 4.3% for the fourth quarter of 2024 and 3.0% year-to-date as compared to the same periods in 2023. The decrease for the fourth quarter was driven primarily by a 180 basis point decrease in average occupancy and a 2.5% decrease in average annualized rental revenue per occupied square foot. The year-to-date same store total revenue decrease was driven primarily by a 290 basis point decrease in average occupancy and a 0.2% decrease in average annualized rental revenue per occupied square foot. Markets which generated above portfolio average same store total revenue growth include: San Juan, Wichita and Portland. Markets which generated below portfolio average same store total revenue growth include: Riverside-San Bernardino, Atlanta and Phoenix.
Year-over-year same store property operating expenses increased 4.7% for the fourth quarter of 2024 and 3.7% year-to-date as compared to the same periods in 2023. The increases were primarily driven by increases in marketing, insurance, and property tax expense, partially offset by decreases in personnel costs and repairs and maintenance expenses.
Investment Activity
During the fourth quarter, NSA invested $39.6 million in the acquisition of four wholly-owned self storage properties consisting of approximately 263,000 rentable square feet configured in approximately 2,100 storage units. Total consideration for these acquisitions included approximately $39.5 million of net cash and the assumption of approximately $0.1 million of other liabilities.
Balance Sheet
For the full year 2024, NSA repurchased 7,400,322 common shares for approximately $275.2 million, under a previously announced share repurchase plan, under which no common shares remain available for repurchase. On November 14, 2024, NSA approved a new share repurchase program authorizing, but not obligating, the repurchase of up to $350.0 million of its common shares from time to time. NSA expects to acquire the common shares through open market or privately negotiated transactions. The timing and amount of repurchase transactions, if any, will be determined by NSA's management based on its evaluation of market conditions, share price, legal requirements and other factors.
On November 19, 2024, NSA and its operating partnership, NSA OP, LP, entered into a sales agreement with certain sales agents, forward sellers and forward purchasers pursuant to which NSA may sell from time to time up to $400.0 million of its common shares in sales deemed to be "at the market offerings." The timing and amount of these offerings, if any, will be determined by NSA's management based on its evaluation of market conditions, share price, legal requirements and other factors.
As of February 24, 2025, NSA has no debt maturities in 2025 and approximately $512.5 million of available capacity on its $950.0 million revolving line of credit.
Common Share Dividends
On November 14, 2024, NSA's Board of Trustees declared a quarterly cash dividend of $0.57 per common share. The fourth quarter 2024 dividend was paid on December 31, 2024 to shareholders of record as of December 13, 2024.
For full year 2024, NSA's Board of Trustees declared cash dividends of $2.25 per common share.
2025 Guidance
The following table outlines NSA's Core FFO per share guidance estimates and related assumptions for the year ended December 31, 2025.
Ranges for Full Year
2025
Actual
Results for
Full Year
2024
Low
High
Core FFO per share(1)
$2.30
$2.38
$2.44
Same store operations(2)
Total revenue growth
(1.25)%
1.25%
(3.0)%
Property operating expenses growth
3.0%
4.0%
3.7%
NOI growth
(2.8)%
0.0%
(5.5)%
General and administrative expenses
General and administrative expenses (excluding equity-based compensation), in millions
$45.5
$47.5
$49.7
Equity-based compensation, in millions
$8.0
$8.5
$7.9
Management fees and other revenue, in millions
$49.5
$51.5
$42.7
Core FFO from unconsolidated real estate ventures, in millions
$21.5
$23.5
$24.2
Acquisitions - consolidated and joint venture (at share), in millions(3)
$100.0
$300.0
$101.8
Dispositions - consolidated and joint venture (at share), in millions(3)
$100.0
$300.0
$273.1
Ranges for
Full Year 2025
Low
High
Earnings per share - diluted
$0.64
$0.70
Impact of the difference in weighted average number of shares and GAAP accounting for noncontrolling interests, two-class method and treasury stock method
(0.14)
(0.19)
Add real estate depreciation and amortization
1.47
1.50
Add (subtract) equity in losses (earnings) of unconsolidated real estate ventures
0.13
0.14
Add NSA's share of FFO of unconsolidated real estate ventures
0.16
0.17
Add acquisition costs and NSA's share of unconsolidated real estate venture acquisition costs
0.01
0.02
Add integration and executive severance costs
0.03
0.04
Core FFO per share and unit
$2.30
$2.38
(1)
The table above provides a reconciliation of the range of estimated earnings per share - diluted to estimated Core FFO per share and unit.
(2)
2025 guidance reflects NSA's 2025 same store pool comprising 771 stores. 2024 actual results reflect NSA's 2024 same store pool comprising 776 stores.
(3)
NSA's actual results for full year 2024 exclude the contribution of wholly-owned self storage properties into the 2024 Joint Venture for approximately $346.5 million.
Supplemental Financial Information
The full text of this earnings release and supplemental financial information, including certain financial information referenced in this release, are available on NSA's website at www.nsastorage.com and as exhibit 99.1 to the Company's Form 8-K furnished to the SEC on February 26, 2025.
Non-GAAP Financial Measures & Glossary
This press release contains certain non-GAAP financial measures. These non-GAAP measures are presented because NSA's management believes these measures help investors understand NSA's business, performance and ability to earn and distribute cash to its shareholders by providing perspectives not immediately apparent from net income (loss). These measures are also frequently used by securities analysts, investors and other interested parties. The presentations of FFO, Core FFO and NOI in this press release are not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. In addition, NSA's method of calculating these measures may be different from methods used by other companies, and, accordingly, may not be comparable to similar measures as calculated by other companies that do not use the same methodology as NSA. These measures, and other words and phrases used herein, are defined in the Glossary in the supplemental financial information and, where appropriate, reconciliations of these measures and other non-GAAP financial measures to their most directly comparable GAAP measures are included in the Schedules to this press release and in the supplemental financial information.
Quarterly Teleconference and Webcast
The Company will host a conference call at 1:00 pm Eastern Time on Thursday, February 27, 2025 to discuss its fourth quarter 2024 financial results. At the conclusion of the call, management will accept questions from certified financial analysts. All other participants are encouraged to listen to a webcast of the call by accessing the link found on the Company's website at www.nsastorage.com.
Conference Call and Webcast:
Date/Time: Thursday, February 27, 2025, 1:00 pm ET
Webcast available at: www.nsastorage.com.
Domestic (Toll Free US & Canada): 877.407.9711
International: 412.902.1014
A replay of the webcast will be available for 30 days on NSA's website at www.nsastorage.com.
Upcoming Industry Conference
NSA management is scheduled to participate in Citi's 2025 Global Property CEO Conference on March 3 - 5, 2025 in Hollywood, Florida.
About National Storage Affiliates Trust
National Storage Affiliates Trust is a real estate investment trust headquartered in Greenwood Village, Colorado, focused on the ownership, operation and acquisition of self storage properties predominantly located within the top 100 metropolitan statistical areas throughout the United States. As of December 31, 2024, the Company held ownership interests in and operated 1,074 self storage properties, located in 42 states and Puerto Rico with approximately 70.2 million rentable square feet. NSA is one of the largest owners and operators of self storage properties among public and private companies in the United States. For more information, please visit the Company's website at www.nsastorage.com. NSA is included in the MSCI US REIT Index (RMS/RMZ), the Russell 1000 Index of Companies and the S&P MidCap 400 Index.
NOTE REGARDING FORWARD LOOKING STATEMENTS
Certain statements contained in this press release constitute forward-looking statements as such term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and such statements are intended to be covered by the safe harbor provided by the same. Forward-looking statements are subject to substantial risks and uncertainties, many of which are difficult to predict and are generally beyond the Company's control. These forward-looking statements include information about possible or assumed future results of the Company's business, financial condition, liquidity, results of operations, plans and objectives. Changes in any circumstances may cause the Company's actual results to differ significantly from those expressed in any forward-looking statement. When used in this release, the words "believe," "expect," "anticipate," "estimate," "plan," "continue," "intend," "should," "may" or similar expressions are intended to identify forward-looking statements. Statements regarding the following subjects, among others, may be forward-looking: market trends in the Company's industry, interest rates, inflation, the debt and lending markets or the general economy; the Company's business and investment strategy; the acquisition of properties, including those under contract and the Company's ability to execute on its acquisition pipeline; the timing of acquisitions under contract; the Company's ability to realize the benefits from the internalization of the PRO structure; and the Company's guidance estimates for the year ended December 31, 2025. For a further list and description of such risks and uncertainties, see the Company's most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed with the Securities and Exchange Commission, and the other documents filed by the Company with the Securities and Exchange Commission. The forward-looking statements, and other risks, uncertainties and factors are based on the Company's beliefs, assumptions and expectations of its future performance, taking into account all information currently available to the Company. Forward-looking statements are not predictions of future events. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
National Storage Affiliates Trust
Consolidated Statements of Operations
(in thousands, except per share amounts)
(unaudited)
Three Months Ended December 31,
Year Ended December 31,
2024
2023
2024
2023
REVENUE
Rental revenue
$
171,029
$
198,693
$
700,247
$
793,966
Other property-related revenue
6,708
7,502
27,362
29,686
Management fees and other revenue
12,381
9,217
42,726
34,411
Total revenue
190,118
215,412
770,335
858,063
OPERATING EXPENSES
Property operating expenses
52,245
56,828
211,852
228,986
General and administrative expenses
12,629
14,956
57,606
59,281
Depreciation and amortization
48,153
53,988
189,855
221,993
Other
3,356
2,577
13,866
11,108
Total operating expenses
116,383
128,349
473,179
521,368
OTHER (EXPENSE) INCOME
Interest expense
(39,340
)
(45,441
)
(154,260
)
(166,147
)
Loss on early extinguishment of debt
—
—
(323
)
(758
)
Equity in (losses) earnings of unconsolidated real estate ventures
(5,284
)
2,084
(16,075
)
7,553
Acquisition and integration costs
(1,465
)
(235
)
(3,616
)
(1,659
)
Non-operating (expense) income
(38
)
(590
)
314
(1,016
)
Gain on sale of self storage properties
—
63,910
63,841
63,910
Other (expense) income, net
(46,127
)
19,728
(110,119
)
(98,117
)
Income before income taxes
27,608
106,791
187,037
238,578
Income tax (expense) benefit
(1,477
)
1,265
(3,767
)
(1,590
)
Net income
26,131
108,056
183,270
236,988
Net income attributable to noncontrolling interests
(9,403
)
(39,031
)
(71,752
)
(80,319
)
Net income attributable to National Storage Affiliates Trust
16,728
69,025
111,518
156,669
Distributions to preferred shareholders
(5,113
)
(5,110
)
(20,445
)
(19,019
)
Net income attributable to common shareholders
$
11,615
$
63,915
$
91,073
$
137,650
Earnings per share - basic
$
0.15
$
0.77
$
1.18
$
1.58
Earnings per share - diluted
$
0.15
$
0.72
$
1.18
$
1.48
Weighted average shares outstanding - basic
76,240
82,642
76,844
86,846
Weighted average shares outstanding - diluted
76,240
141,319
76,844
146,023
National Storage Affiliates Trust
Consolidated Balance Sheets
(dollars in thousands, except per share amounts)
(unaudited)
December 31,
December 31,
2024
2023
ASSETS
Real estate
Self storage properties
$
5,864,134
$
5,792,174
Less accumulated depreciation
(1,051,638
)
(874,359
)
Self storage properties, net
4,812,496
4,917,815
Cash and cash equivalents
50,408
64,980
Restricted cash
345
22,713
Debt issuance costs, net
5,632
8,442
Investment in unconsolidated real estate ventures
246,193
211,361
Other assets, net
218,482
134,002
Assets held for sale, net
—
550,199
Operating lease right-of-use assets
20,906
22,299
Total assets
$
5,354,462
$
5,931,811
LIABILITIES AND EQUITY
Liabilities
Debt financing
$
3,449,087
$
3,658,205
Accounts payable and accrued liabilities
98,657
92,766
Interest rate swap liabilities
471
3,450
Operating lease liabilities
22,888
24,195
Deferred revenue
20,012
27,354
Total liabilities
3,591,115
3,805,970
Equity
Preferred shares of beneficial interest, par value $0.01 per share. 50,000,000 authorized, 14,695,458 and 14,685,716 issued (in series) and outstanding at December 31, 2024 and December 31, 2023, respectively, at liquidation preference
340,895
340,651
Common shares of beneficial interest, par value $0.01 per share. 250,000,000 shares authorized, 76,344,661 and 82,285,995 shares issued and outstanding at December 31, 2024 and December 31, 2023, respectively
763
823
Additional paid-in capital
1,249,426
1,509,563
Distributions in excess of earnings
(530,652
)
(449,907
)
Accumulated other comprehensive income
15,548
21,058
Total shareholders' equity
1,075,980
1,422,188
Noncontrolling interests
687,367
703,653
Total equity
1,763,347
2,125,841
Total liabilities and equity
$
5,354,462
$
5,931,811
Reconciliation of Net Income to FFO and Core FFO
(in thousands, except per share and unit amounts) (unaudited)
Three Months Ended December 31,
Year Ended December 31,
2024
2023
2024
2023
Net income
$
26,131
$
108,056
$
183,270
$
236,988
Add (subtract):
Real estate depreciation and amortization
47,770
53,659
188,358
220,737
Equity in losses (earnings) of unconsolidated real estate ventures
5,284
(2,084
)
16,075
(7,553
)
Company's share of FFO in unconsolidated real estate ventures
6,129
6,095
24,156
24,636
Gain on sale of self storage properties
—
(63,910
)
(63,841
)
(63,910
)
Distributions to preferred shareholders and unitholders
(5,568
)
(5,572
)
(22,273
)
(20,330
)
FFO attributable to subordinated performance units(1)
—
(12,875
)
(21,622
)
(49,040
)
FFO attributable to common shareholders, OP unitholders, and LTIP unitholders
79,746
83,369
304,123
341,528
Add (subtract):
Acquisition costs
328
235
1,602
1,659
Integration and executive severance costs(2)
1,137
—
2,671
—
Casualty-related recoveries(3)
—
—
—
(522
)
Loss on early extinguishment of debt
—
—
323
758
Core FFO attributable to common shareholders, OP unitholders, and LTIP unitholders
$
81,211
$
83,604
$
308,719
$
343,423
Weighted average shares and units outstanding - FFO and Core FFO:(4)
Weighted average shares outstanding - basic
76,240
82,642
76,844
86,846
Weighted average restricted common shares outstanding
19
23
20
25
Weighted average OP units outstanding
52,260
37,701
45,110
38,302
Weighted average DownREIT OP unit equivalents outstanding
5,769
2,120
3,955
2,120
Weighted average LTIP units outstanding
706
577
684
553
Total weighted average shares and units outstanding - FFO and Core FFO
134,994
123,063
126,613
127,846
FFO per share and unit
$
0.59
$
0.68
$
2.40
$
2.67
Core FFO per share and unit
$
0.60
$
0.68
$
2.44
$
2.69
(1)
Amounts represent distributions declared for subordinated performance unitholders and DownREIT subordinated performance unitholders for the periods presented.
(2)
Integration costs relate to expenses incurred as a part of the internalization of the PRO structure. Executive severance costs are recorded within the line items "General and administrative expenses" and "Non-operating (expense) income" in our consolidated statements of operations.
(3)
Casualty-related recoveries in 2023 relate to casualty-related expenses incurred during 2022 and are recorded in the line item "Other" within operating expenses in our consolidated statements of operations.
(4)
NSA combines OP units and DownREIT OP units with common shares because, after the applicable lock-out periods, OP units in the Company's operating partnership are redeemable for cash or, at NSA's option, exchangeable for common shares on a one-for-one basis and DownREIT OP units are also redeemable for cash or, at NSA's option, exchangeable for OP units in the Company's operating partnership on a one-for-one basis, subject to certain adjustments in each case. LTIP units may also, under certain circumstances, be convertible into or exchangeable for common shares (or other units that are convertible into or exchangeable for common shares). All subordinated performance units and DownREIT subordinated performance units were converted into OP units on July 1, 2024, in connection with the internalization of the PRO structure. See footnote(5) for additional discussion of subordinated performance units, DownREIT subordinated performance units, and LTIP units in the calculation of FFO and Core FFO per share and unit.
Reconciliation of Earnings Per Share - Diluted to FFO and Core FFO Per Share and Unit
(in thousands, except per share and unit amounts) (unaudited)
Three Months Ended December 31,
Year Ended December 31,
2024
2023
2024
2023
Earnings per share - diluted
$
0.15
$
0.72
$
1.18
$
1.48
Impact of the difference in weighted average number of shares(5)
(0.07
)
0.11
(0.46
)
0.23
Impact of GAAP accounting for noncontrolling interests, two-class method and treasury stock method(6)
0.07
—
0.55
—
Add real estate depreciation and amortization
0.35
0.44
1.49
1.73
Add (subtract) equity in losses (earnings) of unconsolidated real estate ventures
0.04
(0.02
)
0.12
(0.06
)
Add Company's share of FFO in unconsolidated real estate ventures
0.05
0.05
0.19
0.19
Subtract gain on sale of self storage properties
—
(0.52
)
(0.50
)
(0.52
)
FFO attributable to subordinated performance unitholders
—
(0.10
)
(0.17
)
(0.38
)
FFO per share and unit
0.59
0.68
2.40
2.67
Add acquisition costs
—
—
0.02
0.01
Add integration and executive severance costs
0.01
—
0.02
—
Add loss on early extinguishment of debt
—
—
—
0.01
Core FFO per share and unit
$
0.60
$
0.68
$
2.44
$
2.69
(5)
Adjustment accounts for the difference between the weighted average number of shares used to calculate diluted earnings per share and the weighted average number of shares used to calculate FFO and Core FFO per share and unit. Diluted earnings per share is calculated using the two-class method for the company's restricted common shares and the treasury stock method for certain unvested LTIP units, and assumes the conversion of vested LTIP units into OP units on a one-for-one basis and the hypothetical conversion of subordinated performance units, and DownREIT subordinated performance units into OP units, even though such units may have only been convertible into OP units (i) after a lock-out period and (ii) upon certain events or conditions. All outstanding subordinated performance units and DownREIT subordinated performance units were converted into OP units on July 1, 2024, in connection with the internalization of the PRO structure. The computation of weighted average shares and units for FFO and Core FFO per share and unit includes all restricted common shares and LTIP units that participate in distributions and excludes all subordinated performance units and DownREIT subordinated performance units because their effect has been accounted for through the allocation of FFO to the related unitholders based on distributions declared.
(6)
Represents the effect of adjusting the numerator to consolidated net income prior to GAAP allocations for noncontrolling interests, after deducting preferred share and unit distributions, and before the application of the two-class method and treasury stock method, as described in footnote(5).
Net Operating Income
(dollars in thousands) (unaudited)
Three Months Ended December 31,
Year Ended December 31,
2024
2023
2024
2023
Net income
$
26,131
$
108,056
$
183,270
$
236,988
(Subtract) add:
Management fees and other revenue
(12,381
)
(9,217
)
(42,726
)
(34,411
)
General and administrative expenses
12,629
14,956
57,606
59,281
Other
3,356
2,577
13,866
11,108
Depreciation and amortization
48,153
53,988
189,855
221,993
Interest expense
39,340
45,441
154,260
166,147
Equity in losses (earnings) of unconsolidated real estate ventures
5,284
(2,084
)
16,075
(7,553
)
Loss on early extinguishment of debt
—
—
323
758
Acquisition and integration costs
1,465
235
3,616
1,659
Income tax expense (benefit)
1,477
(1,265
)
3,767
1,590
Gain on sale of self storage properties
—
(63,910
)
(63,841
)
(63,910
)
Non-operating expense (income)
38
590
(314
)
1,016
Net Operating Income
$
125,492
$
149,367
$
515,757
$
594,666
EBITDA and Adjusted EBITDA
(dollars in thousands) (unaudited)
Three Months Ended December 31,
Year Ended December 31,
2024
2023
2024
2023
Net income
$
26,131
$
108,056
$
183,270
$
236,988
Add:
Depreciation and amortization
48,153
53,988
189,855
221,993
Company's share of unconsolidated real estate venture depreciation and amortization
5,609
4,011
20,719
17,083
Interest expense
39,340
45,441
154,260
166,147
Income tax expense (benefit)
1,477
(1,265
)
3,767
1,590
Loss on early extinguishment of debt
—
—
323
758
EBITDA
120,710
210,231
552,194
644,559
Add (subtract):
Acquisition costs
328
235
1,602
1,659
Effect of hypothetical liquidation at book value (HLBV) accounting for unconsolidated 2024 Joint Venture(1)
5,804
—
19,511
—
Gain on sale of self storage properties
—
(63,910
)
(63,841
)
(63,910
)
Integration and executive severance costs, excluding equity-based compensation(2)
779
—
1,879
—
Casualty-related recoveries(3)
—
—
—
(522
)
Equity-based compensation expense(4)
2,213
1,651
8,310
6,679
Adjusted EBITDA
$
129,834
$
148,207
$
519,655
$
588,465
(1)
Reflects the non-cash impact of applying HLBV to the 2024 Joint Venture, which allocates GAAP income (loss) on a hypothetical liquidation of the underlying joint venture at book value as of the reporting date.
(2)
Integration costs relate to expenses incurred as a part of the internalization of the PRO structure. Executive severance costs are recorded within the line items "General and administrative expenses" and "Non-operating (expense) income" in our consolidated statements of operations.
(3)
Casualty-related recoveries in 2023 relate to casualty-related expenses incurred during 2022 and are recorded in the line item "Other" within operating expenses in our consolidated statements of operations.
(4)
Equity-based compensation expense is a non-cash item recorded within general and administrative expenses and acquisition and integration costs in our consolidated statements of operations. Of the total amounts shown, for the three months and year ended December 31, 2024, $0.4 million relates to the internalization of our PRO structure and is included in acquisition and integration costs.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250226170102/en/
Contacts
National Storage Affiliates Trust
Investor/Media Relations
George Hoglund, CFAVice President - Investor [e-mail]