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6 days ago
- Business
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Centerspace Reports Second Quarter 2025 Financial & Operating Results and Updates 2025 Financial Outlook
MINNEAPOLIS, Aug. 4, 2025 /PRNewswire/ -- Centerspace (NYSE: CSR) announced today its financial and operating results for the three and six months ended June 30, 2025. The tables below show Net Loss, Funds from Operations ("FFO")1, and Core FFO1, all on a per diluted share basis, for the three and six months ended June 30, 2025; Same-Store Revenues, Expenses, and Net Operating Income ("NOI")1 over comparable periods; and Same-Store Weighted Average Occupancy, Lease Rate Growth, and Resident Retention for each of the three months ended June 30, 2025, March 31, 2025, and June 30, 2024 and the six months ended June 30, 2025 and 2024. Three Months Ended June 30,Six Months Ended June 30, Per Common Share2025202420252024 Net loss - diluted$ (0.87)$ (0.19)$ (1.09)$ (0.56) FFO - diluted(1)$ 1.24$ 1.23$ 2.42$ 2.39 Core FFO - diluted(1)$ 1.28$ 1.27$ 2.50$ 2.49 Year-Over-Year ComparisonSequential Comparison Same-Store Results(2)Q2 2025 vs. Q2 2024Q2 2025 vs. Q1 2025 Revenues2.7 %1.1 % Expenses2.4 %(1.3) % Net Operating Income ("NOI")(1)2.9 %2.6 % Three months endedSix months ended Same-Store Results(2)June 30, 2025March 31, 2025June 30, 2024June 30, 2025June 30, 2024 Weighted Average Occupancy96.1 %95.9 %95.5 %96.0 %95.1 % New Lease Rate Growth2.1 %(1.2) %3.2 %0.6 %1.9 % Renewal Lease Rate Growth2.6 %3.4 %3.5 %2.8 %3.5 % Blended Lease Rate Growth (3)2.4 %0.6 %3.4 %1.8 %2.7 % Retention Rate60.2 %49.2 %59.1 %56.8 %58.5 % (1) NOI, FFO, and Core FFO are non-GAAP financial measures. For more information on their usage and presentation, and a reconciliation to the most directly comparable GAAP measures, refer to "Non-GAAP Financial Measures and Reconciliations" and "Non-GAAP Financial Measures and Other Terms" in the Supplemental Financial and Operating Data below. (2) Same-store results are updated for annual composition change including acquisition, disposition, changes in held for sale classification, and repositioning activity. Refer to "Non-GAAP Financial Measures and Reconciliations" in Supplemental and Financial Operating Data within. (3) Blended lease rate growth is weighted by lease count. Overview of the Second Quarter Acquired Sugarmont, the Company's first apartment community in Salt Lake City, Utah, consisting of 341 homes for an aggregate purchase price of $149.0 million; Revenue for the second quarter of 2025 increased by $3.5 million or 5.4% to $68.5 million, compared to $65.0 million for the second quarter of 2024; Same-store revenues increased by 2.7% for the second quarter of 2025 compared to the second quarter of 2024, driving a 2.9% increase in same-store NOI compared to the same period of the prior year; Net loss was $0.87 per diluted share for the second quarter of 2025, compared to net loss of $0.19 per diluted share for the same period of the prior year; and Core FFO per diluted share increased 0.8% to $1.28 for the three months ended June 30, 2025, compared to $1.27 for the three months ended June 30, 2024. Balance Sheet At the end of the second quarter, Centerspace had $206.3 million of total liquidity on its balance sheet, consisting of $194.0 million available under the lines of credit and cash and cash equivalents of $12.4 million. Updated 2025 Financial Outlook Centerspace updated its 2025 financial outlook. For additional information, see S-17 of the Supplemental Financial and Operating Data for the quarter ended June 30, 2025 included at the end of this release. These ranges should be considered in their entirety. The table below reflects the updated Outlook for 2025 Updated Outlook for 2025Low High Low High Net loss per Share – diluted $(0.71) $(0.45) $2.50 $2.76 Same-Store Revenue 1.50 % 3.50 % 2.00 % 3.00 % Same-Store Expenses 2.00 % 4.00 % 1.00 % 2.50 % Same-Store NOI 1.25 % 3.25 % 2.50 % 3.50 % FFO per Share – diluted $4.73 $4.97 $4.70 $4.83 Core FFO per Share – diluted $4.86 $5.10 $4.88 $5.00 Additional assumptions: Same-store recurring capital expenditures of $1,150 per home to $1,200 per home Value-add expenditures of $16.0 million to $18.0 million Proceeds from dispositions of $210.0 million to $230.0 million Note: FFO, Core FFO. and NOI are non-GAAP financial measures. For more information on their usage and presentation and a reconciliation to the most comparable GAAP measure, please refer to "2025 Financial Outlook" in the Supplemental Financial and Operating Data within. Subsequent Events On July 29, 2025, Centerspace closed on the acquisition of Railway Flats a 420 home apartment community located in Loveland, CO, for $132.2 million which includes the assumption of $76.5 million mortgage debt. Earnings Call Live webcast and replay: Conference CallConference Call Replay Tuesday, August 5, 2025, at 10:00 AM ETReplay available until August 12, 2025 USA Toll Free 1-833-470-1428USA Toll Free 1-866-813-9403 International 1-404-975-4839International 1-929-458-6194 Canada Toll Free 1-833-950-0062Access Code 547256Access Code 134183 Supplemental Information Supplemental Operating and Financial Data for the quarter ended June 30, 2025 included herein ("Supplemental Information"), is available in the Investors section on Centerspace's website at or by calling Investor Relations at 952-401-6600. Non-GAAP financial measures and other capitalized terms, as used in this earnings release, are defined and reconciled in the Supplemental Financial and Operating Data, which accompanies this earnings release. About Centerspace Centerspace is an owner and operator of apartment communities committed to providing great homes by focusing on integrity and serving others. Founded in 1970, as of June 30, 2025, Centerspace owned 72 apartment communities consisting of 13,353 apartment homes located in Colorado, Minnesota, Montana, Nebraska, North Dakota, South Dakota, and Utah. Centerspace was named a top workplace for the sixth consecutive year in 2025 by the Minneapolis Star Tribune. For more information, please visit Forward-Looking Statements Certain statements in this press release and the Supplemental Operating and Financial Data are based on the Company's current expectations and assumptions, and are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements do not discuss historical fact, but instead include statements related to expectations, projections, intentions or other items related to the future. Forward-looking statements are typically identified by the use of terms such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," "will," "assumes," "may," "projects," "outlook," "future," and variations of such words and similar expressions. These forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause the actual results, performance, or achievements to be materially different from the results of operations, financial conditions, or plans expressed or implied by the forward-looking statements. Although the Company believes the expectations reflected in its forward-looking statements are based upon reasonable assumptions, it can give no assurance that the expectations will be achieved. Any statements contained herein that are not statements of historical fact should be deemed forward-looking statements. As a result, reliance should not be placed on these forward-looking statements, as these statements are subject to known and unknown risks, uncertainties, and other factors beyond the Company's control and could differ materially from actual results and performance. Such risks and uncertainties are detailed from time to time in filings with the Securities and Exchange Commission ("SEC"), including the "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2024, in its subsequent quarterly reports on Form 10-Q, and in other reports the Company files with the SEC from time to time. The Company assumes no obligation to update or supplement forward-looking statements that become untrue due to subsequent events. Contact Information Investor RelationsJosh KlaetschPhone: 952-401-6600Email: IR@ Marketing & MediaKelly WeberPhone: 952-401-6600Email: kweber@ View original content to download multimedia: SOURCE Centerspace
Yahoo
6 days ago
- Business
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National Storage Affiliates Trust Reports Second Quarter 2025 Results
GREENWOOD VILLAGE, Colo., August 04, 2025--(BUSINESS WIRE)--National Storage Affiliates Trust ("NSA" or the "Company") (NYSE: NSA) today reported the Company's second quarter 2025 results. Second Quarter 2025 Highlights Reported net income of $31.0 million for the second quarter of 2025, a decrease of 4.1% compared to the second quarter of 2024. Reported diluted earnings per share of $0.19 for the second quarter of 2025 compared to $0.16 for the second quarter of 2024. Reported core funds from operations ("Core FFO") of $74.4 million, or $0.55 per share for the second quarter of 2025, a decrease of 11.3% per share compared to the second quarter of 2024. Reported a decrease in same store net operating income ("NOI") of 6.1% for the second quarter of 2025 compared to the same period in 2024, driven by a 3.0% decrease in same store total revenues and a 4.6% increase in same store property operating expenses. Reported same store period-end occupancy of 85.0% as of June 30, 2025, a decrease of 220 basis points compared to June 30, 2024. Acquired one wholly-owned self storage property and one property that is considered an annex to an existing property for approximately $11.4 million and one of NSA's unconsolidated real estate ventures acquired one self storage property for approximately $18.0 million during the second quarter of 2025. Entered into an agreement to sell ten wholly-owned self storage properties for approximately $66.5 million. Eight of the properties were sold in June 2025, while the remaining two properties are classified as held for sale as of June 30, 2025 and were sold in July 2025. Highlights Subsequent to Quarter-End On July 22, 2025, one of NSA's unconsolidated real estate ventures acquired one self storage property for approximately $21.8 million. The venture financed the acquisition with capital contributions from the venture members, of which the Company contributed approximately $5.4 million. David Cramer, President and Chief Executive Officer, commented, "During the second quarter, we realized sequential improvement from the prior quarter in the level of contract rate, occupancy and our rent roll-down spread. However, these positives were outweighed by continued softness in storage demand primarily driven by low existing home sales and ongoing supply pressure, especially in our Sunbelt markets, which also impacted the pace of realizing the benefits from the internalization of our PRO structure. Further, the elevated use of concessions during the quarter that drove rental volume has a near-term negative impact on revenues. The combination of these factors weighed on same store NOI and Core FFO results for the quarter and was the primary driver of our revised guidance ranges." Mr. Cramer further commented, "While macroeconomic conditions have fallen short of our expectations, we are seeing positive momentum from our enhanced marketing and revenue management strategies, and we still expect to realize the full benefits from the internalization of our PRO structure." Financial Results ($ in thousands, except per share and unit data) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 Change 2025 2024 Change Net income $ 30,958 $ 32,280 (4.1) % $ 50,477 $ 127,368 (60.4) % Funds From Operations ("FFO")(1) $ 72,341 $ 70,118 3.2 % $ 143,319 $ 142,012 0.9 % Add acquisition costs 457 480 (4.8) % 860 987 (12.9) % Add integration and executive severance costs(2) 1,583 626 152.9 % 3,625 626 479.1 % Core FFO(1) $ 74,381 $ 71,224 4.4 % $ 147,804 $ 143,625 2.9 % Earnings per share - basic and diluted $ 0.19 $ 0.16 18.8 % $ 0.29 $ 0.85 (65.9) % FFO per share and unit(1) $ 0.54 $ 0.61 (11.5) % $ 1.06 $ 1.20 (11.7) % Core FFO per share and unit(1) $ 0.55 $ 0.62 (11.3) % $ 1.09 $ 1.22 (10.7) % (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) Executive severance costs relate to the three months ended June 30, 2024 and are recorded within the line items "General and administrative expenses" and "Non-operating income" in our consolidated statements of operations. Integration costs relate to expenses incurred as a part of the internalization of the PRO structure. Net income decreased $1.3 million for the second quarter of 2025 and $76.9 million for the six months ended June 30, 2025 ("year-to-date") as compared to the same periods in 2024. The year-to-date decrease in net income was primarily due to larger gains on the sale of self storage properties recognized in the first quarter of 2024. Additionally, the decrease in net income for both the second quarter of 2025 and year-to-date were a result of lower NOI, driven by property dispositions and negative same store NOI growth. These impacts for the second quarter of 2025 and year-to-date were partially offset by an increase in management fees and other revenue of $2.7 million and $5.8 million, respectively, and a decrease in general and administrative expenses of $3.4 million and $5.9 million, respectively, compared to the same periods in 2024. The decrease in FFO and Core FFO per share and unit for the second quarter of 2025 and year-to-date was primarily driven by a decrease in same store NOI and an increase in interest expense. These impacts were partially offset by decreased management fees paid to former PROs, reflected within general and administrative expenses, following the internalization of the PRO structure. Same Store Operating Results (771 Stores) ($ in thousands, except per square foot data) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 Change 2025 2024 Change Total revenues $ 168,975 $ 174,184 (3.0) % $ 337,632 $ 347,971 (3.0) % Property operating expenses 52,720 50,407 4.6 % 104,965 100,810 4.1 % Net Operating Income (NOI) $ 116,255 $ 123,777 (6.1) % $ 232,667 $ 247,161 (5.9) % NOI Margin 68.8 % 71.1 % (2.3) % 68.9 % 71.0 % (2.1) % Average Occupancy 84.2 % 86.6 % (2.4) % 84.1 % 86.2 % (2.1) % Average Annualized Rental Revenue Per Occupied Square Foot $ 15.68 $ 15.72 (0.3) % $ 15.68 $ 15.79 (0.7) % Year-over-year same store total revenue decreased 3.0% for the second quarter of 2025 and 3.0% year-to-date as compared to the same periods in 2024. The decrease for the second quarter was driven primarily by a 240 basis point decrease in average occupancy and a 0.3% decrease in average annualized rental revenue per occupied square foot. The year-to-date same store total revenue decrease was driven primarily by a 210 basis point decrease in average occupancy and a 0.7% decrease in average annualized rental revenue per occupied square foot. Markets which generated above portfolio average same store total revenue growth include: Portland, Houston and San Juan, PR. 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 4.6% for the second quarter of 2025 and 4.1% year-to-date as compared to the same periods in 2024. The increase was primarily driven by increases in marketing, repairs and maintenance, and property tax expense, partially offset by decreases in personnel and insurance costs. Investment and Disposition Activity During the second quarter, a joint venture between a subsidiary of NSA and a state pension fund advised by Heitman Capital Management, LLC (the "2023 Joint Venture") acquired one self storage property for approximately $18.0 million. The 2023 Joint Venture financed the acquisition with capital contributions from the venture members, of which NSA contributed approximately $4.5 million. During the second quarter, NSA invested $11.4 million in the acquisition of one wholly-owned self storage property and one annex to an existing property, consisting of approximately 87,000 rentable square feet configured in approximately 700 storage units. During the second quarter, NSA entered into an agreement to sell ten wholly-owned self storage properties consisting of approximately 663,000 rentable square feet configured in approximately 4,400 storage units for approximately $66.5 million, before disposition costs and credits. The agreement provides for separate disposition dates with eight self storage properties, consisting of approximately 580,000 rentable square feet configured in approximately 3,800 storage units for approximately $60.0 million, sold in June 2025, and two self storage properties, consisting of approximately 83,000 rentable square feet configured in approximately 600 storage units for approximately $6.5 million, sold in July 2025. NSA used the proceeds to pay down its revolving line of credit and for general corporate purposes. Balance Sheet As of June 30, 2025, NSA has approximately $544.1 million of available capacity on its $950.0 million revolving line of credit. Common Share Dividends On May 15, 2025, NSA's Board of Trustees declared a quarterly cash dividend of $0.57 per common share. The second quarter 2025 dividend was paid on June 30, 2025 to shareholders of record as of June 13, 2025. 2025 Guidance The following table outlines NSA's updated and prior Core FFO guidance estimates and related assumptions for the year ended December 31, 2025. The Company's revisions to Core FFO per share estimates are primarily driven by lower same store growth assumptions. Current Ranges for FullYear 2025 Prior Ranges for Full Year2025 ActualResultsfor FullYear 2024 Low High Low High Core FFO per share(1) $2.17 $2.23 $2.30 $2.38 $2.44 Same store operations(2) Total revenue growth (3.0)% (2.0)% (1.25)% 1.25% (3.0)% Property operating expenses growth 3.25% 4.25% 3.0% 4.0% 3.7% NOI growth (5.75)% (4.25)% (2.8)% 0.0% (5.5)% General and administrative expenses General and administrative expenses (excluding equity-based compensation), in millions $42.0 $44.0 $45.5 $47.5 $49.7 Equity-based compensation, in millions $8.0 $8.5 $8.0 $8.5 $7.9 Management fees and other revenue, in millions $49.0 $51.0 $49.5 $51.5 $42.7 Core FFO from unconsolidated real estate ventures, in millions $20.5 $22.5 $21.5 $23.5 $24.2 Acquisitions - consolidated and joint venture (at share), in millions(3) $50.0 $100.0 $100.0 $300.0 $101.8 Dispositions - consolidated and joint venture (at share), in millions(3) $100.0 $300.0 $100.0 $300.0 $273.1 Current Ranges for Full Year 2025 Prior Ranges for Full Year 2025 Low High Low High Earnings per share - diluted $0.71 $0.74 $0.63 $0.69 Impact of the difference in weighted average number of shares and GAAP accounting for noncontrolling interests, two-class method and treasury stock method (0.17) (0.22) (0.14) (0.19) Add real estate depreciation and amortization 1.43 1.46 1.47 1.50 Add (subtract) equity in losses (earnings) of unconsolidated real estate ventures 0.08 0.09 0.13 0.14 Add NSA's share of FFO of unconsolidated real estate ventures 0.15 0.17 0.16 0.17 Less gain on sale of self storage properties (0.08) (0.08) — — Add acquisition costs and NSA's share of unconsolidated real estate venture acquisition costs 0.01 0.02 0.01 0.02 Add integration costs 0.04 0.05 0.04 0.05 Core FFO per share and unit $2.17 $2.23 $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 and as exhibit 99.1 to the Company's Form 8-K furnished to the SEC on August 4, 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 Tuesday, August 5, 2025 to discuss its second quarter 2025 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 Conference Call and Webcast: Date/Time: Tuesday, August 5, 2025, 1:00 pm ET Webcast available at: 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 Upcoming Industry Conference NSA management is scheduled to participate in the 2025 BofA Securities Global Real Estate Conference on September 9-11, 2025 in New York City, New York. 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 June 30, 2025, the Company held ownership interests in and operated 1,067 self storage properties, located in 37 states and Puerto Rico with approximately 69.7 million rentable square feet, excluding two properties classified as held for sale, that were sold to a third party in July 2025. 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 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 and disposition of properties, including those under contract and the Company's ability to execute on its acquisition pipeline; the timing of acquisitions or dispositions under contract; the Company's ability to realize the benefits from the internalization of the PRO structure and portfolio optimization strategy; and the Company's guidance estimates for the year ending 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 June 30, Six Months Ended June 30, 2025 2024 2025 2024 REVENUE Rental revenue $ 169,838 $ 174,369 $ 339,313 $ 354,751 Other property-related revenue 6,774 6,557 13,518 13,249 Management fees and other revenue 12,230 9,522 24,365 18,596 Total revenue 188,842 190,448 377,196 386,596 OPERATING EXPENSES Property operating expenses 55,627 52,201 110,731 106,895 General and administrative expenses 12,804 16,189 25,949 31,863 Depreciation and amortization 47,612 46,710 95,728 94,041 Other 4,500 3,375 8,976 6,867 Total operating expenses 120,543 118,475 241,384 239,666 OTHER (EXPENSE) INCOME Interest expense (41,269 ) (37,228 ) (81,744 ) (75,345 ) Equity in (losses) of unconsolidated real estate ventures (3,945 ) (4,449 ) (9,684 ) (6,079 ) Acquisition and integration costs (2,040 ) (480 ) (4,485 ) (987 ) Non-operating income 462 337 822 435 Gain on sale of self storage properties 9,571 2,668 10,996 63,841 Other expense, net (37,221 ) (39,152 ) (84,095 ) (18,135 ) Income before income taxes 31,078 32,821 51,717 128,795 Income tax expense (120 ) (541 ) (1,240 ) (1,427 ) Net income 30,958 32,280 50,477 127,368 Net income attributable to noncontrolling interests (11,487 ) (15,218 ) (18,012 ) (51,279 ) Net income attributable to National Storage Affiliates Trust 19,471 17,062 32,465 76,089 Distributions to preferred shareholders (5,114 ) (5,110 ) (10,228 ) (10,220 ) Net income attributable to common shareholders $ 14,357 $ 11,952 $ 22,237 $ 65,869 Earnings per share - basic and diluted $ 0.19 $ 0.16 $ 0.29 $ 0.85 Weighted average shares outstanding - basic and diluted 76,474 75,160 76,423 77,698 National Storage Affiliates Trust Consolidated Balance Sheets (dollars in thousands, except per share amounts) (unaudited) June 30, December 31, 2025 2024 ASSETS Real estate Self storage properties $ 5,826,852 $ 5,864,134 Less accumulated depreciation (1,131,235 ) (1,051,638 ) Self storage properties, net 4,695,617 4,812,496 Cash and cash equivalents 26,121 50,408 Restricted cash 1,824 345 Debt issuance costs, net 4,244 5,632 Investment in unconsolidated real estate ventures 231,360 246,193 Other assets, net 195,453 218,482 Assets held for sale, net 6,000 — Operating lease right-of-use assets 20,666 20,906 Total assets $ ... 5,181,285 $ 5,354,462 LIABILITIES AND EQUITY Liabilities Debt financing $ 3,402,659 $ 3,449,087 Accounts payable and accrued liabilities 93,613 98,657 Interest rate swap liabilities 4,041 471 Operating lease liabilities 22,683 22,888 Deferred revenue 20,607 20,012 Total liabilities 3,543,603 3,591,115 Equity Preferred shares of beneficial interest, par value $0.01 per share. 50,000,000 authorized, 14,697,845 and 14,695,458 issued (in series) and outstanding at June 30, 2025 and December 31, 2024, respectively, at liquidation preference 340,955 340,895 Common shares of beneficial interest, par value $0.01 per share. 250,000,000 shares authorized, 76,558,740 and 76,344,661 shares issued and outstanding at June 30, 2025 and December 31, 2024, respectively 765 763 Additional paid-in capital 1,249,996 1,249,426 Distributions in excess of earnings (595,627 ) (530,652 ) Accumulated other comprehensive income 5,993 15,548 Total shareholders' equity 1,002,082 1,075,980 Noncontrolling interests 635,600 687,367 Total equity 1,637,682 1,763,347 Total liabilities and equity $ 5,181,285 $ 5,354,462 Reconciliation of Net Income to FFO and Core FFO (in thousands, except per share and unit amounts) (unaudited) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Net income $ 30,958 $ 32,280 $ 50,477 $ 127,368 Add (subtract): Real estate depreciation and amortization 47,137 46,339 94,798 93,302 Equity in losses of unconsolidated real estate ventures 3,945 4,449 9,684 6,079 Company's share of FFO in unconsolidated real estate ventures 5,440 6,177 10,492 11,862 Gain on sale of self storage properties (9,571 ) (2,668 ) (10,996 ) (63,841 ) Distributions to preferred shareholders and unitholders (5,568 ) (5,568 ) (11,136 ) (11,136 ) FFO attributable to subordinated performance units(1) — (10,891 ) — (21,622 ) FFO attributable to common shareholders, OP unitholders, and LTIP unitholders 72,341 70,118 143,319 142,012 Add (subtract): Acquisition costs 457 480 860 987 Integration and executive severance costs(2) 1,583 626 3,625 626 Core FFO attributable to common shareholders, OP unitholders, and LTIP unitholders $ 74,381 $ 71,224 $ 147,804 $ 143,625 Weighted average shares and units outstanding - FFO and Core FFO:(3) Weighted average shares outstanding - basic 76,474 75,160 76,423 77,698 Weighted average restricted common shares outstanding 26 21 24 22 Weighted average OP units outstanding 52,115 37,644 52,131 37,638 Weighted average DownREIT OP unit equivalents outstanding 5,769 2,120 5,769 2,120 Weighted average LTIP units outstanding 888 673 906 683 Total weighted average shares and units outstanding - FFO and Core FFO 135,272 115,618 135,253 118,161 FFO per share and unit $ 0.54 $ 0.61 $ 1.06 $ 1.20 Core FFO per share and unit $ 0.55 $ 0.62 $ 1.09 $ 1.22 (1) Amounts represent distributions declared for subordinated performance unitholders and DownREIT subordinated performance unitholders for the periods presented. (2) Executive severance costs relate to the three months ended June 30, 2024 and are recorded within the line items "General and administrative expenses" and "Non-operating income" in our consolidated statements of operations. Integration costs relate to expenses incurred as a part of the internalization of the PRO structure. (3) 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(4) 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 June 30, Six Months Ended June 30, 2025 2024 2025 2024 Earnings per share - diluted $ 0.19 $ 0.16 $ 0.29 $ 0.85 Impact of the difference in weighted average number of shares(4) (0.08 ) (0.06 ) (0.12 ) (0.29 ) Impact of GAAP accounting for noncontrolling interests, two-class method and treasury stock method(5) 0.08 0.13 0.12 0.42 Add real estate depreciation and amortization 0.35 0.40 0.70 0.79 Add equity in losses of unconsolidated real estate ventures 0.03 0.04 0.07 0.05 Add Company's share of FFO in unconsolidated real estate ventures 0.04 0.05 0.08 0.10 Subtract gain on sale of self storage properties (0.07 ) (0.02 ) (0.08 ) (0.54 ) FFO attributable to subordinated performance unitholders — (0.09 ) — (0.18 ) FFO per share and unit 0.54 0.61 1.06 1.20 Add acquisition costs — — — 0.01 Add integration and executive severance costs 0.01 0.01 0.03 0.01 Core FFO per share and unit $ 0.55 $ 0.62 $ 1.09 $ 1.22 (4) 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. (5) 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(4). Net Operating Income (dollars in thousands) (unaudited) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Net income $ 30,958 $ 32,280 $ 50,477 $ 127,368 (Subtract) add: Management fees and other revenue (12,230 ) (9,522 ) (24,365 ) (18,596 ) General and administrative expenses 12,804 16,189 25,949 31,863 Depreciation and amortization 47,612 46,710 95,728 94,041 Other 4,500 3,375 8,976 6,867 Interest expense 41,269 37,228 81,744 75,345 Equity in losses of unconsolidated real estate ventures 3,945 4,449 9,684 6,079 Acquisition and integration costs 2,040 480 4,485 987 Non-operating income (462 ) (337 ) (822 ) (435 ) Gain on sale of self storage properties (9,571 ) (2,668 ) (10,996 ) (63,841 ) Income tax expense 120 541 1,240 1,427 Net Operating Income $ 120,985 $ 128,725 $ 242,100 $ 261,105 EBITDA and Adjusted EBITDA (dollars in thousands) (unaudited) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Net income $ 30,958 $ 32,280 $ 50,477 $ 127,368 Add: Depreciation and amortization 47,612 46,710 95,728 94,041 Company's share of unconsolidated real estate venture depreciation and amortization 5,217 5,141 10,628 9,693 Interest expense 41,269 37,228 81,744 75,345 Income tax expense 120 541 1,240 1,427 EBITDA 125,176 121,900 239,817 307,874 Add (subtract): Acquisition costs 457 480 860 987 Effect of hypothetical liquidation at book value (HLBV) accounting for unconsolidated 2024 Joint Venture(1) 4,167 5,485 9,548 8,249 Gain on sale of self storage properties (9,571 ) (2,668 ) (10,996 ) (63,841 ) Integration and executive severance costs, excluding equity-based compensation(2) 458 223 1,388 223 Equity-based compensation expense(3) 3,138 2,331 6,217 4,186 Adjusted EBITDA $ 123,825 $ 127,751 $ 246,834 $ 257,678 (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) Executive severance costs relate to the three months ended June 30, 2024 and are recorded within the line items "General and administrative expenses" and "Non-operating income" in our consolidated statements of operations. Integration costs relate to expenses incurred as a part of the internalization of the PRO structure. (3) 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. For the three and six months ended June 30, 2025, $1.1 million and $2.2 million, respectively, relates to the internalization of the PRO structure and is included in acquisition and integration costs. View source version on Contacts National Storage Affiliates TrustInvestor/Media RelationsGeorge Hoglund, CFAVice President - Investor Relations720.630.2160ghoglund@ 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
Yahoo
01-08-2025
- Business
- Yahoo
Sun Communities Inc (SUI) Q2 2025 Earnings Call Highlights: Strong Financial Performance and ...
Core FFO per Share: $1.76, exceeding the high end of guidance. Debt Reduction: Approximately $3.3 billion of debt repaid. Shareholder Returns: Over $830 million returned through special cash distribution and share repurchases. Regular Annual Distribution Rate: Increased by over 10%. North American Same Property NOI Growth: 4.9% in the second quarter. Manufactured Housing Same Property NOI Growth: 7.7% with occupancy up to 97.6%. RV Same Property NOI: Declined 1.1% with a 0.9% revenue increase offset by a 3.1% expense increase. UK Same Property NOI Growth: 10.2% with revenue up 9.5%. Total Debt Balance: $4.3 billion with a weighted average interest rate of 3.4%. Net Debt to Trailing 12 Month Recurring EBITDA Ratio: 2.9 times at quarter end. Share Repurchases: Approximately 2.4 million shares repurchased for $300 million. One-Time Cash Distribution: $4 per share, totaling $521 million. Credit Rating Upgrades: S&P Global to 'BBB+' and Moody's to Baa2. Full Year 2025 FFO per Share Guidance: Raised to $6.51 to $6.67. North American Same Property NOI Growth Guidance: Increased to 4.7% at the midpoint. Manufactured Housing Same Property NOI Growth Guidance: Expected to grow 7.5% at the midpoint. UK Same Property NOI Growth Guidance: Raised to 2.3% at the midpoint. Warning! GuruFocus has detected 8 Warning Signs with SUI. Release Date: July 31, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Sun Communities Inc (NYSE:SUI) completed the sale of Safe Harbor Marinas, repositioning itself as a pure play owner and operator of manufactured housing and RV communities. The company paid down approximately $3.3 billion of debt, significantly improving its balance sheet. Sun Communities Inc (NYSE:SUI) returned over $830 million to shareholders through a special cash distribution and share repurchases. The company reported core FFO per share of $1.76 for the quarter, exceeding the high end of guidance. Sun Communities Inc (NYSE:SUI) received credit rating upgrades from S&P Global and Moody's, reflecting its leveraging progress and balance sheet strength. Negative Points The RV segment experienced a decline in same property NOI by 1.1%, driven by a 3.1% increase in expenses. The company faces challenges in the transient RV business, with a projected decline of over 9% in transient RV revenue for the year. Sun Communities Inc (NYSE:SUI) recorded impairment charges related to a strategic shift away from developing new greenfield projects. The UK portfolio faced increased expenses due to a national minimum wage increase, partially offsetting revenue gains. There is uncertainty regarding the full deployment of 1031 exchange proceeds, with potential tax implications if not fully utilized. Q & A Highlights Q: Can you discuss the release of funds into unrestricted cash and any tax implications related to 1031 acquisitions? A: Fernando Castro-Caratini, CFO, explained that there are no expected adverse tax impacts from releasing funds out of the 1031 exchanges. Initially, $1 billion was allocated for potential 1031 transactions, with $565 million identified for acquisitions, allowing $431 million to be released into unrestricted cash. The company is under no obligation to complete transactions that don't align with their strategy and is evaluating other strategies to maximize the value of these proceeds. Q: What trends are you seeing in the transient RV business, and what steps have you taken to enhance it? A: John McLaren, President, noted that the transient RV business is performing better than expected due to proactive measures taken after Q1. The company has been converting transient sites to annual sites, which has mitigated some revenue headwinds. They continue to flex operating expenses and focus on annual RV site growth to enhance revenue. Q: Can you explain the economics of the UK ground lease purchases and their strategic flexibility? A: Fernando Castro-Caratini, CFO, stated that the transaction creates flexibility by converting leasehold interests into freehold ownership, eliminating future rent escalations, and improving long-term economics. The ground lease repurchases, totaling nearly $200 million, blend to about a 4.25% yield, enhancing strategic flexibility. Q: How are you managing the restructuring process and expense savings? A: John McLaren, President, highlighted that the company is focused on balancing expense discipline with top-line growth. They have expanded savings beyond $17 million in the first half, primarily in payroll and utilities, and through procurement platform standardization. The company continues to focus on MH performance, retention, occupancy gains, and revenue growth. Q: What led to the decision to hire Charles Young as the next CEO, and what will be his role? A: Gary Shiffman, Chairman and CEO, explained that Charles Young was chosen for his 25 years of leadership experience in real estate operations and investment management. His track record in the residential REIT asset class makes him uniquely suited to lead Sun Communities through its next growth phase. Shiffman will support Young's success, leveraging his 40 years of industry experience. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. 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
Yahoo
01-08-2025
- Business
- Yahoo
Whitestone REIT (WSR) Q2 2025 Earnings Call Highlights: Strong Financial Performance and ...
Core FFO per Share: Increased by 5.4% year over year to $0.26 for the quarter and $0.51 for the six months. Occupancy Rate: Grew 100 basis points sequentially from Q1 to 93.9%. Average Base Rent per Lease Square Foot: Increased by 5.3% year over year. Same Store NOI Growth: 2.5% for the quarter and 3.9% for the six months. Leasing Spreads: 17.9% for the quarter, with new leases at 41.4% and renewals at 15.2%. Property Transactions: Acquisitions totaled $153 million and dispositions approximately $126 million since Q4 2022. Debt to EBITDA: Improved to 7.2 times from 7.8 times year over year. Cash and Credit Facility: $5.3 million in cash and $69 million available under the credit facility at the end of the quarter. Dividend Payout: Approximately 50% of FFO, with plans to grow in conjunction with earnings growth. Warning! GuruFocus has detected 7 Warning Signs with WSR. Release Date: July 31, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Whitestone REIT (NYSE:WSR) reported a 5.4% year-over-year increase in core FFO per share, demonstrating strong financial performance. The company achieved a 100 basis point sequential increase in occupancy from Q1, reaching 93.9%. Whitestone REIT (NYSE:WSR) successfully executed two strategic acquisitions in high-growth markets, enhancing its portfolio. The company is on track to meet its 2025 full-year guidance, reaffirming its core FFO per share and same-store NOI growth targets. Whitestone REIT (NYSE:WSR) has a robust capital recycling program, with $153 million in acquisitions and $126 million in dispositions since Q4 2022, strengthening its portfolio. Negative Points Interest expenses have increased slightly due to acquisitions preceding dispositions, impacting financial performance. The anticipated benefits from new tenants like Pickler are expected to be minimal in the current year due to early concession periods. The company faces tough comparisons in the upcoming quarters, which may challenge its ability to meet forecasts. Whitestone REIT (NYSE:WSR) has a relatively high debt to EBITDA ratio, although it has improved from the previous year. The timing of acquisitions and dispositions may affect leverage and financial flexibility in the short term. Q & A Highlights Q: What gives you confidence in meeting your forecast for the back part of the year despite tough comps? A: David K. Holeman, CEO, explained that detailed forecasting and tenant activities, such as increasing occupancy by 100 basis points from Q1, contribute to future same-store NOI growth. Scott Hogan, CFO, added that large tenants under contract are in free rent periods, which will positively impact future quarters. Q: Will the Pickler contribute to the second half of the year's performance? A: David K. Holeman, CEO, stated that Pickler is expected to commence in the back half of the year, but early concession periods mean minimal impact on same-store NOI this year. However, future quarters will see significant contributions from such activities. Q: Can you provide more details on the $40 million of acquisitions and dispositions? A: David K. Holeman, CEO, mentioned that they are actively evaluating properties for value and opportunities. They have several activities underway and expect to achieve around $40 million in acquisitions and dispositions, continuing their strategy of upgrading the portfolio. Q: What is the upside potential in the two acquisitions announced in the second quarter? A: David K. Holeman, CEO, highlighted the quality of neighborhoods and locations for both acquisitions in Fort Worth and Austin. These areas have strong household incomes and traffic growth, with opportunities to improve rents and tenant mix, leveraging their model to enhance property value. Q: How are leasing spreads trending, and what are the expectations for the second half of the year? A: J. Scott Hogan, CFO, noted that new leases are coming in at higher rents, while renewal leasing spreads are slightly down but with lower tenant improvement and leasing commission costs. Overall, leasing spreads are expected to remain strong, with the second half typically being a stronger leasing season. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data
Yahoo
31-07-2025
- Business
- Yahoo
Essex Property Trust Inc (ESS) Q2 2025 Earnings Call Highlights: Strong Core FFO Performance ...
Core FFO Outperformance: $0.07 above guidance in Q2 2025. Blended Rate Growth: 3% for the same store portfolio in Q2 2025. Same-Property Revenue Growth: Increased midpoint by 15 basis points to 3.15% for the full year. Same-Property Expense Reduction: Midpoint reduced by 50 basis points to 3.25% due to lower property taxes. Same-Property NOI Growth: Expected to grow 3.1% at the midpoint, a 40 basis point improvement from original guidance. Core FFO Per Share Guidance: Increased by $0.10 to $15.91 for the full year. Q3 Core FFO Guidance: Forecasted at $3.94 at the midpoint. Net Debt to EBITDA: 5.5 times. Available Liquidity: $1.5 billion. Term Loan: $300 million issued, $150 million drawn at 4.1% fixed rate through April 2030. Line of Credit: Expanded to $1.5 billion, maturity extended to 2030. Warning! GuruFocus has detected 9 Warning Signs with ESS. Release Date: July 30, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Essex Property Trust Inc (NYSE:ESS) reported a $0.07 core FFO outperformance in the second quarter. The company increased its same property and core FFO guidance for the year. Suburban markets like San Mateo and San Jose showed strong performance with 5.6% and 4.4% blended rate growth, respectively. Essex Property Trust Inc (NYSE:ESS) has successfully invested in Northern California, achieving yields in the mid to high 4% range. The company has enhanced its balance sheet flexibility with a $300 million delayed draw term loan and expanded line of credit. Negative Points Los Angeles underperformed with only 1.3% blended rent growth due to elevated supply and delinquency challenges. Southern California, which constitutes 40% of the portfolio, has been a drag on overall performance. The company expects a sequential decline in core FFO for the third quarter due to elevated operating expenses. Essex Property Trust Inc (NYSE:ESS) is scaling back its mezzanine platform, which could lead to temporary headwinds in core FFO growth. The company anticipates a deceleration in blended rent growth in the second half of the year due to normal seasonality. Q & A Highlights Q: Can you elaborate on the weaker blended pricing in Los Angeles and any specific impacts like fire ordinances? A: Angela Kleiman, CEO, explained that Los Angeles underperformed due to heavier supply in the first half and slower delinquency recovery, not due to fire ordinances. The soft demand environment in Southern California, mirroring the US economy, also contributed. However, supply is expected to decline in the second half, which should be beneficial. Q: What is driving the strength in Northern California, and is it being fully appreciated? A: Angela Kleiman noted that Northern California is performing slightly better than expected, with job postings gradually increasing. The blended lease rates, when considering all leases, show a stronger performance than reported. The seasonal peak for rents has been reached, and normal deceleration is expected unless there's a significant macroeconomic improvement. Q: Why is Essex scaling back its mezzanine platform despite a successful track record? A: CFO Barbara Pak stated that the mezzanine book had grown too large, creating earnings volatility. The focus is shifting to stabilized multifamily assets for better cash flow and NAV growth. The structured finance book is expected to be less than 4% of core FFO, with a reduction in earnings headwind anticipated as investments are repaid. Q: How are concessions in Los Angeles affecting the market? A: Angela Kleiman mentioned that concessions in Los Angeles remain elevated compared to the rest of the portfolio, slightly higher than last year. However, they are not dramatically worsening or improving. Q: What are the capital allocation priorities for Essex, and how does the commercial paper program fit in? A: Rylan Burns, CIO, emphasized that fee simple acquisitions are a top priority due to current cost of capital and development risks. The commercial paper program offers a 70 basis point savings over the line of credit and will be used similarly as a temporary bridge to permanent financing. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data
