Latest news with #NationalStorageAffiliatesTrust
Forbes
26-05-2025
- Business
- Forbes
What Does Wall Street Hate About These Massive Dividends?
Flag hanging on a facade Wall Street analysts have 'Buy' ratings on 388 stocks in the S&P 500. That's over 76% of the index! Thank you, suits, for the curation. No, seriously. We contrarians are going to comb through the Holds and, even, the lone Sell. Analyst optimism is the norm. Analysts need access, companies provide them with access. One hand washes the other, thus it is rare to see unfavorable ratings on stocks. The problem with a Buy rating is that there is nobody left to upgrade the stock. Every delta is a downgrade. Contrast this with the Holds and Sells—it can only get better from here! The only analyst move is an upgrade. So why not 'front run' these upcoming bandwagon calls? Let's look at four disliked stocks yielding between 6.6% and 16.5%. These big payers aren't receiving any love from the suits—which is often a perfect time to buy. National Storage Affiliates Trust (NSA) is a self-storage real estate investment trust (REIT) with 1,075 self-storage properties in 41 states and Puerto Rico. Self-storage is generally recession-resistant. In good times, people accumulate stuff, and that stuff has to go somewhere, and that somewhere is storage units. In bad times, consumers don't want to get rid of all their stuff, even if they must downsize. So, they pile belongings into storage units. Now self-storage itself has boom-and-bust cycles. We just saw this during the COVID-era housing explosion and subsequent dry spell. NSA has historically been a competent operator. It handled the self-storage downturn admirably; move-in rates are significantly improving, and 'street rates' (the prices a customer would see if they walked into a facility off the street) are headed considerably higher. Wall Street's dour consensus is not surprising (just one Buy vs. 10 Holds and four Sells). Vital metrics like same-store net operating income (SSNOI) and funds from operations (FFO) growth have trailed peers of late. And while the 6%+ yield is better than what we can get from most self-storage names, NSA's payout represents 97% of its own 2025 FFO estimates. That's very tight coverage. NSA might be a more enticing bet at a better price. But the stock trades at roughly 15 times those estimates—fair, but hardly a deal right now. CNA Financial (CNA) is one of the largest commercial property and casualty (P&C) insurers in the U.S. It's also an oddball—it's technically publicly traded, but 90% of the company belongs to conglomerate Loews (L). Nonetheless, we can still buy a piece, and that piece will earn us a fat 8%+. Though maybe not in as smooth a fashion as we'd like. CNA is an increasingly common variety of company that pays both regular dividends and regular special dividends. In CNA's case, it pays a (rising) regular dividend that's currently at 46 cents per share, which is good for 3.9% in yield right now. It has also paid a special dividend in March each year for the past decade; 2025's two bucks per share added another 4.2%. Investors focused on retirement income can't wait around on 'lumpy' distributions like that—consistent payouts are a must, and monthly dividends are ideal. But it's still a great dividend for anyone not relying on their IRA yet. It's also a responsible payout system. A base-plus-special format allows companies to pay big when they can, and to hang on to cash when they can't, all while providing some sort of baseline income for shareholders. And that's a godsend for insurers, where profits are inconsistent even among the best operators. Consider that CNA, which is a high-quality P&C firm, hasn't enjoyed two consecutive years of profit growth since 2016-17. So for insurers, we just want to see the arrow pointed in the right direction. And in CNA's case, it has been for a long time. CNA Uptrend CNA Financial has a bearish consensus rating, but in fact, there is no bearish consensus—just a lone bearish wolf. CNA has one covering analyst, and that analyst says the stock is a Sell. Sometimes, a lack of analysts can be a negative statement in and of itself; the pros sometimes drop coverage because they'd rather stop covering a company rather than call it a dud. But in some cases, analyst firms are just tightening up coverage amid scarcer resources that they want to allocate to spicier businesses than, say, insurance, and I think that's the case with CNA. If the name Cricut (CRCT) doesn't ring a bell, talk to someone who shops at Michaels or Jo-Ann Fabrics. The company's namesake machines let users turn their ideas into professional-looking handmade goods: mugs, cards, T-shirts, even large-scale interior decorations. Cricut also calls itself a 'creativity platform.' It has software that integrates its machines with design apps (including its own Cricut Joy App), and a pair of subscription plans that offer additional fonts, images and more. And believe it or not, this is a truly global name spanning six continents. (Sorry, Antarctica.) I featured this stock last year when I examined some fresh-faced dividends. In May 2024, in the midst of a multiyear collapse in its top and bottom lines, it shocked some investors by both announcing a substantial 40-cent-per-share special dividend, and initiating a 10-cent regular semiannual dividend. It followed that up by continuing the regulars this year and announcing a 75-cent special, payable in July. While that combined payout is several times bigger than expected adjusted earnings this year, CRCT does have the cash flows to manage it. But the confidence management is projecting with these dividends seems to smack in the face of what Circuit is facing. While CRCT managed to finally stem the bleeding and grow the bottom line last year, demand and engagement trends are still pointed in the wrong direction (revenues actually sagged another 7% in 2024), and promotional spending remains high. Moreover, profits are expected to decline in each of the next two years, and tariffs could further weigh on the company, which relies heavily on international manufacturing, especially in southeast Asia. The pros are negative—CRCT has three Sell calls and a Hold right now—and I'm inclined to agree. A whopper of a dividend aside, there's little to suggest a change in Cricut's growth prospects is on the horizon. Goldman Sachs BDC (GSBD) is a business development company (BDC) that targets companies bringing in between $5 million and $75 million in annual EBITDA (earnings before interest, taxes, depreciation and amortization). Its typical investment ranges between $25 million and $75 million, and it deals almost exclusively in debt. I singled out Goldman Sachs BDC back in September for its hated status, and that hasn't changed, with analysts issuing three Holds, one Sell, and a couple of No Opinions (they'll provide earnings and other financial estimates but won't make a call on the stock). Investors are naturally drawn to this BDC for an obvious reason: the connection to Goldman Sachs (GS). GSBD isn't shy about this, saying that management may 'draw upon the vast resources of Goldman Sachs to assist in the evaluation of potential investment opportunities.' But as I said in September: That's also still the case—indeed, Goldman Sachs BDC has only continued to underperform. GSBD Underperforms In fact, quality issues—namely high non-accruals (loans that are delinquent for a prolonged period, usually 90 days) and dropping net investment income (NII)—finally forced Goldman Sachs BDC to cut its regular dividend by nearly 30% in February. Bizarrely, Goldman Sachs is now paying out more than it used to. At least for the moment. GSBD cut its regular dividend from 45 cents per share to 32 cents, starting in Q1. But at the same time, it also announced 16-cent special dividends for Q1, Q2, and Q3—effectively 48 cents per share in each of those three quarters. On top of that, in May, it announced an additional 5-cent supplemental dividend, bringing the total payout for Q2 to 53 cents per share. Maybe Goldman just bought itself some optionality. And heck, GSBD isn't all warts. The BDC says just four of its 163 portfolio companies should be affected by tariffs, the stock trades at a healthy 17% discount to NAV right now, and based on all the dividends promised for 2025 (four 32-cent regulars, three 16-cent specials, and the 5-cent Q2 supplemental), it yields a mouth-watering 16.5%—with the potential for more if it issues a Q4 special or any additional supplementals. Brett Owens is Chief Investment Strategist for Contrarian Outlook. For more great income ideas, get your free copy his latest special report: How to Live off Huge Monthly Dividends (up to 8.7%) — Practically Forever. Disclosure: none
Yahoo
06-05-2025
- Business
- Yahoo
National Storage Affiliates Trust (NSA): A Top Dividend Challenger in 2025
We recently published a list of Dividend Challengers 2025: Top 25. In this article, we are going to take a look at where National Storage Affiliates Trust (NYSE:NSA) stands against other dividend challenger stocks. Dividend Challengers refers to US-listed companies that have raised their dividends every year for a minimum of five, and less than ten, consecutive years. These companies have demonstrated a relatively recent commitment to sharing profits with shareholders through dividends. Investors usually gravitate towards such firms because historically, dividend growers outperform the returns of the broader market. Moreover, most of these firms have a track record of exhibiting lower price volatility, which makes them favorable to those looking for stable income. Investor interest in stocks with reliable dividend growth remains strong due to long-term investment potential. As a result, many of these financially sound firms become targets for investors looking to manage risk without sacrificing growth. The Fidelity Equity-Income Fund and the Fidelity Global Equity Income Fund portfolios, managed by Ramona Persaud, seek stable dividend-paying firms with attractive valuations. She pointed out that declining interest rates tend to make dividend stocks more appealing than bonds due to relatively attractive yields. Indeed, Persaud argued lower rates could foster a more broad-based rally for stocks beyond the market gains, which have been largely concentrated on a handful of large-cap growth names. Her focus is on well-performing firms with reliable cash flows and strong, growing dividends. According to analysts, investors can adopt a strategy that balances both income and growth by focusing on dividend growers. Historically, they have shown less volatility and often outperformed the broader market, including benchmarks like the S&P Equal Weight Index. A report from Guggenheim found that between May 2005 and December 2024, companies that initiated or raised their dividends achieved an average annual return of 10.5%, compared to just 5.5% for those that reduced or suspended payouts. By contrast, the overall market averaged a 10.4% return during the same period, slightly lagging behind the dividend growers. The report also emphasized that dividend growth strategies tend to perform well across different market environments, both bullish and bearish. This makes them a compelling option for investors seeking long-term returns while aiming to protect their portfolios during downturns. Bank of America also noted that dividend-paying stocks helped stabilize portfolios during the turbulent month of March. As trade policy uncertainty under President Donald Trump rattled markets, value and dividend-oriented names held up better. In an April 11 report, BofA's quant strategist Nigel Tupper highlighted these trends and pointed to several top-performing dividend stocks during the market's choppy period.
Business Wire
05-05-2025
- Business
- Business Wire
National Storage Affiliates Trust Reports First Quarter 2025 Results
GREENWOOD VILLAGE, Colo.--(BUSINESS WIRE)--National Storage Affiliates Trust ("NSA" or the "Company") (NYSE: NSA) today reported the Company's first quarter 2025 results. First Quarter 2025 Highlights Reported net income of $19.5 million for the first quarter of 2025, a decrease of 79.5% compared to the first quarter of 2024. Reported diluted earnings per share of $0.10 for the first quarter of 2025 compared to $0.65 for the first quarter of 2024. Reported core funds from operations ("Core FFO") of $73.4 million, or $0.54 per share for the first quarter of 2025, a decrease of 10.0% per share compared to the first quarter of 2024. Reported a decrease in same store net operating income ("NOI") of 5.7% for the first quarter of 2025 compared to the same period in 2024, driven by a 3.0% decrease in same store total revenues and a 3.7% increase in same store property operating expenses. Reported same store period-end occupancy of 83.6% as of March 31, 2025, a decrease of 240 basis points compared to March 31, 2024. Acquired three wholly-owned self storage properties for approximately $13.5 million during the first quarter of 2025. David Cramer, President and Chief Executive Officer, commented, "Our first quarter results were in-line with our expectations. We're encouraged with the sequential improvement in the pace of year-over-year same store revenue and NOI growth from the fourth quarter, implying that the troughs in same store growth are now behind us. Although occupancy levels remain muted, street rates and in-place contract rents have grown sequentially every month of this year through April, providing momentum into the spring leasing season." Mr. Cramer further commented, "Despite increased economic uncertainty, we remain positive on the medium-term outlook for the self storage sector, and NSA specifically." Financial Results (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. Expand Net income decreased $75.6 million for the first quarter of 2025 as compared to the same period in 2024. This decrease was primarily due to larger gains on the sale of self storage properties recognized in the first quarter of 2024. Additionally, the decrease was a result of lower NOI, driven by property dispositions and negative same store NOI growth. These impacts were partially offset by a $3.1 million increase in management fees and other revenue and a $2.5 million decrease in general and administrative expenses compared to the same period in 2024. The decrease in FFO and Core FFO per share and unit for the first quarter of 2025 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) Year-over-year same store total revenue decreased 3.0% for the first quarter of 2025 as compared to the same period in 2024. The decrease for the first quarter was driven primarily by a 190 basis point decrease in average occupancy and a 1.0% 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 Sarasota. Year-over-year same store property operating expenses increased 3.7% for the first quarter of 2025 as compared to the same period in 2024. The increase was primarily driven by increases in marketing, repairs and maintenance, and utilities expense, partially offset by decreases in personnel costs. Investment Activity During the first quarter, NSA invested $13.5 million in the acquisition of three wholly-owned self storage properties consisting of approximately 107,000 rentable square feet configured in approximately 1,000 storage units. Balance Sheet As of March 31, 2025, NSA has no debt maturities in the next 12 months and approximately $522.5 million of available capacity on its $950.0 million revolving line of credit. Common Share Dividends On February 13, 2025, NSA's Board of Trustees declared a quarterly cash dividend of $0.57 per common share. The first quarter 2025 dividend was paid on March 31, 2025 to shareholders of record as of March 14, 2025. 2025 Guidance NSA reaffirms its previously provided Core FFO guidance estimates and related assumptions for the year ended December 31, 2025: Ranges for Full Year 2025 Low High Earnings per share - diluted $ 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 (0.14 ) (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 costs 0.04 0.05 Core FFO per share and unit $ 2.30 $ 2.38 Expand (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. Expand 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 May 5, 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, May 6, 2025 to discuss its first 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, May 6, 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 Nareit's REITweek 2025 Conference on June 2-5, 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 March 31, 2025, the Company held ownership interests in and operated 1,075 self storage properties, located in 41 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 NSA is included in the MSCI US REIT Index (RMS/RMZ), the Russell 1000 Index of Companies and the S&P MidCap 400 Index. 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 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 Balance Sheets (dollars in thousands, except per share amounts) (unaudited) March 31, 2025 2024 ASSETS Real estate Self storage properties $ 5,873,499 $ 5,864,134 Less accumulated depreciation (1,095,918 ) (1,051,638 ) Self storage properties, net 4,777,581 4,812,496 Cash and cash equivalents 19,266 50,408 Restricted cash 909 345 Debt issuance costs, net 4,921 5,632 Investment in unconsolidated real estate ventures 235,591 246,193 Other assets, net 196,079 218,482 Operating lease right-of-use assets 20,657 20,906 Total assets $ 5,255,004 $ 5,354,462 LIABILITIES AND EQUITY Liabilities Debt financing $ 3,426,666 $ 3,449,087 Accounts payable and accrued liabilities 92,016 98,657 Interest rate swap liabilities 1,196 471 Operating lease liabilities 22,662 22,888 Deferred revenue 20,272 20,012 Total liabilities 3,562,812 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 March 31, 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, 76,450,466 and 76,344,661 shares issued and outstanding at March 31, 2025 and December 31, 2024, respectively 764 763 Additional paid-in capital 1,249,291 1,249,426 Distributions in excess of earnings (566,346 ) (530,652 ) Accumulated other comprehensive income 9,315 15,548 Total shareholders' equity 1,033,979 1,075,980 Noncontrolling interests 658,213 687,367 Total equity 1,692,192 1,763,347 Total liabilities and equity $ 5,255,004 $ 5,354,462 Expand Reconciliation of Net Income to FFO and Core FFO (in thousands, except per share and unit amounts) (unaudited) Three Months Ended March 31, 2025 2024 Net income $ 19,519 $ 95,088 Add (subtract): Real estate depreciation and amortization 47,661 46,964 Equity in losses of unconsolidated real estate ventures 5,739 1,630 Company's share of FFO in unconsolidated real estate ventures 5,052 5,685 Gain on sale of self storage properties (1,425 ) (61,173 ) Distributions to preferred shareholders and unitholders (5,568 ) (5,568 ) FFO attributable to subordinated performance units (1) — (10,730 ) FFO attributable to common shareholders, OP unitholders, and LTIP unitholders 70,978 71,896 Add (subtract): Acquisition costs 403 507 Integration costs (2) 2,042 — Core FFO attributable to common shareholders, OP unitholders, and LTIP unitholders $ 73,423 $ 72,403 Weighted average shares and units outstanding - FFO and Core FFO: (3) Weighted average shares outstanding - basic 76,372 80,236 Weighted average restricted common shares outstanding 21 22 Weighted average OP units outstanding 52,147 37,633 Weighted average DownREIT OP unit equivalents outstanding 5,769 2,120 Weighted average LTIP units outstanding 925 693 Total weighted average shares and units outstanding - FFO and Core FFO 135,234 120,704 FFO per share and unit $ 0.52 $ 0.60 Core FFO per share and unit $ 0.54 $ 0.60 Expand (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. (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. Expand (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). Expand Net Operating Income (dollars in thousands) (unaudited) Three Months Ended March 31, 2025 2024 Net income $ 19,519 $ 95,088 (Subtract) add: Management fees and other revenue (12,135 ) (9,074 ) General and administrative expenses 13,145 15,674 Other 4,476 3,492 Depreciation and amortization 48,116 47,331 Interest expense 40,475 38,117 Equity in losses of unconsolidated real estate ventures 5,739 1,630 Acquisition and integration costs 2,445 507 Income tax expense 1,120 886 Gain on sale of self storage properties (1,425 ) (61,173 ) Non-operating income (360 ) (98 ) Net Operating Income $ 121,115 $ 132,380 Expand EBITDA and Adjusted EBITDA (dollars in thousands) (unaudited) Three Months Ended March 31, 2025 2024 Net income $ 19,519 $ 95,088 Add: Depreciation and amortization 48,116 47,331 Company's share of unconsolidated real estate venture depreciation and amortization 5,411 4,552 Interest expense 40,475 38,117 Income tax expense 1,120 886 EBITDA 114,641 185,974 Add (subtract): Acquisition costs 403 507 Effect of hypothetical liquidation at book value (HLBV) accounting for unconsolidated 2024 Joint Venture (1) 5,381 2,764 Gain on sale of self storage properties (1,425 ) (61,173 ) Integration costs, excluding equity-based compensation (2) 930 — Equity-based compensation expense (3) 3,079 1,855 Adjusted EBITDA $ 123,009 $ 129,927 Expand (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. (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 months ended March 31, 2025, $1.1 million relates to the internalization of the PRO structure and is included in acquisition and integration costs. Expand
Yahoo
02-04-2025
- Business
- Yahoo
National Storage Affiliates Trust Announces Date of First Quarter 2025 Earnings Release and Conference Call
GREENWOOD VILLAGE, Colo., April 02, 2025--(BUSINESS WIRE)--National Storage Affiliates Trust ("NSA" or the "Company") (NYSE: NSA) today announced the Company will release financial results for the three months ended March 31, 2025, after market close on Monday, May 5, 2025. NSA will host a conference call to discuss its financial results, current market conditions, and future outlook at 1:00 p.m. Eastern Time on Tuesday, May 6, 2025. Following prepared remarks, management will accept questions from registered financial analysts. All other participants are encouraged to listen to the call via webcast using the link found on the Company's website. Conference Call and Webcast:Date/Time: Tuesday, May 6, 2025, at 1:00 p.m. ETWebcast link available at: Domestic (toll free): 877-407-9711International: 412-902-1014 A replay of the webcast will be available for 30 days on NSA's website at Any transcription, recording, or retransmission of the Company's conference call and webcast in any way is strictly prohibited without the prior written consent of NSA. Supplemental materials will be posted to the investor relations section of the Company's website prior to the conference call. Upcoming Industry Conferences NSA management is scheduled to participate in Nareit's REITweek 2025 Conference on June 2-5, 2025, in New York City. 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 NSA is included in the MSCI US REIT Index (RMS/RMZ), the Russell 1000 Index of Companies and the S&P MidCap 400 Index. View source version on Contacts National Storage Affiliates Trust Investor/Media Relations George Hoglund, CFAVice President - Investor Relations720.630.2160ghoglund@ Sign in to access your portfolio
Yahoo
28-02-2025
- Business
- Yahoo
National Storage Affiliates Trust (NSA) Q4 2024 Earnings Call Highlights: Navigating Challenges ...
Core FFO per Share: $0.60 for Q4 2024; $2.44 for the full year 2024. Same-Store Revenue Growth: Declined 4.3% in Q4 2024. Same-Store NOI Growth: Declined 5.5% for the full year 2024. Same-Store Rent Revenue per Square Foot: Declined 2.5% in Q4 2024. Average Occupancy: Declined 180 basis points year-over-year in Q4 2024. Expense Growth: 4.7% in Q4 2024; 3.7% for the full year 2024. Leverage: 6.5 times net debt to EBITDA at quarter end. Revolver Balance: Approximately $430 million with over $500 million of availability. 2025 Guidance - Same-Store Revenue Growth: Flat. 2025 Guidance - Same-Store Operating Expense Growth: 3.5%. 2025 Guidance - Same-Store NOI Growth: Negative 1.4%. 2025 Guidance - Core FFO per Share: $2.34. 2025 Guidance - Acquisition and Disposition Ranges: $100 million to $300 million. Warning! GuruFocus has detected 8 Warning Signs with NSA. Release Date: February 27, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. National Storage Affiliates Trust (NYSE:NSA) successfully internalized its PRO structure, consolidating brands and onboarding approximately 250 properties and over 380 employees to its corporate platform. The company deployed $150 million of growth capital in a newly formed joint venture and repurchased $275 million of common shares, indicating strong capital management. NSA's markets have a higher average percentage of homeowners versus renters, making its portfolio more sensitive to housing market recovery, which is expected to benefit the company. The supply of new storage facilities is expected to decline substantially over the next few years, which should improve market conditions for NSA. NSA reported core FFO per share of $0.60 for the fourth quarter of 2024 and $2.44 for the full year, at the high end of its guidance range, driven by better-than-expected G&A and management fees. The company faces challenging operating conditions due to elevated supply and muted demand from historically low home sales. NSA's same-store revenue and NOI growth were down 3% and 5.5% respectively over the prior year, indicating pressure on financial performance. Interest expense is expected to contribute to a decline in core FFO per share in 2025, partly due to the expiration of interest rate swaps. The company anticipates near-term negative NOI growth, with the first quarter being seasonally the weakest, which will put additional pressure on leverage. NSA's guidance for 2025 reflects uncertainty regarding interest rates and their impact on the housing market, which could affect the spring leasing season. Q: Can you explain the expected improvement in revenue growth for 2025, particularly regarding occupancy and rate growth? A: David Cramer, President and CEO, explained that 2024 was a transition year with internalization and platform consolidation. For 2025, they anticipate a normal seasonal pattern with occupancy peaking in the summer, expecting a 250 basis point improvement. They also foresee low-single-digit growth in average contract rates due to improved tools and positioning. Brandon Togashi, CFO, added that the negative revenue growth in Q4 2024 was due to occupancy and rent per square foot declines, which they expect to tighten in Q1 2025. Q: Is your growth being impacted by state restrictions due to the California wildfires? A: David Cramer stated that the impact is minimal, as only eight stores in their portfolio are in areas with pricing restrictions, representing a small percentage of their total stores. Q: How do you view the acquisition and disposition environment, and what are your plans for capital recycling? A: David Cramer mentioned that they plan to recycle capital by selling identified assets to improve operational efficiency. They have $10 million worth of properties under contract for sale and are actively evaluating acquisition opportunities. The acquisition environment remains healthy, with no significant changes in deal flow or cap rates. Q: How does the current housing market affect your business, and is a recovery factored into your guidance? A: Brandon Togashi noted that their guidance assumes no worse conditions than 2024, with modest improvement expected. They believe pent-up mobility demand will gradually unlock, benefiting from job-driven mobility and improved supply outlook. The internalization of PROs is also expected to enhance performance. Q: What are your expectations for supply and its impact on your markets in 2025? A: David Cramer explained that new supply deliveries are expected to decline, with 2025 seeing about a 50-100 basis point improvement from 2024. While new supply is decreasing, it will take time to absorb existing supply, particularly in markets like Phoenix and Atlanta. They anticipate improved stability as supply pressures ease. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
