National Storage Affiliates Trust Announces Tax Treatment of 2024 Distributions

Rhea-AI Summary

National Storage Affiliates Trust (NYSE: NSA) has released its tax treatment details for 2024 distributions. For common shareholders, the total distribution of $2.25 per share consists of $1.27 in ordinary dividends and $0.98 in nondividend distributions.

Both Series A and Series B Preferred Shares received total distributions of $1.50 per share for 2024, classified entirely as ordinary dividends. The company confirms that the ordinary dividends qualify as 'qualified REIT dividends' under Internal Revenue Code section 199A.

Distributions were paid quarterly, with common shares seeing a slight increase in the fourth quarter payment to $0.57 per share from $0.56 in previous quarters. Preferred shares maintained consistent quarterly payments of $0.375 throughout the year.

Positive

• Increased Q4 common share dividend to $0.57 from $0.56
• Maintained stable preferred share distributions of $0.375 quarterly

Negative

• None.

Insights

Tax Specialist

The detailed tax treatment disclosure from National Storage Affiliates Trust reveals a sophisticated capital return strategy that merits careful analysis. For common shareholders, the $2.25 per share annual distribution is structured with 56.6% as ordinary dividends and 43.4% as nondividend distributions, a tax-efficient mix that provides advantages for different investor profiles.

The Q4 distribution increase to $0.57 from $0.56 per share signals management's confidence in sustained cash flow generation. Both Series A and Series B Preferred shares maintained stable $1.50 annual distributions, fully classified as ordinary dividends, providing predictable income streams for risk-averse investors.

The classification of ordinary dividends as qualified REIT dividends under Section 199A is particularly significant, as it enables eligible taxpayers to claim up to a 20% deduction on this income. The substantial nondividend distribution component for common shares ($0.98 per share) effectively represents a return of capital, reducing shareholders' cost basis and deferring tax implications until the shares are sold.

This tax treatment structure demonstrates NSA's commitment to shareholder-friendly capital return policies while maintaining the flexibility needed for operational growth in the competitive self-storage REIT sector.

GREENWOOD VILLAGE, Colo.--(BUSINESS WIRE)-- National Storage Affiliates Trust (“NSA” or the “Company”) (NYSE: NSA) today announced the tax treatment of its 2024 distributions on its Common Shares of Beneficial Interest (CUSIP Number 637870106), its 6.000% Series A Cumulative Redeemable Preferred Shares (CUSIP Number 637870205) (“Series A Preferred Shares”), and its 6.000% Series B Cumulative Redeemable Preferred Shares (CUSIP Number 637870304) (“Series B Preferred Shares”).

For the tax year ended December 31, 2024, distributions to NSA’s common shareholders are classified on Form 1099-DIV as follows:

Declaration Date	Record Date	Payment Date	Total Distribution Per Share	1099 Box 1a: Total Ordinary Dividends	1099 Box 3: Nondividend Distributions
2/15/2024	3/15/2024	3/29/2024	0.560000	0.316732	0.243268
5/16/2024	6/14/2024	6/28/2024	0.560000	0.316732	0.243268
8/15/2024	9/13/2024	9/30/2024	0.560000	0.316732	0.243268
11/14/2024	12/13/2024	12/31/2024	0.570000	0.322388	0.247612
Totals for 2024			2.250000	1.272584	0.977416

For the tax year ended December 31, 2024, distributions to NSA’s preferred shareholders are classified on Form 1099-DIV as follows:

Series A Preferred Shares

Declaration Date	Record Date	Payment Date	Total Distribution Per Share	1099 Box 1a: Total Ordinary Dividends	1099 Box 3: Nondividend Distributions
2/15/2024	3/15/2024	3/29/2024	0.375000	0.375000	0.000000
5/16/2024	6/14/2024	6/28/2024	0.375000	0.375000	0.000000
8/15/2024	9/13/2024	9/30/2024	0.375000	0.375000	0.000000
11/14/2024	12/13/2024	12/31/2024	0.375000	0.375000	0.000000
Totals for 2024			1.500000	1.500000	0.000000

Series B Preferred Shares

Declaration Date	Record Date	Payment Date	Total Distribution Per Share	1099 Box 1a: Total Ordinary Dividends	1099 Box 3: Nondividend Distributions
2/15/2024	3/15/2024	3/29/2024	0.375000	0.375000	0.000000
5/16/2024	6/14/2024	6/28/2024	0.375000	0.375000	0.000000
8/15/2024	9/13/2024	9/30/2024	0.375000	0.375000	0.000000
11/14/2024	12/13/2024	12/31/2024	0.375000	0.375000	0.000000
Totals for 2024			1.500000	1.500000	0.000000

The ordinary dividends in the tables above are “qualified REIT dividends” for purposes of Internal Revenue Code section 199A, reported in Box 5 of Form 1099-DIV.

NSA recommends its shareholders consult their individual tax advisors should there be any related questions regarding the above tables.

Upcoming Industry Conferences

NSA management is scheduled to participate in Citi’s 2025 Global Property CEO Conference on March 3-5, 2025 in Hollywood, Florida.

About National Storage Affiliates Trust

National Storage Affiliates Trust is a real estate investment trust headquartered in Greenwood Village, Colorado, focused on the ownership, operation and acquisition of self storage properties predominantly located within the top 100 metropolitan statistical areas throughout the United States. As of September 30, 2024, the Company held ownership interests in and operated 1,070 self storage properties located in 42 states and Puerto Rico with approximately 70.0 million rentable square feet. NSA is one of the largest owners and operators of self storage properties among public and private companies in the United States. For more information, please visit the Company’s website at www.nsastorage.com. NSA is included in the MSCI US REIT Index (RMS/RMZ), the Russell 1000 Index of Companies and the S&P MidCap 400 Index.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250124592277/en/

National Storage Affiliates Trust

Investor/Media Relations

George Hoglund, CFA

Vice President - Investor Relations

720.630.2160

ghoglund@nsareit.net

Source: National Storage Affiliates Trust

FAQ

What is NSA's total dividend distribution for common shares in 2024?

NSA's total dividend distribution for common shares in 2024 was $2.25 per share.

How much of NSA's 2024 common share distribution is classified as ordinary dividends?

Of the total distribution, $1.27 per share is classified as ordinary dividends.

What is the quarterly dividend amount for NSA's preferred shares in 2024?

Both Series A and Series B preferred shares received quarterly dividends of $0.375 per share.

Did NSA increase its common share dividend in 2024?

Yes, NSA increased its common share dividend in Q4 2024 to $0.57 from $0.56 per share.

Are NSA's 2024 ordinary dividends qualified REIT dividends under IRC section 199A?

Yes, the ordinary dividends are qualified REIT dividends under Internal Revenue Code section 199A.