National Storage Affiliates Trust Reports Fourth Quarter and Full Year 2024 Results
National Storage Affiliates Trust (NSA) reported its Q4 and full year 2024 results, showing significant declines across key metrics. Q4 net income dropped 75.8% to $26.1 million, with diluted EPS falling to $0.15 from $0.72 year-over-year. Core FFO decreased 11.8% to $0.60 per share.
Same store performance weakened with a 7.5% NOI decrease in Q4, driven by a 4.3% revenue decline and 4.7% increase in operating expenses. Period-end occupancy fell 140 basis points to 84.4%.
For full year 2024, net income decreased 22.7% to $183.3 million, with Core FFO declining 9.3% to $2.44 per share. The company completed strategic transactions including acquiring 7 properties for $64.9 million, selling 40 properties for $273.1 million, and contributing 56 properties to a joint venture. NSA also repurchased 7.4 million shares for $275.2 million and completed the internalization of its PRO structure.
National Storage Affiliates Trust (NSA) ha riportato i risultati del quarto trimestre e dell'intero anno 2024, mostrando significative diminuzioni in vari indicatori chiave. Il reddito netto del Q4 è diminuito del 75,8% a 26,1 milioni di dollari, con l'EPS diluito che è sceso a 0,15 dollari rispetto a 0,72 dollari dell'anno precedente. Il Core FFO è diminuito dell'11,8% a 0,60 dollari per azione.
Le performance delle stesse strutture sono peggiorate con una diminuzione del NOI del 7,5% nel Q4, influenzata da un calo del 4,3% dei ricavi e un aumento del 4,7% delle spese operative. L'occupazione a fine periodo è scesa di 140 punti base al 84,4%.
Per l'intero anno 2024, il reddito netto è diminuito del 22,7% a 183,3 milioni di dollari, con il Core FFO in calo del 9,3% a 2,44 dollari per azione. L'azienda ha completato transazioni strategiche, tra cui l'acquisto di 7 proprietà per 64,9 milioni di dollari, la vendita di 40 proprietà per 273,1 milioni di dollari e il conferimento di 56 proprietà a una joint venture. NSA ha anche riacquistato 7,4 milioni di azioni per 275,2 milioni di dollari e ha completato l'internalizzazione della sua struttura PRO.
National Storage Affiliates Trust (NSA) reportó sus resultados del cuarto trimestre y del año completo 2024, mostrando disminuciones significativas en varios indicadores clave. El ingreso neto del Q4 cayó un 75.8% a 26.1 millones de dólares, con un EPS diluido que bajó a 0.15 dólares desde 0.72 dólares en el año anterior. El Core FFO disminuyó un 11.8% a 0.60 dólares por acción.
El rendimiento de las mismas tiendas se debilitó con una disminución del NOI del 7.5% en el Q4, impulsado por una caída del 4.3% en los ingresos y un aumento del 4.7% en los gastos operativos. La ocupación al final del período cayó 140 puntos básicos al 84.4%.
Para el año completo 2024, el ingreso neto disminuyó un 22.7% a 183.3 millones de dólares, con el Core FFO en declive del 9.3% a 2.44 dólares por acción. La compañía completó transacciones estratégicas, incluyendo la adquisición de 7 propiedades por 64.9 millones de dólares, la venta de 40 propiedades por 273.1 millones de dólares y la contribución de 56 propiedades a una empresa conjunta. NSA también recompró 7.4 millones de acciones por 275.2 millones de dólares y completó la internalización de su estructura PRO.
국가 저장 제휴 신탁 (NSA)는 2024년 4분기 및 연간 실적을 발표하며 주요 지표에서 상당한 감소를 보였습니다. 4분기 순이익은 75.8% 감소한 2610만 달러로, 희석 EPS는 전년 대비 0.72달러에서 0.15달러로 떨어졌습니다. Core FFO는 주당 0.60달러로 11.8% 감소했습니다.
동일 매장 실적은 4분기 NOI가 7.5% 감소하며 약화되었으며, 이는 4.3%의 수익 감소와 4.7%의 운영 비용 증가에 기인합니다. 기간 말 점유율은 140bp 하락하여 84.4%에 달했습니다.
2024년 전체 연도 기준으로 순이익은 22.7% 감소한 1억 8330만 달러이며, Core FFO는 주당 2.44달러로 9.3% 감소했습니다. 회사는 6490만 달러에 7개 부동산을 인수하고, 2억 7310만 달러에 40개 부동산을 매각하며, 56개 부동산을 합작 투자에 기여하는 전략적 거래를 완료했습니다. NSA는 또한 2억 7520만 달러에 740만 주를 재매입하고 PRO 구조의 내부화를 완료했습니다.
National Storage Affiliates Trust (NSA) a publié ses résultats du quatrième trimestre et de l'année 2024, montrant des baisses significatives dans plusieurs indicateurs clés. Le revenu net du Q4 a chuté de 75,8% à 26,1 millions de dollars, avec un BPA dilué tombé à 0,15 dollar contre 0,72 dollar l'année précédente. Le Core FFO a diminué de 11,8% à 0,60 dollar par action.
La performance des mêmes magasins s'est affaiblie avec une baisse du NOI de 7,5% au Q4, entraînée par une diminution des revenus de 4,3% et une augmentation des dépenses opérationnelles de 4,7%. Le taux d'occupation à la fin de la période a chuté de 140 points de base à 84,4%.
Pour l'année entière 2024, le revenu net a diminué de 22,7% à 183,3 millions de dollars, le Core FFO ayant baissé de 9,3% à 2,44 dollars par action. L'entreprise a finalisé des transactions stratégiques, y compris l'acquisition de 7 propriétés pour 64,9 millions de dollars, la vente de 40 propriétés pour 273,1 millions de dollars et la contribution de 56 propriétés à une coentreprise. NSA a également racheté 7,4 millions d'actions pour 275,2 millions de dollars et a complété l'internalisation de sa structure PRO.
National Storage Affiliates Trust (NSA) hat seine Ergebnisse für das vierte Quartal und das gesamte Jahr 2024 veröffentlicht und zeigt signifikante Rückgänge in wichtigen Kennzahlen. Der Nettogewinn im Q4 sank um 75,8% auf 26,1 Millionen Dollar, während das verwässerte EPS von 0,72 Dollar im Vorjahr auf 0,15 Dollar fiel. Der Core FFO verringerte sich um 11,8% auf 0,60 Dollar pro Aktie.
Die Performance der gleichen Objekte verschlechterte sich mit einem NOI-Rückgang von 7,5% im Q4, bedingt durch einen Rückgang der Einnahmen um 4,3% und einen Anstieg der Betriebskosten um 4,7%. Die Belegung zum Periodenende fiel um 140 Basispunkte auf 84,4%.
Für das gesamte Jahr 2024 sank der Nettogewinn um 22,7% auf 183,3 Millionen Dollar, während der Core FFO um 9,3% auf 2,44 Dollar pro Aktie zurückging. Das Unternehmen hat strategische Transaktionen abgeschlossen, darunter den Erwerb von 7 Immobilien für 64,9 Millionen Dollar, den Verkauf von 40 Immobilien für 273,1 Millionen Dollar und die Einbringung von 56 Immobilien in ein Joint Venture. NSA hat außerdem 7,4 Millionen Aktien für 275,2 Millionen Dollar zurückgekauft und die Internalisierung seiner PRO-Struktur abgeschlossen.
- No near-term debt maturities
- $512.5M available on revolving credit line
- New $350M share repurchase program authorized
- New $400M ATM program established
- Q4 net income down 75.8% to $26.1M
- Same store NOI decreased 7.5% in Q4
- Core FFO per share declined 11.8% in Q4
- Occupancy dropped 140 basis points to 84.4%
- Same store revenues decreased 4.3% in Q4
- Operating expenses increased 4.7% in Q4
Fourth Quarter 2024 Highlights
-
Reported net income of
$26.1 million 75.8% compared to the fourth quarter of 2023. Reported diluted earnings per share of$0.15 $0.72 -
Reported core funds from operations ("Core FFO") of
$81.2 million $0.60 11.8% per share compared to the fourth quarter of 2023. -
Reported a decrease in same store net operating income ("NOI") of
7.5% for the fourth quarter of 2024 compared to the same period in 2023, driven by a4.3% decrease in same store total revenues and a4.7% increase in same store property operating expenses. -
Reported same store period-end occupancy of
84.4% as of December 31, 2024, a decrease of 140 basis points compared to December 31, 2023. -
Acquired four wholly-owned self storage properties for approximately
$39.6 million -
Entered into a new sales agreement for an At the Market ("ATM") program authorizing, but not obligating, the sale of up to
$400.0 million
Full Year 2024 Highlights
-
Reported net income of
$183.3 million 22.7% compared to full year 2023. Reported diluted earnings per share of$1.18 $1.48 -
Reported Core FFO of
$308.7 million $2.44 9.3% per share compared to full year 2023. -
Reported a decrease in same store NOI of
5.5% for full year 2024 compared to full year 2023, driven by a3.0% decrease in same store total revenues and a3.7% increase in same store property operating expenses. -
Acquired seven wholly-owned self storage properties for approximately
$64.9 million $147.9 million -
Completed the sales of 40 wholly-owned self storage properties to unaffiliated third parties for net proceeds of approximately
$273.1 million $346.5 million -
Repurchased 7,400,322 common shares for approximately
$275.2 million - Completed the internalization of the Company's participating regional operator ("PRO") structure. As a result, the Company purchased the PROs' management contracts, and in some cases, their brand names, related intellectual property and certain rights related to the PROs' tenant insurance programs.
David Cramer, President and Chief Executive Officer, commented, “Same store results were in line with our expectations for the fourth quarter as we were pleased to finish the heavy lifting from the internalization of our PRO structure. Core FFO per share came in at the high end of our expectations due primarily to lower-than-expected general and administrative expenses, better-than-expected contributions from our unconsolidated real estate ventures, and favorable property and tenant insurance outcomes.”
Mr. Cramer further commented, “We were focused throughout 2024 positioning NSA to realize outsized benefits as market fundamentals improve. While there is uncertainty in the macro environment for 2025, we have no near term debt maturities, and we remain focused on executing operationally and realizing the expected accretion that we’ve previously highlighted from the internalization of our PRO structure.”
Financial Results
($ in thousands, except per share and unit data) |
Three Months Ended December 31, |
|
Year Ended December 31, |
||||||||||||||||||
|
2024 |
|
2023 |
|
Change |
|
2024 |
|
2023 |
|
Change |
||||||||||
Net income |
$ |
26,131 |
|
$ |
108,056 |
|
(75.8 |
)% |
|
$ |
183,270 |
|
$ |
236,988 |
|
|
(22.7 |
)% |
|||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Funds From Operations ("FFO")(1) |
$ |
79,746 |
|
|
$ |
83,369 |
|
|
(4.3 |
)% |
|
$ |
304,123 |
|
|
$ |
341,528 |
|
|
(11.0 |
)% |
Add back acquisition costs |
|
328 |
|
|
|
235 |
|
|
39.6 |
% |
|
|
1,602 |
|
|
|
1,659 |
|
|
(3.4 |
)% |
Add integration and executive severance costs(2) |
|
1,137 |
|
|
|
— |
|
|
— |
% |
|
|
2,671 |
|
|
|
— |
|
|
— |
% |
Subtract casualty-related recoveries(3) |
|
— |
|
|
|
— |
|
|
— |
% |
|
|
— |
|
|
|
(522 |
) |
|
— |
% |
Add loss on early extinguishment of debt |
|
— |
|
|
|
— |
|
|
— |
% |
|
|
323 |
|
|
|
758 |
|
|
(57.4 |
)% |
Core FFO(1) |
$ |
81,211 |
|
|
$ |
83,604 |
|
|
(2.9 |
)% |
|
$ |
308,719 |
|
|
$ |
343,423 |
|
|
(10.1 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Earnings per share - basic |
$ |
0.15 |
|
|
$ |
0.77 |
|
|
(80.5 |
)% |
|
$ |
1.18 |
|
|
$ |
1.58 |
|
|
(25.3 |
)% |
Earnings per share - diluted |
$ |
0.15 |
|
|
$ |
0.72 |
|
|
(79.2 |
)% |
|
$ |
1.18 |
|
|
$ |
1.48 |
|
|
(20.3 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
FFO per share and unit(1) |
$ |
0.59 |
|
|
$ |
0.68 |
|
|
(13.2 |
)% |
|
$ |
2.40 |
|
|
$ |
2.67 |
|
|
(10.1 |
)% |
Core FFO per share and unit(1) |
$ |
0.60 |
|
|
$ |
0.68 |
|
|
(11.8 |
)% |
|
$ |
2.44 |
|
|
$ |
2.69 |
|
|
(9.3 |
)% |
(1) |
Non-GAAP financial measures, including FFO, Core FFO and NOI, are defined in the Glossary in the supplemental financial information and, where appropriate, reconciliations of these measures and other non-GAAP financial measures to their most directly comparable GAAP measures are included in the Schedules to this press release and in the supplemental financial information. |
|
(2) |
Integration costs relate to expenses incurred as a part of the internalization of the PRO structure. Executive severance costs are recorded within the line items "General and administrative expenses" and "Non-operating (expense) income" in our consolidated statements of operations. |
|
(3) |
Casualty-related recoveries in 2023 relate to casualty-related expenses incurred during 2022 and are recorded in the line item "Other" within operating expenses in our consolidated statements of operations. |
Net income decreased
The decreases in FFO and Core FFO for the fourth quarter of 2024 and year-to-date were the result of a decrease in NOI of
Same Store Operating Results (776 Stores)
($ in thousands, except per square foot data) |
Three Months Ended December 31, |
|
Year Ended December 31, |
||||||||||||||||||
|
2024 |
|
2023 |
|
Change |
|
2024 |
|
2023 |
|
Change |
||||||||||
Total revenues |
$ |
170,687 |
|
|
$ |
178,314 |
|
|
(4.3 |
)% |
|
$ |
693,548 |
|
|
$ |
715,296 |
|
|
(3.0 |
)% |
Property operating expenses |
|
49,837 |
|
|
|
47,614 |
|
|
4.7 |
% |
|
|
199,496 |
|
|
|
192,288 |
|
|
3.7 |
% |
Net Operating Income (NOI) |
$ |
120,850 |
|
|
$ |
130,700 |
|
|
(7.5 |
)% |
|
$ |
494,052 |
|
|
$ |
523,008 |
|
|
(5.5 |
)% |
NOI Margin |
|
70.8 |
% |
|
|
73.3 |
% |
|
(2.5 |
)% |
|
|
71.2 |
% |
|
|
73.1 |
% |
|
(1.9 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Average Occupancy |
|
85.2 |
% |
|
|
87.0 |
% |
|
(1.8 |
)% |
|
|
85.8 |
% |
|
|
88.7 |
% |
|
(2.9 |
)% |
Average Annualized Rental Revenue Per Occupied Square Foot |
$ |
15.56 |
|
|
$ |
15.96 |
|
|
(2.5 |
)% |
|
$ |
15.68 |
|
|
$ |
15.71 |
|
|
(0.2 |
)% |
Year-over-year same store total revenues decreased
Year-over-year same store property operating expenses increased
Investment Activity
During the fourth quarter, NSA invested
Balance Sheet
For the full year 2024, NSA repurchased 7,400,322 common shares for approximately
On November 19, 2024, NSA and its operating partnership, NSA OP, LP, entered into a sales agreement with certain sales agents, forward sellers and forward purchasers pursuant to which NSA may sell from time to time up to
As of February 24, 2025, NSA has no debt maturities in 2025 and approximately
Common Share Dividends
On November 14, 2024, NSA's Board of Trustees declared a quarterly cash dividend of
For full year 2024, NSA's Board of Trustees declared cash dividends of
2025 Guidance
The following table outlines NSA's Core FFO per share guidance estimates and related assumptions for the year ended December 31, 2025.
|
Ranges for Full Year 2025 |
|
Actual Results for Full Year 2024 |
|
|
Low |
High |
|
|
Core FFO per share(1) |
|
|
|
|
|
|
|
|
|
Same store operations(2) |
|
|
|
|
Total revenue growth |
(1.25)% |
|
|
(3.0)% |
Property operating expenses growth |
|
|
|
|
NOI growth |
(2.8)% |
|
|
(5.5)% |
|
|
|
|
|
General and administrative expenses |
|
|
|
|
General and administrative expenses (excluding equity-based compensation), in millions |
|
|
|
|
Equity-based compensation, in millions |
|
|
|
|
|
|
|
|
|
Management fees and other revenue, in millions |
|
|
|
|
Core FFO from unconsolidated real estate ventures, in millions |
|
|
|
|
|
|
|
|
|
Acquisitions - consolidated and joint venture (at share), in millions(3) |
|
|
|
|
Dispositions - consolidated and joint venture (at share), in millions(3) |
|
|
|
|
|
Ranges for Full Year 2025 |
||
|
Low |
|
High |
Earnings per share - diluted |
|
|
|
Impact of the difference in weighted average number of shares and GAAP accounting for noncontrolling interests, two-class method and treasury stock method |
(0.14) |
|
(0.19) |
Add real estate depreciation and amortization |
1.47 |
|
1.50 |
Add (subtract) equity in losses (earnings) of unconsolidated real estate ventures |
0.13 |
|
0.14 |
Add NSA's share of FFO of unconsolidated real estate ventures |
0.16 |
|
0.17 |
Add acquisition costs and NSA's share of unconsolidated real estate venture acquisition costs |
0.01 |
|
0.02 |
Add integration and executive severance costs |
0.03 |
|
0.04 |
Core FFO per share and unit |
|
|
|
(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 |
Supplemental Financial Information
The full text of this earnings release and supplemental financial information, including certain financial information referenced in this release, are available on NSA's website at www.nsastorage.com and as exhibit 99.1 to the Company's Form 8-K furnished to the SEC on February 26, 2025.
Non-GAAP Financial Measures & Glossary
This press release contains certain non-GAAP financial measures. These non-GAAP measures are presented because NSA's management believes these measures help investors understand NSA's business, performance and ability to earn and distribute cash to its shareholders by providing perspectives not immediately apparent from net income (loss). These measures are also frequently used by securities analysts, investors and other interested parties. The presentations of FFO, Core FFO and NOI in this press release are not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. In addition, NSA's method of calculating these measures may be different from methods used by other companies, and, accordingly, may not be comparable to similar measures as calculated by other companies that do not use the same methodology as NSA. These measures, and other words and phrases used herein, are defined in the Glossary in the supplemental financial information and, where appropriate, reconciliations of these measures and other non-GAAP financial measures to their most directly comparable GAAP measures are included in the Schedules to this press release and in the supplemental financial information.
Quarterly Teleconference and Webcast
The Company will host a conference call at 1:00 pm Eastern Time on Thursday, February 27, 2025 to discuss its fourth quarter 2024 financial results. At the conclusion of the call, management will accept questions from certified financial analysts. All other participants are encouraged to listen to a webcast of the call by accessing the link found on the Company's website at www.nsastorage.com.
Conference Call and Webcast:
Date/Time: Thursday, February 27, 2025, 1:00 pm ET
Webcast available at: www.nsastorage.com.
Domestic (Toll Free US &
International: 412.902.1014
A replay of the webcast will be available for 30 days on NSA's website at www.nsastorage.com.
Upcoming Industry Conference
NSA management is scheduled to participate in Citi's 2025 Global Property CEO Conference on March 3 - 5, 2025 in
About National Storage Affiliates Trust
National Storage Affiliates Trust is a real estate investment trust headquartered in
NOTE REGARDING FORWARD LOOKING STATEMENTS
Certain statements contained in this press release constitute forward-looking statements as such term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and such statements are intended to be covered by the safe harbor provided by the same. Forward-looking statements are subject to substantial risks and uncertainties, many of which are difficult to predict and are generally beyond the Company's control. These forward-looking statements include information about possible or assumed future results of the Company's business, financial condition, liquidity, results of operations, plans and objectives. Changes in any circumstances may cause the Company's actual results to differ significantly from those expressed in any forward-looking statement. When used in this release, the words "believe," "expect," "anticipate," "estimate," "plan," "continue," "intend," "should," "may" or similar expressions are intended to identify forward-looking statements. Statements regarding the following subjects, among others, may be forward-looking: market trends in the Company's industry, interest rates, inflation, the debt and lending markets or the general economy; the Company's business and investment strategy; the acquisition of properties, including those under contract and the Company's ability to execute on its acquisition pipeline; the timing of acquisitions under contract; the Company's ability to realize the benefits from the internalization of the PRO structure; and the Company's guidance estimates for the year ended December 31, 2025. For a further list and description of such risks and uncertainties, see the Company's most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed with the Securities and Exchange Commission, and the other documents filed by the Company with the Securities and Exchange Commission. The forward-looking statements, and other risks, uncertainties and factors are based on the Company's beliefs, assumptions and expectations of its future performance, taking into account all information currently available to the Company. Forward-looking statements are not predictions of future events. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
National Storage Affiliates Trust Consolidated Statements of Operations (in thousands, except per share amounts) (unaudited) |
|||||||||||||||
|
Three Months Ended December 31, |
|
Year Ended December 31, |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
REVENUE |
|
|
|
|
|
|
|
||||||||
Rental revenue |
$ |
171,029 |
|
|
$ |
198,693 |
|
|
$ |
700,247 |
|
|
$ |
793,966 |
|
Other property-related revenue |
|
6,708 |
|
|
|
7,502 |
|
|
|
27,362 |
|
|
|
29,686 |
|
Management fees and other revenue |
|
12,381 |
|
|
|
9,217 |
|
|
|
42,726 |
|
|
|
34,411 |
|
Total revenue |
|
190,118 |
|
|
|
215,412 |
|
|
|
770,335 |
|
|
|
858,063 |
|
OPERATING EXPENSES |
|
|
|
|
|
|
|
||||||||
Property operating expenses |
|
52,245 |
|
|
|
56,828 |
|
|
|
211,852 |
|
|
|
228,986 |
|
General and administrative expenses |
|
12,629 |
|
|
|
14,956 |
|
|
|
57,606 |
|
|
|
59,281 |
|
Depreciation and amortization |
|
48,153 |
|
|
|
53,988 |
|
|
|
189,855 |
|
|
|
221,993 |
|
Other |
|
3,356 |
|
|
|
2,577 |
|
|
|
13,866 |
|
|
|
11,108 |
|
Total operating expenses |
|
116,383 |
|
|
|
128,349 |
|
|
|
473,179 |
|
|
|
521,368 |
|
OTHER (EXPENSE) INCOME |
|
|
|
|
|
|
|
||||||||
Interest expense |
|
(39,340 |
) |
|
|
(45,441 |
) |
|
|
(154,260 |
) |
|
|
(166,147 |
) |
Loss on early extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
(323 |
) |
|
|
(758 |
) |
Equity in (losses) earnings of unconsolidated real estate ventures |
|
(5,284 |
) |
|
|
2,084 |
|
|
|
(16,075 |
) |
|
|
7,553 |
|
Acquisition and integration costs |
|
(1,465 |
) |
|
|
(235 |
) |
|
|
(3,616 |
) |
|
|
(1,659 |
) |
Non-operating (expense) income |
|
(38 |
) |
|
|
(590 |
) |
|
|
314 |
|
|
|
(1,016 |
) |
Gain on sale of self storage properties |
|
— |
|
|
|
63,910 |
|
|
|
63,841 |
|
|
|
63,910 |
|
Other (expense) income, net |
|
(46,127 |
) |
|
|
19,728 |
|
|
|
(110,119 |
) |
|
|
(98,117 |
) |
Income before income taxes |
|
27,608 |
|
|
|
106,791 |
|
|
|
187,037 |
|
|
|
238,578 |
|
Income tax (expense) benefit |
|
(1,477 |
) |
|
|
1,265 |
|
|
|
(3,767 |
) |
|
|
(1,590 |
) |
Net income |
|
26,131 |
|
|
|
108,056 |
|
|
|
183,270 |
|
|
|
236,988 |
|
Net income attributable to noncontrolling interests |
|
(9,403 |
) |
|
|
(39,031 |
) |
|
|
(71,752 |
) |
|
|
(80,319 |
) |
Net income attributable to National Storage Affiliates Trust |
|
16,728 |
|
|
|
69,025 |
|
|
|
111,518 |
|
|
|
156,669 |
|
Distributions to preferred shareholders |
|
(5,113 |
) |
|
|
(5,110 |
) |
|
|
(20,445 |
) |
|
|
(19,019 |
) |
Net income attributable to common shareholders |
$ |
11,615 |
|
|
$ |
63,915 |
|
|
$ |
91,073 |
|
|
$ |
137,650 |
|
|
|
|
|
|
|
|
|
||||||||
Earnings per share - basic |
$ |
0.15 |
|
|
$ |
0.77 |
|
|
$ |
1.18 |
|
|
$ |
1.58 |
|
Earnings per share - diluted |
$ |
0.15 |
|
|
$ |
0.72 |
|
|
$ |
1.18 |
|
|
$ |
1.48 |
|
|
|
|
|
|
|
|
|
||||||||
Weighted average shares outstanding - basic |
|
76,240 |
|
|
|
82,642 |
|
|
|
76,844 |
|
|
|
86,846 |
|
Weighted average shares outstanding - diluted |
|
76,240 |
|
|
|
141,319 |
|
|
|
76,844 |
|
|
|
146,023 |
|
National Storage Affiliates Trust Consolidated Balance Sheets (dollars in thousands, except per share amounts) (unaudited) |
|||||||
|
December 31, |
|
December 31, |
||||
|
2024 |
|
2023 |
||||
ASSETS |
|
|
|
||||
Real estate |
|
|
|
||||
Self storage properties |
$ |
5,864,134 |
|
|
$ |
5,792,174 |
|
Less accumulated depreciation |
|
(1,051,638 |
) |
|
|
(874,359 |
) |
Self storage properties, net |
|
4,812,496 |
|
|
|
4,917,815 |
|
Cash and cash equivalents |
|
50,408 |
|
|
|
64,980 |
|
Restricted cash |
|
345 |
|
|
|
22,713 |
|
Debt issuance costs, net |
|
5,632 |
|
|
|
8,442 |
|
Investment in unconsolidated real estate ventures |
|
246,193 |
|
|
|
211,361 |
|
Other assets, net |
|
218,482 |
|
|
|
134,002 |
|
Assets held for sale, net |
|
— |
|
|
|
550,199 |
|
Operating lease right-of-use assets |
|
20,906 |
|
|
|
22,299 |
|
Total assets |
$ |
5,354,462 |
|
|
$ |
5,931,811 |
|
LIABILITIES AND EQUITY |
|
|
|
||||
Liabilities |
|
|
|
||||
Debt financing |
$ |
3,449,087 |
|
|
$ |
3,658,205 |
|
Accounts payable and accrued liabilities |
|
98,657 |
|
|
|
92,766 |
|
Interest rate swap liabilities |
|
471 |
|
|
|
3,450 |
|
Operating lease liabilities |
|
22,888 |
|
|
|
24,195 |
|
Deferred revenue |
|
20,012 |
|
|
|
27,354 |
|
Total liabilities |
|
3,591,115 |
|
|
|
3,805,970 |
|
Equity |
|
|
|
||||
Preferred shares of beneficial interest, par value |
|
340,895 |
|
|
|
340,651 |
|
Common shares of beneficial interest, par value |
|
763 |
|
|
|
823 |
|
Additional paid-in capital |
|
1,249,426 |
|
|
|
1,509,563 |
|
Distributions in excess of earnings |
|
(530,652 |
) |
|
|
(449,907 |
) |
Accumulated other comprehensive income |
|
15,548 |
|
|
|
21,058 |
|
Total shareholders' equity |
|
1,075,980 |
|
|
|
1,422,188 |
|
Noncontrolling interests |
|
687,367 |
|
|
|
703,653 |
|
Total equity |
|
1,763,347 |
|
|
|
2,125,841 |
|
Total liabilities and equity |
$ |
5,354,462 |
|
|
$ |
5,931,811 |
|
Reconciliation of Net Income to FFO and Core FFO |
|||||||||||||||
(in thousands, except per share and unit amounts) (unaudited) |
|||||||||||||||
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended December 31, |
|
Year Ended December 31, |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Net income |
$ |
26,131 |
|
|
$ |
108,056 |
|
|
$ |
183,270 |
|
|
$ |
236,988 |
|
Add (subtract): |
|
|
|
|
|
|
|
||||||||
Real estate depreciation and amortization |
|
47,770 |
|
|
|
53,659 |
|
|
|
188,358 |
|
|
|
220,737 |
|
Equity in losses (earnings) of unconsolidated real estate ventures |
|
5,284 |
|
|
|
(2,084 |
) |
|
|
16,075 |
|
|
|
(7,553 |
) |
Company's share of FFO in unconsolidated real estate ventures |
|
6,129 |
|
|
|
6,095 |
|
|
|
24,156 |
|
|
|
24,636 |
|
Gain on sale of self storage properties |
|
— |
|
|
|
(63,910 |
) |
|
|
(63,841 |
) |
|
|
(63,910 |
) |
Distributions to preferred shareholders and unitholders |
|
(5,568 |
) |
|
|
(5,572 |
) |
|
|
(22,273 |
) |
|
|
(20,330 |
) |
FFO attributable to subordinated performance units(1) |
|
— |
|
|
|
(12,875 |
) |
|
|
(21,622 |
) |
|
|
(49,040 |
) |
FFO attributable to common shareholders, OP unitholders, and LTIP unitholders |
|
79,746 |
|
|
|
83,369 |
|
|
|
304,123 |
|
|
|
341,528 |
|
Add (subtract): |
|
|
|
|
|
|
|
||||||||
Acquisition costs |
|
328 |
|
|
|
235 |
|
|
|
1,602 |
|
|
|
1,659 |
|
Integration and executive severance costs(2) |
|
1,137 |
|
|
|
— |
|
|
|
2,671 |
|
|
|
— |
|
Casualty-related recoveries(3) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(522 |
) |
Loss on early extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
323 |
|
|
|
758 |
|
Core FFO attributable to common shareholders, OP unitholders, and LTIP unitholders |
$ |
81,211 |
|
|
$ |
83,604 |
|
|
$ |
308,719 |
|
|
$ |
343,423 |
|
|
|
|
|
|
|
|
|
||||||||
Weighted average shares and units outstanding - FFO and Core FFO:(4) |
|
|
|
|
|
|
|
||||||||
Weighted average shares outstanding - basic |
|
76,240 |
|
|
|
82,642 |
|
|
|
76,844 |
|
|
|
86,846 |
|
Weighted average restricted common shares outstanding |
|
19 |
|
|
|
23 |
|
|
|
20 |
|
|
|
25 |
|
Weighted average OP units outstanding |
|
52,260 |
|
|
|
37,701 |
|
|
|
45,110 |
|
|
|
38,302 |
|
Weighted average DownREIT OP unit equivalents outstanding |
|
5,769 |
|
|
|
2,120 |
|
|
|
3,955 |
|
|
|
2,120 |
|
Weighted average LTIP units outstanding |
|
706 |
|
|
|
577 |
|
|
|
684 |
|
|
|
553 |
|
Total weighted average shares and units outstanding - FFO and Core FFO |
|
134,994 |
|
|
|
123,063 |
|
|
|
126,613 |
|
|
|
127,846 |
|
|
|
|
|
|
|
|
|
||||||||
FFO per share and unit |
$ |
0.59 |
|
|
$ |
0.68 |
|
|
$ |
2.40 |
|
|
$ |
2.67 |
|
Core FFO per share and unit |
$ |
0.60 |
|
|
$ |
0.68 |
|
|
$ |
2.44 |
|
|
$ |
2.69 |
|
(1) |
Amounts represent distributions declared for subordinated performance unitholders and DownREIT subordinated performance unitholders for the periods presented. |
|
(2) |
Integration costs relate to expenses incurred as a part of the internalization of the PRO structure. Executive severance costs are recorded within the line items "General and administrative expenses" and "Non-operating (expense) income" in our consolidated statements of operations. |
|
(3) |
Casualty-related recoveries in 2023 relate to casualty-related expenses incurred during 2022 and are recorded in the line item "Other" within operating expenses in our consolidated statements of operations. |
|
(4) |
NSA combines OP units and DownREIT OP units with common shares because, after the applicable lock-out periods, OP units in the Company's operating partnership are redeemable for cash or, at NSA's option, exchangeable for common shares on a one-for-one basis and DownREIT OP units are also redeemable for cash or, at NSA's option, exchangeable for OP units in the Company's operating partnership on a one-for-one basis, subject to certain adjustments in each case. LTIP units may also, under certain circumstances, be convertible into or exchangeable for common shares (or other units that are convertible into or exchangeable for common shares). All subordinated performance units and DownREIT subordinated performance units were converted into OP units on July 1, 2024, in connection with the internalization of the PRO structure. See footnote(5) for additional discussion of subordinated performance units, DownREIT subordinated performance units, and LTIP units in the calculation of FFO and Core FFO per share and unit. |
Reconciliation of Earnings Per Share - Diluted to FFO and Core FFO Per Share and Unit |
|||||||||||||||
(in thousands, except per share and unit amounts) (unaudited) |
|||||||||||||||
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended December 31, |
|
Year Ended December 31, |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Earnings per share - diluted |
$ |
0.15 |
|
|
$ |
0.72 |
|
|
$ |
1.18 |
|
|
$ |
1.48 |
|
Impact of the difference in weighted average number of shares(5) |
|
(0.07 |
) |
|
|
0.11 |
|
|
|
(0.46 |
) |
|
|
0.23 |
|
Impact of GAAP accounting for noncontrolling interests, two-class method and treasury stock method(6) |
|
0.07 |
|
|
|
— |
|
|
|
0.55 |
|
|
|
— |
|
Add real estate depreciation and amortization |
|
0.35 |
|
|
|
0.44 |
|
|
|
1.49 |
|
|
|
1.73 |
|
Add (subtract) equity in losses (earnings) of unconsolidated real estate ventures |
|
0.04 |
|
|
|
(0.02 |
) |
|
|
0.12 |
|
|
|
(0.06 |
) |
Add Company's share of FFO in unconsolidated real estate ventures |
|
0.05 |
|
|
|
0.05 |
|
|
|
0.19 |
|
|
|
0.19 |
|
Subtract gain on sale of self storage properties |
|
— |
|
|
|
(0.52 |
) |
|
|
(0.50 |
) |
|
|
(0.52 |
) |
FFO attributable to subordinated performance unitholders |
|
— |
|
|
|
(0.10 |
) |
|
|
(0.17 |
) |
|
|
(0.38 |
) |
FFO per share and unit |
|
0.59 |
|
|
|
0.68 |
|
|
|
2.40 |
|
|
|
2.67 |
|
Add acquisition costs |
|
— |
|
|
|
— |
|
|
|
0.02 |
|
|
|
0.01 |
|
Add integration and executive severance costs |
|
0.01 |
|
|
|
— |
|
|
|
0.02 |
|
|
|
— |
|
Add loss on early extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.01 |
|
Core FFO per share and unit |
$ |
0.60 |
|
|
$ |
0.68 |
|
|
$ |
2.44 |
|
|
$ |
2.69 |
|
(5) |
Adjustment accounts for the difference between the weighted average number of shares used to calculate diluted earnings per share and the weighted average number of shares used to calculate FFO and Core FFO per share and unit. Diluted earnings per share is calculated using the two-class method for the company's restricted common shares and the treasury stock method for certain unvested LTIP units, and assumes the conversion of vested LTIP units into OP units on a one-for-one basis and the hypothetical conversion of subordinated performance units, and DownREIT subordinated performance units into OP units, even though such units may have only been convertible into OP units (i) after a lock-out period and (ii) upon certain events or conditions. All outstanding subordinated performance units and DownREIT subordinated performance units were converted into OP units on July 1, 2024, in connection with the internalization of the PRO structure. The computation of weighted average shares and units for FFO and Core FFO per share and unit includes all restricted common shares and LTIP units that participate in distributions and excludes all subordinated performance units and DownREIT subordinated performance units because their effect has been accounted for through the allocation of FFO to the related unitholders based on distributions declared. |
|
(6) |
Represents the effect of adjusting the numerator to consolidated net income prior to GAAP allocations for noncontrolling interests, after deducting preferred share and unit distributions, and before the application of the two-class method and treasury stock method, as described in footnote(5). |
Net Operating Income (dollars in thousands) (unaudited) |
|||||||||||||||
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended December 31, |
|
Year Ended December 31, |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Net income |
$ |
26,131 |
|
|
$ |
108,056 |
|
|
$ |
183,270 |
|
|
$ |
236,988 |
|
(Subtract) add: |
|
|
|
|
|
|
|
||||||||
Management fees and other revenue |
|
(12,381 |
) |
|
|
(9,217 |
) |
|
|
(42,726 |
) |
|
|
(34,411 |
) |
General and administrative expenses |
|
12,629 |
|
|
|
14,956 |
|
|
|
57,606 |
|
|
|
59,281 |
|
Other |
|
3,356 |
|
|
|
2,577 |
|
|
|
13,866 |
|
|
|
11,108 |
|
Depreciation and amortization |
|
48,153 |
|
|
|
53,988 |
|
|
|
189,855 |
|
|
|
221,993 |
|
Interest expense |
|
39,340 |
|
|
|
45,441 |
|
|
|
154,260 |
|
|
|
166,147 |
|
Equity in losses (earnings) of unconsolidated real estate ventures |
|
5,284 |
|
|
|
(2,084 |
) |
|
|
16,075 |
|
|
|
(7,553 |
) |
Loss on early extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
323 |
|
|
|
758 |
|
Acquisition and integration costs |
|
1,465 |
|
|
|
235 |
|
|
|
3,616 |
|
|
|
1,659 |
|
Income tax expense (benefit) |
|
1,477 |
|
|
|
(1,265 |
) |
|
|
3,767 |
|
|
|
1,590 |
|
Gain on sale of self storage properties |
|
— |
|
|
|
(63,910 |
) |
|
|
(63,841 |
) |
|
|
(63,910 |
) |
Non-operating expense (income) |
|
38 |
|
|
|
590 |
|
|
|
(314 |
) |
|
|
1,016 |
|
Net Operating Income |
$ |
125,492 |
|
|
$ |
149,367 |
|
|
$ |
515,757 |
|
|
$ |
594,666 |
|
EBITDA and Adjusted EBITDA (dollars in thousands) (unaudited) |
|||||||||||||||
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended December 31, |
|
Year Ended December 31, |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Net income |
$ |
26,131 |
|
$ |
108,056 |
|
|
$ |
183,270 |
|
|
$ |
236,988 |
|
|
Add: |
|
|
|
|
|
|
|
||||||||
Depreciation and amortization |
|
48,153 |
|
|
|
53,988 |
|
|
|
189,855 |
|
|
|
221,993 |
|
Company's share of unconsolidated real estate venture depreciation and amortization |
|
5,609 |
|
|
|
4,011 |
|
|
|
20,719 |
|
|
|
17,083 |
|
Interest expense |
|
39,340 |
|
|
|
45,441 |
|
|
|
154,260 |
|
|
|
166,147 |
|
Income tax expense (benefit) |
|
1,477 |
|
|
|
(1,265 |
) |
|
|
3,767 |
|
|
|
1,590 |
|
Loss on early extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
323 |
|
|
|
758 |
|
EBITDA |
|
120,710 |
|
|
|
210,231 |
|
|
|
552,194 |
|
|
|
644,559 |
|
Add (subtract): |
|
|
|
|
|
|
|
||||||||
Acquisition costs |
|
328 |
|
|
|
235 |
|
|
|
1,602 |
|
|
|
1,659 |
|
Effect of hypothetical liquidation at book value (HLBV) accounting for unconsolidated 2024 Joint Venture(1) |
|
5,804 |
|
|
|
— |
|
|
|
19,511 |
|
|
|
— |
|
Gain on sale of self storage properties |
|
— |
|
|
|
(63,910 |
) |
|
|
(63,841 |
) |
|
|
(63,910 |
) |
Integration and executive severance costs, excluding equity-based compensation(2) |
|
779 |
|
|
|
— |
|
|
|
1,879 |
|
|
|
— |
|
Casualty-related recoveries(3) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(522 |
) |
Equity-based compensation expense(4) |
|
2,213 |
|
|
|
1,651 |
|
|
|
8,310 |
|
|
|
6,679 |
|
Adjusted EBITDA |
$ |
129,834 |
|
|
$ |
148,207 |
|
|
$ |
519,655 |
|
|
$ |
588,465 |
|
(1) |
Reflects the non-cash impact of applying HLBV to the 2024 Joint Venture, which allocates GAAP income (loss) on a hypothetical liquidation of the underlying joint venture at book value as of the reporting date. |
|
(2) |
Integration costs relate to expenses incurred as a part of the internalization of the PRO structure. Executive severance costs are recorded within the line items "General and administrative expenses" and "Non-operating (expense) income" in our consolidated statements of operations. |
|
(3) |
Casualty-related recoveries in 2023 relate to casualty-related expenses incurred during 2022 and are recorded in the line item "Other" within operating expenses in our consolidated statements of operations. |
|
(4) |
Equity-based compensation expense is a non-cash item recorded within general and administrative expenses and acquisition and integration costs in our consolidated statements of operations. Of the total amounts shown, for the three months and year ended December 31, 2024, |
View source version on businesswire.com: https://www.businesswire.com/news/home/20250226170102/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 caused NSA's significant net income decline in Q4 2024?
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