National Storage Affiliates Trust Reports Third Quarter 2024 Results
National Storage Affiliates Trust reported its Q3 2024 results with net income of $29.8 million, down 30.9% from Q3 2023. Diluted earnings per share decreased to $0.18 from $0.26 year-over-year. Core FFO was $83.9 million ($0.62 per share), showing a 7.5% decrease. Same-store NOI declined 5.3%, driven by a 3.5% decrease in revenues and 1.2% increase in operating expenses. The company completed its PRO structure internalization and issued $350 million in senior unsecured notes at 5.6% interest. Through a joint venture, NSA acquired 18 self-storage properties for $147.9 million.
National Storage Affiliates Trust ha riportato i risultati del terzo trimestre del 2024 con un reddito netto di 29,8 milioni di dollari, in calo del 30,9% rispetto al terzo trimestre del 2023. Gli utili per azione diluiti sono diminuiti a 0,18 dollari rispetto allo 0,26 dell'anno precedente. Il Core FFO è stato di 83,9 milioni di dollari (0,62 dollari per azione), mostrando una diminuzione del 7,5%. L'NOI degli stessi negozi è calato del 5,3%, influenzato da una diminuzione delle entrate del 3,5% e da un aumento delle spese operative dell'1,2%. L'azienda ha completato l'internalizzazione della struttura PRO e ha emesso note non garantite senior per 350 milioni di dollari a un tasso d'interesse del 5,6%. Tramite una joint venture, NSA ha acquisito 18 proprietà di self-storage per 147,9 milioni di dollari.
National Storage Affiliates Trust informó sus resultados del tercer trimestre de 2024, con un ingreso neto de 29,8 millones de dólares, lo que representa una disminución del 30,9% en comparación con el tercer trimestre de 2023. Las ganancias por acción diluidas cayeron a 0,18 dólares desde 0,26 dólares en el mismo período del año anterior. El Core FFO fue de 83,9 millones de dólares (0,62 dólares por acción), mostrando una disminución del 7,5%. El NOI en las mismas tiendas disminuyó un 5,3%, impulsado por una reducción del 3,5% en los ingresos y un aumento del 1,2% en los gastos operativos. La empresa completó la internalización de su estructura PRO y emitió 350 millones de dólares en notas senior no garantizadas a un interés del 5,6%. A través de una joint venture, NSA adquirió 18 propiedades de autoalmacenamiento por 147,9 millones de dólares.
내셔널 스토리지 어필리에이츠 트러스트가 2024년 3분기 실적을 보고했습니다. 순이익이 2980만 달러로, 2023년 3분기 대비 30.9% 감소했습니다. 희석 주당순이익은 0.26달러에서 0.18달러로 감소했습니다. 코어 FFO는 8390만 달러(주당 0.62달러)로 7.5% 감소했습니다. 동일 매장 NOI는 수익이 3.5% 감소하고 운영비가 1.2% 증가하면서 5.3% 감소했습니다. 회사는 PRO 구조 내부화를 완료하고 5.6%의 이자율로 3억 5천만 달러의 선순위 무보증 채권을 발행했습니다. 합작 투자로 NSA는 1억 4790만 달러에 18개의 셀프 스토리지 자산을 인수했습니다.
National Storage Affiliates Trust a annoncé ses résultats du troisième trimestre 2024 avec un revenu net de 29,8 millions de dollars, en baisse de 30,9% par rapport au troisième trimestre 2023. Le bénéfice par action dilué a diminué à 0,18 dollar par rapport à 0,26 dollar l'année précédente. Le Core FFO s'élevait à 83,9 millions de dollars (0,62 dollar par action), affichant une baisse de 7,5%. L'NOI des mêmes magasins a chuté de 5,3%, entraîné par une diminution des revenus de 3,5% et une augmentation des dépenses d'exploitation de 1,2%. L'entreprise a achevé l'internalisation de sa structure PRO et a émis 350 millions de dollars de billets senior non garantis à un intérêt de 5,6%. Via une coentreprise, NSA a acquis 18 propriétés de self-stockage pour 147,9 millions de dollars.
National Storage Affiliates Trust hat die Ergebnisse für das dritte Quartal 2024 bekanntgegeben, mit einem Nettogewinn von 29,8 Millionen Dollar, was einem Rückgang von 30,9% im Vergleich zum dritten Quartal 2023 entspricht. Der verwässerte Gewinn pro Aktie sank auf 0,18 Dollar von 0,26 Dollar im Vorjahr. Der Core FFO betrug 83,9 Millionen Dollar (0,62 Dollar pro Aktie) und zeigte einen Rückgang von 7,5%. Das NOI der bestehenden Geschäfte sank um 5,3%, was auf einen Rückgang der Einnahmen um 3,5% und einen Anstieg der Betriebskosten um 1,2% zurückzuführen ist. Das Unternehmen hat die Internalisierung seiner PRO-Struktur abgeschlossen und 350 Millionen Dollar an unbesicherten Senior-Anleihen mit 5,6% Zinsen emittiert. In einer gemeinsamen Unternehmung erwarb NSA 18 Selbstlagereinheiten für 147,9 Millionen Dollar.
- Acquired 18 self-storage properties worth $147.9 million through joint venture
- Successfully issued $350 million in senior unsecured notes
- Completed internalization of PRO structure, eliminating supervisory and administrative fees
- Net income decreased 30.9% to $29.8 million in Q3 2024
- Same store NOI declined 5.3% year-over-year
- Same store occupancy decreased 270 basis points to 85.6%
- Core FFO per share decreased 7.5% compared to Q3 2023
- Same store revenues decreased 3.5% year-over-year
Insights
The Q3 results reveal concerning trends with net income dropping 30.9% to
However, strategic moves show promise: The PRO internalization should improve operational efficiency, while the
The self-storage sector's competitive pressures are evident in NSA's occupancy decline to
The strategic joint venture acquisitions totaling
Third Quarter 2024 Highlights
-
Reported net income of
$29.8 million 30.9% compared to the third quarter of 2023. Reported diluted earnings per share of$0.18 $0.26 -
Reported core funds from operations ("Core FFO") of
$83.9 million $0.62 7.5% per share compared to the third quarter of 2023. -
Reported a decrease in same store net operating income ("NOI") of
5.3% for the third quarter of 2024 compared to the same period in 2023, driven by a3.5% decrease in same store total revenues and an increase of1.2% in same store property operating expenses. -
Reported same store period-end occupancy of
85.6% as of September 30, 2024, a decrease of 270 basis points compared to September 30, 2023. -
One of the Company's unconsolidated real estate ventures acquired 18 self storage properties for approximately
$147.9 million $37.0 million -
On September 5, 2024, the Company issued
$350.0 million 5.6% and a weighted average maturity of 7.6 years in a private placement with institutional investors. - As previously announced, effective July 1, 2024 (the "Closing Date"), the Company completed the internalization of its 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. As of the Closing Date, the Company will no longer pay supervisory and administrative fees or reimbursements under the previous agreements with the PROs. The Company continues to transition the majority of operations in a phased approach, which has begun and is expected to continue over the 12 month period following the Closing Date, and the Company has executed new asset management and property management agreements with a number of the PROs for all or a part of this transitionary period at newly negotiated management fees. In connection with the internalization, on July 1, 2024, 11,906,167 subordinated performance units and DownREIT subordinated performance units were converted into 17,984,787 OP units and DownREIT OP units.
David Cramer, President and Chief Executive Officer, commented, “We are pleased to announce that all our team members are safe following Hurricanes Helene and Milton. We hope that all affected by these storms remain safe, and we wish them the best as they work their way through the tough recovery period. While several of our facilities in the path of these storms experienced minor damage, largely impacting gates, roofs, and signage, all of our stores are back open for business. Separately, we made meaningful progress on our PRO internalization during the quarter, and I am very proud of our team’s effort on this significant transition for our company. Although still early, we are encouraged by the benefits that we are already starting to realize from implementing consistent marketing and pricing strategies while utilizing a centralized web platform.”
Mr. Cramer further commented, “Results for the quarter were in line with our expectations, as our team did a good job navigating the competitive operating environment while working on the PRO transition. On a positive note, the transaction environment is improving as we are seeing more deals come to market, with sellers becoming more realistic about pricing. As a result, we acquired 18 properties totaling almost
Financial Results
($ in thousands, except per share and unit data) |
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|||||||||||||||
|
2024 |
|
2023 |
|
Change |
|
2024 |
|
2023 |
|
|
Change |
||||||
Net income |
$ |
29,771 |
|
$ |
43,064 |
|
(30.9 |
)% |
|
$ |
157,139 |
|
$ |
128,932 |
|
|
21.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Funds From Operations ("FFO")(1) |
$ |
82,365 |
|
$ |
85,418 |
|
(3.6 |
)% |
|
$ |
224,377 |
|
$ |
258,161 |
|
|
(13.1 |
)% |
Add back acquisition costs |
|
287 |
|
|
341 |
|
(15.8 |
)% |
|
|
1,274 |
|
|
1,424 |
|
|
(10.5 |
)% |
Add integration and executive severance costs(2) |
|
907 |
|
|
— |
|
— |
% |
|
|
1,534 |
|
|
— |
|
|
— |
% |
Subtract casualty-related recoveries(3) |
|
— |
|
|
— |
|
— |
% |
|
|
— |
|
|
(522 |
) |
|
— |
% |
Add loss on early extinguishment of debt |
|
323 |
|
|
— |
|
— |
% |
|
|
323 |
|
|
758 |
|
|
(57.4 |
)% |
Core FFO(1) |
$ |
83,882 |
|
$ |
85,759 |
|
(2.2 |
)% |
|
$ |
227,508 |
|
$ |
259,821 |
|
|
(12.4 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Earnings per share - basic |
$ |
0.18 |
|
$ |
0.28 |
|
(35.7 |
)% |
|
$ |
1.03 |
|
$ |
0.83 |
|
|
24.1 |
% |
Earnings per share - diluted |
$ |
0.18 |
|
$ |
0.26 |
|
(30.8 |
)% |
|
$ |
1.03 |
|
$ |
0.77 |
|
|
33.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
FFO per share and unit(1) |
$ |
0.61 |
|
$ |
0.67 |
|
(9.0 |
)% |
|
$ |
1.81 |
|
$ |
1.99 |
|
|
(9.0 |
)% |
Core FFO per share and unit(1) |
$ |
0.62 |
|
$ |
0.67 |
|
(7.5 |
)% |
|
$ |
1.84 |
|
$ |
2.01 |
|
|
(8.5 |
)% |
(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 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 third 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 September 30, |
|
Nine Months Ended September 30, |
||||||||||||||||||
|
2024 |
|
2023 |
|
Change |
|
2024 |
|
2023 |
|
Change |
||||||||||
Total revenues |
$ |
174,808 |
|
|
$ |
181,211 |
|
|
(3.5 |
)% |
|
$ |
522,861 |
|
|
$ |
536,982 |
|
|
(2.6 |
)% |
Property operating expenses |
|
50,164 |
|
|
|
49,566 |
|
|
1.2 |
% |
|
|
149,659 |
|
|
|
144,674 |
|
|
3.4 |
% |
Net Operating Income (NOI) |
$ |
124,644 |
|
|
$ |
131,645 |
|
|
(5.3 |
)% |
|
$ |
373,202 |
|
|
$ |
392,308 |
|
|
(4.9 |
)% |
NOI Margin |
|
71.3 |
% |
|
|
72.6 |
% |
|
(1.3 |
)% |
|
|
71.4 |
% |
|
|
73.1 |
% |
|
(1.7 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Average Occupancy |
|
86.3 |
% |
|
|
89.2 |
% |
|
(2.9 |
)% |
|
|
86.1 |
% |
|
|
89.4 |
% |
|
(3.3 |
)% |
Average Annualized Rental Revenue Per Occupied Square Foot |
$ |
15.67 |
|
|
$ |
15.81 |
|
|
(0.9 |
)% |
|
$ |
15.72 |
|
|
$ |
15.61 |
|
|
0.7 |
% |
Year-over-year same store total revenues decreased
Year-over-year same store property operating expenses increased
Investment Activity
During the third 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 18 self storage properties for approximately
On July 1, 2024, as part of the internalization of the PRO structure, the Company paid consideration in cash and equity for the purchase of the PRO management contracts and, in some cases, their brand names and related intellectual property at a value of approximately
Balance Sheet
On September 5, 2024, NSA issued
Common Share Dividends
On August 15, 2024, NSA's Board of Trustees declared a quarterly cash dividend of
2024 Guidance
NSA reaffirms its previously provided Core FFO guidance estimates and related assumptions for the year ended December 31, 2024.
|
Current Ranges for
|
|
Actual
|
||||||||
|
Low |
|
High |
|
|||||||
Core FFO per share(1) |
$ |
2.36 |
|
|
$ |
2.44 |
|
|
$ |
2.69 |
|
|
|
|
|
|
|
||||||
Same store operations(2) |
|
|
|
|
|
||||||
Total revenue growth |
|
(3.75 |
)% |
|
|
(2.25 |
)% |
|
|
2.4 |
% |
Property operating expenses growth |
|
3.5 |
% |
|
|
5.0 |
% |
|
|
4.7 |
% |
NOI growth |
|
(6.5 |
)% |
|
|
(4.5 |
)% |
|
|
1.6 |
% |
|
|
|
|
|
|
||||||
General and administrative expenses |
|
|
|
|
|
||||||
General and administrative expenses (excluding equity-based compensation), in millions |
$ |
50.0 |
|
|
$ |
52.0 |
|
|
$ |
52.6 |
|
Equity-based compensation, in millions |
$ |
7.75 |
|
|
$ |
8.25 |
|
|
$ |
6.7 |
|
|
|
|
|
|
|
||||||
Management fees and other revenue, in millions |
$ |
39.5 |
|
|
$ |
41.5 |
|
|
$ |
34.4 |
|
Core FFO from unconsolidated real estate ventures, in millions |
$ |
22.0 |
|
|
$ |
24.0 |
|
|
$ |
24.6 |
|
|
|
|
|
|
|
||||||
Subordinated performance unit distributions, in millions |
$ |
21.6 |
|
|
$ |
21.6 |
|
|
$ |
49.0 |
|
|
|
|
|
|
|
||||||
Acquisitions of self storage properties, in millions |
$ |
100.0 |
|
|
$ |
300.0 |
|
|
$ |
229.5 |
|
|
|||||||
|
Current Ranges for
|
||||||
|
Low |
|
High |
||||
Earnings per share - diluted |
$ |
1.10 |
|
|
$ |
1.17 |
|
Impact of the difference in weighted average number of shares and GAAP accounting for noncontrolling interests, two-class method and treasury stock method |
|
0.18 |
|
|
|
0.11 |
|
Add real estate depreciation and amortization |
|
1.45 |
|
|
|
1.49 |
|
Add (subtract) equity in losses (earnings) of unconsolidated real estate ventures |
|
0.11 |
|
|
|
0.13 |
|
Add NSA's share of FFO of unconsolidated real estate ventures |
|
0.17 |
|
|
|
0.19 |
|
FFO attributable to subordinated unitholders |
|
(0.17 |
) |
|
|
(0.17 |
) |
Less gain on sale of self storage properties |
|
(0.50 |
) |
|
|
(0.50 |
) |
Add integration and executive severance costs |
|
0.01 |
|
|
|
0.01 |
|
Add acquisition costs and NSA's share of unconsolidated real estate venture acquisition costs |
|
0.01 |
|
|
|
0.01 |
|
Core FFO per share and unit |
$ |
2.36 |
|
|
$ |
2.44 |
|
|
|
|
|
||||
(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) 2024 guidance reflects NSA's 2024 same store pool comprising 776 stores. 2023 actual results reflect NSA's 2023 same store pool comprising 724 stores. |
|||||||
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 https://ir.nsastorage.com and as exhibit 99.1 to the Company's Form 8-K furnished to the SEC on October 30, 2024.
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 Daylight Time on Thursday, October 31, 2024 to discuss its third 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, October 31, 2024, 1:00 pm EDT
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 the upcoming Nareit REITworld 2024 Annual Conference on November 18 – 20, 2024 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; and the Company's guidance estimates for the year ended December 31, 2024. 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
|
|||||||||||||||
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
REVENUE |
|
|
|
|
|
|
|
||||||||
Rental revenue |
$ |
174,467 |
|
|
$ |
201,833 |
|
|
$ |
529,218 |
|
|
$ |
595,273 |
|
Other property-related revenue |
|
7,405 |
|
|
|
7,764 |
|
|
|
20,654 |
|
|
|
22,184 |
|
Management fees and other revenue |
|
11,749 |
|
|
|
9,550 |
|
|
|
30,345 |
|
|
|
25,194 |
|
Total revenue |
|
193,621 |
|
|
|
219,147 |
|
|
|
580,217 |
|
|
|
642,651 |
|
OPERATING EXPENSES |
|
|
|
|
|
|
|
||||||||
Property operating expenses |
|
52,712 |
|
|
|
58,581 |
|
|
|
159,607 |
|
|
|
172,158 |
|
General and administrative expenses |
|
13,114 |
|
|
|
15,100 |
|
|
|
44,977 |
|
|
|
44,325 |
|
Depreciation and amortization |
|
47,661 |
|
|
|
55,842 |
|
|
|
141,702 |
|
|
|
168,005 |
|
Other |
|
3,643 |
|
|
|
4,138 |
|
|
|
10,510 |
|
|
|
8,531 |
|
Total operating expenses |
|
117,130 |
|
|
|
133,661 |
|
|
|
356,796 |
|
|
|
393,019 |
|
OTHER INCOME (EXPENSE) |
|
|
|
|
|
|
|
||||||||
Interest expense |
|
(39,575 |
) |
|
|
(43,065 |
) |
|
|
(114,920 |
) |
|
|
(120,706 |
) |
Loss on early extinguishment of debt |
|
(323 |
) |
|
|
— |
|
|
|
(323 |
) |
|
|
(758 |
) |
Equity in (losses) earnings of unconsolidated real estate ventures |
|
(4,712 |
) |
|
|
1,930 |
|
|
|
(10,791 |
) |
|
|
5,469 |
|
Acquisition and integration costs |
|
(1,164 |
) |
|
|
(341 |
) |
|
|
(2,151 |
) |
|
|
(1,424 |
) |
Non-operating (expense) income |
|
(83 |
) |
|
|
(24 |
) |
|
|
352 |
|
|
|
(426 |
) |
Gain on sale of self storage properties |
|
— |
|
|
|
— |
|
|
|
63,841 |
|
|
|
— |
|
Other expense, net |
|
(45,857 |
) |
|
|
(41,500 |
) |
|
|
(63,992 |
) |
|
|
(117,845 |
) |
Income before income taxes |
|
30,634 |
|
|
|
43,986 |
|
|
|
159,429 |
|
|
|
131,787 |
|
Income tax expense |
|
(863 |
) |
|
|
(922 |
) |
|
|
(2,290 |
) |
|
|
(2,855 |
) |
Net income |
|
29,771 |
|
|
|
43,064 |
|
|
|
157,139 |
|
|
|
128,932 |
|
Net income attributable to noncontrolling interests |
|
(11,070 |
) |
|
|
(13,827 |
) |
|
|
(62,349 |
) |
|
|
(41,290 |
) |
Net income attributable to National Storage Affiliates Trust |
|
18,701 |
|
|
|
29,237 |
|
|
|
94,790 |
|
|
|
87,642 |
|
Distributions to preferred shareholders |
|
(5,112 |
) |
|
|
(5,110 |
) |
|
|
(15,332 |
) |
|
|
(13,908 |
) |
Net income attributable to common shareholders |
$ |
13,589 |
|
|
$ |
24,127 |
|
|
$ |
79,458 |
|
|
$ |
73,734 |
|
|
|
|
|
|
|
|
|
||||||||
Earnings per share - basic |
$ |
0.18 |
|
|
$ |
0.28 |
|
|
$ |
1.03 |
|
|
$ |
0.83 |
|
Earnings per share - diluted |
$ |
0.18 |
|
|
$ |
0.26 |
|
|
$ |
1.03 |
|
|
$ |
0.77 |
|
|
|
|
|
|
|
|
|
||||||||
Weighted average shares outstanding - basic |
|
75,760 |
|
|
|
87,004 |
|
|
|
77,047 |
|
|
|
88,263 |
|
Weighted average shares outstanding - diluted |
|
75,760 |
|
|
|
146,118 |
|
|
|
77,047 |
|
|
147,610 |
||
National Storage Affiliates Trust
|
|||||||
|
September 30, |
|
December 31, |
||||
|
2024 |
|
2023 |
||||
ASSETS |
|
|
|
||||
Real estate |
|
|
|
||||
Self storage properties |
$ |
5,821,364 |
|
|
$ |
5,792,174 |
|
Less accumulated depreciation |
|
(1,006,543 |
) |
|
|
(874,359 |
) |
Self storage properties, net |
|
4,814,821 |
|
|
|
4,917,815 |
|
Cash and cash equivalents |
|
69,886 |
|
|
|
64,980 |
|
Restricted cash |
|
8,539 |
|
|
|
22,713 |
|
Debt issuance costs, net |
|
6,343 |
|
|
|
8,442 |
|
Investment in unconsolidated real estate ventures |
|
257,381 |
|
|
|
211,361 |
|
Other assets, net |
|
211,176 |
|
|
|
134,002 |
|
Assets held for sale, net |
|
— |
|
|
|
550,199 |
|
Operating lease right-of-use assets |
|
21,515 |
|
|
|
22,299 |
|
Total assets |
$ |
5,389,661 |
|
|
$ |
5,931,811 |
|
LIABILITIES AND EQUITY |
|
|
|
||||
Liabilities |
|
|
|
||||
Debt financing |
$ |
3,428,304 |
|
|
$ |
3,658,205 |
|
Accounts payable and accrued liabilities |
|
108,424 |
|
|
|
92,766 |
|
Interest rate swap liabilities |
|
7,774 |
|
|
|
3,450 |
|
Operating lease liabilities |
|
23,493 |
|
|
|
24,195 |
|
Deferred revenue |
|
20,778 |
|
|
|
27,354 |
|
Total liabilities |
|
3,588,773 |
|
|
|
3,805,970 |
|
Equity |
|
|
|
||||
Preferred shares of beneficial interest, par value |
|
340,818 |
|
|
|
340,651 |
|
Common shares of beneficial interest, par value |
|
762 |
|
|
|
823 |
|
Additional paid-in capital |
|
1,124,533 |
|
|
|
1,509,563 |
|
Distributions in excess of earnings |
|
(498,787 |
) |
|
|
(449,907 |
) |
Accumulated other comprehensive income |
|
19,543 |
|
|
|
21,058 |
|
Total shareholders' equity |
|
986,869 |
|
|
|
1,422,188 |
|
Noncontrolling interests |
|
814,019 |
|
|
|
703,653 |
|
Total equity |
|
1,800,888 |
|
|
|
2,125,841 |
|
Total liabilities and equity |
$ |
5,389,661 |
|
|
$ |
5,931,811 |
|
Reconciliation of Net Income to FFO and Core FFO |
|||||||||||||||
(in thousands, except per share and unit amounts) (unaudited) |
|||||||||||||||
|
|
|
|
|
|
|
|
||||||||
|
|||||||||||||||
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Net income |
$ |
29,771 |
|
|
$ |
43,064 |
|
|
$ |
157,139 |
|
|
$ |
128,932 |
|
Add (subtract): |
|
|
|
|
|
|
|
||||||||
Real estate depreciation and amortization |
|
47,286 |
|
|
|
55,528 |
|
|
|
140,588 |
|
|
|
167,078 |
|
Equity in losses (earnings) of unconsolidated real estate ventures |
|
4,712 |
|
|
|
(1,930 |
) |
|
|
10,791 |
|
|
|
(5,469 |
) |
Company's share of FFO in unconsolidated real estate ventures |
|
6,164 |
|
|
|
6,217 |
|
|
|
18,026 |
|
|
|
18,542 |
|
Gain on sale of self storage properties |
|
— |
|
|
|
— |
|
|
|
(63,841 |
) |
|
|
— |
|
Distributions to preferred shareholders and unitholders |
|
(5,568 |
) |
|
|
(5,393 |
) |
|
|
(16,704 |
) |
|
|
(14,758 |
) |
FFO attributable to subordinated performance units(1) |
|
— |
|
|
|
(12,068 |
) |
|
|
(21,622 |
) |
|
|
(36,164 |
) |
FFO attributable to common shareholders, OP unitholders, and LTIP unitholders |
|
82,365 |
|
|
|
85,418 |
|
|
|
224,377 |
|
|
|
258,161 |
|
Add (subtract): |
|
|
|
|
|
|
|
||||||||
Acquisition costs |
|
287 |
|
|
|
341 |
|
|
|
1,274 |
|
|
|
1,424 |
|
Integration and executive severance costs(2) |
|
907 |
|
|
|
— |
|
|
|
1,534 |
|
|
|
— |
|
Casualty-related recoveries(3) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(522 |
) |
Loss on early extinguishment of debt |
|
323 |
|
|
|
— |
|
|
|
323 |
|
|
|
758 |
|
Core FFO attributable to common shareholders, OP unitholders, and LTIP unitholders |
$ |
83,882 |
|
|
$ |
85,759 |
|
|
$ |
227,508 |
|
|
$ |
259,821 |
|
|
|
|
|
|
|
|
|
||||||||
Weighted average shares and units outstanding - FFO and Core FFO:(4) |
|
|
|
|
|
|
|
||||||||
Weighted average shares outstanding - basic |
|
75,760 |
|
|
|
87,004 |
|
|
|
77,047 |
|
|
|
88,263 |
|
Weighted average restricted common shares outstanding |
|
19 |
|
|
|
25 |
|
|
|
21 |
|
|
|
26 |
|
Weighted average OP units outstanding |
|
52,740 |
|
|
|
38,030 |
|
|
|
42,709 |
|
|
|
38,504 |
|
Weighted average DownREIT OP unit equivalents outstanding |
|
5,769 |
|
|
|
2,120 |
|
|
|
3,346 |
|
|
|
2,120 |
|
Weighted average LTIP units outstanding |
|
663 |
|
|
|
562 |
|
|
|
676 |
|
|
|
545 |
|
Total weighted average shares and units outstanding - FFO and Core FFO |
|
134,951 |
|
|
|
127,741 |
|
|
|
123,799 |
|
|
|
129,458 |
|
|
|
|
|
|
|
|
|
||||||||
FFO per share and unit |
$ |
0.61 |
|
|
$ |
0.67 |
|
|
$ |
1.81 |
|
|
$ |
1.99 |
|
Core FFO per share and unit |
$ |
0.62 |
|
|
$ |
0.67 |
|
|
$ |
1.84 |
|
|
$ |
2.01 |
|
(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 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 September 30, |
|
Nine Months Ended September 30, |
|||||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|||||||||||
Earnings per share - diluted |
$ |
0.18 |
|
|
$ |
0.26 |
|
|
$ |
1.03 |
|
|
$ |
0.77 |
|
|||
Impact of the difference in weighted average number of shares(5) |
|
(0.08 |
) |
|
|
0.04 |
|
|
|
(0.39 |
) |
|
|
0.11 |
|
|||
Impact of GAAP accounting for noncontrolling interests, two-class method and treasury stock method(6) |
|
0.08 |
|
|
|
— |
|
|
|
0.49 |
|
|
|
— |
|
|||
Add real estate depreciation and amortization |
|
0.35 |
|
|
|
0.44 |
|
|
|
1.14 |
|
|
|
1.29 |
|
|||
Add (subtract) equity in losses (earnings) of unconsolidated real estate ventures |
|
0.03 |
|
|
|
(0.02 |
) |
|
|
0.08 |
|
|
|
(0.04 |
) |
|||
Add Company's share of FFO in unconsolidated real estate ventures |
|
0.05 |
|
|
|
0.05 |
|
|
|
0.15 |
|
|
|
0.14 |
|
|||
Subtract gain on sale of self storage properties |
|
— |
|
|
|
— |
|
|
|
(0.52 |
) |
|
|
— |
|
|||
FFO attributable to subordinated performance unitholders |
|
— |
|
|
|
(0.10 |
) |
|
|
(0.17 |
) |
|
|
(0.28 |
) |
|||
FFO per share and unit |
|
0.61 |
|
|
|
0.67 |
|
|
|
1.81 |
|
|
|
1.99 |
|
|||
Add acquisition costs |
|
— |
|
|
|
— |
|
|
|
0.01 |
|
|
|
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 |
$ |
0.62 |
|
|
$ |
0.67 |
|
|
$ |
1.84 |
|
|
$ |
2.01 |
|
|||
(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 only be 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 September 30, |
|
Nine Months Ended September 30, |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Net income |
$ |
29,771 |
|
|
$ |
43,064 |
|
|
$ |
157,139 |
|
|
$ |
128,932 |
|
(Subtract) add: |
|
|
|
|
|
|
|
||||||||
Management fees and other revenue |
|
(11,749 |
) |
|
|
(9,550 |
) |
|
|
(30,345 |
) |
|
|
(25,194 |
) |
General and administrative expenses |
|
13,114 |
|
|
|
15,100 |
|
|
|
44,977 |
|
|
|
44,325 |
|
Other |
|
3,643 |
|
|
|
4,138 |
|
|
|
10,510 |
|
|
|
8,531 |
|
Depreciation and amortization |
|
47,661 |
|
|
|
55,842 |
|
|
|
141,702 |
|
|
|
168,005 |
|
Interest expense |
|
39,575 |
|
|
|
43,065 |
|
|
|
114,920 |
|
|
|
120,706 |
|
Equity in losses (earnings) of unconsolidated real estate ventures |
|
4,712 |
|
|
|
(1,930 |
) |
|
|
10,791 |
|
|
|
(5,469 |
) |
Loss on early extinguishment of debt |
|
323 |
|
|
|
— |
|
|
|
323 |
|
|
|
758 |
|
Acquisition and integration costs |
|
1,164 |
|
|
|
341 |
|
|
|
2,151 |
|
|
|
1,424 |
|
Income tax expense |
|
863 |
|
|
|
922 |
|
|
|
2,290 |
|
|
|
2,855 |
|
Gain on sale of self storage properties |
|
— |
|
|
|
— |
|
|
|
(63,841 |
) |
|
|
— |
|
Non-operating expense (income) |
|
83 |
|
|
|
24 |
|
|
|
(352 |
) |
|
|
426 |
|
Net Operating Income |
$ |
129,160 |
|
|
$ |
151,016 |
|
|
$ |
390,265 |
|
|
$ |
445,299 |
|
EBITDA and Adjusted EBITDA
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Net income |
$ |
29,771 |
|
|
$ |
43,064 |
|
|
$ |
157,139 |
|
|
$ |
128,932 |
|
Add: |
|
|
|
|
|
|
|
||||||||
Depreciation and amortization |
|
47,661 |
|
|
|
55,842 |
|
|
|
141,702 |
|
|
|
168,005 |
|
Company's share of unconsolidated real estate ventures depreciation and amortization |
|
5,418 |
|
|
|
4,287 |
|
|
|
15,110 |
|
|
|
13,073 |
|
Interest expense |
|
39,575 |
|
|
|
43,065 |
|
|
|
114,920 |
|
|
|
120,706 |
|
Income tax expense |
|
863 |
|
|
|
922 |
|
|
|
2,290 |
|
|
|
2,855 |
|
Loss on early extinguishment of debt |
|
323 |
|
|
|
— |
|
|
|
323 |
|
|
|
758 |
|
EBITDA |
|
123,611 |
|
|
|
147,180 |
|
|
|
431,484 |
|
|
|
434,329 |
|
Add (subtract): |
|
|
|
|
|
|
|
||||||||
Acquisition costs |
|
287 |
|
|
|
341 |
|
|
|
1,274 |
|
|
|
1,424 |
|
Effect of hypothetical liquidation at book value (HLBV) accounting for unconsolidated 2024 Joint Venture(1) |
|
5,458 |
|
|
|
— |
|
|
|
13,707 |
|
|
|
— |
|
Gain on sale of self storage properties |
|
— |
|
|
|
— |
|
|
|
(63,841 |
) |
|
|
— |
|
Integration and executive severance costs, excluding equity-based compensation(2) |
|
877 |
|
|
|
— |
|
|
|
1,100 |
|
|
|
— |
|
Casualty-related recoveries(3) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(522 |
) |
Equity-based compensation expense |
|
1,911 |
|
|
|
1,702 |
|
|
|
6,097 |
|
|
|
5,028 |
|
Adjusted EBITDA |
$ |
132,144 |
|
|
$ |
149,223 |
|
|
$ |
389,821 |
|
|
$ |
440,259 |
|
(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 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. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241030797986/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
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