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NSA
🇺🇸 NYSE:NSA
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Jun 30, 2024

NSA Q2 2024 Earnings Report

Reported second quarter results, highlighting a decrease in net income and same store NOI, offset by strategic initiatives.

Key Takeaways

National Storage Affiliates Trust reported a decrease in net income and Core FFO for the second quarter of 2024, driven by a decline in same store NOI. The company is focused on the internalization of the PRO structure and has made progress on strategic initiatives including asset sales, debt repayment, joint ventures, and share repurchases.

Net income decreased by 29.0% compared to the second quarter of 2023, with a reported net income of $32.3 million.

Core FFO decreased by 8.8% per share compared to the second quarter of 2023, with a reported Core FFO of $71.2 million, or $0.62 per share.

Same store NOI decreased by 5.6% compared to the same period in 2023, driven by a decrease in same store total revenues and an increase in same store property operating expenses.

Same store period-end occupancy was 87.0% as of June 30, 2024, a decrease of 280 basis points compared to June 30, 2023.

Total Revenue
$190M
Previous year: $216M
-11.6%
EPS
$0.62
Previous year: $0.68
-8.8%
Occupancy at Period End
87%
Previous year: 90%
-3.3%
Rentable Square Feet
68.78M
Previous year: 72.83M
-5.6%
Number of Properties
1.05K
Previous year: 1.12K
-5.8%
Gross Profit
$91.5M
Previous year: $158M
-42.2%
Cash and Equivalents
$67M
Previous year: $44M
+52.3%
Free Cash Flow
$115M
Total Assets
$5.32B
Previous year: $6.16B
-13.6%

NSA

NSA

NSA Revenue by Segment

Forward Guidance

NSA's updated Core FFO guidance estimates for the year ended December 31, 2024, are primarily driven by lower same store growth assumptions. The Core FFO per share guidance incorporates an estimated weighted average share count of approximately 135.0 million beginning July 1, 2024, or approximately 126.6 million for the full year 2024.

Positive Outlook

  • General and administrative expenses (excluding equity-based compensation) are expected to be $50.0 to $52.0 million.
  • Management fees and other revenue are expected to be $39.5 to $41.5 million.
  • Core FFO from unconsolidated real estate ventures is expected to be $22.0 to $24.0 million.
  • Acquisitions of self storage properties are expected to be $100.0 to $300.0 million.
  • Equity-based compensation is expected to be $7.75 to $8.25 million.

Challenges Ahead

  • Total revenue growth is expected to be (3.75)% to (2.25)%.
  • Property operating expenses growth is expected to be 3.5% to 5.0%.
  • NOI growth is expected to be (6.5)% to (4.5)%.
  • Subordinated performance unit distributions are expected to be $21.6 million.
  • Core FFO per share is expected to be $2.36 to $2.44.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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