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Jun 30
NSA Q2 2025 Earnings Report
National Storage Affiliates Trust reported its second quarter 2025 results, showing a decrease in net income and Core FFO per share compared to the same period in the prior year, primarily due to lower same store NOI and increased interest expense.
Key Takeaways
National Storage Affiliates Trust experienced a challenging second quarter in 2025, with net income decreasing by 4.1% to $31.0 million and diluted EPS rising to $0.19. Core FFO per share declined by 11.3% to $0.55, largely due to a 6.1% decrease in same store net operating income, driven by lower revenues and higher operating expenses. The company noted ongoing softness in storage demand and increased use of concessions impacting results, but also highlighted sequential improvements in contract rate and occupancy.
Net income for Q2 2025 was $30.958 million, a 4.1% decrease compared to Q2 2024.
Diluted earnings per share increased to $0.19 in Q2 2025 from $0.16 in Q2 2024.
Same store net operating income (NOI) decreased by 6.1% in Q2 2025, primarily due to a 3.0% decrease in same store total revenues and a 4.6% increase in same store property operating expenses.
Same store period-end occupancy was 85.0% as of June 30, 2025, a decrease of 220 basis points year-over-year.
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CapyFin.com Forward Guidance
National Storage Affiliates Trust has revised its full-year 2025 Core FFO guidance downwards, primarily due to lower same store growth assumptions. The company now expects Core FFO per share to be between $2.17 and $2.23, compared to the prior range of $2.30 to $2.38.
Positive Outlook
- Management expects to realize the full benefits from the internalization of the PRO structure.
- Positive momentum is being observed from enhanced marketing and revenue management strategies.
- The company anticipates continued acquisitions, with a guidance range of $50.0 million to $100.0 million for consolidated and joint venture acquisitions.
- Management fees and other revenue are projected to increase, with a guidance range of $49.0 million to $51.0 million.
- Core FFO from unconsolidated real estate ventures is expected to contribute between $20.5 million and $22.5 million.
Challenges Ahead
- Core FFO per share guidance has been lowered, indicating a less optimistic outlook for profitability.
- Same store total revenue growth is projected to be negative, ranging from -3.0% to -2.0%.
- Same store property operating expenses are expected to increase by 3.25% to 4.25%.
- Same store NOI growth is anticipated to be negative, ranging from -5.75% to -4.25%.
- Macroeconomic conditions have fallen short of expectations, particularly low existing home sales and ongoing supply pressure in Sunbelt markets.