Dec 31, 2022

NSA Q4 2022 Earnings Report

National Storage Affiliates Trust reported an increase in net income and core FFO, driven by acquisitions and same store NOI growth.

Key Takeaways

National Storage Affiliates Trust reported a net income of $50.4 million for Q4 2022, a 17.4% increase compared to Q4 2021. Core FFO increased by 10.9% per share, and same store NOI grew by 9.4%.

Net income increased by 17.4% to $50.4 million for the fourth quarter of 2022.

Core FFO increased by 10.9% per share to $0.71 for the fourth quarter of 2022.

Same store NOI increased by 9.4% for the fourth quarter of 2022.

Acquired two wholly-owned self storage properties for approximately $39.9 million during the fourth quarter of 2022.

Total Revenue
$209M
Previous year: $174M
+20.2%
EPS
$0.71
Previous year: $0.64
+10.9%
Occupancy at Period End
90.5%
Previous year: 94.8%
-4.5%
Gross Profit
$155M
Previous year: $129M
+20.4%
Cash and Equivalents
$35.3M
Previous year: $25M
+41.2%
Total Assets
$6.07B
Previous year: $5.56B
+9.1%

NSA

NSA

NSA Revenue by Segment

Forward Guidance

NSA provided Core FFO per share guidance for the year ended December 31, 2023, with a range of $2.78 to $2.86. Same store total revenue growth is expected to be between 3.75% and 5.25%, and property operating expenses growth between 4.50% and 6.00%.

Positive Outlook

  • Core FFO per share is projected to be between $2.78 and $2.86.
  • Same store NOI growth is expected to be between 3.00% and 5.50%.
  • Management fees and other revenue are projected to be between $28.0 million and $30.0 million.
  • Core FFO from unconsolidated real estate ventures is expected to be between $25.0 million and $26.5 million.
  • Acquisitions of self storage properties are projected to be between $200.0 million and $400.0 million.

Challenges Ahead

  • Property operating expenses growth is expected to be between 4.50% and 6.00%.
  • General and administrative expenses (excluding equity-based compensation) are projected to be between $53.0 million and $55.0 million.
  • Equity-based compensation is projected to be between $6.5 million and $7.0 million.
  • Subordinated performance unit distributions are projected to be between $51.0 million and $53.0 million.
  • Guidance reflects NSA's 2023 same store pool comprising 834 stores, compared to 628 stores in 2022.