Overview

National Storage Affiliates Trust (NSA) is a self-storage real estate investment trust (REIT) that owns and operates a geographically diversified portfolio of self-storage properties across the United States. As of December 31, 2024, NSA owned 815 self-storage properties comprising approximately 52.2 million rentable square feet, configured in approximately 409,000 storage units.

Financial Performance

NSA’s total revenue, including management fees and other revenue, decreased by $87.7 million, or 10.2%, for the year ended December 31, 2024, compared to the year ended December 31, 2023. This decrease was primarily attributable to the sale and contribution of properties to joint ventures. Rental revenue decreased by $93.7 million, or 11.8%, while other property-related revenue decreased by $2.3 million, or 7.8%. However, management fees and other revenue increased by $8.3 million, or 24.2%, due to increased property management and acquisition fees from the new joint ventures.

Property operating expenses decreased by $17.1 million, or 7.5%, primarily due to the reduction in properties owned. General and administrative expenses decreased by $1.7 million, or 2.8%, while depreciation and amortization decreased by $32.1 million, or 14.5%, also due to the decrease in properties owned.

Interest expense decreased by $11.9 million, or 7.2%, due to a decrease in variable-rate debt outstanding. Equity in losses of unconsolidated real estate ventures increased by $23.6 million, primarily due to the non-cash impact of applying the hypothetical liquidation at book value (HLBV) method to the 2024 Joint Venture.

Strengths and Weaknesses

NSA’s key strengths include its geographically diversified portfolio, strategic joint venture partnerships, and growing management fees and other revenue. However, the company faces challenges from the sale and contribution of properties, which has led to decreases in rental revenue and operating income.

Outlook

NSA’s future performance will depend on its ability to effectively manage its portfolio, continue growing through joint ventures and acquisitions, and maintain strong occupancy and rental rates. The company’s liquidity position remains strong, with access to various financing sources to fund future growth and capital needs. However, the company’s results may continue to be impacted by the timing of property transactions and the performance of its unconsolidated joint ventures.