National Storage Affiliates Trust
Q1 2025 Earnings
Market Reaction
Did NSA Beat Earnings? Q1 2025 Results
National Storage Affiliates delivered a mixed first quarter for 2025, posting a meaningful earnings miss even as revenue nudged ahead of expectations. Diluted EPS came in at $0.10, falling 34.60% short of the $0.15 consensus estimate, while revenue of $188.35 million edged 0.76% above forecasts despite sliding 4.0% year-over-year as property dispositions and soft same-store performance weighed on the top line. The most significant pressure point was the self-storage sector's persistent occupancy erosion, with average occupancy dropping 190 basis points to 83.9% and same-store NOI contracting 5.7% to $116.41 million. The July 2024 internalization of NSA's participating regional operator structure also diluted per-share metrics by expanding the unit count from roughly 120.7 million to 135.2 million. CEO David Cramer expressed confidence that the same-store growth trough is behind the company, and NSA reaffirmed full-year Core FFO guidance of $2.30 to $2.38 per share, though some observers remain watchful given the company's elevated payout ratio and ongoing operational headwinds.
- Same store total revenue decreased 3.0% year-over-year driven by 190 basis point decrease in average occupancy and 1.0% decrease in average annualized rental revenue per occupied square foot
- Same store property operating expenses increased 3.7% driven by increases in marketing, repairs and maintenance, and utilities expense, partially offset by decreases in personnel costs
- Same store NOI decreased 5.7% year-over-year
- Management fees and other revenue increased $3.1 million year-over-year
- General and administrative expenses decreased $2.5 million year-over-year following PRO internalization
- Interest expense increased to $40.5 million from $38.1 million
- Markets generating above-average same store revenue growth: Portland, Houston, San Juan PR
- Markets generating below-average same store revenue growth: Riverside-San Bernardino, Atlanta, Sarasota
“Our first quarter results were in-line with our expectations. We're encouraged with the sequential improvement in the pace of year-over-year same store revenue and NOI growth from the fourth quarter, implying that the troughs in same store growth are now behind us. Although occupancy levels remain muted, street rates and in-place contract rents have grown sequentially every month of this year through April, providing momentum into the spring leasing season.”
National Storage Affiliates CEO, on the earnings call
Forward Guidance & Outlook
NSA reaffirmed its full-year 2025 guidance: Core FFO per share of $2.30 to $2.38, same store total revenue growth of -1.25% to 1.25%, same store property operating expenses growth of 3.0% to 4.0%, same store NOI growth of -2.8% to 0.0%, diluted EPS of $0.63 to $0.69, G&A expenses (excluding equity-based compensation) of $45.5M to $47.5M, management fees and other revenue of $49.5M to $51.5M, and acquisitions and dispositions each of $100M to $300M. The 2025 same store pool comprises 771 stores.
NSA YoY Financials
NSA Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.