National Storage Affiliates Trust Reports Third Quarter 2025 Results

GREENWOOD VILLAGE, Colo.--( BUSINESS WIRE)--National Storage Affiliates Trust ("NSA" or the "Company") (NYSE: NSA) today reported the Company’s third quarter 2025 results.

Third Quarter 2025 Highlights

Highlights Subsequent to Quarter-End

David Cramer, President and Chief Executive Officer, commented, "During the third quarter, the majority of our markets showed sequential improvement in same store revenue growth, which supports our view that fundamentals have found a bottom and are beginning to trend upward."

Mr. Cramer further commented, “While the current operating environment remains competitive, the backdrop for self storage going forward is the best that we have seen in a number of years. Given the potential positive impacts on the housing market from expected interest rates cuts and a more favorable supply environment, we expect to see an improvement in self storage fundamentals supported by an improving supply/demand balance in 2026 and beyond. Our focus over the past several quarters has been to best position NSA to take advantage of this expected upturn through capital recycling and improved operational efficiency. We are ready to execute in this environment and excited about the opportunities ahead.”

Financial Results

($ in thousands, except per share and unit data)

Three Months Ended September 30,

Nine Months Ended September 30,

2025

2024

Change

2025

2024

Change

Net income

29,016

29,771

(2.5

79,493

157,139

(49.4

Funds From Operations ("FFO") (1)

75,070

82,365

(8.9

218,389

224,377

(2.7

Add acquisition costs

302

287

5.2

1,162

1,274

(8.8

Add integration and executive severance costs (2)

1,137

907

25.4

4,762

1,534

210.4

Add loss on early extinguishment of debt

—

323

—

323

—

Core FFO (1)

76,509

83,882

(8.8

224,313

227,508

(1.4

Earnings per share - basic and diluted

0.17

0.18

(5.6

0.46

1.03

(55.3

FFO per share and unit (1)

0.56

0.61

(8.2

1.61

1.81

(11.0

Core FFO per share and unit (1)

0.57

0.62

(8.1

1.66

1.84

(9.8

(1)

Non-GAAP financial measures, including FFO, Core FFO and NOI, are defined in the Glossary in the supplemental financial information and, where appropriate, reconciliations of these measures and other non-GAAP financial measures to their most directly comparable GAAP measures are included in the Schedules to this press release and in the supplemental financial information.

(2)

Executive severance costs relate to the nine months ended September 30, 2024 and are recorded within the line items "General and administrative expenses" and "Non-operating income" in our consolidated statements of operations. Integration costs relate to expenses incurred as a part of the internalization of the PRO structure.

Net income decreased $0.8 million for the third quarter of 2025 and $77.6 million for the nine months ended September 30, 2025 ("year-to-date") as compared to the same periods in 2024. The year-to-date decrease in net income was primarily due to larger gains on the sale of self storage properties recognized during 2024. Additionally, the decrease in net income for both the third quarter of 2025 and year-to-date were a result of lower NOI, driven by property dispositions and negative same store NOI growth. These impacts for the third quarter of 2025 and year-to-date were partially offset by an increase in management fees and other revenue of $0.6 million and $6.4 million, respectively, and a decrease in general and administrative expenses of $1.7 million and $7.6 million, respectively, compared to the same periods in 2024.

The decrease in FFO and Core FFO per share and unit for the third quarter of 2025 and year-to-date was primarily driven by a decrease in same store NOI and an increase in interest expense. These impacts were partially offset by decreased management fees paid to former PROs, reflected within general and administrative expenses, following the internalization of the PRO structure.

Same Store Operating Results (771 Stores)

($ in thousands, except per square foot data)

Three Months Ended September 30,

Nine Months Ended September 30,

2025

2024

Change

2025

2024

Change

Total revenues

170,250

174,848

(2.6

507,882

522,819

(2.9

Property operating expenses

52,830

50,362

4.9

157,795

151,172

4.4

Net Operating Income (NOI)

117,420

124,486

(5.7

350,087

371,647

(5.8

NOI Margin

69.0

71.2

(2.2

68.9

71.1

(2.2

Average Occupancy

85.0

86.5

(1.5

84.4

86.2

(1.8

Average Annualized Rental Revenue Per Occupied Square Foot

15.67

15.73

(0.4

15.68

15.78

(0.6

Year-over-year same store total revenue decreased 2.6% for the third quarter of 2025 and 2.9% year-to-date as compared to the same periods in 2024. The decrease for the third quarter was driven primarily by a 150 basis point decrease in average occupancy and a 0.4% decrease in average annualized rental revenue per occupied square foot. The year-to-date same store total revenue decrease was driven primarily by a 180 basis point decrease in average occupancy and a 0.6% decrease in average annualized rental revenue per occupied square foot. Markets which generated above portfolio average same store total revenue growth include: Portland, San Juan, PR and Houston. Markets which generated below portfolio average same store total revenue growth include: Riverside-San Bernardino, Atlanta and Phoenix.

Year-over-year same store property operating expenses increased 4.9% for the third quarter of 2025 and 4.4% year-to-date as compared to the same periods in 2024. The increase was primarily driven by increases in marketing, property tax expense and utilities, partially offset by decreases in insurance costs.

Investment and Disposition Activity

During the third quarter, a joint venture between a subsidiary of NSA and a state pension fund advised by Heitman Capital Management, LLC (the "2023 Joint Venture") acquired two self storage properties for approximately $32.0 million. The 2023 Joint Venture financed the acquisition with capital contributions from the venture members, of which NSA contributed approximately $8.0 million.

During the third quarter, NSA completed the sale of two wholly-owned self storage properties, consisting of approximately 83,000 rentable square feet configured in approximately 600 storage units for approximately $6.5 million.

Balance Sheet

As of September 30, 2025, NSA has approximately $543.6 million of available capacity on its $950.0 million revolving line of credit.

Common Share Dividends

On August 13, 2025, NSA's Board of Trustees declared a quarterly cash dividend of $0.57 per common share. The third quarter 2025 dividend was paid on September 30, 2025 to shareholders of record as of September 15, 2025.

2025 Guidance

NSA reaffirms its previously provided Core FFO guidance estimates and related assumptions for the year ended December 31, 2025.

Current Ranges for

Full Year 2025

Actual

Results

for Full

Year 2024

Low

High

Core FFO per share (1)

$2.17

$2.23

$2.44

Same store operations (2)

Total revenue growth

(3.0)%

(2.0)%

(3.0)%

Property operating expenses growth

3.25%

4.25%

3.7%

NOI growth

(5.75)%

(4.25)%

(5.5)%

General and administrative expenses

General and administrative expenses (excluding equity-based compensation), in millions

$42.0

$44.0

$49.7

Equity-based compensation, in millions

$8.0

$8.5

$7.9

Management fees and other revenue, in millions

$49.0

$51.0

$42.7

Core FFO from unconsolidated real estate ventures, in millions

$20.5

$22.5

$24.2

Acquisitions - consolidated and joint venture (at share), in millions (3)

$50.0

$100.0

$101.8

Dispositions - consolidated and joint venture (at share), in millions (3)

$100.0

$300.0

$273.1

Current Ranges for

Full Year 2025

Low

High

Earnings per share - diluted

$0.71

$0.74

Impact of the difference in weighted average number of shares and GAAP accounting for noncontrolling interests, two-class method and treasury stock method

(0.17)

(0.22)

Add real estate depreciation and amortization

1.43

1.46

Add (subtract) equity in losses (earnings) of unconsolidated real estate ventures

0.08

0.09

Add NSA's share of FFO of unconsolidated real estate ventures

0.15

0.17

Less gain on sale of self storage properties

(0.08)

Add acquisition costs and NSA's share of unconsolidated real estate venture acquisition costs

0.01

0.02

Add integration costs

0.04

0.05

Core FFO per share and unit

$2.17

$2.23

(1)

The table above provides a reconciliation of the range of estimated earnings per share - diluted to estimated Core FFO per share and unit.

(2)

2025 guidance reflects NSA's 2025 same store pool comprising 771 stores. 2024 actual results reflect NSA's 2024 same store pool comprising 776 stores.

(3)

NSA's actual results for full year 2024 exclude the contribution of wholly-owned self storage properties into the 2024 Joint Venture for approximately $346.5 million.

Supplemental Financial Information

The full text of this earnings release and supplemental financial information, including certain financial information referenced in this release, are available on NSA's website at www.nsastorage.com and as exhibit 99.1 to the Company's Form 8-K furnished to the SEC on November 3, 2025.

Non-GAAP Financial Measures & Glossary

This press release contains certain non-GAAP financial measures. These non-GAAP measures are presented because NSA's management believes these measures help investors understand NSA's business, performance and ability to earn and distribute cash to its shareholders by providing perspectives not immediately apparent from net income (loss). These measures are also frequently used by securities analysts, investors and other interested parties. The presentations of FFO, Core FFO and NOI in this press release are not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. In addition, NSA's method of calculating these measures may be different from methods used by other companies, and, accordingly, may not be comparable to similar measures as calculated by other companies that do not use the same methodology as NSA. These measures, and other words and phrases used herein, are defined in the Glossary in the supplemental financial information and, where appropriate, reconciliations of these measures and other non-GAAP financial measures to their most directly comparable GAAP measures are included in the Schedules to this press release and in the supplemental financial information.

Quarterly Teleconference and Webcast

The Company will host a conference call at 1:00 pm Eastern Time on Tuesday, November 4, 2025 to discuss its third quarter 2025 financial results. At the conclusion of the call, management will accept questions from certified financial analysts. All other participants are encouraged to listen to a webcast of the call by accessing the link found on the Company's website at www.nsastorage.com.

Conference Call and Webcast:

Date/Time: Tuesday, November 4, 2025, 1:00 pm ET

Webcast available at: www.nsastorage.com.

Domestic (Toll Free US & Canada): 877.407.9711

International: 412.902.1014

A replay of the webcast will be available for 30 days on NSA's website at www.nsastorage.com.

Upcoming Industry Conferences

NSA management is scheduled to participate in the upcoming Jefferies Real Estate Conference on November 17- 19, 2025 in Miami, Florida and the Nareit REITworld 2025 Annual Conference on December 8 - 11, 2025 in Dallas, Texas.

About National Storage Affiliates Trust

National Storage Affiliates Trust is a real estate investment trust headquartered in Greenwood Village, Colorado, focused on the ownership, operation and acquisition of self storage properties predominantly located within the top 100 metropolitan statistical areas throughout the United States. As of September 30, 2025, the Company held ownership interests in and operated 1,069 self storage properties, located in 37 states and Puerto Rico with approximately 69.8 million rentable square feet. NSA is one of the largest owners and operators of self storage properties among public and private companies in the United States. For more information, please visit the Company’s website at www.nsastorage.com. NSA is included in the MSCI US REIT Index (RMS/RMZ), the Russell 1000 Index of Companies and the S&P MidCap 400 Index.

NOTE REGARDING FORWARD LOOKING STATEMENTS

Certain statements contained in this press release constitute forward-looking statements as such term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and such statements are intended to be covered by the safe harbor provided by the same. Forward-looking statements are subject to substantial risks and uncertainties, many of which are difficult to predict and are generally beyond the Company's control. These forward-looking statements include information about possible or assumed future results of the Company's business, financial condition, liquidity, results of operations, plans and objectives. Changes in any circumstances may cause the Company's actual results to differ significantly from those expressed in any forward-looking statement. When used in this release, the words "believe," "expect," "anticipate," "estimate," "plan," "continue," "intend," "should," "may" or similar expressions are intended to identify forward-looking statements. Statements regarding the following subjects, among others, may be forward-looking: market trends in the Company's industry, interest rates, inflation, the debt and lending markets or the general economy; the Company's business and investment strategy; the acquisition and disposition of properties, including those under contract and the Company's ability to execute on its acquisition pipeline; the timing of acquisitions or dispositions under contract; the Company's ability to realize the benefits from the internalization of the PRO structure and portfolio optimization strategy; and the Company's guidance estimates for the year ending December 31, 2025. For a further list and description of such risks and uncertainties, see the Company's most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed with the Securities and Exchange Commission, and the other documents filed by the Company with the Securities and Exchange Commission. The forward-looking statements, and other risks, uncertainties and factors are based on the Company's beliefs, assumptions and expectations of its future performance, taking into account all information currently available to the Company. Forward-looking statements are not predictions of future events. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

National Storage Affiliates Trust

Consolidated Statements of Operations

(in thousands, except per share amounts) (unaudited)

Three Months Ended September 30,

Nine Months Ended September 30,

2025

2024

2025

2024

REVENUE

Rental revenue

169,907

174,467

509,220

529,218

Other property-related revenue

6,459

7,405

19,977

20,654

Management fees and other revenue

12,336

11,749

36,701

30,345

Total revenue

188,702

193,621

565,898

580,217

OPERATING EXPENSES

Property operating expenses

55,347

52,712

166,078

159,607

General and administrative expenses

11,460

13,114

37,409

44,977

Depreciation and amortization

46,885

47,661

142,613

141,702

Other

4,101

3,643

13,077

10,510

Total operating expenses

117,793

117,130

359,177

356,796

OTHER (EXPENSE) INCOME

Interest expense

(40,549

)

(39,575

)

(122,293

)

(114,920

)

Loss on early extinguishment of debt

—

(323

)

—

(323

)

Equity in earnings (losses) of unconsolidated real estate ventures

463

(4,712

)

(9,221

)

(10,791

)

Acquisition and integration costs

(1,439

)

(1,164

)

(5,924

)

(2,151

)

Non-operating income (expense)

503

(83

)

1,325

352

Gain on sale of self storage properties

—

10,996

63,841

Other expense, net

(41,022

)

(45,857

)

(125,117

)

(63,992

)

Income before income taxes

29,887

30,634

81,604

159,429

Income tax expense

(871

)

(863

)

(2,111

)

(2,290

)

Net income

29,016

29,771

79,493

157,139

Net income attributable to noncontrolling interests

(10,589

)

(11,070

)

(28,601

)

(62,349

)

Net income attributable to National Storage Affiliates Trust

18,427

18,701

50,892

94,790

Distributions to preferred shareholders

(5,117

)

(5,112

)

(15,345

)

(15,332

)

Net income attributable to common shareholders

13,310

13,589

35,547

79,458

Earnings per share - basic and diluted

0.17

0.18

0.46

1.03

Weighted average shares outstanding - basic and diluted

76,746

75,760

76,532

77,047

National Storage Affiliates Trust

Consolidated Balance Sheets

(dollars in thousands, except per share amounts)

(unaudited)

September 30,

December 31,

2025

2024

ASSETS

Real estate

Self storage properties

5,841,786

5,864,134

Less accumulated depreciation

(1,175,690

)

(1,051,638

)

Self storage properties, net

4,666,096

4,812,496

Cash and cash equivalents

26,295

50,408

Restricted cash

1,571

345

Debt issuance costs, net

3,533

5,632

Investment in unconsolidated real estate ventures

235,385

246,193

Other assets, net

189,055

218,482

Operating lease right-of-use assets

20,367

20,906

Total assets

5,142,302

5,354,462

LIABILITIES AND EQUITY

Liabilities

Debt financing

3,403,399

3,449,087

Accounts payable and accrued liabilities

109,632

98,657

Interest rate swap liabilities

4,481

471

Operating lease liabilities

22,394

22,888

Deferred revenue

20,355

20,012

Total liabilities

3,560,261

3,591,115

Equity

Preferred shares of beneficial interest, par value $0.01 per share. 50,000,000 authorized, 14,704,845 and 14,695,458 issued (in series) and outstanding at September 30, 2025 and December 31, 2024, respectively, at liquidation preference

341,130

340,895

Common shares of beneficial interest, par value $0.01 per share. 250,000,000 shares authorized, 76,940,983 and 76,344,661 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively

769

763

Additional paid-in capital

1,252,488

1,249,426

Distributions in excess of earnings

(626,122

)

(530,652

)

Accumulated other comprehensive income

4,860

15,548

Total shareholders' equity

973,125

1,075,980

Noncontrolling interests

608,916

687,367

Total equity

1,582,041

1,763,347

Total liabilities and equity

5,142,302

5,354,462

Reconciliation of Net Income to FFO and Core FFO

(in thousands, except per share and unit amounts) (unaudited)

Three Months Ended September 30,

Nine Months Ended September 30,

2025

2024

2025

2024

Net income

29,016

29,771

79,493

157,139

Add (subtract):

Real estate depreciation and amortization

46,458

47,286

141,256

140,588

Equity in (earnings) losses of unconsolidated real estate ventures

(463

)

4,712

9,221

10,791

Company's share of FFO in unconsolidated real estate ventures

5,627

6,164

16,119

18,026

Gain on sale of self storage properties

—

(10,996

)

(63,841

)

Distributions to preferred shareholders and unitholders

(5,568

)

(5,568

)

(16,704

)

(16,704

)

FFO attributable to subordinated performance units (1)

—

(21,622

)

FFO attributable to common shareholders, OP unitholders, and LTIP unitholders

75,070

82,365

218,389

224,377

Add (subtract):

Acquisition costs

302

287

1,162

1,274

Integration and executive severance costs (2)

1,137

907

4,762

1,534

Loss on early extinguishment of debt

—

323

—

323

Core FFO attributable to common shareholders, OP unitholders, and LTIP unitholders

76,509

83,882

224,313

227,508

Weighted average shares and units outstanding - FFO and Core FFO: (3)

Weighted average shares outstanding - basic

76,746

75,760

76,532

77,047

Weighted average restricted common shares outstanding

Weighted average OP units outstanding

51,833

52,740

52,030

42,709

Weighted average DownREIT OP unit equivalents outstanding

5,769

3,346

Weighted average LTIP units outstanding

851

663

887

676

Total weighted average shares and units outstanding - FFO and Core FFO

135,222

134,951

135,241

123,799

FFO per share and unit

0.56

0.61

1.61

1.81

Core FFO per share and unit

0.57

0.62

1.66

1.84

(1)

Amounts represent distributions declared for subordinated performance unitholders and DownREIT subordinated performance unitholders for the periods presented.

(2)

(3)

NSA combines OP units and DownREIT OP units with common shares because, after the applicable lock-out periods, OP units in the Company's operating partnership are redeemable for cash or, at NSA's option, exchangeable for common shares on a one-for-one basis and DownREIT OP units are also redeemable for cash or, at NSA's option, exchangeable for OP units in the Company's operating partnership on a one-for-one basis, subject to certain adjustments in each case. LTIP units may also, under certain circumstances, be convertible into or exchangeable for common shares (or other units that are convertible into or exchangeable for common shares). All subordinated performance units and DownREIT subordinated performance units were converted into OP units on July 1, 2024, in connection with the internalization of the PRO structure. See footnote (4) for additional discussion of subordinated performance units, DownREIT subordinated performance units, and LTIP units in the calculation of FFO and Core FFO per share and unit.

Reconciliation of Earnings Per Share - Diluted to FFO and Core FFO Per Share and Unit

(in thousands, except per share and unit amounts) (unaudited)

Three Months Ended September 30,

Nine Months Ended September 30,

2025

2024

2025

2024

Earnings per share - diluted

0.17

0.18

0.46

1.03

Impact of the difference in weighted average number of shares (4)

(0.07

)

(0.08

)

(0.19

)

(0.39

)

Impact of GAAP accounting for noncontrolling interests, two-class method and treasury stock method (5)

0.08

0.19

0.49

Add real estate depreciation and amortization

0.34

0.35

1.04

1.14

Add equity in losses of unconsolidated real estate ventures

—

0.03

0.07

0.08

Add Company's share of FFO in unconsolidated real estate ventures

0.04

0.05

0.12

0.15

Subtract gain on sale of self storage properties

—

(0.08

)

(0.52

)

FFO attributable to subordinated performance unitholders

—

(0.17

)

FFO per share and unit

0.56

0.61

1.61

1.81

Add acquisition costs

—

0.01

Add integration and executive severance costs

0.01

0.04

0.02

Add loss on early extinguishment of debt

—

Core FFO per share and unit

0.57

0.62

1.66

1.84

(4)

Adjustment accounts for the difference between the weighted average number of shares used to calculate diluted earnings per share and the weighted average number of shares used to calculate FFO and Core FFO per share and unit. Diluted earnings per share is calculated using the two-class method for the company's restricted common shares and the treasury stock method for certain unvested LTIP units, and assumes the conversion of vested LTIP units into OP units on a one-for-one basis and the hypothetical conversion of subordinated performance units and DownREIT subordinated performance units into OP units, even though such units may have only been convertible into OP units (i) after a lock-out period and (ii) upon certain events or conditions. All outstanding subordinated performance units and DownREIT subordinated performance units were converted into OP units on July 1, 2024, in connection with the internalization of the PRO structure. The computation of weighted average shares and units for FFO and Core FFO per share and unit includes all restricted common shares and LTIP units that participate in distributions and excludes all subordinated performance units and DownREIT subordinated performance units because their effect has been accounted for through the allocation of FFO to the related unitholders based on distributions declared.

(5)

Represents the effect of adjusting the numerator to consolidated net income prior to GAAP allocations for noncontrolling interests, after deducting preferred share and unit distributions, and before the application of the two-class method and treasury stock method, as described in footnote (4).

Net Operating Income

(dollars in thousands) (unaudited)

Three Months Ended September 30,

Nine Months Ended September 30,

2025

2024

2025

2024

Net income

29,016

29,771

79,493

157,139

(Subtract) add:

Management fees and other revenue

(12,336

)

(11,749

)

(36,701

)

(30,345

)

General and administrative expenses

11,460

13,114

37,409

44,977

Depreciation and amortization

46,885

47,661

142,613

141,702

Other

4,101

3,643

13,077

10,510

Interest expense

40,549

39,575

122,293

114,920

Loss on early extinguishment of debt

—

323

—

323

Equity in (earnings) losses of unconsolidated real estate ventures

(463

)

4,712

9,221

10,791

Acquisition and integration costs

1,439

1,164

5,924

2,151

Non-operating (income) expense

(503

)

(1,325

)

(352

)

Gain on sale of self storage properties

—

(10,996

)

(63,841

)

Income tax expense

871

863

2,111

2,290

Net Operating Income

121,019

129,160

363,119

390,265

EBITDA and Adjusted EBITDA

(dollars in thousands) (unaudited)

Three Months Ended September 30,

Nine Months Ended September 30,

2025

2024

2025

2024

Net income

29,016

29,771

79,493

157,139

Add:

Depreciation and amortization

46,885

47,661

142,613

141,702

Company's share of unconsolidated real estate venture depreciation and amortization

5,193

5,418

15,821

15,110

Interest expense

40,549

39,575

122,293

114,920

Income tax expense

871

863

2,111

2,290

Loss on early extinguishment of debt

—

323

—

323

EBITDA

122,514

123,611

362,331

431,484

Add (subtract):

Acquisition costs

302

287

1,162

1,274

Effect of hypothetical liquidation at book value (HLBV) accounting for unconsolidated 2024 Joint Venture (1)

(30

)

5,458

9,518

13,707

Gain on sale of self storage properties

—

(10,996

)

(63,841

)

Integration and executive severance costs, excluding equity-based compensation (2)

—

877

1,388

1,100

Equity-based compensation expense (3)

3,112

1,911

9,329

6,097

Adjusted EBITDA

125,898

132,144

372,732

389,821

(1)

Reflects the non-cash impact of applying HLBV to the 2024 Joint Venture, which allocates GAAP income (loss) on a hypothetical liquidation of the underlying joint venture at book value as of the reporting date.

(2)

(3)

Equity-based compensation expense is a non-cash item recorded within general and administrative expenses and acquisition and integration costs in our consolidated statements of operations. For the three and nine months ended September 30, 2025, $1.1 million and $3.4 million, respectively, relates to the internalization of the PRO structure and is included in acquisition and integration costs.