National Storage Affiliates Trust (NSA) Q1 2025 earnings summary

Executive summary

• Net income for Q1 2025 was $19.5 million, down significantly year-over-year, mainly due to lower gains on property sales, reduced rental revenue from property contributions to joint ventures, and asset sales.

• First quarter results met expectations, with a 130 basis point sequential improvement in same-store revenue growth year-over-year and sequential rate growth offsetting softer occupancy.

• Internalization of the PRO structure was completed in July 2024, reducing management fees, integrating operations, and yielding G&A and personnel cost savings.

• Portfolio as of March 31, 2025: 1,075 operated properties (816 consolidated, 259 managed for joint ventures) across 41 states and Puerto Rico.

• Asset recycling included three acquisitions ($13.5–$14M) and two dispositions ($9.8–$10M), with proceeds used to pay down debt.

Financial highlights

• Core FFO per share was $0.54, down 10% year-over-year, reflecting lower same-store NOI and higher interest expense.

• Net income attributable to common shareholders was $7.9 million, down from $53.9 million in Q1 2024; diluted EPS was $0.10 vs. $0.65 year-over-year.

• Same-store revenues declined 3% year-over-year, with average occupancy dropping from 85.8% to 83.9% and a 1% decrease in average revenue per sq ft.

• Same-store NOI fell 5.7% year-over-year, with NOI margin at 69.0% vs. 71.0% prior year.

• Operating expenses rose 3.7%, mainly from higher marketing, R&M, and utilities, partially offset by lower personnel costs.

Outlook and guidance

• 2025 Core FFO per share guidance reaffirmed at $2.30–$2.38; full-year same-store revenue growth expected between -1.25% and 1.25%, and NOI growth between -2.8% and 0.0%.

• Guidance assumes a moderately better spring leasing season, with improving pricing and occupancy through summer.

• Second quarter revenue and NOI expected to remain negative year-over-year, with positive inflection anticipated in the back half of the year.

• Acquisitions and dispositions guidance for 2025: $100–$300 million each.

• Diluted EPS guidance for 2025: $0.63–$0.69.