National Storage Affiliates Trust (NSA) Q2 2024 earnings summary

Executive summary

• Q2 2024 results reflect ongoing pressure from a competitive environment, with reduced customer demand due to a muted housing market and new supply, especially in Sun Belt markets.

• Total revenue for Q2 2024 decreased 11.6% year-over-year to $190.4 million, primarily due to property sales and joint venture contributions.

• Net income for Q2 2024 was $32.3 million, down 29% year-over-year; diluted EPS was $0.16, down from $0.28.

• Internalization of the PRO structure was completed July 1, 2024, converting 11.9 million subordinated performance units into 18.0 million OP units and eliminating certain fees.

• Significant share repurchases in H1 2024 totaled 7.4 million shares for $275.2 million.

Financial highlights

• Core FFO per share for Q2 2024 was $0.62, down 8.8% year-over-year, mainly due to lower same-store NOI.

• Same-store revenue declined 2.8%, with a 60 bps increase in rent per sq ft offset by a 320 bps drop in average occupancy.

• Adjusted EBITDA for Q2 2024 was $127.8 million, down from $148.3 million in Q2 2023.

• Average occupancy declined to 86.1% in Q2 2024 from 89.0% in Q2 2023.

• Dividend per common share was $0.56 in Q2 2024, unchanged year-over-year.

Outlook and guidance

• Full-year 2024 Core FFO per share now projected at $2.36–$2.44, revised downward due to persistent weak demand and Sun Belt market challenges.

• 2024 same store total revenue expected to decline 3.75% to 2.25%; NOI expected to decline 6.5% to 4.5%.

• Guidance assumes continued competitive pressures, with no material inflection in demand expected in the back half of the year.

• Street rates expected to improve from double-digit declines to high single-digit declines by year-end.

• Occupancy expected to remain below prior year, with a negative 200 bps average delta in the back half.