National Storage (NSR) H2 2024 earnings summary

Executive summary

• IFRS profit for FY24 was $230.3 million, with underlying earnings up 8.7% to $154.2 million and underlying EPS at 11.3 cents, down 1.7% year-over-year.

• Total assets increased 13.3% to $5.1 billion, with net tangible assets per security rising to $2.52.

• Portfolio expanded to 254 centres, up by 20, with 29 acquisitions and 11 developments completed.

• Market leadership maintained in Australasia by number of centres and net lettable area.

Financial highlights

• Storage revenue grew 7% to $323.7 million, driven by REVPAM and NLA growth.

• Underlying earnings rose 9% to $154.2 million; operating margin steady at 66%.

• Group REVPAM increased 3.1% to $275/m²; group rate up 7.1% to $339/m².

• Group occupancy declined 2.9% to 81.9%.

• Gearing increased to 26.6%, still at the lower end of the 25-40% target range.

Outlook and guidance

• FY25 underlying EPS guidance set at a minimum of 11.8 cents per security.

• Underlying earnings expected to exceed $163 million in FY25.

• Distribution payout ratio guided at 90-100% of underlying earnings.

• Guidance assumes no material changes in market or operating conditions.