National Storage Affiliates Trust (NSA) Q1 2025 earnings summary

Executive summary

• First quarter 2025 results met expectations, with sequential improvement in same-store revenue growth and positive momentum in key markets like Portland and Houston; net income was $19.5 million, down from $95.1 million in Q1 2024, mainly due to lower gains on property sales and reduced rental revenue following property contributions to joint ventures and asset sales.

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

• Internalization of the PRO structure was completed in July 2024, reducing management fees and integrating operations, with early signs of improved performance in marketing, pricing, and staffing efficiency.

• Portfolio as of March 31, 2025: 816 consolidated properties (52.2 million rentable sq. ft.), 259 properties managed for joint ventures, and 1,075 total operated properties across 41 states and Puerto Rico.

• Management noted sequential improvement in same-store revenue and NOI growth from Q4 2024, with positive momentum in street rates and contract rents into the spring leasing season.

Financial highlights

• Net income attributable to common shareholders was $7.9 million, down from $53.9 million in Q1 2024.

• Total revenue decreased 4.0% year-over-year to $188.4 million, with rental revenue down 6.0% to $169.5 million, mainly due to property contributions to joint ventures and asset sales.

• Same-store revenues declined 3% year-over-year, driven by a 190 basis point drop in average occupancy and a 1% decrease in average revenue per sq ft; same-store NOI fell 5.7% year-over-year, but showed sequential improvement from the previous quarter.

• Adjusted EBITDA for Q1 2025 was $123.0 million, down from $129.9 million in Q1 2024.

• Dividend per common share: $0.57 declared for Q1 2025.

Outlook and guidance

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

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

• The high end of guidance assumes a housing market recovery, while the low end assumes muted seasonality and pricing power.

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

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