National Storage Affiliates Trust (NSA) Q2 2025 earnings summary

Executive summary

• Sequential improvement in occupancy and rent trends in Q2 2025, but same-store NOI and Core FFO per share declined due to macroeconomic headwinds, elevated interest rates, inflation, new supply, and delayed PRO-internalization benefits.

• Q2 2025 revenue decreased 0.8% year-over-year to $188.8M, with net income attributable to common shareholders rising to $14.4M from $12.0M.

• Internalization of the PRO structure reduced general and administrative expenses and increased management fee revenue.

• Asset sales included 10 properties in non-core markets, exiting five states year-to-date, with proceeds used to pay down the revolver; two properties acquired for $11.4M.

• Portfolio as of June 30, 2025: 1,067 operated properties, including 807 consolidated and 260 managed for joint ventures.

Financial highlights

• Core FFO per share was $0.55 for Q2 2025, down 11.3% year-over-year; six-month Core FFO per share/unit was $1.22, up from $1.20.

• Same-store revenues declined 3% year-over-year, driven by a 2.4 percentage point drop in average occupancy and a 0.3% decrease in average revenue per square foot.

• Expense growth was 4.6% in Q2, led by property taxes, marketing, repairs, and utilities, partially offset by lower personnel costs.

• Same-store NOI growth was -6.1% for the quarter; NOI margin for Q2 2025 was 68.8%.

• Net debt to EBITDA was 6.8x at quarter end; debt to total assets at June 30, 2025 was 65.7%.

Outlook and guidance

• 2025 Core FFO per share guidance revised to $2.17–$2.23, down from prior $2.30–$2.38.

• 2025 same-store revenue growth expected at (3.0)% to (2.0)%; NOI growth at (5.75)% to (4.25)%.

• Guidance assumes seasonal occupancy trends, continued use of discounts/concessions, and less dependence on macro improvement.

• Acquisitions guidance: $50–$100 million; dispositions: $100–$300 million for 2025.

• Focus remains on operational efficiency, integration of internalized management, and leveraging joint venture growth opportunities.