NSA National Storage Affiliates Trust

National Storage Affiliates Trust ("NSA" or the "Company") (NYSE: NSA) today reported the Company’s first quarter 2024 results.

First Quarter 2024 Highlights

• Reported net income of $95.1 million for the first quarter of 2024, an increase of 135.4% compared to the first quarter of 2023. Reported diluted earnings per share of $0.65 for the first quarter of 2024 compared to $0.24 for the first quarter of 2023.
• Reported core funds from operations ("Core FFO") of $72.4 million, or $0.60 per share for the first quarter of 2024, a decrease of 9.1% per share compared to the first quarter of 2023.
• Reported a decrease in same store net operating income ("NOI") of 3.7% for the first quarter of 2024 compared to the same period in 2023, driven by a 1.5% decrease in same store total revenues and an increase of 4.5% in same store property operating expenses.
• Reported same store period-end occupancy of 85.9% as of March 31, 2024, a decrease of 350 basis points compared to March 31, 2023.
• Repurchased 5,491,925 of the Company's common shares for approximately $203.5 million under the previously announced share repurchase program.
• As previously announced, entered into a new joint venture (the "2024 Joint Venture") agreement between a subsidiary of NSA (the "2024 JV NSA Member") and a subsidiary of Heitman Capital Management LLC (the "2024 JV Investor" and together with the 2024 JV NSA Member, the "2024 JV Members"), with NSA as a 25% owner and the 2024 JV Investor as a 75% owner. NSA contributed 56 wholly-owned properties for approximately $346.5 million to the 2024 Joint Venture. A subsidiary of NSA serves as the manager of the 2024 Joint Venture.
• Completed the sale of 71 wholly-owned self storage properties for approximately $540.0 million pursuant to a previously announced agreement entered into during the fourth quarter of 2023. 32 of the properties were sold in December 2023, while the remaining 39 properties were sold during the first quarter of 2024.
• As previously announced, repaid $130.0 million of Term Loan Tranche B. After this repayment and taking into account the Company's interest rate swaps, the Company has no variable rate debt exposure other than the revolving line of credit.

Highlights Subsequent to Quarter-End

• Through April 29, 2024, repurchased an additional 1,908,397 of the Company's common shares for approximately $71.6 million under the previously announced share repurchase program.

David Cramer, President and Chief Executive Officer, commented, “We completed a handful of strategic milestones during the first quarter, which places NSA in a position to thrive as business fundamentals and capital markets improve. We’re excited about the medium- and long-term outlook for both NSA and the self storage sector in general.”

Mr. Cramer further commented, “Our team performed well in what remains a challenging operating environment characterized by continued pressure on street rates and significant competition to attract new customers. Rental volume and occupancy are increasing from the seasonal trough in February, but the next few months will be key determinants of full-year performance.”

Financial Results

($ in thousands, except per share and unit data)

Three Months Ended March 31,

 

2024

 

2023

 

Growth

Net income

$

95,088

 

$

40,392

 

135.4

%

 

 

 

 

 

 

Funds From Operations ("FFO")(1)

$

71,896

 

 

$

84,266

 

 

(14.7

)%

Add back acquisition costs

 

507

 

 

 

844

 

 

(39.9

)%

Add loss on early extinguishment of debt

 

—

 

 

 

758

 

 

—

%

Core FFO(1)

$

72,403

 

 

$

85,868

 

 

(15.7

)%

 

 

 

 

 

 

Earnings per share - basic

$

0.67

 

 

$

0.28

 

 

139.3

%

Earnings per share - diluted

$

0.65

 

 

$

0.24

 

 

170.8

%

 

 

 

 

 

 

FFO per share and unit(1)

$

0.60

 

 

$

0.64

 

 

(6.3

)%

Core FFO per share and unit(1)

$

0.60

 

 

$

0.66

 

 

(9.1

)%

(1)

Non-GAAP financial measures, including FFO, Core FFO and NOI, are defined in the Glossary in the supplemental financial information and, where appropriate, reconciliations of these measures and other non-GAAP financial measures to their most directly comparable GAAP measures are included in the Schedules to this press release and in the supplemental financial information.

Net income increased $54.7 million for the first quarter of 2024 as compared to the same period in 2023. The increase resulted primarily from the gain on the sales of 39 self storage properties to a third party and 56 self storage properties contributed to the 2024 Joint Venture during the first quarter of 2024.

The decrease in FFO and Core FFO for the first quarter of 2024 was primarily due to a decrease in NOI, primarily driven by the sales of (i) 32 self storage properties to a third party in December 2023, (ii) 39 self storage properties to a third party in the first quarter of 2024, and (iii) 56 self storage properties contributed to the 2024 Joint Venture in the first quarter of 2024, and a decrease in same store NOI. The decrease in FFO and Core FFO per share and unit was largely driven by a decrease in same store NOI, an increase in general and administrative expenses, and a decrease in NSA's share of FFO from its unconsolidated real estate ventures.

Same Store Operating Results (776 Stores)

($ in thousands, except per square foot data)

Three Months Ended March 31,

 

2024

 

2023

 

Growth

Total revenues

$

173,871

 

 

$

176,528

 

 

(1.5

)%

Property operating expenses

 

49,655

 

 

 

47,530

 

 

4.5

%

Net Operating Income (NOI)

$

124,216

 

 

$

128,998

 

 

(3.7

)%

NOI Margin

 

71.4

%

 

 

73.1

%

 

(1.7

)%

 

 

 

 

 

 

Average Occupancy

 

85.6

%

 

 

89.4

%

 

(3.8

)%

Average Annualized Rental Revenue Per Occupied Square Foot

$

15.80

 

 

$

15.43

 

 

2.4

%

Year-over-year same store total revenues decreased 1.5% for the first quarter of 2024 as compared to the same period in 2023. The decrease was driven primarily by a 380 basis point decrease in average occupancy, partially offset by a 2.4% increase in average annualized rental revenue per occupied square foot. Markets which generated above portfolio average same store total revenue growth for the first quarter of 2024 include: Oklahoma City, San Juan and Tulsa. Markets which generated below portfolio average same store total revenue growth for the first quarter of 2024 include: Portland, Riverside and Phoenix.

Year-over-year same store property operating expenses increased 4.5% for the first quarter of 2024. The increase primarily resulted from increases in insurance and marketing expenses.

Disposition and Investment Activity

During the first quarter, NSA sold 39 self storage properties, consisting of approximately 2.4 million rentable square feet configured in approximately 18,000 storage units for approximately $265.1 million. The 39 self storage properties were part of an agreement to sell 71 wholly-owned self storage properties, 32 of which were sold in December 2023.

During the first quarter, NSA formed the 2024 Joint Venture with the 2024 JV Investor. On February 13, 2024, NSA contributed to the 2024 Joint Venture 56 self storage properties located across seven states, consisting of approximately 3.2 million rentable square feet configured in over 24,000 storage units for approximately $346.5 million. The 2024 Joint Venture was capitalized with approximately $140.8 million in equity (approximately $35.2 million from NSA in exchange for a 25% ownership interest and approximately $105.6 million from the 2024 JV Investor in exchange for a 75% ownership interest) and proceeds from a $210.0 million interest-only secured debt financing with an interest rate of 6.05% per annum and a term of five years. All of the properties in the 2024 Joint Venture continue to be operated by NSA's management platform.

Balance Sheet

During the first quarter, NSA repurchased 5,491,925 of the Company's common shares for approximately $203.5 million under the previously announced share repurchase program. As of April 29, 2024, NSA has repurchased the remaining $71.6 million of the total $275.0 million authorized under the program.

During the first quarter, NSA repaid $130.0 million of Term loan Tranche B, reducing the outstanding balance on the term loan to $145.0 million. After this repayment and taking into account NSA's interest rate swaps, NSA has no variable rate debt other than the revolving line of credit. As of April 29, 2024, NSA has approximately $736.6 million of capacity remaining on its revolving line of credit.

Common Share Dividends

On February 15, 2024, NSA's Board of Trustees declared a quarterly cash dividend of $0.56 per common share, representing a 1.8% increase from the first quarter 2023. The first quarter 2024 dividend was paid on March 29, 2024 to shareholders of record as of March 15, 2024.

2024 Guidance

NSA reaffirms its previously provided Core FFO guidance estimates and related assumptions for the year ended December 31, 2024:

 

Current Ranges for

Full Year 2024

 

Actual

Results for

Full Year

2023

 

Low

 

High

 

Core FFO per share(1)

$2.40

 

$2.56

 

$2.69

 

 

 

 

 

 

Same store operations(2)

 

 

 

 

 

Total revenue growth

(4.0)%

 

0.0%

 

2.4%

Property operating expenses growth

3.0%

 

5.0%

 

4.7%

NOI growth

(6.0)%

 

(2.0)%

 

1.6%

 

 

 

 

 

 

General and administrative expenses

 

 

 

 

 

General and administrative expenses (excluding equity-based compensation), in millions

$54.5

 

$56.5

 

$52.6

Equity-based compensation, in millions

$7.25

 

$7.75

 

$6.7

 

 

 

 

 

 

Management fees and other revenue, in millions

$32.0

 

$34.0

 

$34.4

Core FFO from unconsolidated real estate ventures, in millions

$23.5

 

$25.5

 

$24.6

 

 

 

 

 

 

Subordinated performance unit distributions, in millions

$40.0

 

$44.0

 

$49.0

 

 

 

 

 

 

Acquisitions of self storage properties, in millions

$100.0

 

$300.0

 

$229.5

 

Current Ranges for

Full Year 2024

 

Low

 

High

Earnings per share - diluted

$1.31

 

$1.48

Impact of the difference in weighted average number of shares and GAAP accounting for noncontrolling interests, two-class method and treasury stock method

0.05

 

(0.01)

Add real estate depreciation and amortization

1.57

 

1.66

Add (subtract) equity in losses (earnings) of unconsolidated real estate ventures

0.11

 

0.09

Add NSA's share of FFO of unconsolidated real estate ventures

0.20

 

0.22

FFO attributable to subordinated unitholders

(0.34)

 

(0.38)

Less gain on sale of self storage properties

(0.51)

 

(0.51)

Add acquisition costs and NSA's share of unconsolidated real estate venture acquisition costs

0.01

 

0.01

Core FFO per share and unit

$2.40

 

$2.56

 

 

 

 

(1) The table above provides a reconciliation of the range of estimated earnings per share - diluted to estimated Core FFO per share and unit.

(2) 2024 guidance reflects NSA's 2024 same store pool comprising 776 stores. 2023 actual results reflect NSA's 2023 same store pool comprising 724 stores.

Supplemental Financial Information

The full text of this earnings release and supplemental financial information, including certain financial information referenced in this release, are available on NSA's website at http://ir.nationalstorageaffiliates.com/quarterly-reporting and as exhibit 99.1 to the Company's Form 8-K furnished to the SEC on May 1, 2024.

Non-GAAP Financial Measures & Glossary

This press release contains certain non-GAAP financial measures. These non-GAAP measures are presented because NSA's management believes these measures help investors understand NSA's business, performance and ability to earn and distribute cash to its shareholders by providing perspectives not immediately apparent from net income (loss). These measures are also frequently used by securities analysts, investors and other interested parties. The presentations of FFO, Core FFO and NOI in this press release are not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. In addition, NSA's method of calculating these measures may be different from methods used by other companies, and, accordingly, may not be comparable to similar measures as calculated by other companies that do not use the same methodology as NSA. These measures, and other words and phrases used herein, are defined in the Glossary in the supplemental financial information and, where appropriate, reconciliations of these measures and other non-GAAP financial measures to their most directly comparable GAAP measures are included in the Schedules to this press release and in the supplemental financial information.

Quarterly Teleconference and Webcast

The Company will host a conference call at 1:00 pm Eastern Time on Thursday, May 2, 2024 to discuss its first quarter 2024 financial results. At the conclusion of the call, management will accept questions from certified financial analysts. All other participants are encouraged to listen to a webcast of the call by accessing the link found on the Company's website at www.nationalstorageaffiliates.com.

Conference Call and Webcast:

Date/Time: Thursday, May 2, 2024, 1:00 pm ET

Webcast available at: www.nationalstorageaffiliates.com

Domestic (Toll Free US & Canada): 877.407.9711

International: 412.902.1014

A replay of the webcast will be available for 30 days on NSA's website at www.nationalstorageaffiliates.com.

Upcoming Industry Conference

NSA management is scheduled to participate in Nareit REITweek: 2024 Investor Conference on June 4 - 6, 2024 in New York, New York.

About National Storage Affiliates Trust

National Storage Affiliates Trust is a real estate investment trust headquartered in Greenwood Village, Colorado, focused on the ownership, operation and acquisition of self storage properties predominantly located within the top 100 metropolitan statistical areas throughout the United States. As of March 31, 2024, the Company held ownership interests in and operated 1,050 self storage properties located in 42 states and Puerto Rico with approximately 68.7 million rentable square feet. NSA is one of the largest owners and operators of self storage properties among public and private companies in the United States. For more information, please visit the Company’s website at www.nationalstorageaffiliates.com. NSA is included in the MSCI US REIT Index (RMS/RMZ), the Russell 1000 Index of Companies and the S&P MidCap 400 Index.

NOTE REGARDING FORWARD LOOKING STATEMENTS

Certain statements contained in this press release constitute forward-looking statements as such term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and such statements are intended to be covered by the safe harbor provided by the same. Forward-looking statements are subject to substantial risks and uncertainties, many of which are difficult to predict and are generally beyond the Company's control. These forward-looking statements include information about possible or assumed future results of the Company's business, financial condition, liquidity, results of operations, plans and objectives. Changes in any circumstances may cause the Company's actual results to differ significantly from those expressed in any forward-looking statement. When used in this release, the words "believe," "expect," "anticipate," "estimate," "plan," "continue," "intend," "should," "may" or similar expressions are intended to identify forward-looking statements. Statements regarding the following subjects, among others, may be forward-looking: market trends in the Company's industry, interest rates, inflation, the debt and lending markets or the general economy; the Company's business and investment strategy; the acquisition of properties, including those under contract and the Company's ability to execute on its acquisition pipeline; the timing of acquisitions under contract; the internalization of retiring participating regional operators ("PROs") into the Company; and the Company's guidance estimates for the year ended December 31, 2024. For a further list and description of such risks and uncertainties, see the Company's most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed with the Securities and Exchange Commission, and the other documents filed by the Company with the Securities and Exchange Commission. The forward-looking statements, and other risks, uncertainties and factors are based on the Company's beliefs, assumptions and expectations of its future performance, taking into account all information currently available to the Company. Forward-looking statements are not predictions of future events. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

National Storage Affiliates Trust

Consolidated Statements of Operations

(in thousands, except per share amounts)

(unaudited)

 

 

Three Months Ended March 31,

 

2024

 

2023

REVENUE

 

 

 

Rental revenue

$

180,382

 

 

$

194,129

 

Other property-related revenue

 

6,692

 

 

 

6,807

 

Management fees and other revenue

 

9,074

 

 

 

7,057

 

Total revenue

 

196,148

 

 

 

207,993

 

OPERATING EXPENSES

 

 

 

Property operating expenses

 

54,694

 

 

 

56,483

 

General and administrative expenses

 

15,674

 

 

 

14,821

 

Depreciation and amortization

 

47,331

 

 

 

55,458

 

Other

 

3,492

 

 

 

1,173

 

Total operating expenses

 

121,191

 

 

 

127,935

 

OTHER INCOME (EXPENSE)

 

 

 

Interest expense

 

(38,117

)

 

 

(37,948

)

Loss on early extinguishment of debt

 

—

 

 

 

(758

)

Equity in (losses) earnings of unconsolidated real estate ventures

 

(1,630

)

 

 

1,678

 

Acquisition costs

 

(507

)

 

 

(844

)

Non-operating income (expense)

 

98

 

 

 

(598

)

Gain on sale of self storage properties

 

61,173

 

 

 

—

 

Other income (expense), net

 

21,017

 

 

 

(38,470

)

Income before income taxes

 

95,974

 

 

 

41,588

 

Income tax expense

 

(886

)

 

 

(1,196

)

Net income

 

95,088

 

 

 

40,392

 

Net income attributable to noncontrolling interests

 

(36,061

)

 

 

(11,433

)

Net income attributable to National Storage Affiliates Trust

 

59,027

 

 

 

28,959

 

Distributions to preferred shareholders

 

(5,110

)

 

 

(3,962

)

Net income attributable to common shareholders

$

53,917

 

 

$

24,997

 

 

 

 

 

Earnings per share - basic

$

0.67

 

 

$

0.28

 

Earnings per share - diluted

$

0.65

 

 

$

0.24

 

 

 

 

 

Weighted average shares outstanding - basic

 

80,236

 

 

 

89,499

 

Weighted average shares outstanding - diluted

 

138,148

 

 

 

148,622

 

National Storage Affiliates Trust

Consolidated Balance Sheets

(dollars in thousands, except per share amounts)

(unaudited)

 

 

March 31,

 

December 31,

 

2024

 

2023

ASSETS

 

 

 

Real estate

 

 

 

Self storage properties

$

5,797,653

 

 

$

5,792,174

 

Less accumulated depreciation

 

(919,723

)

 

 

(874,359

)

Self storage properties, net

 

4,877,930

 

 

 

4,917,815

 

Cash and cash equivalents

 

64,233

 

 

 

64,980

 

Restricted cash

 

24,847

 

 

 

22,713

 

Debt issuance costs, net

 

7,731

 

 

 

8,442

 

Investment in unconsolidated real estate ventures

 

240,025

 

 

 

211,361

 

Other assets, net

 

130,015

 

 

 

134,002

 

Assets held for sale, net

 

—

 

 

 

550,199

 

Operating lease right-of-use assets

 

22,084

 

 

 

22,299

 

Total assets

$

5,366,865

 

 

$

5,931,811

 

LIABILITIES AND EQUITY

 

 

 

Liabilities

 

 

 

Debt financing

$

3,285,547

 

 

$

3,658,205

 

Accounts payable and accrued liabilities

 

87,875

 

 

 

92,766

 

Interest rate swap liabilities

 

—

 

 

 

3,450

 

Operating lease liabilities

 

24,009

 

 

 

24,195

 

Deferred revenue

 

22,362

 

 

 

27,354

 

Total liabilities

 

3,419,793

 

 

 

3,805,970

 

Equity

 

 

 

Series A Preferred shares of beneficial interest, par value $0.01 per share. 50,000,000 authorized, 9,017,588 and 9,017,588 issued and outstanding at March 31, 2024 and December 31, 2023, respectively, at liquidation preference

 

225,439

 

 

 

225,439

 

Series B Preferred shares of beneficial interest, par value $0.01 per share. 7,000,000 authorized, 5,668,128 and 5,668,128 issued and outstanding at March 31, 2024 and December 31, 2023, respectively, at liquidation preference

 

115,212

 

 

 

115,212

 

Common shares of beneficial interest, par value $0.01 per share. 250,000,000 shares authorized, 76,873,100 and 82,285,995 shares issued and outstanding at March 31, 2024 and December 31, 2023, respectively

 

769

 

 

 

823

 

Additional paid-in capital

 

1,347,512

 

 

 

1,509,563

 

Distributions in excess of earnings

 

(439,741

)

 

 

(449,907

)

Accumulated other comprehensive income

 

27,836

 

 

 

21,058

 

Total shareholders' equity

 

1,277,027

 

 

 

1,422,188

 

Noncontrolling interests

 

670,045

 

 

 

703,653

 

Total equity

 

1,947,072

 

 

 

2,125,841

 

Total liabilities and equity

$

5,366,865

 

 

$

5,931,811

 

Reconciliation of Net Income to FFO and Core FFO

(in thousands, except per share and unit amounts) (unaudited)

 

 

 

 

 

Three Months Ended March 31,

 

2024

 

2023

Net income

$

95,088

 

 

$

40,392

 

Add (subtract):

 

 

 

Real estate depreciation and amortization

 

46,964

 

 

 

55,152

 

Equity in losses (earnings) of unconsolidated real estate ventures

 

1,630

 

 

 

(1,678

)

Company's share of FFO in unconsolidated real estate ventures

 

5,685

 

 

 

6,149

 

Gain on sale of self storage properties

 

(61,173

)

 

 

—

 

Distributions to preferred shareholders and unitholders

 

(5,568

)

 

 

(3,962

)

FFO attributable to subordinated performance unitholders(1)

 

(10,730

)

 

 

(11,787

)

FFO attributable to common shareholders, OP unitholders, and LTIP unitholders

 

71,896

 

 

 

84,266

 

Add:

 

 

 

Acquisition costs

 

507

 

 

 

844

 

Loss on early extinguishment of debt

 

—

 

 

 

758

 

Core FFO attributable to common shareholders, OP unitholders, and LTIP unitholders

$

72,403

 

 

$

85,868

 

 

 

 

 

Weighted average shares and units outstanding - FFO and Core FFO:(2)

 

 

 

Weighted average shares outstanding - basic

 

80,236

 

 

 

89,499

 

Weighted average restricted common shares outstanding

 

22

 

 

 

25

 

Weighted average OP units outstanding

 

37,633

 

 

 

38,736

 

Weighted average DownREIT OP unit equivalents outstanding

 

2,120

 

 

 

2,120

 

Weighted average LTIP units outstanding

 

693

 

 

 

551

 

Total weighted average shares and units outstanding - FFO and Core FFO

 

120,704

 

 

 

130,931

 

 

 

 

 

FFO per share and unit

$

0.60

 

 

$

0.64

 

Core FFO per share and unit

$

0.60

 

 

$

0.66

 

(1)

Amounts represent distributions declared for subordinated performance unitholders and DownREIT subordinated performance unitholders for the periods presented.

(2)

NSA combines OP units and DownREIT OP units with common shares because, after the applicable lock-out periods, OP units in the Company's operating partnership are redeemable for cash or, at NSA's option, exchangeable for common shares on a one-for-one basis and DownREIT OP units are also redeemable for cash or, at NSA's option, exchangeable for OP units in the Company's operating partnership on a one-for-one basis, subject to certain adjustments in each case. Subordinated performance units, DownREIT subordinated performance units and LTIP units may also, under certain circumstances, be convertible into or exchangeable for common shares (or other units that are convertible into or exchangeable for common shares). See footnote(3) for additional discussion of subordinated performance units, DownREIT subordinated performance units, and LTIP units in the calculation of FFO and Core FFO per share and unit.

Reconciliation of Earnings (Loss) Per Share - Diluted to FFO and Core FFO Per Share and Unit

(in thousands, except per share and unit amounts) (unaudited)

 

 

 

 

 

Three Months Ended March 31,

 

2024

 

2023

Earnings per share - diluted

$

0.65

 

 

$

0.24

 

Impact of the difference in weighted average number of shares(3)

 

0.10

 

 

 

0.04

 

Add real estate depreciation and amortization

 

0.39

 

 

 

0.42

 

Add (subtract) equity in losses (earnings) of unconsolidated real estate ventures

 

0.01

 

 

 

(0.01

)

Add Company's share of FFO in unconsolidated real estate ventures

 

0.05

 

 

 

0.04

 

Subtract gain on sale of self storage properties

 

(0.51

)

 

 

—

 

FFO attributable to subordinated performance unitholders

 

(0.09

)

 

 

(0.09

)

FFO per share and unit

 

0.60

 

 

 

0.64

 

Add acquisition costs

 

—

 

 

 

0.01

 

Add loss on early extinguishment of debt

 

—

 

 

 

0.01

 

Core FFO per share and unit

$

0.60

 

 

$

0.66

 

(3)

Adjustment accounts for the difference between the weighted average number of shares used to calculate diluted earnings per share and the weighted average number of shares used to calculate FFO and Core FFO per share and unit. Diluted earnings per share is calculated using the two-class method for the company's restricted common shares and the treasury stock method for certain unvested LTIP units, and assumes the conversion of vested LTIP units into OP units on a one-for-one basis and the hypothetical conversion of subordinated performance units, and DownREIT subordinated performance units into OP units, even though such units may only be convertible into OP units (i) after a lock-out period and (ii) upon certain events or conditions. For additional information about the conversion of subordinated performance units and DownREIT subordinated performance units into OP units, see Note 10 to the Company's most recent Annual Report on Form 10-K, filed with the Securities and Exchange Commission. The computation of weighted average shares and units for FFO and Core FFO per share and unit includes all restricted common shares and LTIP units that participate in distributions and excludes all subordinated performance units and DownREIT subordinated performance units because their effect has been accounted for through the allocation of FFO to the related unitholders based on distributions declared.

Net Operating Income

(dollars in thousands) (unaudited)

 

 

 

 

 

Three Months Ended March 31,

 

2024

 

2023

Net income

$

95,088

 

 

$

40,392

 

(Subtract) add:

 

 

 

Management fees and other revenue

 

(9,074

)

 

 

(7,057

)

General and administrative expenses

 

15,674

 

 

 

14,821

 

Other

 

3,492

 

 

 

1,173

 

Depreciation and amortization

 

47,331

 

 

 

55,458

 

Interest expense

 

38,117

 

 

 

37,948

 

Equity in losses (earnings) of unconsolidated real estate ventures

 

1,630

 

 

 

(1,678

)

Loss on early extinguishment of debt

 

—

 

 

 

758

 

Acquisition costs

 

507

 

 

 

844

 

Income tax expense

 

886

 

 

 

1,196

 

Gain on sale of self storage properties

 

(61,173

)

 

 

—

 

Non-operating (income) expense

 

(98

)

 

 

598

 

Net Operating Income

$

132,380

 

 

$

144,453

 

EBITDA and Adjusted EBITDA

(dollars in thousands) (unaudited)

 

 

 

 

 

Three Months Ended March 31,

 

2024

 

2023

Net income

$

95,088

 

 

$

40,392

Add (subtract):

 

 

 

Depreciation and amortization

 

47,331

 

 

 

55,458

 

Company's share of unconsolidated real estate venture depreciation and amortization

 

4,552

 

 

 

4,471

 

Interest expense

 

38,117

 

 

 

37,948

 

Income tax expense

 

886

 

 

 

1,196

 

Loss on early extinguishment of debt

 

—

 

 

 

758

 

EBITDA

 

185,974

 

 

 

140,223

 

Add (subtract):

 

 

 

Acquisition costs

 

507

 

 

 

844

 

Effect of hypothetical liquidation at book value (HLBV) accounting for unconsolidated 2024 Joint Venture(1)

 

2,764

 

 

 

—

 

Gain on sale of self storage properties

 

(61,173

)

 

 

—

 

Equity-based compensation expense

 

1,855

 

 

 

1,649

 

Adjusted EBITDA

$

129,927

 

 

$

142,716

 

(1) Reflects the non-cash impact of applying HLBV to the 2024 Joint Venture, which allocates GAAP income (loss) on a hypothetical liquidation of the underlying joint venture at book value as of the reporting date.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240501283311/en/

National Storage Affiliates Trust

Investor/Media Relations

George Hoglund, CFA Vice President - Investor Relations 720.630.2160 ghoglund@nsareit.net