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1. Company Snapshot

1.a. Company Description

National Storage Affiliates Trust is a Maryland real estate investment trust focused on the ownership, operation and acquisition of self storage properties located within the top 100 metropolitan statistical areas throughout the United States.As of September 30, 2020, the Company held ownership interests in and operated 788 self storage properties located in 35 states and Puerto Rico with approximately 49.5 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.

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1.b. Last Insights on NSA

National Storage Affiliates Trust's recent performance was positively driven by expectations of a turnaround following Federal Reserve rate cuts, which may boost occupancy rates. The company's Q2 earnings revealed a decline in FFO, but operating performance is anticipated to improve. A focus on the Sunbelt region and potential pickup in housing activity are key factors. Additionally, the company's strategy and market conditions position it well, despite challenges. Notably, some investors are repositioning their portfolios, as seen with Yousif Capital Management LLC's share sale.

1.c. Company Highlights

2. National Storage Affiliates' Q3 2025 Earnings: Steady Progress

National Storage Affiliates reported core FFO per share of $0.57 for the third quarter, beating estimates of $0.56. The company's same-store revenues declined 2.6% year-over-year, driven by lower average occupancy and a decline in average revenue per square foot. Despite this, the company saw sequential improvement in same-store revenue growth in 16 of its 21 reported MSAs. The company's EPS came in line with expectations, and the reported core FFO per share was a positive surprise.

Publication Date: Nov -10

📋 Highlights
  • Core FFO Decline:: Reported $0.57/share in Q3, down 8% YoY due to same-store NOI decline and higher interest expenses.
  • Rate & Occupancy Momentum:: October contract rates rose 160 bps YoY, while occupancy hit 84.3%, driven by improved pricing and market positioning.
  • 2026 Outlook:: Anticipates better demand with new supply below long-term historical averages and occupancy/RevPAF trends turning positive by 2026.
  • PRO Store Performance:: Net rental square footage grew 10.1% YoY in Q3, reflecting stronger move-in demand and operational execution.
  • Capital Structure:: Net debt-to-EBITDA reduced to 6.7x, with $105M preferred investment program targeting accretive acquisitions and JVs with 10% hurdle rates.

Operational Highlights

The company's occupancy rate ended October at 84.3%, and contract rates were 160 basis points higher than last year. The company is confident that its revenue growth will continue to improve, driven by its focus on improving occupancy levels and revenue growth through increased marketing spend and competitive positioning. As Dave Cramer noted, "We're confident that our revenue growth will continue to improve even without a housing market recovery."

Outlook and Guidance

The company maintained its guidance ranges for 2025 for same-store growth and core FFO per share. Looking ahead to 2026, the company expects to be in a better position, with occupancy levels, contract rates, and RevPAF trending positively. Analysts estimate next year's revenue growth at 1.1%, indicating a slow but steady recovery.

Valuation and Dividend Yield

With a P/E Ratio of 29.48 and a Dividend Yield of 7.42%, National Storage Affiliates' stock appears to be fairly valued. The company's Net Debt / EBITDA ratio of 6.7x is relatively high, but it has been slowly coming down. The Dividend Yield is attractive, and the company's commitment to paying a consistent dividend is a positive factor.

Joint Ventures and Capital Allocation

The company is excited about its preferred investment program, which allows it to accretively invest in self-storage deals. The company has announced a new joint venture in the Mid-Atlantic and Northeast region and is looking to continue recycling its capital to drive growth. The company's disciplined approach to capital allocation is a positive factor, and its focus on value-add deals with initial yields that may stabilize is a good strategy.

3. NewsRoom

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National Storage Affiliates: Several Catalysts Could Unlock Value In This Oversold REIT

Dec -03

Source: seekingalpha.com

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Dividends Up To 20% Wall Street Says You Should Sell

Nov -22

Source: forbes.com

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REIT Replay: REIT Indexes Outperform Broader Markets During 1st Week Of November

Nov -11

Source: seekingalpha.com

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National Storage Affiliates Trust (NSA) Q3 2025 Earnings Call Transcript

Nov -04

Source: seekingalpha.com

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REIT Replay: REIT Indexes Close Final Week Of October In The Red

Nov -04

Source: seekingalpha.com

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National Storage (NSA) Beats Q3 FFO Estimates

Nov -04

Source: zacks.com

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National Storage Affiliates Trust Reports Third Quarter 2025 Results

Nov -03

Source: businesswire.com

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National Storage Affiliates Trust Announces Preferred Equity Investment in Newly Formed Joint Venture

Nov -03

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.97%)

6. Segments

Rental - Same Store Portfolio

Expected Growth: 3.0%

National Storage Affiliates Trust's 3.0% same-store rental portfolio growth is driven by a combination of factors, including increasing demand for storage units, strategic pricing, and high occupancy rates. Additionally, the company's focus on operational efficiencies, cost savings, and accretive acquisitions also contribute to the growth. Furthermore, the growing need for storage solutions among baby boomers and millennials, as well as the increasing popularity of online shopping, support the upward trend.

Rental - Non-same Store Portfolio

Expected Growth: 2.8%

National Storage Affiliates Trust's 2.8% growth in Rental - Non-same Store Portfolio is driven by strategic acquisitions, increasing occupancy rates, and rent growth. Additionally, the company's diversified portfolio across 38 states and 74% of revenue from non-major markets contribute to its resilience and growth potential.

Management Fees and Other

Expected Growth: 3.2%

National Storage Affiliates Trust's 3.2% growth in Management Fees and Other is driven by increasing same-store NOI, expansion of third-party management platform, and rising demand for storage solutions. Additionally, strategic acquisitions and cost synergies also contribute to the growth.

Other Property-related - Same Store Portfolio

Expected Growth: 2.9%

National Storage Affiliates Trust's 2.9% growth in Other Property-related - Same Store Portfolio is driven by increasing rental rates, high occupancy levels, and a strong demand for storage units. Additionally, the company's focus on cost control, efficient operations, and strategic acquisitions have contributed to the growth.

Other Property-related - Non-same Store Portfolio

Expected Growth: 2.7%

National Storage Affiliates Trust's 2.7% growth in Other Property-related - Non-same Store Portfolio is driven by strategic acquisitions, increasing rental rates, and high occupancy levels. Additionally, the company's diversified portfolio and expansion into new markets contribute to its growth. Effective cost management and a strong balance sheet also support the company's ability to invest in growth initiatives.

7. Detailed Products

Self Storage Units

National Storage Affiliates Trust offers a range of self storage units in various sizes to cater to individual and business needs, providing a secure and convenient way to store belongings.

Climate-Controlled Storage

Climate-controlled storage units that maintain a consistent temperature and humidity level, ideal for storing sensitive items such as electronics, artwork, and important documents.

Drive-Up Storage

Convenient drive-up storage units that allow for easy access and loading/unloading of items, ideal for storing large or heavy items.

RV and Boat Storage

Secure and convenient storage solutions for recreational vehicles and boats, providing a safe and protected environment.

Business Storage

Customized storage solutions for businesses, providing a secure and convenient way to store inventory, equipment, and documents.

Moving and Packing Supplies

A range of moving and packing supplies, including boxes, tape, and bubble wrap, available for purchase at National Storage Affiliates Trust facilities.

8. National Storage Affiliates Trust's Porter Forces

Forces Ranking

Threat Of Substitutes

National Storage Affiliates Trust operates in a highly competitive industry, but the threat of substitutes is mitigated by the company's diversified portfolio of storage facilities and its ability to adapt to changing market conditions.

Bargaining Power Of Customers

National Storage Affiliates Trust's customers have limited bargaining power due to the company's large market share and the fragmented nature of the self-storage industry.

Bargaining Power Of Suppliers

National Storage Affiliates Trust has a diversified supplier base, which reduces the bargaining power of individual suppliers. Additionally, the company's scale and market position give it negotiating power over suppliers.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the self-storage industry, including the need for significant capital investment and regulatory approvals.

Intensity Of Rivalry

The self-storage industry is highly competitive, with many established players competing for market share. National Storage Affiliates Trust must continually innovate and improve its operations to maintain its market position.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 72.14%
Debt Cost 4.54%
Equity Weight 27.86%
Equity Cost 8.36%
WACC 5.61%
Leverage 258.92%

11. Quality Control: National Storage Affiliates Trust passed 1 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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National Storage

A-Score: 6.2/10

Value: 5.3

Growth: 5.4

Quality: 7.2

Yield: 10.0

Momentum: 1.0

Volatility: 8.0

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Yield: 6.0

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Value: 2.4

Growth: 6.9

Quality: 7.4

Yield: 6.0

Momentum: 4.0

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A-Score: 5.8/10

Value: 2.0

Growth: 6.1

Quality: 7.1

Yield: 6.0

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A-Score: 5.7/10

Value: 3.0

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Quality: 5.9

Yield: 8.0

Momentum: 2.0

Volatility: 9.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

29.63$

Current Price

29.63$

Potential

-0.00%

Expected Cash-Flows