Cautious Hold Rating on National Storage Affiliates Amid Mixed Performance and Conservative Outlook

In a report released today, Juan C. Sanabria from BMO Capital maintained a Hold rating on National Storage Affiliates (NSA – Research Report), with a price target of $40.00.

Juan C. Sanabria has given his Hold rating due to a combination of factors related to National Storage Affiliates’ recent performance and future outlook. The company’s first-quarter earnings for 2025 fell short of expectations, with same-store performance also weaker than anticipated. Despite this, there is a positive note as street and in-place contract rents have shown sequential growth, and management has indicated that the bottom for same-store growth has been reached.
However, the guidance for 2025 remains conservative, reflecting ongoing macroeconomic uncertainties that could impact peak leasing season. Additionally, while the full-year Core FFO guidance is slightly above the Street’s expectations, the unchanged major guidance components suggest limited growth potential. The company’s plans for internalization synergies and de-leveraging are also areas to watch, but the current leverage ratio remains a concern. These factors collectively contribute to the Hold rating, indicating a cautious stance on the stock’s near-term potential.

C. Sanabria covers the Real Estate sector, focusing on stocks such as CareTrust REIT, Healthpeak Properties, and Public Storage. According to TipRanks, C. Sanabria has an average return of 0.0% and a 46.03% success rate on recommended stocks.