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National Storage Affiliates Trust (NSA)
NYSE:NSA
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National Storage Affiliates
(NYSE:NSA)
65Neutral
Positive Factors
Company Guidance
An encouraging guide shows light at the end of the tunnel for NSA, despite macro uncertainty.
Share Repurchase
A new share repurchase program has been approved, authorizing the repurchase of up to $350 million of common shares.
Negative Factors
Financial Performance
The core FFO per share guidance for 2025 is below consensus expectations.
National Storage Affiliates (NSA) vs. S&P 500 (SPY)
Market Cap
$5.08B
Dividend Yield5.95%
Average Volume (3M)568.30K
Price to Earnings (P/E)31.9
Beta (1Y)0.97
Revenue Growth-10.22%
EPS Growth-27.58%
CountryUS
Employees1,108
SectorReal Estate
Sector Strength72
IndustryREITs
Share Statistics
EPS (TTM)1.14
Shares Outstanding76,402,060
10 Day Avg. Volume888,620
30 Day Avg. Volume568,298
Financial Highlights & Ratios
PEG Ratio0.39
Price to Book (P/B)N/A
Price to Sales (P/S)3.75
Price to Cash Flow (P/CF)9.00
P/FCF Ratio20.80
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$40.38Price Target Upside8.67% Upside
Rating ConsensusHold
Number of Analyst Covering8
National Storage Affiliates Business Overview & Revenue Model
Company DescriptionNational Storage Affiliates Trust operates as a real estate investment trust. It focuses on the ownership, operation, and acquisition of self-storage properties located within the metropolitan statistical areas throughout the United States. The company was founded by Arlen D. Nordhagen in April 2013 and is headquartered in Greenwood Village, CO.
How the Company Makes MoneyNational Storage Affiliates generates revenue primarily through the rental income from its self-storage facilities. The company owns and operates a vast portfolio of self-storage properties, which provide rental spaces to customers on a short-term or long-term basis. NSA's unique business model involves partnering with regional self-storage operators, known as Participating Regional Operators (PROs), which allows the company to leverage local expertise and enhance operational efficiencies. This partnership model not only helps in expanding its property portfolio but also contributes to stable and recurring revenue streams. Additionally, NSA may engage in ancillary services like the sale of storage-related products (such as locks and boxes) and tenant insurance, further diversifying its income sources. The company's earnings are influenced by factors such as occupancy rates, rental rate increases, and strategic acquisitions of new properties.
National Storage Affiliates Financial Statement Overview
Summary
National Storage Affiliates demonstrates solid profitability and a strong balance sheet with low leverage. However, declining revenue and free cash flow, along with reduced equity, pose potential concerns for future growth and financial flexibility.Income Statement
National Storage Affiliates shows solid profitability with a significant gross profit margin of 100% and a strong EBIT margin of about 72.5% for the 2024 period. However, there is a decline in total revenue from $858 million in 2023 to $770 million in 2024, indicating a negative growth trend. The net profit margin of approximately 24.8% in 2024 reflects stable profitability, yet EBITDA margin has decreased to 28.9% from 73% in the previous year, suggesting increased operational expenses.65
Positive
Balance Sheet
The company maintains a low debt-to-equity ratio of 0.02, reflecting conservative financial leverage. A strong equity ratio of 20.1% suggests a stable capital structure with considerable equity financing. However, stockholders' equity has decreased from $1.42 billion in 2023 to $1.08 billion in 2024, indicating potential concerns with equity retention. Return on equity stands at approximately 17.7%, demonstrating good profitability relative to equity.70
Positive
Cash Flow
Free cash flow has decreased from $406 million in 2023 to $344 million in 2024, indicating a negative growth rate. The operating cash flow to net income ratio of 1.9 suggests efficient cash generation relative to net income. The free cash flow to net income ratio is approximately 1.8, indicating healthy cash flow coverage but highlighting a decline in free cash flow generation.60
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 770.34M | 858.06M | 801.57M | 585.67M | 432.22M | Gross Profit |
| 770.34M | 407.08M | 590.54M | 430.41M | 308.74M | EBIT |
| 558.48M | 336.69M | 296.33M | 222.63M | 146.17M | EBITDA |
| 531.15M | 626.72M | 529.49M | 380.94M | 263.34M | Net Income Common Stockholders |
| 111.52M | 156.67M | 183.76M | 146.94M | 79.48M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 50.41M | 94.59M | 35.31M | 25.01M | 18.72M | Total Assets |
| 5.35B | 5.93B | 6.07B | 5.56B | 3.51B | Total Debt |
| 22.89M | 3.68B | 3.58B | 2.96B | 1.94B | Net Debt |
| -27.52M | 3.62B | 3.54B | 2.94B | 1.92B | Total Liabilities |
| 3.59B | 3.81B | 3.68B | 3.08B | 2.08B | Stockholders Equity |
| 1.08B | 1.42B | 1.65B | 1.78B | 968.96M |
| Cash Flow | Free Cash Flow | |||
| 344.41M | 406.03M | 400.12M | 303.35M | 203.90M | Operating Cash Flow |
| 363.06M | 441.58M | 443.85M | 331.35M | 220.65M | Investing Cash Flow |
| 425.42M | 161.10M | -584.16M | -2.00B | -509.68M | Financing Cash Flow |
| -825.42M | -557.19M | 154.64M | 1.67B | 286.45M |
National Storage Affiliates Technical Analysis
Negative
37.16
Price Trends
37.57
Negative
39.87
Negative
41.08
Negative
Market Momentum
0.16
Positive
42.17
Neutral
25.66
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NSA, the sentiment is Negative. The current price of 37.16 is below the 20-day moving average (MA) of 38.23, below the 50-day MA of 37.57, and below the 200-day MA of 41.08, indicating a bearish trend. The MACD of 0.16 indicates Positive momentum. The RSI at 42.17 is Neutral, neither overbought nor oversold. The STOCH value of 25.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NSA.
National Storage Affiliates Risk Analysis
National Storage Affiliates disclosed 41 risk factors in its most recent earnings report. National Storage Affiliates reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
National Storage Affiliates Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $6.92B | 35.09 | 5.53% | 4.07% | 8.41% | -2.96% | |
77 Outperform | $54.06B | 29.48 | 21.01% | 3.89% | 3.94% | -3.81% | |
76 Outperform | $9.64B | 24.83 | 13.80% | 4.87% | 1.51% | -5.16% | |
71 Outperform | $9.02B | 32.99 | 3.38% | 4.22% | 17.48% | 7.45% | |
71 Outperform | $33.61B | 38.63 | 6.02% | 4.27% | 27.21% | -18.39% | |
65 Neutral | $5.08B | 31.91 | 8.92% | 5.95% | -10.22% | -27.58% | |
61 Neutral | $4.76B | 18.86 | -2.89% | 8.05% | 6.45% | -20.33% |
* Real Estate Sector Average
Performance Comparison
NSA
National Storage Affiliates
37.16
1.86
5.27%
CUBE
Cubesmart
41.58
-0.18
-0.43%
EXR
Extra Space Storage
149.22
11.08
8.02%
PSA
Public Storage
303.45
30.77
11.28%
STAG
Stag Industrial
36.16
0.32
0.89%
REXR
Rexford Industrial Realty
39.15
-10.61
-21.32%
National Storage Affiliates Earnings Call Summary
Earnings Call Date: Feb 26, 2025 | % Change Since: -2.80% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed sentiment with significant strategic achievements, such as brand consolidation and operational efficiencies, and strong capital deployment. However, challenges such as a decline in same store revenue and NOI, interest expense impact, and leverage pressure were also highlighted. The company is optimistic about future market conditions and internal efficiencies driving growth.Highlights
Strategic Portfolio Restructuring
In 2024, NSA consolidated its brands from 12 to 7, onboarded approximately 250 properties and over 380 employees, and completed the conversion to a single new property management system.
Capital Deployment and Share Repurchase
NSA deployed $150 million of growth capital in a joint venture, sold 49 core facilities for over $270 million, and repurchased $275 million of common shares.
Operational Efficiency Gains
NSA improved operational efficiencies by internalizing the pro structure and consolidating platforms, resulting in expected cost savings and improved execution capabilities.
Improving Market Conditions and Outlook
NSA anticipates a recovery in the housing market, which is expected to positively impact its operations. Supply in the market is expected to decline, with new deliveries decreasing from 3.5% in 2024 to 2% by 2027.
Core FFO Guidance
Core FFO per share was $0.60 for Q4 2024 and $2.44 for the full year, reaching the high end of the guidance range.
Lowlights
Decline in Same Store Revenue and NOI
Same store revenue and NOI growth were down 3% and 5.5%, respectively, for the full year. For Q4, same store revenues declined 4.3%, driven by a decline in rent revenue per square foot of 2.5% and a 180 basis point year-over-year decline in average occupancy.
Interest Expense Impact
Interest expense is expected to negatively impact core FFO per share by approximately $0.05 due to the expiration of interest rate swaps and the impact of higher effective rates on the revolver.
Near-Term Leverage Pressure
Leverage was at 6.5 times net debt to EBITDA at quarter end, with expectations of additional pressure in the near term due to negative NOI growth in the first quarter.
Challenges in Key Markets
Markets like Phoenix and Atlanta face challenges from new supply, which will take time to absorb, impacting NSA's ability to achieve material improvements in these areas.
Company Guidance
During the National Storage Affiliate Trust's fourth quarter 2024 conference call, management provided guidance for 2025, detailing several key metrics. The company expects same-store revenue growth to be flat, with operating expenses growing by 3.5% and NOI declining by 1.4%. The guidance for core FFO per share is set at $2.34, down from $2.44 in 2024, primarily due to increased interest expenses and negative organic growth. Interest expense is anticipated to impact core FFO by approximately $0.05, due to expiring interest rate swaps. The acquisition and disposition ranges are forecasted between $100 million and $300 million, with a focus on leveraging joint ventures. Despite a challenging operating environment, the company anticipates improved performance in the second half of the year, driven by a recovering housing market and reduced supply pressures, with new deliveries expected to decline from 3.5% in 2024 to 2% by 2027.National Storage Affiliates Corporate Events
Executive/Board ChangesShareholder Meetings
Rebecca Steinfort to Leave National Storage Affiliates Board
Neutral
Feb 13, 2025
On February 13, 2025, Rebecca L. Steinfort announced her decision not to seek re-election to the board of trustees of National Storage Affiliates Trust at the next annual meeting on May 12, 2025. Her departure will result in the reduction of the board size from twelve to eleven members, and her choice was not due to any disputes with the company.
Executive/Board Changes
National Storage Affiliates Appoints New Chief Accounting Officer
Neutral
Jan 7, 2025
National Storage Affiliates Trust has appointed John Esbenshade as the new chief accounting officer, following the resignation of Brandon S. Togashi. Mr. Esbenshade, who has been with the company since 2019, brings extensive experience from previous roles at Prologis and Deloitte, and this leadership change is expected to strengthen the company’s financial operations.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.