On November 1, 2023, National Storage Affiliates Trust (NSA, Financial) released its third quarter 2023 earnings report. Despite facing challenges in the self-storage demand, NSA reported a net income of $43.1 million for Q3 2023, marking a 7.2% increase compared to Q3 2022. However, the company's Core Funds From Operations (Core FFO) decreased by 6.9% per share compared to the same period in 2022.
Financial Performance
NSA reported diluted earnings per share of $0.26 for Q3 2023, up from $0.21 for Q3 2022. The company's Core FFO was reported at $85.8 million, or $0.67 per share for Q3 2023, a decrease of 6.9% per share compared to Q3 2022. This decrease was primarily due to an increase in interest expense of $14.2 million, which offset an increase in net operating income (NOI) of $6.0 million.
Operational Highlights
NSA reported a decrease in same-store NOI of 0.1% for Q3 2023 compared to the same period in 2022. This was driven by a 1.1% increase in same-store total revenues, which was offset by an increase of 4.2% in same-store property operating expenses. The company's same-store period-end occupancy was reported at 88.5% as of September 30, 2023, a decrease of 360 basis points compared to September 30, 2022.
Acquisitions and Share Repurchase
During Q3 2023, NSA acquired two wholly-owned self-storage properties for approximately $30.1 million. The company also repurchased 6,360,994 of its common shares for approximately $213.4 million under the previously announced share repurchase program.
Outlook
Despite the current headwinds in self-storage demand, NSA's President and Chief Executive Officer, David Cramer, stated that the company has maintained its guidance ranges for full-year 2023. Cramer also expressed satisfaction with the completion of NSA's $250 million debt private placement prior to the recent increase in debt costs, demonstrating the company's healthy access to capital and commitment to enhancing its balance sheet.
Explore the complete 8-K earnings release (here) from National Storage Affiliates Trust for further details.
