National Storage Affiliates Trust notched big gains during the first quarter of 2017.
The many highlights from the company’s quarterly report included an increase of $7.2 million in net income. Compared to the $4.8 million in net income during Q1 2016, this accounts for a rise of $2.4 million. Incremental net operating income and same-store NOI drove much of the growth in the first quarter net income. These impressive growth numbers illustrate the strength of NSA and demonstrate the company’s commitment to achieving success.
In addition to the increase in net income, core funds from operations reached $21.3 million, or $0.29 per share. This represented growth of 16 percent per share over Q1 2016, when Core FFO was just $12.5 million, or $0.25 per share.
Same-store total revenues jumped from $38.6 million in Q1 2016 to $41.2 million during the same period this year. To add to this, same-store NOI increased to $28.1 million during Q1 2017, compared to $25.7 million last year, representing growth of 9.1 percent.
“2017 is off to a great start for NSA, with financial results exceeding our forecasts for the quarter,” noted NSA CEO Arlen Nordhagen in a statement. “Same store total revenue grew by 6.6 percent driving same-store NOI growth of 9.1 during the first quarter. We also closed on the addition of our eighth PRO, Personal Mini Storage, of Orlando, Florida, and acquired five storage properties.”
Funds From Operation grew 26.1 percent during Q1, while Core FFO per share saw a rise of 16 percent. The 95 self storage properties NSA obtained between April 1, 2016 and March 31, 2017 fueled this increase in FFO and Core FFO, creating:
However, $2.8 million in general administrative fees, $2.5 million of interest expense and $1.8 million of distributions to subordinated performance unitholders partially offset these increases.
“NSA acquired five new self storage properties during Q1 2017.”
In its efforts to continue expanding operations, NSA acquired five new self storage properties during Q1 2017 at a cost of approximately $31.9 million in total. These new properties house a total of 2,200 storage units with roughly 0.3 million square feet of rental space.
These acquisitions bring NSA’s total consolidated portfolio holdings to 386 self storage properties representing approximately 23.3 million rentable square feet. In this space, NSA can boast a period-ending occupancy of 88.6 percent. The company’s same-store portfolio reached 222 properties, with roughly 12.3 million rentable square feet.
By kicking off the year with such strong numbers, NSA plans to continue this steady growth rate through sound financial management and new store acquisitions, carrying this momentum throughout the rest of the year.
SecurCare Self Storage was one of the original PROs to join NSA in 2013 to provide improved storage options for individuals seeking an appropriate solution. If you’re looking for a storage unit, contact us today.