NSA enjoys increases in income, same store NOI and property acquisitions in Q3 2017

November 16, 2017

National Storage Affiliates Trust enjoyed positive gains during the third quarter of 2017. Net income for the three-month period was $11.2 million, up $3.3 million from the third quarter of 2016, according to a news release from NSA.

Property acquisitions from the previous year yield revenue gains

The primary source of the additional $3.3 million in revenue can be attributed to the 65 self storage sites acquired between October 2016 and the end of September 2017.

Additionally, core funds from operations increased 13.8 percent compared to FFO reported for the same time in 2016. Q3 2017 FFO came to $23.8 million, which translates to $0.33 per share. During the third quarter of 2016, this number was $18.2 million, or $0.29 per share.

Same store net operating income also went up; this was a primary factor in the increased FFO. Same store NOI was reported at $30.5 million, 6.7 percent higher than Q3 2016’s same store NOI of $28.6 million. The 65 newly acquired self storage sites over the past year brought in $6.3 million in NOI.

All told, total consolidated portfolio NOI came to $45.2 million, a 27 percent increase compared to the $35.6 million in NOI seen in the third quarter of 2016.

Annualized average rent revenue per occupied square foot was $11.83, a same store increase of 5.7 percent compared to the same period in 2016. This demonstrates strong growth for the industry across the nation.

Further, NSA acquired 19 properties and closed on 28 more before the end of the quarter. The acquisitions brought in $124 million, and the 28 properties NSA closed on are valued at $175 million total. These actions bring the running total of joint venture acquisitions for the year up to 67 properties, valued at close to $460 million.

First public perpetual preferred share offering made in Q3 2017

In addition to this positive momentum, NSA made its first public perpetual preferred share offering; in other words, for the first time, NSA stock will have no maturity date and will continue to pay dividends indefinitely. The move resulted in gross proceeds of $173 million. NSA expects the perpetual preferred stock to continue to bring value to the real estate investment trust.

“We were very pleased by how well our first preferred offering was received as we further strengthen our balance sheet by broadening our sources of capital,” Arlen Nordhagen, NSA CEO and chairman, stated according to a news release. “The preferred offering and the $85 million of secured debt financing that we completed during the third quarter provide us the financial flexibility to continue to execute on our growth strategy as we close out 2017 and look ahead to 2018.”

As of the end of September 2017, NSA’s consolidated portfolio contained 413 self storage properties with a period-end occupancy rate of slightly below 90 percent. Unconsolidated real estate venture included 430 sites with 100,000 square feet between them.

NSA is in a strong position heading into the final stretch of 2017. Nordhagen noted that he feels confident that this positive momentum will carry forward into the new 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.

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