NSA increases net income by $21.1M during 2017; $5.9M in Q4

March 4, 2018


National Storage Affiliates Trust nearly doubled their net income year over year in the final quarter of 2017, increasing from $6.1 million in the final three months of 2016 to $12 million in the fourth quarter of 2017.

NSA saw similar results for the whole year, with the final net income for all of 2017 reaching $46 million, up from the $24.9 million realized in 2016.

“2017 was another fantastic year for NSA,” Arlen Nordhagen, NSA’s CEO and chairman, said in a press release. “We grew our portfolio by adding 65 wholly-owned self storage properties and an additional five properties through our joint venture. We leveraged our revenue management platform to increase rental rates across many of our markets, driving strong revenue growth over last year.”

Drivers of storage income growth

The primary driver of income growth was the 65 self storage properties NSA acquired throughout 2017. Thirty-one of these, plus one joint venture property, were acquired in the fourth quarter of 2017 for $201 million and $9.4 million, respectively.

Same store net operating income also significantly contributed to the increase: The $30 million in revenue seen in the fourth quarter of 2017 was a 5.8 percent rise over the same time period in 2016. A 5 percent increase in same store revenue and a 3.3 percent jump in same store property operating expenses both lent to the growth.

Aside from the single joint venture property investment in the fourth quarter, NSA also added four other joint venture properties to its portfolio throughout the year.

In addition to same-store revenue, details like decreases in acquisition costs, increases in management fees and additional net operating income from non-same store locations added to the bump in income for the year overall. Additionally, the sale of several self storage properties served to increase income.

NSA stock gains

In the third quarter of 2017, NSA made its first public perpetual preferred share offering, which meant the NSA stock doesn’t have a maturity date and will keep paying dividends. This provided a financial advantage to the company at the time of the decision and continued to benefit NSA into the fourth quarter.

During the final three months of the year, NSA sold 6.9 million of 6.000% Series A Cumulative Redeemable Preferred Shares of Beneficial Interest and 5.75 million of Common Shares of Beneficial Interest. These transactions brought in $319 million of gross proceeds.

“During the fourth quarter, we completed both preferred share and common share offerings, followed by an expansion of our credit facility during January 2018,” Nordhagen stated. “These transactions provide us with the financial flexibility to continue to execute our growth strategy as we begin 2018, which we kicked off by acquiring an additional 18 properties during January and February.”

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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