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National Storage Affiliates Trust Reports First Quarter 2026 Results

May 5, 2026 4:05 PM

GREENWOOD VILLAGE, Colo.--(BUSINESS WIRE)-- National Storage Affiliates Trust ("NSA" or the "Company") (NYSE: NSA) today reported the Company’s first quarter 2026 results.

First Quarter 2026 Highlights

Highlights Subsequent to Quarter-End

Financial Results

($ in thousands, except per share and unit data)

Three Months Ended March 31,

2026

2025

Change

Net income

$

27,681

$

19,519

41.8

%

Funds From Operations ("FFO")(1)

$

65,999

$

70,978

(7.0

)%

Add acquisition costs

811

403

101.2

%

Add integration and executive severance costs(2)

—

2,042

—

%

Add merger related costs

9,981

—

—

%

Core FFO(1)

$

76,791

$

73,423

4.6

%

Earnings per share - basic and diluted

$

0.16

$

0.10

60.0

%

FFO per share and unit(1)

$

0.49

$

0.52

(5.8

)%

Core FFO per share and unit(1)

$

0.57

$

0.54

5.6

%

(1)

Non-GAAP financial measures, including FFO, Core FFO and NOI, are defined in the Glossary in the supplemental financial information and, where appropriate, reconciliations of these measures and other non-GAAP financial measures to their most directly comparable GAAP measures are included in the Schedules to this press release and in the supplemental financial information.

(2)

Integration costs relate to expenses incurred as a part of the internalization of the PRO structure.

Net income increased $8.2 million for the first quarter of 2026 as compared to the same period in 2025. This increase was primarily due to an increase in earnings from our unconsolidated real estate ventures, a decrease in property operating expenses and a decrease in depreciation expense.

The decrease in FFO per share and unit for the first quarter of 2026 was primarily driven by merger related costs of $10.0 million. The increase in Core FFO per share and unit for the first quarter of 2026 was primarily driven by an increase in same store NOI and a decrease in interest expense.

Same Store Operating Results (735 Stores)

($ in thousands, except per square foot data)

Three Months Ended March 31,

2026

2025

Change

Total revenues

$

164,221

$

163,852

0.2

%

Property operating expenses

48,396

50,343

(3.9

)%

Net Operating Income (NOI)

$

115,825

$

113,509

2.0

%

NOI Margin

70.5

%

69.3

%

1.2

%

Average Occupancy

84.2

%

84.1

%

0.1

%

Average Annualized Rental Revenue Per Occupied Square Foot

$

15.88

$

15.78

0.6

%

Year-over-year same store total revenue increased 0.2% for the first quarter of 2026 as compared to the same period in 2025. The increase for the first quarter was driven by a 10 basis point increase in average occupancy and a 0.6% increase in average annualized rental revenue per occupied square foot. Markets which generated above portfolio average same store total revenue growth include: Portland, San Juan, PR and Colorado Springs. Markets which generated below portfolio average same store total revenue growth include: Riverside-San Bernardino, Atlanta and Phoenix.

Year-over-year same store property operating expenses decreased 3.9% for the first quarter of 2026 as compared to the same period in 2025. The decrease for the first quarter of 2026 was primarily driven by decreases in personnel, utilities and repairs and maintenance costs.

Investment and Disposition Activity

During the first quarter, NSA invested $10.4 million in the acquisition of one wholly-owned self storage property, consisting of approximately 47,000 rentable square feet configured in approximately 500 storage units.

During the first quarter, NSA completed the sale of three wholly-owned self storage properties, consisting of approximately 199,000 rentable square feet configured in approximately 1,500 storage units for approximately $20.6 million.

Balance Sheet

As of March 31, 2026, NSA has approximately $530.6 million of available capacity on its $950.0 million revolving line of credit.

Common Share Dividends

On February 12, 2026, NSA's Board of Trustees declared a quarterly cash dividend of $0.57 per common share. The first quarter 2026 dividend was paid on March 31, 2026 to shareholders of record as of March 13, 2026.

2026 Guidance

In light of the Company's proposed merger with Public Storage announced on March 16, 2026, the Company will no longer provide guidance nor is it affirming past guidance.

Supplemental Financial Information

The full text of this earnings release and supplemental financial information, including certain financial information referenced in this release, are available on NSA's website at www.nsastorage.com and as exhibit 99.1 to the Company's Form 8-K furnished to the SEC on May 5, 2026.

Non-GAAP Financial Measures & Glossary

This press release contains certain non-GAAP financial measures. These non-GAAP measures are presented because NSA's management believes these measures help investors understand NSA's business, performance and ability to earn and distribute cash to its shareholders by providing perspectives not immediately apparent from net income (loss). These measures are also frequently used by securities analysts, investors and other interested parties. The presentations of FFO, Core FFO and NOI in this press release are not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. In addition, NSA's method of calculating these measures may be different from methods used by other companies, and, accordingly, may not be comparable to similar measures as calculated by other companies that do not use the same methodology as NSA. These measures, and other words and phrases used herein, are defined in the Glossary in the supplemental financial information and, where appropriate, reconciliations of these measures and other non-GAAP financial measures to their most directly comparable GAAP measures are included in the Schedules to this press release and in the supplemental financial information.

About National Storage Affiliates Trust

National Storage Affiliates Trust is a real estate investment trust headquartered in Greenwood Village, Colorado, focused on the ownership, operation and acquisition of self storage properties predominantly located within the top 100 metropolitan statistical areas throughout the United States. As of March 31, 2026, the Company held ownership interests in and operated 1,061 self storage properties, located in 37 states and Puerto Rico with approximately 69.3 million rentable square feet, excluding three properties classified as held for sale, that were sold to a third party in April 2026. NSA is one of the largest owners and operators of self storage properties among public and private companies in the United States. For more information, please visit the Company’s website at www.nsastorage.com. NSA is included in the MSCI US REIT Index (RMS/RMZ), the Russell 1000 Index of Companies and the S&P MidCap 400 Index.

NOTE REGARDING FORWARD LOOKING STATEMENTS

Certain statements contained in this press release constitute forward-looking statements as such term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and such statements are intended to be covered by the safe harbor provided by the same. Forward-looking statements are subject to substantial risks and uncertainties, many of which are difficult to predict and are generally beyond the Company's control. These forward-looking statements include information about possible or assumed future results of the Company's business, financial condition, liquidity, results of operations, plans and objectives. Changes in any circumstances may cause the Company's actual results to differ significantly from those expressed in any forward-looking statement. When used in this release, the words "believe," "expect," "anticipate," "estimate," "plan," "continue," "intend," "should," "may" or similar expressions are intended to identify forward-looking statements. Statements regarding the following subjects, among others, may be forward-looking: market trends in the Company's industry, interest rates, inflation, the debt and lending markets or the general economy; the Company's business and investment strategy; the risks associated with our ability to consummate the mergers with Public Storage and the timing and closing of the mergers including, among other things, the ability of the Company to obtain equity holder approval required to consummate the mergers, the satisfaction or waiver of other conditions to closing in the Merger Agreement, unanticipated difficulties or expenditures relating to the mergers, potential difficulties in employee retention as a result of the mergers, the occurrence of any event, change or other circumstances that could give rise to the termination of the mergers and the outcome of legal proceedings that may be instituted related to the mergers; the acquisition and disposition of properties, including those under contract and the Company's ability to execute on its acquisition pipeline; and the Company's guidance estimates for the year ending December 31, 2026. For a further list and description of such risks and uncertainties, see the Company's most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed with the Securities and Exchange Commission, and the other documents filed by the Company with the Securities and Exchange Commission. The forward-looking statements, and other risks, uncertainties and factors are based on the Company's beliefs, assumptions and expectations of its future performance, taking into account all information currently available to the Company. Forward-looking statements are not predictions of future events. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

National Storage Affiliates Trust
Consolidated Statements of Operations
(in thousands, except per share amounts) (unaudited)

Three Months Ended March 31,

2026

2025

REVENUE

Rental revenue

$

168,214

$

169,475

Other property-related revenue

5,586

6,744

Management fees and other revenue

11,601

12,135

Total revenue

185,401

188,354

OPERATING EXPENSES

Property operating expenses

52,034

55,104

General and administrative expenses

13,231

13,145

Depreciation and amortization

46,140

48,116

Other

3,098

4,476

Total operating expenses

114,503

120,841

OTHER (EXPENSE) INCOME

Interest expense

(39,257

)

(40,475

)

Equity in earnings (losses) of unconsolidated real estate ventures

1,155

(5,739

)

Acquisition and integration costs

(811

)

(2,445

)

Merger related costs

(9,981

)

—

Non-operating (expense) income

(302

)

360

Gain on sale of self storage properties

6,458

1,425

Other expense, net

(42,738

)

(46,874

)

Income before income taxes

28,160

20,639

Income tax expense

(479

)

(1,120

)

Net income

27,681

19,519

Net income attributable to noncontrolling interests

(9,901

)

(6,525

)

Net income attributable to National Storage Affiliates Trust

17,780

12,994

Distributions to preferred shareholders

(5,153

)

(5,114

)

Net income attributable to common shareholders

$

12,627

$

7,880

Earnings per share - basic and diluted

$

0.16

$

0.10

Weighted average shares outstanding - basic and diluted

77,093

76,372

National Storage Affiliates Trust
Consolidated Balance Sheets
(dollars in thousands, except per share amounts)
(unaudited)

March 31,

December 31,

2026

2025

ASSETS

Real estate

Self storage properties

$

5,832,905

$

5,814,854

Less accumulated depreciation

(1,256,764

)

(1,213,537

)

Self storage properties, net

4,576,141

4,601,317

Cash and cash equivalents

27,648

23,328

Restricted cash

721

310

Debt issuance costs, net

2,161

2,890

Investment in unconsolidated real estate ventures

227,267

231,779

Other assets, net

178,470

185,403

Assets held for sale, net

1,086

14,519

Operating lease right-of-use assets

20,264

20,569

Total assets

$

5,033,758

$

5,080,115

LIABILITIES AND EQUITY

Liabilities

Debt financing

$

3,416,836

$

3,405,102

Accounts payable and accrued liabilities

97,724

94,627

Interest rate swap liabilities

1,134

4,052

Operating lease liabilities

22,320

22,620

Deferred revenue

20,655

19,931

Total liabilities

3,558,669

3,546,332

Equity

Preferred shares of beneficial interest, par value $0.01 per share. 50,000,000 authorized, 14,801,345 and 14,704,845 issued (in series) and outstanding at March 31, 2026 and December 31, 2025, respectively, at liquidation preference

343,542

341,130

Common shares of beneficial interest, par value $0.01 per share. 250,000,000 shares authorized, 77,137,402 and 77,089,734 shares issued and outstanding at March 31, 2026 and December 31, 2025, respectively

771

771

Additional paid-in capital

1,245,845

1,251,961

Distributions in excess of earnings

(683,581

)

(652,240

)

Accumulated other comprehensive income

6,184

4,416

Total shareholders' equity

912,761

946,038

Noncontrolling interests

562,328

587,745

Total equity

1,475,089

1,533,783

Total liabilities and equity

$

5,033,758

$

5,080,115

Reconciliation of Net Income to FFO and Core FFO

(in thousands, except per share and unit amounts) (unaudited)

Three Months Ended March 31,

2026

2025

Net income

$

27,681

$

19,519

Add (subtract):

Real estate depreciation and amortization

45,707

47,661

Equity in (earnings) losses of unconsolidated real estate ventures

(1,155

)

5,739

Company's share of FFO in unconsolidated real estate ventures

5,792

5,052

Gain on sale of self storage properties

(6,458

)

(1,425

)

Distributions to preferred shareholders and unitholders

(5,568

)

(5,568

)

FFO attributable to common shareholders, OP unitholders, and LTIP unitholders

65,999

70,978

Add (subtract):

Acquisition costs

811

403

Integration costs(1)

—

2,042

Merger related costs

9,981

—

Core FFO attributable to common shareholders, OP unitholders, and LTIP unitholders

$

76,791

$

73,423

Weighted average shares and units outstanding - FFO and Core FFO:(2)

Weighted average shares outstanding - basic

77,093

76,372

Weighted average restricted common shares outstanding

26

21

Weighted average OP units outstanding

51,162

52,147

Weighted average DownREIT OP unit equivalents outstanding

5,769

5,769

Weighted average LTIP units outstanding

979

925

Total weighted average shares and units outstanding - FFO and Core FFO

135,029

135,234

FFO per share and unit

$

0.49

$

0.52

Core FFO per share and unit

$

0.57

$

0.54

(1)

Integration costs relate to expenses incurred as a part of the internalization of the PRO structure.

(2)

NSA combines OP units and DownREIT OP units with common shares because, after the applicable lock-out periods, OP units in the Company's operating partnership are redeemable for cash or, at NSA's option, exchangeable for common shares on a one-for-one basis and DownREIT OP units are also redeemable for cash or, at NSA's option, exchangeable for OP units in the Company's operating partnership on a one-for-one basis, subject to certain adjustments in each case. LTIP units may also, under certain circumstances, be convertible into or exchangeable for common shares (or other units that are convertible into or exchangeable for common shares). See footnote 3 for additional discussion of LTIP units in the calculation of FFO and Core FFO per share and unit.

Reconciliation of Earnings Per Share - Diluted to FFO and Core FFO Per Share and Unit

(in thousands, except per share and unit amounts) (unaudited)

Three Months Ended March 31,

2026

2025

Earnings per share - diluted

$

0.16

$

0.10

Impact of the difference in weighted average number of shares(3)

(0.07

)

(0.04

)

Impact of GAAP accounting for noncontrolling interests, two-class method and treasury stock method(4)

0.07

0.04

Add real estate depreciation and amortization

0.34

0.35

Add equity in (earnings) losses of unconsolidated real estate ventures

(0.01

)

0.04

Add Company's share of FFO in unconsolidated real estate ventures

0.05

0.04

Subtract gain on sale of self storage properties

(0.05

)

(0.01

)

FFO per share and unit

0.49

0.52

Add acquisition costs

0.01

—

Add integration costs

—

0.02

Add merger related costs

0.07

—

Core FFO per share and unit

$

0.57

$

0.54

(3)

Adjustment accounts for the difference between the weighted average number of shares used to calculate diluted earnings per share and the weighted average number of shares used to calculate FFO and Core FFO per share and unit. Diluted earnings per share is calculated using the two-class method for the company's restricted common shares and the treasury stock method for certain unvested LTIP units, and assumes the conversion of vested LTIP units into OP units on a one-for-one basis. The computation of weighted average shares and units for FFO and Core FFO per share and unit includes all restricted common shares and LTIP units that participate in distributions.

(4)

Represents the effect of adjusting the numerator to consolidated net income prior to GAAP allocations for noncontrolling interests, after deducting preferred share and unit distributions, and before the application of the two-class method and treasury stock method, as described in footnote 3.

Net Operating Income

(dollars in thousands) (unaudited

Three Months Ended March 31,

2026

2025

Net income

$

27,681

$

19,519

(Subtract) add:

Management fees and other revenue

(11,601

)

(12,135

)

General and administrative expenses

13,231

13,145

Depreciation and amortization

46,140

48,116

Other

3,098

4,476

Interest expense

39,257

40,475

Equity in (earnings) losses of unconsolidated real estate ventures

(1,155

)

5,739

Acquisition and integration costs

811

2,445

Merger related costs

9,981

—

Non-operating expense (income)

302

(360

)

Gain on sale of self storage properties

(6,458

)

(1,425

)

Income tax expense

479

1,120

Net Operating Income

$

121,766

$

121,115

EBITDA and Adjusted EBITDA

(dollars in thousands) (unaudited)

Three Months Ended March 31,

2026

2025

Net income

$

27,681

$

19,519

Add:

Depreciation and amortization

46,140

48,116

Company's share of unconsolidated real estate venture depreciation and amortization

4,903

5,411

Interest expense

39,257

40,475

Income tax expense

479

1,120

EBITDA

118,460

114,641

Add (subtract):

Acquisition costs

811

403

Effect of hypothetical liquidation at book value (HLBV) accounting for unconsolidated 2024 Joint Venture(1)

(266

)

5,381

Gain on sale of self storage properties

(6,458

)

(1,425

)

Integration costs, excluding equity-based compensation(2)

—

930

Merger related costs

9,981

—

Equity-based compensation expense(3)

2,420

3,079

Adjusted EBITDA

$

124,948

$

123,009

(1)

Reflects the non-cash impact of applying HLBV to the 2024 Joint Venture, which allocates GAAP income (loss) on a hypothetical liquidation of the underlying joint venture at book value as of the reporting date.

(2)

Integration costs relate to expenses incurred as a part of the internalization of the PRO structure.

(3)

Equity-based compensation expense is a non-cash item recorded within general and administrative expenses and acquisition and integration costs in our consolidated statements of operations. For the three months ended March 31, 2025, $1.1 million relates to the internalization of the PRO structure and is included in acquisition and integration costs.

National Storage Affiliates Trust

Investor/Media Relations

George Hoglund, CFA

Vice President - Investor Relations

720.630.2160

[email protected]

Source: National Storage Affiliates Trust

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