Q1 2024 National Storage Affiliates Trust Earnings Call Transcript
Key Points
- National Storage Affiliates Trust successfully completed strategic initiatives aimed at deleveraging the balance sheet and accessing growth capital, which increased earnings per share and positioned the company for future growth.
- The company experienced three months of positive net rentals through the end of April, with a seasonal uptick in occupancy reaching 86%, demonstrating improved rental activity and conversions.
- Enhancements in the customer acquisition strategies and operational platforms, including an advanced web presence and upgraded call center operations, are expected to continue improving customer experience and overall performance.
- National Storage Affiliates Trust has over $25 million under contract and approximately $200 million of properties in various stages of negotiation, indicating a strong pipeline for future acquisitions.
- The company has a strategic focus on Sunbelt markets, which are expected to benefit from attractive population and migration trends, enhancing growth prospects.
- The aggressive pricing strategy to drive rental volume has put pressure on move-in rates, which averaged down about 14% year-over-year for the quarter.
- Revenue growth declined by 1.5% on a same-store basis, primarily due to a 380 basis point year-over-year decline in average occupancy during the quarter.
- Marketing expenses remain elevated due to increased competition for customers, impacting the financial performance.
- Several Sunbelt markets continue to face challenges including absorption of new supply, a muted housing market, and a very competitive pricing environment, leading to mixed results in these areas.
- The company reported a decrease in Core FFO per share of $0.60 for the first quarter of 2024, representing a decrease of approximately 9% over the prior year period, driven by a decline in same-store NOI and an increase in G&A expenses.
Greetings. Welcome to the National Storage Affiliates First Quarter 2024 Conference Call. (Operator Instructions) As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, George Hoglund, Vice President of Investor Relations for National Storage Affiliates. Thank you, Mr. Hoglund. You may now begin.
We'd like to thank you for joining us today for the First Quarter 2024 Earnings Conference Call of National Storage Affiliates Trust. On the line with me here today are NSA's President and CEO, David Cramer; and CFO, Brandon Togashi. Following prepared remarks, management will accept questions from registered financial analysts. Please limit your questions to 1 question and 1 follow-up and then return to the queue if you have more questions.
In addition to the press release distributed yesterday afternoon, we furnished our supplemental package with additional detail on our results, which may be found in the Investor Relations section on our website at
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