Q2 2024 National Storage Affiliates Trust Earnings Call Transcript
Key Points
- National Storage Affiliates Trust (NSA) reported core FFO per share of $0.62 for Q2 2024, reflecting a decrease of approximately 9% over the prior year period.
- The company has started to see more acquisition opportunities in core markets, including a five-property portfolio in the Rio Grande Valley for $72 million and a 13-property portfolio totaling $75 million.
- NSA has made significant progress on strategic initiatives, including the internalization of the PRO structure, with 70% of PRO managed stores now on the NSA web and operating platforms.
- The transition of PRO managed stores to NSA's platform is on schedule, with 40% of the 172 stores to be rebranded already completed.
- NSA's balance sheet remains strong with a current revolver balance of roughly $400 million, providing $550 million of availability for future opportunities.
- NSA is experiencing reduced customer demand for storage due to a muted housing market and the absorption of new supply, particularly in Sunbelt markets.
- Same-store occupancy rates have declined, ending June at 87% and July at 86.6%, with street rates down 14% from last year.
- Revenue growth declined 2.8% on a same-store basis, driven by a 320 basis point year-over-year decline in average occupancy.
- Expense growth was 4.8% in Q2, driven by increased R&M, marketing, and insurance costs, partially offset by a decline in property taxes.
- NSA has adjusted its full-year expectations downward due to ongoing competitive pressures and muted customer demand, particularly in Sunbelt markets.
Greetings, and welcome to the National Storage Affiliates second-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 begin.
We'd like to thank you for joining us today for the second-quarter 2024 earnings conference call of National Storage Affiliates Trust. On the line with me here today are NSA's President and CEO, Dave Cramer; and CFO, Brandon Togashi.
Following prepared remarks, management will accept questions from registered financial analysts. Please limit your questions to one question and one 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
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