National Storage Affiliates Trust Reports Third Quarter 2025 Financial Results
National Storage Affiliates Trust (“NSA” or the “Company”) (NYSE: NSA), a leading real estate investment trust specializing in self storage facilities across the United States, today announced its financial results for the third quarter ended September 30, 2025.
Third Quarter 2025 Highlights
- Net Income: Reported net income of $29.0 million, down 2.5% from $29.8 million in the same period of 2024.
- Earnings Per Share: Diluted earnings per share were $0.17, compared to $0.18 in the third quarter of 2024.
- Core Funds From Operations (Core FFO): Reported $76.5 million, or $0.57 per share, representing an 8.1% decrease per share from the prior year period.
- Same Store Net Operating Income (NOI): Decreased 5.7% year-over-year, reflecting a 2.6% decline in total revenues and a 4.9% increase in property operating expenses.
- Occupancy: Same store period-end occupancy was 84.5% as of September 30, 2025, down 140 basis points from a year earlier.
- Acquisitions: One of NSA’s unconsolidated real estate ventures acquired two self storage properties for approximately $32.0 million during the quarter.
- Brand Repositioning: Successfully completed the rebranding of all Moove In branded stores to iStorage, streamlining NSA’s brand portfolio to six operating brands.
Highlights Subsequent to Quarter-End
Following the quarter’s close, NSA announced an agreement to form a new joint venture (the “IRE Joint Venture”) between an NSA subsidiary and an affiliate of Investment Real Estate Management, LLC (IRE). Under the terms, the NSA Member will contribute 75% of the equity in the form of preferred capital, while the IRE Member will contribute 25%.
NSA’s preferred equity investment will yield a 10% annual preferred return, with potential for additional returns upon exit of the joint venture’s investments in future years. An affiliate of IRE will serve as the manager of the venture, providing operational expertise and local market knowledge.
Management Commentary
David Cramer, President and Chief Executive Officer of NSA, commented:
“During the third quarter, we observed sequential improvement in same store revenue growth across most of our markets. This trend supports our view that self storage fundamentals have reached a bottom and are beginning to stabilize.”
Cramer added:
“While the operating environment remains competitive, the broader backdrop for self storage is more favorable than it has been in several years. We anticipate that expected interest rate cuts and a more balanced supply environment will positively impact the housing market and, by extension, storage demand. Our focus has been on positioning NSA to capitalize on this recovery through disciplined capital recycling and operational efficiency. We are well-prepared to execute in this environment and optimistic about the opportunities ahead.”
Financial Performance Overview
For the third quarter of 2025, net income decreased by $0.8 million compared to the same quarter in 2024. For the nine months ended September 30, 2025, net income declined by $77.6 million, primarily due to the absence of significant property sale gains recognized in 2024.
Lower NOI from property dispositions and same store performance contributed to the decline in earnings, partially offset by higher management fees and reduced general and administrative expenses. Management fee income rose $0.6 million in the quarter and $6.4 million year-to-date, while general and administrative expenses fell $1.7 million and $7.6 million, respectively.
The decrease in FFO and Core FFO per share was mainly attributable to lower same store NOI and higher interest expenses, partially offset by reduced management fees to former participating regional operators (PROs) following NSA’s internalization of its PRO structure.
Same Store Portfolio Performance
For the third quarter of 2025, same store total revenue decreased 2.6%, primarily driven by a 150-basis-point decline in average occupancy and a 0.4% decrease in annualized rental revenue per occupied square foot. Year-to-date, same store total revenue declined 2.9%, reflecting a 180-basis-point drop in occupancy and a 0.6% decrease in rental rates.
Markets outperforming the portfolio average included Portland, San Juan (Puerto Rico), and Houston, while Riverside–San Bernardino, Atlanta, and Phoenix trailed portfolio averages.
Same store property operating expenses increased 4.9% in the third quarter and 4.4% year-to-date, mainly due to higher marketing, property taxes, and utilities, partially offset by lower insurance expenses.
Investment and Disposition Activity
During the third quarter, the 2023 Joint Venture—a partnership between an NSA subsidiary and a state pension fund advised by Heitman Capital Management, LLC—acquired two self storage properties for approximately $32.0 million. NSA’s equity contribution to the acquisition totaled approximately $8.0 million.
NSA also completed the sale of two wholly owned self storage properties, totaling about 83,000 rentable square feet across approximately 600 storage units, for proceeds of $6.5 million.
Supplemental Financial Information
Comprehensive details regarding NSA’s third quarter 2025 financial results, including reconciliations of non-GAAP measures such as FFO, Core FFO, and NOI, are available in the Company’s Form 8-K filing with the U.S. Securities and Exchange Commission (SEC)
Non-GAAP Financial Measures
NSA uses certain non-GAAP financial metrics—including Funds From Operations (FFO), Core FFO, and Net Operating Income (NOI)—to assess its operational performance. Management believes these measures provide meaningful insights into the Company’s cash-generating ability and underlying business trends that may not be readily apparent from GAAP metrics alone.
While these measures are useful analytical tools, they should not be considered as substitutes for net income or other GAAP-based financial measures. NSA’s definitions may differ from similar metrics used by other REITs and, therefore, may not be directly comparable.
About National Storage Affiliates Trust
National Storage Affiliates Trust (NYSE: NSA) is a self-administered and self-managed real estate investment trust dedicated to the ownership, operation, and acquisition of self storage properties across the United States. The Company partners with experienced regional operators through its unique PRO structure to drive performance, efficiency, and long-term shareholder value.
