Company Announcements

National Storage Affiliates Trust Reports Second Quarter 2022 Results

GREENWOOD VILLAGE, Colo.--(BUSINESS WIRE)--Aug. 3, 2022-- National Storage Affiliates Trust ("NSA" or the "Company") (NYSE: NSA) today reported the Company’s second quarter 2022 results.

Second Quarter 2022 Highlights

  • Reported net income of $48.4 million for the second quarter of 2022, an increase of 35.7% compared to the second quarter of 2021. Reported diluted earnings per share of $0.24 for the second quarter of 2022 compared to $0.25 for the second quarter of 2021.
  • Reported core funds from operations ("Core FFO") of $91.6 million, or $0.71 per share for the second quarter of 2022, an increase of 29.1% per share compared to the second quarter of 2021.
  • Reported an increase in same store net operating income ("NOI") of 17.3% for the second quarter of 2022 compared to the same period in 2021, driven by a 14.6% increase in same store total revenues partially offset by an increase of 7.6% in same store property operating expenses.
  • Reported same store period-end occupancy of 95.2% as of June 30, 2022, a decrease of 140 basis points compared to June 30, 2021.
  • Acquired eight wholly-owned self storage properties for approximately $114.5 million during the second quarter of 2022. Consideration for these acquisitions included the issuance of $13.9 million of OP equity.
  • One of the Company's unconsolidated real estate ventures acquired seven self storage properties for approximately $207.6 million. The venture financed the acquisition with capital contributions from the venture members, of which the Company contributed approximately $51.9 million.
  • Executed an agreement with lenders for a new $285 million term loan which matures in seven years and has an effective, variable interest rate of 3.34% as of June 30, 2022.
  • Announced the promotion of David Cramer, 58, who was previously the Company's executive vice president and chief operating officer to the position of president and chief operating officer, effective July 1, 2022.
  • Kroll Bond Rating Agency upgraded the issuer credit rating of NSA's operating partnership to BBB+ with a Stable Outlook from BBB with a Positive Outlook.

Highlights Subsequent to Quarter-End

  • Acquired six wholly-owned self storage properties for approximately $71.6 million.
  • On July 11, 2022, NSA approved a share repurchase program authorizing, but not obligating, the repurchase of up to $400 million of NSA's common shares of beneficial interest from time to time. NSA expects to acquire shares through open market or privately negotiated transactions. The timing and amount of repurchase transactions, if any, will be determined by NSA's management based on its evaluation of market conditions, share price, legal requirements and other factors.

Tamara Fischer, Chief Executive Officer, commented, “We’re exceptionally pleased to deliver another quarter of double-digit growth in same store NOI and Core FFO per share, both of which remain well above industry historical averages. We were also active on the acquisition front, closing on the acquisition of 15 stores valued at over $320 million. As the economy enters more challenging times, NSA's differentiated structure and exposure to secondary, suburban and sunbelt markets should continue to benefit all of our stakeholders." Regarding the establishment of its share repurchase program, Ms. Fischer continued, “We’re pleased that our board has authorized the program which provides strategic flexibility to our capital investment opportunities. Based on our outlook for NSA, the depressed stock price provides a compelling opportunity to deliver an outstanding long-term ROI for our shareholders.”

Financial Results

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

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2022

 

 

2021

 

Growth

 

 

2022

 

 

2021

 

Growth

Net income

$

48,425

 

$

35,675

 

35.7

%

 

$

93,211

 

$

63,310

 

47.2

%

 

 

 

 

 

 

 

 

 

 

 

 

Funds From Operations ("FFO")(1)

$

90,932

 

$

59,603

 

52.6

%

 

$

177,788

 

$

110,510

 

60.9

%

Add back acquisition costs

 

682

 

 

118

 

478.0

%

 

 

1,235

 

 

410

 

201.2

%

Core FFO(1)

$

91,614

 

$

59,721

 

53.4

%

 

$

179,023

 

$

110,920

 

61.4

%

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share - basic

$

0.24

 

$

0.33

 

(27.3

)%

 

$

0.48

 

$

0.58

 

(17.2

)%

Earnings per share - diluted

$

0.24

 

$

0.25

 

(4.0

)%

 

$

0.48

 

$

0.44

 

9.1

%

 

 

 

 

 

 

 

 

 

 

 

 

FFO per share and unit(1)

$

0.70

 

$

0.55

 

27.3

%

 

$

1.37

 

$

1.03

 

33.0

%

Core FFO per share and unit(1)

$

0.71

 

$

0.55

 

29.1

%

 

$

1.38

 

$

1.04

 

32.7

%

(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.

Net income increased $12.8 million for the second quarter of 2022 and $29.9 million for the six months ended June 30, 2022 ("year-to-date") as compared to the same periods in 2021. These increases resulted primarily from additional NOI generated from the 206 self storage properties acquired between July 1, 2021 and June 30, 2022, same store NOI growth, increases in management fees and other revenue, and an increase in equity in earnings from the Company's unconsolidated real estate ventures, partially offset by increases in depreciation and amortization, interest expense and general and administrative expenses.

The increases in FFO and Core FFO for the second quarter of 2022 and year-to-date were primarily the result of incremental NOI from properties acquired between July 1, 2021 and June 30, 2022 and same store NOI growth, partially offset by an increase in interest expense.

Same Store Operating Results (629 Stores)

($ in thousands, except per square foot data)

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2022

 

 

 

2021

 

 

Growth

 

 

2022

 

 

 

2021

 

 

Growth

Total revenues

$

137,339

 

 

$

119,827

 

 

14.6

%

 

$

269,454

 

 

$

233,132

 

 

15.6

%

Property operating expenses

 

35,602

 

 

 

33,080

 

 

7.6

%

 

 

69,833

 

 

 

66,275

 

 

5.4

%

Net Operating Income (NOI)

$

101,737

 

 

$

86,747

 

 

17.3

%

 

$

199,621

 

 

$

166,857

 

 

19.6

%

NOI Margin

 

74.1

%

 

 

72.4

%

 

1.7

%

 

 

74.1

%

 

 

71.6

%

 

2.5

%

 

 

 

 

 

 

 

 

 

 

 

 

Average Occupancy

 

95.1

%

 

 

95.2

%

 

(0.1

) %

 

 

94.9

%

 

 

93.7

%

 

1.2

%

Average Annualized Rental Revenue Per Occupied Square Foot

$

14.55

 

 

$

12.66

 

 

14.9

%

 

$

14.30

 

 

$

12.51

 

 

14.3

%

Year-over-year same store total revenues increased 14.6% for the second quarter of 2022 and 15.6% year-to-date as compared to the same periods in 2021. The increase for the second quarter was driven primarily by a 14.9% increase in average annualized rental revenue per occupied square foot, partially offset by a 10 basis point decrease in average occupancy. The year-to-date increase was driven primarily by a 120 basis point increase in average occupancy and a 14.3% increase in average annualized rental revenue per occupied square foot. Markets which generated above portfolio average same store total revenue growth include: Atlanta, Riverside-San Bernardino and Sarasota. Markets which generated below portfolio average same store total revenue growth include: Portland, Colorado Springs and Kansas City.

Year-over-year same store property operating expenses increased 7.6% for the second quarter of 2022 and 5.4% year-to-date as compared to the same periods in 2021. The increases primarily resulted from increases in property tax expense and utilities.

Investment Activity

During the second quarter, NSA invested $114.5 million in the acquisition of eight wholly-owned self storage properties consisting of approximately 685,000 rentable square feet configured in approximately 5,400 storage units. Total consideration for these acquisitions included approximately $100.0 million of net cash, $13.9 million of OP units, and the assumption of approximately $0.6 million of other liabilities. Additionally, one of the Company's unconsolidated real estate ventures acquired seven self storage properties for approximately $207.6 million. The venture financed the acquisition with capital contributions from the venture members, of which the Company contributed approximately $51.9 million.

Balance Sheet

On April 11, 2022, Kroll Bond Rating Agency upgraded the issuer credit rating of the Company's operating partnership to BBB+ with a Stable Outlook from BBB with a Positive Outlook.

On June 24, 2022, NSA entered into an agreement with a syndicated group of lenders for a new $285 million unsecured term loan, including an expansion option, which, if exercised in full, would provide for total borrowings of up to $300 million. The term loan matures in seven years and has an effective, variable interest rate of 3.34% as of June 30, 2022, and is subject to leverage and credit rating-based margins ranging from 1.55% to 2.2% over SOFR. NSA used the proceeds from the term loan to repay outstanding amounts under its revolving line of credit.

Common Share Dividends

On May 25, 2022, NSA'sBoard of Trustees declared a quarterly cash dividend of $0.55 per common share, representing a 45% increase from the second quarter 2021 and a 10% increase from the previous quarter. The second quarter 2022 dividend was paid on June 30, 2022 to shareholders of record as of June 15, 2022.

2022 Guidance

NSA reaffirms its previously provided FFO guidance estimates and related assumptions for the year ended December 31, 2022. The 2022 same store pool changed from 631 stores at March 31, 2022 to 629 stores at June 30, 2022 due to significant expansions at two of our properties.

 

Current Ranges for
Full Year 2022

 

Actual Results for Full Year 2021

 

Low

 

High

 

Core FFO per share(1)

$

2.80

 

 

$

2.85

 

 

$

2.26

 

 

 

 

 

 

 

Same store operations(2)

 

 

 

 

 

Total revenue growth

 

11.0

%

 

 

13.0

%

 

 

15.1

%

Property operating expenses growth

 

5.0

%

 

 

6.25

%

 

 

4.0

%

NOI growth

 

14.0

%

 

 

16.0

%

 

 

19.8

%

 

 

 

 

 

 

General and administrative expenses

 

 

 

 

 

General and administrative expenses (excluding equity-based compensation), in millions

$

52.0

 

 

$

54.0

 

 

$

45.5

 

Equity-based compensation, in millions

$

6.5

 

 

$

7.0

 

 

$

5.5

 

 

 

 

 

 

 

Management fees and other revenue, in millions

$

27.0

 

 

$

29.0

 

 

$

24.4

 

Core FFO from unconsolidated real estate ventures, in millions

$

24.0

 

 

$

25.0

 

 

$

20.7

 

 

 

 

 

 

 

Subordinated performance unit distributions, in millions

$

58.0

 

 

$

61.0

 

 

$

49.8

 

 

 

 

 

 

 

Acquisitions of self storage properties, in millions

$

400.0

 

 

$

600.0

 

 

$

2,175.0

 

 

Current Ranges for
Full Year 2022

 

Low

 

High

Earnings (loss) per share - diluted

$

1.28

 

 

$

1.38

 

Impact of the difference in weighted average number of shares and GAAP accounting for noncontrolling interests, two-class method and treasury stock method

 

0.16

 

 

 

0.02

 

Add real estate depreciation and amortization, including NSA's share of unconsolidated venture real estate depreciation and amortization

 

1.80

 

 

 

1.90

 

FFO attributable to subordinated unitholders

 

(0.45

)

 

 

(0.47

)

Add acquisition costs and NSA's share of unconsolidated real estate venture acquisition costs

 

0.01

 

 

 

0.02

 

Core FFO per share and unit

$

2.80

 

 

$

2.85

 

(1)

The table above provides a reconciliation of the range of estimated earnings (loss) per share - diluted to estimated Core FFO per share and unit.

(2)

2022 guidance reflects NSA's 2022 same store pool comprising 629 stores. 2021 actual results reflect NSA's 2021 same store pool comprising 560 stores.

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 http://ir.nationalstorageaffiliates.com/quarterly-reporting and as exhibit 99.1 to the Company's Form 8-K furnished to the SEC on August 3, 2022.

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.

Quarterly Teleconference and Webcast

The Company will host a conference call at 1:00 pm Eastern Time on Thursday, August 4, 2022 to discuss its second quarter 2022 financial results. At the conclusion of the call, management will accept questions from certified financial analysts. All other participants are encouraged to listen to a webcast of the call by accessing the link found on the Company's website at www.nationalstorageaffiliates.com.

Conference Call and Webcast:

Date/Time: Thursday, August 4, 2022, 1:00 pm ET
Webcast available at: www.nationalstorageaffiliates.com
Domestic (Toll Free US & Canada): 877.407.9711
International: 412.902.1014

Replay:

Domestic (Toll Free US & Canada): 877.660.6853
International: 201.612.7415
Conference ID: 13692161

A replay of the call will be available for one week through Thursday, August 11, 2022. A replay of the webcast will be available for 30 days on NSA's website at www.nationalstorageaffiliates.com.

Upcoming Industry Conference

NSA management is scheduled to participate in the BofA Securities 2022 Global Real Estate ConferenceSeptember 13 - September 14, 2022 in New York, New York and in the Evercore 8th Annual Storage Symposium on September 29, 2022 in New York, New York.

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 June 30, 2022, the Company held ownership interests in and operated 1,076 self storage properties located in 42 states and Puerto Rico with approximately 69.9 million rentable square feet. 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.nationalstorageaffiliates.com. NSA is included in the MSCI US REIT Index (RMS/RMZ), the Russell 2000 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 acquisition of properties, including those under contract and the Company's ability to execute on its acquisition pipeline; the timing of acquisitions under contract; the internalization of retiring participating regional operators ("PROs") into the Company; negative impacts from the COVID-19 pandemic on the economy, the self storage industry, the broader financial markets, the Company's financial condition, results of operations and cash flows and the ability of the Company's tenants to pay rent; and the Company's guidance estimates for the year ended December 31, 2022. 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 June 30,

 

Six Months Ended June 30,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

 

REVENUE

 

 

 

 

 

 

 

 

Rental revenue

$

184,636

 

 

$

127,310

 

 

$

359,105

 

 

$

240,437

 

 

Other property-related revenue

 

6,341

 

 

 

4,829

 

 

 

12,507

 

 

 

8,966

 

 

Management fees and other revenue

 

7,913

 

 

 

6,107

 

 

 

14,462

 

 

 

11,835

 

 

Total revenue

 

198,890

 

 

 

138,246

 

 

 

386,074

 

 

 

261,238

 

 

OPERATING EXPENSES

 

 

 

 

 

 

 

 

Property operating expenses

 

53,188

 

 

 

36,654

 

 

 

102,546

 

 

 

71,258

 

 

General and administrative expenses

 

14,702

 

 

 

12,450

 

 

 

28,668

 

 

 

23,688

 

 

Depreciation and amortization

 

57,891

 

 

 

36,051

 

 

 

115,963

 

 

 

68,475

 

 

Other

 

525

 

 

 

310

 

 

 

995

 

 

 

707

 

 

Total operating expenses

 

126,306

 

 

 

85,465

 

 

 

248,172

 

 

 

164,128

 

 

OTHER (EXPENSE) INCOME

 

 

 

 

 

 

 

 

Interest expense

 

(24,448

)

 

 

(17,339

)

 

 

(47,095

)

 

 

(34,131

)

 

Equity in earnings of unconsolidated real estate ventures

 

1,962

 

 

 

1,174

 

 

 

3,456

 

 

 

1,933

 

 

Acquisition costs

 

(682

)

 

 

(118

)

 

 

(1,235

)

 

 

(410

)

 

Non-operating expense

 

(261

)

 

 

(148

)

 

 

(373

)

 

 

(321

)

 

Gain on sale of self storage properties

 

 

 

 

 

 

 

2,134

 

 

 

 

 

Other expense, net

 

(23,429

)

 

 

(16,431

)

 

 

(43,113

)

 

 

(32,929

)

 

Income before income taxes

 

49,155

 

 

 

36,350

 

 

 

94,789

 

 

 

64,181

 

 

Income tax expense

 

(730

)

 

 

(675

)

 

 

(1,578

)

 

 

(871

)

 

Net income

 

48,425

 

 

 

35,675

 

 

 

93,211

 

 

 

63,310

 

 

Net income attributable to noncontrolling interests

 

(23,387

)

 

 

(6,957

)

 

 

(42,945

)

 

 

(13,754

)

 

Net income attributable to National Storage Affiliates Trust

 

25,038

 

 

 

28,718

 

 

 

50,266

 

 

 

49,556

 

 

Distributions to preferred shareholders

 

(3,382

)

 

 

(3,276

)

 

 

(6,661

)

 

 

(6,551

)

 

Net income attributable to common shareholders

$

21,656

 

 

$

25,442

 

 

$

43,605

 

 

$

43,005

 

 

 

 

 

 

 

 

 

 

 

Earnings per share - basic

$

0.24

 

 

$

0.33

 

 

$

0.48

 

 

$

0.58

 

 

Earnings per share - diluted

$

0.24

 

 

$

0.25

 

 

$

0.48

 

 

$

0.44

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding - basic

 

91,541

 

 

 

76,712

 

 

 

91,433

 

 

 

74,267

 

 

Weighted average shares outstanding - diluted

 

91,541

 

 

 

129,578

 

 

 

91,433

 

 

 

126,396

 

 

National Storage Affiliates Trust

Consolidated Balance Sheets

(dollars in thousands, except per share amounts)

(unaudited)

 

 

 

 

 

June 30,

 

December 31,

 

 

2022

 

 

 

2021

 

ASSETS

 

 

 

Real estate

 

 

 

Self storage properties

$

6,016,699

 

 

$

5,798,188

 

Less accumulated depreciation

 

(672,208

)

 

 

(578,717

)

Self storage properties, net

 

5,344,491

 

 

 

5,219,471

 

Cash and cash equivalents

 

32,345

 

 

 

25,013

 

Restricted cash

 

3,271

 

 

 

2,862

 

Debt issuance costs, net

 

1,858

 

 

 

2,433

 

Investment in unconsolidated real estate ventures

 

234,075

 

 

 

188,187

 

Other assets, net

 

121,274

 

 

 

102,417

 

Operating lease right-of-use assets

 

21,727

 

 

 

22,211

 

Total assets

$

5,759,041

 

 

$

5,562,594

 

LIABILITIES AND EQUITY

 

 

 

Liabilities

 

 

 

Debt financing

$

3,142,293

 

 

$

2,940,931

 

Accounts payable and accrued liabilities

 

68,166

 

 

 

59,262

 

Interest rate swap liabilities

 

 

 

 

33,757

 

Operating lease liabilities

 

23,558

 

 

 

23,981

 

Deferred revenue

 

23,711

 

 

 

22,208

 

Total liabilities

 

3,257,728

 

 

 

3,080,139

 

Equity

 

 

 

Preferred shares of beneficial interest, par value $0.01 per share. 50,000,000 authorized, 9,017,588 and 8,736,719 issued and outstanding at June 30, 2022 and December 31, 2021, respectively, at liquidation preference

 

225,439

 

 

 

218,418

 

Common shares of beneficial interest, par value $0.01 per share. 250,000,000 shares authorized, 91,755,672 and 91,198,929 shares issued and outstanding at June 30, 2022 and December 31, 2021, respectively

 

918

 

 

 

912

 

Additional paid-in capital

 

1,841,880

 

 

 

1,866,773

 

Distributions in excess of earnings

 

(343,834

)

 

 

(291,263

)

Accumulated other comprehensive income (loss)

 

24,372

 

 

 

(19,611

)

Total shareholders' equity

 

1,748,775

 

 

 

1,775,229

 

Noncontrolling interests

 

752,538

 

 

 

707,226

 

Total equity

 

2,501,313

 

 

 

2,482,455

 

Total liabilities and equity

$

5,759,041

 

 

$

5,562,594

 

Reconciliation of Net Income to FFO and Core FFO
(in thousands, except per share and unit amounts) (unaudited)

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

 

Net income

$

48,425

 

 

$

35,675

 

 

$

93,211

 

 

$

63,310

 

 

Add (subtract):

 

 

 

 

 

 

 

 

Real estate depreciation and amortization

 

57,581

 

 

 

35,698

 

 

 

115,340

 

 

 

67,768

 

 

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

 

4,324

 

 

 

3,840

 

 

 

8,170

 

 

 

7,721

 

 

Gain on sale of self storage properties

 

 

 

 

 

 

 

(2,134

)

 

 

 

 

Distributions to preferred shareholders and unitholders

 

(3,652

)

 

 

(3,517

)

 

 

(7,204

)

 

 

(7,034

)

 

FFO attributable to subordinated performance unitholders(1)

 

(15,746

)

 

 

(12,093

)

 

 

(29,595

)

 

 

(21,255

)

 

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

 

90,932

 

 

 

59,603

 

 

 

177,788

 

 

 

110,510

 

 

Add:

 

 

 

 

 

 

 

 

Acquisition costs

 

682

 

 

 

118

 

 

 

1,235

 

 

 

410

 

 

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

$

91,614

 

 

$

59,721

 

 

$

179,023

 

 

$

110,920

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

Weighted average shares outstanding - basic

 

91,541

 

 

 

76,712

 

 

 

91,433

 

 

 

74,267

 

 

Weighted average restricted common shares outstanding

 

28

 

 

 

33

 

 

 

28

 

 

 

29

 

 

Weighted average effect of forward offering agreement(3)

 

 

 

 

 

 

 

 

 

 

199

 

 

Weighted average OP units outstanding

 

35,390

 

 

 

29,963

 

 

 

35,370

 

 

 

29,858

 

 

Weighted average DownREIT OP unit equivalents outstanding

 

1,925

 

 

 

1,925

 

 

 

1,925

 

 

 

1,925

 

 

Weighted average LTIP units outstanding

 

501

 

 

 

536

 

 

 

552

 

 

 

561

 

 

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

 

129,385

 

 

 

109,169

 

 

 

129,308

 

 

 

106,839

 

 

 

 

 

 

 

 

 

 

 

FFO per share and unit

$

0.70

 

 

$

0.55

 

 

$

1.37

 

 

$

1.03

 

 

Core FFO per share and unit

$

0.71

 

 

$

0.55

 

 

$

1.38

 

 

$

1.04

 

 

(1)

Amounts represent distributions declared for subordinated performance unitholders and DownREIT subordinated performance unitholders for the periods presented.

(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. Subordinated performance units, DownREIT subordinated performance units and 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(4) for additional discussion of subordinated performance units, DownREIT subordinated performance units, and LTIP units in the calculation of FFO and Core FFO per share and unit.

(3)

Represents the dilutive effect of the forward offering from the application of the treasury stock method.

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 June 30,

 

Six Months Ended June 30,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Earnings per share - diluted

$

0.24

 

 

$

0.25

 

 

$

0.48

 

 

$

0.44

 

Impact of the difference in weighted average number of shares(4)

 

(0.07

)

 

 

0.04

 

 

 

(0.14

)

 

 

0.09

 

Impact of GAAP accounting for noncontrolling interests, two-class method and treasury stock method(5)

 

0.18

 

 

 

 

 

 

0.33

 

 

 

 

Add real estate depreciation and amortization

 

0.44

 

 

 

0.33

 

 

 

0.89

 

 

 

0.63

 

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

 

0.03

 

 

 

0.04

 

 

 

0.06

 

 

 

0.07

 

Subtract gain on sale of self storage properties

 

 

 

 

 

 

 

(0.02

)

 

 

 

FFO attributable to subordinated performance unitholders

 

(0.12

)

 

 

(0.11

)

 

 

(0.23

)

 

 

(0.20

)

FFO per share and unit

 

0.70

 

 

 

0.55

 

 

 

1.37

 

 

 

1.03

 

Add acquisition costs

 

0.01

 

 

 

 

 

 

0.01

 

 

 

0.01

 

Core FFO per share and unit

$

0.71

 

 

$

0.55

 

 

$

1.38

 

 

$

1.04

 

(4)  

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 and the hypothetical conversion of subordinated performance units, and DownREIT subordinated performance units into OP units, even though such units may only be convertible into OP units (i) after a lock-out period and (ii) upon certain events or conditions. For additional information about the conversion of subordinated performance units and DownREIT subordinated performance units into OP units, see Note 10 to the Company's most recent Annual Report on Form 10-K, filed with the Securities and Exchange Commission. 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 and excludes all subordinated performance units and DownREIT subordinated performance units because their effect has been accounted for through the allocation of FFO to the related unitholders based on distributions declared.

(5)  

Represents the effect of adjusting the numerator to consolidated net income (loss) 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(4).

Net Operating Income
(dollars in thousands) (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Net income

$

48,425

 

 

$

35,675

 

 

$

93,211

 

 

$

63,310

 

(Subtract) add:

 

 

 

 

 

 

 

Management fees and other revenue

 

(7,913

)

 

 

(6,107

)

 

 

(14,462

)

 

 

(11,835

)

General and administrative expenses

 

14,702

 

 

 

12,450

 

 

 

28,668

 

 

 

23,688

 

Other

 

525

 

 

 

310

 

 

 

995

 

 

 

707

 

Depreciation and amortization

 

57,891

 

 

 

36,051

 

 

 

115,963

 

 

 

68,475

 

Interest expense

 

24,448

 

 

 

17,339

 

 

 

47,095

 

 

 

34,131

 

Equity in earnings of unconsolidated real estate ventures

 

(1,962

)

 

 

(1,174

)

 

 

(3,456

)

 

 

(1,933

)

Acquisition costs

 

682

 

 

 

118

 

 

 

1,235

 

 

 

410

 

Income tax expense

 

730

 

 

 

675

 

 

 

1,578

 

 

 

871

 

Gain on sale of self storage properties

 

 

 

 

 

 

 

(2,134

)

 

 

 

Non-operating expense

 

261

 

 

 

148

 

 

 

373

 

 

 

321

 

Net Operating Income

$

137,789

 

 

$

95,485

 

 

$

269,066

 

 

$

178,145

 

 

 

 

 

 

 

 

 

EBITDA and Adjusted EBITDA
(dollars in thousands) (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2022

 

 

2021

 

 

2022

 

 

 

2021

Net income

$

48,425

 

$

35,675

 

$

93,211

 

 

$

63,310

Add:

 

 

 

 

 

 

 

Depreciation and amortization

 

57,891

 

 

36,051

 

 

115,963

 

 

 

68,475

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

 

4,324

 

 

3,840

 

 

8,170

 

 

 

7,721

Interest expense

 

24,448

 

 

17,339

 

 

47,095

 

 

 

34,131

Income tax expense

 

730

 

 

675

 

 

1,578

 

 

 

871

EBITDA

 

135,818

 

 

93,580

 

 

266,017

 

 

 

174,508

Add (subtract):

 

 

 

 

 

 

 

Acquisition costs

 

682

 

 

118

 

 

1,235

 

 

 

410

Gain on sale of self storage properties

 

 

 

 

 

(2,134

)

 

 

Equity-based compensation expense

 

1,580

 

 

1,348

 

 

3,124

 

 

 

2,634

Adjusted EBITDA

$

138,080

 

$

95,046

 

$

268,242

 

 

$

177,552

 

National Storage Affiliates Trust
Investor/Media Relations
George Hoglund, CFA
Vice President - Investor Relations
720.630.2160
ghoglund@nsareit.net

Source: National Storage Affiliates Trust