PEOPLE
PROCESS
PLATFORM
PEOPLE . PROCESS . PLATFORM .
DRIVING GROWTH
Company Update
March 2024
FORWARD-LOOKING STATEMENTS AND NON-GAAP FINANCIAL MEASURES
FORWARD-LOOKING STATEMENTS: We make forward-looking statements in this presentation that are subject to risks and uncertainties. These forward-looking statements include information about possible or assumed future results of our business, financial condition, liquidity, results of operations, plans and objectives. When we use the words "believe," "expect," "anticipate," "estimate," "plan," "continue," "intend," "should," "may" or similar expressions, we intend to identify forward-looking statements. The forward-looking statements contained in this presentation reflect our current views about future events and are subject to numerous known and unknown risks, uncertainties, assumptions and changes in circumstances that may cause our actual results to differ significantly from those expressed in any forward-looking statement.
The forward-looking statements are based on our beliefs, assumptions and expectations of our future performance, taking into account all information currently available to us. Forward-looking statements are not predictions of future events. These beliefs, assumptions and expectations can change as a result of many possible events or factors, not all of which are known to us. Some of these factors are described in our annual report on Form 10-K filed with the SEC on February 28, 2024 (the "Annual Report") under the headings "business," "risk factors," "properties," and "management's discussion and analysis of financial condition and results of operations," as applicable. You may get these documents for free by visiting EDGAR on the SEC website at www.sec.gov. If a change occurs, our business, financial condition, liquidity and results of operations may vary materially from those expressed in our forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made. New risks and uncertainties arise over time, and it is not possible for us to predict those events or how they may affect us. Except as required by law, we are not obligated to, and do not intend to, update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
This presentation and the information contained herein are for informational purposes only and may not be relied upon for any purpose, including in connection with the purchase or sale of any of our securities. Such information does not constitute an offer to sell or a solicitation of an offer to buy any security described herein.
Non-GAAP Financial Measures: This presentation contains certain non-GAAP financial measures, such as funds from operations ("FFO"), Core FFO, net operating income ("NOI"), EBITDA, and Adjusted EBITDA, which are each defined in NSA's Annual Report. These non-GAAP financial 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 presentation of FFO, Core FFO, NOI, EBITDA, and Adjusted EBITDA herein 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 and should not be considered as alternative measures of liquidity. In addition, NSA's definitions and method of calculating these measures may be different from those used by other companies, and, accordingly, may not be comparable to similar measures as defined and calculated by other companies that do not use the same methodology as NSA. Reconciliations of these non-GAAP financial measures to their most directly comparable GAAP measures for the three months ended December 31, 2023, 2022, 2021, 2020 and 2019, September 30, 2023, 2022, 2021, 2020, and 2019, June 30, 2023, 2022, 2021, 2020, and 2019, and March 31, 2023, 2022, 2021, 2020, 2019 are available in NSA's earnings releases for such period ends, which are furnished to the SEC quarterly as Exhibit 99.1 on Current Reports on Form 8-K pursuant to Item 2.02.
Information in this presentation is as of December 31, 2023, except as otherwise noted. See "Definitions and Methodology" in the Appendix for certain definitions and calculation methodologies of certain terms and metrics used herein.
TABLE OF CONTENTS
SELF STORAGE INDUSTRY OVERVIEW
TRACK RECORD OF PERFORMANCE
MULTI-FACETED GROWTH STRATEGY
FLEXIBLE CAPITAL STRUCTURE SUPPORTS FUTURE GROWTH
CORPORATE RESPONSIBILITY OVERVIEW
APPENDIX (including Definitions and Methodology)
3
SELF STORAGE INDUSTRY OVERVIEW
1
4
HIGHLY FRAGMENTED INDUSTRY: CONSOLIDATION OPPORTUNITY
Self Storage Top Operator Market Share
Market Share by # of Facilities(1)
(Approximately 51,000 self storage facilities in the U.S.)
TOP 5 | 17% | |||||||||||
32% | ||||||||||||
TOP 25 | 28% | |||||||||||
48% | ||||||||||||
TOP 50 | 31% | |||||||||||
53% | ||||||||||||
TOP 100 | 33% | |||||||||||
57% | ||||||||||||
0% | 10% | 20% | 30% | 40% | 50% | 60% | ||||||
By Number of Facilities | By Rentable SF | |||||||||||
- Source: 2023 Self Storage Almanac.
- Represents top 100 operators, excluding publicly traded REITs and UHAL.
- Includes CUBE, EXR, LSI, PSA and UHAL.
NSA
2%
Large
Private
Operators
12%(2)
All Other
Public
Operators
19%(3)
All Other
Private
Operators
67%
SELF STORAGE INDUSTRY OVERVIEW | COMPANY OVERVIEW | TRACK RECORD OF PERFORMANCE | MULTI-FACETED GROWTH STRATEGY | FLEXIBLE CAPITAL STRUCTURE SUPPORTS FUTURE GROWTH | CORPORATE RESPONSIBILITY | APPENDIX | 5 |
SELF STORAGE: HIGHER RETURNS, LOWER VOLATILITY
SELF STORAGE HAS OUTPERFORMED OVER THE PAST 29 YEARS
NAREIT Equity REIT Sectors: 29 Yrs. Avg. Return vs. Volatility(1)
Even in the worst five-year period, self storage delivered >4.5% total shareholder return per year(1)
Year: 1994-2022
18.0%
17.0%
16.0%
15.0%
Self Storage 17.3%
Lower Volatility
20.0%
15.0%
10.0%
5.0% |
Avg. % Total Return per
14.0%
13.0%
12.0%
11.0%
10.0%
9.0%
8.0%
0.0
Return | Industrial | 14.2% | ||||||||||||||
Apartments | 12.6% | |||||||||||||||
Higher | ||||||||||||||||
Health Care | 11.5% | |||||||||||||||
Retail | 11.2% | |||||||||||||||
Office | 10.4% | |||||||||||||||
Diversified | 8.5% | Lodging | 8.5% | |||||||||||||
0.5 | 1.0 | 1.5 | 2.0 | 2.5 | 3.0 | 3.5 | 4.0 |
0.0% | -16.2% | -5.4% | -7.0% | -3.7% | -12.3% | |||||||
4.7% | 3.2% | 1.2% | ||||||||||
-5.0% | 15.2% | 11.3% | 10.9% | 10.9% | 9.6% | 8.6% | 7.1% | 3.9% |
-10.0%
-15.0%
-20.0%
Self | Apartments | Health | Industrial | Retail | Office | Diversified | Lodging/ |
Storage | Care | Resorts |
Volatility Ratio: Std Deviation of Return divided by Avg. Return 1994-2022
Average annual return across | Lowest average annual total return |
each 5-year period | over a 5-year period |
(1) Source: NAREIT, see appendix for additional detail.
SELF STORAGE INDUSTRY OVERVIEW | COMPANY OVERVIEW | TRACK RECORD OF PERFORMANCE | MULTI-FACETED GROWTH STRATEGY | FLEXIBLE CAPITAL STRUCTURE SUPPORTS FUTURE GROWTH | CORPORATE RESPONSIBILITY | APPENDIX | 6 |
COMPANY OVERVIEW
2
7
FULL-YEAR 2023 UPDATE
$9.9B
TOTAL ENTERPRISE VALUE(1)
2.4%
Y-O-Y SAME STORE REVENUE
GROWTH
-4.3%
Y-O-Y CORE FFO/SHARE
GROWTH
- See appendix for definition.
- Excludes 39 self storage properties classified as held for sale at December 31, 2023.
1,050
PROPERTIES(2)
1.6%
Y-O-Y SAME STORE NOI
GROWTH
$230M
WHOLLY-OWNED ACQUISITIONS
WELL-DIVERSIFIED ACROSS
42
STATES + PUERTO RICO
89.1%
SAME STORE AVG. OCCUPANCY
3.7%
Y-O-Y GROWTH IN
DIVIDENDS PAID PER SHARE
SELF STORAGE INDUSTRY OVERVIEW | COMPANY OVERVIEW | TRACK RECORD OF PERFORMANCE | MULTI-FACETED GROWTH STRATEGY | FLEXIBLE CAPITAL STRUCTURE SUPPORTS FUTURE GROWTH | CORPORATE RESPONSIBILITY | APPENDIX | 8 |
PORTFOLIO SALE DRIVES OPERATING EFFICIENCIES AND ENHANCES GROWTH OPPORTUNITIES
- Properties: 71 Storage facilities
- Transaction Price: $540M(1)
- Total Storage RSF: 4.4 million
- States: 14
- MSAs: 33
- Occupancy(2): 84% (vs NSA same store 87%)
- Average facility size: 62K RSF (vs NSA portfolio 65K)
- Average NOI Margin(3): ~68% (vs ~73% NSA same store portfolio)
Key takeaways:
- Greatly improves portfolio concentration since over 80% of the 33 MSAs have only two or fewer properties, and enhances operational efficiencies
- Reflects inherent portfolio value above implied market cap rate
- Generates capital for balance sheet initiatives in an accretive manner to drive future growth
- Before disposition costs and credits.
- Period-endNovember 2023.
- Year-to-dateas of November 30, 2023.
SELF STORAGE INDUSTRY OVERVIEW | COMPANY OVERVIEW | TRACK RECORD OF PERFORMANCE | MULTI-FACETED GROWTH STRATEGY | FLEXIBLE CAPITAL STRUCTURE SUPPORTS FUTURE GROWTH | CORPORATE RESPONSIBILITY | APPENDIX | 9 |
PORTFOLIO SALE INCREASES OVERALL PROPERTY CONCENTRATION
Selling properties in non-core Midwest markets
SELF STORAGE INDUSTRY OVERVIEW | COMPANY OVERVIEW | TRACK RECORD OF PERFORMANCE | MULTI-FACETED GROWTH STRATEGY | FLEXIBLE CAPITAL STRUCTURE SUPPORTS FUTURE GROWTH | CORPORATE RESPONSIBILITY | APPENDIX | 10 |
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Disclaimer
National Storage Affiliates Trust published this content on 03 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 March 2024 09:23:03 UTC.