Why did NSA's EPS consistently beat forecasts in 2024?

National Storage (NSA) consistently beat EPS forecasts in 2024 due to a combination of factors: 1. **Strong Fundamentals**: NSA's portfolio of over 1,117 self-storage locations with 72.8 million square feet of rentable space provides a solid foundation for consistent earnings. This extensive footprint allows for diversified revenue streams and resilience against market fluctuations. 2. **Strategic Developments**: The company's strategic initiatives, such as acquisitions and expansions, have enhanced its market position and contributed to its financial performance. For instance, unlocking growth in the storage landscape could lead to increased operational efficiencies and higher earnings. 3. **Economies of Scale**: As a large player in the self-storage sector, NSA benefits from economies of scale. Fixed costs are distributed across a broad portfolio, which can lead to cost efficiencies and improved margins. This scale also provides NSA with bargaining power in the market, potentially leading to better pricing and occupancy rates. 4. **Financial Performance**: NSA reported a strong financial performance for the first half of FY25, with a profit after tax of $87.9 million and underlying earnings per security of 5.7 cents. This performance demonstrates the company's ability to generate earnings and cash flow, which can lead to positive surprises in earnings reports. 5. **Market Conditions**: Despite a year-over-year decline in revenue and EPS in Q4, NSA's Q2 earnings report showed revenue exceeding expectations, indicating that market conditions or operational improvements may have compensated for challenges in other periods. In summary, NSA's ability to consistently beat EPS forecasts in 2024 can be attributed to its strong fundamentals, strategic developments, economies of scale, financial performance, and favorable market conditions. These factors combined have likely contributed to the company's robust earnings and positive surprises in EPS.