National Storage 2025 Q1 Earnings Misses Targets as Net Income Declines 79.5%

National Storage (NSA) reported its fiscal 2025 Q1 earnings on May 6th, 2025. The company faced a challenging quarter as net income declined 79.5% compared to the same period last year. Despite the setback, NSA reaffirmed its Core FFO guidance for 2025, indicating an optimistic outlook for the remainder of the year. The company anticipates a sequential improvement in same store revenue and NOI growth, aligning with expectations. However, occupancy levels remain low, and street rates continue to grow, suggesting a positive momentum for the leasing season. NSA's medium-term outlook remains positive despite prevailing economic uncertainties.

Revenue
National Storage reported a total revenue of $188.35 million for Q1 2025, marking a 4.0% decrease from $196.15 million in Q1 2024. Rental revenue constituted the majority at $169.47 million, followed by other property-related revenue at $6.74 million. The management fees and other revenue added $12.13 million, culminating in the overall revenue figure.

Earnings/Net Income
National Storage experienced a sharp decline in earnings, with EPS falling 85.1% to $0.10 in Q1 2025 from $0.67 in Q1 2024. Net income dropped to $19.52 million, down from $95.09 million in the previous year’s first quarter. The significant drop in EPS signals challenging financial performance for the quarter.

Post-Earnings Price Action Review
Over the last five years, investing in National Storage (NSA) shares post-revenue increase quarter-over-quarter and holding for 30 days yielded a return of 6.53%, which is notably lower than the benchmark by 76.60%. This strategy resulted in a compound annual growth rate (CAGR) of 1.29%. The maximum drawdown was -14.75%, and the Sharpe ratio stood at 0.13, indicating modest risk-adjusted returns coupled with substantial volatility. While there was a positive return, the performance underachieved compared to broader market indices, suggesting that revenue growth alone has not been a reliable indicator of strong stock performance for NSA. Investors might need to consider additional factors beyond revenue growth when evaluating potential investments in NSA shares.

CEO Commentary
David Cramer, President and Chief Executive Officer, remarked that first-quarter results aligned with expectations, highlighting sequential improvement in same store revenue and NOI growth, indicating that the troughs in growth may be behind the company. He acknowledged that while occupancy levels remain low, street rates and in-place contract rents have shown consistent monthly growth through April, suggesting positive momentum for the upcoming leasing season. Cramer expressed a positive medium-term outlook for the self-storage sector despite prevailing economic uncertainties.

Guidance
The company anticipates continued sequential improvement in same store revenue and NOI growth as it progresses through the year. Cramer indicated that despite current challenges, the medium-term outlook for NSA remains optimistic, suggesting confidence in the self-storage sector's resilience amidst economic uncertainty.

Additional News
In recent weeks, National Storage Affiliates Trust (NSA) announced its participation in Nareit's REITweek 2025 Conference, set to take place in New York City from June 2 to 5, 2025. This event will provide NSA with an opportunity to engage with industry professionals and investors, showcasing its strategic initiatives and market position. NSA also announced a quarterly cash dividend of $0.57 per common share, reinforcing its commitment to returning value to shareholders. Additionally, the company has continued its share repurchase program, authorizing the buyback of up to $350 million of its common shares, reflecting confidence in its financial strategy and long-term growth prospects.

Article Polishing
National Storage (NSA) reported its fiscal 2025 Q1 earnings on May 06th, 2025. Revenue National Storage reported a total revenue of $188.35 million for Q1 2025, marking a 4.0% decrease from $196.15 million in Q1 2024. Earnings/Net Income National Storage experienced a sharp decline in earnings, with EPS falling 85.1% to $0.10 in Q1 2025 from $0.67 in Q1 2024. Post-Earnings Price Action Review Over the last five years, investing in National Storage (NSA) shares post-revenue increase quarter-over-quarter and holding for 30 days yielded a return of 6.53%, which is notably lower than the benchmark by 76.60%. CEO Commentary David Cramer, President and Chief Executive Officer, remarked that first-quarter results aligned with expectations, highlighting sequential improvement in same store revenue and NOI growth, indicating that the troughs in growth may be behind the company. Guidance The company anticipates continued sequential improvement in