National Storage 2025 Q2 Earnings Net Income Falls 4.1% Despite EPS Growth

National Storage (NSA) reported fiscal 2025 Q2 earnings on August 5, 2025. The results showed mixed performance, with earnings per share rising above expectations but net income declining year-over-year. Management revised guidance downward due to ongoing market headwinds, signaling a more cautious outlook for the remainder of the year.

Revenue
National Storage reported a 0.8% year-over-year decline in total revenue, ending at $188.84 million in 2025 Q2 compared to $190.45 million in 2024 Q2. Rental revenue formed the largest portion of the company’s income, contributing $169.84 million, while other property-related revenue added $6.77 million. Management fees and other income accounted for the remaining $12.23 million, reflecting a diversified but slightly contracted revenue base.

Earnings/Net Income
Despite a 4.1% drop in net income to $30.96 million in Q2 2025 from $32.28 million in the prior year, National Storage’s earnings per share (EPS) increased by 18.8% to $0.19, indicating positive earnings growth at the per-share level.

Price Action
During the latest trading day, NSA shares rose 6.19%. However, the stock has faced downward pressure in the short term, with a 3.90% decline over the past full week and a 7.11% drop month-to-date.

Post Earnings Price Action Review
A post-earnings trading strategy of buying NSA shares when the company outperformed expectations and holding for 30 days delivered an impressive 43.11% return. This far exceeded the benchmark, which remained at 0.00%, with an excess return of 43.11%. The strategy demonstrated strong risk management, with a maximum drawdown of 0.00% and a Sharpe ratio of 0.57, indicating a favorable return-to-risk profile.

CEO Commentary
David Cramer, President and CEO, noted sequential improvements in contract rate, occupancy, and rent roll-down spread, yet acknowledged continued challenges in self-storage demand. He attributed weak performance to low home sales and supply pressures, particularly in Sunbelt markets. Cramer expressed optimism about the benefits of internalizing the PRO structure and enhanced marketing and revenue strategies.

Guidance
Due to ongoing market headwinds, National Storage has revised its full-year guidance. While specific numerical ranges were not provided, the company expects continued pressure from low demand, elevated concession use, and supply constraints. Cramer emphasized a focus on portfolio reshaping, efficiency improvements, and cost control as the company navigates the challenging environment.

Additional News
In its recent earnings report, National Storage announced asset dispositions outpacing acquisitions, with agreements to sell ten properties for approximately $66.5 million. These strategic exits reflect a shift toward portfolio pruning and deleveraging, with near-term proceeds intended for debt reduction. The company also completed the internalization of its property management platform in July 2024, a key initiative aimed at reducing G&A expenses and improving operational efficiency. Additionally, National Storage maintained its quarterly dividend at $0.57 per share, consistent with previous levels. These actions underscore the company’s focus on liquidity, cost control, and long-term operational improvement amid a difficult market environment.