National Storage 2025 Q3 Earnings Revenue Misses, EPS Declines 5.6%

National Storage (NSA) reported fiscal 2025 Q3 earnings on Nov 5, 2025, with revenue declining 2.5% to $188.70 million and EPS falling to $0.17, below the prior year’s $0.18. The company reaffirmed its Core FFO guidance despite missing revenue estimates.

Revenue

National Storage’s total revenue for Q3 2025 fell to $188.70 million, a 2.5% decline from $193.62 million in Q3 2024. Rental revenue accounted for the largest share at $169.91 million, while other property-related revenue totaled $6.46 million. Management fees and other revenue contributed $12.34 million. The sequential performance showed mixed results, with rental revenue declining 2.6% year-over-year but management fees rising 5% compared to the same period in 2024.

Earnings/Net Income

Earnings per share (EPS) for Q3 2025 decreased 5.6% to $0.17, with net income at $29.02 million, down 2.5% from $29.77 million in the prior-year period. The decline in EPS reflects broader operational challenges, including occupancy pressures and cost inflation, which may concern investors seeking consistent profitability.

Post Earnings Price Action Review

The backtesting analysis of a strategy buying NSA on revenue beats revealed mixed historical performance. Between 2022 and 2025, six quarters showed revenue exceeding estimates, but the average 30-day return was -0.5%. While Q3 2022 delivered a +6.9% gain, Q1 2024 saw a -5.1% loss. Recent Q3 2025 results, though missing revenue estimates, saw FFO per share beat expectations. However, the stock underperformed the market (-3.6% vs. +2.4%), highlighting sector-specific headwinds. The strategy’s limited success underscores the need for management to stabilize occupancy and reduce costs to drive future gains.

CEO Commentary

John Doe, CEO of National Storage, emphasized progress in operational efficiency, including consolidated platforms and improved occupancy. Despite challenges like elevated discounts and rising interest costs, he expressed confidence in 2026 growth, citing reduced supply pressures and strategic capital recycling.

Guidance

NSA reaffirmed its Core FFO guidance of $2.17–$2.23 per share for FY 2025. Same-store revenue growth is projected to range between -3.0% and -2.0%, with property operating expenses expected to rise 3.25–4.25%.

Additional News

National Storage announced a joint venture with Investment Real Estate Management to acquire self-storage properties, providing $350 million in capital with NSA contributing 75% as preferred equity. The company also declared a $0.57 quarterly dividend, yielding 7.8% annually. Analysts have downgraded price targets, with Truist cutting its estimate from $37 to $32 due to near-term profitability concerns.