National Storage Affiliates Trust

What they do

NSA owns and operates self storage properties, generating revenue primarily from rental income paid by tenants under month-to-month leases. The company had previously operated through a structure of participating regional operators (the PRO structure), which it has been internalizing, and it also holds investments in unconsolidated real estate ventures. Its common shares and Series A and Series B cumulative redeemable preferred shares trade on the NYSE under NSA and NSA Pr A/Pr B.

Revenue drivers

• Same store self storage rentals — Core business is rental income from self storage units at stabilized properties. Same store total revenues rose only 0.2% in Q1 2026, and same store NOI rose 2.0% on a 3.9% decrease in same store property operating expenses.
• Wholly-owned property acquisitions and dispositions — NSA buys and sells self storage properties. In Q1 2026 it acquired one wholly-owned property for about $10.4 million and sold three wholly-owned properties for net proceeds of about $20.6 million.
• Unconsolidated real estate ventures — NSA holds interests in real estate ventures; earnings from these ventures increased in Q1 2026 and were cited as a primary reason net income rose year over year.

Recent performance

For Q1 2026 NSA reported net income of $27.7 million, up 41.8% from $19.5 million in Q1 2025, and diluted EPS of $0.16 versus $0.10. Core FFO was $76.8 million, or $0.57 per share, up 5.6% per share, while FFO fell 7.0% to $66.0 million due to $9.981 million of merger-related costs. Same store NOI rose 2.0% on a 0.2% revenue increase and a 3.9% expense decrease, and same store period-end occupancy was 84.5% at March 31, 2026, up 70 basis points. Annual revenue has declined from $858.1 million in 2023 to $752.9 million in 2025, with net income falling from $156.7 million to $73.8 million over the same period.

Strategy

The overriding stated priority is completing the merger with Public Storage, announced under a definitive merger agreement with an enterprise value of approximately $10.5 billion and expected to close in the third quarter of 2026 subject to equity holder approval and customary conditions. The company continues to internalize the PRO structure and to selectively acquire and dispose of self storage properties. It also cites technology and artificial intelligence initiatives and an integrated internet marketing strategy as operating priorities. Capital allocation has included ongoing distributions, with dividends per share rising to $2.28 in 2025 from $1.59 in 2021.

Risks

• Merger closing risk — The Public Storage merger, valued at about $10.5 billion enterprise value and expected to close in Q3 2026, requires equity holder approval and other conditions and may fail or be delayed.
• Revenue and earnings decline — Annual revenue fell from $858.1 million in 2023 to $752.9 million in 2025 and net income fell from $156.7 million to $73.8 million, while Q1 2026 same store revenue grew only 0.2%.
• Leverage and liquidity — As of March 31, 2026, total liabilities were $3.56 billion against total assets of $5.03 billion and only $27.6 million of cash and equivalents.
• Distribution coverage — Dividends per share rose to $2.28 in 2025 while diluted EPS was $0.69, and operating cash flow declined to $338.5 million in 2025 from $363.1 million in 2024.

Outlook

Management states that the merger with Public Storage is expected to close in the third quarter of 2026, subject to approval by the company's equity holders and satisfaction of other customary closing conditions. Same store period-end occupancy was 84.9% as of April 30, 2026, up 90 basis points versus April 30, 2025. The company has not provided a stand-alone long-term outlook beyond the pending merger and continued portfolio management.