National Storage Affiliates Trust Reports Second Quarter 2025 Results

National Storage Affiliates Trust ("NSA" or the "Company") (NYSE:NSA) today reported the Company's second quarter 2025 results.

Second Quarter 2025 Highlights

• Reported net income of $31.0 million for the second quarter of 2025, a decrease of 4.1% compared to the second quarter of 2024. Reported diluted earnings per share of $0.19 for the second quarter of 2025 compared to $0.16 for the second quarter of 2024.
• Reported core funds from operations ("Core FFO") of $74.4 million, or $0.55 per share for the second quarter of 2025, a decrease of 11.3% per share compared to the second quarter of 2024.
• Reported a decrease in same store net operating income ("NOI") of 6.1% for the second quarter of 2025 compared to the same period in 2024, driven by a 3.0% decrease in same store total revenues and a 4.6% increase in same store property operating expenses.
• Reported same store period-end occupancy of 85.0% as of June 30, 2025, a decrease of 220 basis points compared to June 30, 2024.
• Acquired one wholly-owned self storage property and one property that is considered an annex to an existing property for approximately $11.4 million and one of NSA's unconsolidated real estate ventures acquired one self storage property for approximately $18.0 million during the second quarter of 2025.
• Entered into an agreement to sell ten wholly-owned self storage properties for approximately $66.5 million. Eight of the properties were sold in June 2025, while the remaining two properties are classified as held for sale as of June 30, 2025 and were sold in July 2025.

Highlights Subsequent to Quarter-End

• On July 22, 2025, one of NSA's unconsolidated real estate ventures acquired one self storage property for approximately $21.8 million. The venture financed the acquisition with capital contributions from the venture members, of which the Company contributed approximately $5.4 million.

David Cramer, President and Chief Executive Officer, commented, "During the second quarter, we realized sequential improvement from the prior quarter in the level of contract rate, occupancy and our rent roll-down spread. However, these positives were outweighed by continued softness in storage demand primarily driven by low existing home sales and ongoing supply pressure, especially in our Sunbelt markets, which also impacted the pace of realizing the benefits from the internalization of our PRO structure. Further, the elevated use of concessions during the quarter that drove rental volume has a near-term negative impact on revenues. The combination of these factors weighed on same store NOI and Core FFO results for the quarter and was the primary driver of our revised guidance ranges."

Mr. Cramer further commented, "While macroeconomic conditions have fallen short of our expectations, we are seeing positive momentum from our enhanced marketing and revenue management strategies, and we still expect to realize the full benefits from the internalization of our PRO structure."

Financial Results

Net income decreased $1.3 million for the second quarter of 2025 and $76.9 million for the six months ended June 30, 2025 ("year-to-date") as compared to the same periods in 2024. The year-to-date decrease in net income was primarily due to larger gains on the sale of self storage properties recognized in the first quarter of 2024. Additionally, the decrease in net income for both the second quarter of 2025 and year-to-date were a result of lower NOI, driven by property dispositions and negative same store NOI growth. These impacts for the second quarter of 2025 and year-to-date were partially offset by an increase in management fees and other revenue of $2.7 million and $5.8 million, respectively, and a decrease in general and administrative expenses of $3.4 million and $5.9 million, respectively, compared to the same periods in 2024.

The decrease in FFO and Core FFO per share and unit for the second quarter of 2025 and year-to-date was primarily driven by a decrease in same store NOI and an increase in interest expense. These impacts were partially offset by decreased management fees paid to former PROs, reflected within general and administrative expenses, following the internalization of the PRO structure.

Same Store Operating Results (771 Stores)

Year-over-year same store total revenue decreased 3.0% for the second quarter of 2025 and 3.0% year-to-date as compared to the same periods in 2024. The decrease for the second quarter was driven primarily by a 240 basis point decrease in average occupancy and a 0.3% decrease in average annualized rental revenue per occupied square foot. The year-to-date same store total revenue decrease was driven primarily by a 210 basis point decrease in average occupancy and a 0.7% decrease in average annualized rental revenue per occupied square foot. Markets which generated above portfolio average same store total revenue growth include: Portland, Houston and San Juan, PR. Markets which generated below portfolio average same store total revenue growth include: Riverside-San Bernardino, Atlanta and Phoenix.

Year-over-year same store property operating expenses increased 4.6% for the second quarter of 2025 and 4.1% year-to-date as compared to the same periods in 2024. The increase was primarily driven by increases in marketing, repairs and maintenance, and property tax expense, partially offset by decreases in personnel and insurance costs.

Investment and Disposition Activity

During the second quarter, a joint venture between a subsidiary of NSA and a state pension fund advised by Heitman Capital Management, LLC (the "2023 Joint Venture") acquired one self storage property for approximately $18.0 million. The 2023 Joint Venture financed the acquisition with capital contributions from the venture members, of which NSA contributed approximately $4.5 million.

During the second quarter, NSA invested $11.4 million in the acquisition of one wholly-owned self storage property and one annex to an existing property, consisting of approximately 87,000 rentable square feet configured in approximately 700 storage units.

During the second quarter, NSA entered into an agreement to sell ten wholly-owned self storage properties consisting of approximately 663,000 rentable square feet configured in approximately 4,400 storage units for approximately $66.5 million, before disposition costs and credits. The agreement provides for separate disposition dates with eight self storage properties, consisting of approximately 580,000 rentable square feet configured in approximately 3,800 storage units for approximately $60.0 million, sold in June 2025, and two self storage properties, consisting of approximately 83,000 rentable square feet configured in approximately 600 storage units for approximately $6.5 million, sold in July 2025. NSA used the proceeds to pay down its revolving line of credit and for general corporate purposes.

Balance Sheet

As of June 30, 2025, NSA has approximately $544.1 million of available capacity on its $950.0 million revolving line of credit.

Common Share Dividends

On May 15, 2025, NSA's Board of Trustees declared a quarterly cash dividend of $0.57 per common share. The second quarter 2025 dividend was paid on June 30, 2025 to shareholders of record as of June 13, 2025.

2025 Guidance

The following table outlines NSA's updated and prior Core FFO guidance estimates and related assumptions for the year ended December 31, 2025. The Company's revisions to Core FFO per share estimates are primarily driven by lower same store growth assumptions.

Supplemental Financial Information

The full text of this earnings release and supplemental financial information, including certain financial information referenced in this release, are available on NSA's website at www.nsastorage.com and as exhibit 99.1 to the Company's Form 8-K furnished to the SEC on August 4, 2025.

Non-GAAP Financial Measures & Glossary

This press release contains certain non-GAAP financial measures. These non-GAAP measures are presented because NSA's management believes these measures help investors understand NSA's business, performance and ability to earn and distribute cash to its shareholders by providing perspectives not immediately apparent from net income (loss). These measures are also frequently used by securities analysts, investors and other interested parties. The presentations of FFO, Core FFO and NOI in this press release are not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. In addition, NSA's method of calculating these measures may be different from methods used by other companies, and, accordingly, may not be comparable to similar measures as calculated by other companies that do not use the same methodology as NSA. These measures, and other words and phrases used herein, are defined in the Glossary in the supplemental financial information and, where appropriate, reconciliations of these measures and other non-GAAP financial measures to their most directly comparable GAAP measures are included in the Schedules to this press release and in the supplemental financial information.

Quarterly Teleconference and Webcast

The Company will host a conference call at 1:00 pm Eastern Time on Tuesday, August 5, 2025 to discuss its second quarter 2025 financial results. At the conclusion of the call, management will accept questions from certified financial analysts. All other participants are encouraged to listen to a webcast of the call by accessing the link found on the Company's website at www.nsastorage.com.

Conference Call and Webcast:

Date/Time: Tuesday, August 5, 2025, 1:00 pm ET

Webcast available at: www.nsastorage.com.

Domestic (Toll Free US & Canada): 877.407.9711

International: 412.902.1014

A replay of the webcast will be available for 30 days on NSA's website at www.nsastorage.com.

Upcoming Industry Conference

NSA management is scheduled to participate in the 2025 BofA Securities Global Real Estate Conference on September 9-11, 2025 in New York City, New York.

About National Storage Affiliates Trust

National Storage Affiliates Trust is a real estate investment trust headquartered in Greenwood Village, Colorado, focused on the ownership, operation and acquisition of self storage properties predominantly located within the top 100 metropolitan statistical areas throughout the United States. As of June 30, 2025, the Company held ownership interests in and operated 1,067 self storage properties, located in 37 states and Puerto Rico with approximately 69.7 million rentable square feet, excluding two properties classified as held for sale, that were sold to a third party in July 2025. NSA is one of the largest owners and operators of self storage properties among public and private companies in the United States. For more information, please visit the Company's website at www.nsastorage.com. NSA is included in the MSCI US REIT Index (RMS/RMZ), the Russell 1000 Index of Companies and the S&P MidCap 400 Index.

NOTE REGARDING FORWARD LOOKING STATEMENTS

Certain statements contained in this press release constitute forward-looking statements as such term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and such statements are intended to be covered by the safe harbor provided by the same. Forward-looking statements are subject to substantial risks and uncertainties, many of which are difficult to predict and are generally beyond the Company's control. These forward-looking statements include information about possible or assumed future results of the Company's business, financial condition, liquidity, results of operations, plans and objectives. Changes in any circumstances may cause the Company's actual results to differ significantly from those expressed in any forward-looking statement. When used in this release, the words "believe," "expect," "anticipate," "estimate," "plan," "continue," "intend," "should," "may" or similar expressions are intended to identify forward-looking statements. Statements regarding the following subjects, among others, may be forward-looking: market trends in the Company's industry, interest rates, inflation, the debt and lending markets or the general economy; the Company's business and investment strategy; the acquisition and disposition of properties, including those under contract and the Company's ability to execute on its acquisition pipeline; the timing of acquisitions or dispositions under contract; the Company's ability to realize the benefits from the internalization of the PRO structure and portfolio optimization strategy; and the Company's guidance estimates for the year ending December 31, 2025. For a further list and description of such risks and uncertainties, see the Company's most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed with the Securities and Exchange Commission, and the other documents filed by the Company with the Securities and Exchange Commission. The forward-looking statements, and other risks, uncertainties and factors are based on the Company's beliefs, assumptions and expectations of its future performance, taking into account all information currently available to the Company. Forward-looking statements are not predictions of future events. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

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National Storage Affiliates Trust

Investor/Media Relations

George Hoglund, CFA

Vice President - Investor Relations

720.630.2160

[email protected]