The following is a summary of the National Storage Affiliates Trust (NSA) Q4 2023 Earnings Call Transcript:
Financial Performance:
NSA reported Q4 2023 core FFO per share of $0.68 and $2.69 for the full year, a decrease of approximately 4% year-over-year due to an increase in interest expense.
The company saw a decrease in street rates by approximately 10.5% in the fourth quarter, leading to revenue growth being flat.
Operating expenses increased by 4.8% for Q4 and 4.7% for the full year.
Occupancy ended the quarter at 86%, down 410 basis points year-over-year, representing a decline in occupancy.
NSA reported a leverage of 6.1 times net debt to EBITDA.
Business Progress:
NSA sold a portfolio of 71 properties and engaged in joint venture transactions creating capital for balance sheet initiatives and allowing for full repayment of loans and share buybacks.
The company hired Will Cowan as Chief Strategy Officer to lead their portfolio optimization plan.
NSA integrated Artificial Intelligence and Machine Learning into their revenue management models to improve customer rate decisions.
To improve occupancy rates during the early months of the spring leasing season, NSA is pursuing portfolio optimization and is planning more selective, smaller-scale adjustments.
The company established a $275 million share buyback program in December 2023 and has projected acquisition activity towards the latter half of 2024.
More details: National Storage Affiliates Trust IR
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