March 4, 2024

6 Min Read

The four largest publicly traded, U.S.-based self-storage real estate investment trusts (REITs)—CubeSmart, Extra Space Storage Inc., National Storage Affiliates Trust (NSAT) and Public Storage Inc.—have released financial statements for the quarter that ended Dec. 31. In general, the companies indicated gains in net operating income (NOI), with some declines in funds from operations (FFO) and occupancy.

The financial results include two large acquisitions including the merger between Extra Space Storage and Life Storage Inc. last summer. In addition, Public Storage purchased the Simply Self Storage portfolio in September.

“We had a solid quarter, focusing on optimizing the performance of the recently added Life Storage assets, while maximizing the performance of the legacy Extra Space Storage locations. We maintained healthy in-place rents and strong same-store occupancy in the quarter, averaging 93.4%, which drove positive same-store revenue growth,” said Extra Space CEO Joe Margolis.

“Public Storage achieved record revenue and net operating income, quickly acquired and integrated the 90,000-customer Simply Self Storage portfolio, and reached more than 3,000 owned properties during 2023. I want to thank the entire team for their focus and determination,” said Public Storage CEO and President Joe Russell.


CubeSmart reported FFO per share of $0.70 for Q4 2023, up from $0.58 the previous year. Same-store NOI at the company’s 592 facilities grew 1.2% year over year. The company attributed this to a 0.4% increase in revenue and a 1.8% increase in operating expenses.

Same-store physical occupancy was 90.8% as of Dec. 31, down from 93.3% in 2022. The company’s total-owned portfolio had a physical occupancy of 90.3%.

During the quarter, CubeSmart acquired one facility in New Jersy for $22 million. It also has one joint-venture development under construction in New Jersey and three in New York.

On Dec. 7, CubeSmart declared a dividend of $0.51 per common share, up from $0.49 the previous quarter. The dividend was paid on Jan. 16 to common shareholders of record on Jan. 2.

“We had a successful year in 2023 as we continued our disciplined approach to capital allocation, expanded our overall store count by 10% through additions to our third-party managed platform, and improved our already strong balance sheet position,” said chief financial officer Tim Martin. “Given the volatility in storage fundamentals coupled with the uncertain macroeconomic backdrop, our initial 2024 guidance contemplates a wide range of potential outcomes.”

Founded in 2004 and based in Malvern, Pennsylvania, CubeSmart owns or manages 1,374 self-storage facilities across the United States. Its operating portfolio comprises 94 million square feet.

Extra Space Storage Inc.

Same-store revenue for Extra Space increased 0.8% while same-store NOI decreased by 0.1% in Q4 2023 compared to the same period in 2022. Core FFO, excluding adjustments for non-cash interest, was $1.89 per diluted share, a 3.3% decrease over 2022. Same-store occupancy was 93% as of Dec. 31 compared to 94.2% a year prior.

During the quarter, the company acquired one facility in a joint venture for $25 million, in which the company invested $1 million. It also purchased three existing properties as well as four at Certificate of Occupancy for a total of $82.7 million.

Extra Space paid a quarterly dividend of $1.62 per common share. It was paid on Dec. 31 to common shareholders of record on Dec. 15.

Headquartered in Salt Lake City, Extra Space owns or operates 3,714 self-storage properties in 42 states and Washington, D.C. The company’s properties comprise approximately 2.6 million units and 283 million square feet of rentable space.

National Storage Affiliates Trust (NSAT)

Core FFO per share at NSAT was $0.68 during the fourth quarter, a 4.2% year-over-year decrease. Net income was $108.1 million, a 141.5% increase compared to the same period in 2022.

Diluted earnings per share were $0.72 compared to $0.31 a year ago. NSAT reported a same-store NOI decrease of 1.6% compared to the same period in 2022. This was driven by a negligible increase in same-store total revenue, which was offset by an increase of 4.8% in same-store property operating expenses. As of Dec. 31, same-store occupancy was 86%, a decrease of 410 basis points from the year prior. Same-store revenue remained consistent, with an increase of 2.4% compared to the same period in 2022.

NSAT acquired two wholly owned self-storage properties for $25 million in Q4, adding approximately 113,000 rentable square feet and 900 units to the company portfolio. It also entered into an agreement to sell 71 self-storage properties comprising 4.4 million rentable square feet for $540 million.

On Nov. 8, NSAT declared a quarterly dividend of $0.56 per common share, which was an 1.8% increase from the same period in 2022. It was paid on Dec. 29 to holders of record on Dec. 15.

Headquartered in Greenwood, Colorado, NSAT is a self-administered and -managed REIT focused on the acquisition, operation and ownership of self-storage properties within the top 100 U.S. Metropolitan Statistical Areas. The company operates 1,050 storage facilities in 42 states and Puerto Rico. Its portfolio comprises approximately 68.6 million net rentable square feet. It's owned by its affiliate operators, who are contributing their interests in their self-storage assets over the next few years as their current mortgage debt matures.

Public Storage Inc.

Revenue for same-store facilities at Public Storage increased 4.7%, or $154 million, vs. the same quarter in 2022, primarily due to higher realized annual rent per occupied square foot and partially offset by a decline in occupancy. Operation costs for same-store facilities went up 4.7%, or $35.9 million, compared to the previous year. This was mainly attributed to increases in marketing expenses, property taxes and other operational costs.

Public Storage FFO was $4.20 per diluted common share compared to $3.38, a 1% increase for the same period in 2022. NOI increased $113.6 million, which was driven by acquisitions from the previous two years as well as recently developed and expanded facilities. It achieved a 79.7% same-store NOI margin.

During the quarter, Public Storage opened five self-storage facilities and completed expansions at existing sites, adding 0.8 million square feet at a cost of $190.3 million. The company also acquired 11 facilities comprising 0.8 million net rentable square feet for $171.9 million.

Public Storage reported a regular common quarterly dividend of $2.21 per common share, compared to $3 for the same period in 2022. It also declared dividends with respect to various series of preferred shares.

“We are well positioned in 2024 with our operating model transformation enhancing the industry’s highest margins, our high growth non-same store pool comprising nearly 30% of the portfolio, and our balance sheet positioned to fund significant external growth,” Russel said. “Our ability to drive unmatched levels of performance and profitability uniquely positions us for growth and value creation into the future.”

Based in Glendale, California, Public Storage has interests in 3,044 self-storage facilities in 40 states, with approximately 218 million net rentable square feet. It holds a 35% interest in Shurgard Self Storage SA, which has 275 facilities in seven European countries, with approximately 15 million net rentable square feet.

CubeSmart, CubeSmart Reports Fourth Quarter and Annual 2023 Results
Extra Space Storage Inc., Extra Space Storage Inc. Reports 2023 Fourth Quarter and Year-End Results
National Storage Affiliates Trust, National Storage Affiliates Trust Reports Fourth Quarter and Full Year 2023 Results
Public Storage, Public Storage Reports Results for the Fourth Quarter and Year Ended December 31, 2023

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