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Self-Storage REITs Release Financial Results for Third-Quarter 2023

November 8, 2023

6 Min Read
Self-Storage REITs Release Financial Results for Third-Quarter 2023

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 Sept. 30. In general, the companies indicated gains in net operating income (NOI), with some declines in funds from operations (FFO) and occupancy.

“Despite the current headwinds in self-storage demand, our team did a good job navigating and responding to this dynamic environment,” said David Cramer, president and CEO of NSAT. “As a result of these efforts, we’ve maintained our guidance ranges for full-year 2023.”

Christopher P. Marr, president and CEO of CubeSmart, expressed similar sentiments. “Our third-quarter performance reflects the geographic and demographic quality of our portfolio. Our urban markets have outperformed, led by New York City, as demand and pricing are more stable and less impacted by the single-family home sales market,” he said. “As post-pandemic demand trends normalize and macroeconomic conditions remain volatile, our seasoned management team is maintaining our focus on maximizing revenues, controlling our costs and providing outstanding customer service.”


CubeSmart reported FFO per share of $0.68 for the third quarter of 2023, up from $0.66 last year. Same-store NOI at its 592 facilities grew 2% year over year. The company attributed this to a 2.3% increase in revenue and a 3% increase in operating expenses.

Same-store physical occupancy was 91.4% as of Sept. 30, down from 93.1% in 2022. The company’s total-owned portfolio, representing 611 facilities and 44.1 million square feet of rentable space, had a physical occupancy of 90.7%.

CubeSmart didn’t acquire any self-storage properties during the quarter; however, it’s under contract to purchase a New Jersey property for $22 million. It also has three joint-venture projects under construction in New Jersey and New York to which it’s expected to contribute $75.2 million.

On July 25, the company declared a dividend of $0.49 per common share, which was equal to the previous quarter. The dividend was paid on Oct. 16 to common shareholders of record on Oct. 2.

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 and NOI at Extra Space increased 1.9% and .7%, respectively in Q3, compared to the same period in 2022. Core FFO, excluding adjustments for non-cash interest, was $2.02 per diluted share, an 8.6% decrease. Same-store occupancy was 94.1% as of June 30 compared to 95.1% a year prior.

On July 20, the company completed its merger with fellow REIT Life Storage Inc. Under the terms of the agreement, Life Storage shareholders received 0.895 of an Extra Space share for each Life Storage share, representing a total estimated consideration of $11.6 billion. The transaction added about 1,200 facilities and more than 88 million square feet to the Extra Space portfolio.

During the quarter, Extra Space acquired three operating self-storage facilities for approximately $18.5 million. It also purchased three properties in conjunction with joint-venture partners to which it contributed $10 million.

The company paid a dividend of $1.01 per share on July 19 to stockholders of record on July 13 in conjunction with the Life Storage merger. It also paid a regular, quarterly dividend of $0.61 per common share, which was down from $1.62 the previous quarter. It was paid on Sept. 29 to common shareholders of record on Sept. 15.

Headquartered in Salt Lake City, Extra Space owns or operates more than 3,651 self-storage facilities nationwide under the Extra Space and Life Storage brand names. The company’s properties comprise approximately 2.5 million units and 279 million square feet of rentable space.

National Storage Affiliates Trust (NSAT)

Core FFO per share at NSAT was $0.67 during the third quarter, a 6.9% year-over-year decrease. Net income was $43.1 million, a 7.2% increase compared to the same period in 2022.

NSAT reported diluted earnings per share of $0.26, up from $0.21 a year ago. Same-store NOI fell .1%, driven primarily by a 1.1% increase in same-store revenue and partially offset by a 4.2% increase in same-store operating expenses.

As of June 30, same-store occupancy was 88.5%, a decrease of 360 basis points from the year prior. Average annualized rental revenue per occupied square foot for its 834 same-store facilities was $15.51 compared to $14.77 in 2022.

During the quarter, NSAT acquired two self-storage properties for $30.1 million. The additions comprise 144,200 rentable square feet in about 1,100 units.

On Aug. 17, the company declared a quarterly dividend of $0.56 per common share, which was equal to the previous quarter. It was paid on Sept. 29 to holders of record on Sept. 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 1,119 storage facilities in 42 states and Puerto Rico. Its portfolio comprises approximately 73 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 2.5%, or $21.1 million, over the same quarter in 2022, primarily due to higher realized annual rent per available square foot and partially offset by a decline in occupancy. Operations costs for same-store facilities went up 2.8%, or $5.5 million, compared to the previous year. This was mainly attributed to increases in marketing expenses and property taxes.

FFO was $4.58 per diluted common share compared to $4.66 for the same period of 2022, marking a 1.7% decrease. NOI increased $39 million, which was driven by a $15.7 million increase in same-store facilities and a $23.3 million increase from other non-stabilized stores.

During the quarter, Public Storage closed its $2.2 billion acquisition of Simply Self Storage. The deal included 127 owned properties comprising 9.4 million rentable square feet. It also opened three newly constructed facilities and completed 500,000 square feet in expansion projects for $88.2 million.

Based in Glendale, California, Public Storage has interests in 3,028 self-storage facilities in 40 states, with approximately 217 million net rentable square feet. It holds a 35% interest in Shurgard Self Storage Ltd., which has 275 facilities in seven European countries, with approximately 1.4 million net rentable square feet.

CubeSmart, CubeSmart Reports Third Quarter 2023 Results
Extra Space, Extra Space Storage Inc. Reports 2023 Third Quarter Results
National Storage Affiliates Trust, National Storage Affiliates Trust Reports Third Quarter 2023 Results
Public Storage, Public Storage Reports Results for the Three and Nine Months Ended September 30, 2023

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