August 7, 2023

6 Min Read
Self-Storage REITs Release Financial Results for Second-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 and Public Storage Inc.—have released financial statements for the quarter that ended June 30. In general, the companies indicated gains in net operating income (NOI), with some declines in funds from operations (FFO) and occupancy.

“Following two years of record sector performance, 2023 has been a year of inconsistent trends as operating fundamentals adjust to the evolving macro environment,” said Christopher P. Marr, president and CEO of CubeSmart.

David Cramer, president and CEO of National Storage Affiliates Trust, expressed similar sentiments. “As we work through the tough year-over-year comps, we remain bullish on the medium- and long-term outlook for both NSAT and the overall self-storage sector,” he said.


CubeSmart reported FFO per share of $0.66 for the second quarter of 2023, up from $0.62 last year. Same-store NOI at its 593 facilities grew 5% year over year. The company attributed this to a 4.6% increase in revenue and a 3.6% increase in operating expenses.

Same-store physical occupancy was 92.7% as of June 30, down from 94.4% 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 92%.

CubeSmart didn’t acquire any self-storage properties during the quarter; however, it had three joint-venture projects under construction in New Jersey and New York to which it’s expected to contribute $75.2 million.

On May 16, the company declared a dividend of $0.49 per common share, which was equal to the previous quarter. The dividend was paid on July 17 to common shareholders of record on July 3.

CubeSmart owns or manages 1,338 self-storage facilities across the United States. Its operating portfolio comprises 92.1 million square feet.

Extra Space Storage Inc.

Same-store revenue and NOI at Extra Space increased 2.7% and 2.6%, respectively, compared to the same period in 2022. Core FFO, excluding adjustments for non-cash interest, was $2.06 per diluted share, a 3.3% decrease. Same-store occupancy was 94.5% as of June 30 compared to 95.8% a year prior.

During the quarter, Extra Space acquired one operating self-storage facility and three others at Certificate of Occupancy for $45.9 million. It also purchased five properties in conjunction with joint-venture partners to which it contributed $20.2 million.

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.

The company also released unaudited, second-quarter financial results for Life Storage in a supplemental report, documented below.

Extra Space paid a quarterly dividend of $1.62 per common share, which was equal to the previous quarter. It was paid on June 30 to common shareholders of record on June 15. The company also 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. An additional, related dividend is anticipated for the third quarter, according to the release.

Headquartered in Salt Lake City, Extra Space owned or operated 2,438 self-storage properties in 41 states and Washington, D.C., as of June 30. The company’s properties comprised approximately 1.7 million units and 184 million square feet of rentable space. With the Life Storage merger, Extra Space now has more than 3,500 locations.

Life Storage Inc.

Same-store NOI at Life Storage increased 3% compared to 2022. The company reported same-store revenue of $215.5 million, a 3.1% bump, which was partially offset by a 3.2% increase in operating expenses from the previous year.

Overall occupancy as of June 30 was 90.3%, down from 94% a year ago, with self-storage units renting for an average of $19.54 per square foot.

Based in Buffalo, New York, Life Storage operated more than 1,200 self-storage facilities in 37 states and Washington, D.C.

National Storage Affiliates Trust (NSAT)

Core FFO per share at NSAT was $0.68 during the second quarter, a 4.2% year-over-year decrease. Net income was $45.5 million, a 6.1% decrease compared to the same period in 2022.

NSAT reported diluted earnings per share of $0.28, up from $0.24 a year ago. Same-store NOI grew 3.4%, driven primarily by an 2.8% increase in same-store revenue and partially offset by a 1.4% increase in same-store operating expenses.

As of June 30, same-store occupancy was 90%, a decrease of 450 basis points from the year prior. Average annualized rental revenue per occupied square foot for its 834 same-store facilities was $15.27 compared to $14.26 in 2022.

During the quarter, NSAT acquired two annexes to existing self-storage properties for $13.8 million. The additions comprise 81,600 rentable square feet in about 500 units.

On May 25, the company declared a quarterly dividend of $0.56 per common share, up from $0.55 the previous quarter. It was paid on June 30 to holders of record on June 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 1,117 storage facilities in 42 states and Puerto Rico. Its portfolio comprises approximately 72.8 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 6.3%, or $51.1 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 5.2%, or $9.7 million, compared to the previous year. This was mainly attributed to increases in marketing expenses and property taxes.

FFO was $4.29 per diluted common share compared to $4.58 for the same period of 2022, marking a 6.3% decrease. NOI increased $63.1 million, which was driven by a $41.4 million increase in same-store facilities and a $21.7 million increase from other non-stabilized stores.

During the quarter, Public Storage acquired 11 self-storage facilities for $144 million. Comprising 900,000 rentable square feet, the properties include seven in South Carolina and one each in Florida, Massachusetts, North Carolina and Virginia. The company also completed various expansion projects, adding 200,000 net rentable square feet to its portfolio for $19.1 million.

The company reported a regular common quarterly dividend of $3 per common share, which was equal to the previous quarter. It also declared dividends with respect to various series of preferred shares. All the dividends are payable on Sept. 28 to shareholders of record as of Sept. 13.

Based in Glendale, California, Public Storage has interests in 2,888 self-storage facilities in 40 states, with approximately 206 million net rentable square feet. It holds a 35% interest in Shurgard Self Storage Ltd., which has 266 facilities in seven European countries, with approximately 15 million net rentable square feet.

CubeSmart, CubeSmart Reports Second Quarter 2023 Results
Extra Space, Extra Space Storage Inc. Reports 2023 Second Quarter Results
Extra Space, Q2 2023 Supplemental Financial Information
National Storage Affiliates Trust, National Storage Affiliates Trust Reports Second Quarter 2023 Results
Public Storage, Public Storage Reports Results for the Three and Six Months Ended June 30, 2023

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