National Storage Affiliates Trust (NSAT), a Maryland real estate investment trust (REIT) specializing in self-storage, has released its financial statement for the quarter that ended Sept. 30, 2016, showing gains in key areas including core funds from operations (FFO), net operating income (NOI) and occupancy.
"We are extremely pleased with NSA’s third-quarter results, as we continue to deliver exceptional quarterly year-over-year increases in same store NOI and core FFO per share,” said CEO Arlen Nordhagen.
The REIT reported core FFO per share of $0.29 during the third quarter, a 20.8 percent year-over-year increase. Its NOI was $35.6 million, a 50.4 percent gain compared to the $23.6 million it reported for the same period last year. Same-store NOI was $22.5 million, up 9.5 percent.
Same-store revenue was $33 million during the quarter, a 7.2 percent increase from a year ago, and driven by a gain of 120 basis points in average occupancy and a 6.1 percent bump in average annualized rental revenue per occupied square foot. Average occupancy was 91.4 percent as of Sept. 30, up from 90.2 percent last year.
The company acquired 34 self-storage properties during the quarter for $206 million. The facilities are in eight states and comprise about 2.3 million rentable square feet in more than 18,000 units. In addition, NSAT formed a joint venture with a state pension fund advised by Heitman Capital Management LLC near the quarter’s end to acquire the iStorage portfolio and its property-management platform for $630 million.
On Aug. 25, the company declared a quarterly dividend of $0.22 per common share, which was paid on Sept. 30 to holders of record on Sept. 15.
Headquartered in Greenwood, Colo., 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 throughout the United States. The company owns 344 storage facilities in 18 states. Its portfolio comprises approximately 20.5 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.