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

May 4, 2023

7 Min Read
Self-Storage REITs Release Financial Results for First-Quarter 2023

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

“The Life Storage team continues to fire on all cylinders, with this quarter marking the 10th straight quarter in which we achieved double-digit adjusted FFO growth,” said Joe Saffire, CEO of Life Storage. “I couldn’t be prouder of what the team has accomplished.”

David Cramer, president and CEO of National Storage Affiliates Trust, expressed similar sentiments. “We began the year with a solid quarter of operating results. We continue to moderate from the record-setting levels of 2022,” he said. “The slowing economy and a muted housing market will continue to apply pressure to demand levels. Our teams did a good job navigating the changing economic environment and remain focused on executing strategies to capture new customers as we progress through the spring leasing season. Operating trends over the next couple of months will be key to performance for the full year.”


CubeSmart reported FFO per share of $0.65 for the first quarter of 2023, up from $0.58 last year. Same-store NOI at its 593 facilities grew 9.1% year over year. The company attributed this to a 6.9% increase in revenue and a 1% increase in operating expenses.

Same-store physical occupancy was 91.9% as of March 31, down from 93.4% 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 90.9% at the end of the quarter.

CubeSmart didn’t acquire any self-storage properties during the quarter; however, it had two joint-venture projects under construction in New Jersey and New York to which it’s expected to contribute $57.3 million.

On Feb. 22, the company declared a dividend of $0.49 per common share, which was equal to the previous quarter. The dividend was paid on April 17 to common shareholders of record on April 3.

CubeSmart owns or manages 1,287 self-storage facilities across the United States. Its operating portfolio comprises 89.2 million square feet.

Extra Space Storage Inc.

Same-store revenue and NOI at Extra Space increased 7.4% and 8.7%, respectively, compared to the same period in 2022. Core FFO, excluding adjustments for non-cash interest, was $2.02 per diluted share, a .5% increase over the previous year. Same-store occupancy was 93.5% as of March 31 compared to 94.3% a year prior.

During the quarter, the company acquired one self-storage facility at Certificate of Occupancy for $13.1 million. It also purchased five properties in conjunction with joint-venture partners for $101.2 million, to which it contributed $20.2 million.

On April 3, Extra Space and Life Storage announced a merger agreement through which Extra Space will acquire Life Storage in an all-stock transaction worth about $12.7 billion. Under the terms of the agreement, Life Storage shareholders will receive 0.8950 of an Extra Space share for each Life Storage share, representing a total consideration of about $145.82 per share based on the closing stock price on March 31. The transaction is expected to close during the second half of the year.

Extra Space paid a quarterly dividend of $1.62 per common share, which was up from $1.50 the previous quarter. It was paid on March 31 to common shareholders of record on March 15.

Headquartered in Salt Lake City, Extra Space owns or operates 2,388 self-storage properties in 41 states and Washington, D.C. The company’s properties comprise approximately 1.7 million units and 180 million square feet of rentable space.

Life Storage Inc.

Same-store NOI at Life Storage increased 12.8% compared to 2022, while adjusted FFO was $1.63, compared to $1.44 a year ago. Net income attributable to common shareholders for the first quarter was $81.6 million, or $0.96 per fully diluted share. For the same period in 2022, those numbers were $73.6 million and $0.88, respectively.

Same-store revenue for the company’s 664 wholly owned, stabilized facilities increased 10.5% year over year, impacted by a 13.6% bump in rental rates. Overall occupancy as of March 31 was 89.5%, down from 92.9% a year ago, with self-storage units renting for an average of $19.22 per square foot.

During the quarter, Life Storage acquired one self-storage facility in New Jersey with a joint-venture partner for $22.4 million, to which it contributed $4.1 million.

The REIT approved a quarterly dividend of $1.20 per share, which was equal to the previous quarter. It was paid on April 26 to shareholders of record on April 14.

Based in Buffalo, New York, Life Storage operates more than 1,200 self-storage facilities in 37 states and Washington, D.C. Its portfolio of owned and managed facilities comprises more than 89.8 million square feet.

National Storage Affiliates Trust (NSAT)

Core FFO per share at NSAT was $0.66 during the first quarter, a 2.9% year-over-year decrease. Net income was $40.4 million, a 9.8% decrease compared to the same period in 2022.

NSAT reported diluted earnings per share of $0.24, which was equal to a year ago. Same-store NOI was up 4.8%, driven primarily by an 5.7% increase in same-store revenue and partially offset by a 8.3% increase in same-store operating expenses.

As of March 31, same-store occupancy was 89.8%, a decrease of 380 basis points from the year prior. Average annualized rental revenue per occupied square foot for its 834 same-store facilities was $15.13 during the quarter compared to $13.74 in 2022.

NSAT acquired 16 wholly owned self storage properties for approximately $160.5 million. Fifteen were acquired from affiliates of Personal Mini Storage, one of the REIT’s participating regional operators, for approximately $144.8 million.

On Feb. 22, the company declared a quarterly dividend of $0.55 per common share, which was equal to the previous quarter. It was paid on March 30 to holders of record on March 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 9.8%, or $75.5 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 5.6%, or $11 million, compared to the previous year. This was mainly attributed to increases in marketing and maintenance expenses, property taxes and other operational costs.

FFO was $3.94 per diluted common share compared to $3.83 for the same period of 2022, marking a 2.9% increase. NOI increased $92 million, which was driven by a $64.4 million increase in same-store facilities and a $27.6 million increase from other non-stabilized stores.

During the quarter, Public Storage acquired five self-storage facilities for $46.8 million. Comprising 300,000 rentable square feet, the properties are in Florida, Idaho, Kentucky, Michigan and Virginia. The company also opened three new locations and completed various expansion projects, adding 400,000 net rentable square feet to its portfolio for $65.3 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 June 29 to shareholders of record as of June 14.

Based in Glendale, California, Public Storage has interests in 2,877 self-storage facilities in 40 states, with approximately 205 million net rentable square feet. It holds a 35% interest in Shurgard Self Storage SA, which has 266 facilities in seven European countries, with approximately 15 million net rentable square feet.

CubeSmart, CubeSmart Reports First Quarter 2023 Results
Extra Space, Extra Space Storage Inc. Reports 2023 First Quarter Results
Life Storage, Life Storage Inc. Reports First Quarter 2023 Results
National Storage Affiliates Trust, National Storage Affiliates Trust Reports First Quarter 2023 Results
Public Storage, Public Storage Reports Results for the Three Months Ended March 31, 2023

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