Actionable news
All posts from Actionable news
Actionable news in NSA: National Storage Affiliates Trust,

Nothing But High-Fives For National Storage Affiliates


The self-storage sector is highly fragmented with more than 50,000 self-storage properties with over 30,000 operators.

This new playa’ in self-storage is simply hitting all cylinders.

The benefits of NSA’s “partnership” model makes a lot of sense and I would like to become a partner (or a shareholder), and obviously not overpay.

Last week, I decided to take a deeper dive into the Self-Storage REIT sector by analyzing several earnings transcripts to gain more insight into the business and environment of the broader category.

As I explained, "the storage sector has been referred to as one of the top-performing sectors over the last few years," and as the chart below shows, it has indeed performed well. REIT stalwart Realty Income (NYSE: O) has performed better than most of the storage players, with the exception of EXR, which has seen phenomenal returns:

I concluded the research paper by suggesting that "NOI/FFO growth of the storage sector will continue to outpace that of many similarly sized REITs - consistently." I added that "the self-storage sector appears attractive at these levels after the pullback, and believe it makes sense to establish a position in the sector if an investor does not have one."

Over the years, we have covered most all of the Self-Storage REITs in detail. Click these REITs for our latest research on the following companies: Extra Space Storage (NYSE:EXR), CubeSmart (NYSE:CUBE), and Public Storage (NYSE:PSA).

We first started covering National Storage Affiliates (NYSE:NSA) in February 2016. Our initial article was published as part of our iREIT premium platform, and we concluded the report as follows:

While it is early in the game, the results so far are quite encouraging. NSA management has already demonstrated the ability to grow FFO per share. Meanwhile, with a market cap of just over $740 million, National Storage has the ability to move the growth needle through accretive acquisitions far more easily than its larger, more seasoned peers.

We have decided to include NSA in our Intelligent REIT Lab (Forbes Real Estate Investor), and in just a few weeks, we will unveil the iREIT dashboard that will provide iREIT premium members with real-time sector research on over 100 REITs.

NSA will be added to the coverage universe, and we will provide our initial recommendation at the conclusion of the article. As you can see below, we cover many real estate sectors and sub-sectors, and soon you will be able to access any REIT in our research lab by clicking one of these icons below.

A New Self-Storage REIT For Our Research Lab

A New Self-Storage REIT For Our Research Lab

National Storage Affiliates Trust is a self-managed REIT organized in the state of Maryland on May 16, 2013. The company elected to be taxed as a REIT commencing in the taxable year ended December 31, 2015.

NSA completed its initial public offering in the second quarter 2015, in which it sold 23,000,000 shares at a price of $13.00 per share resulting in net proceed of approximately $278.1 million, after deducting the underwriting discount and before additional expenses associated with the offering.

NSA's chairman and CEO, Arlen D. Nordhagen, co-founded SecurCare Self Storage, Inc. in 1988 to invest in and manage self-storage properties. While growing SecurCare to over 150 self-storage properties, he recognized a market opportunity for a differentiated public self-storage REIT that would leverage the benefits of national scale by integrating multiple experienced regional self-storage operators with local operational focus and expertise.

His vision became the foundation for NSA - aligning the interests of participating regional operators (or "PROs") with shareholders allowing the PROs to participate in the financial performance of the contributed portfolios.

A key component of this strategy is to capitalize on the local market expertise and knowledge of regional self-storage operators by maintaining the continuity of their roles as property managers.

The PRO structure creates financial incentives to accomplish these objectives: It requires PROs to exchange the self-storage properties they contribute to NSA for a combination of common equity interests ("OP units") and subordinated performance units ("subordinated performance units") in NSA's operating partnership or subsidiaries of the operating partnership that issue units intended to be economically equivalent to the OP units and subordinated performance units issued by NSA's operating partnership ("DownREIT partnerships").

OP units...