National Storage Affiliates Trust Reports First Quarter 2026 Results

National Storage Affiliates Trust (“NSA” or the “Company”) (NYSE: NSA) today reported the Company’s first quarter 2026 results.

First Quarter 2026 Highlights

• Reported net income of $27.7 million for the first quarter of 2026, an increase of 41.8% compared to the first quarter of 2025. Reported diluted earnings per share of $0.16 for the first quarter of 2026 compared to $0.10 for the first quarter of 2025.

• Reported core funds from operations (“Core FFO”) of $76.8 million, or $0.57 per share for the first quarter of 2026, an increase of 5.6% per share compared to the first quarter of 2025.

• Reported an increase in same store net operating income (“NOI”) of 2.0% for the first quarter of 2026 compared to the same period in 2025, driven by a 0.2% increase in same store total revenues and a 3.9% decrease in same store property operating expenses.

• Reported same store period-end occupancy of 84.5% as of March 31, 2026, an increase of 70 basis points compared to March 31, 2025.

• Acquired one wholly-owned self storage property for approximately $10.4 million during the first quarter of 2026.

• Completed the sale of three wholly-owned self storage properties to unaffiliated third parties for net proceeds of approximately $20.6 million.

• As previously announced, the Company has entered into a definitive merger agreement with Public Storage, under which the Company will be acquired in an all-stock transaction valued at an enterprise value of approximately $10.5 billion. The merger is expected to close in the third quarter of 2026, subject to the approval of the Company’s equity holders, and satisfaction of other customary closing conditions.

Highlights Subsequent to Quarter-End

• Completed the sale of three wholly-owned self storage properties to an unaffiliated third party for approximately $5.7 million, that were classified as held for sale as of March 31, 2026.

• As of April 30, 2026, same store period-end occupancy was 84.9%, an increase of 90 basis points compared to April 30, 2025.

Financial Results

($ in thousands, except per share and unit data)	Three Months Ended March 31,
	2026			2025			Change
Net income	$	27,681		$	19,519		41.8	%
Funds From Operations (“FFO”)(1)	$	65,999		$	70,978		(7.0	)%
Add acquisition costs		811			403		101.2	%
Add integration and executive severance costs(2)		—			2,042		—	%
Add merger related costs		9,981			—		—	%
Core FFO(1)	$	76,791		$	73,423		4.6	%
Earnings per share – basic and diluted	$	0.16		$	0.10		60.0	%
FFO per share and unit(1)	$	0.49		$	0.52		(5.8	)%
Core FFO per share and unit(1)	$	0.57		$	0.54		5.6	%

(1)		Non-GAAP financial measures, including FFO, Core FFO and NOI, are defined in the Glossary in the supplemental financial information and, where appropriate, reconciliations of these measures and other non-GAAP financial measures to their most directly comparable GAAP measures are included in the Schedules to this press release and in the supplemental financial information.
(2)		Integration costs relate to expenses incurred as a part of the internalization of the PRO structure.

Net income increased $8.2 million for the first quarter of 2026 as compared to the same period in 2025. This increase was primarily due to an increase in earnings from our unconsolidated real estate ventures, a decrease in property operating expenses and a decrease in depreciation expense.

The decrease in FFO per share and unit for the first quarter of 2026 was primarily driven by merger related costs of $10.0 million. The increase in Core FFO per share and unit for the first quarter of 2026 was primarily driven by an increase in same store NOI and a decrease in interest expense.

Same Store Operating Results (735 Stores)

($ in thousands, except per square foot data)	Three Months Ended March 31,
	2026				2025				Change
Total revenues	$	164,221			$	163,852			0.2	%
Property operating expenses		48,396				50,343			(3.9	)%
Net Operating Income (NOI)	$	115,825			$	113,509			2.0	%
NOI Margin		70.5	%			69.3	%		1.2	%
Average Occupancy		84.2	%			84.1	%		0.1	%
Average Annualized Rental Revenue Per Occupied Square Foot	$	15.88			$	15.78			0.6	%

Year-over-year same store total revenue increased 0.2% for the first quarter of 2026 as compared to the same period in 2025. The increase for the first quarter was driven by a 10 basis point increase in average occupancy and a 0.6% increase in average annualized rental revenue per occupied square foot. Markets which generated above portfolio average same store total revenue growth include: Portland, San Juan, PR and Colorado Springs. Markets which generated below portfolio average same store total revenue growth include: Riverside-San Bernardino, Atlanta and Phoenix.

Year-over-year same store property operating expenses decreased 3.9% for the first quarter of 2026 as compared to the same period in 2025. The decrease for the first quarter of 2026 was primarily driven by decreases in personnel, utilities and repairs and maintenance costs.

Investment and Disposition Activity

During the first quarter, NSA invested $10.4 million in the acquisition of one wholly-owned self storage property, consisting of approximately 47,000 rentable square feet configured in approximately 500 storage units.

During the first quarter, NSA completed the sale of three wholly-owned self storage properties, consisting of approximately 199,000 rentable square feet configured in approximately 1,500 storage units for approximately $20.6 million.

Balance Sheet

As of March 31, 2026, NSA has approximately $530.6 million of available capacity on its $950.0 million revolving line of credit.

Common Share Dividends

On February 12, 2026, NSA’s Board of Trustees declared a quarterly cash dividend of $0.57 per common share. The first quarter 2026 dividend was paid on March 31, 2026 to shareholders of record as of March 13, 2026.

2026 Guidance

In light of the Company’s proposed merger with Public Storage announced on March 16, 2026, the Company will no longer provide guidance nor is it affirming past guidance.

Supplemental Financial Information

The full text of this earnings release and supplemental financial information, including certain financial information referenced in this release, are available on NSA’s website at www.nsastorage.com and as exhibit 99.1 to the Company’s Form 8-K furnished to the SEC on May 5, 2026.

Non-GAAP Financial Measures & Glossary

This press release contains certain non-GAAP financial measures. These non-GAAP measures are presented because NSA’s management believes these measures help investors understand NSA’s business, performance and ability to earn and distribute cash to its shareholders by providing perspectives not immediately apparent from net income (loss). These measures are also frequently used by securities analysts, investors and other interested parties. The presentations of FFO, Core FFO and NOI in this press release are not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. In addition, NSA’s method of calculating these measures may be different from methods used by other companies, and, accordingly, may not be comparable to similar measures as calculated by other companies that do not use the same methodology as NSA. These measures, and other words and phrases used herein, are defined in the Glossary in the supplemental financial information and, where appropriate, reconciliations of these measures and other non-GAAP financial measures to their most directly comparable GAAP measures are included in the Schedules to this press release and in the supplemental financial information.

About National Storage Affiliates Trust

National Storage Affiliates Trust is a real estate investment trust headquartered in Greenwood Village, Colorado, focused on the ownership, operation and acquisition of self storage properties predominantly located within the top 100 metropolitan statistical areas throughout the United States. As of March 31, 2026, the Company held ownership interests in and operated 1,061 self storage properties, located in 37 states and Puerto Rico with approximately 69.3 million rentable square feet, excluding three properties classified as held for sale, that were sold to a third party in April 2026. NSA is one of the largest owners and operators of self storage properties among public and private companies in the United States. For more information, please visit the Company’s website at www.nsastorage.com. NSA is included in the MSCI US REIT Index (RMS/RMZ), the Russell 1000 Index of Companies and the S&P MidCap 400 Index.

NOTE REGARDING FORWARD LOOKING STATEMENTS

Certain statements contained in this press release constitute forward-looking statements as such term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and such statements are intended to be covered by the safe harbor provided by the same. Forward-looking statements are subject to substantial risks and uncertainties, many of which are difficult to predict and are generally beyond the Company’s control. These forward-looking statements include information about possible or assumed future results of the Company’s business, financial condition, liquidity, results of operations, plans and objectives. Changes in any circumstances may cause the Company’s actual results to differ significantly from those expressed in any forward-looking statement. When used in this release, the words “believe,” “expect,” “anticipate,” “estimate,” “plan,” “continue,” “intend,” “should,” “may” or similar expressions are intended to identify forward-looking statements. Statements regarding the following subjects, among others, may be forward-looking: market trends in the Company’s industry, interest rates, inflation, the debt and lending markets or the general economy; the Company’s business and investment strategy; the risks associated with our ability to consummate the mergers with Public Storage and the timing and closing of the mergers including, among other things, the ability of the Company to obtain equity holder approval required to consummate the mergers, the satisfaction or waiver of other conditions to closing in the Merger Agreement, unanticipated difficulties or expenditures relating to the mergers, potential difficulties in employee retention as a result of the mergers, the occurrence of any event, change or other circumstances that could give rise to the termination of the mergers and the outcome of legal proceedings that may be instituted related to the mergers; the acquisition and disposition of properties, including those under contract and the Company’s ability to execute on its acquisition pipeline; and the Company’s guidance estimates for the year ending December 31, 2026. For a further list and description of such risks and uncertainties, see the Company’s most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed with the Securities and Exchange Commission, and the other documents filed by the Company with the Securities and Exchange Commission. The forward-looking statements, and other risks, uncertainties and factors are based on the Company’s beliefs, assumptions and expectations of its future performance, taking into account all information currently available to the Company. Forward-looking statements are not predictions of future events. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

National Storage Affiliates Trust Consolidated Statements of Operations (in thousands, except per share amounts) (unaudited)
	Three Months Ended March 31,
	2026				2025
REVENUE
Rental revenue	$	168,214			$	169,475
Other property-related revenue		5,586				6,744
Management fees and other revenue		11,601				12,135
Total revenue		185,401				188,354
OPERATING EXPENSES
Property operating expenses		52,034				55,104
General and administrative expenses		13,231				13,145
Depreciation and amortization		46,140				48,116
Other		3,098				4,476
Total operating expenses		114,503				120,841
OTHER (EXPENSE) INCOME
Interest expense		(39,257	)			(40,475	)
Equity in earnings (losses) of unconsolidated real estate ventures		1,155				(5,739	)
Acquisition and integration costs		(811	)			(2,445	)
Merger related costs		(9,981	)			—
Non-operating (expense) income		(302	)			360
Gain on sale of self storage properties		6,458				1,425
Other expense, net		(42,738	)			(46,874	)
Income before income taxes		28,160				20,639
Income tax expense		(479	)			(1,120	)
Net income		27,681				19,519
Net income attributable to noncontrolling interests		(9,901	)			(6,525	)
Net income attributable to National Storage Affiliates Trust		17,780				12,994
Distributions to preferred shareholders		(5,153	)			(5,114	)
Net income attributable to common shareholders	$	12,627			$	7,880
Earnings per share – basic and diluted	$	0.16			$	0.10
Weighted average shares outstanding – basic and diluted		77,093				76,372

National Storage Affiliates Trust Consolidated Balance Sheets (dollars in thousands, except per share amounts) (unaudited)
	March 31,				December 31,
	2026				2025
ASSETS
Real estate
Self storage properties	$	5,832,905			$	5,814,854
Less accumulated depreciation		(1,256,764	)			(1,213,537	)
Self storage properties, net		4,576,141				4,601,317
Cash and cash equivalents		27,648				23,328
Restricted cash		721				310
Debt issuance costs, net		2,161				2,890
Investment in unconsolidated real estate ventures		227,267				231,779
Other assets, net		178,470				185,403
Assets held for sale, net		1,086				14,519
Operating lease right-of-use assets		20,264				20,569
Total assets	$	5,033,758			$	5,080,115
LIABILITIES AND EQUITY
Liabilities
Debt financing	$	3,416,836			$	3,405,102
Accounts payable and accrued liabilities		97,724				94,627
Interest rate swap liabilities		1,134				4,052
Operating lease liabilities		22,320				22,620
Deferred revenue		20,655				19,931
Total liabilities		3,558,669				3,546,332
Equity
Preferred shares of beneficial interest, par value $0.01 per share. 50,000,000 authorized, 14,801,345 and 14,704,845 issued (in series) and outstanding at March 31, 2026 and December 31, 2025, respectively, at liquidation preference		343,542				341,130
Common shares of beneficial interest, par value $0.01 per share. 250,000,000 shares authorized, 77,137,402 and 77,089,734 shares issued and outstanding at March 31, 2026 and December 31, 2025, respectively		771				771
Additional paid-in capital		1,245,845				1,251,961
Distributions in excess of earnings		(683,581	)			(652,240	)
Accumulated other comprehensive income		6,184				4,416
Total shareholders’ equity		912,761				946,038
Noncontrolling interests		562,328				587,745
Total equity		1,475,089				1,533,783
Total liabilities and equity	$	5,033,758			$	5,080,115

Reconciliation of Net Income to FFO and Core FFO
(in thousands, except per share and unit amounts) (unaudited)
	Three Months Ended March 31,
	2026				2025
Net income	$	27,681			$	19,519
Add (subtract):
Real estate depreciation and amortization		45,707				47,661
Equity in (earnings) losses of unconsolidated real estate ventures		(1,155	)			5,739
Company’s share of FFO in unconsolidated real estate ventures		5,792				5,052
Gain on sale of self storage properties		(6,458	)			(1,425	)
Distributions to preferred shareholders and unitholders		(5,568	)			(5,568	)
FFO attributable to common shareholders, OP unitholders, and LTIP unitholders		65,999				70,978
Add (subtract):
Acquisition costs		811				403
Integration costs(1)		—				2,042
Merger related costs		9,981				—
Core FFO attributable to common shareholders, OP unitholders, and LTIP unitholders	$	76,791			$	73,423
Weighted average shares and units outstanding – FFO and Core FFO:(2)
Weighted average shares outstanding – basic		77,093				76,372
Weighted average restricted common shares outstanding		26				21
Weighted average OP units outstanding		51,162				52,147
Weighted average DownREIT OP unit equivalents outstanding		5,769				5,769
Weighted average LTIP units outstanding		979				925
Total weighted average shares and units outstanding – FFO and Core FFO		135,029				135,234
FFO per share and unit	$	0.49			$	0.52
Core FFO per share and unit	$	0.57			$	0.54

(1)		Integration costs relate to expenses incurred as a part of the internalization of the PRO structure.
(2)		NSA combines OP units and DownREIT OP units with common shares because, after the applicable lock-out periods, OP units in the Company’s operating partnership are redeemable for cash or, at NSA’s option, exchangeable for common shares on a one-for-one basis and DownREIT OP units are also redeemable for cash or, at NSA’s option, exchangeable for OP units in the Company’s operating partnership on a one-for-one basis, subject to certain adjustments in each case. LTIP units may also, under certain circumstances, be convertible into or exchangeable for common shares (or other units that are convertible into or exchangeable for common shares). See footnote 3 for additional discussion of LTIP units in the calculation of FFO and Core FFO per share and unit.

Reconciliation of Earnings Per Share – Diluted to FFO and Core FFO Per Share and Unit
(in thousands, except per share and unit amounts) (unaudited)
	Three Months Ended March 31,
	2026				2025
Earnings per share – diluted	$	0.16			$	0.10
Impact of the difference in weighted average number of shares(3)		(0.07	)			(0.04	)
Impact of GAAP accounting for noncontrolling interests, two-class method and treasury stock method(4)		0.07				0.04
Add real estate depreciation and amortization		0.34				0.35
Add equity in (earnings) losses of unconsolidated real estate ventures		(0.01	)			0.04
Add Company’s share of FFO in unconsolidated real estate ventures		0.05				0.04
Subtract gain on sale of self storage properties		(0.05	)			(0.01	)
FFO per share and unit		0.49				0.52
Add acquisition costs		0.01				—
Add integration costs		—				0.02
Add merger related costs		0.07				—
Core FFO per share and unit	$	0.57			$	0.54

(3)		Adjustment accounts for the difference between the weighted average number of shares used to calculate diluted earnings per share and the weighted average number of shares used to calculate FFO and Core FFO per share and unit. Diluted earnings per share is calculated using the two-class method for the company’s restricted common shares and the treasury stock method for certain unvested LTIP units, and assumes the conversion of vested LTIP units into OP units on a one-for-one basis. The computation of weighted average shares and units for FFO and Core FFO per share and unit includes all restricted common shares and LTIP units that participate in distributions.
(4)		Represents the effect of adjusting the numerator to consolidated net income prior to GAAP allocations for noncontrolling interests, after deducting preferred share and unit distributions, and before the application of the two-class method and treasury stock method, as described in footnote 3.

Net Operating Income
(dollars in thousands) (unaudited
	Three Months Ended March 31,
	2026				2025
Net income	$	27,681			$	19,519
(Subtract) add:
Management fees and other revenue		(11,601	)			(12,135	)
General and administrative expenses		13,231				13,145
Depreciation and amortization		46,140				48,116
Other		3,098				4,476
Interest expense		39,257				40,475
Equity in (earnings) losses of unconsolidated real estate ventures		(1,155	)			5,739
Acquisition and integration costs		811				2,445
Merger related costs		9,981				—
Non-operating expense (income)		302				(360	)
Gain on sale of self storage properties		(6,458	)			(1,425	)
Income tax expense		479				1,120
Net Operating Income	$	121,766			$	121,115

EBITDA and Adjusted EBITDA
(dollars in thousands) (unaudited)
	Three Months Ended March 31,
	2026				2025
Net income	$	27,681			$	19,519
Add:
Depreciation and amortization		46,140				48,116
Company’s share of unconsolidated real estate venture depreciation and amortization		4,903				5,411
Interest expense		39,257				40,475
Income tax expense		479				1,120
EBITDA		118,460				114,641
Add (subtract):
Acquisition costs		811				403
Effect of hypothetical liquidation at book value (HLBV) accounting for unconsolidated 2024 Joint Venture(1)		(266	)			5,381
Gain on sale of self storage properties		(6,458	)			(1,425	)
Integration costs, excluding equity-based compensation(2)		—				930
Merger related costs		9,981				—
Equity-based compensation expense(3)		2,420				3,079
Adjusted EBITDA	$	124,948			$	123,009

(1)		Reflects the non-cash impact of applying HLBV to the 2024 Joint Venture, which allocates GAAP income (loss) on a hypothetical liquidation of the underlying joint venture at book value as of the reporting date.
(2)		Integration costs relate to expenses incurred as a part of the internalization of the PRO structure.
(3)		Equity-based compensation expense is a non-cash item recorded within general and administrative expenses and acquisition and integration costs in our consolidated statements of operations. For the three months ended March 31, 2025, $1.1 million relates to the internalization of the PRO structure and is included in acquisition and integration costs.

 

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