- Core FFO Increased 14% to $0.24 per Share -
- Same Store NOI Increased 13.6% Year-Over-Year -
- Acquired 15 Self Storage Properties -
National Storage Affiliates Trust (“NSA” or the "Company") (NYSE: NSA),
today reported the Company’s third quarter 2015 results.
Third Quarter 2015 Highlights
-
Core funds from operations ("Core FFO") was $11.3 million, or $0.24
per share for the third quarter of 2015, an increase of 14% per share
compared to Core FFO of $3.2 million, or $0.21 per share, for the
third quarter of 2014.
-
Net operating income ("NOI") was $23.7 million for the third quarter
of 2015, an increase of 80.0% compared to NOI of $13.2 million for the
third quarter of 2014.
-
Same store NOI was $10.0 million for the third quarter of 2015, an
increase of 13.6% compared to same store NOI of $8.8 million for the
third quarter of 2014.
-
Same store revenue was $15.3 million for the third quarter of 2015, an
increase of 10.0% compared to same store revenue of $13.9 million for
the third quarter of 2014.
-
Acquired 15 self storage properties during the third quarter of 2015
for approximately $106 million.
Year-To-Date 2015 Highlights
-
Year-to-date 2015 Core FFO was $24.2 million, or $0.68 per share, an
increase of 31% per share compared to Core FFO of $6.2 million, or
$0.52 per share, for the nine months ended September 30, 2014.
-
Year-to-date 2015 NOI was $63.0 million, an increase of 99.3% compared
to year-to-date NOI of $31.6 million for the nine months ended
September 30, 2014.
-
Year-to-date 2015 same store NOI was $28.5 million, an increase of
11.7% compared to year-to-date same store NOI of $25.5 million for the
nine months ended September 30, 2014.
-
Since October 1, 2015, the Company has acquired 15 additional
properties valued at approximately $68 million.
Arlen Nordhagen, Chief Executive Officer, commented, “We are pleased to
report a solid quarter of results. The ongoing implementation of our
best practices programs by our Participating Regional Operators is
producing outcomes that continue to exceed our expectations - both in
same store results and in the pace of our acquisitions. Core FFO per
share and same store NOI increased over the second quarter as well as
year over year. On the investment front, our portfolio increased to 261
properties as of September 30, 2015, with the acquisition of 15
properties during the quarter with an estimated value of $106 million,
and subsequently increased to 276 properties following the acquisition
of an additional 15 properties during October with an estimated value of
$68 million. Our team continues to perform well in all areas of
operations."
Financial Results
($ in thousands, except per share and unit data)
|
|
|
Three Months Ended September 30,
|
|
|
Nine Months Ended September 30,
|
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
Net income (loss)
|
|
|
$
|
2,109
|
|
|
|
$
|
(5,025
|
)
|
|
|
$
|
(569
|
)
|
|
|
$
|
(13,986
|
)
|
Funds From Operations ("FFO")
|
|
|
8,459
|
|
|
|
(446
|
)
|
|
|
19,057
|
|
|
|
(4,351
|
)
|
Add back acquisition costs, organizational and offering
expenses, and loss on early extinguishment of debt
|
|
|
2,874
|
|
|
|
3,631
|
|
|
|
5,164
|
|
|
|
10,599
|
|
Core FFO
|
|
|
$
|
11,333
|
|
|
|
$
|
3,185
|
|
|
|
$
|
24,221
|
|
|
|
$
|
6,248
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FFO per share and unit
|
|
|
$
|
0.18
|
|
|
|
$
|
(0.03
|
)
|
|
|
$
|
0.53
|
|
|
|
$
|
(0.36
|
)
|
Core FFO per share and unit
|
|
|
$
|
0.24
|
|
|
|
$
|
0.21
|
|
|
|
$
|
0.68
|
|
|
|
$
|
0.52
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FFO was $8.5 million, or $0.18 per share, for the third quarter of 2015,
compared to a FFO net loss of $0.4 million, or $0.03 per share, for the
third quarter of 2014. Core FFO was $11.3 million, or $0.24 per share
for the third quarter of 2015, an increase of 14% per share compared to
Core FFO of $3.2 million, or $0.21 per share, for the third quarter of
2014. The increases in FFO and Core FFO were primarily the result of an
additional $5.6 million of NOI from the acquisition of 57 self storage
properties acquired between October 1, 2014 and September 30, 2015, and
reductions in interest expense and organizational and offering expenses,
partially offset by general and administrative expenses.
Net income attributable to the Company was $2.1 million for the third
quarter of 2015, compared to a net loss of $5.0 million for the third
quarter of 2014. The increase was primarily due to an increase in NOI
resulting from an additional 88 self storage properties acquired from
July 1, 2014 to September 30, 2015, and reductions in interest expense
and organizational and offering expenses, partially offset by increases
in depreciation and amortization and general and administrative expenses.
A reconciliation of net income (loss) to FFO, Core FFO and NOI may be
found in the supplemental financial information.
Total Portfolio Operating Results
($ in thousands, except per square foot data)
|
|
|
Three Months Ended September 30,
|
|
|
Nine Months Ended September 30,
|
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
Total revenue
|
|
|
$
|
35,678
|
|
|
|
$
|
20,863
|
|
|
|
$
|
95,619
|
|
|
|
$
|
50,239
|
Property operating expenses
|
|
|
12,000
|
|
|
|
7,710
|
|
|
|
32,668
|
|
|
|
18,665
|
Net Operating Income (NOI)
|
|
|
$
|
23,678
|
|
|
|
$
|
13,153
|
|
|
|
$
|
62,951
|
|
|
|
$
|
31,574
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average annualized rental revenue per occupied square
foot
|
|
|
$
|
10.75
|
|
|
|
$
|
9.74
|
|
|
|
$
|
10.60
|
|
|
|
$
|
9.63
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues were $35.7 million for the third quarter of 2015, an
increase of 71.0% compared to total revenues of $20.9 million for the
third quarter of 2014. Total revenue increases were driven by a 250
basis point increase in average occupancy for the third quarter of 2015
compared to the third quarter of 2014, combined with a 10.4% increase in
average annualized rental revenue per occupied square foot compared to
the third quarter of 2014 and continued, solid progress in acquisition
activity.
Total portfolio NOI was $23.7 million for the third quarter of 2015, an
increase of 80.0% compared to NOI of $13.2 million for the third quarter
of 2014.
Same Store Operating Results
($ in thousands, except per square foot data)
|
|
|
Three Months Ended September 30,
|
|
|
Nine Months Ended September 30,
|
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
Total revenue
|
|
|
$
|
15,278
|
|
|
|
$
|
13,886
|
|
|
|
$
|
43,787
|
|
|
|
$
|
40,428
|
|
Property operating expenses
|
|
|
5,273
|
|
|
|
5,078
|
|
|
|
15,330
|
|
|
|
14,961
|
|
Net Operating Income (NOI)
|
|
|
$
|
10,005
|
|
|
|
$
|
8,808
|
|
|
|
$
|
28,457
|
|
|
|
$
|
25,467
|
|
NOI Margin
|
|
|
65.5
|
%
|
|
|
63.4
|
%
|
|
|
65.0
|
%
|
|
|
63.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Occupancy
|
|
|
90.4
|
%
|
|
|
87.9
|
%
|
|
|
88.0
|
%
|
|
|
85.4
|
%
|
Average annualized rental revenue per occupied square
foot
|
|
|
$
|
10.11
|
|
|
|
$
|
9.42
|
|
|
|
$
|
9.91
|
|
|
|
$
|
9.42
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same store revenues were $15.3 million for the third quarter of 2015, an
increase of 10.0% compared to $13.9 million for the third quarter of
2014. Revenue increases were driven by a 250 basis point increase in
average occupancy for the third quarter of 2015 compared to the third
quarter of 2014, combined with a 7.3% increase in average annualized
rental revenue per occupied square foot compared to the prior year.
Same store NOI was $10.0 million for the third quarter of 2015, an
increase of 13.6% compared to same store NOI of $8.8 million for the
third quarter of 2014. The increase was driven by an average occupancy
gain of 250 basis points and an average annualized rental revenue per
occupied square foot increase of 7.3% for the third quarter of 2015
compared to the third quarter of 2014.
Investment Activity
NSA acquired 15 self storage properties in the third quarter of 2015 for
an investment of approximately $106 million, composed of approximately
1.1 million rentable square feet configured in approximately 8,200
storage units.
Since October 1, 2015, the Company acquired 15 properties valued at
approximately $68 million, composed of approximately 950,000 rentable
square feet configured in approximately 7,400 storage units.
Debt and Credit Facility Activity
On August 13, 2015, the Company entered into an amendment with its
lenders to expand the Company's unsecured credit facility to $550
million, comprised of a $350 million revolving line of credit and a $200
million term loan.
At September 30, 2015, NSA had $496 million of total debt outstanding
including approximately $312 million outstanding debt under its credit
facility.
Dividends
On September 2, 2015, NSA's Board of Trustees declared a quarterly
dividend of $0.19 per common share which was paid on October 15, 2015 to
holders of record at September 30, 2015.
2015 Guidance
|
|
|
|
|
Full Year 2015
|
Core FFO per share
|
|
|
|
|
$0.89 to $0.91
|
|
|
|
|
|
|
Subordinated Performance Unit Distributions ($ in millions)
|
|
|
|
|
$14.0 to $14.8
|
|
|
|
|
|
|
Same Store NOI Growth Compared to Prior Year
|
|
|
|
|
10% to 11%
|
|
|
|
|
|
|
G&A, including approximately $3.0 million of non-cash compensation
($ in millions)
|
|
|
|
|
$15.5 to $16.5
|
|
|
|
|
|
|
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 http://ir.nationalstorageaffiliates.com/quarterly-reporting
and as exhibit 99.1 to the Company's Form 8-K furnished to the SEC on
November 9, 2015.
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 presentation 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.
Quarterly Teleconference and Webcast
The Company will host a conference call at 1:00pm Eastern Time on
Tuesday, November 10, 2015 to discuss its financial results. At the
conclusion of the call, management will accept questions from certified
financial analysts. All other participants are encouraged to listen to a
webcast of the call by accessing the link found on the Company's website
at www.nationalstorageaffiliates.com.
Conference Call and Webcast:
Date/Time: Tuesday, November 10,
2015, 1:00pm ET
Webcast available at: www.nationalstorageaffiliates.com
Domestic
(Toll Free US & Canada): 877.407.9711
International:
412.902.1014
Replay:
Domestic (Toll Free US & Canada): 877.660.6853
International:
201.612.7415
Conference ID: 13613621
A replay of the call will be available for one week through Tuesday,
November 17, 2015. A replay of the webcast will be available for 30 days
on NSA's website at www.nationalstorageaffiliates.com.
Upcoming Industry Conference
NSA management is scheduled to attend NAREIT’s upcoming REITWorld 2015
Conference in Las Vegas, Nevada on November 17 - 19, 2015.
About National Storage Affiliates Trust
National Storage Affiliates Trust is a Maryland real estate investment
trust focused on the ownership, operation and acquisition of self
storage properties located within the top 100 metropolitan statistical
areas throughout the United States. The Company currently owns and
operates 276 self storage properties located in 16 states with
approximately 15.7 million rentable square feet. NSA is the sixth
largest owner and operator of self storage properties among public and
private companies in the U.S. For more information, please visit the
Company’s website at www.nationalstorageaffiliates.com.
NSA is included in the Russell 2000 Index of Companies.
NOTE REGARDING FORWARD LOOKING STATEMENTS
NSA makes forward-looking statements in this press release that are
subject to risks and uncertainties. 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. When NSA uses the words "believe,"
"expect," "anticipate," "estimate," "plan," "continue," "intend,"
"should," "may," or similar expressions, the Company intends to identify
forward-looking statements.
The forward-looking statements contained in this press release
reflect NSA's current views about future events and are subject to
numerous known and unknown risks, uncertainties, assumptions, and
changes in circumstances that may cause the Company's actual results to
differ significantly from those expressed in any forward-looking
statement.
Statements regarding the following subjects, among others, may be
forward-looking:
• market trends in the Company's industry, interest rates, the debt
and lending markets or the general economy;
• the Company's business and investment strategy;
• the acquisition of properties, including the timing of acquisitions;
• the Company's relationships with, and its ability to attract
additional, PROs;
• NSA's ability to effectively align the interests of its PROs with
the Company and its shareholders;
• the integration of the Company's PROs and their contributed
portfolios into the Company, including into its financial and
operational reporting infrastructure and internal control framework;
• NSA's operating performance and projected operating results,
including its ability to achieve market rents and occupancy levels,
reduce operating expenditures and increase the sale of ancillary
products and services;
• the Company's ability to access additional off-market acquisitions;
• actions and initiatives of the U.S. federal, state and local
government and changes to U.S. federal, state and local government
policies and the execution and impact of these actions, initiatives and
policies;
• the state of the U.S. economy generally or in specific geographic
regions, states or municipalities;
• economic trends and economic recoveries;
• NSA's ability to obtain and maintain financing arrangements on
favorable terms;
• general volatility of the securities markets in which we
participate;
• changes in the value of the Company's assets;
• projected capital expenditures;
• the impact of technology on NSA's products, operations, and
business;
• the implementation of the Company's technology and best practices
programs (including NSA's ability to effectively implement its
integrated Internet marketing strategy);
• changes in interest rates and the degree to which the Company's
hedging strategies may or may not protect NSA from interest rate
volatility;
• impact of and changes in governmental regulations, tax law and
rates, accounting guidance and similar matters;
• the Company's ability to qualify, and maintain its qualification,
as a REIT for U.S. federal income tax purposes;
• NSA's ability to successfully remediate the material weakness in
its internal control over financial reporting;
• availability of qualified personnel;
• the timing of conversions of subordinated performance units into OP
units and the conversion ratio in effect at such time;
• estimates relating to the Company's ability to make distributions
to its shareholders in the future; and
• NSA's understanding of its competition.
The forward-looking statements are based on NSA's beliefs,
assumptions and expectations of the Company's future performance, taking
into account all information currently available to NSA. Forward-looking
statements are not predictions of future events. These beliefs,
assumptions, and expectations can change as a result of many possible
events or factors, not all of which are known to the Company. Readers
should carefully review NSA's financial statements and the notes
thereto, as well as the section entitled "Risk Factors," "Management's
Discussion and Analysis of Financial Condition and Results of
Operations," and "Business and Properties" described in the Company's
Prospectus filed with the SEC pursuant to Rule 424(b) under the
Securities Act of 1933, as amended, on April 24, 2015 (the
"Prospectus"), and the other documents NSA files from time to time with
the Securities and Exchange Commission. If a change occurs, the
Company's business, financial condition, liquidity and results of
operations may vary materially from those expressed in NSA's
forward-looking statements. Any forward-looking statement speaks only
as of the date on which it is made. New risks and uncertainties arise
over time, and it is not possible for the Company to predict those
events or how they may affect NSA. Except as required by law, the
Company is not obligated to, and does not intend to, update or revise
any forward-looking statements, whether as a result of new information,
future events or otherwise.
|
|
|
|
|
|
|
National Storage Affiliates Trust
Consolidated Statements of Operations
(in thousands, except per share amounts)
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
|
Nine Months Ended September 30,
|
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
REVENUE
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental revenue
|
|
|
$
|
34,600
|
|
|
|
$
|
20,274
|
|
|
|
$
|
92,650
|
|
|
|
$
|
48,923
|
|
Other property-related revenue
|
|
|
1,078
|
|
|
|
589
|
|
|
|
2,969
|
|
|
|
1,316
|
|
Total revenue
|
|
|
35,678
|
|
|
|
20,863
|
|
|
|
95,619
|
|
|
|
50,239
|
|
OPERATING EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
Property operating expenses
|
|
|
12,000
|
|
|
|
7,710
|
|
|
|
32,668
|
|
|
|
18,665
|
|
General and administrative expenses
|
|
|
4,056
|
|
|
|
2,315
|
|
|
|
11,856
|
|
|
|
5,449
|
|
Depreciation and amortization
|
|
|
10,341
|
|
|
|
6,777
|
|
|
|
30,192
|
|
|
|
15,311
|
|
Total operating expenses
|
|
|
26,397
|
|
|
|
16,802
|
|
|
|
74,716
|
|
|
|
39,425
|
|
Income from operations
|
|
|
9,281
|
|
|
|
4,061
|
|
|
|
20,903
|
|
|
|
10,814
|
|
OTHER INCOME (EXPENSE)
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
(4,246
|
)
|
|
|
(5,459
|
)
|
|
|
(16,052
|
)
|
|
|
(15,628
|
)
|
Loss on early extinguishment of debt
|
|
|
—
|
|
|
|
—
|
|
|
|
(914
|
)
|
|
|
(1,020
|
)
|
Acquisition costs
|
|
|
(2,874
|
)
|
|
|
(3,092
|
)
|
|
|
(4,192
|
)
|
|
|
(8,363
|
)
|
Organizational and offering expenses
|
|
|
—
|
|
|
|
(539
|
)
|
|
|
(58
|
)
|
|
|
(1,216
|
)
|
Non-operating (expense) income
|
|
|
(52
|
)
|
|
|
3
|
|
|
|
(256
|
)
|
|
|
—
|
|
Gain on sale of self storage properties
|
|
|
—
|
|
|
|
1
|
|
|
|
—
|
|
|
|
1,427
|
|
Other income (expense)
|
|
|
(7,172
|
)
|
|
|
(9,086
|
)
|
|
|
(21,472
|
)
|
|
|
(24,800
|
)
|
Net income (loss)
|
|
|
2,109
|
|
|
|
(5,025
|
)
|
|
|
(569
|
)
|
|
|
(13,986
|
)
|
Net loss attributable to noncontrolling interests
|
|
|
2,263
|
|
|
|
5,025
|
|
|
|
8,405
|
|
|
|
13,986
|
|
Net income (loss) attributable to National Storage Affiliates
Trust
|
|
|
$
|
4,372
|
|
|
|
$
|
—
|
|
|
|
$
|
7,836
|
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per share - basic
|
|
|
$
|
0.19
|
|
|
|
$
|
—
|
|
|
|
$
|
0.61
|
|
|
|
$
|
—
|
|
Earnings (loss) per share - diluted
|
|
|
$
|
0.03
|
|
|
|
$
|
—
|
|
|
|
$
|
0.06
|
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding - basic
|
|
|
23,000
|
|
|
|
1
|
|
|
|
12,924
|
|
|
|
1
|
|
Weighted average shares outstanding - diluted
|
|
|
63,456
|
|
|
|
1
|
|
|
|
38,758
|
|
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
National Storage Affiliates Trust
Consolidated Balance Sheets
(dollars in thousands, except per share amounts)
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
September 30,
|
|
|
December 31,
|
|
|
|
2015
|
|
|
2014
|
ASSETS
|
|
|
|
|
|
|
Real estate
|
|
|
|
|
|
|
Self storage properties
|
|
|
$
|
1,077,801
|
|
|
|
$
|
838,941
|
|
Less accumulated depreciation
|
|
|
(59,881
|
)
|
|
|
(39,614
|
)
|
Self storage properties, net
|
|
|
1,017,920
|
|
|
|
799,327
|
|
Cash and cash equivalents
|
|
|
6,786
|
|
|
|
9,009
|
|
Restricted cash
|
|
|
3,794
|
|
|
|
2,120
|
|
Debt issuance costs, net
|
|
|
5,203
|
|
|
|
6,346
|
|
Other assets, net
|
|
|
10,989
|
|
|
|
15,944
|
|
Total assets
|
|
|
$
|
1,044,692
|
|
|
|
$
|
832,746
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
Debt financing
|
|
|
$
|
495,981
|
|
|
|
$
|
597,691
|
|
Accounts payable and accrued liabilities
|
|
|
16,617
|
|
|
|
10,012
|
|
Distributions payable
|
|
|
12,975
|
|
|
|
6,763
|
|
Deferred revenue
|
|
|
5,313
|
|
|
|
4,176
|
|
Total liabilities
|
|
|
530,886
|
|
|
|
618,642
|
|
Equity
|
|
|
|
|
|
|
Common shares of beneficial interest, par value $0.01 per share.
250,000,000 and 1,000 shares authorized, 23,017,210 and
1,000 shares issued and outstanding at September 30, 2015
and December 31, 2014, respectively
|
|
|
230
|
|
|
|
—
|
|
Additional paid-in capital
|
|
|
234,818
|
|
|
|
—
|
|
Retained earnings
|
|
|
10
|
|
|
|
—
|
|
Accumulated other comprehensive loss
|
|
|
—
|
|
|
|
—
|
|
Total shareholders' equity
|
|
|
235,058
|
|
|
|
—
|
|
Noncontrolling interests
|
|
|
278,748
|
|
|
|
214,104
|
|
Total equity
|
|
|
513,806
|
|
|
|
214,104
|
|
Total liabilities and equity
|
|
|
$
|
1,044,692
|
|
|
|
$
|
832,746
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Funds From Operations and Core Funds From Operations
|
(in thousands, except per share and unit amounts) (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
|
Nine Months Ended September 30,
|
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
Net income (loss)
|
|
|
$
|
2,109
|
|
|
|
$
|
(5,025
|
)
|
|
|
$
|
(569
|
)
|
|
|
$
|
(13,986
|
)
|
Add (subtract):
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate depreciation and amortization
|
|
|
10,248
|
|
|
|
6,777
|
|
|
|
29,943
|
|
|
|
15,311
|
|
Gain on sale of self storage properties
|
|
|
—
|
|
|
|
(1
|
)
|
|
|
—
|
|
|
|
(1,427
|
)
|
FFO attributable to subordinated performance unitholders (1)
|
|
|
(3,898
|
)
|
|
|
(2,197
|
)
|
|
|
(10,317
|
)
|
|
|
(4,249
|
)
|
FFO attributable to common shareholders, OP unitholders,
and LTIP unitholders
|
|
|
8,459
|
|
|
|
(446
|
)
|
|
|
19,057
|
|
|
|
(4,351
|
)
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition costs
|
|
|
2,874
|
|
|
|
3,092
|
|
|
|
4,192
|
|
|
|
8,363
|
|
Organizational and offering expenses
|
|
|
—
|
|
|
|
539
|
|
|
|
58
|
|
|
|
1,216
|
|
Loss on early extinguishment of debt
|
|
|
—
|
|
|
|
—
|
|
|
|
914
|
|
|
|
1,020
|
|
Core FFO attributable to common shareholders, OP unitholders,
and LTIP unitholders
|
|
|
$
|
11,333
|
|
|
|
$
|
3,185
|
|
|
|
$
|
24,221
|
|
|
|
$
|
6,248
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares and units outstanding - FFO and Core FFO: (2)
|
Weighted average shares outstanding - basic
|
|
|
23,000
|
|
|
|
1
|
|
|
|
12,924
|
|
|
|
1
|
|
Weighted average restricted common shares outstanding
|
|
|
17
|
|
|
|
—
|
|
|
|
6
|
|
|
|
—
|
|
Weighted average OP units outstanding (3)
|
|
|
21,109
|
|
|
|
14,874
|
|
|
|
20,181
|
|
|
|
11,917
|
|
Weighted average DownREIT OP unit equivalents outstanding
|
|
|
1,432
|
|
|
|
177
|
|
|
|
1,411
|
|
|
|
60
|
|
Weighted average LTIP units outstanding (4)
|
|
|
2,243
|
|
|
|
—
|
|
|
|
1,273
|
|
|
|
—
|
|
Total weighted average shares and units outstanding - FFO and
Core FFO
|
|
|
47,801
|
|
|
|
15,052
|
|
|
|
35,795
|
|
|
|
11,978
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FFO per share and unit
|
|
|
$
|
0.18
|
|
|
|
$
|
(0.03
|
)
|
|
|
$
|
0.53
|
|
|
|
$
|
(0.36
|
)
|
Core FFO per share and unit
|
|
|
$
|
0.24
|
|
|
|
$
|
0.21
|
|
|
|
$
|
0.68
|
|
|
|
$
|
0.52
|
|
(1)
|
|
Amounts represent distributions declared for subordinated
performance unitholders and DownREIT subordinated performance
unitholders for the periods presented. For the three months ended
September 30, 2014, these distributions were declared and paid to
unitholders of record as of September 30, 2014 during the period
subsequent to September 30, 2014, and therefore the amounts are
not reflected in the historical financial statements for the
periods presented.
|
(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. Subordinated performance units, DownREIT
subordinated performance units, and 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). Subordinated performance units
and DownREIT subordinated units have been excluded from the
calculations of FFO and Core FFO per share and unit as their
effect is anti-dilutive.
|
(3)
|
|
Amount for the nine months ended September 30, 2014 includes
2,060,711 OP units outstanding for the entire period which were
issued in connection with the contribution of 65 self storage
properties on April 1, 2014 by SecurCare Portfolio Holdings, LLC
and SecurCare Value Properties, Ltd. (collectively, "NSA
Predecessor"), entities whose principal owner is the Company's
chief executive officer. For financial reporting purposes, NSA
Predecessor contributions are reported as a reorganization of
entities under common control whereby the contributed self storage
properties are included in the Company's results of operations for
the entirety of the nine months ended September 30, 2014 and have
been recorded in the Company's financial statements at NSA
Predecessor's depreciated historical cost basis.
|
(4)
|
|
LTIP units have been excluded from the calculations of weighted
average shares and units outstanding prior to April 28, 2015
because such units did not participate in distributions prior to
the Company’s initial public offering.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Non-GAAP Financial Measurements
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands) (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Operating Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
|
Nine Months Ended September 30,
|
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
Net income (loss)
|
|
|
$
|
2,109
|
|
|
|
$
|
(5,025
|
)
|
|
|
$
|
(569
|
)
|
|
|
$
|
(13,986
|
)
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
General and administrative expenses
|
|
|
4,056
|
|
|
|
2,315
|
|
|
|
11,856
|
|
|
|
5,449
|
|
Depreciation and amortization
|
|
|
10,341
|
|
|
|
6,777
|
|
|
|
30,192
|
|
|
|
15,311
|
|
Interest expense
|
|
|
4,246
|
|
|
|
5,459
|
|
|
|
16,052
|
|
|
|
15,628
|
|
Loss on early extinguishment of debt
|
|
|
—
|
|
|
|
—
|
|
|
|
914
|
|
|
|
1,020
|
|
Acquisition costs
|
|
|
2,874
|
|
|
|
3,092
|
|
|
|
4,192
|
|
|
|
8,363
|
|
Organizational and offering expenses
|
|
|
—
|
|
|
|
539
|
|
|
|
58
|
|
|
|
1,216
|
|
Gain on sale of self storage properties
|
|
|
—
|
|
|
|
(1
|
)
|
|
|
—
|
|
|
|
(1,427
|
)
|
Non-operating expense (income)
|
|
|
52
|
|
|
|
(3
|
)
|
|
|
256
|
|
|
|
—
|
|
Net Operating Income
|
|
|
$
|
23,678
|
|
|
|
$
|
13,153
|
|
|
|
$
|
62,951
|
|
|
|
$
|
31,574
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA and Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
|
Nine Months Ended September 30,
|
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
Net income (loss)
|
|
|
$
|
2,109
|
|
|
|
$
|
(5,025
|
)
|
|
|
$
|
(569
|
)
|
|
|
$
|
(13,986
|
)
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
10,341
|
|
|
|
6,777
|
|
|
|
30,192
|
|
|
|
15,311
|
|
Interest expense
|
|
|
4,246
|
|
|
|
5,459
|
|
|
|
16,052
|
|
|
|
15,628
|
|
Loss on early extinguishment of debt
|
|
|
—
|
|
|
|
—
|
|
|
|
914
|
|
|
|
1,020
|
|
EBITDA
|
|
|
16,696
|
|
|
|
7,211
|
|
|
|
46,589
|
|
|
|
17,973
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition costs
|
|
|
2,874
|
|
|
|
3,092
|
|
|
|
4,192
|
|
|
|
8,363
|
|
Organizational and offering expenses
|
|
|
—
|
|
|
|
539
|
|
|
|
58
|
|
|
|
1,216
|
|
Gain on sale of self storage properties
|
|
|
—
|
|
|
|
(1
|
)
|
|
|
—
|
|
|
|
(1,427
|
)
|
Equity-based compensation expense (1)
|
|
|
654
|
|
|
|
316
|
|
|
|
2,375
|
|
|
|
1,000
|
|
Adjusted EBITDA
|
|
|
$
|
20,224
|
|
|
|
$
|
11,157
|
|
|
|
$
|
53,214
|
|
|
|
$
|
27,125
|
|
(1)
|
|
Equity-based compensation expense is a non-cash item that is
included in general and administrative expenses in NSA’s
consolidated statements of operations.
|
|
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20151109006673/en/
Copyright Business Wire 2015