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The call conveyed a constructive operational inflection: management highlighted clear sequential improvements in same-store revenue trends, occupancy inflection (including January YoY occupancy +20 bps), stronger rental volumes, payroll and expense discipline, and strategic portfolio actions (brand consolidation, dispositions, JV and preferred-equity activity). Key near-term headwinds remain — full-year same-store revenue was down 2.3%, some large MSAs still face supply pressure, move-in rates are expected to be negative early in 2026, leverage sits slightly above target and $375M of maturities create refinancing risk. On balance, the company presented more substantive positives around momentum and execution than negatives, with management providing a cautious but confident guide for gradual recovery through 2026.
Management's 2026 guidance calls for same-store revenue growth of about 90 basis points, same-store operating expense growth of 3%, flat same-store NOI and core FFO per share of $2.19, with acquisition and disposition ranges of $50–$150 million (NSA share) that are roughly neutral at the midpoints; this follows Q4 core FFO/share of $0.57 and FY‑2025 core FFO/share of $2.23 (at the high end of guidance). For context, Q4 same-store revenue was down 70 bps (FY‑2025 down 2.3%), Q4 expenses were down 80 bps (FY +3.1%), payroll was down 4.1% in Q4 (‑2.8% FY) while marketing was up 37% in Q4 (31% FY), and rent roll‑downs are in the low‑to‑mid‑30s; balance sheet highlights include $375 million of 2026 maturities ($275M term loan due July, $100M unsecured notes in May/Oct), ~ $400M revolver balance with $550M availability, and net debt/EBITDA of 6.6x (versus a 5.5–6.5x target). Management expects occupancy to have inflected to +20 bps YoY in January, move‑in rates to be negative for ~4–5 months before turning neutral/positive in the back half, and a midpoint FFO decline of $0.04 (roughly $0.02 from higher G&A and $0.02 from refinancing/insurance captive headwinds).
Reported core FFO per share of $0.57 for Q4 and $2.23 for the full year, at the high end of guidance and above consensus; full-year same-store NOI and same-store revenue finished at the high end of guidance ranges.
Same-store revenue decline narrowed to -70 basis points in Q4 (versus -260 bps in Q3) with sequential monthly improvement; year-end occupancy down 70 basis points (improved from -140 bps at Q3 end); January occupancy was +20 basis points year-over-year and that trend continued into February.
Average revenue per occupied square foot grew ~100 basis points year-over-year in Q4, partially offsetting occupancy headwinds and contributing to improved RevPath.
Rental volume improved materially (sq ft basis ~11% higher year-over-year in Q4), with management citing higher top-of-funnel activity, improved conversion rates and successful marketing/AI-driven pricing and promotions.
Operating expenses declined ~80 basis points in Q4; payroll costs decreased 4.1% in Q4 and 2.8% for the full year due to hours/operations optimization and call center/digital efficiencies.
Marketing spend increased 37% in Q4 and 31% for the full year as management prioritized customer acquisition where returns were evident, helping drive improved rental volumes and search/conversion performance.
Continued portfolio optimization: consolidated another brand (down to six), exited 5 states and sold 15 properties totaling $97 million (full year); acquired 10 properties totaling $75 million across JVs and on-balance sheet; Q4 sales of $24M plus subsequent $21M, and a $10M acquisition post-quarter.
Maintained liquidity with ~$400M revolver balance and ~$550M availability; management believes it has optionality to address $375M of 2026 maturities and access to term loan, private placement and secured markets.
Launched a preferred equity investments platform (2-year target deployment); already has 3 properties under contract totaling over $50M, providing an additional growth channel alongside JVs.
Greetings. Welcome to National Storage Affiliates Fourth Quarter 2025 Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, George Hoglund, Vice President of Investor Relations for National Storage Affiliates. Thank you, Mr. Hoglund, you may begin.
We'd like to thank you for joining us today for the Fourth Quarter 2025 Earnings Conference Call of National Storage Affiliates Trust. On the line with me here today are NSA's President and CEO, Dave Cramer; and CFO, Brandon Togashi. Following prepared remarks, management will accept questions from registered financial analysts. Please limit your questions to one question and one follow-up and then return to the queue if you have more questions. In addition to the press release distributed yesterday afternoon, we furnished our supplemental package with additional detail on our results, which may be found in the Investor Relations section on our website at nsastorage.com. On today's call, management's prepared remarks and answers to your questions may contain forward-looking statements that are subject to risks and uncertainties and represent management's estimates as of today, February 26, 2026. The company assumes no obligation to revise or update any forward-looking statement because of changing market conditions or other circumstances after the date of this conference call. The company cautions that actual results may differ materially from those projected in any forward-looking statement.
For additional details concerning our forward-looking st...