National Storage Affiliates Trust Reports 2015 Annual Results; Core FFO per Share Increase of 22.7%; Same Store NOI Increases 11.5%; Provides 2016 Guidance
Wednesday, March 02, 2016 4:30:03 PM ET National Storage Affiliates Trust ("NSA" or the "Company") (NSA ),
today reported the Company’s fourth quarter and full year 2015 results.
Fourth Quarter 2015 Highlights
--
Core funds from operations ("Core FFO") was $11.6 million, or $0.24
per share for the fourth quarter of 2015, an increase of 14.3% per
share compared to Core FFO of $4.2 million, or $0.21 per share, for
the fourth quarter of 2014.
--
Net operating income ("NOI") was $25.6 million for the fourth quarter
of 2015, an increase of 46.2% compared to NOI of $17.5 million for the
fourth quarter of 2014.
--
Same store NOI was $9.8 million for the fourth quarter of 2015, an
increase of 10.7% compared to same store NOI of $8.9 million for the
fourth quarter of 2014.
--
Same store total revenue was $15.0 million for the fourth quarter of
2015, an increase of 6.5% compared to same store total revenue of
$14.0 million for the fourth quarter of 2014.
--
Acquired 16 self storage properties during the fourth quarter of 2015
for approximately $70.4 million.
Full Year 2015 Highlights
--
Core FFO was $35.8 million, or $0.92 per share, for the full year
2015, an increase of 22.7% per share compared to Core FFO of $10.4
million, or $0.75 per share, for the full year 2014.
--
NOI was $88.5 million for the full year 2015, an increase of 80.4%
compared to NOI of $49.1 million for the full year 2014.
--
Same store NOI was $38.3 million for the full year 2015, an increase
of 11.5% compared to same store NOI of $34.4 million for the full year
2014.
--
Same store total revenue was $58.7 million for the full year 2015, an
increase of 7.8% compared to same store total revenue of $54.5 million
for the full year 2014.
--
Acquired 58 properties for the full year 2015 for approximately $313.0
million.
Arlen Nordhagen, Chief Executive Officer, commented, "2015 proved to be
an excellent year for NSA. We are extremely pleased with our full year
results which reflect significant year-over-year growth across the board
in Core FFO, NOI, same store NOI and same store revenue. From an
operational standpoint, full year total revenue increased approximately
74% to $134 million and our full year total portfolio average rent per
occupied square foot increased approximately 8% to $10.62. Our fourth
quarter performance was also strong as Core FFO per share increased
14.3%, same store NOI increased 10.7% and same store total revenue
increased 6.5%. During the quarter we acquired 16 additional self
storage properties for approximately $70 million.
Mr. Nordhagen, continued, "We recently announced the addition of our
new, seventh Participating Regional Operator ("PRO"), Hide-Away Storage
Services, Inc. We look forward to Hide-Away joining us, as they bring
almost 40 years of industry experience and expertise to our PRO team and
Best Practices committee. Since the completion of our IPO related
transactions in the second quarter of 2015, NSA’s value strategy has
been hitting on all cylinders. For the last three quarters, same store
NOI growth has averaged 12% above the prior year through the continued
implementation of our best practices programs. And taking full advantage
of our differentiated growth strategy, we have announced a total of
almost $380 million of new acquisitions since July 1, 2015, including
significant contributions from all three of our external growth drivers
- our captive pipeline acquisitions, our third party acquisitions and
now our new PRO integration. We believe this combination is unique in
our industry and positions us to deliver very attractive shareholder
returns over the long-term."
Financial Results
($ in thousands, except per share and unit data) Three Months Ended Year Ended
December 31, December 31,
----------------------------------------------------------------------------- ----------------------------------------------------------------------------------
2015 2014 2015 2014
-------------------------------- ------------------------------- -------------------------------- ------------------------------------
Net income (loss) $ 5,365 $ (2,371 ) $ 4,796 $ (16,357 )
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Funds From Operations ("FFO") 11,045 2,867 30,102 (1,484 )
Add back acquisition costs, organizational and offering expenses, 573 1,299 5,737 11,898
and loss on early
extinguishment of debt
--------- -------------------- -------- -------------------- --------- -------------------- ------------- --------------------
Core FFO $ 11,618 $ 4,166 $ 35,839 $ 10,414
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FFO per share and unit $ 0.23 $ 0.15 $ 0.77 $ (0.11 )
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Core FFO per share and unit $ 0.24 $ 0.21 $ 0.92 $ 0.75
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Fourth Quarter 2015
FFO was $11.0 million, or $0.23 per share, for the fourth quarter of
2015, compared to FFO of $2.9 million, or $0.15 per share, for the
fourth quarter of 2014, an increase of 53% per share. Core FFO was $11.6
million, or $0.24 per share for the fourth quarter of 2015, an increase
of 14.3% per share compared to Core FFO of $4.2 million, or $0.21 per
share, for the fourth quarter of 2014. The increases in FFO and Core FFO
were primarily the result of integrating multiple self storage property
acquisitions, same store NOI growth and reductions in interest expense
and acquisition costs.
Net income was $5.4 million for the fourth quarter of 2015, compared to
a net loss of $2.4 million for the fourth quarter of 2014. This increase
was also primarily the result of integrating new property acquisitions
and same store NOI growth, combined with reductions in interest expense
and acquisition costs, partially offset by an increase in depreciation
and amortization.
Full Year 2015
FFO was $30.1 million, or $0.77 per share, for the full year 2015,
compared to a FFO net loss of $1.5 million, or $0.11 per share, for the
full year of 2014. Core FFO was $35.8 million, or $0.92 per share, for
the full year 2015, an increase of 22.7% per share compared to Core FFO
of $10.4 million, or $0.75 per share, for the full year of 2014. The
increases in FFO and Core FFO were primarily driven by the integration
of multiple self storage property acquisitions, a strong increase in
same store NOI and reductions in interest expense and organizational and
offering expenses, partially offset by an increase in general and
administrative expenses.
Net income was $4.8 million for the full year 2015, compared to a net
loss of $16.4 million for the full year of 2014. The increase was
primarily the result of new property acquisitions, strong growth in same
store NOI, and reductions in acquisition costs, interest expense and
organizational and offering expenses, partially offset by increases in
depreciation and amortization and general and administrative expenses.
Non-GAAP financial measures, including FFO, Core FFO and NOI, are
defined and reconciled to their most directly comparable GAAP measure in
the Schedules to this press release and in the supplemental financial
information.
Total Portfolio Operating Results
($ in thousands, except per square foot data) Three Months Ended Year Ended
December 31, December 31,
-------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------------------
2015 2014 Growth 2015 2014 Growth
-------------------------------- ------------------------------- --------- --------------------------------- -------------------------------- --------------------------------
Total revenue $ 38,300 $ 26,731 43.3 % $ 133,919 $ 76,970 74.0 %
Property operating expenses 12,744 9,248 37.8 % 45,412 27,913 62.7 %
------------------------------- ------------------------------ ---- --- -------------------------------- ------------------------------- ---------- --------------------
Net Operating Income (NOI) $ 25,556 $ 17,483 46.2 % $ 88,507 $ 49,057 80.4 %
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Average Occupancy 88.8 % 85.6 % 3.2 % 87.9 % 85.5 % 2.4 %
=============================== ============================== ==== === ================================ =============================== ========== ====================
Average annualized rental revenue per occupied square foot $ 10.65 $ 10.19 4.5 % $ 10.62 $ 9.81 8.3 %
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Fourth Quarter 2015
Total revenues were $38.3 million for the fourth quarter of 2015, an
increase of 43.3% compared to total revenues of $26.7 million for the
fourth quarter of 2014. Revenue increases were predominately driven by
incremental rental revenue from the integration of multiple acquisitions
during 2015, combined with a 320 basis point increase in average total
portfolio occupancy for the fourth quarter of 2015 compared to the
fourth quarter of 2014, and a 4.5% increase in average annualized rental
revenue per occupied square foot for the fourth quarter of 2015 compared
to the fourth quarter of 2014.
Total portfolio NOI was $25.6 million for the fourth quarter of 2015, an
increase of 46.2% compared to NOI of $17.5 million for the fourth
quarter of 2014.
Full Year 2015
Total revenues were $133.9 million for the full year 2015, an increase
of approximately 74.0% compared to total revenues of $77.0 million for
the full year of 2014. Total revenue increases were primarily
attributable to the acquisition of 58 self storage properties in 2015,
incremental rental revenue from 83 property acquisitions in 2014, an
increase in average total portfolio occupancy, the acquisition of
properties with increased market rates, and for in-place tenants,
achievement of regular rental increases.
Total portfolio NOI was $88.5 million for the full year 2015, an
increase of 80.4% compared to NOI of $49.1 million for the full year of
2014.
Same Store Operating Results
($ in thousands, except per square foot data) Three Months Ended Year Ended
December 31, December 31,
---------------------------------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------------------------------------
2015 2014 Growth 2015 2014 Growth
------------------------------- ------------------------------- ------------------------------------ -------------------------------- -------------------------------- ------------------------------------
Total revenue $ 14,953 $ 14,041 6.5 % $ 58,741 $ 54,469 7.8 %
Property operating expenses 5,109 5,146 (0.7 )% 20,439 20,107 1.7 %
------------------------------ ------------------------------ -------------- -------------------- ------------------------------- ------------------------------- -------------- --------------------
Net Operating Income (NOI) $ 9,844 $ 8,895 10.7 % $ 38,302 $ 34,362 11.5 %
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NOI Margin 65.8 % 63.4 % 2.4 % 65.2 % 63.1 % 2.1 %
============================== ============================== ============== ==================== =============================== =============================== ============== ====================
Average Occupancy 88.9 % 86.4 % 2.5 % 88.1 % 85.6 % 2.5 %
============================== ============================== ============== ==================== =============================== =============================== ============== ====================
Average annualized rental revenue per occupied square foot $ 10.07 $ 9.72 3.6 % $ 9.96 $ 9.50 4.8 %
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Properties included in same store 135 135 -- 135 135 --
============================== ============================== ============== ==================== =============================== =============================== ============== ====================
Fourth Quarter 2015
Same store total revenues were $15.0 million for the fourth quarter of
2015, an increase of 6.5% compared to $14.0 million for the fourth
quarter of 2014. Revenue increases were driven by a 250 basis point
increase in average occupancy for the fourth quarter of 2015 compared to
the fourth quarter of 2014, combined with a 3.6% increase in average
annualized rental revenue per occupied square foot compared to the prior
year.
Same store NOI was $9.8 million for the fourth quarter of 2015, an
increase of 10.7% compared to same store NOI of $8.9 million for the
fourth quarter of 2014. Revenue and NOI gains were driven by average
occupancy gains and average annualized rental revenue per occupied
square foot increases, and a decrease in expenses of 0.7% for the fourth
quarter of 2015 compared to the fourth quarter of 2014.
Full Year 2015
Same store total revenues were $58.7 million for the full year 2015, an
increase of 7.8% compared to $54.5 million for the full year of 2014.
Revenue increases were driven by a year-over-year average occupancy
increase, combined with a 4.8% increase in average annualized rental
revenue per occupied square foot compared to the prior year.
Same store NOI was $38.3 million for the full year 2015, an increase of
11.5% compared to same store NOI of $34.4 million for the full year of
2014. Revenue and NOI gains were driven by average occupancy gains and
average annualized rental revenue per occupied square foot increases,
offset partially by a 1.7% increase in expenses for the full year 2015
compared to the full year of 2014.
Investment Activity
During the fourth quarter of 2015, NSA invested approximately $70.4
million in the acquisition of 16 self storage properties, encompassing
approximately 1 million rentable square feet configured in approximately
7,700 storage units.
For the full year 2015, the Company invested approximately $313.0
million in the acquisition of 58 properties, encompassing approximately
3.7 million rentable square feet configured in approximately 28,500
storage units.
Subsequent to December 31, 2015, NSA acquired 16 self storage properties
for a total investment of approximately $85 million, encompassing
approximately 1.0 million rentable square feet configured in
approximately 7,300 storage units.
Debt and Credit Facility Activity
At December 31, 2015, NSA had approximately $571 million of total debt
outstanding including approximately $388 million outstanding debt under
its credit facility.
Dividends
On November 12, 2015, NSA’s Board of Trustees approved an increase in
the Company’s quarterly common dividend from $0.19 per share to $0.20
per share, or from $0.76 to $0.80 per share annualized. The increase was
effective with the quarterly dividend paid on December 30, 2015 to
shareholders of record on December 15, 2015. The dividend, based on the
December 31, 2015 closing price, represents an annual yield of 4.67%.
2016 Guidance Range
The following table outlines the Company’s estimates for the year ended
December 31, 2016:
Full Year 2016
Same store operations (222 stores)
Total revenues 6% - 7%
Property operating expenses 3% - 4%
NOI 7% - 9%
General and administrative expenses (as a percent of revenue)
9.0% - 9.5%
General and administrative expenses (excluding equity-based
compensation)
Equity-based compensation 1.0% - 1.5%
Subordinated performance unit distributions, in millions $20.0 - $22.0
Acquisitions, in millions $350.0 - $450.0
Core FFO per share $1.02 - $1.08
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
March 2, 2016.
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
Thursday, March 3, 2016 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: Thursday, March 3, 2016,
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 Thursday,
March 10, 2016. A replay of the webcast will be available for 30 days on
NSA’s website at www.nationalstorageaffiliates.com.
Upcoming Industry Conferences
NSA management is scheduled to attend the Self Storage Association’s
2016 Spring Conference & Trade Show in Dallas, Texas on March 30 - April
1, 2016 and the Arizona Self Storage Association’s Owners Summit in
Chandler, Arizona on April 11 - 13, 2016.
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 292 self storage properties located in 17 states with
approximately 17 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
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, the debt and lending markets or the general economy; the
Company’s business and investment strategy; and the acquisition of
properties, including the timing of acquisitions. For a further list and
description of such risks and uncertainties, see the Company’s
Prospectus filed with the Securities and Exchange Commission pursuant to
Rule 424(b) under the Securities Act of 1933 on April 24, 2015 and the
reports 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 Year Ended
December 31, December 31,
----------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------
2015 2014 2015 2014
------------------------------------- -------------------------------------------- ------------------------------------- -------------------------------------------
REVENUE
Rental revenue $ 37,219 $ 25,914 $ 129,869 $ 74,837
Other property-related revenue 1,081 817 4,050 2,133
------------------------------------ ------------------------------------------- ------------------------------------ ------------------------------------------
Total revenue 38,300 26,731 133,919 76,970
------------------------------------ ------------------------------------------- ------------------------------------ ------------------------------------------
OPERATING EXPENSES
Property operating expenses 12,744 9,248 45,412 27,913
General and administrative expenses 4,409 2,740 16,265 8,189
Depreciation and amortization 10,459 8,474 40,651 23,785
------------------------------------ ------------------------------------------- ------------------------------------ ------------------------------------------
Total operating expenses 27,612 20,462 102,328 59,887
------------------------------------ ------------------------------------------- ------------------------------------ ------------------------------------------
Income from operations 10,688 6,269 31,591 17,083
OTHER INCOME (EXPENSE)
Interest expense (4,727 ) (7,405 ) (20,779 ) (23,033 )
Loss on early extinguishment of debt -- -- (914 ) (1,020 )
Acquisition costs (573 ) (1,195 ) (4,765 ) (9,558 )
Organizational and offering expenses -- (104 ) (58 ) (1,320 )
Non-operating (expense) income (23 ) 64 (279 ) 64
Gain on sale of self storage properties -- -- -- 1,427
------------------------------------ ------------------------------------------- ------------------------------------ ------------------------------------------
Other income (expense) (5,323 ) (8,640 ) (26,795 ) (33,440 )
------------------------------------ ------------------------------------------- ------------------------------------ ------------------------------------------
Net income (loss) 5,365 (2,371 ) 4,796 (16,357 )
Net (income) loss attributable to noncontrolling interests (761 ) 2,371 7,644 16,357
------------------------------------ ------------------------------------------- ------------------------------------ ------------------------------------------
Net income (loss) attributable to National Storage Affiliates $ 4,604 $ -- $ 12,440 $ --
Trust
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Earnings (loss) per share - basic $ 0.20 $ -- $ 0.80 $ --
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Earnings (loss) per share - diluted $ 0.08 $ -- $ 0.17 $ --
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Weighted average shares outstanding - basic 23,000 1 15,463 1
==================================== =========================================== ==================================== ==========================================
Weighted average shares outstanding - diluted 65,280 1 45,409 1
==================================== =========================================== ==================================== ==========================================
National Storage Affiliates Trust
Consolidated
Balance Sheets
(dollars in thousands, except per share
amounts)
(unaudited)
December 31,
-------------------------------------------------------------------------------------------------
2015 2014
--------------------------------------- -------------------------------------
ASSETS
Real estate
Self storage properties $ 1,147,201 $ 838,941
Less accumulated depreciation (68,100 ) (39,614 )
-------------------------------------- ------------------------------------
Self storage properties, net 1,079,101 799,327
Cash and cash equivalents 6,665 9,009
Restricted cash 2,712 2,120
Debt issuance costs, net 4,740 6,346
Other assets, net 8,648 15,944
-------------------------------------- ------------------------------------
Total assets $ 1,101,866 $ 832,746
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LIABILITIES AND EQUITY
Liabilities
Debt financing $ 570,612 $ 597,691
Accounts payable and accrued liabilities 9,694 10,012
Distributions payable -- 6,763
Deferred revenue 5,513 4,176
-------------------------------------- ------------------------------------
Total liabilities 585,819 618,642
-------------------------------------- ------------------------------------
Equity
230 --
Common shares of beneficial interest, par value $0.01 per share.
250,000,000 and
1,000 shares authorized, 23,015,751 and
1,000 shares issued and outstanding
at December 31, 2015
and 2014, respectively
Additional paid-in capital 236,392 --
Retained earnings 11 --
Accumulated other comprehensive loss -- --
-------------------------------------- ------------------------------------
Total shareholders’ equity 236,633 --
Noncontrolling interests 279,414 214,104
-------------------------------------- ------------------------------------
Total equity 516,047 214,104
-------------------------------------- ------------------------------------
Total liabilities and equity $ 1,101,866 $ 832,746
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Funds From Operations and Core Funds From Operations
(in thousands, except per share and unit amounts) (unaudited)
Three Months Ended Year Ended
December 31, December 31,
---------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------
2015 2014 2015 2014
------------------------------------- ------------------------------------- ------------------------------------- -------------------------------------
Net income (loss) $ 5,365 $ (2,371 ) $ 4,796 $ (16,357 )
Add (subtract):
Real estate depreciation and amortization 10,360 8,294 40,303 23,605
Gain on sale of self storage properties -- -- -- (1,427 )
FFO attributable to subordinated performance unitholders (1) (4,680 ) (3,056 ) (14,997 ) (7,305 )
------------------------------------ ------------------------------------ ------------------------------------ ------------------------------------
FFO attributable to common shareholders, OP unitholders, and LTIP 11,045 2,867 30,102 (1,484 )
unitholders
Add:
Acquisition costs 573 1,195 4,765 9,558
Organizational and offering expenses -- 104 58 1,320
Loss on early extinguishment of debt -- -- 914 1,020
------------------------------------ ------------------------------------ ------------------------------------ ------------------------------------
Core FFO attributable to common shareholders, OP unitholders, and $ 11,618 $ 4,166 $ 35,839 $ 10,414
LTIP unitholders
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Weighted average shares and units outstanding - FFO and Core FFO: (2)
Weighted average shares outstanding - basic 23,000 1 15,463 1
Weighted average restricted common shares outstanding 17 -- 9 --
Weighted average OP units outstanding (3) 21,472 18,274 20,507 13,519
Weighted average DownREIT OP unit equivalents outstanding 1,835 1,269 1,518 364
Weighted average LTIP units outstanding (4) 2,361 -- 1,548 --
------------------------------------ ------------------------------------ ------------------------------------ ------------------------------------
Total weighted average shares and units outstanding - FFO and 48,685 19,544 39,045 13,884
Core FFO
============== ==================== ============== ==================== ============== ==================== ============== ====================
FFO per share and unit $ 0.23 $ 0.15 $ 0.77 $ (0.11 )
Core FFO per share and unit $ 0.24 $ 0.21 $ 0.92 $ 0.75
(1) Amounts represent distributions declared for subordinated
performance unitholders and DownREIT subordinated performance
unitholders 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 our 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 performance 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 year ended December 31, 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 year ended December 31, 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 Year Ended
December 31, December 31,
---------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------
2015 2014 2015 2014
------------------------------------- ------------------------------------- ------------------------------------- ------------------------------------
Net income (loss) $ 5,365 $ (2,371 ) $ 4,796 $ (16,357 )
Add:
General and administrative expenses 4,409 2,740 16,265 8,189
Depreciation and amortization 10,459 8,474 40,651 23,785
Interest expense 4,727 7,405 20,779 23,033
Loss on early extinguishment of debt -- -- 914 1,020
Acquisition costs 573 1,195 4,765 9,558
Organizational and offering expenses -- 104 58 1,320
Gain on sale of self storage properties -- -- -- (1,427 )
Non-operating expense (income) 23 (64 ) 279 (64 )
------------------------------------ ------------------------------------ ------------------------------------ -----------------------------------
Net Operating Income $ 25,556 $ 17,483 $ 88,507 $ 49,057
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EBITDA and Adjusted EBITDA
------------------------------------------- -------------------- --------------------------------------------------------- --------------------------------------------------------- --------------------------------------------------------- ------------------------------------
Three Months Ended Year Ended
December 31, December 31,
---------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------
2015 2014 2015 2014
------------------------------------- ------------------------------------- ------------------------------------- ------------------------------------
Net income (loss) $ 5,365 $ (2,371 ) $ 4,796 $ (16,357 )
Add:
Depreciation and amortization 10,459 8,474 40,651 23,785
Interest expense 4,727 7,405 20,779 23,033
Loss on early extinguishment of debt -- -- 914 1,020
------------------------------------ ------------------------------------ ------------------------------------ -----------------------------------
EBITDA 20,551 13,508 67,140 31,481
Add:
Acquisition costs 573 1,195 4,765 9,558
Organizational and offering expenses -- 104 58 1,320
Gain on sale of self storage properties -- -- -- (1,427 )
Equity-based compensation expense (1) 652 468 3,027 1,468
------------------------------------ ------------------------------------ ------------------------------------ -----------------------------------
Adjusted EBITDA $ 21,776 $ 15,275 $ 74,990 $ 42,400
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(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.
http://cts.businesswire.com/ct/CT?id=bwnews&sty=20160302006435r1&sid=cmtx6&distro=nx&lang=en
View source version on businesswire.com: http://www.businesswire.com/news/home/20160302006435/en/
SOURCE: National Storage Affiliates Trust
National Storage Affiliates Trust
Investor/Media Relations
Marti Dowling, 720-630-2624
Director - Investor Relations
mdowling@nsareit.net
