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 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 )
                                                                                       === ====== ====================                      == ====== ====================                      === ====== ====================                      ====== ======= ====================
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  
                                                                                       === ====== ====================                      == ====== ====================                      === ====== ====================                      ====== ======= ====================
                                                                                                                                                                                                                                                      
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  
                                                                                       === ====== ====================                      == ====== ====================                      === ====== ====================                      ====== ======= ====================
                                                                                                                                                                                                                                                                     

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 %
                                                                                === ====== ====================                      == ====== ====================                      ==== ===                      === ======= ====================                      === ====== ====================                      ========== ====================
                                                                                                                                                                                                                                                                                                                                   
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 %
                                                                                === ====== ====================                      == ====== ====================                      ==== ===                      === ======= ====================                      === ====== ====================                      ========== ====================
                                                                                                                                                                                                                                                                                                                                              

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 %
                                                                                == ====== ====================                      == ====== ====================                      ============== ====================                      === ====== ====================                      === ====== ====================                      ============== ====================
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 %
                                                                                == ====== ====================                      == ====== ====================                      ============== ====================                      === ====== ====================                      === ====== ====================                      ============== ====================
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
                                                                                         ======= ======= ====================                      ======= ============== ====================                      ======= ======= ====================                      ====== ============== ====================
                                                                                                                                                                                                                                                                               
Earnings (loss) per share - basic                                                              $    0.20                              $ --                              $    0.80                             $ --  
                                                                                         ======= ======= ====================                      ======= ============== ====================                      ======= ======= ====================                      ====== ============== ====================
Earnings (loss) per share - diluted                                                            $    0.08                              $ --                              $    0.17                             $ --  
                                                                                         ======= ======= ====================                      ======= ============== ====================                      ======= ======= ====================                      ====== ============== ====================
                                                                                                                                                                                                                                                                               
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  
                                                                                                           ======= ========= ====================                      ======= ======= ====================
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  
                                                                                                           ======= ========= ====================                      ======= ======= ====================
                                                                                                                                                                                        
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
                                                                                             ======= ======= ====================                      ======= ======= ====================                      ======= ======= ====================                      ======= ======= ====================
                                                                                                                                                                                                                                                                            
                                                                                                                                                                                                                                                                            
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  
                                                                 ======= ======= ====================                      ======= ======= ====================                      ======= ======= ====================                      ====== ======= ====================
                                                                                                                                                                                                                                                
                                                                                                                                                                                                                                                
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  
                                                                 ======= ======= ====================                      ======= ======= ====================                      ======= ======= ====================                      ====== ======= ====================
     
(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


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