[UPDATED] REIT Q2 2024 Results: CEO Statements, Highlights & Webcasts

Posted by Modern Storage Media on Aug 6, 2024 2:45:00 PM

Story has been updated [Aug 6, 2024] to include NSA reporting.

 

CubeSmart, Extra Space Storage, National Storage Affiliates Trust, and Public Storage have all released their financial statements for Q2 2024. While the REITs' CEOs and other executives in attendance noted some challenges in the sector, the overall outlook was optimistic. Below are statements from each CEO and key highlights, as well as links to the full reports and webcasts.

 

 

CubeSmart (NYSE: CUBE)

 

“As expected, we experienced a marginally stronger seasonal uplift in demand during the second quarter and a customer base who continues to be resilient in an uncertain economy.

 

Our data-driven approach to operations continues to allow us to optimize our performance in the face of changing macro conditions.”

 

- Christopher P. Marr, President and CEO

 

Key Q2 2024 Highlights:
  • Reported diluted earnings per share attributable to the Company’s common shareholders of $0.41.
  • Reported funds from operations, as adjusted, per diluted share of $0.64.
  • Same-store (598 stores) net operating income decreased 1.2% year over year, resulting from 0.3% revenue growth and a 4.2% increase in operating expenses.
  • Same-store occupancy averaged 91.5% during the quarter, ending at 91.9%.
  • Opened for operation two development projects for a total cost of $61.8 million.
  • Added 39 stores to our third-party management platform, bringing the total third-party managed store count to 879.

 

 

Extra Space Storage Inc. (NYSE: EXR)

 

"We had a great quarter, exceeding our internal FFO per share projections due to outperformance in multiple areas of our business, allowing us to increase our 2024 FFO outlook. We experienced steady improvement in Extra Space same-store occupancy for the second quarter and continue to see occupancy gains in July.

 

Our second quarter occupancy represents 110 basis point sequential gain over our first quarter occupancy and a 30 basis point improvement year-over-year. In the same period, the average move-in rate improved by approximately 12%. The combination of increased move-in rate and occupancy gain contributed to a 0.6% increase in Extra Space same-store revenue year-over-year."

 

- Joe Margolis, CEO

 

Key Q2 2024 Highlights:
  • Achieved net income attributable to common stockholders of $0.88 per diluted share, representing a 41.3% decrease compared to the same period in the prior year primarily due to a $54.7 million loss related to the write down of assets held for sale as well as non-cash interest, amortization of intangibles, and additional depreciation related to the Company's 2023 merger (the "Life Storage Merger") with Life Storage, Inc. ("Life Storage" or "LSI").
  • Achieved funds from operations attributable to common stockholders and unit holders of $1.98 per diluted share. FFO, excluding adjustments, was $2.06 per diluted share, which was flat compared to the same period in the prior year.
  • Increased same-store revenue by 0.6% and same-store net operating income decreased by (1.1)% compared to the same period in the prior year.
  • Reported ending same-store occupancy of 94.3% as of June 30, 2024, compared to 94.0% as of June 30, 2023.
  • Acquired two operating stores and one store at completion of construction ("Certificate of Occupancy stores" or "C of O stores") for a total cost of approximately $27.6 million.
  • In conjunction with a joint venture partners, completed two developments for a total cost of approximately $28.7 million, of which the EXR invested $27.7 million.
  • Originated $433.2 million in mortgage and mezzanine bridge loans and sold $11.1 million mortgage bridge loans.
  • Added 77 stores (14 stores net) to EXR's third-party management platform. As of June 30, 2024, managing 1,423 stores for third parties and 472 stores in unconsolidated joint ventures, for a total of 1,895 managed stores.
  • Paid a quarterly dividend of $1.62 per share.

 

 

National Storage Affiliates Trust (NYSE: NSA)

 

“We are focused on the internalization of the PRO structure that we announced in early June and closed on July 1st. We’ve made significant progress on our strategic initiatives over the past few quarters, including the sale of non-core assets, repayment of floating rate debt, formation of two new joint ventures, repurchase of common shares, and now the internalization of the PRO structure, all of which position NSA for growth going forward.

 

I'd like to acknowledge and thank our PROs and the NSA team members for the significant time and effort that they have devoted to these initiatives as well as our People, Process and Platform projects, which we expect will significantly benefit our results going forward.”

 

- David Cramer, President and CEO

 

Key Q2 2024 Highlights:
  • Reported net income of $32.3 million for the second quarter of 2024, a decrease of 29.0% compared to the second quarter of 2023. Reported diluted earnings per share of $0.16 for the second quarter of 2024 compared to $0.28 for the second quarter of 2023.
  • Reported core funds from operations of $71.2 million, or $0.62 per share for the second quarter of 2024, a decrease of 8.8% per share compared to the second quarter of 2023.
  • Reported a decrease in same store net operating income of 5.6% for the second quarter of 2024 compared to the same period in 2023, driven by a 2.8% decrease in same store total revenues and an increase of 4.8% in same store property operating expenses.
  • Reported same store period-end occupancy of 87.0% as of June 30, 2024, a decrease of 280 basis points compared to June 30, 2023.
  • Acquired three wholly-owned self storage properties for approximately $25.2 million during the second quarter of 2024.
  • Repurchased 1,908,397 of common shares for approximately $71.6 million under the previously announced share repurchase program.

 

 

Public Storage (NYSE: PSA)

 

“The Public Storage team is executing well on our strategic initiatives, including enhancing our operating efficiencies, achieving industry-leading margins, and delivering record property development volumes."

 

“Operating performance met or exceeded our expectations during the quarter except for customer move-in rents, which were impacted by industry-wide competition. We are adjusting our outlook for 2024 to reflect market move-in rent dynamics while remaining very encouraged by signs of stabilization across our portfolio. Our recent repurchase of $200 million of Public Storage common shares reflects our strong confidence in the company’s near, medium, and long-term outlooks.”

 

- Joe Russell, President and CEO

 

Key Q2 2024 Highlights:
  • Reported net income allocable to common shareholders of $2.66 per diluted share.
  • Reported core FFO allocable to common shareholders of $4.23 per diluted share.
  • Achieved 79.3% Same Store (as defined below) direct net operating income margin.
  • Repurchased $200 million of our common shares under its previously announced share repurchase program on the open market at an average price of $275 per share.
  • Acquired two self-storage facilities with 0.1 million net rentable square feet for $22.0 million. Subsequent to June 30, 2024, acquired or were under contract to acquire three self-storage facilities with 0.2 million net rentable square feet, for $24.2 million.
  • Opened two newly developed facilities and completed various expansion projects, which together added 0.4 million net rentable square feet at a cost of $84.9 million. At June 30, 2024, PSA had various facilities in development and expansion expected to add 3.8 million net rentable square feet at an estimated cost of $738.7 million.
  • Issued €150 million of senior notes to institutional investors, bearing interest at a fixed rate of 4.080% and maturing on April 11, 2039.
  • Completed a public offering of $1.0 billion aggregate principal amount of senior notes, including $700 million aggregate principal amount of floating rate senior notes bearing interest at a rate of Compounded SOFR + 0.70% (reset quarterly) maturing on April 16, 2027 and an additional $300 million aggregate principal amount of our senior notes bearing interest at a fixed annual rate of 5.350% maturing on August 1, 2053.