REIT Q3 2024 Recaps: CEO Statements & Highlights

CubeSmart, Extra Space Storage, National Storage Affiliates Trust, and Public Storage have all released their financial statements for Q3 2024. Below are statements from each CEO and key highlights, as well as links to the full reports and webcasts.

CubeSmart (NYSE: CUBE)

“The third quarter saw a continuation of trends as we remain in a competitive environment for new customer rental rates while the existing customer remains very resilient. This month, we celebrated our 20th anniversary as a public company. While it’s exciting to celebrate our accomplishments over the past two decades, we remain keenly focused on our culture of innovation and enhancing our position as an industry leader.”

- Christopher P. Marr, President and CEO

Key Q3 2024 Highlights:

• Reported diluted earnings per share (“EPS”) attributable to the Company’s common shareholders of $0.44.
• Reported funds from operations (“FFO”), as adjusted, per diluted share of $0.67.
• Same-store (598 stores) net operating income (“NOI”) decreased 3.1% year over year, resulting from a 0.8% decrease in revenues and a 5.3% increase in operating expenses.
• Same-store occupancy averaged 90.8% during the quarter, ending at 90.2%.
• Added 24 stores to our third-party management platform, bringing our total third-party managed store count to 893. 

Extra Space Storage Inc. (NYSE: EXR)

""We continue to maintain strong occupancy during a time of year which is typically marked by occupancy declines. This occupancy both optimizes performance in the current market and positions the portfolio for future revenue growth."

- Joe Margolis, CEO

Key Q3 2024 Highlights:

• Achieved net income attributable to common stockholders of $0.91 per diluted share, representing a 5.2% decrease compared to the same period in the prior year primarily due to a $51.8 million loss related to the impairment of the Life Storage Inc. ("Life Storage" or "LSI") trade name based on the Company's decision to operate under a single brand.
• Achieved funds from operations attributable to common stockholders and unit holders of $1.75 per diluted share. FFO, excluding adjustments, was $2.07 per diluted share, representing a 2.5% increase compared to the same period in the prior year.
• Same-store revenue decreased by (0.3)% and same-store net operating income ("NOI") decreased by (1.0)% compared to the same period in the prior year.
• Reported ending same-store occupancy of 94.3% as of September 30, 2024, compared to 93.7% as of September 30, 2023.
• Acquired 10 operating stores and one store at completion of construction for a total cost of approximately $163.9 million.
• In conjunction with joint venture partners, acquired five properties and completed two developments for a total cost of approximately $114.6 million, of which Extra Space invested $30.7 million.
• Recognized a gain of $13.7 million upon the dissolution of two joint ventures which owned 17 properties.
• Originated $158.4 million in mortgage and mezzanine bridge loans and sold $179.0 million mortgage bridge loans.
• Added 63 stores (38 stores net) to the third-party management platform. As of September 30, 2024, managing 1,461 stores for third parties and 460 stores in unconsolidated joint ventures, for a total of 1,921 managed stores.
• Moody's Ratings revised the company's credit outlook to positive from stable.
• Paid a quarterly dividend of $1.62 per share.

National Storage Affiliates Trust (NYSE: NSA)

“Results for the quarter were in line with our expectations, as our team did a good job navigating the competitive operating environment while working on the PRO transition. On a positive note, the transaction environment is improving as we are seeing more deals come to market, with sellers becoming more realistic about pricing. As a result, we acquired 18 properties totaling almost $150 million through our 2023 Joint Venture during the quarter.

Further, we opportunistically accessed the debt private placement market by issuing $350 million of senior unsecured notes with a weighted average coupon of 5.6%. The combination of an improving acquisition environment, more attractive cost of capital and the benefits from the internalization of the PRO structure, make us excited about what the future holds for NSA."

- David Cramer, President and CEO

Key Q3 2024 Highlights:

• Reported net income of $29.8 million for the third quarter of 2024, a decrease of 30.9% compared to the third quarter of 2023. Reported diluted earnings per share of $0.18 for the third quarter of 2024 compared to $0.26 for the third quarter of 2023.
• Reported core funds from operations of $83.9 million, or $0.62 per share and unit for the third quarter of 2024, a decrease of 7.5% per share compared to the third quarter of 2023.
• Reported a decrease in same store net operating income of 5.3% for the third quarter of 2024 compared to the same period in 2023, driven by a 3.5% decrease in same store total revenues and an increase of 1.2% in same store property operating expenses.
• Reported same store period-end occupancy of 85.6% as of September 30, 2024, a decrease of 270 basis points compared to September 30, 2023.
• One of the company's unconsolidated real estate ventures acquired 18 self storage properties for approximately $147.9 million, in two separate transactions. The venture financed the acquisitions with capital contributions from the venture members, of which NSA contributed approximately $37.0 million.
• On September 5, 2024, NSA issued $350.0 million of senior unsecured notes with a weighted average interest rate of 5.6% and a weighted average maturity of 7.6 years in a private placement with institutional investors.
• As previously announced, effective July 1, 2024, the company completed the internalization of its participating regional operator (PRO) structure. As a result, the Company purchased the PROs' management contracts, and in some cases, their brand names, related intellectual property and certain rights related to the PROs' tenant insurance programs. As of the Closing Date, the Company will no longer pay supervisory and administrative fees or reimbursements under the previous agreements with the PROs. The Company continues to transition the majority of operations in a phased approach, which has begun and is expected to continue over the 12 month period following the Closing Date, and the Company has executed new asset management and property management agreements with a number of the PROs for all or a part of this transitionary period at newly negotiated management fees. In connection with the internalization, on July 1, 2024, 11,906,167 subordinated performance units and DownREIT subordinated performance units were converted into 17,984,787 OP units and DownREIT OP units.
• READ MORE FROM THE PROS

Public Storage (NYSE: PSA)

“Performance is stabilizing across our portfolio. With formidable competitive advantages and our distinctive operating model transformation ahead of schedule, we are very well-positioned for growth in an environment of improving fundamentals and increasing transaction market activity.”

- Joe Russell, President and CEO

Key Q3 2024 Highlights:

• Reported net income allocable to common shareholders of $2.16 per diluted share.
• Reported core FFO allocable to common shareholders (“Core FFO”) of $4.20 per diluted share.
• Achieved 78.4% Same Store (as defined below) direct net operating income margin.
• Acquired three self-storage facilities with 0.2 million net rentable square feet for $24.3 million. Subsequent to September 30, 2024, we acquired or were under contract to acquire 14 self-storage facilities with 1.2 million net rentable square feet, for $181.2 million.
• Opened one newly developed facility and completed various expansion projects, which together added 0.5 million net rentable square feet at a cost of $142.6 million. At September 30, 2024, we had various facilities in development and expansion expected to add 4.0 million net rentable square feet at an estimated cost of $712.4 million.