CubeSmart, Extra Space Storage, National Storage Affiliates Trust, and Public Storage have all released their financial statements for Q4 2024. Below are statements from each CEO and key highlights, as well as links to the full reports and webcasts.
CubeSmart (NYSE: CUBE)
“Operating trends in the quarter were in line with our expectations given the volatile self-storage environment. Looking forward to 2025, we are optimistic that we have reached an inflection point in the trend of decelerating growth rates, although we remain cautious given the macro uncertainty...
...Our expectation is that self-storage fundamentals in 2025 will be consistent with the last two years as there is no obvious catalyst for a sharp acceleration. Self-storage remains a great business long-term, and we are well-positioned to create value through the continued evolution of our operating platform, our creative avenues for external growth, and our strong liquidity position.”
- Christopher P. Marr, President and CEO
Key Q4 2024 Highlights:
- Reported diluted earnings per share attributable to the Company’s common shareholders of $0.45.
- Reported funds from operations, as adjusted, per diluted share of $0.68.
- Same-store (598 stores) net operating income decreased 3.7% year over year, resulting from a 1.6% decrease in revenues and a 4.7% increase in operating expenses.
- Same-store occupancy averaged 89.6% during the quarter, ending at 89.3%.
- Closed on the acquisition of an 85% interest in consolidated joint ventures that collectively own 14 stores for $157.3 million.
- Closed on the acquisition of two stores totaling $22.0 million.
- Increased the quarterly dividend 2.0% to an annualized rate of $2.08 per common share from the previous annualized rate of $2.04 per common share.
- Added 29 stores to our third-party management platform, bringing our total third-party managed store count to 902.
Extra Space Storage Inc. (NYSE: EXR)
"While we are still experiencing a headwind from lower new customer rates, we are seeing an improvement on a year-over-year basis, a trend that has continued into the first quarter. The net effect of occupancy growth left the headwind from lower rates, resulting in a same-store revenue decrease of 0.4% in the quarter, which was in line with our expectations.
Expenses exceeded our expectations, driven by higher than estimated property taxes resulting in same-store NOI of negative 3.5%. Revenues for the LSI same-store pool finished the year slightly above the midpoint of our guidance and like the Extra Space same-store pool, benefited from strong occupancy growth, partially offset by lower rates...
...As previously announced, we have concluded our dual brand test [with previously acquired Life Storage] and have moved all of our stores to the Extra Space brand. We are starting to see the positive and still developing benefits of this move, including savings in marketing and increased rental activity."
- Joe Margolis, CEO
Key Q4 2024 Highlights:
- Reported core FFO of $2.03 per share for Q4 2024, slightly ahead of internal expectations.
- Maintained near-record occupancy levels, indicating strong demand and operational efficiency.
- Successfully integrated Life Storage stores into its brand, resulting in marketing savings and increased rental activity.
- Invested $950 million in joint ventures and other investments in 2024, with a significant portion occurring in Q4, showcasing robust external growth strategies.
- Adding 238 net new managed stores in 2024, marking its best growth year in this segment.
National Storage Affiliates Trust (NYSE: NSA)
“Same store results were in line with our expectations for the fourth quarter as we were pleased to finish the heavy lifting from the internalization of our PRO structure. Core FFO per share came in at the high end of our expectations due primarily to lower-than-expected general and administrative expenses, better-than-expected contributions from our unconsolidated real estate ventures, and favorable property and tenant insurance outcomes...
...We were focused throughout 2024 positioning NSA to realize outsized benefits as market fundamentals improve. While there is uncertainty in the macro environment for 2025, we have no near term debt maturities, and we remain focused on executing operationally and realizing the expected accretion that we’ve previously highlighted from the internalization of our PRO structure.”
- David Cramer, President and CEO
Key Q4 2024 Highlights:
- Reported net income of $26.1 million for the fourth quarter of 2024, a decrease of 75.8% compared to the fourth quarter of 2023. Reported diluted earnings per share of $0.15 for the fourth quarter of 2024 compared to $0.72 for the fourth quarter of 2023.
- Reported core funds from operations ("Core FFO") of $81.2 million, or $0.60 per share for the fourth quarter of 2024, a decrease of 11.8% per share compared to the fourth quarter of 2023.
- Reported a decrease in same store net operating income ("NOI") of 7.5% for the fourth quarter of 2024 compared to the same period in 2023, driven by a 4.3% decrease in same store total revenues and a 4.7% increase in same store property operating expenses.
- Reported same store period-end occupancy of 84.4% as of December 31, 2024, a decrease of 140 basis points compared to December 31, 2023.
- Acquired four wholly-owned self storage properties for approximately $39.6 million during the fourth quarter of 2024.
- Entered into a new sales agreement for an At the Market ("ATM") program authorizing, but not obligating, the sale of up to $400.0 million of NSA's common shares of beneficial interest ("common shares") from time to time.
Public Storage (NYSE: PSA)
“Our fourth quarter performance reflected broad operational stabilization across the portfolio. In the new year, we are inspired by the strength of the Los Angeles community in response to the fires and are fully supporting impacted customers and team members. Due to the associated pricing restrictions, our guidance anticipates an approximate $0.23 per share impact to Core FFO in 2025 while portfolio operations outside of Los Angeles continue to improve...
...Our completed Property of Tomorrow enhancement program, industry-leading transformation initiatives, sizeable and high-growth non-same store pool, and growth-oriented balance sheet have us well positioned for improving fundamentals and increased transaction market activity moving forward.”
- Joe Russell, President and CEO
Key Q4 2024 Highlights:
- Reported net income allocable to common shareholders of $3.21 per diluted share.
- Reported core FFO allocable to common shareholders of $4.21 per diluted share.
- Achieved 79.2% Same Store direct net operating income margin.
- Acquired 17 self-storage facilities with 1.3 million net rentable square feet for $221.2 million. Subsequent to December 31, 2024, acquired or under contract to acquire nine self-storage facilities with 0.7 million net rentable square feet, for $140.7 million.
- Opened three newly developed facilities and completed various expansion projects, which together added 0.4 million net rentable square feet at a cost of $80.9 million. At December 31, 2024, had various facilities in development and expansion expected to add 4.0 million net rentable square feet at an estimated cost of $741.6 million.
- Issued 184,390 of common shares on the open market through its “at the market” offering program for aggregate net proceeds of approximately $60.3 million in cash.