REIT Reports Q1 2024: Key Highlights, CEO Statements, & Webcasts

Posted by Brad Hadfield on May 2, 2024 9:34:30 AM

CubeSmart, Extra Space Storage, National Storage Affiliates Trust, and Public Storage have all released their financial statements for Q1 2024. While the REITs' CEOs and other executives in attendance noted some challenges in the sector, the overall outlook was positive moving into Q2 and beyond. Below are statements from each CEO and key highlights, as well as links to the full reports and webcasts.


CubeSmart (NYSE: CUBE)


Our first quarter performance metrics were in line with our expectations. As we move through April, trends thus far have our negative rate and occupancy gaps to last year narrowing from their first quarter levels...As we expected entering the year, the environment over the next three months will be highly impactful on how the entire year plays out. The macroeconomic data over the last few months has certainly been very volatile...


Demand activity during the quarter varied by market... Our urban markets continued their positive trends, with portfolio-leading results during the first quarter. As we turn our attention to the summer rental season, our team is energized and our marketing campaigns are ramping up, positioning us to attract customers across all channels... We remain confident in the long-term fundamental drivers of our business continuing to generate solid growth."


- Christopher P. Marr, President and CEO


Key Q1 2024 Highlights:
  • Reported diluted earnings per share attributable to common shareholders of $0.42.
  • Reported funds from operations, as adjusted, per diluted share of $0.64.
  • Same-store (598 stores) net operating income decreased 1.9% year over year, driven by a 5.0% increase in operating expenses.
  • Averaged same-store occupancy of 90.2% during the quarter and ended the quarter at 90.4%.
  • Closed on the acquisition of two stores totaling $20.2 million.
  • Added 68 stores to its third-party management platform during the quarter, bringing the total third-party managed store count to 860.



Extra Space Storage Inc. (NYSE: EXR)


"Our revenue strategy has allowed us to both improve occupancy and average move-in rate in the quarter with the latter growing sequentially by approximately 8% from a seasonal low in January...


We achieved positive year-over-year occupancy growth in the Extra Space and Life Storage same-store pools. We have also continued to realize G&A savings and to expand our bridge lending and third party management programs...


Rental activity has been strong year to date and vacates remain muted, which positions us well to maximize revenue during the 2024 leasing season."


- Joe Margolis, CEO


Key Q1 2024 Highlights:
  • Achieved net income attributable to common stockholders of $1.01 per diluted share, representing a 30.8% decrease compared to the same period in the prior year primarily due to non-cash interest and amortization of intangibles related to the Company's 2023 merger with Life Storage.
  • Achieved funds from operations attributable to common stockholders and unit holders of $1.87 per diluted share. FFO, excluding adjustments, was $1.96 per diluted share, representing a 3.0% decrease compared to the same period in the prior year.
  • Increased same-store revenue by 1.0% and same-store net operating income decreased by 0.5% compared to the same period in the prior year.
  • Reported ending same-store occupancy of 93.2% as of March 31, 2024, compared to 92.7% as of March 31, 2023.
  • Acquired five operating stores and one store at completion of construction for a total cost of approximately $35.1 million.
  • Completed one development with a joint venture partner for a total cost of approximately $20.4 million (total investment of $19.4 million).
  • Originated $164.3 million in mortgage and mezzanine bridge loans.
  • Added 97 stores (72 stores net) to its third-party management platform. As of March 31, 2024, EXR managed 1,409 stores for third parties and 472 stores in unconsolidated joint ventures, for a total of 1,881 managed stores.
  • Paid a quarterly dividend of $1.62 per share.



National Storage Affiliates Trust (NYSE: NSA)


"Our team performed well in what remains a challenging operating environment characterized by continued pressure on street rates and significant competition to attract new customers. Rental volume and occupancy are increasing from the seasonal trough in February, but the next few months will be key determinants of full-year performance...


We completed a handful of strategic milestones during the first quarter, which places NSA in a position to thrive as business fundamentals and capital markets improve. Were excited about the medium- and long-term outlook for both NSA and the self-storage sector in general."


-  David Cramer, President & CEO


Key Q1 2024 Highlights:
  • Achieved net income of $95.1 million, an increase of 135.4% compared to the first quarter of 2023.
  • Reported diluted earnings per share of $0.65 compared to $0.24 for the first quarter of 2023.
  • Reported core funds from operations of $72.4 million, or $0.60 per share for the first quarter of 2024, a decrease of 9.1% per share compared to the first quarter of 2023.
  • Reported a decrease in same store net operating income of 3.7% for the first quarter of 2024 compared to the same period in 2023, driven by a 1.5% decrease in same store total revenues and an increase of 4.5% in same store property operating expenses.
  • Reported same store period-end occupancy of 85.9%, a decrease of 350 basis points compared to the same quarter in 2023.
  • Repurchased 5,491,925 of the Company's common shares for approximately $203.5 million under the share repurchase program.
  • Entered into a new joint venture agreement between a subsidiary of NSA and a subsidiary of Heitman Capital Management LLC (NSA as 25% owner, investor as 75% owner). NSA contributed 56 wholly-owned properties for approximately $346.5 million.
  • Completed the sale of 71 wholly-owned self storage properties for approximately $540.0 million. 32 of the properties were sold in December 2023, while the remaining 39 properties were sold during the first quarter of 2024.
  • Repaid $130.0 million of Term Loan Tranche B., leaving NSA with no variable rate debt exposure other than the revolving line of credit.



Public Storage (NYSE: PSA)


“With first quarter performance in-line with our expectations, the Public Storage team is encouraged as we approach the busy season. Our view is supported by positive trends in customer behavior and waning deliveries of competitive new supply across the country...


The Public Storage team continues to deploy the powerful combination and competitive advantages tied to our brand, platform, and balance sheet. As a result, we are driving stabilizing trends in our portfolio, including re-accelerating revenue growth month-over-month in an increasing number of our markets.”


- Joe Russell, President and CEO


Key Q1 2024 Highlights:
  • Reported net income allocable to common shareholders of $2.60 per diluted share.
  • Reported core FFO allocable to common shareholders of $4.03 per diluted share.
  • Achieved 77.2% Same Store direct net operating income margin.
  • Opened one newly developed facility and completed various expansion projects, which together added 0.3 million net rentable square feet at a cost of $35.0 million. At March 31, 2024, had various facilities in development and expansion expected to add 3.7 million net rentable square feet at an estimated cost of $783.0 million.
  • Subsequent to March 31, 2024, acquired or under contract to acquire four self-storage facilities with 0.3 million net rentable square feet, for $34.6 million.
  • On April 11, 2024, issued €150 million of senior notes to institutional investors, bearing interest at a fixed rate of 4.080% and maturing on April 11, 2039.
  • On April 16, 2024, 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.