National Storage REIT (NSR) FY24 Update

National Storage REIT (ASX: $NSR) has reaffirmed its FY24 underlying earnings per security (EPS) guidance to be a minimum of 11.3cps. The unaudited 1H FY24 underlying EPS of 5.6cps reflects a 1.8% increase over 2H FY23. The group's REVPAM as of December 2023 increased by 0.6% during 1H FY24, with discreet Q2 FY24 REVPAM showing a 1.3% increase. The weighted average primary cap rate remained steady at 5.90%, and NTA is expected to remain unchanged at $2.48. NSR completed 5 developments and expansions, along with 13 acquisitions totaling $124 million. The gearing as of December 2023 was approximately 23%.

Executive Commentary

The reaffirmed FY24 underlying earnings guidance and the Group REVPAM growth in Q2 FY24 demonstrates the strength of the business through various economic cycles. Q2 FY24 REVPAM increased 1.3% leading to positive REVPAM growth over the 12 months to December 2023. This is reflective of robustness of the Australian self-storage industry in challenging operating conditions.

Summary

National Storage REIT (ASX: $NSR) has reaffirmed its FY24 underlying earnings guidance, reflecting a strong operating performance in 1H FY24. The company reported unaudited underlying earnings of $76.0 million, or EPS of 5.6cps, with momentum from Q2 FY24 REVPAM growth of 1.3% providing an improved growth trajectory for the remainder of FY24. The portfolio valuation is expected to remain stable, and the company's estimated gearing as of December 2023 is approximately 23%. NSR completed acquisitions and developments during the half, and the outlook for both acquisitions and development activity is positive. The company's balance sheet is well positioned to pursue opportunities as they arise.