National Storage Affiliates Trust Reports Q1 2026 Financial Results with Revenue Decline but Net Income Increase

National Storage Affiliates Trust (NSA) reported its financial results for the first quarter of 2026, revealing a total revenue of $185.4 million, a decrease of 1.6% from $188.4 million in the same period of 2025. The decline in revenue was primarily attributed to the sale of 16 self-storage properties over the past year, which offset a slight increase in average occupancy rates from 83.4% to 83.7%. Rental revenue specifically fell to $168.2 million, down from $169.5 million, while other property-related revenue also decreased to $5.6 million from $6.7 million.

Despite the drop in revenue, NSA's net income increased to $27.7 million, compared to $19.5 million in the prior year, marking a 41.2% rise. This improvement was driven by a reduction in total operating expenses, which fell to $114.5 million from $120.8 million, largely due to lower property operating expenses and decreased depreciation costs. The company reported earnings per share of $0.16, up from $0.10 in the previous year.

In terms of strategic developments, NSA completed the acquisition of one self-storage property for approximately $10.4 million during the quarter and sold three properties for net proceeds of about $20.6 million, resulting in a gain of $6.5 million. As of March 31, 2026, the company managed a portfolio of 799 self-storage properties across 33 states and Puerto Rico, totaling approximately 51.1 million rentable square feet. Additionally, NSA is in the process of merging with Public Storage, with the merger expected to close in the third quarter of 2026, pending shareholder approval.

Operationally, NSA's same-store portfolio, which includes properties owned since the beginning of the earliest year presented, reported a rental revenue increase of 0.9% year-over-year. The company also managed to reduce property operating expenses by 3.9% in its same-store portfolio, indicating improved operational efficiency. As of the end of the quarter, NSA had $27.6 million in cash and cash equivalents, reflecting a solid liquidity position.

Looking ahead, NSA anticipates continued growth through strategic acquisitions and the successful completion of its merger with Public Storage. The company remains focused on enhancing its operational performance and expanding its market presence, despite the challenges posed by market conditions and the ongoing integration process.