Page | |
Earnings Release | |
Consolidated Statements of Operations | |
Consolidated Balance Sheets | |
Schedule 1 - Funds From Operations and Core Funds From Operations | |
Schedule 2 - Other Non-GAAP Financial Measurements | |
Schedule 3 - Self Storage Property Portfolio | |
Schedule 4 - Debt and Equity Capitalization | |
Schedule 5 - Same Store Performance Summary | |
Schedule 6 - Reconciliation of Same Store Data and Net Operating Income to Income from Operations | |
Schedule 7 - Selected Financial Information | |
Glossary | |
• | Net income was $7.9 million for the third quarter of 2016, an increase of $5.8 million compared to $2.1 million for the third quarter of 2015. |
• | Core funds from operations ("Core FFO") was $18.2 million, or $0.29 per share, for the third quarter of 2016, an increase of 20.8% per share compared to $11.3 million, or $0.24 per share, for the third quarter of 2015. |
• | Same store total revenues were $33.0 million for the third quarter of 2016, an increase of 7.2% compared to $30.7 million for the third quarter of 2015. |
• | Same store NOI was $22.5 million for the third quarter of 2016, an increase of 9.5% compared to $20.6 million for the third quarter of 2015. |
• | Acquired 34 self storage properties during the third quarter of 2016 for approximately $206 million. |
• | Completed a public offering of 12,046,250 common shares of beneficial interest ("common shares") at a public offering price of $20.75 per share resulting in net proceeds to the Company of approximately $237 million. |
($ in thousands, except per share and unit data) | Three Months Ended September 30, | |||||||||
2016 | 2015 | Growth | ||||||||
Net income | $ | 7,944 | $ | 2,109 | 276.7 | % | ||||
Funds From Operations ("FFO")(1) | $ | 16,510 | $ | 8,459 | 95.2 | % | ||||
Add back acquisition costs | 1,737 | 2,874 | (39.6 | )% | ||||||
Core FFO(1) | $ | 18,247 | $ | 11,333 | 61.0 | % | ||||
Earnings (loss) per share - basic | $ | — | $ | 0.19 | — | |||||
Earnings (loss) per share - diluted | $ | — | $ | 0.03 | — | |||||
FFO per share and unit(1) | $ | 0.26 | $ | 0.18 | 44.4 | % | ||||
Core FFO per share and unit(1) | $ | 0.29 | $ | 0.24 | 20.8 | % | ||||
($ in thousands, except per square foot data) | Three Months Ended September 30, | |||||||||
2016 | 2015 | Growth | ||||||||
Total revenue | $ | 52,949 | $ | 35,678 | 48.4 | % | ||||
Property operating expenses | 17,330 | 12,000 | 44.4 | % | ||||||
Net Operating Income (NOI) | $ | 35,619 | $ | 23,678 | 50.4 | % | ||||
Average Occupancy | 91.0 | % | 89.9 | % | 1.1 | % | ||||
Average annualized rental revenue per occupied square foot | $ | 11.24 | $ | 10.75 | 4.6 | % |
($ in thousands, except per square foot data) | Three Months Ended September 30, | |||||||||
2016 | 2015 | Growth | ||||||||
Total revenue | $ | 32,964 | $ | 30,738 | 7.2 | % | ||||
Property operating expenses | 10,432 | 10,164 | 2.6 | % | ||||||
Net Operating Income (NOI) | $ | 22,532 | $ | 20,574 | 9.5 | % | ||||
NOI Margin | 68.4 | % | 66.9 | % | 1.5 | % | ||||
Average Occupancy | 91.4 | % | 90.2 | % | 1.2 | % | ||||
Average annualized rental revenue per occupied square foot | $ | 11.39 | $ | 10.74 | 6.1 | % |
Ranges for Full Year 2016 | ||||
Low | High | |||
Acquisitions, in millions | $750.0 | $825.0 | ||
Core FFO per share(1) | $1.08 | $1.10 |
(1) The following table provides a reconciliation of the range of estimated earnings (loss) per share - diluted to estimated Core FFO per share and unit: | ||||||||
Ranges for Full Year 2016 | ||||||||
Low | High | |||||||
Earnings (loss) per share - diluted | $ | 0.23 | $ | 0.31 | ||||
Impact of the difference in weighted average number of shares and GAAP accounting for noncontrolling interests, two-class method and treasury stock method | 0.20 | 0.11 | ||||||
Add real estate depreciation and amortization | 0.91 | 0.92 | ||||||
FFO attributable to subordinated performance unitholders | (0.37 | ) | (0.38 | ) | ||||
Add acquisition costs, organizational and offering expenses, and loss on early extinguishment of debt | 0.11 | 0.14 | ||||||
Core FFO per share and unit | $ | 1.08 | $ | 1.10 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
REVENUE | |||||||||||||||
Rental revenue | $ | 51,263 | $ | 34,600 | $ | 135,548 | $ | 92,650 | |||||||
Other property-related revenue | 1,686 | 1,078 | 4,334 | 2,969 | |||||||||||
Total revenue | 52,949 | 35,678 | 139,882 | 95,619 | |||||||||||
OPERATING EXPENSES | |||||||||||||||
Property operating expenses | 17,330 | 12,000 | 46,064 | 32,668 | |||||||||||
General and administrative expenses | 5,259 | 4,056 | 14,431 | 11,856 | |||||||||||
Depreciation and amortization | 14,319 | 10,341 | 38,299 | 30,192 | |||||||||||
Total operating expenses | 36,908 | 26,397 | 98,794 | 74,716 | |||||||||||
Income from operations | 16,041 | 9,281 | 41,088 | 20,903 | |||||||||||
OTHER INCOME (EXPENSE) | |||||||||||||||
Interest expense | (6,265 | ) | (4,246 | ) | (17,050 | ) | (16,052 | ) | |||||||
Loss on early extinguishment of debt | — | — | (136 | ) | (914 | ) | |||||||||
Acquisition costs | (1,737 | ) | (2,874 | ) | (4,733 | ) | (4,192 | ) | |||||||
Organizational and offering expenses | — | — | — | (58 | ) | ||||||||||
Non-operating expense | (95 | ) | (52 | ) | (378 | ) | (256 | ) | |||||||
Other income (expense) | (8,097 | ) | (7,172 | ) | (22,297 | ) | (21,472 | ) | |||||||
Net income (loss) | 7,944 | 2,109 | 18,791 | (569 | ) | ||||||||||
Net (income) loss attributable to noncontrolling interests | (7,955 | ) | 2,263 | (9,222 | ) | 8,405 | |||||||||
Net (loss) income attributable to National Storage Affiliates Trust | $ | (11 | ) | $ | 4,372 | $ | 9,569 | $ | 7,836 | ||||||
Earnings (loss) per share - basic | $ | — | $ | 0.19 | $ | 0.35 | $ | 0.61 | |||||||
Earnings (loss) per share - diluted | $ | — | $ | 0.03 | $ | 0.25 | $ | 0.06 | |||||||
Weighted average shares outstanding - basic | 35,080 | 23,000 | 27,084 | 12,924 | |||||||||||
Weighted average shares outstanding - diluted | 35,080 | 63,456 | 75,492 | 38,758 |
September 30, | December 31, | ||||||
2016 | 2015 | ||||||
ASSETS | |||||||
Real estate | |||||||
Self storage properties | $ | 1,619,014 | $ | 1,147,201 | |||
Less accumulated depreciation | (97,993 | ) | (68,100 | ) | |||
Self storage properties, net | 1,521,021 | 1,079,101 | |||||
Cash and cash equivalents | 11,474 | 6,665 | |||||
Restricted cash | 4,627 | 2,712 | |||||
Debt issuance costs, net | 2,911 | 1,923 | |||||
Other assets, net | 23,371 | 8,648 | |||||
Assets held for sale | 18,702 | — | |||||
Total assets | $ | 1,582,106 | $ | 1,099,049 | |||
LIABILITIES AND EQUITY | |||||||
Liabilities | |||||||
Debt financing | $ | 722,622 | $ | 567,795 | |||
Accounts payable and accrued liabilities | 29,593 | 9,694 | |||||
Deferred revenue | 7,844 | 5,513 | |||||
Total liabilities | 760,059 | 583,002 | |||||
Equity | |||||||
Common shares of beneficial interest, par value $0.01 per share. 250,000,000 shares authorized, 35,915,871 and 23,015,751 shares issued and outstanding at September 30, 2016 and December 31, 2015, respectively | 359 | 230 | |||||
Additional paid-in capital | 450,986 | 236,392 | |||||
Retained (deficit) earnings | (8,013 | ) | 11 | ||||
Accumulated other comprehensive loss | (184 | ) | — | ||||
Total shareholders' equity | 443,148 | 236,633 | |||||
Noncontrolling interests | 378,899 | 279,414 | |||||
Total equity | 822,047 | 516,047 | |||||
Total liabilities and equity | $ | 1,582,106 | $ | 1,099,049 |
Supplemental Schedule 1 | |||||||||||||||
Funds From Operations and Core Funds From Operations | |||||||||||||||
(in thousands, except per share and unit amounts) (unaudited) | |||||||||||||||
Reconciliation of Net Income (Loss) to FFO and Core FFO | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Net income (loss) | $ | 7,944 | $ | 2,109 | $ | 18,791 | $ | (569 | ) | ||||||
Add (subtract): | |||||||||||||||
Real estate depreciation and amortization | 14,117 | 10,248 | 37,831 | 29,943 | |||||||||||
FFO attributable to subordinated performance unitholders (1) | (5,551 | ) | (3,898 | ) | (16,044 | ) | (10,317 | ) | |||||||
FFO attributable to common shareholders, OP unitholders, and LTIP unitholders | 16,510 | 8,459 | 40,578 | 19,057 | |||||||||||
Add: | |||||||||||||||
Acquisition costs | 1,737 | 2,874 | 4,733 | 4,192 | |||||||||||
Organizational and offering expenses | — | — | — | 58 | |||||||||||
Loss on early extinguishment of debt | — | — | 136 | 914 | |||||||||||
Core FFO attributable to common shareholders, OP unitholders, and LTIP unitholders | $ | 18,247 | $ | 11,333 | $ | 45,447 | $ | 24,221 | |||||||
Weighted average shares and units outstanding - FFO and Core FFO:(2) | |||||||||||||||
Weighted average shares outstanding - basic | 35,080 | 23,000 | 27,084 | 12,924 | |||||||||||
Weighted average restricted common shares outstanding | 19 | 17 | 18 | 6 | |||||||||||
Weighted average OP units outstanding | 24,310 | 21,109 | 23,761 | 20,181 | |||||||||||
Weighted average DownREIT OP unit equivalents outstanding | 1,835 | 1,432 | 1,835 | 1,411 | |||||||||||
Weighted average LTIP units outstanding(3) | 2,556 | 2,243 | 2,523 | 1,273 | |||||||||||
Total weighted average shares and units outstanding - FFO and Core FFO | 63,800 | 47,801 | 55,221 | 35,795 | |||||||||||
FFO per share and unit | $ | 0.26 | $ | 0.18 | $ | 0.73 | $ | 0.53 | |||||||
Core FFO per share and unit | $ | 0.29 | $ | 0.24 | $ | 0.82 | $ | 0.68 | |||||||
(1) Amounts represent distributions declared for subordinated performance unitholders and DownREIT subordinated performance unitholders for the periods presented. | |||||||||||||||
(2) NSA combines OP units and DownREIT OP units with common shares because, after the applicable lock-out periods, OP units in the Company's operating partnership are redeemable for cash or, at NSA's option, exchangeable for common shares on a one-for-one basis and DownREIT OP units are also redeemable for cash or, at NSA's option, exchangeable for OP units in our operating partnership on a one-for-one basis, subject to certain adjustments in each case. Subordinated performance units, DownREIT subordinated performance units, and LTIP units may also, under certain circumstances, be convertible into or exchangeable for common shares (or other units that are convertible into or exchangeable for common shares). See footnote(4) for additional discussion of subordinated performance units, DownREIT subordinated performance units, and LTIP units in the calculation of FFO and Core FFO per share and unit. | |||||||||||||||
(3) LTIP units have been excluded from the calculations of weighted average shares and units outstanding prior to April 28, 2015 because such units did not participate in distributions prior to the Company’s initial public offering. |
Supplemental Schedule 1 (continued) | |||||||||||||||
Funds From Operations and Core Funds From Operations | |||||||||||||||
(in thousands, except per share and unit amounts) (unaudited) | |||||||||||||||
Reconciliation of Earnings (Loss) Per Share - Diluted to FFO and Core FFO Per Share and Unit | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Earnings (loss) per share - diluted | $ | — | $ | 0.03 | $ | 0.25 | $ | 0.06 | |||||||
Impact of the difference in weighted average number of shares(4) | — | 0.01 | 0.09 | — | |||||||||||
Impact of GAAP accounting for noncontrolling interests, two-class method and treasury stock method(5) | 0.13 | — | — | (0.08 | ) | ||||||||||
Add real estate depreciation and amortization | 0.22 | 0.22 | 0.68 | 0.84 | |||||||||||
FFO attributable to subordinated performance unitholders | (0.09 | ) | (0.08 | ) | (0.29 | ) | (0.29 | ) | |||||||
FFO per share and unit | 0.26 | 0.18 | 0.73 | 0.53 | |||||||||||
Add acquisition costs, organizational and offering expenses, and loss on early extinguishment of debt | 0.03 | 0.06 | 0.09 | 0.15 | |||||||||||
Core FFO per share and unit | $ | 0.29 | $ | 0.24 | $ | 0.82 | $ | 0.68 | |||||||
(4) Adjustment accounts for the difference between the weighted average number of shares used to calculate diluted earnings per share and the weighted average number of shares used to calculate FFO and Core FFO per share and unit. Diluted earnings per share is calculated using the two-class method for the company's restricted common shares, the treasury stock method for certain unvested LTIP units, and includes the assumption of a hypothetical conversion of subordinated performance units, DownREIT subordinated performance units and LTIP units into OP units, even though such units may only be convertible into OP units (i) after a lock-out period and (ii) upon certain events or conditions. For additional information about the conversion of subordinated performance units and DownREIT subordinated performance units into OP units, see Note 8 in Item 1 to the Company's most recent Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission. The computation of weighted average shares and units for FFO and Core FFO per share and unit includes all restricted common shares and LTIP units that participate in distributions and excludes all subordinated performance units and DownREIT subordinated performance units because their effect has been accounted for through the allocation of FFO to the related unitholders based on distributions declared. | |||||||||||||||
(5) Represents the effect of adjusting the numerator to consolidated net income (loss) prior to GAAP allocations for noncontrolling interests and the application of the two-class method and treasury stock method, as described in footnote (4). |
Supplemental Schedule 2 | |||||||||||||||
Other Non-GAAP Financial Measurements | |||||||||||||||
(dollars in thousands) (unaudited) | |||||||||||||||
Net Operating Income | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Net income (loss) | $ | 7,944 | $ | 2,109 | $ | 18,791 | $ | (569 | ) | ||||||
Add: | |||||||||||||||
General and administrative expenses | 5,259 | 4,056 | 14,431 | 11,856 | |||||||||||
Depreciation and amortization | 14,319 | 10,341 | 38,299 | 30,192 | |||||||||||
Interest expense | 6,265 | 4,246 | 17,050 | 16,052 | |||||||||||
Loss on early extinguishment of debt | — | — | 136 | 914 | |||||||||||
Acquisition costs | 1,737 | 2,874 | 4,733 | 4,192 | |||||||||||
Organizational and offering expenses | — | — | — | 58 | |||||||||||
Non-operating expense | 95 | 52 | 378 | 256 | |||||||||||
Net Operating Income | $ | 35,619 | $ | 23,678 | $ | 93,818 | $ | 62,951 |
EBITDA and Adjusted EBITDA | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Net income (loss) | $ | 7,944 | $ | 2,109 | $ | 18,791 | $ | (569 | ) | ||||||
Add: | |||||||||||||||
Depreciation and amortization | 14,319 | 10,341 | 38,299 | 30,192 | |||||||||||
Interest expense | 6,265 | 4,246 | 17,050 | 16,052 | |||||||||||
Loss on early extinguishment of debt | — | — | 136 | 914 | |||||||||||
EBITDA | 28,528 | 16,696 | 74,276 | 46,589 | |||||||||||
Add: | |||||||||||||||
Acquisition costs | 1,737 | 2,874 | 4,733 | 4,192 | |||||||||||
Organizational and offering expenses | — | — | — | 58 | |||||||||||
Equity-based compensation expense(1) | 685 | 654 | 1,913 | 2,375 | |||||||||||
Adjusted EBITDA | $ | 30,950 | $ | 20,224 | $ | 80,922 | $ | 53,214 | |||||||
(1) Equity-based compensation expense is a non-cash item that is included in general and administrative expenses in our consolidated statements of operations. |
Supplemental Schedule 3 | |||||||||||||||||||||||||||
Self Storage Property Portfolio | |||||||||||||||||||||||||||
(dollars in thousands) (unaudited) | |||||||||||||||||||||||||||
Total Portfolio | |||||||||||||||||||||||||||
Stores at Period End September 30, | Units at Period End September 30, | Rentable Square Feet at Period End September 30, | Occupancy at Period End September 30, | ||||||||||||||||||||||||
State | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | Growth | ||||||||||||||||||
California | 73 | 36 | 43,152 | 21,772 | 5,369,252 | 2,749,850 | 92.0 | % | 89.2 | % | 2.8 | % | |||||||||||||||
Oregon | 53 | 50 | 21,456 | 20,222 | 2,728,903 | 2,525,445 | 91.8 | % | 94.5 | % | (2.7 | )% | |||||||||||||||
Texas | 51 | 47 | 20,019 | 18,186 | 2,820,930 | 2,574,515 | 88.1 | % | 87.3 | % | 0.8 | % | |||||||||||||||
North Carolina | 30 | 28 | 13,438 | 12,559 | 1,655,191 | 1,558,948 | 89.3 | % | 86.7 | % | 2.6 | % | |||||||||||||||
Oklahoma | 30 | 26 | 14,007 | 12,310 | 1,902,990 | 1,649,137 | 86.7 | % | 87.9 | % | (1.2 | )% | |||||||||||||||
Georgia | 20 | 18 | 6,578 | 5,919 | 886,567 | 772,649 | 94.4 | % | 94.6 | % | (0.2 | )% | |||||||||||||||
Florida | 16 | 2 | 13,332 | 696 | 1,126,071 | 80,556 | 86.5 | % | 85.0 | % | 1.5 | % | |||||||||||||||
Arizona | 15 | 13 | 8,405 | 7,316 | 981,617 | 835,867 | 90.7 | % | 83.1 | % | 7.6 | % | |||||||||||||||
Washington | 14 | 14 | 4,788 | 4,825 | 601,840 | 611,150 | 90.6 | % | 92.9 | % | (2.3 | )% | |||||||||||||||
Louisiana | 10 | 5 | 4,443 | 2,192 | 614,183 | 298,710 | 88.6 | % | 85.5 | % | 3.1 | % | |||||||||||||||
Colorado | 9 | 8 | 4,131 | 3,740 | 503,746 | 453,166 | 95.0 | % | 94.3 | % | 0.7 | % | |||||||||||||||
New Hampshire | 9 | 4 | 3,669 | 1,771 | 444,225 | 211,100 | 92.9 | % | 91.2 | % | 1.7 | % | |||||||||||||||
Indiana | 6 | — | 3,164 | — | 462,366 | — | 83.6 | % | — | — | |||||||||||||||||
Nevada | 5 | 3 | 2,766 | 1,777 | 360,852 | 241,551 | 93.9 | % | 81.6 | % | 12.3 | % | |||||||||||||||
South Carolina | 4 | 3 | 1,210 | 888 | 147,530 | 105,540 | 91.3 | % | 96.8 | % | (5.5 | )% | |||||||||||||||
Other(1) | 7 | 3 | 3,166 | 783 | 441,057 | 113,962 | 85.4 | % | 94.6 | % | (9.2 | )% | |||||||||||||||
Total/Weighted Average | 352 | 260 | 167,724 | 114,956 | 21,047,320 | 14,782,146 | 90.1 | % | 89.5 | % | 0.6 | % |
2016 Acquisition Activity | |||||||||||||||||||||||||||
Acquisitions Closed During the Quarter Ended: | Summary of Consideration | ||||||||||||||||||||||||||
Stores | Units | Rentable Square Feet | Value of OP Equity | Liabilities Assumed(2) | Other Liabilities | Total Investment | |||||||||||||||||||||
Cash | |||||||||||||||||||||||||||
March 31, 2016 | 17 | 7,633 | 1,070,540 | $ | 63,300 | $ | 19,068 | $ | 5,861 | $ | 584 | $ | 88,813 | ||||||||||||||
June 30, 2016 | 25 | 19,022 | 1,906,703 | 61,263 | 80,986 | 55,767 | 1,212 | 199,228 | |||||||||||||||||||
September 30, 2016 | 34 | 18,425 | 2,267,573 | 199,890 | 4,841 | — | 896 | 205,627 | |||||||||||||||||||
Total 2016(3) | 76 | 45,080 | 5,244,816 | $ | 324,453 | $ | 104,895 | $ | 61,628 | $ | 2,692 | $ | 493,668 |
(1) Other states in our total portfolio include Alabama, Kentucky, Mississippi and New Mexico. | ||||||
(2) $12.2 million of the mortgages assumed in connection with the self storage property acquisitions were subsequently repaid during the nine months ended September 30, 2016. | ||||||
(3) NSA acquired self storage properties located in Alabama, Arizona, California, Colorado, Florida, Georgia, Indiana, Louisiana, Mississippi, New Hampshire, New Mexico, Nevada, Oklahoma, Oregon and Texas during 2016. |
Supplemental Schedule 4 | |||||||
Debt and Equity Capitalization | |||||||
As of September 30, 2016 | |||||||
(dollars in thousands) (unaudited) | |||||||
Debt Balances and Characteristics | |||||||
Effective Interest Rate(1) | Weighted Average Maturity (In Years) | Balance | |||||
Credit Facility: | |||||||
Revolving line of credit | 1.93% | 3.60 | $ | 85,500 | |||
Term loan - 5 year tranche | 2.61% | 4.60 | 225,000 | ||||
Term loan - 6 year tranche | 3.15% | 5.60 | 100,000 | ||||
Term loan - 7 year | 3.08% | 6.75 | 100,000 | ||||
Fixed rate mortgages payable | 4.05% | 7.55 | 206,087 | ||||
Total Principal/Weighted Average | 3.10% | 5.80 | 716,587 | ||||
Unamortized debt issuance costs and debt premium, net | 6,035 | ||||||
Total Debt | $ | 722,622 |
Debt Maturities | |||||||
Average Effective Interest Rate on Maturing Debt(1) | Maturities as a Percent of Total Principal | Maturities | |||||
Total Remainder of 2016 | 2.44% | 0.1% | $ | 811 | |||
2017 1Q | 2.57% | 1.5% | 11,034 | ||||
2017 2Q | — | — | — | ||||
2017 3Q | 2.55% | 0.3% | 1,887 | ||||
2017 4Q | — | — | — | ||||
Total 2017 | 2.57% | 1.8% | 12,921 | ||||
2018 | 2.93% | 0.9% | 6,104 | ||||
2019 | — | — | — | ||||
2020 | 2.51% | 17.4% | 124,722 | ||||
2021 | 2.65% | 32.0% | 229,029 | ||||
2022 | 3.15% | 14.0% | 100,000 | ||||
2023 | 3.69% | 25.2% | 180,827 | ||||
2024 | 4.21% | 2.9% | 20,546 | ||||
Thereafter | 4.10% | 5.7% | 41,627 | ||||
Total Principal/Weighted Average | 3.10% | 100.0% | 716,587 | ||||
Unamortized debt issuance costs and debt premium, net | 6,035 | ||||||
Total Debt | $ | 722,622 | |||||
Debt Ratios | |||||||
Covenant | Amount | ||||||
Net Debt to Annualized Current Quarter Adjusted EBITDA | n/a | 5.7x | |||||
Trailing Twelve Month Fixed Charge Coverage Ratio | > 1.5x | 3.8x | |||||
Total Leverage Ratio | < 60.0% | 36.7% | |||||
(1) Effective interest rate incorporates the stated rate plus the impact of interest rate cash flow hedges and discount and premium amortization, if applicable. For the revolving line of credit, the effective interest rate excludes fees which range from 0.15% to 0.25% for unused borrowings. |
Supplemental Schedule 4 (continued) | |||||
Debt and Equity Capitalization | |||||
As of September 30, 2016 | |||||
(unaudited) | |||||
Equity Interests | |||||
Outstanding | If Converted | ||||
Common shares of beneficial interest | 35,896,781 | 35,896,781 | |||
Restricted common shares | 19,090 | 19,090 | |||
Total shares outstanding | 35,915,871 | 35,915,871 | |||
Operating partnership units | 25,503,628 | 25,503,628 | |||
DownREIT operating partnership unit equivalents | 1,834,786 | 1,834,786 | |||
Total operating partnership units | 27,338,414 | 27,338,414 | |||
Long-term incentive plan units(2) | 1,281,505 | 1,281,505 | |||
Subordinated performance units(3) | 11,011,649 | 15,306,192 | |||
DownREIT subordinated performance unit equivalents(3) | 4,386,999 | 6,097,929 | |||
Total subordinated partnership units | 15,398,648 | 21,404,121 | |||
Total shares and units outstanding | 79,934,438 | 85,939,911 | |||
(2) Balances exclude 271,400 long-term incentive plan ("LTIP") units which only vest and participate in dividend distributions upon the future contribution of properties from the PROs. | |||
(3) If converted balance assumes that each subordinated performance unit (including each DownREIT subordinated performance unit) is convertible into OP units, notwithstanding the two-year lock-out period on conversions, and that each subordinated performance unit would on average convert on a hypothetical basis into an estimated 1.39 OP units based on historical financial information for the trailing twelve months ended September 30, 2016. The hypothetical conversions are calculated by dividing the average cash available for distribution, or CAD, per subordinated performance unit by 110% of the CAD per OP unit over the same period. The Company anticipates that as CAD grows over time, the conversion ratio will also grow, including to levels that may exceed these amounts. |
Supplemental Schedule 5 | ||||||||||||||||||||||||||||||||||||||||||||
Same Store Performance Summary | ||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands, except per square foot data) (unaudited) | ||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2016 compared to Three Months Ended September 30, 2015 | ||||||||||||||||||||||||||||||||||||||||||||
Total Revenue | Operating Expenses | Net Operating Income | Net Operating Income Margin | |||||||||||||||||||||||||||||||||||||||||
State | Stores | 3Q 2016 | 3Q 2015 | Growth | 3Q 2016 | 3Q 2015 | Growth | 3Q 2016 | 3Q 2015 | Growth | 3Q 2016 | 3Q 2015 | Growth | |||||||||||||||||||||||||||||||
Oregon | 49 | $ | 8,170 | $ | 7,373 | 10.8 | % | $ | 2,023 | $ | 2,002 | 1.0 | % | $ | 6,147 | $ | 5,371 | 14.4 | % | 75.2 | % | 72.8 | % | 2.4 | % | |||||||||||||||||||
Texas | 45 | 5,377 | 5,192 | 3.6 | % | 2,093 | 2,058 | 1.7 | % | 3,284 | 3,134 | 4.8 | % | 61.1 | % | 60.4 | % | 0.7 | % | |||||||||||||||||||||||||
California | 27 | 6,792 | 6,076 | 11.8 | % | 2,060 | 1,930 | 6.7 | % | 4,732 | 4,146 | 14.1 | % | 69.7 | % | 68.2 | % | 1.5 | % | |||||||||||||||||||||||||
Oklahoma | 25 | 3,045 | 3,043 | 0.1 | % | 1,045 | 1,037 | 0.8 | % | 2,000 | 2,006 | (0.3 | )% | 65.7 | % | 65.9 | % | (0.2 | )% | |||||||||||||||||||||||||
North Carolina | 19 | 2,164 | 2,080 | 4.0 | % | 715 | 709 | 0.8 | % | 1,449 | 1,371 | 5.7 | % | 67.0 | % | 65.9 | % | 1.1 | % | |||||||||||||||||||||||||
Georgia | 16 | 1,421 | 1,337 | 6.3 | % | 546 | 547 | (0.2 | )% | 875 | 790 | 10.8 | % | 61.6 | % | 59.1 | % | 2.5 | % | |||||||||||||||||||||||||
Washington | 13 | 1,646 | 1,538 | 7.0 | % | 504 | 468 | 7.7 | % | 1,142 | 1,070 | 6.7 | % | 69.4 | % | 69.6 | % | (0.2 | )% | |||||||||||||||||||||||||
Arizona | 10 | 1,872 | 1,739 | 7.6 | % | 620 | 600 | 3.3 | % | 1,252 | 1,139 | 9.9 | % | 66.9 | % | 65.5 | % | 1.4 | % | |||||||||||||||||||||||||
Colorado | 8 | 1,309 | 1,280 | 2.3 | % | 375 | 367 | 2.2 | % | 934 | 913 | 2.3 | % | 71.4 | % | 71.3 | % | 0.1 | % | |||||||||||||||||||||||||
Other(1) | 10 | 1,168 | 1,080 | 8.1 | % | 451 | 446 | 1.1 | % | 717 | 634 | 13.1 | % | 61.4 | % | 58.7 | % | 2.7 | % | |||||||||||||||||||||||||
Total/Weighted Average | 222 | $ | 32,964 | $ | 30,738 | 7.2 | % | $ | 10,432 | $ | 10,164 | 2.6 | % | $ | 22,532 | $ | 20,574 | 9.5 | % | 68.4 | % | 66.9 | % | 1.5 | % |
Rentable Square Feet | Occupancy at Period End | Average Occupancy | Average Annualized Rental Revenue per Occupied Square Foot | ||||||||||||||||||||||||||||||
State | Units | 3Q 2016 | 3Q 2015 | Growth | 3Q 2016 | 3Q 2015 | Growth | 3Q 2016 | 3Q 2015 | Growth | |||||||||||||||||||||||
Oregon | 19,682 | 2,473,875 | 91.8 | % | 94.8 | % | (3.0 | )% | 94.4 | % | 95.6 | % | (1.2 | )% | $ | 13.81 | $ | 12.32 | 12.1 | % | |||||||||||||
Texas | 17,461 | 2,471,193 | 88.6 | % | 87.5 | % | 1.1 | % | 90.0 | % | 88.0 | % | 2.0 | % | 9.39 | 9.21 | 2.0 | % | |||||||||||||||
California | 15,977 | 1,955,061 | 91.3 | % | 89.8 | % | 1.5 | % | 92.4 | % | 89.3 | % | 3.1 | % | 14.33 | 13.30 | 7.7 | % | |||||||||||||||
Oklahoma | 11,814 | 1,573,796 | 86.7 | % | 89.0 | % | (2.3 | )% | 87.2 | % | 89.4 | % | (2.2 | )% | 8.64 | 8.45 | 2.2 | % | |||||||||||||||
North Carolina | 8,165 | 973,418 | 86.8 | % | 84.4 | % | 2.4 | % | 87.2 | % | 85.3 | % | 1.9 | % | 9.86 | 9.70 | 1.6 | % | |||||||||||||||
Georgia | 5,281 | 676,656 | 94.2 | % | 94.2 | % | — | % | 94.9 | % | 93.7 | % | 1.2 | % | 8.53 | 8.12 | 5.0 | % | |||||||||||||||
Washington | 4,476 | 559,275 | 90.4 | % | 93.1 | % | (2.7 | )% | 91.2 | % | 93.1 | % | (1.9 | )% | 12.71 | 11.42 | 11.3 | % | |||||||||||||||
Arizona | 5,941 | 657,815 | 90.7 | % | 82.9 | % | 7.8 | % | 89.8 | % | 82.3 | % | 7.5 | % | 12.09 | 12.26 | (1.4 | )% | |||||||||||||||
Colorado | 3,738 | 453,216 | 94.8 | % | 94.3 | % | 0.5 | % | 96.7 | % | 96.2 | % | 0.5 | % | 11.68 | 11.48 | 1.7 | % | |||||||||||||||
Other(1) | 3,946 | 511,421 | 92.3 | % | 88.2 | % | 4.1 | % | 92.3 | % | 86.4 | % | 5.9 | % | 9.64 | 9.54 | 1.0 | % | |||||||||||||||
Total/Weighted Average | 96,481 | 12,305,726 | 90.2 | % | 89.9 | % | 0.3 | % | 91.4 | % | 90.2 | % | 1.2 | % | $ | 11.39 | $ | 10.74 | 6.1 | % |
(1) Other states in NSA's same store portfolio include Mississippi, New Hampshire, Nevada and South Carolina. |
Supplemental Schedule 5 | ||||||||||||||||||||||||||||||||||||||||||||
Same Store Performance Summary | ||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands, except per square foot data) (unaudited) | ||||||||||||||||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2016 compared to Nine Months Ended September 30, 2015 | ||||||||||||||||||||||||||||||||||||||||||||
Total Revenue | Operating Expenses | Net Operating Income | Net Operating Income Margin | |||||||||||||||||||||||||||||||||||||||||
State | Stores | YTD 2016 | YTD 2015 | Growth | YTD 2016 | YTD 2015 | Growth | YTD 2016 | YTD 2015 | Growth | YTD 2016 | YTD 2015 | Growth | |||||||||||||||||||||||||||||||
Oregon | 49 | $ | 23,137 | $ | 20,658 | 12.0 | % | $ | 6,074 | $ | 5,883 | 3.2 | % | $ | 17,063 | $ | 14,775 | 15.5 | % | 73.7 | % | 71.5 | % | 2.2 | % | |||||||||||||||||||
Texas | 45 | 15,575 | 14,959 | 4.1 | % | 6,172 | 5,847 | 5.6 | % | 9,403 | 9,112 | 3.2 | % | 60.4 | % | 60.9 | % | (0.5 | )% | |||||||||||||||||||||||||
California | 27 | 19,622 | 17,546 | 11.8 | % | 6,075 | 5,721 | 6.2 | % | 13,547 | 11,825 | 14.6 | % | 69.0 | % | 67.4 | % | 1.6 | % | |||||||||||||||||||||||||
Oklahoma | 25 | 9,068 | 8,883 | 2.1 | % | 3,042 | 3,001 | 1.4 | % | 6,026 | 5,882 | 2.4 | % | 66.5 | % | 66.2 | % | 0.3 | % | |||||||||||||||||||||||||
North Carolina | 19 | 6,250 | 6,042 | 3.4 | % | 2,078 | 2,072 | 0.3 | % | 4,172 | 3,970 | 5.1 | % | 66.8 | % | 65.7 | % | 1.1 | % | |||||||||||||||||||||||||
Georgia | 16 | 4,150 | 3,802 | 9.2 | % | 1,649 | 1,648 | 0.1 | % | 2,501 | 2,154 | 16.1 | % | 60.3 | % | 56.7 | % | 3.6 | % | |||||||||||||||||||||||||
Washington | 13 | 4,819 | 4,407 | 9.3 | % | 1,462 | 1,370 | 6.7 | % | 3,357 | 3,037 | 10.5 | % | 69.7 | % | 68.9 | % | 0.8 | % | |||||||||||||||||||||||||
Arizona | 10 | 5,435 | 5,002 | 8.7 | % | 1,758 | 1,691 | 4.0 | % | 3,677 | 3,311 | 11.1 | % | 67.7 | % | 66.2 | % | 1.5 | % | |||||||||||||||||||||||||
Colorado | 8 | 3,805 | 3,624 | 5.0 | % | 1,116 | 1,094 | 2.0 | % | 2,689 | 2,530 | 6.3 | % | 70.7 | % | 69.8 | % | 0.9 | % | |||||||||||||||||||||||||
Other(1) | 10 | 3,390 | 3,087 | 9.8 | % | 1,366 | 1,347 | 1.4 | % | 2,024 | 1,740 | 16.3 | % | 59.7 | % | 56.4 | % | 3.3 | % | |||||||||||||||||||||||||
Total/Weighted Average | 222 | $ | 95,251 | $ | 88,010 | 8.2 | % | $ | 30,792 | $ | 29,674 | 3.8 | % | $ | 64,459 | $ | 58,336 | 10.5 | % | 67.7 | % | 66.3 | % | 1.4 | % |
Rentable Square Feet | Average Occupancy | Average Annualized Rental Revenue per Occupied Square Foot | ||||||||||||||||||||||
State | Units | YTD 2016 | YTD 2015 | Growth | YTD 2016 | YTD 2015 | Growth | |||||||||||||||||
Oregon | 19,682 | 2,473,875 | 93.4 | % | 92.8 | % | 0.6 | % | $ | 13.20 | $ | 11.87 | 11.2 | % | ||||||||||
Texas | 17,461 | 2,471,193 | 88.7 | % | 85.0 | % | 3.7 | % | 9.18 | 9.14 | 0.4 | % | ||||||||||||
California | 15,977 | 1,955,061 | 91.7 | % | 86.4 | % | 5.3 | % | 13.92 | 13.43 | 3.6 | % | ||||||||||||
Oklahoma | 11,814 | 1,573,796 | 87.7 | % | 88.0 | % | (0.3 | )% | 8.54 | 8.36 | 2.2 | % | ||||||||||||
North Carolina | 8,165 | 973,418 | 84.9 | % | 83.3 | % | 1.6 | % | 9.74 | 9.64 | 1.0 | % | ||||||||||||
Georgia | 5,281 | 676,656 | 94.2 | % | 90.2 | % | 4.0 | % | 8.37 | 8.03 | 4.2 | % | ||||||||||||
Washington | 4,476 | 559,275 | 91.8 | % | 91.2 | % | 0.6 | % | 12.23 | 11.11 | 10.1 | % | ||||||||||||
Arizona | 5,941 | 657,815 | 86.5 | % | 79.9 | % | 6.6 | % | 12.13 | 12.11 | 0.2 | % | ||||||||||||
Colorado | 3,738 | 453,216 | 95.2 | % | 91.9 | % | 3.3 | % | 11.49 | 11.34 | 1.3 | % | ||||||||||||
Other(1) | 3,946 | 511,421 | 91.5 | % | 82.5 | % | 9.0 | % | 9.43 | 9.48 | (0.5 | )% | ||||||||||||
Total/Weighted Average | 96,481 | 12,305,726 | 90.4 | % | 87.5 | % | 2.9 | % | $ | 11.08 | $ | 10.59 | 4.6 | % |
(1) Other states in NSA's same store portfolio include Mississippi, New Hampshire, Nevada and South Carolina. |
Supplemental Schedule 6 | |||||||||||||||
Reconciliation of Same Store Data and Net Operating Income to Income from Operations | |||||||||||||||
(dollars in thousands) (unaudited) | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Rental revenue | |||||||||||||||
Same store portfolio | $ | 31,975 | $ | 29,798 | $ | 92,400 | $ | 85,259 | |||||||
Non-same store portfolio | 19,288 | 4,802 | 43,148 | 7,391 | |||||||||||
Total rental revenue on our statements of operations | 51,263 | 34,600 | 135,548 | 92,650 | |||||||||||
Other property-related revenue | |||||||||||||||
Same store portfolio | 989 | 940 | 2,851 | 2,751 | |||||||||||
Non-same store portfolio | 697 | 138 | 1,483 | 218 | |||||||||||
Total other property-related revenue on our statements of operations | 1,686 | 1,078 | 4,334 | 2,969 | |||||||||||
Property operating expenses | |||||||||||||||
Same store portfolio | 10,432 | 10,164 | 30,792 | 29,674 | |||||||||||
Non-same store portfolio | 6,898 | 1,836 | 15,272 | 2,994 | |||||||||||
Total property operating expenses on our statements of operations | 17,330 | 12,000 | 46,064 | 32,668 | |||||||||||
Net operating income for: | |||||||||||||||
Same store properties | 22,532 | 20,574 | 64,459 | 58,336 | |||||||||||
Non-same store properties | 13,087 | 3,104 | 29,359 | 4,615 | |||||||||||
Net operating income | 35,619 | 23,678 | 93,818 | 62,951 | |||||||||||
General and administrative expenses | 5,259 | 4,056 | 14,431 | 11,856 | |||||||||||
Depreciation and amortization | 14,319 | 10,341 | 38,299 | 30,192 | |||||||||||
Income from operations on our statements of operations | $ | 16,041 | $ | 9,281 | $ | 41,088 | $ | 20,903 |
Supplemental Schedule 7 | |||||||||||||||
Selected Financial Information | |||||||||||||||
(in thousands, except per square foot data) (unaudited) | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Average Annualized Rental Revenue Per Occupied Square Foot | |||||||||||||||
Same store | $ | 11.39 | $ | 10.74 | $ | 11.08 | $ | 10.59 | |||||||
Total portfolio | $ | 11.24 | $ | 10.75 | $ | 10.90 | $ | 10.60 | |||||||
Total Portfolio Capital Expenditures | |||||||||||||||
Recurring capital expenditures | $ | 936 | $ | 570 | $ | 2,442 | $ | 1,649 | |||||||
Revenue enhancing capital expenditures | 1,385 | 10 | 2,315 | 703 | |||||||||||
Acquisitions capital expenditures | 2,307 | 402 | 3,982 | 544 | |||||||||||
Total Portfolio Capital Expenditures | $ | 4,628 | $ | 982 | $ | 8,739 | $ | 2,896 | |||||||
Total portfolio square feet | 21,047 | 14,782 | 21,047 | 14,782 | |||||||||||
Recurring Capital Expenditures Per Square Foot | $ | 0.04 | $ | 0.04 | $ | 0.12 | $ | 0.11 | |||||||
Property Operating Expenses Detail | |||||||||||||||
Store payroll and related costs | $ | 5,136 | $ | 3,493 | $ | 13,832 | $ | 9,569 | |||||||
Property tax expense | 3,825 | 2,497 | 10,204 | 7,059 | |||||||||||
Other property operating expenses | 8,369 | 6,010 | 22,028 | 16,040 | |||||||||||
Property operating expenses on our statements of operations | $ | 17,330 | $ | 12,000 | $ | 46,064 | $ | 32,668 | |||||||
General and Administrative Expenses Detail | |||||||||||||||
Supervisory and administrative expenses | $ | 2,959 | $ | 2,022 | $ | 7,839 | $ | 5,414 | |||||||
Equity-based compensation expense | 685 | 654 | 1,913 | 2,375 | |||||||||||
Other general and administrative expenses | 1,615 | 1,380 | 4,679 | 4,067 | |||||||||||
General and administrative expenses on our statements of operations | $ | 5,259 | $ | 4,056 | $ | 14,431 | $ | 11,856 | |||||||
• | EBITDA and Adjusted EBITDA do not reflect our cash expenditures, or future requirements, for capital expenditures, contractual commitments or working capital needs; |
• | EBITDA and Adjusted EBITDA do not reflect the significant interest expense, or the cash requirements necessary to service interest or principal payments, on our debts; |
• | although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and EBITDA and Adjusted EBITDA do not reflect any cash requirements for such replacements; |
• | Adjusted EBITDA excludes equity-based compensation expense, which is and will remain a key element of our overall long-term incentive compensation package, although we exclude it as an expense when evaluating our ongoing operating performance for a particular period; |
• | EBITDA and Adjusted EBITDA do not reflect the impact of certain cash charges resulting from matters we consider not to be indicative of our ongoing operations; and |
• | other companies in our industry may calculate EBITDA and Adjusted EBITDA differently than we do, limiting its usefulness as a comparative measure. |
• | NOI is one of the primary measures used by our management and our PROs to evaluate the economic productivity of our properties, including our ability to lease our properties, increase pricing and occupancy and control our property operating expenses; |
• | NOI is widely used in the real estate industry and the self storage industry to measure the performance and value of real estate assets without regard to various items included in net income that do not relate to or are not indicative of operating performance, such as depreciation and amortization, which can vary depending upon accounting methods, the book value of assets, and the impact of our capital structure; and |
• | We believe NOI helps our investors to meaningfully compare the results of our operating performance from period to period by removing the impact of our capital structure (primarily interest expense on our outstanding indebtedness) and depreciation of the cost basis of our assets from our operating results. |