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Table of Contents
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 - Portfolio Summary
Schedule 4 - Debt and Equity Capitalization
Schedule 5 - Summarized Information for Unconsolidated Real Estate Ventures
Schedule 6 - Same Store Performance Summary By State
Schedule 7 - Same Store Performance Summary By MSA
Schedule 8 - Same Store Operating Data - Trailing Five Quarters
Schedule 9 - Reconciliation of Same Store Data and Net Operating Income to Net Income
Schedule 10 - Selected Financial Information
Glossary



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February 24, 2020
National Storage Affiliates Trust Reports 2019 Fourth Quarter and Full Year Results; Announces Internalization of Its Largest PRO
GREENWOOD VILLAGE, Colo. - (BUSINESS WIRE) - National Storage Affiliates Trust (“NSA” or the "Company") (NYSE: NSA) today reported the Company’s fourth quarter and full year 2019 results, and announced the internalization of the Company's largest participating regional operator ("PRO"), SecurCare Self Storage, Inc. ("SecurCare"), as well as the transition of the Company's Chief Operating Officer.
Fourth Quarter 2019 Highlights
Reported net income of $18.8 million for the fourth quarter of 2019, an increase of 30.0% compared to the fourth quarter of 2018. Reported diluted earnings per share of $0.13 for the fourth quarter of 2019, primarily relating to the HLBV method for allocating net income among the various classes of equity.
Reported core funds from operations ("Core FFO") of $36.8 million, or $0.40 per share for the fourth quarter of 2019, an increase of 8.1% per share compared to the fourth quarter of 2018.
Achieved same store net operating income ("NOI") growth of 3.8% for the fourth quarter of 2019 compared to the same period in 2018, driven by a 2.8% increase in same store total revenues partially offset by a 0.3% increase in same store property operating expenses.
Acquired seven wholly-owned self storage properties for $32.2 million during the fourth quarter of 2019. Consideration for these acquisitions included the issuance of approximately $2.0 million of OP equity.
Full Year 2019 Highlights
Reported net income of $66.0 million for full year 2019, an increase of 17.2% compared to full year 2018. Reported diluted loss per share of $0.15 for full year 2019, primarily relating to the HLBV method for allocating net income among the various classes of equity.
Reported Core FFO of $140.5 million, or $1.54 per share for full year 2019, an increase of 11.6% per share compared to full year 2018.
Achieved same store NOI growth of 5.0% for full year 2019 compared to the same period in 2018, driven by a 4.0% increase in same store total revenues partially offset by a 1.6% increase in same store property operating expenses.
Acquired 69 wholly-owned self storage properties for $447.8 million during full year 2019. Consideration for these acquisitions included the issuance of approximately $51.8 million of OP equity.
Highlights Subsequent to Year-End
NSA has entered into a definitive agreement with SecurCare, the Company’s largest PRO, to acquire SecurCare in a merger and internalize its property management platform, which is expected to close during the second quarter of 2020, subject to customary closing conditions. As part of the internalization, NSA intends to offer employment to most of SecurCare's employees, including its key persons, to continue managing SecurCare's managed portfolio as members of NSA's property management platform. As a result of the merger, NSA will no longer pay any fees or reimbursements to SecurCare and distributions on the series of subordinated performance units related to SecurCare's managed portfolio will be discontinued. Further details regarding these transactions are contained in NSA's current report on Form 8-K, filed today with the SEC.
In connection with the internalization of SecurCare, the Company's Board of Trustees approved the appointment of David Cramer, who is currently the president and chief executive officer of SecurCare, as NSA's Chief Operating Officer and Executive Vice President, with an expected effective date at or around the closing of the SecurCare merger, and accepted the resignation of Steven B. Treadwell from the same positions, to pursue other interests, effective at or around the same time. Mr. Nordhagen will continue to serve the Company in his capacity as executive chairman.
NSA acquired 34 wholly-owned self storage properties for approximately $205.8 million and two joint venture properties totaling approximately $12.1 million.
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Arlen Nordhagen, Executive Chairman of the Board of Trustees, commented, "As 2020 begins, we enter a transformational year for NSA. When we formed the Company in 2013, we envisioned a differentiated public self storage REIT that would leverage the benefits of integrating multiple experienced regional self storage operators to deliver consistently outstanding results to our shareholders. With the announcement of the internalization of SecurCare, we are excited to take the next step in the evolution of NSA and demonstrate that our unique structure can continue to build on the foundation of the stellar execution of our internal and external growth strategies since our IPO in 2015."

Mr. Nordhagen continued, "While we are sorry to see Steve Treadwell leave NSA to pursue an entrepreneurial opportunity, it is fortuitous that the timing of his departure coincides with the internalization of SecurCare so that Dave Cramer can immediately step into the role of COO. Dave and I have worked closely together for over 20 years, and Dave's wealth of knowledge and experience in the self storage industry will provide for a seamless transition during this next phase of the Company's growth."

Tamara Fischer, President and Chief Executive Officer, added, "We are very proud of what we accomplished during 2019, with a double digit increase in Core FFO per share driven by operating results that exceeded our expectations. As we look ahead to 2020, the expected accretion from the internalization of SecurCare is the realization of one of the key benefits of NSA's PRO structure. I look forward to working with Dave in his new role and continuing NSA's success."

Financial Results
($ in thousands, except per share and unit data)
Three Months Ended December 31,Year Ended December 31,
20192018Growth20192018Growth
Net income$18,826  $14,483  30.0 %$66,013  $56,326  17.2 %
Funds From Operations ("FFO")(1)
$36,218  $32,201  12.5 %$139,151  $116,378  19.6 %
Add back acquisition costs
534  192  178.1 %1,317  663  98.6 %
Core FFO(1)
$36,752  $32,393  13.5 %$140,468  $117,041  20.0 %
Earnings (loss) per share - basic$0.17  $(0.16) 206.3 %$(0.15) $0.07  (314.3)%
Earnings (loss) per share - diluted
$0.13  $(0.16) 181.3 %$(0.15) $0.07  (314.3)%
FFO per share and unit(1)
$0.39  $0.37  5.4 %$1.53  $1.37  11.7 %
Core FFO per share and unit(1)
$0.40  $0.37  8.1 %$1.54  $1.38  11.6 %
(1) Non-GAAP financial measures, including FFO, Core FFO and NOI, are defined in the Glossary in the supplemental financial information and, where appropriate, reconciliations of these measures and other non-GAAP financial measures to their most directly comparable GAAP measures are included in the Schedules to this press release and in the supplemental financial information.
Net income increased $4.3 million for the fourth quarter of 2019 and $9.7 million for full year 2019 as compared to the same periods in 2018. The increases primarily resulted from additional NOI generated from the 69 wholly-owned self storage properties acquired during full year 2019 and same store NOI growth, partially offset by increases in depreciation and amortization and interest expense.
The increases in FFO and Core FFO for the fourth quarter of 2019 and full year 2019 were primarily the result of incremental NOI from properties acquired during full year 2019 and same store NOI growth, partially offset by higher interest expense and increases in distributions to subordinated performance unitholders.
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Same Store Operating Results (439 Stores)
($ in thousands, except per square foot data)
Three Months Ended December 31,Year Ended December 31,
20192018Growth20192018Growth
Total revenues
$74,792  $72,775  2.8 %$297,177  $285,820  4.0 %
Property operating expenses
21,763  21,705  0.3 %88,694  87,262  1.6 %
Net Operating Income (NOI)
$53,029  $51,070  3.8 %$208,483  $198,558  5.0 %
NOI Margin70.9 %70.2 %0.7 %70.2 %69.5 %0.7 %
Average Occupancy
88.2 %88.2 %—  88.8 %88.5 %0.3 %
Average Annualized Rental Revenue Per Occupied Square Foot
$12.14  $11.83  2.6 %$11.98  $11.58  3.5 %
Year-over-year same store total revenues increased 2.8% for the fourth quarter of 2019 and 4.0% for full year 2019 as compared to the same periods in 2018. The increases were driven primarily by a 2.6% increase in average annualized rental revenue per occupied square foot for the fourth quarter of 2019 and a 3.5% increase in average annualized rental revenue per occupied square foot for full year 2019. Markets that generated above portfolio average same store total revenue growth include: Riverside-San Bernardino, Atlanta, and Las Vegas. Markets that generated below portfolio average same store total revenue growth include: Portland, Dallas and Tulsa.
Year-over-year same store property operating expenses increased 0.3% for the fourth quarter of 2019 and 1.6% for full year 2019 as compared to the same periods in 2018. For the fourth quarter of 2019, the increase primarily resulted from increases in personnel costs, general and administrative expenses and advertising costs, substantially offset by decreases in property taxes. The decreases in property taxes resulted primarily from unexpected favorable property tax assessments recorded during the fourth quarter of 2019. For full year 2019, the increase primarily resulted from increases in repairs and maintenance expenses, personnel costs and property taxes.
Investment Activity
NSA acquired seven wholly-owned self storage properties located across three states consisting of approximately 0.3 million rentable square feet configured in approximately 2,500 storage units during the fourth quarter of 2019. Total consideration for these acquisitions of $32.2 million included approximately $30.0 million of net cash, the issuance of approximately $0.2 million of OP units, $1.8 million of subordinated performance units and the assumption of approximately $0.2 million of other working capital liabilities.
During the full year 2019, NSA invested $447.8 million in the acquisition of 69 wholly-owned self storage properties located across 14 states consisting of approximately 4.2 million rentable square feet configured in approximately 33,000 storage units.
Common Share Dividends
On November 20, 2019, NSA's Board of Trustees declared a quarterly cash dividend of $0.33 per common share, which was paid on December 31, 2019 to shareholders of record as of December 13, 2019.
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2020 Guidance
The Company's outlook for 2020 incorporates the effect of the SecurCare internalization assuming an effective date of April 1, 2020, which is expected to be accretive to Core FFO per share by approximately $0.03 in 2020, or $0.04 - $0.05 on an annualized basis.
The following table outlines NSA's FFO guidance estimates and related assumptions for the year ended December 31, 2020:
Ranges for Full Year 2020
LowHigh
Core FFO per share(1)
$1.64  $1.68  
Same store operations (500 stores)
Total revenue growth
2.25%3.25%
Property operating expenses growth
3.0%4.0%
NOI growth
2.0%3.0%
General and administrative expenses
General and administrative expenses (excluding equity-based compensation)
$41.0  $43.0  
Equity-based compensation$4.5  $5.0  
Management fees and other revenue, in millions
$21.0  $23.0  
Core FFO from unconsolidated real estate ventures, in millions
$15.0  $16.0  
Subordinated performance unit distributions, in millions
$28.0  $30.0  
Wholly-owned acquisitions, in millions$400.0  $600.0  
Joint venture acquisitions, in millions$25.0  $50.0  

(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 2020
LowHigh
Earnings (loss) per share - diluted$0.00$0.20  
Impact of the difference in weighted average number of shares and GAAP accounting for noncontrolling interests, two-class method and treasury stock method
0.67  0.47  
Add real estate depreciation and amortization, including NSA's share of unconsolidated venture real estate depreciation and amortization
1.23  1.29  
FFO attributable to subordinated unitholders
(0.28) (0.30) 
Add acquisition costs and NSA's share of unconsolidated real estate venture acquisition costs
0.02  0.02  
Core FFO per share and unit
$1.64  $1.68  
Supplemental Financial Information
The full text of this earnings release and supplemental financial information, including certain financial information referenced in this release, are available on NSA's website at http://ir.nationalstorageaffiliates.com/quarterly-reporting and as exhibit 99.1 to the Company's Form 8-K furnished to the SEC on February 24, 2020.
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Non-GAAP Financial Measures & Glossary
This press release contains certain non-GAAP financial measures. These non-GAAP measures are presented because NSA's management believes these measures help investors understand NSA's business, performance and ability to earn and distribute cash to its shareholders by providing perspectives not immediately apparent from net income (loss). These measures are also frequently used by securities analysts, investors and other interested parties. The presentations of FFO, Core FFO and NOI in this press release are not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. In addition, NSA's method of calculating these measures may be different from methods used by other companies, and, accordingly, may not be comparable to similar measures as calculated by other companies that do not use the same methodology as NSA. These measures, and other words and phrases used herein, are defined in the Glossary in the supplemental financial information and, where appropriate, reconciliations of these measures and other non-GAAP financial measures to their most directly comparable GAAP measures are included in the Schedules to this press release and in the supplemental financial information.
Quarterly Teleconference and Webcast
The Company will host a conference call at 11:00 am Eastern Time on Tuesday, February 25, 2020 to discuss its financial results. At the conclusion of the call, management will accept questions from certified financial analysts. All other participants are encouraged to listen to a webcast of the call by accessing the link found on the Company's website at www.nationalstorageaffiliates.com.
Conference Call and Webcast:
Date/Time: Tuesday, February 25, 2020, 11:00am ET
Webcast available at: www.nationalstorageaffiliates.com
Domestic (Toll Free US & Canada): 877.407.9711
International: 412.902.1014
Replay:
Domestic (Toll Free US & Canada): 877.660.6853
International: 201.612.7415
Conference ID: 13692161
A replay of the call will be available for one week through Tuesday, March 3, 2020. A replay of the webcast will be available for 30 days on NSA's website at www.nationalstorageaffiliates.com.
Upcoming Industry Conference
NSA management is scheduled to participate in Citi’s 25th Annual Global Property CEO Conference on March 2 – 4, 2020 in Hollywood, Florida.

About National Storage Affiliates Trust
National Storage Affiliates Trust is a Maryland real estate investment trust focused on the ownership, operation and acquisition of self storage properties located within the top 100 metropolitan statistical areas throughout the United States. As of December 31, 2019, the Company held ownership interests in and operated 742 self storage properties located in 35 states and Puerto Rico with approximately 47.1 million rentable square feet. NSA is one of the largest owners and operators of self storage properties among public and private companies in the United States. For more information, please visit the Company’s website at www.nationalstorageaffiliates.com. NSA is included in the MSCI US REIT Index (RMS/RMZ), the Russell 2000 Index of Companies and the S&P SmallCap 600 Index.
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NOTE REGARDING FORWARD LOOKING STATEMENTS
Certain statements contained in this press release constitute forward-looking statements as such term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and such statements are intended to be covered by the safe harbor provided by the same. Forward-looking statements are subject to substantial risks and uncertainties, many of which are difficult to predict and are generally beyond the Company's control. These forward-looking statements include information about possible or assumed future results of the Company's business, financial condition, liquidity, results of operations, plans and objectives. Changes in any circumstances may cause the Company's actual results to differ significantly from those expressed in any forward-looking statement. When used in this release, the words "believe," "expect," "anticipate," "estimate," "plan," "continue," "intend," "should," "may" or similar expressions are intended to identify forward-looking statements. Statements regarding the following subjects, among others, may be forward-looking: market trends in the Company's industry, interest rates, the debt and lending markets or the general economy; the Company's business and investment strategy; the acquisition of properties, including those under contract and our ability to execute on our acquisition pipeline; the timing of acquisitions under contract; the internalization of retiring participating regional operators ("PROs") into the Company; and the Company's guidance estimates for the year ended December 31, 2020. For a further list and description of such risks and uncertainties, see the Company's most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission, and the other documents filed by the Company with the Securities and Exchange Commission. The forward-looking statements, and other risks, uncertainties and factors are based on the Company's beliefs, assumptions and expectations of its future performance, taking into account all information currently available to the Company. Forward-looking statements are not predictions of future events. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Contact:
National Storage Affiliates Trust
Investor/Media Relations
George Hoglund, CFA
Vice President - Investor Relations
720.630.2160
ghoglund@nsareit.net
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National Storage Affiliates Trust
Consolidated Statements of Operations
(in thousands, except per share amounts)
(unaudited)
Three Months Ended December 31,Year Ended December 31,
2019201820192018
REVENUE
Rental revenue$92,083  $81,826  $354,859  $308,403  
Other property-related revenue3,133  2,626  12,302  10,183  
Management fees and other revenue5,352  4,846  20,735  12,310  
Total revenue100,568  89,298  387,896  330,896  
OPERATING EXPENSES
Property operating expenses27,712  26,913  110,347  103,875  
General and administrative expenses11,606  10,606  45,581  36,220  
Depreciation and amortization27,343  22,921  105,119  89,147  
Total operating expenses66,661  60,440  261,047  229,242  
OTHER (EXPENSE) INCOME
Interest expense(14,874) (11,961) (56,464) (42,724) 
Equity in losses of unconsolidated real estate ventures
(8) (1,713) (4,970) (1,423) 
Acquisition costs(534) (192) (1,317) (663) 
Non-operating income (expense)727  (160) 452  (91) 
Gain on sale of self storage properties—  —  2,814  391  
Other expense(14,689) (14,026) (59,485) (44,510) 
Income before income taxes19,218  14,832  67,364  57,144  
Income tax expense(392) (349) (1,351) (818) 
Net income18,826  14,483  66,013  56,326  
Net income attributable to noncontrolling interests
(5,738) (21,119) (62,030) (42,217) 
Net income (loss) attributable to National Storage Affiliates Trust13,088  (6,636) 3,983  14,109  
Distributions to preferred shareholders
(3,273) (2,587) (12,390) (10,350) 
Net income (loss) attributable to common shareholders
$9,815  $(9,223) $(8,407) $3,759  
Earnings (loss) per share - basic$0.17  $(0.16) $(0.15) $0.07  
Earnings (loss) per share - diluted$0.13  $(0.16) $(0.15) $0.07  
Weighted average shares outstanding - basic
59,316  56,571  58,208  53,293  
Weighted average shares outstanding - diluted
114,422  56,571  58,208  53,293  

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National Storage Affiliates Trust
Consolidated Balance Sheets
(dollars in thousands, except per share amounts)
(unaudited)
December 31,
20192018
ASSETS
Real estate
Self storage properties$3,091,719  $2,637,723  
Less accumulated depreciation(337,822) (246,261) 
Self storage properties, net2,753,897  2,391,462  
Cash and cash equivalents20,558  13,181  
Restricted cash3,718  3,182  
Debt issuance costs, net3,264  1,260  
Investment in unconsolidated real estate ventures214,061  245,125  
Other assets, net65,441  75,053  
Operating lease right-of-use assets23,306  —  
Total assets$3,084,245  $2,729,263  
LIABILITIES AND EQUITY
Liabilities
Debt financing$1,534,047  $1,278,102  
Accounts payable and accrued liabilities57,909  33,130  
Operating lease liabilities24,665  —  
Deferred revenue15,523  15,732  
Total liabilities1,632,144  1,326,964  
Equity
Preferred shares of beneficial interest, par value $0.01 per share. 50,000,000 authorized, 8,727,119 and 6,900,000 issued and outstanding at December 31, 2019 and 2018, respectively, at liquidation preference
218,178  172,500  
Common shares of beneficial interest, par value $0.01 per share. 250,000,000 shares authorized, 59,659,108 and 56,654,009 shares issued and outstanding at December 31, 2019 and 2018, respectively
597  567  
Additional paid-in capital905,763  844,276  
Distributions in excess of earnings(197,075) (114,122) 
Accumulated other comprehensive (loss) income(7,833) 13,618  
Total shareholders' equity919,630  916,839  
Noncontrolling interests532,471  485,460  
Total equity1,452,101  1,402,299  
Total liabilities and equity$3,084,245  $2,729,263  


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Supplemental Schedule 1
Funds From Operations and Core Funds From Operations
(in thousands, except per share and unit amounts) (unaudited)
Reconciliation of Net Income to FFO and Core FFO
Three Months Ended December 31,Year Ended December 31,
2019201820192018
Net income$18,826  $14,483  $66,013  $56,326  
Add (subtract):
Real estate depreciation and amortization27,019  22,606  103,835  87,938  
Company's share of unconsolidated real estate venture real estate depreciation and amortization
3,763  5,524  19,889  10,233  
Gain on sale of self storage properties
—  —  (2,814) (391) 
Company's share of unconsolidated real estate venture loss on sale of properties
—  —  202  205  
Mark-to-market changes in value on equity securities
(610) —  (610) —  
Distributions to preferred shareholders and unitholders
(3,514) (2,716) (13,243) (10,822) 
FFO attributable to subordinated performance unitholders(1)
(9,266) (7,696) (34,121) (27,111) 
FFO attributable to common shareholders, OP unitholders, and LTIP unitholders
36,218  32,201  139,151  116,378  
Add:
Acquisition costs534  192  1,317  663  
Core FFO attributable to common shareholders, OP unitholders, and LTIP unitholders
$36,752  $32,393  $140,468  $117,041  
Weighted average shares and units outstanding - FFO and Core FFO:(2)
Weighted average shares outstanding - basic59,316  56,571  58,208  53,293  
Weighted average restricted common shares outstanding26  28  28  29  
Weighted average OP units outstanding
30,457  28,881  30,277  28,977  
Weighted average DownREIT OP unit equivalents outstanding
1,848  1,835  1,848  1,835  
Weighted average LTIP units outstanding
525  708  585  694  
Total weighted average shares and units outstanding - FFO and Core FFO
92,172  88,023  90,946  84,828  
FFO per share and unit$0.39  $0.37  $1.53  $1.37  
Core FFO per share and unit$0.40  $0.37  $1.54  $1.38  
(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 the Company's 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(3) 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.

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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 December 31,Year Ended December 31,
2019201820192018
Earnings (loss) per share - diluted$0.13  $(0.16) $(0.15) $0.07  
Impact of the difference in weighted average number of shares(3)
0.03  0.06  0.05  (0.03) 
Impact of GAAP accounting for noncontrolling interests, two-class method and treasury stock method(4)
0.01  0.24  0.69  0.49  
Add real estate depreciation and amortization0.29  0.26  1.14  1.04  
Add Company's share of unconsolidated real estate venture real estate depreciation and amortization
0.04  0.06  0.22  0.12  
Subtract gain on sale of self storage properties—  —  (0.03) —  
Subtract mark-to-market changes in value on equity securities
(0.01) —  (0.01) —  
FFO attributable to subordinated performance unitholders
(0.10) (0.09) (0.38) (0.32) 
FFO per share and unit
0.39  0.37  1.53  1.37  
Add acquisition costs
0.01  —  0.01  0.01  
Core FFO per share and unit
$0.40  $0.37  $1.54  $1.38  
(3) 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 and the treasury stock method for certain unvested LTIP units, and assumes the conversion of vested LTIP units into OP units on a one-for-one basis and the hypothetical conversion of subordinated performance units, and DownREIT subordinated performance 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 10 to the Company's most recent Annual Report on Form 10-K, 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.
(4) Represents the effect of adjusting the numerator to consolidated net income (loss) prior to GAAP allocations for noncontrolling interests, after deducting preferred share and unit distributions, and before the application of the two-class method and treasury stock method, as described in footnote(3).


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Supplemental Schedule 2
Other Non-GAAP Financial Measurements
(dollars in thousands) (unaudited)
Net Operating Income
Three Months Ended December 31,Year Ended December 31,
2019201820192018
Net income$18,826  $14,483  $66,013  $56,326  
(Subtract) add:
Management fees and other revenue(5,352) (4,846) (20,735) (12,310) 
General and administrative expenses11,606  10,606  45,581  36,220  
Depreciation and amortization27,343  22,921  105,119  89,147  
Interest expense14,874  11,961  56,464  42,724  
Equity in losses of unconsolidated real estate ventures
 1,713  4,970  1,423  
Acquisition costs534  192  1,317  663  
Income tax expense392  349  1,351  818  
Gain on sale of self storage properties—  —  (2,814) (391) 
Non-operating (income) expense(727) 160  (452) 91  
Net Operating Income
$67,504  $57,539  $256,814  $214,711  

EBITDA and Adjusted EBITDA
Three Months Ended December 31,Year Ended December 31,
2019201820192018
Net income$18,826  $14,483  $66,013  $56,326  
Add:
Depreciation and amortization27,343  22,921  105,119  89,147  
Company's share of unconsolidated real estate venture depreciation and amortization
3,763  5,524  19,889  10,233  
Interest expense14,874  11,961  56,464  42,724  
Income tax expense392  349  1,351  818  
EBITDA
65,198  55,238  248,836  199,248  
Add (subtract):
Acquisition costs534  192  1,317  663  
Gain on sale of self storage properties—  —  (2,814) (391) 
Company's share of unconsolidated real estate venture loss on sale of properties
—  —  202  205  
Equity-based compensation expense1,154  1,029  4,527  3,837  
Adjusted EBITDA
$66,886  $56,459  $252,068  $203,562  

11

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Supplemental Schedule 3
Portfolio Summary
As of December 31, 2019
(dollars in thousands) (unaudited)
Wholly-Owned Store Data by State (Consolidated)Total Operated Store Data by State (Consolidated & Unconsolidated)
State/TerritoriesStores UnitsRentable Square FeetOccupancy at Period EndState/TerritoriesStores UnitsRentable Square FeetOccupancy at Period End
California83  49,618  6,226,952  88.4 %California93  55,815  6,981,331  88.3 %
Texas71  29,465  4,218,584  86.6 %Texas75  31,800  4,495,373  86.3 %
Oregon61  24,498  3,105,199  81.1 %Florida73  44,330  4,743,130  84.7 %
Florida46  28,956  3,021,295  86.4 %Oregon 61  24,498  3,105,199  81.1 %
Georgia44  19,044  2,547,949  87.7 %Georgia55  25,185  3,420,281  87.5 %
North Carolina33  15,377  1,885,479  90.8 %Oklahoma36  16,093  2,196,864  88.3 %
Arizona31  16,893  1,925,442  86.9 %Arizona33  17,902  2,035,272  86.6 %
Oklahoma30  13,848  1,902,842  87.5 %North Carolina33  15,377  1,885,479  90.8 %
Louisiana26  12,336  1,538,959  84.8 %Louisiana26  12,336  1,538,959  84.8 %
Indiana16  8,777  1,134,820  89.6 %Michigan24  15,616  1,977,773  87.6 %
Kansas16  5,713  763,249  86.6 %Ohio22  12,429  1,526,139  86.5 %
Washington14  4,496  578,723  80.1 %New Jersey18  11,960  1,416,962  87.5 %
Nevada13  6,678  844,811  89.4 %Nevada17  8,296  1,096,968  89.0 %
Colorado 11  5,048  615,456  84.2 %Indiana16  8,777  1,134,820  89.6 %
New Hampshire11  4,727  576,995  90.3 %Kansas16  5,713  763,249  86.6 %
Missouri 3,859  490,023  74.7 %Alabama15  6,295  937,091  85.9 %
Ohio 3,642  461,393  88.5 %Washington14  4,496  578,723  80.1 %
Other(1)
44  22,032  2,647,238  88.2 %Massachusetts11  7,800  836,421  87.5 %
Total
567  275,007  34,485,409  86.8 %Colorado11  5,048  615,456  84.2 %
New Hampshire11  4,727  576,995  90.3 %
Other(2)
82  43,624  5,237,847  84.6 %
Total
742  378,117  47,100,332  86.4 %



(1) Other states and territories in NSA's owned portfolio as of December 31, 2019 include Alabama, Idaho, Illinois, Kentucky, Maryland, Massachusetts, Mississippi, New Jersey, New Mexico, Pennsylvania, South Carolina, Virginia and Puerto Rico.
(2) Other states and territories in NSA's operated portfolio as of December 31, 2019 include Delaware, Idaho, Illinois, Kentucky, Maryland, Minnesota, Mississippi, Missouri, New Mexico, New York, Pennsylvania, Rhode Island, South Carolina, Tennessee, Virginia and Puerto Rico.

12

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Supplemental Schedule 3 (continued)
Portfolio Summary
(dollars in thousands) (unaudited)
2019 Acquisition Activity
Self Storage Properties Acquired
During the Quarter Ended:
Summary of Investment
StoresUnitsRentable Square FeetCash and Acquisition CostsValue of OP EquityOther LiabilitiesTotal
March 31, 201932  14,952  1,745,495  $160,531  $33,356  $674  $194,561  
June 30, 201924  12,327  1,762,895  168,442  15,515  1,378  185,335  
September 30, 2019 3,193  329,002  34,624  950  197  35,771  
December 31, 2019 2,488  339,906  30,004  2,005  154  32,163  
Total Acquisitions(3)
69  32,960  4,177,298  $393,601  $51,826  $2,403  $447,830  

2019 Disposition & Divestiture Activity
Dispositions Closed During the Quarter Ended:StoresUnitsRentable Square FeetGross Proceeds
June 30, 2019(4)
 453  45,273  $6,500  
Unconsolidated Real Estate Ventures (at 100%)(5)
March 31, 2019(6)
 318  40,930  4,075  
Total 2019 Divestitures(5)
 771  86,203  $10,575  










(3) NSA acquired self storage properties located in Arizona (2), Florida (12), Georgia (10), Idaho (3), Louisiana (12), Maryland (1), Massachusetts (2), Missouri (2), New Hampshire (1), New Jersey (3), New Mexico (3), Oregon (1), Pennsylvania (6) and Texas (11).
(4) NSA disposed of a self storage property located in Washington during 2019.
(5) Values represent entire unconsolidated real estate ventures at 100%, not NSA's proportionate share. NSA's ownership in each of the unconsolidated real estate ventures is 25%.
(6) The divestiture completed during the quarter ended March 31, 2019 was a sale from one of NSA's unconsolidated real estate ventures into the consolidated portfolio of NSA.


13

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Supplemental Schedule 4
Debt and Equity Capitalization
As of December 31, 2019
(unaudited)
Debt Summary (dollars in thousands)
Effective Interest Rate(1)
Basis of RateMaturity Date2020202120222023202420252026ThereafterTotal
Credit Facility:
Revolving line of credit
3.06%  
Variable(2)
January 2024$—  $—  $—  $—  $—  $—  $—  $—  $—  
Term loan - Tranche A
3.74%  Swapped To FixedJanuary 2023—  —  —  125,000  —  —  —  —  125,000  
Term loan - Tranche B
2.91%  Swapped To Fixed  July 2024—  —  —  —  250,000  —  —  —  250,000  
Term loan - Tranche C
2.80%  Swapped To Fixed  January 2025—  —  —  —  —  225,000  —  —  225,000  
Term loan - Tranche D
3.57%  Swapped To Fixed  July 2026—  —  —  —  —  —  175,000  —  175,000  
Term loan facility - 20232.83%  Swapped To Fixed  June 2023—  —  —  175,000  —  —  —  —  175,000  
Term loan facility - 20284.62%  Swapped To Fixed  December 2028—  —  —  —  —  —  —  75,000  75,000  
Term loan facility - 20294.27%  Swapped To Fixed  April 2029—  —  —  —  —  —  —  100,000  100,000  
2029 Senior Unsecured Notes3.98%  Fixed  August 2029—  —  —  —  —  —  —  100,000  100,000  
2031 Senior Unsecured Notes4.08%  Fixed  August 2031—  —  —  —  —  —  —  50,000  50,000  
Fixed rate mortgages payable4.16%  Fixed  October 2020 - October 203135,343  4,901  —  81,803  20,289  —  —  121,924  264,260  
Total Principal/Weighted Average
3.53%  5.92 years$35,343  $4,901  $—  $381,803  $270,289  $225,000  $175,000  $446,924  $1,539,260  
Unamortized debt issuance costs and debt premium, net
(5,213) 
Total Debt
$1,534,047  

Debt Ratios
Covenant
Amount
Net Debt to Annualized Current Quarter Adjusted EBITDAn/a5.7x
Trailing Twelve Month Fixed Charge Coverage Ratio
> 1.5x3.1x
Total Leverage Ratio< 60.0%41.5%
(1) Effective interest rate incorporates the stated rate plus the impact of interest rate cash flow hedges and discount and premium amortization, if applicable.
(2) For the $500 million revolving line of credit, the effective interest rate is calculated based on one month LIBOR plus an applicable margin of 1.30% and excludes fees which range from 0.15% to 0.20% for unused borrowings.

14

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Supplemental Schedule 4 (continued)
Debt and Equity Capitalization
As of December 31, 2019
(unaudited)

Preferred Shares and Units
Outstanding
6.000% Series A cumulative redeemable preferred shares of beneficial interest8,727,119  
6.000% Series A-1 cumulative redeemable preferred units642,982  
Common Shares and Units
OutstandingIf Converted
Common shares of beneficial interest59,633,329  59,633,329  
Restricted common shares25,779  25,779  
Total shares outstanding
59,659,108  59,659,108  
Operating partnership units30,188,305  30,188,305  
DownREIT operating partnership unit equivalents
1,848,261  1,848,261  
Total operating partnership units
32,036,566  32,036,566  
Long-term incentive plan units(3)
519,566