ANNUAL REPORT 2025
IMPORTANT
INFORMATION
TABLE OF
CONTENTS
ABOUT THIS REPORT
Welcome to National Storage REIT's 2025 Annual Report which reports our performance for the financial year
1 July 2024 - 30 June 2025.
THE 2025 REPORTING SUITE INCLUDES:
Annual Report - a review of FY25 performance, strategy and governance.
Financial Report - FY25 financial accounts and detailed financial performance.
All of NSR's reporting is available online at nationalstorageinvest.com.au.
Sustainability Report - outlines NSR's approach to sustainability. The 2025 Sustainability Report will be released prior to National Storage REIT's AGM and will be available online at nationalstorageinvest.com.auat that time.
ENTITIES
National Storage Holdings Limited
ACN 166 572 845 ("NSH" or the "Company")
National Storage Property Trust ARSN 101 227 712 ("NSPT") together form the stapled entity National Storage REIT ("NSR" or the "Consolidated Group").
RESPONSIBLE ENTITY OF NSPT
National Storage Financial Services Limited ("NSFL") ACN 600 787 246 AFSL 475 228
Level 16, 1 Eagle Street, Brisbane QLD 4000
OUR BUSINESS 4
FY25 PERFORMANCE HIGHLIGHTS 6
NSR STRATEGY 8
NSR PORTFOLIO 10
CHAIRMAN &
MANAGING DIRECTORS' REPORT 14
INVESTMENT PARTNERS 18
THE YEAR IN REVIEW 21
BOARD OF DIRECTORS 24
CORPORATE GOVERNANCE 28
DIRECTORS' REPORT 30
FINANCIAL STATEMENTS 67
INVESTOR RELATIONS 142
CORPORATE DIRECTORY 143
DISCLAIMER
This is the Annual Report for National Storage REIT which comprises the combined assets and operations of National Storage Holdings Limited (ACN 166 572 845) and the National Storage Property Trust (ARSN 101 227 712). This report has been prepared by NSH and NSFL (ACN 600 787 246 AFSL 475 228) as responsible entity for NSPT. National Storage REIT (ASX: NSR) currently has stapled securities on issue on the Australian Securities Exchange ("ASX") each comprising one unit in NSPT and one ordinary share in NSH ("Stapled Securities").
The information contained in this report should not be taken as financial product advice and has been prepared as general information only without consideration of your particular investment objectives, financial circumstances or particular needs. This report is not an invitation, offer or recommendation (express or implied) to apply for or purchase or take any other action in respect of Stapled Securities.
This report contains forward-looking statements and forecasts, including statements regarding future earnings and distributions. These forward looking statements and forecasts are not guarantees of future performance,
and involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of NSH and/ or NSFL, and which may cause actual results or performance to differ materially from those expressed or implied by the forward looking statements and forecasts contained in this report.
No representation is made that any of these statements or forecasts will come to pass or that any forecast result will be achieved. Similarly, no representation is given that the assumptions upon which forward-looking statements and forecasts may be based are reasonable. These forward-looking statements and forecasts are based on information available to NSH and/or NSFL as of the date of this report. Except as required by law or regulation (including the ASX Listing Rules) each of NSH and NSFL undertake no obligation to update or revise these forward-looking statements or forecasts.
Certain financial information in this report is prepared on a different basis to the Financial Report, which is prepared in accordance with Australian Accounting Standards. Any additional financial information in this report which is not included in the Financial Report was not subject to independent audit or review by Ernst & Young.
Annual Report 2025 3
OUR
BUSINESS
National Storage is Australasia's largest self-storage provider, tailoring self-storage solutions to approximately 94,500 residential and commercial customers at more than 270 storage centres across Australia and New Zealand.
National Storage REIT is the only publicly listed, pure play, fully integrated, internally managed, owner and operator of self-storage centres in Australasia. The National Storage offering spans self-storage, business storage,
climate-controlled wine storage and trading, vehicle storage, vehicle and trailer hire, packaging supplies and insurance. In addition to the traditional self-storage offering, National Storage provides valued services for businesses including receipt and dispatch, corporate account management, forklifts and pallet jacks, and versatile, adaptable spaces to suit customers' needs. Each National Storage centre reflects our commitment to quality, convenience and service. At National Storage, you can expect secure, clean and modern premises and a team of professionals trained in providing efficient storage solutions.
APPROXIMATELY
94,500 RESIDENTIAL AND COMMERCIAL
CUSTOMERS AT MORE THAN 270
STORAGE CENTRES ACROSS AUSTRALIA AND NEW ZEALAND.
RICHLANDS, QLD
Annual Report 2025 5
FY25 PERFORMANCE HIGHLIGHTS
$2.58
NTA
per Stapled Security
FY24: $2.52
2.4%11.1cps
Distribution per
Stapled Security
FY24: 11.0cps
0.1cps11.9cps
Underlying Earnings per Stapled Security1
FY24: 11.3cps
5.3%$164.0m
Underlying Earnings1
FY24: $154.2m
6.4%IFRS PROFIT $236.1 MILLION (EPS 17.1 CENTS) | UNDERLYING EPS 11.9 CENTS FINANCIAL HIGHLIGHTS
OPERATIONAL HIGHLIGHTS
274
Number of Centres
FY24: 254
201,521,300
Square Metres of Net Lettable Area
FY24: 1,391,800
9.3%80.8%
Group4 Occupancy
FY24: 82.0%
1.2%$277.3
Group4 Revenue per Available Metre
FY24: $275.4
1.0%69%
Operating Margin3
FY24: 71%
2.0%679
Employees
FY24: 670
1.3%CAPITAL STRENGTH
$5.71b
Total Asset Value2
FY24: $5.07b
12.6%33%
Gearing
FY24: 26.6%
6.4%$605m
Undrawn Debt Capacity
FY24: $442m
$163m5.84%
Weighted Average Capitalisation
FY24: 5.91%
7bpAll comparisons are June 25 vs June 24, unless stated
- Underlying earnings is a non-IFRS measure (unaudited)
- Total Assets - Net of lease liabilities
- Excluding lease expense
- Group - Australia and New Zealand (208 centres)
Australia - 178 centres as at 30 June 2023
(excluding Wine Ark, managed centres and let-up centres)
New Zealand - 30 centres as at 30 June 2023 (excluding let-up centres)
QUEENSTOWN, NZ
Annual Report 2025 7
NSR
STRATEGY
OUR VISION:
To be a world leader in the provision of innovative and sustainable self-storage solutions
OUR MISSION:
United as one team, we commit to consistently and responsibly deliver on our four pillars of strategic growth
NSR
FOUR PILLARS
Market leading opportunities in combination with delivery capabilities to drive sustained growth
ORGANIC GROWTH ACQUISITIONS, DEVELOPMENTS & EXPANSIONS
TECHNOLOGY & AUTOMATION SUSTAINABILITY3
4
2
Instilling trust and confidence that we are building a resilient and sustainable business for our stakeholders
Leadership in development and implementation of innovative technology and automation
1
Optimising occupancy and rate growth on an individual centre basis, combined with prudent cost management
Annual Report 2025 9
Annual Report 2025 9
NSR
PORTFOLIO
DARWIN
NORTHERN TERRITORY
CAIRNS
274
TOTAL CENTRES
NORTH QUEENSLAND & TOWNSVILLE
WESTERN AUSTRALIA
35
3
SOUTH AUSTRALIA
QUEENSLAND
75
MACKAY
21
DEVELOPMENTS UNDER CONSTRUCTION
HERVEY BAY
SUNSHINE COAST & NOOSA
BRISBANE GOLD COAST
PERTH BUNBURY
10
ADELAIDE
NEW SOUTH WALES
53
VICTORIA
5
HUNTER & CENTRAL COAST
SYDNEY &
BLUE MOUNTAINS
WOLLONGONG & ILLAWARRA
CANBERRA
AUCKLAND BAY OF PLENTY HAMILTON
51 ALBURY
NEW ZEALAND 36274 TOTAL CENTRES
MELBOURNE
LATROBE VALLEY
WELLINGTON
21 DEVELOPMENTS UNDER CONSTRUCTION
NEW SOUTH WALES: 1 QUEENSLAND: 7
SOUTH AUSTRALIA: 1
VICTORIA: 5
WESTERN AUSTRALIA: 5
The National Storage portfolio continues to grow across Australia and New Zealand with storage centres conveniently located in capital cities and regional areas that exhibit drivers of storage demand.
As at 30 June 2025. Total centres includes 2 Wine Ark centres in NSW.
GEELONG
6
LAUNCESTON
HOBART
QUEENSTOWN CHRISTCHURCH DUNEDIN
NEW ZEALAND: 2
*Map not to scale.
TASMANIA
Annual Report 2025 11
AUSTRALIAN PORTFOLIO BY NLA | ||
REGION | CENTRES | NLA |
Melbourne | 44 | 244,700 |
Brisbane | 36 | 241,200 |
Perth | 35 | 198,900 |
Sydney | 20 | 112,300 |
Regional NSW | 20 | 81,600 |
Gold Coast | 15 | 79,000 |
Regional QLD | 12 | 74,200 |
Sunshine Coast | 12 | 67,200 |
Central Coast (NSW) | 13 | 59,500 |
Adelaide | 10 | 52,400 |
Canberra | 5 | 37,400 |
Tasmania | 6 | 23,000 |
Darwin | 3 | 17,000 |
Geelong | 4 | 16,400 |
Gippsland | 2 | 8,400 |
Toowoomba | 1 | 7,300 |
TOTAL | 238 | 1,320,500 |
NEW ZEALAND PORTFOLIO BY NLA | ||
REGION | CENTRES | NLA |
Auckland | 10 | 74,800 |
Wellington | 8 | 44,900 |
Christchurch | 6 | 22,900 |
Hamilton | 5 | 20,200 |
Dunedin | 2 | 17,400 |
North Island Regional | 4 | 16,400 |
Queenstown | 1 | 4,200 |
TOTAL | 36 | 200,800 |
PORTFOLIO STATISTICS
- JUNE 2025
PORTFOLIO COMPOSITION | ||
FY25 | FY24 | |
Freehold | 251 | 242 |
Leasehold | 11 | 11 |
Capital Partnership | 12 | 1 |
TOTAL | 274 | 254 |
WEIGHTED AVERAGE PRIMARY CAP RATE: 5.84%
TOTAL VALUATION ($ BILLION): $5.32
PORTFOLIO VALUATION
VALUATION | |||||
STATE | CENTRES | NLA | % | $M | % |
QLD | 69 | 414,100 | 27 | 1,484 | 28 |
NSW | 53 | 253,400 | 17 | 804 | 15 |
VIC | 48 | 240,100 | 16 | 970 | 18 |
NZ | 36 | 200,800 | 13 | 504 | 9 |
WA | 32 | 181,200 | 12 | 562 | 11 |
SA | 10 | 52,400 | 3 | 167 | 3 |
ACT | 5 | 37,400 | 2 | 155 | 3 |
TAS | 6 | 23,000 | 2 | 85 | 2 |
NT | 3 | 17,000 | 1 | 59 | 1 |
Investment properties under construction | - | - | 0 | 525 | 10 |
Capital Partnership | 12 | 101,900 | 7 | - | 0 |
TOTAL | 274 | 1,521,300 | 100% | 5,315 | 100% |
HARRISTOWN, QLD
* Valuations exclude JVs and assets held for sale Exchange Rate: 1.078
Annual Report 2025 13
Annual Report 2025 13
MAKE SPACE CAMPAIGN
CHAIRMAN & MANAGING DIRECTORS' REPORT
FY25 marks NSR's eleventh full year of operations post its Initial Public Offering (IPO) in December 2013. Our business had humble beginnings in Oxley, Brisbane 30 years ago when we built our first self-storage centre. Since then, we have grown to become the largest and only pure play, internally managed, publicly listed owner and operator of storage centres in the southern hemisphere, with over 295 centres either built, under construction or with development approval awaiting commencement. Our market capitalisation now exceeds $3.2 billion. Our total assets are valued at $5.8 billion, and total returns to securityholders have accumulated to more than 330% since IPO. Our compound annual growth rate (CAGR) for both our underlying earnings and total revenue of over 20% p.a. over
WE HAVE GROWN TO BECOME THE LARGEST AND
ONLY PURE PLAY, INTERNALLY
MANAGED, PUBLICLY LISTED OWNER
AND OPERATOR OF STORAGE CENTRES IN THE SOUTHERN HEMISPHERE
the last 11 years, stands as one of the best and most
consistently performing A-REITs over this period.
We have achieved significant milestones during FY25. Our FY25 earnings growth has manifested in a 10.4% increase in gross revenue from $355 million to $392 million with underlying earnings growing by 6.4% from
$154.2 million to $164.0 million. NSR's NTA increased by 6 cents from $2.52 to $2.58 as the value of NSR's portfolio rose by 9% to
$5.3 billion, with valuation uplift again driven largely by improved operational performance and
a weighted average portfolio capitalisation rate of 5.84%.
In FY25 NSR has been able to exceed its earnings guidance by achieving underlying earnings of 11.9 cps in FY25. This outcome has been built upon our ability to drive growth
in both rate per square metre of rented space which has increased by from $338/m2 to $347/m2, and REVPAM which has increased by 1.0% from $275/m2 to $277/m2.
Despite the entry of a number of new players into the local market, NSR has been able to utilise its first mover advantage to significantly expand its activities, from an operational, acquisition and development perspective. In FY25 alone we have deployed approximately $664 million across new acquisitions, completed developments and expansion opportunities. This is unrivalled in the Australian and New Zealand markets and underpins our exceptional and unique ability to identify, execute and capitalise upon
key opportunities in this sector. NSR will continue to balance its combined objectives of accretive growth, value creation and increasing EPS carefully in the coming years, to achieve optimal outcomes for its stakeholders.
Our total built capacity now stands at 1.52 million m2, an increase of over 9% year on year. This increase has been achieved through a combination of ongoing acquisition and development activity. We have made 12 existing centre acquisitions accounting for approximately 52,600m2, which we expect to be highly accretive to earnings in
future years and added 16 new development sites, backfilling the development pipeline to ensure further growth through ongoing development. The delivery of 14 newly completed development projects, comprising over 98,000m2 of additional NLA reflects NSR's increasing focus on highly value accretive new development
opportunities. Our significantly expedited development pipeline has over 50 current and future development projects comprising approximately 490,000m2 of new lettable area that is expected to be completed and brought online over the next two to three years. This will allow us to further build on our advantages of critical mass and economies of scale in the coming years.
NSR has approximately 250,000m2 of available capacity, sufficient to accommodate approximately 25,000 new customers across its portfolio, before reaching 90% occupancy. When filled this would take our gross revenue to approximately $500 million, equating to an additional $100 million in increased gross revenue, the majority of which
will flow to additional underlying earnings. To achieve this outcome, we are embracing new technology and marketing initiatives including our "Make Space" campaign, designed to increase NSR's market share of new enquiries and further boost our already impressive conversion rates of enquiries into sales, whilst finding further opportunities to manage costs from an operational perspective.
We remain focused on highly accretive acquisitions and new developments with an emphasis on building exceptional growth across all key areas of NSR's business. Our newly developed storage centres lead the industry in terms of sustainability initiatives including solar, LED lighting and highly efficient building processes such as adaptive reuse
of construction materials. In the last year alone, we have significantly increased our solar installations, adding solar PV systems to another 15 centres totalling 546kWp of capacity. NSR now has total solar capacity of 3,446KWp and produced approximately 4,220MWh of solar power in FY25. Our centre configurations are larger to optimise land
utilisation, maximise construction efficiency and minimise construction cost on a per square metre of built capacity basis. These increased centre sizes align closely with the upward trend and long-term growth in utilisation by our ever-expanding customer demographic.
NSR has built on its strong relationships with various joint venture parties and capital development partnerships in FY25. This has included completing the second tranche of the National Storage Ventures Fund (NSVF) which now comprises 16 properties deploying $498 million of total capital and resulting in $280 million of capital recycled to NSR's balance sheet. This helped NSR to reduce gearing and fund future acquisition and development activities.
NSR holds an approximate 25% interest in the NSVF, while GIC holds the remaining 75%.
NSR has also expanded its work with MAAS Group (ASX: MGH) with 8 new storage centres settled to date totalling
$68.5 million and several additional new projects under active consideration.
NSR has commenced work on a maturing asset recycling program which will facilitate ongoing capital recycling from high value mature and maturing self-storage assets, to assist in funding its future pipeline of acquisition, development and expansion activities.
LANSVALE, NSW - CONSTRUCTION
Capital management remains a core focus. NSR is well supported by its core lending group and has a healthy debt profile. Gearing currently stands at 33% with an ICR of 2.8 times. Ongoing capital recycling from new development and mature and maturing asset joint ventures and capital partnerships is expected to further strengthen NSR's balance sheet capacity in the short to medium term and provide for additional growth.
NSR has again extended and improved debt headroom during FY25 and further diversified its debt facilities. Total debt facilities increased to $2.5 billion following the issuance of NSR's inaugural $300m 3.625% 5 year Exchangeable Notes and negotiation of an additional A$325m and NZ$15m of debt facilities with relationship lenders. NSR
now has an average debt term to maturity of 2.9 years and undrawn committed facilities of $605m. NSR has also taken advantage of market conditions to further enhance
its hedging profile, increasing its proportion of debt hedged from 43% in June 2024 to 60% in June 2025.
NSR's capital management strategy remains conservative, and the company is very well positioned to execute its strategic initiatives from an ongoing acquisition and development perspective.
NSR's vision statement remains aspirational, "to be a world leader in the provision of innovative and sustainable self-storage solutions." Our mission is that "united as one
team, we commit to consistently and responsibly deliver on our four pillars of strategic growth."
Our Four Pillars of Growth Strategy include the following core principles:
Organic Growth - Optimising occupancy and rate growth on an individual centre basis combined with prudent
cost management;
Acquisitions, Developments and Expansions -
Market leading opportunities in combination with delivery capabilities to drive sustained growth;
Technology and Automation - Leadership in development and implementation of innovative technology and automation; and
Sustainability - Instilling trust and confidence that
we are building a resilient and sustainable business for our stakeholders.
NSR is a people-focused organisation that prioritises building and maintaining a high-performing workforce. We focus on attracting, supporting, and retaining skilled team members to drive performance at both the individual and organisational level. Our development initiatives include WellNS, which offers practical support across work and life, and NS Learn, our ongoing learning platform that provides employees with the tools and training required to build capability and contribute to long-term business outcomes.
Our 'NS Cares' program continues to support the communities in which we operate, focusing our impact on the important areas of medical research, mental health, diversity and safety, all housed under the umbrella of "creating safe spaces" - a cornerstone of our mission at NSR.
From an environmental sustainability perspective, ongoing initiatives continue to progress including solar, LED lighting and highly efficient building processes such as adaptive reuse of construction materials. Our 9th annual standalone Sustainability Report will detail NSR's progress across its four sustainability pillars, being strategy, people, environment and governance, with further information regarding our short, medium, and long-term sustainability targets, including NSR's commitment to reducing and offsetting its Scope 1 and 2 emissions by 2030.
From a technology and innovation perspective, NSR is committed to demonstrating leadership in the development and implementation of innovative technology and automation solutions specific to its business. Digital marketing also continues to be a critical area of investment, with a strong emphasis on evolving our digital channels
to harness the potential of emerging AI technologies, driving greater efficiency, delivering optimal customer experience, and ensuring NSR remains at the forefront of digital innovation.
In summary, our belief is that our strong, united team will continue to achieve extraordinary outcomes in FY26 and beyond, as it has done over the last 30 years since the commencement of our business. We are fully committed to the pursuit of excellence in our service delivery and the
achievement of the outcomes identified in our strategic plan to be executed over the next five years, to the benefit of all stakeholders in our business. Thank you all for your continued support as we progress to build and enhance Australia's premier self-storage property portfolio and business in years to come.
Anthony Keane
NON-EXECUTIVE CHAIRMAN
Andrew Catsoulis MANAGING DIRECTOR
INVESTMENT
PARTNERS
As National Storage continues to expand its footprint across Australia and New Zealand, the role of investment partners has become increasingly pivotal. Investment partners contribute capital and/or development expertise to support the acquisition, development, and operation of self-storage assets delivering mutually beneficial outcomes to all parties. National Storage has successfully added two new investment partners, GIC and MAAS Group, during the year and continues to work with its current investment partners to assess options
for future acquisition, development and redevelopment opportunities.
GICFollowing the successful establishment of our joint venture with GIC, NSR closed the first two tranches under the National Storage Ventures Fund, to pursue the
development and operation of self-storage centres across Australia. Under these tranches, total committed capital
of approximately $498 million is being deployed across 16 developments and recently opened centres. National
Storage and GIC continue to hold approximately 25% and 75% equity interests respectively, with National Storage acting as manager and developer of the assets.
MAAS GROUPThe MAAS Group partnership continues to pursue development opportunities, either by development (turnkey) or other arrangements. The relationship commenced in FY24, whereafter National Storage acquired nine high-quality assets, contributing over 34,000m² of additional net lettable area and strengthening NSR's market presence across NSW and the ACT.
PARSONS GROUPOur partnership with Parsons Group, a leading self-storage construction company in WA, continues to reinforce National Storage as a prominent player in the Perth market. Various sites in and around Perth have been identified as part of the arrangement, whereby Parsons Group constructs high-quality self-storage centres branded as National Storage. The relationship to date has delivered multiple new self-storage centres and expansions, with additional locations currently under design and construction. Over the last year, multiple new sites
have been reviewed and added to the development pipeline and are currently in various stages of due diligence and planning.
BRYAN FAMILY GROUP (BFG)National Storage and Bryan Family Group cemented their partnership in FY22 to jointly develop a site at Moorooka in Brisbane. In FY25, National Storage focused on managing
the Bundamba self-storage, following the successful completion and capital recycling of earlier development projects with the Bryan Family Group in FY24.
OTHER PARTNERSNational Storage continues to work with numerous other development partners for the construction of quality self-storage centres. These partnerships have delivered multiple new self-storage centres over recent years, with additional centres currently under construction across Australia and New Zealand. In addition, several centres are currently in various stages of design, planning and construction which, when delivered, will add further capacity to the National Storage network.
MIDLAND, WA
Annual Report 2025 19
THE YEAR
IN REVIEW
ASSET MANAGEMENTIn FY25, National Storage delivered revenue growth through the collaborative efforts of the broader Revenue Operations team by applying optimised revenue management principles through leveraging and building on AI-supported forecasting and sensitivity modelling. The
team successfully maximised occupied revenue growth and maintained key performance metrics despite demand-driven fluctuations in occupancy.
The 30 June 2025 Reportable REVPAM across the Australia and New Zealand portfolio (208 centres as at June 2023) was $277/m2, a 1% increase from the June 2024 result of
$275/m2. Occupancy across the portfolio on this same basis also reduced to 80.8% (June 2024: 82.0%).
Operational teams across Australia and New Zealand continued to perform strongly against controllable target measures, with a focus on sales training, team
accountability and development, and enhanced marketing strategies to drive improved conversion rates.
Further automation of reporting was also further strengthened, which improved visibility into centre performance enabling data-driven decision-making. These tools empowered Operational leadership to act on lead behaviours and conversion metrics with greater
precision, contributing to consistent revenue growth despite economic headwinds.
National Storage continued to enhance its internal sales platform, delivering a more seamless and responsive customer experience through targeted technology upgrades. Custom development and automation played a central role to ensure the business remains agile and well-positioned for continued growth.
ACQUISITIONS20 NATIONAL STORAGE Annual Report 2025
National Storage continues its growth strategy to strengthen and scale its portfolio of high-quality storage assets. This strategy will enable National Storage to
continue to position itself with an unrivalled cohesive network of self-storage centres in targeted markets.
The pursuit and execution of this growth strategy aligns with a key NSR Board pillar of Acquisitions, Developments and Expansions.
In FY25 National Storage successfully transacted, acquired and integrated 12 strategically positioned 'going concerns', 16 new development sites, and proactively continues
to deliberately pursue high quality acquisitions across Australia and New Zealand. National Storage's ability to integrate new assets into the existing portfolio, leveraging existing business operations for centre efficiencies and revenue growth, continues to deliver a competitive advantage. Scale, asset quality and performance, and sustainable growth are the cornerstones of the strategy.
DEVELOPMENT AND EXPANSIONNational Storage's focus on systematically expanding capacity with the delivery of high-quality new build
assets continues. Its Development and Expansion pipeline is delivering substantial additional lettable area into
the portfolio in a sustainable and structured manner. In addition, it also proactively undertakes selected centre optimisations to improve centre efficiency and add further built capacity where appropriate redevelopment opportunities exist.
In FY25, National Storage successfully completed 14 new developments, delivering an additional 98,000m2 of net lettable area to NSR and its capital partners.
National Storage currently has 21 major projects either under construction or with DA in place, and is targeting to complete construction of 13 of these in FY26. National Storage has a total development pipeline of 54 projects,
including the 21 currently underway. This pipeline provides the potential for an additional 489,000m2 of NLA over time, providing the opportunity to selectively continue to break ground on sites in new and existing markets over the coming years.
PERTH CENTRAL, WA
MARKETING AND CUSTOMER EXPERIENCE
The FY25 marketing strategy laid the groundwork for a renewed focus on brand messaging, highlighted by the launch of the Make Space campaign across billboards and digital platforms. This campaign has been integrated across all marketing channels, creating a consistent and impactful presence that resonates with our audiences.
Moving forward, Make Space will continue to be a central pillar of our brand communications, with plans to amplify its reach and engagement in future campaigns.
The Make Space campaign has been further promoted through our sponsorship channels, incorporating
key messaging through in-stadium signage, and through stadium activations. We also maintain regular
communications with our sponsorship partners, to ensure we remain front of mind both with major sponsors and their underlying supporter and customer bases.
Digital marketing continues to be a critical area of investment, enabling us to connect with customers at scale and with precision. This year, we have placed a strong emphasis on evolving our digital channels to harness the potential of emerging AI technologies, driving greater
efficiency and smarter targeting. By staying at the forefront of digital innovation, we have been able to outperform in
an increasingly competitive market, ensuring our brand remains relevant for customers.
Our Contact Centre continues to innovate by utilising technology to ensure the highest standards of customer experience is delivered. Notably, KPI's such as abandoned calls have reduced by nearly 50% on the previous year.
An in-house Centralised Monitoring Team has been implemented, ensuring customers have direct access to support 24 hours a day.
National Storage has maintained its support for charitable partners - Lifeline, the Mater Foundation, RizeUp and Youngcare through the NS Cares community support initiative. In addition, supporting a diverse range of organisations via our Community Units Program has broadened our impact to a wider range of charitable partners. This ongoing engagement highlights our dedication to the communities in which we operate.
Our continued focus on customers and brand experience has ensured National Storage maintains leadership in the industry.
WINE ARK
Wine Ark, part of the National Storage group, is Australia's leading provider of premium wine storage, safeguarding over two million bottles across 15 facilities. With clients in more than 20 countries,
Wine Ark is one of the most experienced businesses in the country dedicated to the precise care and management of fine wine. In addition to its core storage services, Wine Ark offers a curated wine sales platform, giving clients access to new releases from
renowned Australian and international producers. This offering also enables existing clients, restaurants, and wine enthusiasts to purchase surplus wines from Wine Ark's stored inventory.
Wine Ark completed its newest managed cellar in Coburg, Melbourne, successfully relocating operations from its Brunswick site. The fit-out of the Private Vault is expected to be finalised in Q1 FY26.
Throughout FY25, Wine Ark continued to deepen its engagement with the wider wine industry, proudly supporting initiatives led by The Len Evans Tutorial, Wine Communicators of Australia, the Sommeliers Association of Australia, and the Commanderie de Bordeaux (Australian Chapter).
BOARD OF
DIRECTORS
Anthony KEANE
Independent
Non-Executive Chairman
Anthony is an experienced finance and business executive with an extensive background in banking and business management. Prior to accepting his directorship with National Storage, Anthony held numerous leadership roles with a major trading bank principally in
business, corporate and institutional banking. He is actively involved in the business community through Non-Executive Director and Advisory Board roles, and finance advisory consultancies.
BSc (Maths), GradDipCorpFin, GAICD
Anthony is a Director of ASX listed EMvision Medical Devices Ltd (EMV). Anthony has a Bachelor of Science (Mathematics) from University of Adelaide and a Graduate Diploma in Corporate Finance from Swinburne. He is a Fellow of the Financial Services Institute
of Australasia, a Graduate of the Australian Institute of Company Directors and a Fellow of the CEO Institute.
Anthony is Chair of the Nomination Committee and is a member of the Audit and Risk Committee and Remuneration Committee.
Howard BRENCHLEY
Independent
Non-Executive Director
Howard has over 35 years' involvement in the Australian property industry, as an analyst, investor and fund manager. Howard cofounded Property Investment Research Pty Ltd (PIR) in 1989, which during the 1990s was considered a leading researcher of both listed and unlisted property funds. In 1998 Howard was instrumental in establishing the funds management business of APN Property Group Limited. During this period, he was responsible for the establishment and operations of a number of funds investing both directly and indirectly in real estate.
BEc
Since 1998, Howard has been a director (or the director of the responsible entity) of numerous listed and unlisted real estate investment vehicles.
Howard is Chair of the Audit and Risk Committee and is a member of the Nomination and Remuneration Committees.
Simone HASLINGER
Non-Executive Director
BCom (Finance), LLB
Inma brings her finance, audit and risk expertise and diverse range of commercial experience to the NSR Board. She has held finance
Inma BEAUMONT
Independent
Non-Executive Director
leadership roles both in the UK and Australia at Foster Wheeler Energy, Procter & Gamble, Citi and BOQ.
Inma is currently a non-executive director and chair of the audit and risk committee for the Queensland Children's Hospital and Jabiru Community Services Ltd. In addition, she serves on various
BA Hons (Economics and Commerce), FCCA, GAICD
government bodies and not for profit organizations as chair, deputy chair and/or chair of finance, audit and risk. She holds a BA Hons (Economics and Commerce) from the University of Valencia, Spain, is a Fellow of the Association of Chartered Certified Accountants, and is a Graduate of the Australian Institute of Company Directors.
Inma is a member of the Audit and Risk, Nomination, and Remuneration Committees.
Scott SMITH
Independent
Non-Executive Director
Scott has over 25 years' experience in the Technology and Telecommunications sector across the Asia Pacific region, including a breadth of experience gained from working for large global telecommunication organisations before founding his own successful
BBus (Marketing)
managed service provider company. Scott holds a Bachelor of Business (Marketing) from the Queensland University of Technology and has extensive experience in technology and leadership positions. Having successfully co-founded Comlinx (Managed Service Provider) in 2006, he went on to sell that business to ASX listed Telecommunications provider Over the Wire (ASX: OTW) in 2018 and continued in the senior leadership team, taking over the role of CEO of OTW in February 2020. OTW has subsequently been sold to Aussie Broadband (ASX: ABB).
Scott is currently serving on the Advisory Board and as an investor at Rockfish Data Inc. a San Francisco-based software company focused on developing synthetic data for AI and machine learning applications.
Scott is Chair of the Remuneration Committee and is a member of the Audit and Risk Committee and Nomination Committee.
Simone brings 20 years' investment banking experience, where she provided strategic and capital advice to a diverse range of clients.
Simone's most recent role was Co-Head of Equity Capital Markets (Australia) for J.P. Morgan, and she was also previously an Equity Capital Markets executive at Deutsche Bank. Simone is also CEO of quantitative fund manager, East Coast Capital Management (ECCM), and serves
as an Independent Non-Executive Director of ASX-listed DroneShield Limited (ASX:DRO).
Simone graduated from the University of New South Wales with a Bachelor of Commerce (Finance) and Bachelor of Laws.
Simone is a member of the Audit and Risk, Nomination, and Remuneration Committees.
Annual Report 2025 25
EXECUTIVES
Managing Director
Andrew CATSOULIS
A founder of the National Storage business, Andrew has over 25 years' of specific self-storage industry expertise in areas including acquisitions, developments, and the integration and operation of 'greenfield' and developed self-storage centres.
Andrew is a qualified solicitor who has been admitted to the Supreme Court of Queensland. He has had extensive experience in the fields
LLB, GradDip Project Mgmt
of finance, commercial and property law during his tenure at major law firms both in Australia and overseas. He is also a qualified project manager and has considerable property development experience both within the storage industry and in broader markets.
Stuart OWEN
Chief Financial Officer and Chief Investment Officer
Andrew was instrumental in the successful acquisition and integration of the original pre-existing Group portfolio, led the Company through the IPO, and planned and negotiated the acquisition of the Southern Cross portfolio in 2016. He has led the company in its growth from a single centre in 1996 to over 200 centres today and has been primarily responsible for charting its strategy over that period.
Stuart joined National Storage in late 2014, with extensive experience in the energy sector in coal and gas fired power generation. He
has held wide ranging finance and commercial management roles, including as Commercial Manager for Energy Developments Limited.
BBus, CPA, GAICD
Prior to this, Stuart was Commercial Manager on the delivery of a multi-site gas fired power generation project and micro-LNG plant. He has significant experience in project financing, mergers and acquisitions, and project development. Stuart holds a Bachelor of Business, is a Certified Practising Accountant and is a graduate of the Australian Institute of Company Directors.
BPropEcDev
Head of Acquisitions and Developments
Nick CRANG
Nick has played an integral role in catalysing the growth and expansion of the company's asset base since 2017. As a driving force behind the establishment and continuous management of National Storage's Development division, Nick currently leads and oversees all development and acquisition activities within the organisation with his expertise that spans public, private, and not-for-profit sectors, in commercial, industrial, and residential property development. Nick holds a bachelor's degree
in Property Economics & Development. Nick's focus remains firmly on identifying and pursuing strategic expansion opportunities through both development and acquisition within his executive capacity.
Tanya MANGOLD
Company Secretary
BCom, LLB, LLM, Cert. Adv Tax, FGIA
Emily, appointed as Chief Counsel at National Storage in 2020 and subsequently promoted to General Counsel in 2023, oversees the legal function of the organisation. Emily holds a Bachelor of Laws (Hons) , a Bachelor of International Studies and has been admitted to the Supreme Court of Queensland and South Australia. Emily is a graduate of the Australian Institute of Company Directors.
General Counsel
Emily ACKLAND
Emily has over 17 years' experience in the legal industry having spent 14 years in private practice with HopgoodGanim and Piper Alderman's
LLB (Hons) and BintSt, GAICD
Corporate, Mergers and Acquisitions and Commercial teams prior to her holding a Corporate and Commercial in-house role with Canstar.
Company Secretary
Katherine HAMMOND
Since joining National Storage, Emily has played a key role in steering the company's legal strategy. Her legal acumen, combined with a sound understanding of the business landscape, positions her to work closely with the other members of the Executive in driving the company's pillars, notably, organic growth, acquisitions, developments and expansions, technology and innovation, and sustainability.
Katherine was appointed Company Secretary on 27 March 2024 on a part-time interim basis and joined National Storage on a full-time permanent capacity in September 2024.
Katherine holds a Bachelor of Laws (Hons) and Bachelor of Arts (majoring in Economics and French) from the University of Queensland, and is admitted as a solicitor of the Supreme Court of Queensland. Katherine is a qualified (Chartered) Company Secretary, holding a Graduate Diploma of Applied Corporate Governance from the Governance Institute of Australia.
LLB (Hons), BA, AGIA,
GradDipLegPrac
Katherine has over 15 years' of legal and company secretarial experience advising numerous ASX-listed companies. Katherine has previously served as company secretary and in-house legal counsel for dual listed Michael Hill Jeweller (ASX/NZX: MHJ). She has over 13 years' of private practice experience with major law firms in Australia, including as a Partner of
a national commercial law firm, where she specialised in mergers & acquisitions, equity capital markets, corporate advisory, governance and risk management.
Tanya was appointed as joint Company Secretary in June 2025 for a fixed term until August 2026 to provide parental leave coverage.
Tanya has more than 20 years of corporate legal experience, including in private practice at Clayton Utz and in-house. Tanya holds qualifications in law and commerce, and is an experienced company secretary, having previously worked in that role at CleanCo Qld Limited, Sniip Limited, Collins Foods Limited (ASX: CKF) and NEXTDC Limited (ASX: NXT); and was the Manager of Corporate Governance/ Deputy Company Secretary at Virgin Australia.
Annual Report 2025 27
SUSTAINABILITY
This year will see the release of National Storage's ninth stand-alone sustainability report. The report is expected to be released in October 2025, prior to National Storage's AGM and will be published online at nationalstorageinvest.com.au. The report will detail National Storage's progress across its four sustainability pillars, being strategy, people, environment, and governance. Further, the environmental, social and governance aspects of the organisation will be considered through our short, medium, and long-term sustainability targets, including National Storage's commitment to reducing and offsetting its Scope 1 and 2 emissions by 2030.
CORPORATE GOVERNANCE
The National Storage Boards are responsible for ensuring that the organisation has an appropriate corporate governance framework in place to protect and enhance the entities' performance and build sustainable value for securityholders. The corporate governance framework
is based on the ASX Corporate Governance Council's Corporate Governance Principles and Recommendations (4th Edition). More information is provided in NSR's Corporate Governance Statement, which can be viewed online at nationalstorageinvest.com.au.
CORPORATE
GOVERNANCE
WYNUMM, QLD
Annual Report 2025 29
KEY HIGHLIGHTS
Group | FY25 | FY24 | Change |
Total Revenue | $392.4m | $355.4m | 10.4% |
IFRS profit after tax | $236.1m | $230.3m | 2.5% |
Basic earnings per stapled security | 17.07cps | 16.89cps | 1.1% |
Underlying earnings(1) | $164.0m | $154.2m | 6.4% |
Underlying earnings per stapled security(1) | 11.9cps | 11.3cps | 5.3% |
Net operating cashflow | $218.6 | $184.4m | 18.5% |
Distribution per security | 11.1cps | 11.0cps | 0.9% |
Portfolio | At June 2025 | At June 2024 | Change |
Number of centres owned/managed & licenced (total) | 262/12 (274) | 253/1 (254) | 9/11 (20) |
Reportable Group Occupancy(2) | 80.8% | 82.0% | (1.2%) |
Reportable Group REVPAM(2) (Revenue per available metre) | $277 | $275 | 1.0% |
Weighted Average Primary Cap Rate | 5.84% | 5.91% | (0.07%) |
Investment Properties(3) | $5.32b | $4.88b | 9.0% |
Portfolio Valuation Uplift | $178m | $143m | 24% |
Acquisitions / Centres(3,5) | $138m / 12 | $147m / 12 | ($9m) / 0 |
Net Lettable Area (NLA) (sqm)(5) | 1,521,300 | 1,391,800 | 9.3% |
Balance Sheet | At June 2025 | At June 2024 | Change |
Total Assets(6) | $5.80b | $5.17b | 12% |
Total Debt(6) | $1,896m | $1,399m | $497m |
Interest Rate Swaps(6) | $1,133m | $596m | $537m |
Gearing | 33.0% | 26.6% | 6.4% |
Weighted average cost of debt (Inc swaps and exchangeable notes) | 4.63% | 5.14% | 51bps |
Weighted average debt tenor (years) | 2.9 | 3.3 | (0.4) |
Net Tangible Assets (NTA) | $2.58 | $2.52 | 2.4% |
PRINCIPAL ACTIVITIES
Listed on the ASX in December 2013, NSR's vision is "to be a world leader in the provision of innovative and sustainable self-storage solutions". NSR is the largest self-storage owner/operator across Australia and New Zealand, providing tailored storage solutions to approximately 95,000 customers. NSR's extensive portfolio of owned, managed and licenced centres continues to expand, having grown the network from 62 centres at IPO in December 2013 to 280 centres at the date of this Directors' Report.
Growth in built capacity or Net Lettable Area (NLA) is achieved through a combination of acquisition, development, expansion and redevelopment with 14 newly constructed and expanded storage centres delivered during the reporting period adding 98,000m2 of NLA and a further 54 projects in various stages of design, construction and delivery. During FY25 NSR acquired 12 existing storage centres (52,600m2 of NLA) and 16 development sites, backfilling the development pipeline and providing capacity for continued to growth.
NSR now manages approximately 140,000 storage units across over 1.5 million square metres of NLA in Australia and New Zealand. NSR's storage centres have the largest average NLA per centre of its listed Australian peers at 5,600m2 per centre, providing greater scope for centre profitability and better economies of scale.
1 Underlying earnings is a non-IFRS measure (unaudited), see table within Operating Results for reconciliation
2 Reportable Group - Australia and New Zealand (208 centres)
Australia - 178 centres as at 30 June 2023 (excluding Wine Ark and let-up centres) New Zealand - 30 centres as at 30 June 2023 (excluding let-up centres)
Investment properties (including assets held for sale) net of lease liability
Excluding transaction costs
Includes capital partnerships
NZD/AUD exchange rate of 1.07805
DIRECTORS'
REPORT
ROCKVILLE, QLD
In FY25 NSR delivered and expanded on two significant capital partnership and development arrangements. The first with MAAS Group will enable NSR to strengthen its coverage through important growth areas across NSW and the ACT. The arrangement with MAAS Group has already delivered eight new high performing new centres to NSR with additional locations having been identified for delivery in FY26 and beyond.
The National Storage Ventures Fund ("NSVF or the Fund"), a joint venture with GIC, has been established to pursue the development and operation of new self-storage centres in Australia in a cost effective and capital efficient fashion. NSR holds an approximate 25% interest in the Fund, while GIC will hold the remaining 75%.
Tranche 1 for the fund was settled in October 2024 (10 self storage assets) and Tranche 2 in June 2025 (6 self storage assets). Approximately $498m of total capital is being deployed across both tranches, within 12-18 months from tranche commencement. The Fund has seen approximately $280m of capital returned to NSR, used to reduce gearing in the short term and fund the ongoing value accretive development pipeline.
Further tranches of the Fund are planned and are expected to be delivered during FY26.
NSR successfully completed its inaugural $300m Exchangeable Notes issue in FY25. The 5 year Notes priced at a coupon of 3.625%, have succeeded in materially lowering NSR's average cost of debt. In addition, the Notes successfully diversified NSR's sources of debt and extended average maturities.
In the last quarter of FY25, NSR acquired a strategic interest in Abacus Storage King (ASX: ASK) ("ASK"). At 30 June 2025, NSR held a 7.8% interest in ASK at a cost of $149.5m, excluding brokerage fees. This investment has subsequently increased to 10.35% at the date of this report.
The value of Investment Properties(3,5) on NSR's balance sheet has increased by 9% during the reporting period to $5.31 billion as at 30 June 2025.
Of the 280 self-storage properties in the NSR portfolio at the date of this report, ownership is as follows:
256 self-storage centres owned by NSPT group (freehold centres)
11 self-storage centres operated as long-term leasehold centres (leasehold centres)
13 self-storage centres held in capital partnerships and managed by NSR
NSR continues to pursue the strategy of converting leasehold centres to a freehold centre by acquiring the underlying freehold property interest from the current owners or developing centres in close proximity to the Leasehold centre and not renewing the lease at expiration. Two centres are currently under construction that will see two more existing leasehold arrangements exited over the next 12-18 months.
BUSINESS STRATEGY
NSR's objective is to deliver investors consistent and growing income and distribution streams from a portfolio of geographically diversified high-quality self-storage assets. NSR strives to drive income and capital growth through active asset and portfolio management (including the acquisition, development, expansion or redevelopment and portfolio recycling of self-storage centres).
The key drivers of NSR's business are:
Organic Growth - NSR achieves organic growth through a combination of occupancy and rate increases assessed on an individual centre basis.
Acquisitions, Development and Expansion - NSR has executed over 185 high-quality acquisitions since its IPO in December 2013, a growth rate unmatched in the Australasian market. NSR has proven in-house expertise which enables it to identify, negotiate and deliver strategic development, expansion and refurbishment projects in an efficient and effective manner.
Technology and Innovation - NSR leads the Australasian storage industry with new technology and innovation projects designed to improve operational efficiency and enhance the customer and employee experience, providing an important competitive advantage over its peers.
Sustainability - through NSR's comprehensive Environmental, Social and Governance ("ESG") framework, NSR focuses on creating trust and confidence that delivers sustainable outcomes for stakeholders and the environment.
Further details on these key business drivers can be found elsewhere in the NSR 2025 Annual Report and NSR's Sustainability Report.
REVIEW AND RESULTS OF OPERATIONS
The Financial Statements of NSR are prepared in compliance with Australian Accounting Standards and the requirements of the Corporations Act 2001 (Cth).
OPERATING RESULTS
IFRS Profit after tax for the reporting period was $236.1 million delivering IFRS EPS of 17.1 cents per stapled security. The operating performance of the portfolio for the reporting period and the successful generation of additional corporate revenue saw underlying earnings increase by 6.4% to $164.0 million.
NSR achieved underlying earnings per stapled security of 11.9cps for the 2025 financial year, an increase of 5.3% over the previous 12 months.
Total revenue continued to increase in FY25, up 10.4% to $392.4m. Occupancy across the Reportable Group has reduced by 1.2% to 80.8%. In the second half of FY25, National Storage has launched a number of new marketing and promotional initiatives resulting in increased occupancy growth in the last quarter, positioning the Company well for further occupancy increases in FY26.
NSR remains well positioned to capitalise on the future growth in the industry and economy. Continued growth in Reportable Group rate of 2.5% to $347/m2 helped deliver Reportable Group REVPAM growth of 1.0% to 277/m2. REVPAM growth was strongest across Australia (+1.8%) with challenging economic conditions in New Zealand leading to a reduction in New Zealand REVPAM of 6.8%. Let-up centres (those recently built or expanded) filled strongly with approximately 11,000m2 of new NLA filled during the reporting period and an additional 73,500m2 of built NLA added to the portfolio.
The operational result for the full year reflects the highly resilient nature of NSR's business model and its well-executed growth strategy, as well as the high level of competency and commitment demonstrated by the NSR team across all aspects of the business.
NSR continues to expand its sources of corporate income in FY25, representing a reliable additional income stream via ongoing management and project delivery fees for capital partnerships which continues to contribute to NSR's strong financial performance.
$m | FY25 | FY24 |
IFRS Profit after tax | $236.1 | $230.3 |
Plus tax expense | $12.3 | $11.5 |
Plus restructuring and other costs | $3.6 | $4.9 |
Plus amortisation of interest rate swap reset | $1.4 | $3.5 |
Plus Exchangeable Notes transaction costs | $6.9 | - |
Plus contracted gains on sale of investment properties | $5.1 | - |
Less amortisation of Exchangeable Notes transaction costs | ($1.0) | - |
Less fair value adjustments and foreign exchange movement | ($90.2) | ($86.3) |
Less lease diminution on leasehold investment properties | ($10.2) | ($9.7) |
Underlying earnings | $164.0 | $154.2 |
Weighted average securities on issue (refer note 20) | 1,382,976,027 | 1,361,883,416 |
Underlying earnings per stapled security | 11.9cps | 11.3cps |
CASH MANAGEMENT
Cash and cash equivalents as at 30 June 2025 were $65.5 million compared to $55.2 million at 30 June 2024. Subsequent to 30 June 2025, the cash balance has been utilised to facilitate further acquisitions and the upcoming payment of the distribution on 2 September 2025. Net operating cashflow for the year increased 18.5% to $218.6 million (2024: $184.4 million), impacted by the collection of corporate income accrued in the previous year.
An interim distribution of 5.5 cents per stapled security ($76.0 million) was paid on 3 March 2025 with an estimated final distribution of 5.6 cents per stapled security ($77.9 million) declared on 18 June 2025, to be paid on 2 September 2025. This totals a full year distribution of 11.1 cents per stapled security, against underlying earnings per security of 11.9 cents, representing a payout ratio of 93%, within the target payout ratio of 90% -100% of underlying earnings.
During the reporting period NSR once again offered a Distribution Reinvestment Plan (DRP) which enables eligible securityholders to receive part or all of their distribution by way of securities rather than cash.
For the December 2024 interim distribution, approximately 28% of eligible securityholders (by number of securities) elected to receive their distributions as stapled securities. This raised equity of $21.2m from the issue of 9,635,243 stapled securities during the year at a DRP price of $2.1982.
The June 2025 final distribution has seen approximately 37% of eligible securityholders (by number of securities) elect to receive their distributions as securities, totalling $28.9m. The DRP price was set at $2.3916 which will result in approximately 12.1m new securities being issued.
NSR actively manages its debt facilities to ensure it has adequate investment capacity to fund future acquisitions, developments and working capital requirements. During the year ended 30 June 2025, the Group refinanced existing facilities which previously had maturities in FY25 and FY26, issued its inaugural $300m 3.625% 5 year Exchangeable Notes, and negotiated $325m of additional AUD facilities and $15m of additional NZD facilities (AUD equivalent $13.9m). As a result of these initiatives, Group finance facilities increased to $2,493m
as at 30 June 2025 (30 June 2024: $1,841m) with approximately $605 million of committed undrawn facilities available.
NSR's weighted average debt tenor as at the Reporting Date is 2.9 years (2024: 3.3 years). NSR actively monitors its debt structure with the aim of increasing diversity of funding sources and extending the average debt tenor. NSR successfully completed its $300m Exchangeable Notes issue in FY25. The 5 year Notes, which priced at a coupon of 3.625%, materially lowered NSR's average cost of debt.
NSR's gearing level as at 30 June 2025 was 33.0% (2024: 26.6%) against a target gearing range of 25% - 40%, providing flexibility and the ability to act expeditiously on acquisition and development opportunities as they arise.
NSR utilises interest rate derivatives as part of its risk management strategy to manage exposure to interest rate fluctuations. As at the Reporting Date, interest rate derivatives totalling $1,113 million were in place (2024: $596 million) with expiry dates ranging from July 2025 to September 2030.
ACQUISITIONS AND INVESTMENTS
NSR considers its ability to identify, acquire and integrate quality self-storage assets to be one of the key drivers of its growth strategy and best-in-sector success to date. NSR's dedicated in-house acquisitions team leads the market in identifying, facilitating and transacting on acquisitions that are considered to be appropriate for inclusion in the NSR portfolio. NSR critically assesses each potential location against criteria such as:
Location and surrounding demographics of local catchment area;
Competition and potential for future competition within the primary (3km) and secondary (5km) competitive radial areas;
Exposure to passing traffic - typically a minimum of 30,000 cars per day targeted;
Build quality and opportunities for value adding such as expansion potential, surplus land, occupancy runway or potential for rate per square metre improvement;
Proximity to major drivers of storage demand such as retirement villages, new housing development and / or medium density apartment or townhouse developments and major shopping centres; and
Environmental, sustainability and climate change risk.
NSR has executed on its focused acquisition strategy with 12 new storage centres and 16 development sites acquired during the reporting period for a total of $303 million.
DEVELOPMENTS AND EXPANSIONS
NSR has established an unrivalled development pipeline in various stages of construction, planning and design. NSR's dedicated in-house development team leads the market in the design and delivery of state of the art, fit for purpose self storage centres in locations that are typically under supplied. As at 30 June 2025, there were 54 projects in NSR's pipeline, spread across several delivery structures. These include turnkey developments, development management agreements (DMAs), greenfield and brownfield development projects, and expansions. The majority of the current pipeline is forecast to be delivered over the next 2-3 years, creating approximately 490,000m2 of important new built capacity, which will create significant opportunity for enhanced revenue generation and value creation into the future.
NSR re-values all freehold and leasehold investment properties at each reporting period. At 30 June 2025 this process has been undertaken by external independent valuers (m3 Property, Four Leaves Property, and Cushman & Wakefield). The external valuers have performed full property valuations for a third of the portfolio, and independent desktop assessments for the remaining assets. Following this process, the weighted average primary capitalisation rate of NSR's portfolio has decreased by 0.07% to 5.84% and the value of the 30 June 2025 portfolio increased by $178 million. This contributed to the 2.4% increase in NTA which now sits at $2.58 per stapled security, up from $2.52 per stapled security in June 2024.
Region
Number of Centres
NLA (m2)
New South Wales
10
41,800
Western Australia
1
6,400
New Zealand
1
4,400
Total
12
52,600
Development Sites
16
Total
28
Acquisitions for the year ended 30 June 2025
INVESTMENT IN JOINT VENTURES AND ASSOCIATES
In June 2024, NSR established the new National Storage Ventures Fund ("NSVF") in partnership with GIC ("GIC"). During FY25, NSR executed Tranche 1 and Tranche 2 of the fund. NSVF acquired 16 self-storage assets across both tranches, providing NSR with net proceeds of approximately $280m, which was used to reduce debt and fund growth opportunities. NSR acts as the manager of all operational and development activities of NSVF and receives fees for undertaking activities on behalf of NSVF. The completion of these transactions demonstrates the strong institutional demand for high quality storage assets, with capital partnerships of this nature helping to deliver accelerated growth in a capital-efficient manner for NSR and providing a recurring source of additional corporate income.
National Storage and Bryan Family Group ("BFG") have continued a long standing partnership in FY25. In FY24, capital was recycled from previous projects into a new self-storage development at Bundamba, west of Brisbane, within the BFNS joint venture vehicle.
NSR has been appointed to manage the above projects and generates income from its provision of a range of services including design and development, project management, corporate administration and centre operations.
LIKELY DEVELOPMENTS
NSR utilises its position as Australia's first ASX listed, pure play, internally managed, fully integrated, sector specific, self-storage REIT in order to execute its stated "Four Pillars" strategy. This embodies:
Organic growth through increases in rate and occupancy at an individual centre level, overlayed with prudent cost control;
Growth by acquisition of quality storage centres across Australia and New Zealand, development, expansion and redevelopment activity focused on high-quality new self-storage developments in key locations and evaluating its existing portfolio for expansion, development or re-development opportunities, while exploring portfolio recycling opportunities;
Technology and innovation - harnessing new technology, innovation and AI to bring further efficiencies and economies of scale to NSR's existing business model: and
Sustainability through NSR's comprehensive Environmental, Social and Governance framework, NSR focuses on delivery outcomes that are sustainable, for investors, employees, partners and the environment, while maximising returns for its stakeholders.
DIVIDENDS AND DISTRIBUTIONS
NSR has paid or declared distributions totalling 11.1 cents per stapled security for the reporting period, representing 93% of underlying earnings per stapled security of 11.9 cents:
An estimated final distribution of 5.6 cents per stapled security for the 6 months to 30 June 2025. The distribution is expected to be paid on 2 September 2025 and is expected to contain a tax deferred component.
An interim distribution of 5.5 cents per stapled security for the period 1 July 2024 to 31 December 2024 which was paid on 3 March 2025 which included a tax deferred component.
ENVIRONMENTAL REGULATION
NSR's operations are not regulated by any environmental law of the Commonwealth or a State or Territory enacted specifically for NSR. However, as part of its operations, NSR must comply with broader environmental laws. NSH management, on behalf of NSR has procedures in place to identify and ensure compliance with such laws including identifying and obtaining necessary approvals, consents or licences.
There have been no known material breaches during the reporting period of any environmental laws to which NSR is subject.
RISK MANAGEMENT
NSR is committed to maintaining a robust system of risk oversight, management, and internal controls, fostering an environment where effective risk management practices are deeply ingrained within the business. NSR remains committed to proactively and efficiently managing risks throughout the organisation to instil confidence in the Board and other stakeholders.
The Board of Directors holds the responsibility for ensuring the efficacy of NSR's risk management framework, which assesses and addresses risks concerning operational, regulatory, reputation, and financial aspects impacting the business.
This framework establishes the basis and protocols for designing, implementing, monitoring, reviewing, and continuously improving risk management throughout the organisation, aligning with the principles outlined in the ASX Corporate Governance Principles and Recommendations (Fourth Edition) and incorporating guidelines from the Australian Standard AS/NZS ISO 31000:2018 Risk management - Principles and guidelines.
The Audit and Risk Committee supports the Board in overseeing the effectiveness of NSR's risk management system by reviewing compliance in areas identified as particularly sensitive to risk. The Committee Charter is available to view on NSR's investor website: nationalstorageinvest.com.au/governance/.
The Board has entrusted the Managing Director with overall operational responsibility for the risk management
function. The Managing Director receives support from the Executive Management Team, with the Chief Financial Officer / Chief Investment Officer overseeing financial risks and financial reporting matters, and the
Company Secretary / Head of Risk handling the administration of the risk management function, supported by the General Counsel.
Each department assumes responsibility for identifying and managing their respective risks. To promote consistency in capturing and reporting risks, NSR operates an enterprise-wide risk management system across the Group.
During FY25, NSR was met by variable economic conditions, interest rate volatility, and emerging regulatory and policy changes. NSR continued to consider both operational and responsible entity functions in applying NSR's risk management principles when communicating, identifying, analysing, evaluating, and treating risks and opportunities across the business. For further detail, please refer to NSR's Risk Management Policy available on NSR's investor website: nationalstorageinvest.com.au/governance/.
Moving forward, NSR remains steadfast in its commitment to positioning NSR for enduring success by promptly addressing risks that could impede the realisation of strategic objectives.
KEY RISKS AND OPPORTUNITIES
A number of the risks and opportunities faced by NSR and how NSR responds to these risks and opportunities are set out below. These are not NSR's only risks and opportunities and are not in order of importance.
Key Risks and Opportunities | How NSR is responding |
Strategic and Financial Performance Strategic and Financial performance of NSR's business is subject to various risks including but not limited to economic conditions and legislative and regulatory factors. |
|
Environmental and Climate Change Environmental and Climate Change risks as well as risk arising from legislative changes may impact NSR's strategic and operational business |
|
Key Risks and Opportunities | How NSR is responding |
and where possible are required to be mitigated. There is opportunity for NSR to consider and where appropriate implement ESG initiatives to respond to securityholder expectation in the market whilst delivering operational efficiencies to the business. |
|
Economic and market conditions Variable rates of economic growth and market activity can impact Group performance, as can changing consumer practices and trends, including the housing market, population and migration growth, unemployment, wage growth, the rate of inflation, and consumer sentiment. |
|
Capital Management Maintaining a strong and appropriate capital structure underpins NSR's ability to deliver on its strategy and meet its objectives. The importance of appropriate and effective capital management is critical to mitigate against risks resulting from changing economic and funding environments. |
and surplus cash investments |
Acquisitions and Developments Prevailing micro and macroeconomic environments may impact NSR's decisions with respect to Acquisitions and Developments. These factors and risks relating to each transaction are considered at the time to ensure the expansion of the Group's portfolio and development pipeline in line with NSR's strategic direction. |
|
Technology, Cyber and Data Security Data loss, breach or damage, cyber-attacks, business interruptions and reputational risk are risks faced by all businesses in the current environment including NSR. |
|
Key Risks and Opportunities | How NSR is responding |
| |
Health, Safety and Wellbeing Alignment with health and safety standards and regulations safeguards employees, customers and contractors from potential health and safety risks, in accordance with NSR's safety vision of 'no harm to anyone at any time' |
|
Compliance and regulatory NSR maintains best practice governance and compliance practices to mitigate risks of noncompliance whilst managing strategic and business continuity in the event of compliance or regulatory change. |
|
NATIONAL STORAGE FINANCIAL SERVICES LIMITED (NSFL)
The Directors of NSFL in office during the reporting period and at the date of this Directors' Report:
NAME | APPOINTED | POSITION |
Anthony Keane | 18 July 2014 | Non-Executive Chairman |
Andrew Catsoulis | 18 July 2014 | Managing Director |
Howard Brenchley | 8 September 2015 | Non-Executive Director |
Scott Smith | 1 July 2022 | Non-Executive Director |
Inmaculada Beaumont | 1 July 2022 | Non-Executive Director |
Simone Haslinger | 24 October 2024 | Non-Executive Director |
DIRECTORS' QUALIFICATIONS, EXPERIENCE AND SPECIAL RESPONSIBILITIES
Boards of National Storage Holdings Limited and National Storage Financial Services Limited
Anthony Keane, Independent Non-Executive Chairman BSc (Maths), Grad Dip Corp Fin, GAICD
Anthony is an experienced finance and business executive with an extensive background in banking and business management. Prior to accepting his directorship with National Storage, Anthony held numerous leadership roles with a major trading bank principally in business, corporate and institutional banking. He is actively involved in the business community through Non-Executive Director and Advisory Board roles, and finance advisory consultancies.
Anthony is a Director of ASX listed EMvision Medical Devices Ltd ("EMV"). Anthony has a Bachelor of Science (Mathematics) from University of Adelaide and a Graduate Diploma in Corporate Finance from Swinburne. He is a Fellow of the Financial Services Institute of Australasia, a Graduate of the Australian Institute of Company Directors and a Fellow of the CEO Institute.
Anthony is Chair of the Nomination Committee and is a member of the Audit and Risk Committee and Remuneration Committee.
Andrew Catsoulis, Managing Director
BA, LLB, Grad Dip Proj Mgmt (Hons), GAICD
A founder of the National Storage business, Andrew has nearly 30 years' of specific self-storage industry expertise including in the areas of acquisitions, developments, integration and operation of 'greenfield' and developed self-storage centres.
DIRECTORS
NATIONAL STORAGE HOLDINGS LIMITED
The NSH Directors in office during the reporting period and at the date of this Directors' Report:
NAME | APPOINTED | POSITION |
Anthony Keane | 1 November 2013 | Non-Executive Chairman |
Andrew Catsoulis | 1 November 2013 | Managing Director |
Howard Brenchley | 21 November 2014 | Non-Executive Director |
Scott Smith | 1 July 2022 | Non-Executive Director |
Inmaculada Beaumont | 1 July 2022 | Non-Executive Director |
Simone Haslinger | 24 October 2024 | Non-Executive Director |
Andrew is a qualified solicitor who has been admitted to the Supreme Court of Queensland. He has had extensive experience in the fields of finance, commercial and property law during his tenure at major law firms both in Australia and overseas. He is also a qualified project manager and has considerable property development experience both within the storage industry and in broader markets.
Andrew was instrumental in the successful acquisition and integration of the original pre-existing Group portfolio and led the Company through the IPO and planned and negotiated the acquisition of the Southern Cross portfolio in 2016. He has led the company in its growth from a single centre in 1996 to over 270 centres today and has been primarily responsible for charting its strategy over that period.
Howard Brenchley, Independent Non-Executive Director BEc
Howard has over 35 years' involvement in the Australian property industry, as an analyst, investor and fund manager. Howard cofounded Property Investment Research Pty Ltd ("PIR") in 1989, which during the 1990s was considered a leading researcher of both listed and unlisted property funds. In 1998 Howard was instrumental in establishing the funds management business of APN Property Group Limited. During this period, he was responsible for the establishment and operations of a number of funds investing both directly and indirectly in real estate.
Since 1998, Howard has been a director (or the director of the responsible entity) of numerous listed and unlisted real estate investment vehicles.
Howard is Chair of the Audit and Risk Committee and is a member of the Nomination and Remuneration Committees.
Inmaculada (Inma) Beaumont, Independent Non-Executive Director BA Hons (Economics and Commerce), FCCA, GAICD
Inma brings her finance, audit and risk expertise and diverse range of commercial experience to the NSR Board. She has held finance leadership roles both in the UK and Australia at Foster Wheeler Energy, Procter & Gamble, Citi and BOQ.
Inma is currently a non-executive director and chair of the audit and risk committee for the Queensland Children's Hospital and Jabiru Community Services Ltd. In addition, she serves on various government bodies and not for profit organizations as chair, deputy chair and/or chair of finance, audit and risk. She holds a BA Hons (Economics and Commerce) from the University of Valencia, Spain, is a Fellow of the Association of Chartered Certified Accountants, and is a Graduate of the Australian Institute of Company Directors.
Inma is a member of the Audit and Risk, Nomination, and Remuneration Committees.
Scott Smith, Independent Non-Executive Director BBus (Marketing)
Scott has over 25 years' experience in the Technology and Telecommunications sector across the Asia Pacific region, including a breadth of experience gained from working for large global telecommunication organisations before founding his own successful managed service provider company. Scott holds a Bachelor of Business (Marketing) from the Queensland University of Technology and has extensive experience in technology and leadership positions. Having successfully co-founded Comlinx (Managed Service Provider) in 2006, he went on to sell that business to ASX listed Telecommunications provider Over the Wire (ASX: OTW) in
DIRECTORS' INTERESTS IN NSR SECURITIES
As at the date of this Directors' Report, the interests of the Directors (including indirect interests) in the stapled securities of NSR were:
DIRECTOR | DIRECT | INDIRECT | PERFORMANCE RIGHTS | TOTAL |
Anthony Keane | 11,595 | 267,870 | - | 279,465 |
Andrew Catsoulis | - | 16,402,835 | 858,900 | 17,261,735 |
Howard Brenchley | - | 135,200 | - | 135,200 |
Scott Smith | - | 179,958 | - | 179,958 |
Inmaculada Beaumont | 47,449 | - | - | 47,449 |
Simone Haslinger | 30,000 | - | - | 30,000 |
No options over issued stapled securities or interests in a Controlled Entity have been granted in NSR during the reporting period. There are no options in stapled securities outstanding as at the date of this report.
DIRECTORS' MEETINGS
The number of meetings of directors of NSH and NSFSL (including meetings of sub-committees of directors) held during the Reporting Period and the number of meetings attended by each director were as follows:
DIRECTOR
NSH
NSFSL
AUDIT & RSIK REMUNERATION NOMINATION
BOARD BOARD COMMITTEE COMMITTEE COMMITTEE
Anthony Keane 11 (11) 8 (8) 8 (8) 7 (7) 5 (5)
Andrew Catsoulis 11 (11) 8 (8) 8 (8) 5 (7) 5 (5)
Howard Brenchley 11 (11) 8 (8) 8 (8) 7 (7) 5 (5)
2018 and continued in the senior leadership team, taking over the role of CEO of OTW in February 2020. OTW | Inma Beaumont | 11 (11) | 8 (8) | 8 (8) | 7 (7) | 5 (5) |
has subsequently been sold to Aussie Broadband (ASX: ABB). | Scott Smith | 11 (11) | 8 (8) | 8 (8) | 7 (7) | 5 (5) |
Scott is currently serving on the Advisory Board and as an investor at Rockfish Data Inc. a San Francisco-based software company focused on developing synthetic data for AI and machine learning applications.
Scott is Chair of the Remuneration Committee and is a member of the Audit and Risk and Nomination Committees.
Simone Haslinger, Non-Executive Director BCom (Finance), LLB
Simone brings 20 years' investment banking experience, where she provided strategic and capital advice to a diverse range of clients.
Simone's most recent role was Co-Head of Equity Capital Markets (Australia) for J.P. Morgan, and she was previously an Equity Capital Markets executive at Deutsche Bank. Simone is also CEO of quantitative fund manager, East Coast Capital Management ("ECCM"), and serves as an Independent Non-Executive Director of ASX-listed DroneShield Limited (ASX:DRO).
Simone is a member of the Audit and Risk, Nomination, and Remuneration Committees.
DIRECTORSHIPS OF OTHER LISTED COMPANIES
Directorships of other listed companies held by current Directors in the three years immediately before the end of the financial year are as follows:
NAME | COMPANY | PERIOD OF DIRECTORSHIP |
Howard Brenchley | Dexus Asset Management Limited previously | |
known as APN Funds Management Limited, | ||
responsible entity for: | ||
Dexus Industria REIT (ASX:DXI) previously | 03/12/2013 - 17/10/2022 | |
known as APN Industria REIT (ASX:ADI) | 27/12/2017 - 17/10/2022 | |
Dexus Convenience Retail REIT (ASX:DXC) | ||
previously known as APN Convenience | ||
Retail REIT (ASX:AQR) | ||
Anthony Keane | EMvision Medical Devices Ltd (ASX:EMV) | 11/12/2018 - Current |
Simone Haslinger | DroneShield Limited (ASX:DRO) | 09/10/2024 - Current |
Simone Haslinger 7 (7) 4 (4) 5 (5) 5 (5) 3 (3)
Notes:
Figures in brackets indicate the number of meetings held whilst the director was in office or was a member of the relevant Committee during the reporting period. Figures not in brackets indicate the number of meetings or Committee meetings that the director attended.
Mr. Catsoulis attends Nomination, Remuneration, Audit and Risk Committee meetings by invitation. Two Remuneration Committee meetings were held without executive members present and Mr Catsoulis did not attend.
The Company has an Investment Committee Charter to govern an Investment Committee. The Board has determined that at this time, the full Board will act as the Investment Committee and therefore there are no separate Investment Committee meetings noted.
COMPANY SECRETARY
NATIONAL STORAGE HOLDINGS LIMITED
NAME APPOINTMENT DATE RESIGNATION DATE
Katherine Hammond 27 March 2024
Tanya Mangold 2 June 2025
NATIONAL STORAGE FINANCIAL SERVICES LIMITED
NAME | APPOINTMENT DATE | RESIGNATION DATE |
Katherine Hammond Tanya Mangold | 27 March 2024 2 June 2025 |
Katherine Hammond
LLB (Hons), BA, AGIA, GradDipLegPrac,
Tanya Mangold
BCom, LLB, LLM, Cert. Adv Tax, FGIA
Refer to page 27.
CORPORATE GOVERNANCE
NSH and the Responsible Entity have their own respective Boards and constitutions. The relationship between NSH and the Responsible Entity is governed by a Cooperation Deed and Management Agreement that allows NSH to provide key services to NSFL as Responsible Entity in exchange for a monthly fee. These services include finance and administrative services, property management, and provision of staff and equipment.
The NSH and Responsible Entity Boards and NSH management are committed to achieving and demonstrating to securityholders high standards of corporate governance and to ensuring NSH acts in the best interests of its securityholders, balanced with its broader community obligations.
Information on NSR's corporate governance policies and practices, including the Corporate Governance Statement disclosing the extent of NSR's compliance with the ASX Corporate Governance Principles and Recommendations (Fourth Edition) (the "ASX Recommendations") can be viewed on the NSR website at https://www.nationalstorageinvest.com.au/governance.
INDEMNIFICATION AND INSURANCE OF DIRECTORS AND OFFICERS
The Company has agreed to indemnify all the Directors, Company Secretaries and Chief Financial Officer and Chief Investment Officer ("Indemnified Persons") of the Company and its group entities to the extent permitted by law, for the amount of any liability, loss, cost, charge, damage, expense or other liability suffered by the Indemnified Person as an officer of the Company or group entity or as a result of having been an officer of the Company or any Group entity. This includes any liability arising out of or in connection with any negligence, breach of duty, or breach of trust ("Indemnity").
However, the Indemnity does not extend to a claim in the nature of:
a challenge to any rejection of an Indemnified Person's claim by the provider of the Company's insurance cover; or
a cross-claim or a third-party claim for contribution or indemnity in, and results directly from, any Proceedings in respect of which the Indemnified Person has made a claim under the Indemnity.
Net operating cashflow | $'m | 135.2 | 165.8 | 188.3 | 184.4 | 218.6 | |
The Responsible Entity (as trustee of NSPT) has provided the Company with an indemnity out of the assets of | Distribution per security | cps | 8.2 | 10 | 11.0 | 11.0 | 11.1 |
the NSPT for any liability under the Directors/Officers indemnity to the extent that the Company is not able to | Total Assets | $'b | 3.25 | 4.05 | 4.58 | 5.17 | 5.80 |
Deeds of indemnity to give effect to the above have been formally entered into by the Company and each of the Indemnified Persons.
REMUNERATION REPORT (AUDITED) - NSH GROUP
MESSAGE FROM THE BOARD
The NSH Board is committed to ensuring that its executive remuneration arrangements are structured to support and reinforce NSR's overall business strategy, are consistent with the requirements of good governance standards, and meet the reasonable expectations of investors and other stakeholders. By linking the Short-Term Incentive ("STI"), Long-Term Incentive arrangements ("LTI") and the new Growth Retention Incentive Plan ("GRIP"), all "at risk" remuneration, to the drivers that support NSR's business strategy for growth
- including financial, governance, sustainability, cultural and community measures, the remuneration of NSR's executives is aligned with the creation of long-term value for securityholders. The Board believes the remuneration practices of NSR should fairly and responsibly reward Key Management Personnel ("KMP") and the broader executive team consistently with their individual performance, the performance of NSR, and the broader external environment as it relates to executive remuneration and incentive arrangements.
For the FY26 year and onwards several changes have been made to incentive plans, taking on advice and feedback from investors and advisors as well as in light of the broader market conditions for comparable roles, the growth in industry competitors seeking experienced self-storage executives and responsibilities to those undertaken by NSR's executive team. These changes are outlined below. No changes have been made to any existing LTI plans, with all changes only being forward looking.
KEY PERFORMANCE INDICATORS
NSR's performance over the last five years against key financial indicators is illustrated below.
Group | FY21 | FY22 | FY23 | FY24 | FY25 | |
Total Revenue | $'m | 217.7 | 278.9 | 330.0 | 355.4 | 392.4 |
IFRS profit after tax | $'m | 309.7 | 620.6 | 320.4 | 230.3 | 236.1 |
Earnings per stapled security | cps | 30.21 | 51.71 | 25.75 | 16.89 | 17.07 |
Underlying earnings(1) | $'m | 86.5 | 126.5 | 141.8 | 154.2 | 164.0 |
Underlying earnings per stapled cps security(1) | 8.5 | 10.6 | 11.5 | 11.3 | 11.9 | |
Weighted average debt tenor | years | 2.8 | 3.3 | 3.5 | 3.3 | 2.9 | |
The total amount of insurance contract premiums paid for Directors and Officers insurance for NSR (including subsidiary entities) during the reporting period was $1,615,127. | Net Tangible Assets ("NTA") 1 Underlying earnings is a non-IFRS measure | $ | 1.89 | 2.34 | 2.48 | 2.52 | 2.58 |
No insurance premiums are paid out of the assets of the NSPT for insurance cover provided to either the |
Debt drawn | $'m | 761 | 975 | 947 | 1,399 | 1,896 |
Gearing | % | 22 | 23 | 19.8 | 26.6 | 33.0 |
meet that obligation. The back-to-back indemnity does not extend to any payment made or due as a result of a breach by the Company of its obligations under a Director/Officer indemnity or to any payment which the Company makes voluntarily but is not due and payable under the terms of a Director/Officer indemnity.
Responsible Entity or the auditors of the NSPT. So long as the officers of the Responsible Entity act in accordance with the constitution and the law, the officers remain indemnified out of the assets of the NSPT against losses incurred while acting on behalf of the NSPT. The auditors of the NSPT are in no way indemnified out of the assets of the NSPT.
INDEMNIFICATION OF AUDITORS
To the extent permitted by law, the Company has agreed to indemnify its auditors, Ernst & Young, as part of the terms of its audit engagement agreement against claims by third parties arising from the audit (for an unspecified amount). No payment has been made or claim received by NSR to indemnify Ernst & Young during the reporting period or up to the date of this report.
FY25 PERFORMANCE AND REMUNERATION OUTCOMES
The year represented another year of strong operational performance for NSR. FY25 earnings growth has seen a 10.4% increase in gross revenue from $355 million to $392 million with underlying earnings growing by 6.4% from $154.2 million to $164.0 million. NSR's NTA increased by 6 cents from $2.52 to $2.58 as the value of NSR's portfolio rose by 9% to $5.3 billion, with valuation uplift again driven largely by improved operational performance and a weighted average portfolio capitalisation rate of 5.84%.
NSR has delivered a strong underlying earnings result of 11.9cps, above its stated guidance of 11.8cps. At the same time, NSR has deployed a substantial amount of capital into its acquisition and development pipeline, with $785 million committed to new acquisition and development projects. This outstanding result was achieved without the introduction of new equity, by way of a capital raise, but instead funded through NSR's existing balance sheet capacity together with active asset recycling. This process included the introduction of important third-party capital in the form of GIC and the National Storage Ventures Fund.
This achieved NSR's combined objectives of supporting underlying earnings for NSR's security holders as well as facilitating substantial growth in NSR's total Assets Under Management ("AUM"). Total distributions declared for the year were 11.1cps, being consistent with the previous year, with a payout ratio of 93%, in line with NSR's stated distribution policy of paying out 90% - 100% of underlying earnings. This is a high level of distribution payout to securityholders compared to the ASX 200 A-REIT index. NSR has delivered consistent Total Securityholder Return (TSR) over the 3 years to 30 June 2025, with NSR being ranked number 12 out of 24 companies at the 52nd percentile, delivering 22% TSR over this period. NSR's long term success from both a yield and TSR perspective is closely linked to the high levels of commitment and overall performance displayed by its executive team. Since IPO NSR has delivered in aggregate more than 330% TSR to its securityholders.
REMUNERATION REVIEW AND FY26 CHANGES
The remuneration policy aims to provide a platform for sustainable value creation for securityholders by attracting, motivating, and retaining its high quality team of executives.
NSR's remuneration framework has evolved over time and in response to stakeholder feedback and broader market conditions. It uses the following key objectives as the basis for the executive remuneration:
Increase the 'at-risk' component of total remuneration across the executive team;
Provide an increased alignment between the executive team and securityholders' interests by utilising equity-based structures (particularly in respect of LTI) as part of total remuneration arrangements;
Structure remuneration in such a way as to enhance executive team retention, given the small team of key executives, the specialised nature of the business and the increasingly competitive landscape for high quality executives;
Provide transparency on the short-term and long-term performance measures to align with securityholder expectations; and
Increase NSR's alignment with the A-REIT direct comparator group.
The Board determined the aggregate fixed remuneration for the MD and CFO for the year commencing 1 July 2025 will increase by 6.0%. The MD's STI and LTI has remained unchanged at 105% of fixed remuneration. The CFO's STI and LTI opportunity also remained unchanged at 80% of fixed remuneration.
In light of the above factors, and particularly in response to investor and advisor feedback, the Board has made several changes to the incentives plans that will apply prospectively.
As outlined in the FY24 Remuneration report the Board introduced the following to improve stakeholder alignment for the FY25 STI and LTI programs:
The inclusion of an Environmental component in STI weighted at 10% of the total STI to align executive remuneration with the delivery of NSR energy efficiency projects;
Removal of the "cliff" vesting in the EPS component of the LTI, replacing this with a graduated vesting scale more aligned with ASX market practice; and
The introduction of a distribution equivalent payment on vested Rights in the LTI plan, to compensate executives for distributions foregone during the performance period.
The Board engaged independent remuneration consultant, SW Corporate, during the reporting period to assess certain elements of the directors' and senior executives' current remuneration and remuneration structure. The advice did not constitute a remuneration recommendation as defined in the Corporations Act Cth 2001. The Board and SW Corporate reviewed the LTI to ensure that the LTI measures remain fit for purpose in rewarding management and incentivising decisions that are aligned with NSR's strategy and outcomes for securityholders. The following factors were considered:
The FY25 LTI vesting outcomes are low at 37.9%, notwithstanding management delivering on the medium to longer term strategy and management's record of delivering longer term outperformance against the A-REIT index for securityholders;
NSR has pursued a larger than normal number of developments which has impacted performance against the EPS measure, and indirectly the TSR measure, despite the developments being a source of long-term growth;
Broader industry consolidation and the potential entrance of well capitalised competitors leading the Board to consider the importance of motivating and appropriately rewarding the current management team for their performance; and
The Board opting to not exercise upwards discretion in relation to the FY25 LTI outcome.
Following this review, the Board has introduced the following changes to the performance measures for the FY26 LTI grant:
Relative Total Shareholder Return ("rTSR") (50%) - previously 70%;
Compound Earnings per Share growth ("EPS growth") (30%) - no change to the weighting or definition of this measure; and
The inclusion of strategic objectives (20%)
Development measures including yield on cost of developments (5%) and on-time and on-budget development delivery (5%); and
Capital Management (10%).
FY26 LTI Measures in Detail
rTSR (50% weighting)
The changes to the rTSR measure are reducing the weighting of rTSR from 70% to 50%. A rTSR weighting of 50% of the LTI is more consistent with broader A-REIT market practice and the Board believes this revised weighting is more appropriate given NSR's size and market position.
EPS Growth (30% weighting)
Following discussion of the appropriateness of Earnings per Share (EPS) growth targets and the impact that the larger than usual development pipeline has had on EPS, it was considered that the EPS growth measure should remain unchanged for FY26.
Strategic Objectives (20% weighting) - new measure
With NSR's increased focus on capitalising on the development opportunities that exists in the Australian and New Zealand self storage markets, the successful delivery of these projects and their subsequent operational performance are key to the medium and long term success of NSR. These developments also require a significant amount of invested capital, and the sourcing of this capital should be structured to maximise the returns that can be delivered to security holders. As such, the Board elected to introduce a third element to the LTI structure to reflect the importance of the successful delivery of the development pipeline to NSR and is stakeholders. The Strategic Objectives element will have a 20% weighting within the LTI and comprise two equally weighted components.
Development delivery and returns
Yield on cost for developments that have reached stabilisation (5%)
Yield on Cost at Stabilised
LTI Payable
<7.0%
Nil
=7.0%
50%
>7.0% - <9.0%
Pro-rata from 50% - 100%
=>9.0%
100%
Developments delivered on time and on budget for projects completed during the 3 year vesting period (5%)
Development Delivery
LTI Payable
<90.0%
Nil
=90%
50%
>90.0% - <100.0%
Pro-rata from 50% - 100%
=100%
100%
Capital Management (10%)
Prudent use of capital
Appropriate sources and timing of debt and capital
Sufficient capital available to fund growth opportunities
Growth Retention Incentive Plan ("GRIP")
In FY26 the Board established the GRIP to provide an additional one off, five year retention and incentive plan for NSR's four executive leaders to deliver on our strategy to continue to grow the core business and shareholder value. This one off program is in addition to the STI and LTI programs.
The Board had regard to the current executive team's performance which has delivered superior long-term shareholder returns. They have achieved these returns without many of the resources available to the majority of their peers, demonstrating leadership in identifying and executing on strategic opportunities, whilst managing costs to maximise shareholder returns.
The increasing level of domestic competition and the growing likelihood of global entrants aiming to secure a position in the Australian self storage market has also led the Board to consider the importance of retaining, motivating and appropriately rewarding our current executive leadership team as NSR aims to continue to expand its position in the Australian and New Zealand markets.
NSR maintains a small and extremely high performing executive team compared to peers. The proposed GRIP is an efficient use of capital, particularly in light of the value derived from retaining and incentivising the executive team in the medium to longer term. The GRIP is also designed to mitigate risks which would potentially ensue from the loss of any of these key individuals to another market competitor. Significant value will be delivered to securityholders over the life of the grant should performance measures be met as well as
minimising the potential disruption that could be caused to NSR's strategy from losing any of these executives to large market disrupters.
One off grant vesting subject to performance measures
The Board has established a series of performance measures for the one off grant that align with NSR's strategy and underpin shareholder value creation beyond those of current STI and LTI plans. These performance metrics relate to the delivery of Revenue Growth, Operating Margin Improvement and NLA Growth that are critical to the successful delivery of NSR's strategy. The Performance Rights will be tested against the performance conditions the end of the FY28 financial year. Any Performance Rights that vest will convert to securities and will be released from restriction in equal tranches following the release of NSR's FY28 full-year results and then on 30 June 2029, and 30 June 2030, subject to continued service. Any rights that do not vest will lapse.
The annual tranche release of any equity component that vests encourages the longer term retention of the Executive Leadership Team as, subject to the discretion of NSR's board, they will have to remain with the company to receive their full entitlement of earned rights. The grant being made in rights to NSR securities provides exposure to security price performance in the same manner as securityholders over the five year period.
COVERAGE OF THIS REPORT
The following remuneration report has been prepared to provide information to NSR securityholders of the remuneration details of the KMP of NSH involved in the management of NSH and the NSPT.
Directors of the Responsible Entity do not receive any remuneration from the Responsible Entity in respect to their roles with the Responsible Entity. However, the director fees paid by NSR take into account the complexity involved, and additional duties required to be undertaken, in relation to the operation of the Responsible Entity as a subsidiary of NSH and as part of the consolidated governance group. The Responsible Entity receives a fee for management services rendered.
This information has been audited as required by section 308(3C) of the Act.
KMP are defined as "those persons having authority and responsibility for planning, directing and controlling the major activities of NSH, the Consolidated Group and the NSPT, directly or indirectly, including any director (whether executive or otherwise) of NSH."
Key management personnel covered in this report are as follows:
NON-EXECUTIVE AND EXECUTIVE DIRECTORS
Anthony Keane Independent Non-Executive Chairman
Andrew Catsoulis Executive Managing Director ("MD")
Howard Brenchley Independent Non-Executive Director Inmaculada Beaumont Independent Non-Executive Director Scott Smith Independent Non-Executive Director
Simone Haslinger Non-Executive Director (appointed 24 October 2024)
KEY MANAGEMENT PERSONNEL - SENIOR EXECUTIVES
Stuart Owen Chief Financial Officer & Chief Investment Officer ("CFO")
REMUNERATION OVERVIEW
Attraction and retention
REMUNERATION PRINCIPLES
Total reward for key executives is to have a significant "at risk" component, including both short term incentives ("STI") and long-term incentives ("LTI") which have a strong focus on quantitative and non-quantitative measures.
At-risk
Provide industry competitive rewards linked to securityholder returns and aligned with NSR's performance in comparison to it's A-REIT comparator group.
Securityholder alignment
Remuneration policies and structures must be clear and
transparent both to the executives and Board of NSR and to securityholders.
Transparency
Attract and retain high quality executives and to reward the capabilities and experience brought to NSR by those executives.
REMUNERATION STRUCTURE (FY26)
Fixed reward | At-risk reward | |||||
TFR | STI | LTI | ||||
Delivery | Cash | Cash (70%) | Scrip (30%) | Performance rights (70%) | Cash (30%) | |
Details |
|
|
| |||
Link to remuneration principles | Assists attraction and retention through competitive remuneration | Incentivises group and individual performance through at-risk pay against financial and nonfinancial targets | Aligns executive remuneration with longterm securityholder value | |||
COMPOSITION OF REMUNERATION
The composition of total annual remuneration ("TAR") for the year ending 30 June 2026 for KMP is detailed in the table below.
KMP | TFR | STI | LTI | STI as % of TFR | LTI as % of TFR |
Andrew Catsoulis (MD) | 32.2% | 33.9% | 33.9% | 105.0% | 105.0% |
Stuart Owen (CFO) | 38.4% | 30.8% | 30.8% | 80.0% | 80.0% |
The structure has been adjusted slightly as a result of the remuneration review, with an increased emphasis on "at-risk" remuneration and is consistent with NSR's policy objectives for executive TAR for the year commencing 1 July 2025 as outline above.
FY26 remuneration also includes an additional one off, five year incentive for NSR's four executive leaders to deliver on the strategy to continue to grow the core business and shareholder value. This one-off GRIP incentive is in addition to the STI and LTI programs.
NSR PERFORMANCE
NSR has an established track record of delivering consistent growth across the following key measures -underlying earnings, net tangible assets ("NTA") and the value of its investment properties.
Underlying earnings per stapled security ("EPS") for the 12 months to 30 June 2025 of 11.9cps has exceeded market guidance by 0.1cps, with underlying earnings increasing 6.4% to $164.0m. Reportable Group REVPAM increased 1.0% to $277/m2 with Rate per square metre achieved across the Reportable Group increased by 2.5% to $347/m2. Reportable Group occupancy as at 30 June 2025 was 80.8%, with strong growth of 0.8% having been achieved in the last quarter of FY25, driven by strong marketing and promotional activities, providing a strong platform to deliver FY26 revenue growth. Occupancy across the total portfolio increased by 32,000m2 in Q4 reflecting NSR's careful balancing of rate and occupancy to achieve optimal revenue growth in current trading conditions.
Occupancy across the 13 Let-up centres, being those centres that have been recently developed or expanded and were operating at the commencement of the period, increased by 11.9% to 63.6%. Total occupancy across all 274 self-storage centres within NSR's portfolio now sits at 73%. This continues to be impacted by the significant number of new developments (14) opening during FY25 which have added approximately 98,000m2 of new NLA. These new developments will be an important contributor to NSR's future growth in FY26 and beyond.
NTA increased by 2.2% during the year to $2.58 per stapled security, with the weighted average capitalisation rate tightening by 7bps to 5.84% at 30 June 2025 (5.91%: 30 June 2024). The uplift in valuation, and resulting NTA, of NSR's investment properties has been derived from improved operational performance of the assets at an individual centre level and the value accretion achieved from recent acquisitions and developments.
Capitalisation rates, provided by independent third-party valuers, continue to show NSR's strength and stability, despite broader market uncertainty and movements in bond yields. This reflects the high quality of NSR's self-storage portfolio within Australia and New Zealand as well as the strong position that self-storage assets in general have within global real estate markets.
The value of NSR's investment properties has increased by $436.5 million or 9% to $5.3 billion over the 12 months to 30 June 2025, with total assets of $5.8 billion. These results have been achieved through the disciplined management of NSR's operations and the ongoing success of its "Four Pillar" growth strategy. NSR's focus on making highly accretive acquisitions, combined with its deeply analytical and process driven development program has produced consistent strong results. The considered approach to driving underlying earnings through a combination of organic growth from existing assets as well as acquisitions, developments and expansion activity, overlayed by a focus on technology and innovation, along with a focus on sustainable business practices has been instrumental in achieving this exceptional result.
NSR has executed on its successful growth strategy with a total of 28 acquisitions in FY25, including the acquisition of 12 freehold operating storage centres, and 16 development sites, totalling $303 million. These acquisitions have been funded through the use of NSR's balance sheet and additional debt facilities which were successfully expanded and refinanced during the reporting period. The successful execution of NSR's development, expansion and redevelopment strategy sees 21 projects under construction or with development approvals and a further 33 projects in various stages of design and planning, both on balance sheet and managed for joint venture partnerships. During the year NSR successfully completed 14 new developments and expansion projects, adding over 38,600m2 of NLA to the NSR portfolio and a further 59,400m2 of NLA for the National Storage Ventures Fund ("NSVF").
During FY25, NSR executed Tranche 1 and Tranche 2 of the NSVF, a joint venture arrangement with GIC ("GIC") in which NSR owns approximately 25% and GIC 75%. The NSVF acquired 16 self-storage assets across both tranches, providing NSR with net proceeds of approximately $280m, which was used to reduce debt and fund growth opportunities.
NSR acts as the manager of all operational and development activities of NSVF and receives fees for undertaking activities on behalf of the NSVF. The completion of these transactions demonstrates the strong institutional demand for high quality storage assets, with capital partnerships of this nature helping to deliver accelerated growth in a capital-efficient manner for NSR.
These investments have been undertaken whilst maintaining an investment grade balance sheet. Gearing of 33.0% remains within the target 25% - 40% range, providing capacity for further growth during FY26. NSR remains committed to maintaining investment grade metrics, which provides significant flexibility and optionality in these uncertain times.
NSR successfully completed its inaugural $300m Exchangeable Notes issue in FY25. The 5 year Notes priced at a highly attractive coupon of 3.625%, materially lowering NSR's average cost of debt. In addition, the Notes successfully diversified NSR's sources of debt and extended average maturities.
In the last quarter of FY25, NSR acquired a strategic interest in Abacus Storage King (ASX: ASK) ("ASK"). At 30 June 2025, NSR held a 7.8% interest in ASK at a cost of $149.5m, excluding brokerage fees. This interest has subsequently increased to 10.35% at the date of this report.
NSR has maintained a distribution policy that targets distribution of 90% - 100% of underlying earnings to securityholders. During the reporting period, NSR declared distributions totalling 11.1 cents per stapled security an increase of 0.1 cents compared to FY24. This represents a payout ratio of 93%.
NSR was ranked 12 out of 24 for Total Shareholder Return "TSR" (a combination of share price growth and distributions received by securityholders) over the past three years to 30 June 2024, delivering TSR of 21.9%, compared to the ASX 200 A-REIT TSR of 51.8%. Generally, the self-storage sector has demonstrated its highly resilient nature as a business during times of uncertainty and fluctuating economic conditions. It is noted that,
since IPO, NSR has materially outperformed the ASX-200 achieving a compound annual TSR of 13.5% compared to 10.4% achieved by the ASX 200 A-REIT index.
2.90
2.70
2.50
$
2.30
2.10
1.90
1.70
30-Jun-21
30-Sep-21
31-Dec-21
31-Mar-22
30-Jun-22
30-Sep-22
31-Dec-22
31-Mar-23
30-Jun-23
30-Sep-23
31-Dec-23
31-Mar-24
30-Jun-24
30-Sep-24
31-Dec-24
31-Mar-25
30-Jun-25
1.50
NSR Security Price
4,000
3,500
3,000
2,500
$'m
2,000
1,500
1,000
500
0
Over the past ten years, National Storage has continued a steady growth trajectory and delivered strong returns for shareholders. Shareholders have enjoyed 161% total shareholder returns (TSR) over the past ten years, outperforming the ASX 200 A-REIT index by 46% over that period, and individually delivering top quartile returns against its ASX 200 A-REIT peers (5th ranked TSR returns out of 20 A-REIT peers).
+161%
+115%
10-year TSR vs S&P/ASX 200 A-REITs
275
225
175
125
75
2015 2016 2017 2018 2019 2020 2021 2022 2023
2024
2025
NSR ASX 200 A-REIT Index Return
Total Shareholder Return (Indexed to 100)
This sustained performance is a result of consistent execution by management over an extended period of time. In the context of continuing to pursue outperforming returns for shareholders, the Board considers it important to incentivise management to remain with NSR and to continue to pursue strategy over the next five years to continue to deliver strong growth. To ensure this the LTI measures must remain fit for purpose in rewarding management and incentivising decisions that are aligned with NSR's strategy. In FY26 this will occur by reducing the weighting of rTSR (from 70% to 50%) to accommodate the introduction of strategic objectives (20%).
NSR's share price closed on 30 June 2025 at $2.30, consistent with the closing price at 28 June 2024. The market capitalisation of NSR now exceeds $3.2 billion as at 30 June 2025. This demonstrates consistent performance during a period impacted by macro drivers such as interest rates and geopolitical uncertainties.
Short-term and long-term incentives in place during reporting period:
The KMP were eligible for payment of STIs and LTIs for the financial year ended 30 June 2025 in accordance with the incentive program outlined in the 2024 Annual Report. The assessment criteria for the program and performance against those criteria are outlined below. Incentives achieved for the year ended 30 June 2025 will be paid through a combination of cash and scrip.
The STI and LTI hurdles are set out below.
The Board has assessed the performance of the Company and the KMP against the performance criteria and has determined that the following STI and LTIs have been earned and are payable, inclusive of statutory superannuation amounts, for the period 1 July 2024 to 30 June 2025.
STI | LTI | ||||
KMP | AMOUNT | % EARNED | AMOUNT | % EARNED | TOTAL |
Andrew Catsoulis (MD) | $1,496,250 | 100.0% | $450,538 | 37.9% | $1,946,788 |
Stuart Owen (CFO) | $640,000 | 100.0% | $175,283 | 37.9% | $815,283 |
Total | $2,136,250 | 100.0% | $625,821 | 37.9% | $2,762,071 |
The Board regularly assesses both short-term and long-term incentives against a strict set of criteria and believes that delivering superior results to securityholders supports the above incentive payments.
Assessment of FY25 Outcomes
The assessment of the FY25 STI outcomes was considered against a predetermined set of assessment criteria. The criteria utilised for assessing the MD's FY25 STI were:
Element | Weighting | Metrics | Rationale | Achievement in FY25 |
Financial | 70% | Underlying Earnings of 11.8cps (10% out performance if Underlying EPS >11.8cps - 12.3cps) | Underlying EPS ensures alignment to the Consolidated Group's financial performance and securityholders' experience | Achievement: 100% Underlying EPS of 11.9cps was achieved over the 12-month performance period, in line with stated guidance. |
Element | Weighting | Metrics | Rationale | Achievement in FY25 |
Maintenance of a suitable qualified executive team | continuity/development, risk management and ESG | and of the quality expected for an ASX200 entity
incidences during the reporting period | ||
Maintenance of best practice health, safety environmental practices |
The assessment of the FY25 LTI outcomes was considered against a predetermined set of assessment criteria. The criteria utilised were:
Metric | Weighting | Vesting Schedule | |
Relative Total Shareholder Return (rTSR) | 70% | rTSR when ranked to the comparator group of ASX 200 A-REIT Index | Payout |
<50th percentile | 0% | ||
50th percentile | 50% | ||
>50th - <75th percentile | Pro-rata from 50%-100% | ||
>=75th percentile | 100% | ||
Earnings Per Share (EPS) Growth | 30% | Compound EPS growth of 5% achieved over the 3 year performance period. Reference year FY22, EPS 10.6cps, Target 12.3cps | Payout |
12.3cps | 100% | ||
In assessing performance against the criteria above the Board sourced NSR's TSR ranking (as outlined above) and determined that NSR ranked number 12 (52nd percentile) for TSR over the 3 year period to 30 June 2025, delivering 21.9% total return over the 3 year period, resulting in 54.2% of the TSR component being payable. The Board also determined that the FY25 Earnings Per Share ("EPS") of 11.9cps failed to satisfy the EPS component of the LTI, resulting in zero percent of the EPS component being payable. This resulted in an overall LTI payout of 37.9%.
The Board views the overall payout of 37.9% for the LTI does not reflect the effort and shareholder value accretion that has been delivered by the Executive team over the last three years and in conjunction with the remuneration consultants, has undertaken a review of the LTI assessment criteria and has implemented enhancements to the scheme for FY26 as outlined above.
The amounts earned under the LTI were negatively impacted by the company's continued desire for growth and to capitalise on the development opportunities that exist in the Australian and New Zealand self-storage markets. This resulted in the EPS component of the LTI not being met as the additional drag of newly development centres offset the organic growth in the underlying business. This has also impacted NSR's TSR as lower EPS impacted distributions and share price.
The STI will be paid in accordance with the payment structure outlined above, with 70% being paid as cash and 30% paid as scrip which will be restricted for a period of 12 month. The LTI will also be paid in accordance with the payment structure outlined above with 30% paid as cash and 70% paid through the vesting of performance rights, with any unvested performance rights lapsing. Any performance rights vesting, given the three-year assessment period, will be issued free of restrictions. The table below outlines the cash, scrip and performance rights components of the FY25 STI and LTI. The scrip component for the STI will be calculated using the 30-day VWAP to 30 June 2024 of $2.3081, aligning the outcome with the share price performance for the relevant year.
STI Payable
KMP | MAX STI | STI EARNED | STI PAYABLE | |||
$ | % | $ | CASH $ | SCRIP $ | SCRIP @ $2.3081 | |
Andrew Catsoulis (MD) | 1,496,250 | 100.0% | 1,496,250 | 1,047,375 | 448,875 | 194,479 |
Stuart Owen (CFO) | 640,000 | 100.0% | 640,000 | 448,000 | 192,000 | 83,186 |
Total | 2,136,250 | 100.0% | 2,136,250 | 1,495,375 | 640,875 | 277,665 |
Element | Weighting | Metrics | Rationale | Achievement in FY25 |
Strategic | 10% | Implementation of major projects | Delivering priorities consistent with the longterm strategies of the Consolidated Group under the "Four Pillars" strategy. This aims to deliver securityholders a stable and growing income stream from a portfolio of geographically diversified high-quality self-storage assets | Achievement: 100% The Board considered the application of the stated strategy in the assessment:
|
ESG | 10% | Installation of Solar Energy | Delivery of Energy Efficiency Projects including the installation of solar energy, smart energy meters and LED lighting | Achievement: 100% The Board considered the following in assessing individual KPIs for FY25:
|
Installation of Smart Meters | ||||
Installation of LED Lighting | ||||
Individual | 10% | Undertaking all necessary investor relations activities expected of an ASX:200 listed entity | Individual KPIs are designed to foster and drive high-performance amongst the key executive team members. The KPIs are intended to cover duties and responsibilities relevant to individual executives across several key operational areas including but not limited to staff | Achievement: 100% The Board considered the following in assessing individual KPI's:
delivered in accordance with agreed timeframe |
Delivery of timely and accurate management reports |
KMP | FY25 TFR | FY26 TFR | % CHANGE |
Andrew Catsoulis (MD) | $1,425,000 | $1,510,500 | 6.0% |
Stuart Owen (CFO) | $800,000 | $848,000 | 6.0% |
KMP | MAX LTI | LTI EARNED | LTI PAYABLE | ||||
CASH ($) | RIGHTS ($) | RIGHTS (No.) | % | CASH $ | RIGHTS VESTED | RIGHTS LAPSED | |
Andrew Catsoulis (MD) | 356,250 | 831,250 | 368,000 | 37.9% | 135,161 | 139,923 | 228,877 |
Stuart Owen (CFO) | 138,600 | 323,400 | 143,200 | 37.9% | 52,585 | 55,279 | 90,421 |
Total | 494,850 | 1,154,650 | 511,200 | 37.9% | 187,746 | 195,202 | 319,298 |
LTI Payable
Total STI and LTI Payable
KMP | CASH ($) | SCRIP @ $2.3081 | RIGHTS VESTED | RIGHTS LAPSED |
Andrew Catsoulis (MD) | 1,182,536 | 194,479 | 139,923 | 228,877 |
Stuart Owen (CFO) | 500,585 | 83,186 | 55,279 | 90,421 |
Total | 1,683,121 | 277,665 | 195,202 | 319,298 |
The issue of scrip to directors requires shareholder approval under the ASX Listing Rules and as such resolutions to approve the issues for the MD will be included in the Notice of Meeting for the upcoming Annual General Meeting. Should shareholder approval not be obtained the amounts will be paid as cash.
NSR REMUNERATION FRAMEWORK
KEY MANAGEMENT PERSONNEL - EXECUTIVE DIRECTORS AND SENIOR EXECUTIVES
The primary objective of the remuneration arrangements for executive directors and senior executives is to motivate, incentivise and retain key employees whilst creating maximum alignment with corporate and stakeholder best interests. All remuneration paid to executive directors and senior executives comprises four components:
Base pay and benefits (including superannuation)
Short-term performance incentives
Long-term performance incentives
Growth Retention Incentives
Base salary and benefits
The Managing Director and senior executives are paid a base salary that includes employer contributions to superannuation funds. Remuneration is reviewed annually and there is no guarantee of base salary increases.
The NSR executive management team has successfully navigated numerous significant micro and macro challenges, achieving an outcome which is acknowledged to be one of the best performances in the A-REIT sector from both an operational earnings and security price performance perspective. During this time they
Short-term and long-term incentives
KMP senior executives may also be entitled to participate in the STI and LTI programs that are in place from time to time. The incentive programs are at the discretion of the Board and do not constitute an entitlement under the executive service agreements of the respective KMP. Total incentive programs are assessed against a broad comparator group and adjusted to reflect factors such as the criticality of the role, experience, length of service and NSR's positioning within the comparator group including the ASX 200 A-REIT index and ASX 75-150.
The STI and LTI incentive programs are structured such that on achievement of the certain performance criteria, eligible executives' total remuneration is aligned with investor interests and incentivises eligible executives.
The existing structure has been generally well received by investors and proxy advisors, with feedback centred around two main points, those being the lack of a link between executive remuneration and ESG, namely climate change initiatives and the cliff vesting of the EPS component of the LTI.
Following on from the adoption of NSR's carbon target in February 2024, the existing STI and LTI structure was reviewed and a sustainability component added to the STI and the cliff vesting associated with the EPS component of the LTI transitioned to the graduated vesting structure from 1 July 2024.
Short-Term Incentive (STI)
The STI contains four separate elements that will be assessed independently of the other elements. The STI is an annual incentive and will be paid in accordance with the payment structure outlined below.
For FY25 and beyond, the Board modified the elements of the structure to include a link between executive remuneration and ESG, namely climate change initiatives. The Environmental measure provide a direct link between executive remuneration and ESG measures with annual targets being set for increased installation of solar energy production capacity, LED lighting and smart energy meters across the portfolio. This strategy and associated link to executive remuneration will assist in NSR reducing its overall energy consumption as well as increasing the amount of internally generated electricity, both of which will help reduce NSR's emissions and carbon footprint. The Social and Governance aspects of ESG are included in individual KPIs.
ELEMENT
PERCENTAGE CRITERIA OF STI
Financial 70% Achieve Underlying Earnings as determined by the Board
have also delivered significant growth in Net Lettable Area and revenues though the acquisitions and development activity.
Financial - Out Performance*
10% Exceeding Underlying Earnings targets
The FY26 remuneration increases consider the senior executives' highly demanding roles, their increasing
Environmental 10% Delivery of Energy Efficiency Projects including the installation of
solar energy, smart energy meters and LED lighting
tenure, the additional responsibilities taken on following the restructure of the executive that took place during FY24, high degree of competency in their respective areas as well as the sector specifics of their individual roles and the significant increase in the size of NSR from both an operational and market demonstrated
Individual KPI's -including social and governance
10% Individual performance criteria set in conjunction with MD/Board
capitalisation perspective. The team assembled is highly competent, cohesive, collaborative and has the capacity to successfully manage and drive business growth well into the future. This growth involves the evolution of NSR's existing strategies as well as NSR embracing new strategies, designed to build on its existing market and storage sector leadership as well as increasing its competitiveness in all areas of the business including technological innovation and advancement. The remuneration increases also consider the increased scope and additional duties assumed by the executives following the departure of two members of the broader executive team during FY24. The executive team has consistently demonstrated its willingness to make decisions in the best long-term strategic, corporate and securityholder interests of NSR.
Independent remuneration consultant SW Corporate was engaged during the reporting period to provide input on certain aspects of the overall remuneration packages. The Board has again elected to position TFR and TR within the 50th to 60th percentile range of the expanded comparator group.
After considering the SW Corporate report and all other internal and external factors, including wages growth and inflationary pressures, the Board determined a modest increase to the aggregate fixed remuneration for the KMP for the year commencing 1 July 2025 will increase of 6.0% as appropriate.
Strategic 10% Assessment in accordance with performance in the following
areas:
Implementation of major projects
Staff continuity
Risk management
Innovation and enhancement of processes and procedures
Total 100% (Max)
* The Financial Out-Performance STI is only payable to the extent that the total STI payable does not exceed 100%.
KMP | MAX STI FY25 $ | MAX STI FY26 $ |
Andrew Catsoulis (MD) | 1,496,250 | 1,586,030 |
Stuart Owen (CFO) | 640,000 | 678,400 |
Total | 2,136,250 | 2,264,430 |
The minimum STI payable is zero and maximum STI payable is $2,264,430 for FY26 in aggregate for all KMP.
Long-Term Incentive (LTI)
The LTI criteria have been set so as to align the interests of KMP with those of securityholders. The LTI contains two separate components which are independently tested. The LTI is an annual incentive and will be paid in accordance with the payment structure outlined below.
ELEMENT
PERCENTAGE CRITERIA OF LTI
Total Shareholder Return 50% Minimum total shareholder return above the 50th percentile
in comparison to the ASX 200 A-REIT index. The LTI becomes payable in accordance with the sliding scale below once the 50th percentile hurdle is met.
Earnings Per Share Growth 30% Minimum earnings per share growth of at least 4% per
annum. The LTI becomes payable in accordance with the sliding scale above once the 4.0% growth hurdle is met.
Strategic 20% Capital Management (10%) Development Delivery and Returns 10%
For the purposes of determining the LTI attributable to Total Shareholder Return in any given period, the following scale is applied:
NSR TSR v ASX 200 A-REIT INDEX | LTI PAYABLE |
<50th percentile | 0% |
50th percentile | 50% |
>50th - <75th percentile | Pro-rata from 50% - 100% |
>= 75th percentile | 100% |
Compound EPS Growth | LTI Payable |
<4.0% | Nil |
>=4.0% - 6.0% | Pro-rata from 50% - 100% |
>6.0% | 100% |
Capital Management
Prudent use of capital
Appropriate sources and timing of debt and capital
Sufficient capital available to fund growth opportunities
Development delivery and returns
Yield on cost for developments that have reached stabilisation (50%)
Yield on Cost
LTI Payable
<7.0%
Nil
=7.0%
50%
>7.0% - <9.0%
Pro-rata from 50% - 100%
=>9.0%
100%
Developments delivered on time and on budget for projects completed during the 3 year vesting period
Development Delivery
LTI Payable
<90.0%
Nil
=90%
50%
>90.0% - <100.0%
Pro-rata from 50% - 100%
=100%
100%
KMP
MAX LTI FY25 ($)
MAX LTI FY26 ($)
MAX LTI FY27 ($)
MAX LTI FY28 ($)
Andrew Catsoulis (MD)
1,187,500
1,391,250
1,496,250
1,586,030
Stuart Owen (CFO)
462,000
497,000
640,000
678,400
Total
1,649,500
1,888,250
2,136,250
2,264,430
The minimum LTI payable is zero and maximum LTI payable is set out below.
For performance rights issued from FY25 onwards, a distribution equivalent payment will be made on vested rights at the end of the performance period to compensate executives for distributions foregone during the performance period.
Growth Retention Incentive Plan ("GRIP")
In FY26 the Board established a series of performance measures for the one off grant that align with NSR's strategy and underpin shareholder value creation beyond those of current STI and LTI plans. Performance Rights will be tested against the performance conditions set out below at the end of the FY28 financial year. Any Performance Rights that vest will convert to securities and will be released from restriction in equal tranches following the release of NSR's FY28 full-year results and then on 30 June 2029, and 30 June 2030, subject to continued service. Any rights that do not vest will lapse.
The grant will be subject to the following performance conditions which will each allow for the vesting of 1/3rd
of the grant:
COMPOUND ANNUAL REVENUE GROWTH (CGAR) (33.3%)
VESTING OUTCOME
< 5.0% CAGR
0%
5.0% CAGR
50%
>5.0% - ≤ 10% CAGR
Pro-rata from 50% - 100%
>10% CAGR
100%
The base Annual Revenue will be the FY25 Total Revenue of $392.4 million.
OPERATING MARGIN IMPROVEMENT (33.3%)
VESTING OUTCOME
< 75 bps improvement
0%
75 bps improvement
50%
>75 bps - ≤ 150 bps improvement
Pro-rata from 50% - 100%
> 150 bps improvement
100%
The base Operating Margin will be the FY25 Operating Margin of 64.2%.
NET LETTABLE AREA (NLA) GROWTH (33.3%)
VESTING OUTCOME
< 150,000m2 growth
0%
150,000m2
50%
>150,000m2 - ≤ 300,000m2 growth
Pro-rata from 50% - 100%
> 300,000m2 growth
100%
The base NLA will be the 30 June 2025 NLA of 1,521,300m2
The number of rights to be granted to Executive KMP will be equal in value to their FY26 total remuneration (or 20% of total remuneration opportunity for each year of the Plan, including the restriction period) and calculated using the 30-day VWAP to 30 June 2025 of $2.3766.
KMP
TAR FY26
($)
AVERAGE ANNUAL VALUE1
($)
PERFORMANCE RIGHTS VESTING 30
JUNE 2028
Andrew Catsoulis (MD)
4,594,200
936,512
1,933,100
Stuart Owen (CFO)
2,163,200
440,960
910,200
Total
6,757,400
1,377,472
2,843,300
1Based on 100% vesting of rights over the full five-year period.
Where a participant ceases employment for any reason prior to the vesting of rights or release of a tranche of securities, all unvested Performance Rights will lapse and all securities still subject to a restriction will be forfeited. The Board maintains overriding discretion to determine an alternate treatment in appropriate circumstances, such as death or total and permanent disability.
In the event of a change of control event involving NSR, the default treatment will be for all unvested rights to vest and all restricted securities to be released from restriction to allow executives to participate in the transaction. The Board maintains overriding discretion to adjust the treatment of awards (whether as to vesting level or timing of vesting) in relation to a specific change of control event. A distribution equivalent payment will be made on vested rights at the end of the performance period to compensate executives for distributions foregone during the performance period.
The grant of performance rights under this Plan to the Managing Director is subject to shareholder approval at this year's Annual General Meeting. Should shareholder approval not be obtained, the Board may choose to make the award in cash.
Future Incentives
The Board periodically reviews the structure of the incentive plans based on market best practice and feedback received from both investors and proxy advisors and assesses the structure of forward payments to be made under these plans and the appropriate combination of cash and scrip, to ensure the alignment of executive remuneration with current investor expectations and returns.
In assessing the appropriate remuneration structure going forward, the Board considers several factors, including, independent consultants report on both NSR's current KMP remuneration levels and structure, market practice remuneration structures of comparator companies, and investor and proxy advisor feedback. Following detailed consideration of these factors, the Board has determined that the payment of any STI and LTI earned will be as follows:
STI payment structure
Any STI earned for the reporting period, and future reporting periods, will be paid in the form of 70% cash and 30% scrip. The quantum of scrip will be determined using the 30-day VWAP up to 30 June at the commencement of the relevant year. As such the value of the scrip component will reflect the relative share price performance for the relevant year. The scrip will be issued at the end of the assessment period, subject to satisfaction of the performance criteria, Board approval and any shareholder approvals required. The scrip component will be restricted for a period of 12 months, meaning that the KMP cannot deal in the scrip for 12 months and that the Board has certain claw back rights over the scrip during the restricted period. The claw back provisions could be triggered under circumstances such as, but not limited to:
Dismissal (termination for cause)
Fraud
Breach of duties
Serious misconduct
Resignation
The issue of scrip to directors requires shareholder approval under the ASX Listing Rules and as such, resolutions to approve the issuance of scrip for the MD will need to be drafted and included in the Notice of Meeting ("NOM") for each year that an issue is required to be made. Should shareholder approval not be obtained, the Board may choose to make the equivalent award in cash.
LTI payment structure
Any LTI earned for the reporting period, and future reporting periods, will be paid in the form of 30% cash and 70% equity through the issue of performance rights. The cash component is designed to enable KMP to fund any tax liability on the equity component and mitigate any need to dispose of NSR securities to fund tax liabilities. The quantum of equity will be determined using the 30-day VWAP up to 30 June in the relevant year that the performance rights are issued. The Board will review the use of cash as part of the LTI on a regular basis.
The equity component is structured through the issue of performance rights at the commencement of the three-year LTI assessment period. The performance rights will vest and convert into scrip at the end of the assessment period, based on the performance criteria, with any unvested rights lapsing. The issue of the rights
NON-EXECUTIVE DIRECTORS
Fees and payments to non-executive directors reflect the demands which are made on, and the responsibilities of, the non-executive directors and their contribution towards the performance of NSR as well as the complexity of the National Storage Property Trust, National Storage Financial Services Limited and the operating business. The remuneration policy seeks to ensure that NSR attracts and retains high quality directors with appropriate experience and qualifications to oversee the operations of NSR on behalf of the securityholders.
The number of meetings of directors is shown on page 41 of this report.
The Constitution of NSH specifies that the amount of the remuneration of the non-executive directors is a yearly sum not exceeding the sum from time to time determined by the Company in a general meeting. Under the ASX Listing Rules, the total amount paid to all NSH non-executive directors for their services must not exceed in aggregate in any financial year the amount fixed by NSH's annual general meeting. The amount approved by securityholders at the 2024 Annual General meeting was $1,500,000.
NSH non-executive directors' fees and Committee fees currently agreed to be paid by NSH effective from 1 July 2025 are detailed below. The fees have increased by an average of 4.0% accounting for the increasing size and complexity of the company and the increasing regulatory burden imposed on directors. Non-executive directors are not eligible to participate in NSR's incentive plan.
NON-EXECUTIVE DIRECTORS
BASE FEE AUDIT AND RISK
COMMITTEE FEES
REMUNERATION AND NOMINATION COMMITTEE FEES
TOTAL
Anthony Keanea. $379,600
Howard Brenchley b. $161,200 $39,000 $16,600 $216,800
lnmaculada Beaumont $161,200 $18,200 $16,600 $196,000
Scott Smith c. $161,200 $18,200 $31,200 $210,600
Simone Haslinger $161,200 $18,200 $16,600 $196,000
Chairman and Chair of the Nomination Committee and receives a single fee for all roles
Chair of the Audit and Risk Committee
Chair of the Remuneration Committees
Where applicable, NSH non-executive directors' fees include superannuation at the required statutory rate.
Service agreements
Remuneration and other terms of employment for the KMP senior executives are formalised in service agreements. The service agreements specify the components of remuneration, benefits and notice periods. Termination benefits are designed to fall within the limits relevant to the Corporations Act 2001 (Cth) such that they do not require securityholder approval. However, in addition, all executive contracts make any such benefits subject to the Corporations Act 2001 (Cth), all other applicable laws and where necessary securityholder approval. They also contain provisions which allow NSH to reduce any such payments to ensure compliance with the law.
The terms of employment for the KMP effective from 1 July 2025 period are set out in the table below.
NAME
TERM OF
BASE SALARY*
TERMINATION PAYMENTS
AGREEMENT AND INCLUDING NOTICE PERIOD SUPERANNUATION
and the conditions associated with them are contained in the NSR Equity Incentive Plan Rules.
KMP
LTI AVAILABLE
$
EQUITY COMPONENT 70%
PERFORMANCE RIGHTS VESTING 30 JUNE 2028
Andrew Catsoulis (MD)
1,586,030
1,110,221
467,200
Stuart Owen (CFO)
678,400
474,880
199,900
The number of performance rights to be issued for the three-year assessment period commencing on 1 July 2025 and ending 30 June 2028 is based off the approved FY26 LTI using the 30-day VWAP to 30 June 2025 as the issue price. As such, performance rights will be issued based on a calculation price of $2.3766 with the number of rights to be issued (rounded up to the nearest 100) included in the table below.
Andrew Catsoulis No fixed term
6 months
Stuart Owen No fixed term 6 months
$1,510,500 6 months in lieu of notice if required by NSH
6 months in the event of incapacity or illness
$848,000 6 months in lieu of notice if required by NSH.
6 months in the event of incapacity or illness
A redundancy payment in accordance with the Fair Work Act 2009 (Cth) in the event of redundancy
The issue of scrip, including performance rights, to directors requires shareholder approval under the ASX Listing Rules and as such resolutions to approve the issues for the MD will be included in the Notice of Meeting ("NOM") for the upcoming Annual General Meeting. Should shareholder approval not be attained, the Board may choose to make the award in cash.
Other remuneration
There was no other remuneration in relation to FY25.
* Base salaries are annual salaries for the financial year commencing 1 July 2025. They are reviewed annually by the Remuneration Committee. Actual salaries paid in the year ended 30 June 2025 are shown on page 62.
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