PEOPLE

PROCESS

PLATFORM

PEOPLE . PROCESS . PLATFORM .

DRIVING GROWTH

Company Update

March 2024

FORWARD-LOOKING STATEMENTS AND NON-GAAP FINANCIAL MEASURES

FORWARD-LOOKING STATEMENTS: We make forward-looking statements in this presentation that are subject to risks and uncertainties. These forward-looking statements include information about possible or assumed future results of our business, financial condition, liquidity, results of operations, plans and objectives. When we use the words "believe," "expect," "anticipate," "estimate," "plan," "continue," "intend," "should," "may" or similar expressions, we intend to identify forward-looking statements. The forward-looking statements contained in this presentation reflect our current views about future events and are subject to numerous known and unknown risks, uncertainties, assumptions and changes in circumstances that may cause our actual results to differ significantly from those expressed in any forward-looking statement.

The forward-looking statements are based on our beliefs, assumptions and expectations of our future performance, taking into account all information currently available to us. Forward-looking statements are not predictions of future events. These beliefs, assumptions and expectations can change as a result of many possible events or factors, not all of which are known to us. Some of these factors are described in our annual report on Form 10-K filed with the SEC on February 28, 2024 (the "Annual Report") under the headings "business," "risk factors," "properties," and "management's discussion and analysis of financial condition and results of operations," as applicable. You may get these documents for free by visiting EDGAR on the SEC website at www.sec.gov. If a change occurs, our business, financial condition, liquidity and results of operations may vary materially from those expressed in our forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made. New risks and uncertainties arise over time, and it is not possible for us to predict those events or how they may affect us. Except as required by law, we are not obligated to, and do not intend to, update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

This presentation and the information contained herein are for informational purposes only and may not be relied upon for any purpose, including in connection with the purchase or sale of any of our securities. Such information does not constitute an offer to sell or a solicitation of an offer to buy any security described herein.

Non-GAAP Financial Measures: This presentation contains certain non-GAAP financial measures, such as funds from operations ("FFO"), Core FFO, net operating income ("NOI"), EBITDA, and Adjusted EBITDA, which are each defined in NSA's Annual Report. These non-GAAP financial measures are presented because NSA's management believes these measures help investors understand NSA's business, performance and ability to earn and distribute cash to its shareholders by providing perspectives not immediately apparent from net income (loss). These measures are also frequently used by securities analysts, investors and other interested parties. The presentation of FFO, Core FFO, NOI, EBITDA, and Adjusted EBITDA herein are not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP and should not be considered as alternative measures of liquidity. In addition, NSA's definitions and method of calculating these measures may be different from those used by other companies, and, accordingly, may not be comparable to similar measures as defined and calculated by other companies that do not use the same methodology as NSA. Reconciliations of these non-GAAP financial measures to their most directly comparable GAAP measures for the three months ended December 31, 2023, 2022, 2021, 2020 and 2019, September 30, 2023, 2022, 2021, 2020, and 2019, June 30, 2023, 2022, 2021, 2020, and 2019, and March 31, 2023, 2022, 2021, 2020, 2019 are available in NSA's earnings releases for such period ends, which are furnished to the SEC quarterly as Exhibit 99.1 on Current Reports on Form 8-K pursuant to Item 2.02.

Information in this presentation is as of December 31, 2023, except as otherwise noted. See "Definitions and Methodology" in the Appendix for certain definitions and calculation methodologies of certain terms and metrics used herein.

TABLE OF CONTENTS

SELF STORAGE INDUSTRY OVERVIEW

COMPANY OVERVIEW

TRACK RECORD OF PERFORMANCE

MULTI-FACETED GROWTH STRATEGY

FLEXIBLE CAPITAL STRUCTURE SUPPORTS FUTURE GROWTH

CORPORATE RESPONSIBILITY OVERVIEW

APPENDIX (including Definitions and Methodology)

3

SELF STORAGE INDUSTRY OVERVIEW

1

4

HIGHLY FRAGMENTED INDUSTRY: CONSOLIDATION OPPORTUNITY

Self Storage Top Operator Market Share

Market Share by # of Facilities(1)

(Approximately 51,000 self storage facilities in the U.S.)

TOP 5

17%

32%

TOP 25

28%

48%

TOP 50

31%

53%

TOP 100

33%

57%

0%

10%

20%

30%

40%

50%

60%

By Number of Facilities

By Rentable SF

  1. Source: 2023 Self Storage Almanac.
  2. Represents top 100 operators, excluding publicly traded REITs and UHAL.
  3. Includes CUBE, EXR, LSI, PSA and UHAL.

NSA

2%

Large

Private

Operators

12%(2)

All Other

Public

Operators

19%(3)

All Other

Private

Operators

67%

SELF STORAGE INDUSTRY OVERVIEW | COMPANY OVERVIEW | TRACK RECORD OF PERFORMANCE | MULTI-FACETED GROWTH STRATEGY | FLEXIBLE CAPITAL STRUCTURE SUPPORTS FUTURE GROWTH | CORPORATE RESPONSIBILITY | APPENDIX

5

SELF STORAGE: HIGHER RETURNS, LOWER VOLATILITY

SELF STORAGE HAS OUTPERFORMED OVER THE PAST 29 YEARS

NAREIT Equity REIT Sectors: 29 Yrs. Avg. Return vs. Volatility(1)

Even in the worst five-year period, self storage delivered >4.5% total shareholder return per year(1)

Year: 1994-2022

18.0%

17.0%

16.0%

15.0%

Self Storage 17.3%

Lower Volatility

20.0%

15.0%

10.0%

5.0%

Avg. % Total Return per

14.0%

13.0%

12.0%

11.0%

10.0%

9.0%

8.0%

0.0

Return

Industrial

14.2%

Apartments

12.6%

Higher

Health Care

11.5%

Retail

11.2%

Office

10.4%

Diversified

8.5%

Lodging

8.5%

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

0.0%

-16.2%

-5.4%

-7.0%

-3.7%

-12.3%

4.7%

3.2%

1.2%

-5.0%

15.2%

11.3%

10.9%

10.9%

9.6%

8.6%

7.1%

3.9%

-10.0%

-15.0%

-20.0%

Self

Apartments

Health

Industrial

Retail

Office

Diversified

Lodging/

Storage

Care

Resorts

Volatility Ratio: Std Deviation of Return divided by Avg. Return 1994-2022

Average annual return across

Lowest average annual total return

each 5-year period

over a 5-year period

(1) Source: NAREIT, see appendix for additional detail.

SELF STORAGE INDUSTRY OVERVIEW | COMPANY OVERVIEW | TRACK RECORD OF PERFORMANCE | MULTI-FACETED GROWTH STRATEGY | FLEXIBLE CAPITAL STRUCTURE SUPPORTS FUTURE GROWTH | CORPORATE RESPONSIBILITY | APPENDIX

6

COMPANY OVERVIEW

2

7

FULL-YEAR 2023 UPDATE

$9.9B

TOTAL ENTERPRISE VALUE(1)

2.4%

Y-O-Y SAME STORE REVENUE

GROWTH

-4.3%

Y-O-Y CORE FFO/SHARE

GROWTH

  1. See appendix for definition.
  2. Excludes 39 self storage properties classified as held for sale at December 31, 2023.

1,050

PROPERTIES(2)

1.6%

Y-O-Y SAME STORE NOI

GROWTH

$230M

WHOLLY-OWNED ACQUISITIONS

WELL-DIVERSIFIED ACROSS

42

STATES + PUERTO RICO

89.1%

SAME STORE AVG. OCCUPANCY

3.7%

Y-O-Y GROWTH IN

DIVIDENDS PAID PER SHARE

SELF STORAGE INDUSTRY OVERVIEW | COMPANY OVERVIEW | TRACK RECORD OF PERFORMANCE | MULTI-FACETED GROWTH STRATEGY | FLEXIBLE CAPITAL STRUCTURE SUPPORTS FUTURE GROWTH | CORPORATE RESPONSIBILITY | APPENDIX

8

PORTFOLIO SALE DRIVES OPERATING EFFICIENCIES AND ENHANCES GROWTH OPPORTUNITIES

  • Properties: 71 Storage facilities
  • Transaction Price: $540M(1)
  • Total Storage RSF: 4.4 million
  • States: 14
  • MSAs: 33
  • Occupancy(2): 84% (vs NSA same store 87%)
  • Average facility size: 62K RSF (vs NSA portfolio 65K)
  • Average NOI Margin(3): ~68% (vs ~73% NSA same store portfolio)

Key takeaways:

    • Greatly improves portfolio concentration since over 80% of the 33 MSAs have only two or fewer properties, and enhances operational efficiencies
    • Reflects inherent portfolio value above implied market cap rate
    • Generates capital for balance sheet initiatives in an accretive manner to drive future growth
  2. Before disposition costs and credits.
  3. Period-endNovember 2023.
  4. Year-to-dateas of November 30, 2023.

SELF STORAGE INDUSTRY OVERVIEW | COMPANY OVERVIEW | TRACK RECORD OF PERFORMANCE | MULTI-FACETED GROWTH STRATEGY | FLEXIBLE CAPITAL STRUCTURE SUPPORTS FUTURE GROWTH | CORPORATE RESPONSIBILITY | APPENDIX

9

PORTFOLIO SALE INCREASES OVERALL PROPERTY CONCENTRATION

Selling properties in non-core Midwest markets

SELF STORAGE INDUSTRY OVERVIEW | COMPANY OVERVIEW | TRACK RECORD OF PERFORMANCE | MULTI-FACETED GROWTH STRATEGY | FLEXIBLE CAPITAL STRUCTURE SUPPORTS FUTURE GROWTH | CORPORATE RESPONSIBILITY | APPENDIX

10

Attachments

  • Original Link
  • Original Document
  • Permalink

Disclaimer

National Storage Affiliates Trust published this content on 03 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 March 2024 09:23:03 UTC.