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Table of Contents
Page
Earnings Release
Consolidated Statements of Operations
Consolidated Balance Sheets
Schedule 1 - Funds From Operations and Core Funds From Operations
Schedule 2 - Other Non-GAAP Financial Measurements
Schedule 3 - Portfolio Summary
Schedule 4 - Debt and Equity Capitalization
Schedule 5 - Summarized Information for Unconsolidated Real Estate Ventures
Schedule 6 - Same Store Performance Summary By State
Schedule 7 - Same Store Performance Summary By MSA
Schedule 8 - Same Store Operating Data - Trailing Five Quarters
Schedule 9 - Reconciliation of Same Store Data and Net Operating Income to Net Income
Schedule 10 - Selected Financial Information
Glossary



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May 11, 2020
National Storage Affiliates Trust Reports First Quarter 2020 Results
GREENWOOD VILLAGE, Colo. - (BUSINESS WIRE) - National Storage Affiliates Trust ("NSA" or the "Company") (NYSE: NSA) today reported the Company’s first quarter 2020 results.
First Quarter 2020 Highlights
Reported net income of $15.8 million for the first quarter of 2020, an increase of 21.8% compared to the first quarter of 2019. Reported diluted earnings per share of $0.06 for the first quarter of 2020, primarily relating to the HLBV method for allocating net income among the various classes of equity.
Reported core funds from operations ("Core FFO") of $37.1 million, or $0.40 per share for the first quarter of 2020, an increase of 8.1% per share compared to the first quarter of 2019.
Achieved same store net operating income ("NOI") growth of 3.5% for the first quarter of 2020 compared to the same period in 2019, driven by a 3.0% increase in same store total revenues partially offset by a 2.1% increase in same store property operating expenses.
Acquired 36 wholly-owned self storage properties for $222.8 million and two joint venture properties totaling $12.1 million during the first quarter of 2020. Capital sources for the acquisition activity included the issuance of approximately $7.2 million of OP equity and $4.5 million of common equity raised under the Company’s at the market, or ATM, program at a combined weighted average price of $32.79 per share/unit, as well as borrowings under the Company’s revolving line of credit.
Closed on the previously announced merger and internalization of the management platform of the Company’s largest PRO, SecurCare, on March 31, 2020.
Highlights Subsequent to Quarter-End
Effective April 1, 2020, Dave Cramer, previously president and chief executive officer of SecurCare, was appointed Executive Vice President and Chief Operating Officer of NSA.
On April 28, 2020, Kroll Bond Rating Agency affirmed the investment grade issuer rating of BBB for NSA's operating partnership.
The Company currently has $129.7 million available for issuance under its ATM program and approximately $300 million of unused capacity on its revolving line of credit.
Tamara Fischer, President and Chief Executive Officer, commented, "We are very pleased with our first quarter results, and the completion of the internalization of SecurCare as originally scheduled despite the unprecedented economic environment. The impact of the COVID-19 pandemic has focused our efforts on the health and safety of our employees and customers. While social distancing guidelines have resulted in reduced move-in and move-out activity across our portfolio, our offices remain open for customer service through our no-contact leasing procedures. Our business overall remains stable, and we are working with our customers who are suffering economic hardship to help them through this time, resulting in cash collections of approximately 98% of normal levels in April. The downside protection built into our unique PRO structure and our conservative balance sheet leave us well positioned to weather these turbulent economic times with strong cash flow as well as excellent availability on our line of credit, with less than $40 million of debt maturing from now through 2022."
NSA’s Executive Chairman Arlen Nordhagen noted, “I’ve lived through three previous recessions in the self storage business, and our properties have weathered those storms very well. Overall, the self storage sector has historically proven to be very resilient and less affected than many other real estate sectors during economic downturns, and we think this will be no exception. The benefits of our PRO structure and our limited exposure to the largest metropolitan cities should serve us particularly well through the economic crisis created by the COVID-19 pandemic. On the other hand, the speed and magnitude of the economic stress affecting our customers and communities is unlike anything we have ever seen, and the current environment has required an unprecedented change in consumer behavior. Throughout this turbulent time, we remain committed to our core values of integrity, accountability, compassion and humility as we do our very best for NSA’s customers, employees and investors.”

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COVID-19 Update
Given the state of emergency and "stay at home" mandates across a majority of the states where NSA operates self storage facilities, the associated unprecedented decline in economic activity and significant spike in unemployment, the Company's business has been impacted as follows:
The Company's stores are open despite state of emergency declarations and stay at home orders, as storage is considered an essential business.
Same store move-in volume decreased approximately 28% in April, compared to the same period in 2019.
Same store move-out volume decreased approximately 28% in April, compared to the same period in 2019.
Same store period-end occupancy was 87.1% as of April 30, 2020, which was unchanged compared to March 31, 2020 and a decrease of approximately 140 basis points compared to April 30, 2019.
There are state level restrictions on price increases, auctions and implementation of late fees under many state of emergency orders; the Company is abiding by all state and local restrictions and has temporarily suspended in-place customer rent increases.
2020 Guidance
Given the heightened level of uncertainty in the Company's operations due to the unprecedented growth in unemployment combined with a lack of clarity as to when the COVID-19 pandemic will materially subside, the Company is withdrawing its full-year 2020 guidance, which was included in its February 24, 2020 earnings release. The Company will evaluate reinstating 2020 guidance as it gains greater clarity regarding the aforementioned items.
Financial Results
($ in thousands, except per share and unit data)
Three Months Ended March 31,
20202019Growth
Net income$15,763  $12,940  21.8 %
Funds From Operations ("FFO")(1)
$36,278  $32,580  11.4 %
Add back acquisition costs
833  157  430.6 %
Core FFO(1)
$37,111  $32,737  13.4 %
Earnings (loss) per share - basic and diluted
$0.06  $0.08  (25.0)%
FFO per share and unit(1)
$0.39  $0.37  5.4 %
Core FFO per share and unit(1)
$0.40  $0.37  8.1 %
(1) Non-GAAP financial measures, including FFO, Core FFO and NOI, are defined in the Glossary in the supplemental financial information and, where appropriate, reconciliations of these measures and other non-GAAP financial measures to their most directly comparable GAAP measures are included in the Schedules to this press release and in the supplemental financial information.
Net income increased $2.8 million for the first quarter of 2020 as compared to the same period in 2019. The increase primarily resulted from additional NOI generated from the 73 wholly-owned self storage properties acquired between April 1, 2019 and March 31, 2020 and same store NOI growth, partially offset by increases in depreciation and amortization and interest expense.
The increases in FFO and Core FFO for the first quarter of 2020 were primarily the result of incremental NOI from properties acquired between April 1, 2019 and March 31, 2020 and same store NOI growth, partially offset by higher interest expense and increases in distributions to subordinated performance unitholders.
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Same Store Operating Results (500 Stores)
($ in thousands, except per square foot data)
Three Months Ended March 31,
20202019Growth
Total revenues
$84,516  $82,018  3.0 %
Property operating expenses
25,738  25,219  2.1 %
Net Operating Income (NOI)
$58,778  $56,799  3.5 %
NOI Margin69.5 %69.3 %0.2 %
Average Occupancy
87.2 %87.5 %(0.3)%
Average Annualized Rental Revenue Per Occupied Square Foot
$12.34  $11.98  3.0 %
Year-over-year same store total revenues increased 3.0% for the first quarter of 2020 as compared to the same period in 2019. The increase was driven primarily by a 3.0% increase in average annualized rental revenue per occupied square foot partially offset by a 30 basis point decrease in average occupancy. Markets which generated above portfolio average same store total revenue growth include: Riverside-San Bernardino, Atlanta, and Las Vegas. Markets which generated below portfolio average same store total revenue growth include: Portland, Dallas and Los Angeles.
Year-over-year same store property operating expenses increased 2.1% for the first quarter of 2020 as compared to the same period in 2019. The increase primarily resulted from increases in personnel costs, partially offset by decreases in utilities expenses.
Investment Activity
On March 31, 2020, NSA closed on the previously announced merger and internalization of SecurCare, the Company's largest PRO. As part of the internalization, NSA offered employment to most of SecurCare's employees to continue managing SecurCare's managed portfolio under the brand SecurCare as members of NSA's existing property management platform. As a result of the merger, NSA will no longer pay any fees or reimbursements to SecurCare and distributions on the series of subordinated performance units related to SecurCare's managed portfolio were discontinued.
In connection with the merger and the concurrent merger of DLAN Corporation, NSA issued a total of 8,105,192 common shares to the former shareholders of SecurCare and DLAN Corporation. NSA subsequently retired 1,118,193 OP units and DownREIT OP units and 2,001,441 subordinated performance units that had been held by SecurCare and DLAN Corporation.
In addition to the mergers, NSA acquired 36 wholly-owned self storage properties located across seven states consisting of approximately 1.8 million rentable square feet configured in approximately 13,600 storage units during the first quarter of 2020. Total consideration for these acquisitions of $222.8 million included approximately $214.6 million of net cash, the issuance of approximately $5.4 million of OP units, $0.8 million of subordinated performance units, $1.0 million of LTIP units and the assumption of approximately $1.0 million of other working capital liabilities.
During the first quarter of 2020, NSA's 2016 Joint Venture invested in two self storage properties for $12.1 million, comprising less than 0.1 million rentable square feet, configured in approximately 500 storage units.
Common Share Dividends
On February 20, 2020, NSA's Board of Trustees declared a quarterly cash dividend of $0.33 per common share, which was paid on March 31, 2020 to shareholders of record as of March 13, 2020.
Supplemental Financial Information
The full text of this earnings release and supplemental financial information, including certain financial information referenced in this release, are available on NSA's website at http://ir.nationalstorageaffiliates.com/quarterly-reporting and as exhibit 99.1 to the Company's Form 8-K furnished to the SEC on May 11, 2020.
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Non-GAAP Financial Measures & Glossary
This press release contains certain non-GAAP financial measures. These non-GAAP measures are presented because NSA's management believes these measures help investors understand NSA's business, performance and ability to earn and distribute cash to its shareholders by providing perspectives not immediately apparent from net income (loss). These measures are also frequently used by securities analysts, investors and other interested parties. The presentations of FFO, Core FFO and NOI in this press release are not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. In addition, NSA's method of calculating these measures may be different from methods used by other companies, and, accordingly, may not be comparable to similar measures as calculated by other companies that do not use the same methodology as NSA. These measures, and other words and phrases used herein, are defined in the Glossary in the supplemental financial information and, where appropriate, reconciliations of these measures and other non-GAAP financial measures to their most directly comparable GAAP measures are included in the Schedules to this press release and in the supplemental financial information.
Quarterly Teleconference and Webcast
The Company will host a conference call at 1:00 pm Eastern Time on Tuesday, May 12, 2020 to discuss its first quarter 2020 financial results. At the conclusion of the call, management will accept questions from certified financial analysts. All other participants are encouraged to listen to a webcast of the call by accessing the link found on the Company's website at www.nationalstorageaffiliates.com.
Conference Call and Webcast:
Date/Time: Tuesday, May 12, 2020, 1:00pm ET
Webcast available at: www.nationalstorageaffiliates.com
Domestic (Toll Free US & Canada): 877.407.9711
International: 412.902.1014
Replay:
Domestic (Toll Free US & Canada): 877.660.6853
International: 201.612.7415
Conference ID: 13692161
A replay of the call will be available for one week through Tuesday, May 19, 2020. A replay of the webcast will be available for 30 days on NSA's website at www.nationalstorageaffiliates.com.
About National Storage Affiliates Trust
National Storage Affiliates Trust is a Maryland real estate investment trust focused on the ownership, operation and acquisition of self storage properties located within the top 100 metropolitan statistical areas throughout the United States. As of March 31, 2020, the Company held ownership interests in and operated 780 self storage properties located in 35 states and Puerto Rico with approximately 48.9 million rentable square feet. NSA is one of the largest owners and operators of self storage properties among public and private companies in the United States. For more information, please visit the Company’s website at www.nationalstorageaffiliates.com. NSA is included in the MSCI US REIT Index (RMS/RMZ), the Russell 2000 Index of Companies and the S&P SmallCap 600 Index.
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NOTE REGARDING FORWARD LOOKING STATEMENTS
Certain statements contained in this press release constitute forward-looking statements as such term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and such statements are intended to be covered by the safe harbor provided by the same. Forward-looking statements are subject to substantial risks and uncertainties, many of which are difficult to predict and are generally beyond the Company's control. These forward-looking statements include information about possible or assumed future results of the Company's business, financial condition, liquidity, results of operations, plans and objectives. Changes in any circumstances may cause the Company's actual results to differ significantly from those expressed in any forward-looking statement. When used in this release, the words "believe," "expect," "anticipate," "estimate," "plan," "continue," "intend," "should," "may" or similar expressions are intended to identify forward-looking statements. Statements regarding the following subjects, among others, may be forward-looking: market trends in the Company's industry, interest rates, the debt and lending markets or the general economy; the Company's business and investment strategy; the acquisition of properties, including those under contract and our ability to execute on our acquisition pipeline; the timing of acquisitions under contract; the internalization of retiring participating regional operators ("PROs") into the Company; the negative impacts from the continued spread of COVID-19 on the economy, the self storage industry, the broader financial markets, the Company's financial condition, results of operations and cash flows and the ability of the Company's tenants to pay rent; and the Company's guidance estimates for the year ended December 31, 2020. For a further list and description of such risks and uncertainties, see the Company's most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed with the Securities and Exchange Commission, and the other documents filed by the Company with the Securities and Exchange Commission. The forward-looking statements, and other risks, uncertainties and factors are based on the Company's beliefs, assumptions and expectations of its future performance, taking into account all information currently available to the Company. Forward-looking statements are not predictions of future events. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Contact:
National Storage Affiliates Trust
Investor/Media Relations
George Hoglund, CFA
Vice President - Investor Relations
720.630.2160
ghoglund@nsareit.net
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National Storage Affiliates Trust
Consolidated Statements of Operations
(in thousands, except per share amounts)
(unaudited)
Three Months Ended March 31,
20202019
REVENUE
Rental revenue$95,402  $82,855  
Other property-related revenue3,371  2,824  
Management fees and other revenue5,449  4,893  
Total revenue104,222  90,572  
OPERATING EXPENSES
Property operating expenses30,592  26,457  
General and administrative expenses11,094  10,380  
Depreciation and amortization29,105  24,349  
Other389  386  
Total operating expenses71,180  61,572  
OTHER (EXPENSE) INCOME
Interest expense(15,628) (13,211) 
Equity in losses of unconsolidated real estate ventures
(340) (2,102) 
Acquisition costs(833) (157) 
Non-operating expense(192) (98) 
Other expense(16,993) (15,568) 
Income before income taxes16,049  13,432  
Income tax expense(286) (492) 
Net income15,763  12,940  
Net income attributable to noncontrolling interests
(9,115) (5,529) 
Net income attributable to National Storage Affiliates Trust6,648  7,411  
Distributions to preferred shareholders
(3,273) (2,588) 
Net income attributable to common shareholders
$3,375  $4,823  
Earnings (loss) per share - basic and diluted$0.06  $0.08  
Weighted average shares outstanding - basic and diluted
59,798  56,655  

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National Storage Affiliates Trust
Consolidated Balance Sheets
(dollars in thousands, except per share amounts)
(unaudited)
March 31,December 31,
20202019
ASSETS
Real estate
Self storage properties$3,314,849  $3,091,719  
Less accumulated depreciation(363,527) (337,822) 
Self storage properties, net2,951,322  2,753,897  
Cash and cash equivalents18,689  20,558  
Restricted cash3,997  3,718  
Debt issuance costs, net3,067  3,264  
Investment in unconsolidated real estate ventures213,497  214,061  
Other assets, net64,503  65,441  
Operating lease right-of-use assets23,798  23,306  
Total assets$3,278,873  $3,084,245  
LIABILITIES AND EQUITY
Liabilities
Debt financing$1,731,669  $1,534,047  
Accounts payable and accrued liabilities40,127  37,966  
Interest rate swap liabilities84,703  19,943  
Operating lease liabilities25,243  24,665  
Deferred revenue16,076  15,523  
Total liabilities1,897,818  1,632,144  
Equity
Preferred shares of beneficial interest, par value $0.01 per share. 50,000,000 authorized, 8,732,719 and 8,727,119 issued and outstanding at March 31, 2020 and December 31, 2019, respectively, at liquidation preference
218,318  218,178  
Common shares of beneficial interest, par value $0.01 per share. 250,000,000 shares authorized, 68,027,212 and 59,659,108 shares issued and outstanding at March 31, 2020 and December 31, 2019, respectively
680  597  
Additional paid-in capital970,786  905,763  
Distributions in excess of earnings(213,447) (197,075) 
Accumulated other comprehensive loss(52,855) (7,833) 
Total shareholders' equity923,482  919,630  
Noncontrolling interests457,573  532,471  
Total equity1,381,055  1,452,101  
Total liabilities and equity$3,278,873  $3,084,245  

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Supplemental Schedule 1
Funds From Operations and Core Funds From Operations
(in thousands, except per share and unit amounts) (unaudited)
Reconciliation of Net Income to FFO and Core FFO
Three Months Ended March 31,
20202019
Net income$15,763  $12,940  
Add (subtract):
Real estate depreciation and amortization28,764  24,027  
Company's share of unconsolidated real estate venture real estate depreciation and amortization
3,787  5,457  
Company's share of unconsolidated real estate venture loss on sale of properties
—  202  
Mark-to-market changes in value on equity securities
142  —  
Distributions to preferred shareholders and unitholders
(3,514) (2,753) 
FFO attributable to subordinated performance unitholders(1)
(8,664) (7,293) 
FFO attributable to common shareholders, OP unitholders, and LTIP unitholders
36,278  32,580  
Add:
Acquisition costs833  157  
Core FFO attributable to common shareholders, OP unitholders, and LTIP unitholders
$37,111  $32,737  
Weighted average shares and units outstanding - FFO and Core FFO:(2)
Weighted average shares outstanding - basic59,798  56,655  
Weighted average restricted common shares outstanding23  30  
Weighted average OP units outstanding
30,709  29,948  
Weighted average DownREIT OP unit equivalents outstanding
1,849  1,848  
Weighted average LTIP units outstanding
617  747  
Total weighted average shares and units outstanding - FFO and Core FFO
92,996  89,228  
FFO per share and unit$0.39  $0.37  
Core FFO per share and unit$0.40  $0.37  
(1) Amounts represent distributions declared for subordinated performance unitholders and DownREIT subordinated performance unitholders for the periods presented.
(2) NSA combines OP units and DownREIT OP units with common shares because, after the applicable lock-out periods, OP units in the Company's operating partnership are redeemable for cash or, at NSA's option, exchangeable for common shares on a one-for-one basis and DownREIT OP units are also redeemable for cash or, at NSA's option, exchangeable for OP units in the Company's operating partnership on a one-for-one basis, subject to certain adjustments in each case. Subordinated performance units, DownREIT subordinated performance units and LTIP units may also, under certain circumstances, be convertible into or exchangeable for common shares (or other units that are convertible into or exchangeable for common shares). See footnote(3) for additional discussion of subordinated performance units, DownREIT subordinated performance units, and LTIP units in the calculation of FFO and Core FFO per share and unit.

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Supplemental Schedule 1 (continued)
Funds From Operations and Core Funds From Operations
(in thousands, except per share and unit amounts) (unaudited)
Reconciliation of Earnings (Loss) Per Share - Diluted to FFO and Core FFO Per Share and Unit
Three Months Ended March 31,
20202019
Earnings (loss) per share - diluted$0.06  $0.08  
Impact of the difference in weighted average number of shares(3)
(0.02) (0.03) 
Impact of GAAP accounting for noncontrolling interests, two-class method and treasury stock method(4)
0.09  0.07  
Add real estate depreciation and amortization0.31  0.27  
Add Company's share of unconsolidated real estate venture real estate depreciation and amortization
0.04  0.06  
FFO attributable to subordinated performance unitholders
(0.09) (0.08) 
FFO per share and unit
0.39  0.37  
Add acquisition costs
0.01  —  
Core FFO per share and unit
$0.40  $0.37  
(3) Adjustment accounts for the difference between the weighted average number of shares used to calculate diluted earnings per share and the weighted average number of shares used to calculate FFO and Core FFO per share and unit. Diluted earnings per share is calculated using the two-class method for the company's restricted common shares and the treasury stock method for certain unvested LTIP units, and assumes the conversion of vested LTIP units into OP units on a one-for-one basis and the hypothetical conversion of subordinated performance units, and DownREIT subordinated performance units into OP units, even though such units may only be convertible into OP units (i) after a lock-out period and (ii) upon certain events or conditions. For additional information about the conversion of subordinated performance units and DownREIT subordinated performance units into OP units, see Note 10 to the Company's most recent Annual Report on Form 10-K, filed with the Securities and Exchange Commission. The computation of weighted average shares and units for FFO and Core FFO per share and unit includes all restricted common shares and LTIP units that participate in distributions and excludes all subordinated performance units and DownREIT subordinated performance units because their effect has been accounted for through the allocation of FFO to the related unitholders based on distributions declared.
(4) Represents the effect of adjusting the numerator to consolidated net income (loss) prior to GAAP allocations for noncontrolling interests, after deducting preferred share and unit distributions, and before the application of the two-class method and treasury stock method, as described in footnote(3).

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Supplemental Schedule 2
Other Non-GAAP Financial Measurements
(dollars in thousands) (unaudited)
Net Operating Income
Three Months Ended March 31,
20202019
Net income$15,763  $12,940  
(Subtract) add:
Management fees and other revenue(5,449) (4,893) 
General and administrative expenses11,094  10,380  
Other389  386  
Depreciation and amortization29,105  24,349  
Interest expense15,628  13,211  
Equity in losses of unconsolidated real estate ventures
340  2,102  
Acquisition costs833  157  
Income tax expense286  492  
Non-operating expense192  98  
Net Operating Income
$68,181  $59,222  

EBITDA and Adjusted EBITDA
Three Months Ended March 31,
20202019
Net income$15,763  $12,940  
Add:
Depreciation and amortization29,105  24,349  
Company's share of unconsolidated real estate venture depreciation and amortization
3,787  5,457  
Interest expense15,628  13,211  
Income tax expense286  492  
EBITDA
64,569  56,449  
Add (subtract):
Acquisition costs833  157  
Company's share of unconsolidated real estate venture loss on sale of properties
—  202  
Equity-based compensation expense774  1,112  
Adjusted EBITDA
$66,176  $57,920  

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Supplemental Schedule 3
Portfolio Summary
As of March 31, 2020
(dollars in thousands) (unaudited)
Wholly-Owned Store Data by State (Consolidated)Total Operated Store Data by State (Consolidated & Unconsolidated)
State/TerritoriesStores UnitsRentable Square FeetOccupancy at Period EndState/TerritoriesStores UnitsRentable Square FeetOccupancy at Period End
Texas100  39,220  5,517,588  86.3 %Texas104  41,557  5,794,877  86.3 %
California83  49,618  6,226,777  88.9 %California95  56,344  7,021,108  88.8 %
Oregon62  24,833  3,148,614  80.7 %Florida75  45,836  4,906,884  84.4 %
Florida48  30,468  3,185,287  85.7 %Oregon 62  24,833  3,148,614  80.7 %
Georgia45  19,425  2,601,774  86.9 %Georgia56  25,566  3,474,106  87.1 %
North Carolina33  15,371  1,885,479  90.7 %Oklahoma36  16,180  2,211,387  88.0 %
Arizona31  16,893  1,925,202  88.0 %Arizona33  17,902  2,035,032  87.7 %
Oklahoma30  13,842  1,902,565  87.9 %North Carolina33  15,371  1,885,479  90.7 %
Louisiana26  12,345  1,539,069  83.7 %Louisiana26  12,345  1,539,069  83.7 %
Indiana16  8,776  1,134,570  89.5 %Michigan24  15,614  1,977,873  86.0 %
Kansas16  5,714  763,249  88.8 %Ohio22  12,434  1,526,089  86.9 %
Washington14  4,495  578,723  79.9 %New Jersey19  12,723  1,497,502  85.9 %
Nevada13  6,682  844,856  90.3 %Nevada17  8,299  1,096,963  89.3 %
Colorado 12  5,413  673,256  84.2 %Indiana16  8,776  1,134,570  89.5 %
New Hampshire11  4,733  577,590  90.5 %Kansas16  5,714  763,249  88.8 %
Missouri 3,858  489,823  73.8 %Alabama15  6,290  937,211  87.9 %
Ohio 3,645  461,393  88.5 %Washington14  4,495  578,723  79.9 %
Other(1)
46  22,705  2,782,923  86.7 %Massachusetts12  7,688  888,321  83.7 %
Total
603  288,036  36,238,738  86.6 %Colorado12  5,413  673,256  84.2 %
New Hampshire11  4,733  577,590  90.5 %
Other(2)
82  43,648  5,240,532  84.4 %
Total
780  391,761  48,908,435  86.3 %



(1) Other states and territories in NSA's owned portfolio as of March 31, 2020 include Alabama, Idaho, Illinois, Kentucky, Maryland, Massachusetts, Mississippi, New Jersey, New Mexico, Pennsylvania, South Carolina, Virginia and Puerto Rico.
(2) Other states and territories in NSA's operated portfolio as of March 31, 2020 include Delaware, Idaho, Illinois, Kentucky, Maryland, Minnesota, Mississippi, Missouri, New Mexico, New York, Pennsylvania, Rhode Island, South Carolina, Tennessee, Virginia and Puerto Rico.
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Supplemental Schedule 3 (continued)
Portfolio Summary
(dollars in thousands) (unaudited)
2020 Acquisition Activity
Self Storage Properties Acquired
During the Quarter Ended:
Summary of Investment
StoresUnitsRentable Square FeetCash and Acquisition CostsValue of OP EquityOther LiabilitiesTotal
March 31, 20203613,5551,759,019  $214,584  $7,217  $972  $222,773  
Unconsolidated Real Estate Ventures (at 100%)(3)
March 31, 2020253239,952  12,108  —  37  12,145  
Total Investments(4)
3814,0871,798,971  $226,692  $7,217  $1,009  $234,918  























(3) Values represent entire unconsolidated real estate ventures at 100%, not NSA's proportionate share. NSA's ownership in each of the unconsolidated real estate ventures is 25%.
(4) NSA acquired self storage properties located in California (2), Colorado (1), Florida (2), Georgia (1), Massachusetts (1), New Jersey (1), Oregon (1) and Texas (29).

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Supplemental Schedule 4
Debt and Equity Capitalization
As of March 31, 2020
(unaudited)
Debt Summary (dollars in thousands)
Effective Interest Rate(1)
Basis of RateMaturity Date2020202120222023202420252026ThereafterTotal
Credit Facility:
Revolving line of credit
2.29%
Variable(2)
January 2024$—  $—  $—  $—  $200,000  $—  $—  $—  $200,000  
Term loan - Tranche A
3.74%Swapped To FixedJanuary 2023—  —  —  125,000  —  —  —  —  125,000  
Term loan - Tranche B
2.91%Swapped To FixedJuly 2024—  —  —  —  250,000  —  —  —  250,000  
Term loan - Tranche C
2.80%Swapped To FixedJanuary 2025—  —  —  —  —  225,000  —  —  225,000  
Term loan - Tranche D
3.57%Swapped To FixedJuly 2026—  —  —  —  —  —  175,000  —  175,000  
Term loan facility - 20232.83%Swapped To FixedJune 2023—  —  —  175,000  —  —  —  —  175,000  
Term loan facility - 20284.62%Swapped To FixedDecember 2028—  —  —  —  —  —  —  75,000  75,000  
Term loan facility - 20294.27%Swapped To FixedApril 2029—  —  —  —  —  —  —  100,000  100,000  
2029 Senior Unsecured Notes3.98%FixedAugust 2029—  —  —  —  —  —  —  100,000  100,000  
2031 Senior Unsecured Notes4.08%FixedAugust 2031—  —  —  —  —  —  —  50,000  50,000  
Fixed rate mortgages payable4.18%FixedOctober 2020 - October 203135,012  3,619  —  81,251  20,267  —  —  121,531  261,680  
Total Principal/Weighted Average
3.39%5.45 years$35,012  $3,619  $—  $381,251  $470,267  $225,000  $175,000  $446,531  $1,736,680  
Unamortized debt issuance costs and debt premium, net
(5,011) 
Total Debt
$1,731,669  

Debt Ratios
Covenant
Amount
Net Debt to Annualized Current Quarter Adjusted EBITDAn/a6.5x
Trailing Twelve Month Fixed Charge Coverage Ratio
> 1.5x3.0x
Total Leverage Ratio< 60.0%43.5%
(1) Effective interest rate incorporates the stated rate plus the impact of interest rate cash flow hedges and discount and premium amortization, if applicable.
(2) For the $500 million revolving line of credit, the effective interest rate is calculated based on one month LIBOR plus an applicable margin of 1.30% and excludes fees which range from 0.15% to 0.20% for unused borrowings.
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Supplemental Schedule 4 (continued)
Debt and Equity Capitalization
As of March 31, 2020
(unaudited)

Preferred Shares and Units
Outstanding
6.000% Series A cumulative redeemable preferred shares of beneficial interest8,732,719  
6.000% Series A-1 cumulative redeemable preferred units637,382  
Common Shares and Units
OutstandingIf Converted
Common shares of beneficial interest67,992,187  67,992,187  
Restricted common shares35,025  35,025  
Total shares outstanding
68,027,212  68,027,212  
Operating partnership units29,751,701  29,751,701  
DownREIT operating partnership unit equivalents
1,924,918  1,924,918  
Total operating partnership units
31,676,619  31,676,619  
Long-term incentive plan units(3)
511,841  511,841  
Total shares and Class A equivalents outstanding
100,215,672  100,215,672  
Subordinated performance units(4)
8,693,121  10,605,608  
DownREIT subordinated performance unit equivalents(4)
4,337,111  5,291,275  
Total subordinated partnership units
13,030,232  15,896,883  
Total common shares and units outstanding
113,245,904  116,112,555  






(3) Balances exclude 252,894 long-term incentive plan ("LTIP") units which only vest and participate in dividend distributions upon the future contribution of properties from the PROs or the completion of expansion projects.
(4) If converted balance assumes that each subordinated performance unit (including each DownREIT subordinated performance unit) is convertible into OP units, notwithstanding the two-year lock-out period on conversions for certain series of subordinated performance units, and that each subordinated performance unit would on average convert on a hypothetical basis into an estimated 1.22 OP units based on historical financial information for the trailing twelve months ended March 31, 2020. The hypothetical conversions are calculated by dividing the average cash available for distribution, or CAD, per subordinated performance unit by 110% of the CAD per OP unit over the same period. The Company anticipates that as CAD grows over time, the conversion ratio will also grow, including to levels that may exceed these amounts.

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Supplemental Schedule 5
Summarized Information for Unconsolidated Real Estate Ventures
(dollars in thousands) (unaudited)
Combined Balance Sheet Information
 Total Ventures at 100%(1)
March 31, 2020December 31, 2019
ASSETS
Self storage properties, net$1,833,094  $1,835,235  
Other assets24,202  22,413  
Total assets$1,857,296  $1,857,648  
LIABILITIES AND EQUITY
Debt financing$989,382  $989,182  
Other liabilities22,144  20,487  
Equity845,770  847,979  
Total liabilities and equity$1,857,296  $1,857,648  

Combined Operating Information
Three Months Ended March 31, 2020
 Total Ventures at 100%(1)
NSA Proportionate Share (Ventures at 25%)(2)
Total revenue$40,238  $10,060  
Property operating expenses13,178  3,295  
Net operating income27,060  6,765  
Supervisory, administrative and other expenses
(2,669) (667) 
Depreciation and amortization(15,146) (3,787) 
Interest expense(10,264) (2,566) 
Acquisition and other expenses(399) (100) 
Net loss$(1,418) $(355) 
Add (subtract):
Equity in earnings adjustments related to amortization of basis differences
15  
Company's share of unconsolidated real estate venture real estate depreciation and amortization
3,787  
Company's share of FFO and Core FFO from unconsolidated real estate ventures
$3,447  






(1) Values represent entire unconsolidated real estate ventures at 100%, not NSA's proportionate share. NSA's ownership in each of the unconsolidated real estate ventures is 25%.
(2) NSA's proportionate share of its unconsolidated real estate ventures is derived by applying NSA's 25% ownership interest to each line item in the GAAP financial statements of the unconsolidated real estate ventures to calculate NSA's share of that line item. NSA believes this information offers insights into the financial performance of the Company, although the presentation of such information, and its combination with NSA's consolidated results, may not accurately depict the legal and economic implications of holding a noncontrolling interest in the unconsolidated real estate ventures. The operating agreements of the unconsolidated real estate ventures provide for the distribution of net cash flow to the unconsolidated real estate ventures' investors no less than monthly, generally in proportion to the investors’ respective ownership interests, subject to a promoted distribution to NSA upon the achievement of certain performance benchmarks by the non-NSA investor.

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Supplemental Schedule 6
Same Store Performance Summary By State
(dollars in thousands, except per square foot data) (unaudited)
Three Months Ended March 31, 2020 compared to Three Months Ended March 31, 2019
Total RevenueProperty Operating ExpensesNet Operating IncomeNet Operating Income Margin
StateStores1Q 20201Q 2019Growth1Q 20201Q 2019Growth1Q 20201Q 2019Growth1Q 20201Q 2019Growth
California81  $19,209  $18,686  2.8 %$5,383  $5,123  5.1 %$13,826  $13,563  1.9 %72.0 %72.6 %(0.6)%
Oregon60  9,566  9,476  0.9 %2,541  2,569  (1.1)%7,025  6,907  1.7 %73.4 %72.9 %0.5 %
Texas60  7,803  7,529  3.6 %2,816  2,824  (0.3)%4,987  4,705  6.0 %63.9 %62.5 %1.4 %
Florida37  8,387  8,155  2.8 %2,539  2,514  1.0 %5,848  5,641  3.7 %69.7 %69.2 %0.5 %
Georgia35  4,592  4,357  5.4 %1,524  1,491  2.2 %3,068  2,866  7.0 %66.8 %65.8 %1.0 %
North Carolina33  5,003  4,792  4.4 %1,445  1,454  (0.6)%3,558  3,338  6.6 %71.1 %69.7 %1.4 %
Oklahoma30  3,719  3,601  3.3 %1,185  1,136  4.3 %2,534  2,465  2.8 %68.1 %68.5 %(0.4)%
Arizona30  5,433  5,215  4.2 %1,526  1,489  2.5 %3,907  3,726  4.9 %71.9 %71.4 %0.5 %
Indiana16  2,540  2,502  1.5 %796  839  (5.1)%1,744  1,663  4.9 %68.7 %66.5 %2.2 %
Kansas16  2,150  1,992  7.9 %789  818  (3.5)%1,361  1,174  15.9 %63.3 %58.9 %4.4 %
Louisiana14  1,899  1,839  3.3 %645  644  0.2 %1,254  1,195  4.9 %66.0 %65.0 %1.0 %
Washington14  1,772  1,818  (2.5)%536  515  4.1 %1,236  1,303  (5.1)%69.8 %71.7 %(1.9)%
Nevada13  2,344  2,183  7.4 %659  608  8.4 %1,685  1,575  7.0 %71.9 %72.1 %(0.2)%
Colorado11  1,703  1,717  (0.8)%558  569  (1.9)%1,145  1,148  (0.3)%67.2 %66.9 %0.3 %
New Hampshire10  1,579  1,562  1.1 %561  560  0.2 %