National Storage Affiliates stock holds steady as KeyBanc reiterates rating

Investing.com - National Storage Affiliates Trust (NYSE:NSA) maintained its Sector Weight rating from KeyBanc on Tuesday, following the company’s third-quarter earnings results that exceeded expectations. The REIT currently trades at a P/E ratio of 46.95, significantly above industry averages according to InvestingPro data.

The self-storage real estate investment trust reported sequential improvement in same-store revenue and net operating income, both increasing by 40 basis points compared to the second quarter of 2025.

Occupancy rates showed an 80 basis point improvement over the second quarter, which KeyBanc noted was an atypical seasonal trend for the storage sector.

Despite the positive quarterly results, KeyBanc highlighted that NSA shares have underperformed peers by approximately 1,550 basis points year-to-date, suggesting the earnings beat represents a "modestly positive outcome" against this backdrop.

The company reaffirmed its full-year guidance and indicated a stronger fourth-quarter outlook, which could signal building momentum heading into 2026, according to KeyBanc’s analysis. Income-focused investors may find NSA’s impressive 7.83% dividend yield attractive, with InvestingPro data showing the company has raised its dividend for 10 consecutive years. However, investors should note NSA’s high debt-to-equity ratio of 5.19 and current ratio of 0.81, indicating short-term obligations exceed liquid assets. For deeper analysis on NSA and 1,400+ other stocks, explore InvestingPro’s comprehensive research reports.

In other recent news, National Storage Affiliates Trust has reported its financial results for the third quarter ending September 30, 2025, with the company scheduling an earnings call to discuss the details. Additionally, the company has formed a $350 million joint venture with Investment Real Estate Management, LLC, where National Storage Affiliates Trust will provide 75% of the equity capital, amounting to up to $105 million. This venture aims to enhance their buying power through equity contributions and debt financing.

On the analyst front, Evercore ISI has lowered its price target for National Storage Affiliates Trust from $32.00 to $31.00, maintaining an Underperform rating. The firm’s financial model update included a slight adjustment in the 2025 FFO estimate to $2.19, while the 2026 FFO estimate was decreased by 1 cent to $2.15, reflecting a projected year-over-year decline.

In previous earnings, National Storage Affiliates Trust’s second-quarter 2025 results showed an earnings per share of $0.19, which was just below the analyst forecast of $0.20, and revenue slightly missed expectations at $188.84 million. Meanwhile, CubeSmart, another player in the self-storage sector, is expected to benefit from stabilizing market conditions in the New York City metropolitan area, as reported by KeyBanc.

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