National Storage Affiliates Trust price target lowered by Evercore ISI

Investing.com - Evercore ISI reduced its price target on National Storage Affiliates Trust (NYSE:NSA) to $31.00 from $32.00 on Tuesday, while maintaining an Underperform rating on the stock. The REIT is currently trading at $29.11, down 26.04% over the past year, though InvestingPro data indicates the stock may be undervalued based on its Fair Value assessment.

The research firm updated its financial model for the storage REIT, resulting in a slight increase to its 2025 FFO estimate to $2.19, up by 1 cent. However, Evercore ISI lowered its 2026 FFO estimate by 1 cent to $2.15, which implies a year-over-year decline of 1.8%.

For 2026, Evercore ISI now assumes a 20 basis point occupancy decline compared to its previous flat projection. The firm maintained its RevPAF growth estimate of 50 basis points, resulting in same-store revenue growth forecast of 0.4%, down from its prior estimate of 0.7%.

With same-store expense estimates unchanged at 2.9% for 2026, Evercore ISI now projects same-store NOI growth of -0.7%, a deterioration from its previous estimate of -0.4%. This downward revision to forward estimates prompted the price target reduction.

Despite acknowledging the stock’s relatively low valuation, Evercore ISI believes National Storage Affiliates Trust lacks catalysts for outperformance without significant improvement in the housing market. InvestingPro data shows NSA trades at a high P/E ratio of 46.95 while offering a substantial 7.83% dividend yield. The company has raised its dividend for 10 consecutive years, which may appeal to income-focused investors despite current growth challenges. Discover more insights in NSA’s comprehensive Pro Research Report, available with an InvestingPro subscription.

In other recent news, National Storage Affiliates Trust has released its financial results for the third quarter of 2025. The company has scheduled an earnings conference call to discuss these results. In a separate development, National Storage Affiliates Trust has entered into a $350 million joint venture with Investment Real Estate Management, LLC. This partnership involves a significant equity contribution from NSA, with an expectation of preferred returns.

Additionally, CubeSmart is reportedly benefiting from stabilizing self-storage fundamentals in the New York City metropolitan area, as analyzed by KeyBanc. The region has seen a slowdown in new supply and a return to population growth, which could positively impact CubeSmart’s operations there. In prior earnings results, National Storage Affiliates Trust reported a second-quarter earnings per share of $0.19, slightly below analyst expectations. Revenue for the same period was $188.84 million, also slightly under projections.

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