National Storage adds Warren Allan to board after Van Mourick resigns

Published 15/08/2024, 22:14
National Storage adds Warren Allan to board after Van Mourick resigns

In an unexpected boardroom shift, National Storage Affiliates Trust (NYSE:NSA) announced today the immediate resignation of trustee Mark Van Mourick, who had been part of the board since 2015. The company clarified that Van Mourick's departure was not due to any disagreements regarding operations, policies, or practices.

Simultaneously, the board welcomed Warren Allan as a new trustee. Allan, 66, brings a wealth of experience to the role, having previously served as President and Manager of Optivest Properties, LLC, a former participating regional operator for National Storage. The board, having reviewed all relevant facts, affirmed Allan's independence in accordance with New York Stock Exchange standards and SEC rules.

This transition follows a significant transaction reported on July 8, 2024, where National Storage acquired assets from Optivest, including management agreements and intellectual property. The deal saw Optivest and its affiliates receive $8.2 million in cash and 548,944 Class A common units of NSA OP, LP, with Allan's share totaling approximately $2.9 million and 209,333 units, valued at about $8.4 million.

In other recent news, National Storage Affiliates Trust has announced the appointment of Warren Allan to its Board of Trustees and Audit Committee. This development coincides with the retirement of Mark Van Mourick from the board.

Additionally, National Storage Affiliates Trust has reported a challenging second quarter in 2024 due to a competitive operating environment and a muted housing market, which led to decreased customer demand for storage. The company revised its 2024 guidance as a result.

However, it remains optimistic about its long-term prospects, focusing on acquisition opportunities and internalization processes to improve operational efficiencies. The company reported a core FFO per share of $0.62 for Q2 2024, marking a decrease from the previous year.

It has also completed a share repurchase program, buying back 1.9 million shares for $72 million, and closed on a high-quality property portfolio acquisition in the Rio Grande Valley for $72 million, with another 13-property portfolio under contract for $75 million.

InvestingPro Insights

In light of the recent boardroom changes at National Storage Affiliates Trust (NYSE:NSA), investors may find the following InvestingPro Insights particularly relevant. The company currently boasts a market capitalization of approximately $4.84 billion, which reflects its standing in the industry. Despite concerns over a predicted sales decline in the current year, the company has demonstrated a robust gross profit margin of 74.54% over the last twelve months as of Q2 2024, showcasing its ability to maintain profitability under challenging conditions.

Moreover, National Storage has a track record of increasing shareholder value, as evidenced by its history of raising its dividend for nine consecutive years, alongside a notable dividend yield of 5.16%. This commitment to returning value to shareholders is further supported by an aggressive share buyback strategy, as highlighted by one of the InvestingPro Tips. Additionally, the company has experienced a strong return over the last three months, with a 16.65% total price return, which could signal confidence from the market regarding its future prospects.

For readers interested in a deeper dive into National Storage's financial health and future outlook, there are additional InvestingPro Tips available, which provide a comprehensive analysis of the company's performance and potential investment opportunities.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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