National Storage Affiliates partners with Solar Landscape

GREENWOOD VILLAGE, Colo. - National Storage Affiliates Trust (NYSE: NYSE:NSA) and Solar Landscape have announced a strategic partnership to develop solar energy projects across the United States. The collaboration aims to install at least 100 megawatts of solar capacity, utilizing around 8.5 million square feet of rooftop space on NSA's properties in 42 states and Puerto Rico.

The initiative, which has already commenced development on its first sites, leverages the community solar model to supply local homes and businesses with clean energy at reduced costs. Notably, the partnership will incur no capital expenditure for NSA, as Solar Landscape will finance, develop, own, and operate the solar installations, in addition to making lease payments to NSA for the use of their rooftops.

David Cramer, President and CEO of NSA, expressed enthusiasm for the partnership's alignment with the company's sustainability goals and its potential to deliver value to both communities and shareholders. Solar Landscape's CEO and Co-Founder, Shaun Keegan, highlighted the multiple benefits of community solar, including reduced carbon footprints, discounted clean energy for residents, and revenue generation for property owners.

Solar Landscape also contributes to social advancement by promoting solar careers in historically underprivileged communities through its STEP-UP program. The program has trained over 2,500 individuals to date and continues to expand its impact, with recent training events held in Chicago in collaboration with the Hispanic American Construction Industry Association (HACIA).

The partnership is based on a previous working relationship between the companies that began in 2022. It promises to support NSA's corporate responsibility objectives by producing sustainable energy and fostering community engagement.

This news is based on a press release statement from National Storage Affiliates Trust and Solar Landscape.

In other recent news, National Storage Affiliates Trust has undergone significant changes and developments. Truist Securities revised its price target for the company to $41.00, maintaining a Hold rating. The firm also adjusted its forecast for the company's funds from operations (FFO) per share, decreasing the estimate for the years 2024 and 2025. The company's same-store revenue is expected to decline by approximately -3.75% in the third and fourth quarters of 2024.

National Storage reported a challenging second quarter in 2024 due to decreased customer demand for storage and a competitive operating environment, resulting in a revision of its 2024 guidance. Despite this, the company remains focused on acquisition opportunities and operational efficiencies. A significant boardroom transition was also reported with the resignation of trustee Mark Van Mourick and the appointment of Warren Allan.

Additionally, National Storage completed a share repurchase program, buying back 1.9 million shares for $72 million. The company also acquired a high-quality property portfolio in the Rio Grande Valley for $72 million, with another 13-property portfolio under contract for $75 million. These are some of the recent developments in the company.

InvestingPro Insights

National Storage Affiliates Trust's (NYSE: NSA) strategic partnership with Solar Landscape is set to harness the vast potential of its real estate for solar energy projects, aligning with the company's sustainability goals and potentially enhancing shareholder value. In the context of its financial performance and market position, recent data from InvestingPro provides a snapshot of NSA's current standing.

InvestingPro Data indicates that NSA has a market capitalization of $5.15 billion, reflecting its substantial size in the storage space. The company's P/E ratio stands at 23.97, which appears reasonable when considering its near-term earnings growth. However, the adjusted P/E ratio for the last twelve months as of Q2 2024 is higher at 40.92, suggesting investors are paying a premium for its earnings relative to historical norms.

The company's commitment to shareholder returns is evident, with an attractive dividend yield of 4.92%, and a history of raising its dividend for nine consecutive years, according to InvestingPro Tips. This consistent return to shareholders may be a point of interest for income-focused investors. Moreover, NSA's management has been actively buying back shares, signaling confidence in the company's value and future prospects.

With the stock trading near its 52-week high and a price that is 97.16% of this peak, investors may view NSA as maintaining a strong market position. Additionally, the company has seen a significant price uptick over the last six months, with a 31.83% total return, which may interest momentum investors.

While analysts anticipate a sales decline in the current year, and net income is expected to drop, the InvestingPro product lists several additional tips that might provide a more nuanced view of NSA's outlook. For those interested in a deeper analysis, there are 14 InvestingPro Tips available that could offer further insights into National Storage Affiliates Trust's performance and potential.

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