National Storage Affiliates Trust (NSA): BCG Matrix [Dec-2025 Updated]

You're looking at National Storage Affiliates Trust right now and wondering where the capital should flow next, so I mapped their business units onto the classic BCG Matrix for late 2025. We've got high-growth Sunbelt 'Stars' poised for 2026 gains, anchored by a 'Cash Cow' core portfolio guiding FFO between $2.17 and $2.23 per share, but we also see 'Dogs' like underperforming assets we're actively recycling after selling $66.5 million year-to-date. The real tension lies with the 'Question Marks,' like the delayed $0.03-$0.04 FFO impact from the PRO internalization and the 39% marketing spend spike on rebranded stores-dive below to see the clear strategic implications for your investment thesis.

Background of National Storage Affiliates Trust (NSA)

You're looking at National Storage Affiliates Trust (NSA) right as they've reported their third quarter of 2025 results, which gives us a solid, if somewhat mixed, picture of where the company stands late in the year. National Storage Affiliates Trust is a real estate investment trust, or REIT, based in Greenwood Village, Colorado, and their whole business revolves around owning, operating, and acquiring self-storage properties across the United States.

For the third quarter ending September 30, 2025, NSA reported total revenue of $188.70 million. This figure is interesting because while one source noted a year-over-year revenue increase of 2.54%, another indicated a year-over-year decrease of 2.6%. The trailing twelve months revenue, as of September 30, 2025, stood at $756.02 million.

Digging into the operational health, the same store performance showed some headwinds. Same store net operating income, or NOI (that's the property-level profit before corporate overhead), dropped by 5.7% compared to the third quarter of 2024. This was due to same store total revenues falling by 2.6% and property operating expenses climbing by 4.9% year-over-year.

Occupancy is a key metric for any storage operator, and as of September 30, 2025, same store period-end occupancy was 84.5%. That represents a drop of 140 basis points compared to the same time the prior year. On the bottom line, net income for Q3 2025 was $29.0 million, a 2.5% decrease from Q3 2024. Core Funds From Operations, or Core FFO (which REIT folks watch closely), came in at $76.5 million, or $0.57 per share, which was an 8.1% decline per share from the previous year.

Despite the operational pressures, National Storage Affiliates Trust is actively managing its portfolio. During the quarter, one of their joint ventures acquired two self-storage properties for approximately $32.0 million. Also, they completed a significant branding effort, rolling out all their Moove In branded stores under the iStorage name, which streamlined their operations down to six primary NSA operated brands.

To give you context on the broader environment, the United States self-storage market size was estimated at USD 45.41 billion in 2025, with projections to reach USD 57.53 billion by 2030, reflecting a CAGR of 4.85% over that period. The global market, for that matter, was expected to grow at a 7.4% CAGR in 2025. Management, for their part, maintained their full-year 2025 guidance, projecting Core FFO per share to land between $2.17 and $2.23.

National Storage Affiliates Trust (NSA) - BCG Matrix: Stars

You're looking at the segments of National Storage Affiliates Trust (NSA) that are currently leading the charge in a growing sector. These are the areas where high market share meets high potential, demanding investment to secure future Cash Cow status.

The properties driving this high-growth status are concentrated in key Sunbelt markets. For instance, during the second quarter of 2025, specific markets like Portland and Houston were noted for generating same store total revenue growth that was above portfolio-average. This indicates these geographic areas are outpacing the overall portfolio performance, a hallmark of a Star.

The operational shift through the internalization of the Participating Regional Operator (PRO) structure is a major Star catalyst, designed to fuel accelerated earnings growth starting in 2026. This move eliminates performance distribution sharing and is expected to provide significant G&A savings. Here's a look at the hard numbers tied to this strategic positioning:

National Storage Affiliates Trust is actively building market concentration in its core areas through strategic acquisitions. Management observed that the price gap between buyers and sellers has narrowed over the last several months, creating a more favorable environment for securing accretive deals. The company deployed capital in the third quarter of 2025 to execute this strategy.

The focus on operational efficiency post-internalization is intended to translate current high-growth market activity into superior financial returns. The CEO noted that the backdrop for self storage is the best seen in a number of years, with fundamental improvement expected in 2026 and beyond, contingent on interest rate cuts and a more favorable supply environment.

The investment in these leading properties and platforms consumes cash now to secure future dominance. For context on the overall business performance during this investment phase:

• Core Funds From Operations (Core FFO) per share for the nine months ended September 30, 2025, was $1.66.
• Core FFO per share for the third quarter of 2025 was $0.57.
• Capital recycling efforts totaled approximately $608 million spent since the beginning of 2023.

If National Storage Affiliates Trust maintains this success as the high-growth market slows, these units are set to become the next generation of Cash Cows. Finance: draft 13-week cash view by Friday.

National Storage Affiliates Trust (NSA) - BCG Matrix: Cash Cows

You're looking at the bedrock of National Storage Affiliates Trust's operations here, the segment that reliably funds the rest of the enterprise. This core portfolio consists of 1,067$ self-storage properties, which are designed to deliver that stable, recurring rental revenue you depend on. To be fair, the latest count as of September 30, 2025, actually showed ownership interests in and operation of 1,069$ self storage properties across 37 states and Puerto Rico, covering approximately 69.8 million rentable square feet. The geographic concentration is key; you see a 66% exposure to the Sunbelt region, which offers those long-term demographic tailwinds, even if current supply is creating some headwinds right now.

Here's a quick look at some of the Q3 2025 performance indicators that define this segment's cash-generating power:

The performance of this established portfolio underpins the full-year 2025 Core FFO guidance that National Storage Affiliates Trust has issued, which sits in the range of $2.17$ to $2.23$ per share. This guidance range, with a consensus estimate sitting at $$2.20$, shows management's expectation for the mature assets to continue generating substantial cash flow, even with the reported Q3 same store total revenue decrease of 2.6% year-over-year. You're looking for stability here, and that guidance provides the framework for it.

This cash flow is what allows for the consistent shareholder return you expect. For instance, the Q3 2025 common share dividend was declared at $0.57$, matching the Core FFO per share for that quarter, which defintely shows strong coverage. This reliable payout, funded by these mature assets, is exactly why we categorize them as Cash Cows; they consume less in new investment relative to the cash they pump out to cover corporate costs and shareholder distributions. National Storage Affiliates Trust also used some of this strength to acquire two self-storage properties for approximately $32.0$ million during the third quarter of 2025, a strategic deployment of capital.

National Storage Affiliates Trust (NSA) - BCG Matrix: Dogs

Dogs are units or products with a low market share and low growth rates. They frequently break even, neither earning nor consuming much cash. Dogs are generally considered cash traps because businesses have money tied up in them, even though they bring back almost nothing in return. These business units are prime candidates for divestiture.

You're looking at the segment of National Storage Affiliates Trust's portfolio that is underperforming in low-growth or highly competitive environments, which aligns perfectly with the Dogs quadrant. A clear example of this divestiture strategy involved non-core properties in the 5 states exited year-to-date. National Storage Affiliates Trust sold these properties for approximately $66.5 million in Q2 2025, signaling a move to shed assets that don't fit the core strategy. Honestly, this is the right call when the turnaround cost outweighs the potential return.

The performance metrics for these challenged assets, or the markets they reside in, show clear signs of being in this category. We can see this in the overall portfolio's struggles, which are often concentrated in these specific areas. For instance, the same-store portfolio ended Q3 2025 with an occupancy rate of 84.5%, which is below the portfolio's average and flags these assets for the asset recycling program. Also, the company noted an elevated use of concessions during the quarter, which directly drags down revenue in markets facing intense new supply pressure.

Here's a quick look at some of the key financial and operational data points that characterize the pressure on these lower-performing assets as of the third quarter of 2025:

The asset recycling program is designed to address these lower-performing assets directly. You'll recall that the President and CEO mentioned exiting 5 states year-to-date through property sales, which is a direct result of identifying assets that lack the scale for efficient management. Furthermore, specific markets are clearly lagging the broader portfolio performance. Markets like Atlanta and Phoenix generated definitely below-portfolio-average same-store total revenue growth in Q3 2025. These are the exact types of markets where the low-growth, low-share dynamic of the Dogs quadrant is most evident, so expect National Storage Affiliates Trust to continue minimizing exposure there.

The pressure in these areas is multifaceted. The -2.6% year-over-year decline in same-store total revenues for Q3 2025 was driven by a 150 basis point decrease in average occupancy and a 40 basis point year-over-year decline in average revenue per occupied square foot. Still, the company is actively managing this by focusing on strategic capital recycling.

Finance: draft 13-week cash view by Friday.

National Storage Affiliates Trust (NSA) - BCG Matrix: Question Marks

You're looking at the areas of National Storage Affiliates Trust that are in high-growth markets but currently hold a low market share. These are the units consuming cash now, hoping to become Stars later. For National Storage Affiliates Trust, these Question Marks are tied to recent, significant strategic shifts.

The core of the Question Mark category for National Storage Affiliates Trust centers on new growth avenues and ongoing integration efforts that have yet to show their full financial upside. These represent high potential but require heavy investment or clear execution to avoid becoming Dogs.

• - The full realization of the $0.03$-$0.04$ FFO accretion from PRO internalization, which is taking longer than expected to fully materialize. Management had expected this accretion, primarily from annual G&A savings, upon the completion of the transition, which was finalized at the end of the second quarter of 2025.
• - The new IRE Joint Venture, where National Storage Affiliates Trust committed 75% of the equity for a 10% preferred return, representing a new, unproven capital structure for growth. This joint venture has an anticipated total buying power of approximately $350$ million, with National Storage Affiliates Trust's equity commitment capped at $105$ million, and the capital expected to deploy over the next 24$ months.
• - Rebranded Moove In stores (now iStorage) that require significant marketing spend (up 39% in Q2 2025) to establish market share and drive revenue. This increased marketing was a factor in same-store property operating expenses rising 4.9% year-to-date in the third quarter of 2025.
• - The portfolio's ability to reverse the negative same-store NOI trend, which is guided to be between negative 4.25% and 5.75% for the full year 2025. For context, the second quarter of 2025 saw a same-store NOI decrease of 6.1% year-over-year, improving slightly to a 5.7% decrease in the third quarter of 2025.

The investment required for these areas is evident in the operating results. You can see the pressure points clearly when you map the recent performance metrics against the full-year expectations.

The internalization of the PRO structure, which closed on July 1, 2024, was meant to deliver that $0.03$-$0.04$ FFO per share accretion. While platform integrations are reported as 100% complete, the full financial benefit is still being realized, suggesting the expected G&A savings are being offset by other pressures, like the rising operating expenses.

The rebranding effort, moving properties like the 38$ Moove In Self Storage properties to iStorage, is a direct cash drain in the near term. This spend is necessary to consolidate brands and capture market recognition, but it pressures the same-store expense line. It's a classic Question Mark trade-off: spend now to build share, or risk the asset becoming a Dog.

Finance: draft the sensitivity analysis on the $105$ million IRE Joint Venture commitment against a 24$-month deployment timeline by next Tuesday.