Greenwood Village, CO-based National Storage Affiliates wrapped its first year as a public company in 2015, growing income from operations 80.4 percent over the previous year.
“We will continue to close the gap between us and our public peers as we use our nation marketing platform to generate leads and our call center to help close those leads to rentals,” said CEO Arlen Nordhagen during the company’s conference call with analysts.
Net income from operations exceeded $88.5 million. Revenue for the period totaled $133.9 million, a 74 percent increase over 2014.
Most of the revenue growth is attributable to a total of 58 facilities that the company acquired in 2015 for a total of $313 million. Since the end of the year the company purchased 16 facilities spanning a million square feet for $85 million.
The REIT, a conglomeration of several regional operators, significantly boosted average occupancy by 2.4 percent from the previous year reaching an average of 87.9 percent. Rents grew 9.3 percent to $10.62.
Implementing revenue management
Nordhagen said further adoption of the company’s new revenue management program across its network of stores will enable the company to further boost occupancy and rental rates.
“We expect in the first half of 2016 that we will broaden the implementation of this new system to 65 additional stores across seven new markets,” Nordhagen said.
Like the other publicly traded storage companies , NSA doesn’t expect to face any major head winds from new development during the first half of 2016. However, Nordhagen said there might be “relatively small” impacts further ahead.
“We are keeping a close watch on these new developments and are projecting somewhat slower revenue growth in our Portland, Charlotte and Colorado market in the second half of 2016 as a result,” Nordhagen said.