National Storage REIT Posts 6.4% Earnings Growth, Expands to 274 Centres
National Storage REIT reported a robust FY25 with a $236.1 million profit and a growing portfolio of 274 centres, underpinned by strong capital partnerships and a strategic marketing push. The company sets an optimistic outlook for FY26, targeting higher earnings and distributions.
- IFRS profit of $236.1 million and underlying earnings growth of 6.4%
- Portfolio expanded to 274 centres with 20 new additions in FY25
- Development pipeline includes 54 projects totaling 489,000m² net lettable area
- Partnership with GIC deploying $498 million capital, recycling proceeds to repay debt
- FY26 guidance targets underlying EPS of at least 12.4 cents and distributions over $173 million
Strong Financial Performance and Portfolio Expansion
National Storage REIT (NSR) has delivered a solid financial performance for the year ended 30 June 2025, reporting an IFRS profit of $236.1 million, with underlying earnings rising 6.4% to $164 million. Earnings per security increased to 11.9 cents, reflecting steady operational momentum despite a slight dip in occupancy to 80.8%. The portfolio grew to 274 centres, adding 20 new locations across Australia and New Zealand, reinforcing NSR’s position as the largest self-storage owner and operator in the region.
Capital Partnerships and Development Pipeline Drive Growth
NSR’s growth strategy is bolstered by a $498 million capital deployment through a partnership with Singapore’s GIC, facilitating efficient expansion while recycling capital to reduce debt. This partnership underpins the National Storage Ventures Fund, which manages 16 self-storage assets and development projects. The company’s development pipeline is robust, with 54 projects underway or in planning stages, totaling nearly 489,000 square meters of net lettable area. This pipeline promises sustained growth and value accretion, with developments typically delivering a 40-50% uplift on cost upon stabilization.
Operational Highlights and Marketing Initiatives
Operationally, NSR reported a 1.0% increase in revenue per available square meter (REVPAM) to $277.3, driven by disciplined rate and occupancy management. Despite a modest occupancy decline, the company’s Q4 marketing campaigns, including the multi-channel “Make Space” initiative, generated a 15% surge in customer enquiries, the highest outside the COVID period. This marketing momentum contributed to a 0.8% occupancy increase in Q4, setting a positive tone for FY26.
Balance Sheet and Credit Profile
NSR maintains a strong balance sheet with total assets growing 12.6% to $5.7 billion and net tangible assets per security rising 2.4% to $2.58. The company’s gearing ratio increased to 33.0%, comfortably within its target range, supported by a diversified debt platform and $605 million of undrawn capacity. Moody’s reaffirmed NSR’s Baa2 stable credit rating, underscoring the REIT’s investment-grade status and financial resilience.
Sustainability and Future Outlook
NSR continues to embed sustainability into its operations, with initiatives targeting emissions reduction, increased employee engagement, and technology-driven efficiencies. The company’s FY26 guidance anticipates underlying earnings per security of at least 12.4 cents and distributions exceeding $173 million, with a portion paid as fully franked dividends. This outlook reflects confidence in ongoing demand for self-storage solutions and NSR’s strategic positioning to capitalize on market opportunities.
Bottom Line?
With a strong balance sheet, expanding footprint, and innovative growth strategies, NSR is well-positioned to sustain momentum into FY26 and beyond.
Questions in the middle?
- How will NSR balance occupancy challenges with rate growth in a competitive market?
- What impact will the GIC partnership have on NSR’s capital structure and future acquisitions?
- How effectively can NSR’s marketing initiatives convert increased enquiries into sustained revenue growth?
