NSR’s 1H FY26 Underlying Earnings Hit $84.3m as Occupancy Climbs
National Storage REIT delivered robust half-year results with earnings and occupancy gains, while agreeing to a premium acquisition offer from Brookfield-GIC consortium.
- Underlying earnings up 8.2% to $84.3 million
- Portfolio expands to 293 centres with 8.4% net lettable area growth
- Occupancy rises to 81.7%, REVPAM increases 5.3% to $286/m2
- Entered Scheme Implementation Deed for $2.86 per security acquisition
- Sustainability initiatives include solar energy and emissions reduction targets
Strong Financial Performance
National Storage REIT (NSR) reported a solid first half for fiscal year 2026, with underlying earnings climbing 8.2% to $84.3 million and underlying earnings per security rising 5.3% to 6.0 cents. The REIT’s operating margin remained robust at 68%, despite increased marketing spend and higher property-related costs. Total centre revenue grew 5.6% to $193 million, reflecting both organic growth and acquisitions.
NSR’s net tangible assets per security increased modestly to $2.61, supported by a 6.2% uplift in investment property values to $5.6 billion. The balance sheet remains strong with gearing at 37.8% and undrawn debt capacity of $202 million, bolstered by new debt facilities secured in early 2026.
Portfolio Expansion and Operational Momentum
The portfolio expanded to 293 centres, adding 19 new locations and growing net lettable area (NLA) by 8.4% to over 1.64 million square metres. Occupancy improved to 81.7%, driven by elevated customer enquiries and successful marketing campaigns such as the “Make Space” initiative launched in April 2025. Revenue per available square metre (REVPAM) rose 5.3% to $286, underpinned by broad-based growth across Australia and New Zealand.
NSR completed 11 developments adding 99,000 square metres of NLA and settled 18 acquisitions worth $200 million, including 12 operating centres and five development sites. The development pipeline remains healthy with 191,000 square metres under construction or with development approval, and an additional 210,000 square metres at concept and planning stages.
Acquisition Agreement with Brookfield-GIC Consortium
In a significant strategic move, NSR entered into a Scheme Implementation Deed with a consortium led by Brookfield Asset Management and GIC in December 2025. The consortium has offered $2.86 per stapled security, representing a 26.5% premium to NSR’s undisturbed security price and a 10.9% premium to its net tangible asset value. This values NSR’s equity at approximately $4 billion and enterprise value at around $6.7 billion.
The NSR Board unanimously recommends the transaction, subject to no superior proposals and an independent expert’s favourable opinion. The scheme remains conditional on shareholder and court approvals, as well as regulatory clearances, with implementation expected in the second quarter of calendar 2026.
Sustainability and Innovation Focus
NSR continues to embed sustainability into its operations, with over 150 solar systems generating more than 4,200 MWh of energy and a commitment to reduce Scope 1 and 2 emissions by 2030. The REIT also reported improvements in employee engagement and diversity, alongside investments in technology and automation to enhance customer service and operational efficiency.
These initiatives align with NSR’s vision to be a world leader in innovative and sustainable self-storage solutions, balancing growth with environmental and social governance priorities.
Bottom Line?
NSR’s strong operational momentum and premium acquisition offer set the stage for a transformative 2026, but investors await regulatory and shareholder approvals.
Questions in the middle?
- Will the Brookfield-GIC acquisition secure all necessary regulatory and shareholder approvals?
- How will NSR’s growth strategy evolve post-acquisition under new ownership?
- What impact will rising property costs and gearing have on future profitability?
