National Storage Affiliates Trust (NSA) swung to a net loss for the quarter ended Sep. 30, 2016. The company has made a net loss of $0.01 million in the quarter, against a net profit of $4.37 million in the last year period.
Revenue during the quarter surged 48.41 percent to $52.95 million from $35.68 million in the previous year period.
Cost of revenue surged 44.42 percent or $5.33 million during the quarter to $17.33 million. Gross margin for the quarter expanded 90 basis points over the previous year period to 67.27 percent.
Total expenses were $36.91 million for the quarter, up 39.82 percent or $10.51 million from year-ago period. Operating margin for the quarter expanded 428 basis points over the previous year period to 30.30 percent.
Operating income for the quarter was $16.04 million, compared with $9.28 million in the previous year period. However, the adjusted EBITDA for the quarter stood at $30.95 million compared with $20.22 million in the prior year period. At the same time, adjusted EBITDA margin improved 177 basis points in the quarter to 58.45 percent from 56.68 percent in the last year period.
For financial year 2016, the company projects diluted earnings per share to be in the range of $0.23 to $0.31.
Revenue from real estate activities during the quarter surged 48.41 percent or $17.27 million to $52.95 million.
Income from operating leases during the quarter surged 48.16 percent or $16.66 million to $51.26 million.
Revenue from other real estate activities during the quarter was $1.69 million, up 56.40 percent or $0.61 million from year-ago period.
Arlen Nordhagen, chief executive officer and chairman, commented, "We are extremely pleased with NSA's third quarter results, as we continue to deliver exceptional quarterly year-over-year increases in same store NOI and Core FFO per share. During the quarter, we invested approximately $206 million in 34 self storage properties, bringing our year-to-date acquisitions to 76 properties totaling over $490 million. Additionally, after quarter end, we formed a new joint venture with a major state pension fund, which subsequently acquired the 66 property iStorage portfolio. In conjunction with this transaction, NSA also acquired the iStorage property management platform and brand. Finally, we continued to strengthen our balance sheet and diversify our capital sources to fund our long-term growth plan."
Total assets jumped 51.44 percent or $537.41 million to $1,582.11 million on Sep. 30, 2016. On the other hand, total liabilities were at $760.06 million as on Sep. 30, 2016, up 43.17 percent or $229.17 million from year-ago.
Return on assets moved up 29 basis points to 0.90 percent in the quarter.
Debt increases substantially
Total debt was at $722.62 million as on Sep. 30, 2016, up 45.70 percent or $226.64 million from year-ago. Shareholders equity stood at $822.05 million as on Sep. 30, 2016, up 59.99 percent or $308.24 million from year-ago. As a result, debt to equity ratio went down 9 basis points to 0.88 percent in the quarter.
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