Form: 10-Q

Quarterly report pursuant to Section 13 or 15(d)

October 31, 2024

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2024
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission file number: 001-37351
National Storage Affiliates Trust
(Exact name of Registrant as specified in its charter)
 
Maryland 46-5053858
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification No.)

8400 East Prentice Avenue, 9th Floor
Greenwood Village, Colorado 80111
(Address of principal executive offices) (Zip code)
(720) 630-2600
(Registrant's telephone number including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class Trading symbols Name of each exchange on which registered
Common Shares of Beneficial Interest, $0.01 par value per share NSA New York Stock Exchange
Series A Cumulative Redeemable Preferred Shares of Beneficial Interest, par value $0.01 per share NSA Pr A New York Stock Exchange
Series B Cumulative Redeemable Preferred Shares of Beneficial Interest, par value $0.01 per share NSA Pr B New York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     Yes   No 
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  No 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large Accelerated Filer Accelerated Filer
Non-accelerated Filer Smaller Reporting Company
Emerging Growth Company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    
Yes   No 
As of October 28, 2024, 76,244,354 common shares of beneficial interest, $0.01 par value per share, were outstanding.



NATIONAL STORAGE AFFILIATES TRUST
TABLE OF CONTENTS
FORM 10-Q
Page
PART I. FINANCIAL INFORMATION
ITEM 1. Financial Statements
Condensed Consolidated Balance Sheets as of September 30, 2024 and December 31, 2023 (Unaudited)
Condensed Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2024 and 2023 (Unaudited)
Condensed Consolidated Statements of Comprehensive Income (Loss) for the Three and Nine Months Ended September 30, 2024 and 2023 (Unaudited)
Condensed Consolidated Statements of Changes in Equity for the Three and Nine Months Ended September 30, 2024 and 2023 (Unaudited)
Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2024 and 2023 (Unaudited)
Notes to Condensed Consolidated Financial Statements (Unaudited)
ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
ITEM 3. Quantitative and Qualitative Disclosures About Market Risk
ITEM 4. Controls and Procedures
PART II. OTHER INFORMATION
ITEM 1. Legal Proceedings
ITEM 1A. Risk Factors
ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds
ITEM 3. Defaults Upon Senior Securities
ITEM 4. Mine Safety Disclosures
ITEM 5. Other Information
ITEM 6. Exhibits
Signatures


2


PART I. FINANCIAL INFORMATION
ITEM 1. Financial Statements
NATIONAL STORAGE AFFILIATES TRUST
CONDENSED CONSOLIDATED BALANCE SHEETS
(dollars in thousands, except per share amounts)
(Unaudited)
September 30, December 31,
2024 2023
ASSETS
Real estate
Self storage properties $ 5,821,364  $ 5,792,174 
Less accumulated depreciation (1,006,543) (874,359)
Self storage properties, net 4,814,821  4,917,815 
Cash and cash equivalents 69,886  64,980 
Restricted cash 8,539  22,713 
Debt issuance costs, net 6,343  8,442 
Investment in unconsolidated real estate ventures 257,381  211,361 
Other assets, net 211,176  134,002 
Assets held for sale, net   550,199 
Operating lease right-of-use assets 21,515  22,299 
Total assets $ 5,389,661  $ 5,931,811 
LIABILITIES AND EQUITY
Liabilities
Debt financing $ 3,428,304  $ 3,658,205 
Accounts payable and accrued liabilities 108,424  92,766 
Interest rate swap liabilities 7,774  3,450 
Operating lease liabilities 23,493  24,195 
Deferred revenue 20,778  27,354 
Total liabilities 3,588,773  3,805,970 
Commitments and contingencies (Note 11)
Equity
Preferred shares of beneficial interest, par value $0.01 per share. 50,000,000 authorized, 14,692,381 and 14,685,716 issued (in series) and outstanding at September 30, 2024 and December 31, 2023, respectively, at liquidation preference
340,818  340,651 
Common shares of beneficial interest, par value $0.01 per share. 250,000,000 authorized, 76,216,680 and 82,285,995 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively
762  823 
Additional paid-in capital 1,124,533  1,509,563 
Distributions in excess of earnings (498,787) (449,907)
Accumulated other comprehensive income 19,543  21,058 
Total shareholders' equity 986,869  1,422,188 
Noncontrolling interests 814,019  703,653 
Total equity 1,800,888  2,125,841 
Total liabilities and equity $ 5,389,661  $ 5,931,811 
See notes to condensed consolidated financial statements.

3


NATIONAL STORAGE AFFILIATES TRUST
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(Unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2024 2023 2024 2023
REVENUE
Rental revenue $ 174,467  $ 201,833  $ 529,218  $ 595,273 
Other property-related revenue 7,405  7,764  20,654  22,184 
Management fees and other revenue 11,749  9,550  30,345  25,194 
Total revenue 193,621  219,147  580,217  642,651 
OPERATING EXPENSES
Property operating expenses 52,712  58,581  159,607  172,158 
General and administrative expenses 13,114  15,100  44,977  44,325 
Depreciation and amortization 47,661  55,842  141,702  168,005 
Other 3,643  4,138  10,510  8,531 
Total operating expenses 117,130  133,661  356,796  393,019 
OTHER (EXPENSE) INCOME
Interest expense (39,575) (43,065) (114,920) (120,706)
Loss on early extinguishment of debt (323)   (323) (758)
Equity in (losses) earnings of unconsolidated real estate ventures
(4,712) 1,930  (10,791) 5,469 
Acquisition and integration costs (1,164) (341) (2,151) (1,424)
Non-operating (expense) income (83) (24) 352  (426)
Gain on sale of self storage properties     63,841   
Other expense, net (45,857) (41,500) (63,992) (117,845)
Income before income taxes 30,634  43,986  159,429  131,787 
Income tax expense (863) (922) (2,290) (2,855)
Net income 29,771  43,064  157,139  128,932 
Net income attributable to noncontrolling interests
(11,070) (13,827) (62,349) (41,290)
Net income attributable to National Storage Affiliates Trust
18,701  29,237  94,790  87,642 
Distributions to preferred shareholders
(5,112) (5,110) (15,332) (13,908)
Net income attributable to common shareholders
$ 13,589  $ 24,127  $ 79,458  $ 73,734 
Earnings per share - basic $ 0.18  $ 0.28  $ 1.03  $ 0.83 
Earnings per share - diluted $ 0.18  $ 0.26  $ 1.03  $ 0.77 
Weighted average shares outstanding - basic 75,760  87,004  77,047  88,263 
Weighted average shares outstanding - diluted 75,760  146,118  77,047  147,610 
Dividends declared per common share $ 0.56  $ 0.56  $ 1.68  $ 1.67 

See notes to condensed consolidated financial statements.

4


NATIONAL STORAGE AFFILIATES TRUST
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(dollars in thousands)
(Unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2024 2023 2024 2023
Net income $ 29,771  $ 43,064  $ 157,139  $ 128,932 
Other comprehensive income (loss)
Unrealized (loss) gain on derivative contracts (21,234) 20,433  5,760  35,706 
Realized loss on derivative contracts       (1,643)
Reclassification of other comprehensive income to interest expense
(7,813) (9,018) (26,449) (26,239)
Other comprehensive (loss) income
(29,047) 11,415  (20,689) 7,824 
Comprehensive income 724  54,479  136,450  136,756 
Comprehensive loss (income) attributable to noncontrolling interests
1,668  (17,466) (52,372) (43,840)
Comprehensive income attributable to National Storage Affiliates Trust
$ 2,392  $ 37,013  $ 84,078  $ 92,916 

See notes to condensed consolidated financial statements.

5


NATIONAL STORAGE AFFILIATES TRUST
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(dollars in thousands, except number of shares)
(Unaudited)
Accumulated
Additional Distributions Other
Preferred Shares Common Shares Paid-in In Excess Of Comprehensive Noncontrolling Total
Number Amount Number Amount Capital Earnings (Loss) Income Interests Equity
Balances, December 31, 2022 9,017,588  $ 225,439  89,842,145  $ 898  $ 1,777,984  $ (396,650) $ 40,530  $ 740,813  $ 2,389,014 
Issuance of preferred shares 5,668,128  115,212  —  —  (1,938) —  —  —  113,274 
OP equity issued:
Acquisition of properties
—  —  —  —  —  —  —  37,257  37,257 
Issuance of Series A-1 preferred units —  —  —  —  —  —  —  750  750 
Redemptions of OP units —  —  67,431  1  1,093  —  30  (1,124)  
Repurchase of common shares
—  —  (1,622,874) (16) (69,295) —  —  —  (69,311)
Effect of changes in ownership for consolidated entities
—  —  —  —  (18,720) —  (1,245) 19,965   
Equity-based compensation expense
—  —  —  —  101  —  —  1,548  1,649 
Issuance of restricted common shares
—  —  12,417  —  —  —  —  —   
Vesting and forfeitures of restricted common shares, net
—  —  (2,977) —  (89) —  —  —  (89)
Preferred share dividends —  —  —  —  —  (3,962) —  —  (3,962)
Common share dividends —  —  —  —  —  (48,755) —  —  (48,755)
Distributions to noncontrolling interests
—  —  —  —  —  —  —  (34,431) (34,431)
Other comprehensive loss —  —  —  —  —  —  (14,162) (6,552) (20,714)
Net income —  —  —  —  —  28,959  —  11,433  40,392 
Balances, March 31, 2023 14,685,716  $ 340,651  88,296,142  $ 883  $ 1,689,136  $ (420,408) $ 25,153  $ 769,659  $ 2,405,074 
OP equity issued:
Acquisition of properties
—  —  —  —  —  —  —  5,577  5,577 
Redemptions of OP units —  —  354,936  3  5,530  —  113  (5,646)  
Effect of changes in ownership for consolidated entities
—  —  —  —  (1,833) —  (18) 1,851   
Equity-based compensation expense
—  —  —  —  125  —  —  1,552  1,677 
Issuance of restricted common shares
—  —  439  —  —  —  —  —  — 
See notes to condensed consolidated financial statements.

6


NATIONAL STORAGE AFFILIATES TRUST
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(dollars in thousands, except number of shares)
(Unaudited)
Accumulated
Additional Distributions Other
Preferred Shares Common Shares Paid-in In Excess Of Comprehensive Noncontrolling Total
Number Amount Number Amount Capital Earnings (Loss) Income Interests Equity
Vesting and forfeitures of restricted common shares, net
—  —  (1,723) —  (217) —  —  —  (217)
Preferred share dividends —  —  —  —  —  (5,402) —  —  (5,402)
Common share dividends —  —  —  —  —  (49,451) —  —  (49,451)
Distributions to noncontrolling interests
—  —  —  —  —  —  —  (35,456) (35,456)
Other comprehensive income —  —  —  —  —  —  11,658  5,465  17,123 
Net income —  —  —  —  —  29,448  —  16,028  45,476 
Balances, June 30, 2023 14,685,716  $ 340,651  88,649,794  $ 886  $ 1,692,741  $ (445,813) $ 36,906  $ 759,030  $ 2,384,401 
Issuance of preferred shares —  —  —  —  (92) —  —  —  (92)
OP equity issued for property acquisitions:
OP units, LTIP units, subordinated performance units and Series A-1 preferred units, net of offering costs
—  —  —  —  —  —  —  16,370  16,370 
Redemptions of OP units —  —  667,484  7  10,055  —  279  (10,341)  
Repurchase of common shares
—  —  (6,360,994) (63) (213,374) —  —  —  (213,437)
Effect of changes in ownership for consolidated entities
—  —  —  —  49,827  —  (559) (49,268)  
Equity-based compensation expense
—  —  —  —  122  —  —  1,580  1,702 
Vesting and forfeitures of restricted common shares, net
—  —  (487) —  —  —  —  —  — 
Preferred share dividends —  —  —  —  —  (5,393) —  —  (5,393)
Common share dividends —  —  —  —  —  (46,642) —  —  (46,642)
Distributions to noncontrolling interests
—  —  —  —  —  —  —  (34,657) (34,657)
Other comprehensive income —  —  —  —  —  —  7,776  3,639  11,415 
Net income —  —  —  —  —  29,237  —  13,827  43,064 
Balances, September 30, 2023 14,685,716  $ 340,651  82,955,797  $ 830  $ 1,539,279  $ (468,611) $ 44,402  $ 700,180  $ 2,156,731 
See notes to condensed consolidated financial statements.

7


NATIONAL STORAGE AFFILIATES TRUST
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(dollars in thousands, except number of shares)
(Unaudited)
Accumulated
Additional Distributions Other
Preferred Shares Common Shares Paid-in In Excess Of Comprehensive Noncontrolling Total
Number Amount Number Amount Capital Earnings (Loss) Income Interests Equity
Balances, December 31, 2023 14,685,716  $ 340,651  82,285,995  $ 823  $ 1,509,563  $ (449,907) $ 21,058  $ 703,653  $ 2,125,841 
Redemptions of OP units —  —  72,802  1  1,025  —  19  (1,426) (381)
Repurchase of common shares —  —  (5,491,925) (55) (203,518) —  —  —  (203,573)
Effect of changes in ownership for consolidated entities —  —  —  —  40,676  —  (620) (40,056)  
Equity-based compensation expense —  —  —  —  109  —  —  1,746  1,855 
Issuance of restricted common shares —  —  8,886  —    —  —  —   
Vesting and forfeitures of restricted common shares, net —  —  (2,658) —  (88) —  —  —  (88)
Equity offering costs —  —  —  —  (255) —  —  —  (255)
Preferred share dividends —  —  —  —  —  (5,110) —  —  (5,110)
Common share dividends —  —  —  —  —  (43,751) —  —  (43,751)
Distributions to noncontrolling interests —  —  —  —  —  —  —  (33,653) (33,653)
Other comprehensive income —  —  —  —  —  —  7,379  3,720  11,099 
Net income —  —  —  —  —  59,027  —  36,061  95,088 
Balances, March 31, 2024 14,685,716  $ 340,651  76,873,100  $ 769  $ 1,347,512  $ (439,741) $ 27,836  $ 670,045  $ 1,947,072 
Redemptions of OP equity —  —  205,910  2  2,668  —  84  (11,877) (9,123)
Repurchase of common shares —  —  (1,908,397) (19) (71,648) —  —  —  (71,667)
Effect of changes in ownership for consolidated entities —  —  —  —  15,115  —  (257) (14,858)  
Equity-based compensation expense —  —  —  —  139  —  —  2,192  2,331 
Vesting and forfeitures of restricted common shares, net —  —  (1,451) —  (35) —  —  —  (35)
Equity offering costs —  —  —  —  (57) —  —  —  (57)
Preferred share dividends —  —  —  —  —  (5,110) —  —  (5,110)
Common share dividends —  —  —  —  —  (41,979) —  —  (41,979)
See notes to condensed consolidated financial statements.

8


NATIONAL STORAGE AFFILIATES TRUST
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(dollars in thousands, except number of shares)
(Unaudited)
Accumulated
Additional Distributions Other
Preferred Shares Common Shares Paid-in In Excess Of Comprehensive Noncontrolling Total
Number Amount Number Amount Capital Earnings (Loss) Income Interests Equity
Distributions to noncontrolling interests —  —  —  —  —  —  —  (33,906) (33,906)
Other comprehensive loss —  —  —  —  —  —  (1,782) (959) (2,741)
Net income —  —  —  —  —  17,062  —  15,218  32,280 
Balances, June 30, 2024 14,685,716  $ 340,651  75,169,162  $ 752  $ 1,293,694  $ (469,768) $ 25,881  $ 625,855  $ 1,817,065 
Issuance of preferred shares upon redemption of preferred units 6,665  167  —  —  10  —  —  (177)  
OP equity issued in connection with internalization of PRO structure (Note 2) —  —  —  —  —  —  —  62,311  62,311 
Redemptions of OP Units —  —  1,048,202  10  13,766  —  199  (13,975)  
Effect of changes in ownership for consolidated entities —  —  —  —  (182,956) —  9,772  173,184   
Equity-based compensation expense —  —  —  —  98  —  —  1,813  1,911 
Vesting and forfeitures of restricted common shares, net —  —  (684) —    —  —  —   
Equity offering costs —  —  —  —  (79) —  —  —  (79)
Preferred share dividends —  —  —  —  —  (5,112) —  —  (5,112)
Common share dividends —  —  —  —  —  (42,608) —  —  (42,608)
Distributions to noncontrolling interests —  —  —  —  —  —  —  (33,324) (33,324)
Other comprehensive loss —  —  —  —  —  —  (16,309) (12,738) (29,047)
Net income —  —  —  —  —  18,701  —  11,070  29,771 
Balances, September 30, 2024 14,692,381  $ 340,818  76,216,680  $ 762  $ 1,124,533  $ (498,787) $ 19,543  $ 814,019  $ 1,800,888 
See notes to condensed consolidated financial statements.

9


NATIONAL STORAGE AFFILIATES TRUST
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(dollars in thousands)
(Unaudited)
Nine Months Ended
September 30,
2024 2023
OPERATING ACTIVITIES
Net income $ 157,139  $ 128,932 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 141,702  168,005 
Amortization of debt issuance costs 5,013  4,841 
Amortization of debt discount and premium, net (491) (428)
Gain on sale of self storage properties (63,841)  
Other 323  969 
Equity-based compensation expense 6,097  5,028 
Equity in losses (earnings) of unconsolidated real estate ventures
10,791  (5,469)
Distributions from unconsolidated real estate ventures
17,403  17,761 
Change in assets and liabilities, net of effects of self storage property acquisitions:
Other assets 1,716  (3,632)
Accounts payable and accrued liabilities 13,733  28,483 
Deferred revenue (6,661) 3,092 
Net Cash Provided by Operating Activities 282,924  347,582 
INVESTING ACTIVITIES
Acquisition of self-storage properties (25,063) (31,753)
Capital expenditures (13,005) (25,955)
Deposits and advances for self storage properties and other acquisitions (98) (241)
Investment in unconsolidated real estate venture (74,215)  
Expenditures for corporate furniture, equipment and other (1,693) (1,063)
Acquisition of intangible assets from former PROs (32,741) (16,924)
Proceeds from sale of self storage properties 616,812   
Other 908   
Net Cash Provided by (Used In) Investing Activities 470,905  (75,936)
FINANCING ACTIVITIES
Borrowings under debt financings 1,099,000  928,800 
Redemption of OP equity (9,504)  
Repurchase of common shares (275,195) (282,748)
Principal payments under debt financings (1,328,683) (632,587)
Payment of dividends to common shareholders (128,338) (144,848)
Payment of dividends to preferred shareholders (15,332) (14,757)
Distributions to noncontrolling interests (100,872) (104,845)
Debt issuance costs (3,601) (2,213)
Equity offering costs (572)  
Net Cash Used In Financing Activities (763,097) (253,198)
(Decrease) Increase in Cash, Cash Equivalents and Restricted Cash (9,268) 18,448 
See notes to condensed consolidated financial statements.

10


NATIONAL STORAGE AFFILIATES TRUST
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(dollars in thousands)
(Unaudited)
Nine Months Ended
September 30,
2024 2023
CASH, CASH EQUIVALENTS AND RESTRICTED CASH
Beginning of period 87,693  42,199 
End of period $ 78,425  $ 60,647 

Supplemental Cash Flow Information
Cash paid for interest
$ 106,345  $ 100,466 
Supplemental Disclosure of Non-Cash Investing and Financing Activities
Consideration exchanged in investment activity
Issuance of OP units and subordinated performance units   59,204 
Issuance of Series B preferred shares   113,182 
Other net liabilities assumed 174  197 
Internalization of PRO structure:
Issuance of OP units for acquisition of intangible assets from former PROs 62,311   
Change in accrued capital spending (468) 741 

See notes to condensed consolidated financial statements.

11


NATIONAL STORAGE AFFILIATES TRUST
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2024
(Unaudited)





1. ORGANIZATION AND NATURE OF OPERATIONS
National Storage Affiliates Trust was organized in the state of Maryland on May 16, 2013 and is a fully integrated, self-administered and self-managed real estate investment trust focused on the self storage sector. As used herein, "NSA," the "Company," "we," "our," and "us" refers to National Storage Affiliates Trust and its consolidated subsidiaries, except where the context indicates otherwise. The Company has elected and believes that it has qualified to be taxed as a real estate investment trust for U.S. federal income tax purposes ("REIT") commencing with its taxable year ended December 31, 2015.
Through its controlling interest as the sole general partner of NSA OP, LP (its "operating partnership"), a Delaware limited partnership formed on February 13, 2013, the Company is focused on the ownership, operation, and acquisition of self storage properties predominantly located within the top 100 metropolitan statistical areas throughout the United States. The Company also owns certain of its self storage properties through other consolidated subsidiaries of its operating partnership, which the Company refers to as "DownREIT partnerships." The DownREIT partnerships issue equity ownership interests that are intended to be economically equivalent to the Company's OP units ("DownREIT OP units").
The Company owned, managed and controlled 811 of its consolidated self storage properties in 38 states and Puerto Rico with approximately 52.0 million rentable square feet in approximately 407,000 storage units as of September 30, 2024. These properties are managed with local operational focus and expertise.
As of September 30, 2024, the Company also managed through its property management platform an additional portfolio of 259 properties owned by the Company's unconsolidated real estate ventures. These properties contain approximately 18.0 million rentable square feet, configured in approximately 143,000 storage units and located across 24 states. The Company owns a 25% equity interest in each of its unconsolidated real estate ventures.
As of September 30, 2024, in total, the Company operated and held ownership interests in 1,070 self storage properties located across 42 states and Puerto Rico with approximately 70.0 million rentable square feet in approximately 550,000 storage units.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
The accompanying condensed consolidated financial statements are presented on the accrual basis of accounting in accordance with U.S. generally accepted accounting principles ("GAAP") and have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC") regarding interim financial reporting. Accordingly, certain information and footnote disclosures required by GAAP for complete financial statements have been condensed or omitted in accordance with such rules and regulations. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation of the condensed consolidated financial statements have been included. The Company's results of operations for the quarterly and year to date periods are not necessarily indicative of the results to be expected for the full year or any other future period.
On January 3, 2023, the operating partnership, as borrower, the Company, and certain of the operating partnership's subsidiaries, as subsidiary guarantors, entered into a third amended and restated credit agreement with KeyBank National Association, as administrative agent, and a syndicated group of lenders party thereto, which expanded the total borrowing capacity of its credit facility by $405.0 million to $1.955 billion. The Company presented changes in borrowings from certain lenders on a net basis in its prior year interim condensed consolidated statement of cash flows. The Company has corrected this error in the accompanying condensed consolidated statement of cash flows for the nine month period ended September 30, 2023 to present on a gross basis the constructive receipts and payments under debt financings of $129.8 million and $129.8 million, respectively. The corrections had no impact to the total net cash used in financing activities in any interim period. The Company evaluated this adjustment both qualitatively and quantitatively and has concluded that this adjustment is immaterial to all impacted periods.

12


Principles of Consolidation
The Company's financial statements include the accounts of its operating partnership and its controlled subsidiaries. All significant intercompany balances and transactions have been eliminated in the consolidation of entities.
When the Company obtains an economic interest in an entity, the Company evaluates the entity to determine if the entity is deemed a variable interest entity ("VIE"), and if the Company is deemed to be the primary beneficiary, in accordance with authoritative guidance issued on the consolidation of VIEs. When an entity is not deemed to be a VIE, the Company considers the provisions of additional guidance to determine whether the general partner controls a limited partnership or similar entity when the limited partners have certain rights. The Company consolidates all entities that are VIEs and of which the Company is deemed to be the primary beneficiary. The Company has determined that its operating partnership is a VIE. The sole significant asset of National Storage Affiliates Trust is its investment in its operating partnership, and consequently, substantially all of the Company’s assets and liabilities represent those assets and liabilities of its operating partnership.
As of September 30, 2024, the Company's operating partnership was the primary beneficiary of, and therefore consolidated, 22 partnerships that are considered VIEs, which owned 49 self storage properties. The net book value of the real estate owned by these VIEs was $410.0 million and $418.9 million as of September 30, 2024 and December 31, 2023, respectively. For certain DownREIT partnerships which are subject to fixed rate mortgages payable, the carrying value of such fixed rate mortgages payable held by these VIEs was $188.7 million and $188.7 million as of September 30, 2024 and December 31, 2023, respectively. The creditors of the consolidated VIEs do not have recourse to the Company's general credit.
Revenue Recognition
Rental revenue
Rental revenue consists of space rentals and related fees. Management has determined that all of the Company's leases are operating leases. Substantially all leases may be terminated on a month-to-month basis and rental income is recognized ratably over the lease term using the straight-line method. Rents received in advance are deferred and recognized on a straight-line basis over the related lease term associated with the prepayment. Promotional discounts and other incentives are recognized as a reduction to rental income over the applicable lease term.
Other property-related revenue
Other property-related revenue primarily consists of ancillary revenues such as tenant insurance and/or tenant warranty protection-related access fees, sales of storage supplies and truck rentals which are recognized in the period earned.
The Company has tenant insurance and/or tenant warranty protection plan-related arrangements with insurance companies and the Company’s tenants. During the three months ended September 30, 2024 and 2023, the Company recognized $6.3 million and $6.3 million, respectively, of tenant insurance and tenant warranty protection plan revenues and during the nine months ended September 30, 2024 and 2023, the Company recognized $17.1 million and $17.9 million, respectively, of tenant insurance and tenant warranty protection plan revenues.
The Company sells boxes, packing supplies, locks, other retail merchandise and rents moving trucks at its properties. During the three months ended September 30, 2024 and 2023, the Company recognized retail sales of $0.5 million and $0.6 million, respectively and during the nine months ended September 30, 2024 and 2023, the Company recognized retail sales of $1.5 million and $1.9 million, respectively.
Management fees and other revenue
Management fees and other revenue consist of property management fees, platform fees, call center fees, acquisition fees, amounts related to the facilitation of tenant warranty protection or tenant insurance programs for certain stores in the Company's consolidated portfolio and unconsolidated real estate ventures, access fees associated with tenant insurance-related arrangements, and profit distributions from the Company's interest in a reinsurance company.

13


With respect to the 2016 Joint Venture, the 2018 Joint Venture, the 2023 Joint Venture and the 2024 Joint Venture (as each is defined in Note 5), the Company provides supervisory and administrative property management services, centralized call center services, and technology platform and revenue management services to the properties in the unconsolidated real estate ventures. The property management fees for the 2016 Joint Venture, 2018 Joint Venture and 2023 Joint Venture are equal to 6% of monthly gross revenues and net sales revenues from the assets of the unconsolidated real estate ventures, and the platform fees are equal to $1,250 per month per unconsolidated real estate venture property. The property management fees for the 2024 Joint Venture are equal to 4% of monthly gross revenues and net sales revenues from the assets of the unconsolidated real estate venture. With respect to the 2016 Joint Venture, the 2023 Joint Venture and 2024 Joint Venture, the call center fee is equal to 1% of each of monthly gross revenues and net sales revenues. During the three months ended September 30, 2024 and 2023, the Company recognized property management fees, call center fees and platform fees of $4.7 million and $4.2 million, respectively and during the nine months ended September 30, 2024 and 2023, the Company recognized property management fees, call center fees and platform fees of $13.5 million and $12.6 million, respectively.
The Company also earns acquisition fees for properties acquired by the unconsolidated real estate ventures, which are the 2016 Joint Venture, the 2018 Joint Venture, 2023 Joint Venture and the 2024 Joint Venture (each as defined in Note 5). These fees are based on a percentage of the gross capitalization of the acquired assets determined by the members of the 2016 Joint Venture, the 2018 Joint Venture, the 2023 Joint Venture and the 2024 Joint Venture, and are generally earned when the unconsolidated real estate ventures obtain title and control of an acquired property. During the three months ended September 30, 2024 and 2023, the Company recognized acquisition fees of $0.6 million and $0, respectively and during the nine months ended September 30, 2024 and 2023, the Company recognized acquisition fees of $0.6 million and $0, respectively.
The Company provides or makes available tenant insurance or tenant warranty protection programs for tenants at its properties. For certain of the properties in the Company’s consolidated portfolio and unconsolidated real estate ventures, the Company provides such tenant insurance through the Company’s wholly-owned captive insurance company and a separate reinsurance company in which the Company has a partial ownership interest. With respect to properties in all of the Company’s unconsolidated real estate ventures, the Company receives 50% of all proceeds from tenant insurance and tenant warranty protection programs at each unconsolidated real estate venture property in exchange for facilitating the programs at those properties. During the three months ended September 30, 2024 and 2023, the Company recognized $6.1 million and $5.2 million, respectively, of revenue related to these activities and during the nine months ended September 30, 2024 and 2023, the Company recognized $15.6 million and $12.3 million, respectively, of revenue related to these activities.
Gain on sale of self storage properties
The Company recognizes gains from disposition of properties only upon closing in accordance with the guidance on sales of nonfinancial assets. Profit on real estate sold is recognized upon closing when all, or substantially all, of the promised consideration has been received and is nonrefundable and the Company has transferred control of the facilities to the purchaser.
Investments in Unconsolidated Real Estate Ventures
The Company’s investments in its unconsolidated real estate ventures are recorded under the equity method of accounting in the accompanying condensed consolidated financial statements. Under the equity method, the Company’s investments in unconsolidated real estate ventures are stated at cost and adjusted for the Company’s share of net earnings or losses and reduced by distributions. Equity in earnings (losses) is recognized based on the Company’s 25% ownership interest in the earnings (losses) of the unconsolidated real estate ventures, except for the 2024 Joint Venture, for which the Company follows the hypothetical liquidation at book value ("HLBV") method. The Company follows the "nature of the distribution approach" for classification of distributions from its unconsolidated real estate ventures in its condensed consolidated statements of cash flows. Under this approach, distributions are reported on the basis of the nature of the activity or activities that generated the distributions as either a return on investment, which are classified as operating cash flows, or a return of investment (e.g., proceeds from the unconsolidated real estate ventures' sale of assets) which are reported as investing cash flows.

14


Noncontrolling Interests
All of the limited partner equity interests ("OP equity") in the operating partnership not held by the Company are reflected as noncontrolling interests. Noncontrolling interests also include ownership interests in DownREIT partnerships held by entities other than the operating partnership or its subsidiaries. In the condensed consolidated statements of operations, the Company allocates net income (loss) attributable to noncontrolling interests to arrive at net income (loss) attributable to National Storage Affiliates Trust.
For transactions that result in changes to the Company's ownership interest in its operating partnership, the carrying amount of noncontrolling interests is adjusted to reflect such changes. The difference between the fair value of the consideration received or paid and the amount by which the noncontrolling interest is adjusted is reflected as an adjustment to additional paid-in capital on the condensed consolidated balance sheets.
Allocation of Net Income (Loss)
Effective July 1, 2024, in connection with the internalization of the PRO structure, all outstanding Class B units of our operating partnership ("subordinated performance units'") including all units of the DownREIT partnerships intended to be economically equivalent to the subordinated performance units ("DownREIT subordinated performance units") were converted into OP units and units of the DownREIT partnerships intended to be economically equivalent to OP units ("DownREIT OP units"), respectively. For periods in which the subordinated performance units were outstanding, the Company allocated GAAP income utilizing the HLBV method, in which income or loss was allocated based on the change in each unitholders’ claim on the net assets of its operating partnership at period end after adjusting for any distributions or contributions made during such period. For periods in which the subordinated performance units are not outstanding, the Company allocates GAAP income based on the number of common shares and partnership units (including DownREIT OP units) outstanding.
Other Comprehensive Income (Loss)
The Company has cash flow hedge derivative instruments that are measured at fair value with unrealized gains or losses recognized in other comprehensive income (loss) with a corresponding adjustment to accumulated other comprehensive income (loss) within equity, as discussed further in Note 12.
Cash and Cash Equivalents
The Company considers all highly-liquid investments purchased with original maturities of three months or less to be cash equivalents. From time to time, the Company maintains cash balances in financial institutions in excess of federally insured limits. The Company has never experienced a loss that resulted from exceeding federally insured limits.
Restricted Cash
The Company's restricted cash consists of escrowed funds deposited with financial institutions resulting from property sales for which we elected to purchase replacement property in accordance with Section 1031 of the Code, and for real estate taxes, insurance and other reserves for capital improvements in accordance with the Company's loan agreements.
Use of Estimates
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

15


Internalization of PRO Structure
The Company completed the internalization of its PRO structure on July 1, 2024 (the "Closing Date"). As a result of the internalization, the Company purchased certain of each PRO’s assets, which included each PRO’s asset management and property management contracts (collectively, the "management contracts"), certain of each PRO's intellectual property and brands ("PRO IP") and certain rights related to certain PROs' tenant insurance programs (collectively, along with the management contracts and PRO IP, the "PROs' intangible assets"). The Company is transitioning the majority of operations in a phased approach, which has begun and is expected to continue over the 12 month period following the Closing Date, and the Company has executed new asset management and property management agreements with a number of its former PROs for all or a part of this transitionary period at newly negotiated management fees.
Consideration paid for the PROs' management contracts and PRO IP totaled approximately $34.6 million, consisting of 775,210 OP units and $3.4 million in cash. The Company allocated the purchase price to intangible assets acquired, consisting of management contracts and certain PROs' trade names. The Company also acquired certain rights related to certain PROs' tenant insurance-related programs. The consideration paid for the rights associated with the tenant insurance-related programs was approximately $60.3 million, consisting of 773,656 OP units and $29.2 million in cash. In addition, the Company incurred $1.4 million in transaction fees related to the transactions.
Additionally, in connection with the internalization of its PRO structure, effective July 1, 2024, all 11,906,167 outstanding subordinated performance units including all DownREIT subordinated performance units were converted into an aggregate of 17,984,787 OP units and DownREIT OP units. Each subordinated performance unit and DownREIT subordinated performance unit was converted into a number of OP units and DownREIT OP units determined by dividing the average cash available for distribution (CAD) per unit on the series subordinated performance units and DownREIT subordinated performance units over a one-year period ending December 31, 2023, by 110% of the CAD per unit on the OP units determined over the same period. CAD per unit on the series subordinated performance units, DownREIT subordinated performance units, OP units and DownREIT OP units was determined by the Company based upon the application of the provisions of the operating partnership agreement applicable to the distributions of operating cash flow and capital transactions proceeds.
3. SHAREHOLDERS' EQUITY AND NONCONTROLLING INTERESTS
Shareholders' Equity
At the Market ("ATM") Program
On February 27, 2019, the Company entered into a sales agreement with certain sales agents, pursuant to which the Company may sell from time to time up to an aggregate of $250.0 million of common shares of beneficial interest, $0.01 par value per share of the Company ("common shares") and 6.000% Series A cumulative redeemable Preferred Shares of beneficial interest ("Series A Preferred Shares") in sales deemed to be "at the market" offerings (the "sales agreement"). On May 19, 2021, the Company entered into an amendment to the sales agreement with certain sales agents, whereby the Company increased the aggregate gross sale price under the program to $400.0 million, which included $31.0 million of the remaining available offered shares. The sales agreement contemplates that, in addition to the issuance and sale by the Company of offered shares to or through the sale agents, the Company may enter into separate forward sale agreements with any forward purchaser. Forward sale agreements, if any, will include only the Company's common shares and will not include any Series A Preferred Shares. If the Company enters into a forward sale agreement with any forward purchaser, such forward purchaser will attempt to borrow from third parties and sell, through the related agent, acting as sales agent for such forward purchaser (each, a "forward seller"), offered shares, in an amount equal to the offered shares subject to such forward sale agreement, to hedge such forward purchaser’s exposure under such forward sale agreement. The Company may offer the common shares and Series A Preferred Shares through the agents, as the Company's sales agents, or, as applicable, as forward seller, or directly to the agents or forward sellers, acting as principals, by means of, among others, ordinary brokers’ transactions on the NYSE or otherwise at market prices prevailing at the time of sale or at negotiated prices.
During the nine months ended September 30, 2024, the Company did not sell any common shares through the ATM program. As of September 30, 2024, the Company had $169.1 million of capacity remaining under its most recent ATM Program.

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Common Share Repurchase Program
On July 11, 2022, the Company approved a share repurchase program authorizing, but not obligating, the repurchase of up to $400.0 million of the Company's common shares of beneficial interest from time to time. On December 1, 2023, the Company approved a new share repurchase program authorizing, but not obligating, the repurchase of up to $275.0 million of the Company's common shares from time to time. The timing, manner, price and amount of any repurchase transactions will be determined by the Company in its discretion and will be subject to share price, availability, trading volume and general market conditions. During the nine months ended September 30, 2024, the Company repurchased 7,400,322 common shares for approximately $275.2 million, including commissions and fees.
Series A Preferred Shares
The Series A Preferred Shares rank senior to the Company's common shares with respect to rights and rights upon its liquidation, dissolution or winding up. Dividends on the Series A Preferred Shares, which are payable quarterly in arrears, are cumulative from the date of original issuance in the amount of $1.50 per share each year. The Series A Preferred Shares became redeemable by the Company in October 2022 for a cash redemption price of $25.00 per share, plus accrued but unpaid dividends. The increase in Series A Preferred Shares outstanding from December 31, 2023 to September 30, 2024, was due to the issuance of 6,665 Series A Preferred Shares upon the redemption of an equivalent number of 6.000% Series A-1 Cumulative Redeemable Preferred Units ("Series A-1 preferred units").
Noncontrolling Interests
All of the OP equity in the Company's operating partnership not held by the Company are reflected as noncontrolling interests. Noncontrolling interests also include ownership interests in DownREIT partnerships held by entities other than the Company's operating partnership. NSA is the general partner of its operating partnership and is authorized to cause its operating partnership to issue additional partner interests, including preferred units, OP units and LTIP units at such prices and on such other terms as it determines in its sole discretion.
As of September 30, 2024 and December 31, 2023, units reflecting noncontrolling interests consisted of the following:
September 30, 2024 December 31, 2023
Series A-1 preferred units 1,205,675  1,212,340 
OP units 52,301,412  37,635,683 
Subordinated performance units   7,991,271 
LTIP units 870,732  785,932 
DownREIT units
DownREIT OP units 5,769,214  2,120,491 
DownREIT subordinated performance units   4,133,474 
Total 60,147,033  53,879,191 
Series A-1 Preferred Units
The Series A-1 preferred units rank senior to OP units in the Company's operating partnership with respect to distributions and liquidation. The Series A-1 preferred units have a stated value of $25.00 per unit and receive distributions at an annual rate of 6.000%. These distributions are cumulative. The Series A-1 preferred units are redeemable at the option of the holder after the first anniversary of the date of issuance, which redemption obligations may be satisfied at the Company’s option in cash in an amount equal to the market value of an equivalent number of the Series A Preferred Shares or the issuance of Series A Preferred Shares on a one-for-one basis, subject to adjustments. The Series A Preferred Shares are redeemable by the Company for a cash redemption price of $25.00 per share, plus accrued but unpaid dividends beginning in October 2022. The decrease in Series A-1 preferred units outstanding from December 31, 2023 to September 30, 2024, was due to the redemption of 6,665 Series A-1 preferred units for an equivalent number of Series A Preferred Shares.

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OP Units and DownREIT OP units
OP units in the Company's operating partnership are redeemable for cash or, at the Company's option, exchangeable for the Company's common shares on a one-for-one basis, and DownREIT OP units are redeemable for cash or, at the Company's option, exchangeable for OP units in its operating partnership on a one-for-one basis, subject to certain adjustments in each case. The holders of OP units are generally not entitled to elect redemption until one year after the issuance of the OP units. The holders of DownREIT OP units are generally not entitled to elect redemption until five years after the date of the contributor's initial contribution.
The increase in OP units outstanding from December 31, 2023 to September 30, 2024 was due to (i) 14,376,264 OP units issued upon the conversion of 7,772,693 subordinated performance units due to the internalization of the PRO structure, (ii) the issuance of 1,548,866 OP units in connection with the purchase of the PROs' intangible assets, (iii) 43,556 OP units issued upon the voluntary conversion of 23,690 subordinated performance units, and (iv) the conversion of 92,174 LTIP units into an equivalent number of OP units, partially offset by the redemption of 1,326,914 OP units for an equal number of common shares, 40,200 OP units that were exchanged for DownREIT OP units and the redemption of 28,017 OP units for cash.
The increase in DownREIT OP units outstanding from December 31, 2023 to September 30, 2024 was due to 3,608,523 DownREIT OP units issued upon the conversion of 4,133,474 DownREIT subordinated performance units due to the internalization of the PRO structure and 40,200 DownREIT OP units that were issued in exchange for OP units.
Subordinated Performance Units and DownREIT Subordinated Performance Units
Effective July 1, 2024, in connection with the internalization of the PRO structure, all 11,906,167 outstanding subordinated performance units (including all DownREIT subordinated performance units) were converted into an aggregate of 17,984,787 OP units and DownREIT OP units. Each subordinated performance unit and DownREIT subordinated performance unit was converted into the number of OP units and DownREIT OP units determined by dividing the average cash available for distribution (CAD) per unit on the series subordinated performance units over the one-year period ending December 31, 2023, by 110% of the CAD per unit on the OP units determined over the same period.
The decrease in subordinated performance units outstanding from December 31, 2023 to September 30, 2024 was due to (i) the conversion of 7,772,693 subordinated performance units into 14,376,264 OP units due to the internalization of the PRO structure, (ii) the voluntary conversion of 23,690 subordinated performance units into 43,556 OP units (iii) and the redemption of 194,888 subordinated performance units for cash.
The decrease in DownREIT subordinated performance units outstanding from December 31, 2023 to September 30, 2024 was due to the conversion of 4,133,474 DownREIT subordinated performance units into 3,608,523 DownREIT OP units due to the internalization of the PRO structure.
LTIP Units
LTIP units are a special class of partnership interest in the Company's operating partnership that allow the holder to participate in the ordinary and liquidating distributions received by holders of the OP units (subject to the achievement of specified levels of profitability by the Company's operating partnership or the achievement of certain events). LTIP units may also, under certain circumstances, be convertible into OP units on a one-for-one basis, which are then exchangeable for common shares as described above.
The increase in LTIP units outstanding from December 31, 2023 to September 30, 2024 was due to issuance of 176,974 compensatory LTIP units to employees and trustees, net of forfeitures, partially offset by the conversion of 92,174 LTIP units into an equivalent number of OP units.

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4. SELF STORAGE PROPERTIES
Self storage properties are summarized as follows (dollars in thousands):
September 30, 2024 December 31, 2023
Land $ 1,038,183  $ 1,035,562 
Buildings and improvements 4,772,797  4,746,105 
Furniture and equipment 10,384  10,507 
Total self storage properties 5,821,364  5,792,174 
Less accumulated depreciation (1,006,543) (874,359)
Self storage properties, net $ 4,814,821  $ 4,917,815 
Depreciation expense related to self storage properties amounted to $45.4 million and $53.2 million during the three months ended September 30, 2024 and 2023, respectively and $136.2 million and $158.3 million during the nine months ended September 30, 2024 and 2023, respectively.
5. INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURES
2024 Joint Venture
On February 13, 2024, a wholly owned subsidiary of the Company (the "2024 NSA Member") entered into an agreement (the "2024 JV Agreement") to form a joint venture (the "2024 Joint Venture") with an affiliate of Heitman Capital Management LLC (the "2024 JV Investor" and, together with the 2024 NSA Member, the "2024 JV Members"). The 2024 Joint Venture was capitalized with approximately $140.8 million in equity (approximately $35.2 million from the 2024 NSA Member in exchange for a 25% ownership interest and approximately $105.6 million from the 2024 JV Investor in exchange for a 75% ownership interest) and proceeds from a $210.0 million interest-only secured debt financing with an interest rate of 6.05% per annum and a term of five years.
A subsidiary of the Company is acting as the non-member manager of the 2024 Joint Venture (the "2024 NSA Manager"). The 2024 NSA Manager directs, manages and controls the day-to-day operations and affairs of the 2024 Joint Venture but may not cause the 2024 Joint Venture to make certain major decisions involving the business of the 2024 Joint Venture without the consent of both 2024 JV Members, including the approval of annual budgets, sales and acquisitions of properties, financings, and certain actions relating to bankruptcy.
The Company's investment in the 2024 Joint Venture is accounted for using the equity method of accounting and is included in investment in unconsolidated real estate ventures in the Company’s condensed consolidated balance sheets. The Company’s earnings from its investment in the 2024 Joint Venture are presented in equity in (losses) earnings of unconsolidated real estate ventures on the Company’s condensed consolidated statements of operations.
During the three months ended March 31, 2024, pursuant to a contribution agreement executed by the 2024 JV Members on December 21, 2023, in exchange for cash the Company contributed to the 2024 Joint Venture 56 self storage properties located across seven states, consisting of approximately 3.2 million rentable square feet configured in over 24,000 storage units.
2023 Joint Venture
On December 15, 2023, the Company, through a newly formed subsidiary (the "2023 NSA Member"), entered into an agreement (the "2023 JV Agreement") to form a joint venture (the "2023 Joint Venture") with a state pension fund advised by Heitman Capital Management LLC (the "2023 JV Investor," together with the 2023 NSA Member, the "2023 JV Members") to acquire and operate self storage properties. The 2023 JV Agreement provides for equity capital contributions by the 2023 JV Members of up to $400.0 million over a twenty-four month investment period (subject to two six-month extension options if both of the 2023 JV Members agree) starting in December 2023, with the 2023 JV Investor holding a 75% ownership interest and the 2023 NSA Member holding a 25% ownership interest.

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A subsidiary of the Company is acting as the non-member manager of the 2023 Joint Venture (the "2023 NSA Manager"). The 2023 NSA Manager directs, manages and controls the day-to-day operations and affairs of the 2023 Joint Venture but may not cause the 2023 Joint Venture to make certain major decisions involving the business of the 2023 Joint Venture without the consent of both 2023 JV Members, including the approval of annual budgets, sales and acquisitions of properties, financings, and certain actions relating to bankruptcy.
The Company's investment in the 2023 Joint Venture is accounted for using the equity method of accounting and is included in investment in unconsolidated real estate ventures in the Company’s condensed consolidated balance sheets. The Company’s earnings from its investment in the 2023 Joint Venture are presented in equity in (losses) earnings of unconsolidated real estate ventures on the Company’s condensed consolidated statements of operations.
During the three months ended September 30, 2024, the 2023 Joint Venture acquired 18 self storage properties located across two states, consisting of approximately 1.2 million rentable square feet configured in over 8,000 storage units for approximately $147.9 million. The 2023 Joint Venture financed the acquisitions with capital contributions from the 2023 JV Members, of which the Company contributed approximately $37.0 million.
2018 Joint Venture
As of September 30, 2024, the Company's unconsolidated real estate venture, formed in September 2018 with an affiliate of Heitman America Real Estate REIT LLC (the "2018 Joint Venture"), owned and operated a portfolio of 104 self storage properties containing approximately 7.9 million rentable square feet, configured in approximately 65,000 storage units and located across 17 states.
2016 Joint Venture
As of September 30, 2024, the Company's unconsolidated real estate venture, formed in September 2016 with a state pension fund advised by Heitman Capital Management LLC (the "2016 Joint Venture"), owned and operated a portfolio of 81 properties containing approximately 5.7 million rentable square feet, configured in approximately 47,000 storage units and located across 13 states.
The following table presents the combined condensed financial position of the Company's unconsolidated real estate ventures as of September 30, 2024 and December 31, 2023 (dollars in thousands):
September 30, 2024 December 31, 2023
ASSETS
Self storage properties $ 2,696,454  $ 2,200,522 
Less accumulated depreciation (424,994) (369,412)
Self storage properties, net 2,271,460  1,831,110 
Other assets 52,666  37,826 
Total assets $ 2,324,126  $ 1,868,936 
LIABILITIES AND EQUITY
Debt financing $ 1,212,881  $ 1,003,223 
Other liabilities 40,451  28,333 
Equity 1,070,794  837,380 
Total liabilities and equity $ 2,324,126  $ 1,868,936 

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The following tables present the combined condensed operating information of the Company's unconsolidated real estate ventures for the three and nine months ended September 30, 2024 and 2023 (dollars in thousands):
Three Months Ended September 30,
2024 2023
Total revenue $ 63,293  $ 53,989 
Property operating expenses (19,471) (15,084)
Supervisory, administrative and other expenses (4,150) (3,564)
Depreciation and amortization (21,671) (17,147)
Interest expense (13,650) (10,417)
Non-operating expenses (1,037) (123)
Net income $ 3,314  $ 7,654 
Nine Months Ended September 30,
2024 2023
Total revenue $ 180,105  $ 161,426 
Property operating expenses (56,523) (45,246)
Supervisory, administrative and other expenses (11,683) (10,654)
Depreciation and amortization (60,441) (52,290)
Interest expense (39,405) (31,247)
Non-operating expenses (192) (310)
Net income $ 11,861  $ 21,679 


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6. ACQUISITIONS AND DISPOSITIONS
Acquisitions
The Company acquired three self storage properties for $25.2 million during the nine months ended September 30, 2024. All of these acquisitions were acquired by the Company from third parties. The self storage property acquisitions were accounted for as asset acquisitions and accordingly, $0.1 million of transaction costs related to the acquisitions were capitalized as part of the basis of the acquired properties. The Company allocated the total purchase price to the estimated fair value of tangible and intangible assets acquired and liabilities assumed. The Company allocated a portion of the purchase price to identifiable intangible assets consisting of customer in-place leases which were recorded at an estimated value of $0.5 million, resulting in a total value of $24.7 million allocated to real estate.
The following table summarizes the investment in self storage property acquisitions completed by the Company during the nine months ended September 30, 2024 (dollars in thousands):
Acquisitions Closed During the Three Months Ended: Number of Properties Summary of Investment
Cash and Acquisition Costs Value of Equity Other Liabilities Total
March 31, 2024 $   $   $   $