National Storage REIT (ASX: NSR) today announces its financial results for the half year ended 31 December 2022 with an A-IFRS profit after tax of $182.3 million (EPS 15.2 cps) and Underlying EPS1 of 6.0 cps).
Managing Director Mr. Andrew Catsoulis said, “NSR has delivered a strong 1H FY23 result in the face of significant economic headwinds impacting other sectors. We have focused on maximising REVPAM by carefully balancing rate and occupancy to achieve 4.7% REVPAM growth for the half.”
Underlying earnings for the period increased by 23% to $71.4 million, or 6.0 cps, up 22%. The significant increase in underlying earnings for the half year was primarily driven by the REVPAM growth of 16.1% from December 2021 and growth of 4.7% from June 2022.
“It is particularly pleasing to see the strong growth of our developing centres with occupancy of the developing centre portfolio up 6.5% for the half year,” said Mr. Catsoulis. “NSR’s NTA, which increased by 4% for the half, is a reflection of the high quality of its underlying property portfolio and the ongoing strong performance of the business.”
NSR continued to successfully execute its acquisition and development strategy with 21 acquisitions settled in 1H FY23 totalling $155 million. This included 13 new development sites providing an important future pipeline of development opportunities in key areas, which affords NSR clear visibility and control over its medium-term growth trajectory. NSR now has 46 active development projects with aggregate NLA pipeline of approximately 350,000m2.
NSR has upgraded FY23 underlying earnings per security to be a minimum of 11.5 cps, or minimum 8.5% growth (previous guidance of minimum pf 11.1cps or minimum 5% growth), subject to no material changes in market conditions or operating environment.