National Storage Reit · ASX:NSR
National Storage Reit — FY2024 Earnings Presentation
38 slides from National Storage Reit's earnings presentation, Aug 21, 2024
Slide 1: FY24 Results
FY24 RESULTS For the financial year ended 30 June 2024 1
Slide 2: Centre photos
Wynnum, QLD Neerabup, WA Springfield, QLD Maidstone, VIC Coburg, VIC Loganholme, QLD 2 Caroline Springs, VIC Queenstown, NZ Port Kennedy, WA
Slide 3: Agenda
AGENDA PAGE SECTION 04 KEY HIGHLIGHTS AND FINANCIAL RESULTS 12 STRATEGY 20 SUSTAINABILITY 27 OUTLOOK 30 APPENDICES 36 GLOSSARY 37 DISCLAIMER 3
Slide 4: Key Highlights and Financial Results
KEY HIGHLIGHTS AND FINANCIAL RESULTS 4
Slide 5: FY24 Highlights
FY24 HIGHLIGHTS IFRS profit $230.3 million (EPS 16.9 cents) | Underlying EPS 11.3 cents WEIGHTED UNDERLYING UNDERLYING NET TANGIBLE AVERAGE PRIMARY TOTAL ASSETS (2) EARNINGS (1) EPS (1) ASSETS CAP RATE $154.2m 11.3 cents $5.1b $2.52 5.91% (Up 8.7%) (Down 1.7%) (Up 13.3%) (Up 1.6%) (Steady) GROUP (3)
Slide 6: Key Operational Metrics
KEY OPERATIONAL METRICS Strategy delivering REVPAM growth Group REVPAM $275/m2 (up 3.1%) ▪ Disciplined optimisation of rate and occupancy ▪ Positive momentum – H2 FY24 REVPAM growth 2.5% Group REVPAM, Occupancy & Rate Trends Group Rate $339/m2 (up 7.1%) ▪ Revenue management system delivering rate gr
Slide 7: Portfolio Snapshot
PORTFOLIO SNAPSHOT Embedded growth potential from existing built NLA GROWTH TOTAL(3) FY24 GROUP(4) Completed All Operating Operating Assets Acquisitions(1) Let-Up(2) Developments Centres & Expansions Assets 206 16 14 16 252 NLA – Total (m2) 1,100,800 76,700 111,500 101,800 1,390,800 NLA - Average Ce
Slide 8: Exceptional Profile of Growth and Returns
EXCEPTIONAL PROFILE OF GROWTH AND RETURNS Track record of strong growth and securityholder returns since IPO Total Revenue $355.4 Total Securityholder Return 311%(1) $350 $330.0 $300 $278.9 Underlying earnings growth outpacing revenue, reflecting scale benefits $250 $217.7 $200 $177.9 Total Assets o
Slide 9: Profit and Loss for the Year Ended 30 June 2024
PROFIT AND LOSS FOR THE YEAR ENDED 30 JUNE 2024 $ Million FY24 FY23 % Change Strategy delivering superior growth Storage revenue 323.7 302.5 7% Sales of goods and services 14.5 14.0 4% Other revenue 10.8 10.6 2% Total Revenue 349.0 327.1 7% Cost of goods sold 5.3 5.8 -9% ▪ Growth in underlying earni
Slide 10: Balance Sheet as at 30 June 2024
BALANCE SHEET AS AT 30 JUNE 2024 Capacity to fund further growth ▪ NTA increased by 4 cents (2%) to $2.52 per $ Million Jun 24 Jun 23 Movement stapled security (June 2023: $2.48) Cash 55.2 67.3 (12.1) Investment Properties 1 4,881.8 4,287.7 594.1 ▪ Value of Investment Properties increased by 14% to
Slide 11: Capital Management
CAPITAL MANAGEMENT Investment grade balance sheet Debt Maturity Profile(2) ▪ Robust credit metrics - Gearing 26.6% and ICR 3.2x $ 500m ▪ Pro forma gearing post settlement of Ventures Fund of 24.9% $ 400m ▪ Debt facilities increased to $1.84bn with $450m of FY25 maturities extended and $442m undrawn
Slide 12: Strategy
STRATEGY 12
Slide 13: NSR Vision & Mission
NSR VISION & MISSION Our Vision - To be a world leader in the Our Mission - United as one team, we provision of innovative and sustainable commit to consistently and responsibly self-storage solutions deliver on our four pillars of strategic growth ORGANIC ACQUISITIONS, TECHNOLOGY GROWTH DEVELOPMENT
Slide 14: Organic Growth
ORGANIC GROWTH NLA expansion, embedded growth capacity Total Built NLA 1,391,800m2 (Up 8.8%)(1) Growth Potential From Existing Built NLA Further 382,000m2 under development 1,600,000 75% GROWTH ASSETS 71% 71% 1,400,000 69% FY24 Completed 68% 68% 70% 1,200,000 67% 67% Developments 66% 66% 7% 1,000,00
Slide 15: Acquisitions & Developments
ACQUISITIONS & DEVELOPMENTS Expanded capabilities to deliver strategy DELIVERY ON GROWTH STRATEGY ▪ Strong growth trajectory from centre acquisitions, developments and expansions ▪ Track record of delivery on target returns BEST IN CLASS DEVELOPMENTS ▪ Delivering world class storage centre developme
Slide 16: Development & Expansion Pipeline
DEVELOPMENT & EXPANSION PIPELINE More than 145,000m2 of additional NLA under construction 11 projects completed in FY24, adding 73,500m2 of NLA 10 new development sites acquired to support ongoing development and growth 28 projects comprising more than 220,000m2 of additional NLA either under constr
Slide 17: Growth of the Development & Expansion Pipeline
POTENTIAL ALTERNATIVE GROWTH OF THE DEVELOPMENT & EXPANSION PIPELINE Significant opportunity in the self-storage market to capitalise on the need for additional supply Growth of pipeline and projects delivered 500,000 Development pipeline increased by 400% in last 5 years 400,000 ▪ Improved delivery
Slide 18: Acquisitions
ACQUISITIONS NSR is the leading self storage consolidator in Australasia Centre Portfolio Growth (1)(2) 6,000 38 41 54 68 102 117 141 161 181 191 201 220 29 Acquisitions settled in FY24 for $250m - - - 8 11 13 22 23 25 31 33 34 5,000 Including 12 new operating storage centres, 576 5 freehold purchas
Slide 19: Self-Storage Ventures Fund
SELF-STORAGE VENTURES FUND Partnership with GIC to pursue the development and operation of self-storage centres in Australia in a capital efficient manner PARTNERSHIP WITH GIC ▪ NSR owns 25% and GIC 75% ▪ Initial term of not less than 5 years 10 FOUNDATION ASSETS ▪ Sourced from NSR’s development por
Slide 20: Sustainability
SUSTAINABILITY 20
Slide 21: Sustainability Framework
SUSTAINABILITY FRAMEWORK FOUR PILLARS APPROACH TO SUSTAINABILITY STRATEGY ENVIRONMENT PEOPLE GOVERNANCE ▪ Sustainability is a core ▪ Environmentally ▪ Talent attraction ▪ Trust & transparency pillar of NSR’s strategy efficient operations and retention ▪ Responding to ▪ Economic ▪ Sustainable ▪ Emplo
Slide 22: Strategy and Governance
STRATEGY AND GOVERNANCE Instilling trust and confidence that we are building a Customer & resilient and sustainable business for our stakeholders employee experience Economic Environmentally performance ▪ Sustainability is a core pillar of the Group’s strategy efficient operations ▪ Incorporating su
Slide 23: Environment
ENVIRONMENT NSR is committed to reducing and offsetting its scope 1 and 2 emissions by 2030 SOLAR LED LIGHTING SMART METERS BATTERY STORAGE ▪ 136 centres (54%) ▪ Programme roll-out ▪ Roll out of smart ▪ Feasibility, scope, with installations continues meters continues risk profiling and established
Slide 24: People
PEOPLE Fostering wellbeing and professional growth, enhancing the employment experience, and playing an active role in the community VALUE PROPOSITION WELLBEING COMMUNITY ▪ Leadership capability ▪ Benefits for ▪ Longstanding and collaboration, employees and commitment to creating performance familie
Slide 25: Customer Experience
SOUPSETRAAI N T IA OBNI LAI TLYUUPPDDAAT ET E CUSTOMER EXPERIENCE Continued targeted investment delivering best-in-class customer experience Digital Wayfinder ▪ New centres built with NOKE Bluetooth access for ease of access and egress ▪ Customers obtain a personalised Wayfinder link, providing indi
Slide 26: Innovation & Automation
INNOVATION & AUTOMATION Targeted AI Solutions CUSTOMER CUSTOMER CUSTOMER SOFTWARE SECURITY ANALYTICS INTERACTION ENGAGEMENT SEGMENTATION DEVELOPMENT ▪ AI-led customer ▪ Enhanced ▪ Intelligent ▪ Use of machine ▪ AI-enabled ▪ AI-assisted interaction customer security learning analytics: software quali
Slide 27: Outlook
OUTLOOK 27
Slide 28: FY25 Guidance & Outlook
F Y 2 5 G U I D A N C E & O U T L O O K (1 ) Underlying EPS minimum 11.8cps EPS Bridge (cps): FY24 to FY25 FY25 Guidance1 FY24 & FY25 Completed Developments UNDERLYING EPS Minimum 11.8 CPS UNDERLYING Greater than $163m EARNINGS DISTRIBUTION 90% - 100% payout of GUIDANCE Underlying Earnings 1 - NSR p
Slide 29: Thank You
THANK YOU invest@nationalstorage.com.au nationalstorage.com.au 29
Slide 30: Appendices
APPENDICES 30
Slide 31: Portfolio Overview
PORTFOLIO OVERVIEW Australiasia’s largest owner / operator of self-storage Australasian market leader Presence in every State and Territory Market share(1) NSR 17% Kennards Australia and 10% New Zealand Market Share by NLA (m2) Abacus Other Storage King2 64% 9% 1. Sources: Company filings, Self Stor
Slide 32: Case Study – Wynnum, QLD
CASE STUDY – WYNNUM, QLD Flagship Development ▪ 7,200 m2 storage NLA ▪ Modern 4-storey development in target strategic location Fully Featured ▪ 663 units across four levels ▪ Bluetooth Smart Access (NOKE) ▪ 24/7 access ▪ 30kW Solar Performance Update ▪ ~35% occupied after 8 months ▪ Revenue ahead o
Slide 33: Case Study – Coburg, VIC
CASE STUDY – COBURG, VIC First Custom-built Centre to incorporate Wine Ark Storage ▪ 4,800m2 of self storage NLA and ▪ 3,900m2 of Wine Storage NLA for both managed wine and wine storage units ▪ Opened April 2024 Fully Featured ▪ 576 units ▪ Bluetooth Smart Access (NOKE) ▪ 24/7 access ▪ 30kW solar Up
Slide 34: Board of Directors & Executive
BOARD OF DIRECTORS & EXECUTIVE Anthony Keane Howard Brenchley Inma Beaumont Scott Smith Independent Non-Executive Independent Non-Executive Independent Non-Executive Independent Non-Executive Chairman, Chairman of the Director, Chairman of Audit and Director and member of the Director, Chairman of t
Slide 35: Portfolio Metrics
PORTFOLIO METRICS FY23 slide 30 JUNE 2023 30 JUNE 2024 AUST NZ MGMT TOTAL AUST NZ MGMT TOTAL FREEHOLD CENTRES 188 33 1 222 208 34 1 243 LEASEHOLD CENTRES 12 - - 12 11 - - 11 TOTAL CENTRES 200 33 1 234 219 34 1 254 FREEHOLD NLA (sqm) 1,022,300 182,200 14,400 1,218,900 1,131,900 187,100 15,000 1,334,0
Slide 36: Glossary
SOUPSETRAAI N T IA OBNI LAI TLYUUPPDDAAT ET E GLOSSARY Key terms referred to in this presentation TERM DEFINITION TERM DEFINITION ASX Australian Securities Exchange CENTRES ACQUISITION 16 centres as at 30 June 2024, comprised CAGR Compound annual growth rate CENTRES of all self storage centre acquis
Slide 37: Disclaimer
DISCLAIMER This presentation has been prepared by National direct or indirect loss or damage which may be These forward-looking statements are not or any change in the events, conditions or Storage REIT “NSR” comprising National Storage suffered through the use, or reliance on, anything guarantees o
Slide 38: Notes
NOTES 38