11/19/2018 | By Nareit Staff
Arlen Nordhagen, chairman and CEO of National Storage Affiliates (NYSE: NSA), participated in a video interview at Nareit’s REITworld: 2018 Annual Conference in San Francisco.
Nordhagen said that NSA’s acquisition of the Brookfield Asset Management portfolio earlier this year increases the number of properties under iStorage, NSA’s internal management company.
“About a third of our properties will now be managed internally by the NSA management team,” Nordhagen said. This will give NSA the internal scale it needs to continue to add portfolio and platform tools, he added.
Shifting to fundamentals, Nordhagen said NSA is seeing a number of markets nationwide where supply is growing faster than demand, including Nashville, Tennessee, and Portland, Oregon.
“Obviously when we see supply growing faster than demand, occupancies are pressured, occupancies drop, [and this] puts pressure on rates. That makes it very difficult to grow same-store revenues,” he said.
Regarding same-store revenue trends for the rest of 2018 and into 2019, Nordhagen said: “We’ve publicly stated that our same-store revenues and expenses will grow toward the low end of our guidance range, which will mean that our NOI growth will be comfortably within the range.”