David Cramer, president and CEO of National Storage Affiliates Trust (NYSE: NSA), participated in a video interview during Nareit’s REITworld: 2023 Annual Conference held Nov. 14-16 in Los Angeles.
Cramer discussed current conditions in the self-storage sector. “We’re in an environment today where we’re still moderating from some really strong historical comps,” with demand lower than it was during the pandemic. Higher interest rates have also “muted the housing market and the transition around the country,” which has put some pressure on new customer demand. As a result, NSA is facing challenges around entry level pricing, he noted.
The existing customer base, however, is “very healthy, very stable,” with lengths of stays at all-time highs, Cramer pointed out.
Cramer said that although investors are asking questions about occupancy levels and street rates, the company’s five-year average NOI growth stands at 9%. “We’re settling back into more normal times, our markets are responding the way we think they should respond,” and investor confidence is likely to return once the current period, with its “tough comps,” cycles through, he said.
Meanwhile, NSA has been investing in “people, process, and platforms,” and working hard to bring new data sciences talent into the team to ensure the right revenue management practices are in place, Cramer said.