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Dear Fellow Investor,
Take Advantage of the Summer Break with This High-Yield Storage REIT
As colleges across the U.S. close their doors for summer break, a seasonal trend emerges—millions of students vacating dorm rooms, apartments, and shared rentals. What follows is a surge in demand for temporary storage space, especially in college towns.
For income-focused investors, this annual migration presents a compelling opportunity—self-storage stocks, particularly those with high dividend yields.
Among the top options in the space, one stock stands out with a 6.73% dividend yield, consistent operational performance, and exposure to a fast-growing industry.
📦 Why Self-Storage Is a Seasonal but Stable Goldmine
Self-storage is one of the most underappreciated real estate segments. While it may not have the flash of tech or biotech, it thrives on one simple truth: people need space. And every summer, students, renters, and movers across the country help spike that demand.
The self-storage industry benefits from several recurring and resilient trends:
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College move-outs and move-ins
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Job relocations and life transitions
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Downsizing among retirees
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Growing urban populations with less personal space
It’s this steady demand that makes self-storage REITs like NSA so appealing. They generate reliable, recurring rental income with relatively low operating costs and limited capital expenditure requirements.
Even in tough economic times, people are unlikely to give up their storage units—and that’s exactly what income investors want: stability and predictability.
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📈 A Closer Look at National Storage Affiliates Trust (SYM: NSA)
Yield: 6.73%
Recent Dividend: $0.57 quarterly (paid March 31)
Market Presence: 1,074 facilities across 42 states and Puerto Rico
Rentable Space: ~70.2 million square feet (as of Dec 31, 2024)
NSA is a real estate investment trust (REIT) that owns, operates, and acquires self-storage facilities throughout the U.S. It’s one of the most geographically diverse players in the market, giving it exposure to multiple high-demand regions.
As of the end of 2024, NSA had ownership interests in over 1,070 self-storage properties. These facilities span across 42 states and Puerto Rico, totaling roughly 70.2 million rentable square feet. That broad footprint not only reduces geographic risk, but it also allows the company to capture peak seasonal demand in college-heavy markets and urban centers alike.
💸 A Reliable Dividend Payer with Room to Grow
NSA’s current dividend yield of 6.73% is well above the average for REITs and the broader S&P 500. It paid a quarterly dividend of $0.57 on March 31, continuing its streak of steady distributions.
What makes NSA’s dividend particularly appealing is the sustainability of its cash flows. In its most recent quarter, the company posted:
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Funds From Operations (FFO): $0.60, beating estimates by $0.02
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Revenue: $190.12 million, beating expectations by over $3 million, despite being down 11.7% year-over-year
FFO is the most closely watched metric for REITs, as it strips out non-cash items and gives a clear view of earnings generated from core operations. NSA's beat on both top and bottom lines signals that management continues to deliver—even in a softer macro environment.
CEO David Cramer recently noted:
“While there is uncertainty in the macro environment for 2025, we have no near-term debt maturities, and we remain focused on executing operationally and realizing the expected accretion that we’ve previously highlighted from the internalization of our PRO structure.”
In other words, NSA is well-positioned for stability, with no significant debt deadlines looming. That’s important in a high-rate environment, where interest costs can eat into profits for leveraged firms.
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🌎 A Booming Industry with Long-Term Tailwinds
The self-storage industry is on a growth trajectory. According to Forge Building Company, the global self-storage market is expected to grow at a compound annual growth rate (CAGR) of 7.53% between 2022 and 2027. That would take it from about $54 billion in 2021 to over $83.6 billion by 2027.
Supporting this bullish outlook:
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Record-high occupancy rates
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Continued rent increases across major markets
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Expansion of suburban and urban storage demand
In fact, Storable reports that around 10.6% of U.S. households rent a storage unit—a figure that’s projected to rise. With minimal tenant turnover and consistent rent collection, storage REITs like NSA are in a prime position to ride this wave.
Moreover, NSA’s acquisition strategy allows it to grow without needing to build from scratch. It can purchase existing facilities, integrate them into its network, and immediately begin generating income.
🔑 Why NSA Makes Sense Right Now
With its high dividend, solid balance sheet, and favorable market positioning, National Storage Affiliates Trust checks all the right boxes for income-focused investors:
✅ High, reliable yield (6.7%)
✅ Strong industry growth forecast
✅ Consistent operational results
✅ Geographic diversification
✅ Positive seasonal tailwinds (especially in summer)
As the college summer exodus continues, demand for storage units will likely spike—boosting short-term occupancy rates and revenue for NSA. Longer-term, the secular growth in storage usage across the U.S. and abroad provides a durable catalyst.
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Are there any other seasonal summer stocks you're currently buying? What specific sectors of the market do you think are the best places to put your money to work right now? Hit "reply" to this email and let us know your thoughts!
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