National Storage Affiliates (NSA) assigned 'BBB' senior debt rating by KBRA.
Kroll Bond Rating Agency (KBRA) announced today that it has assigned an issuer rating of 'BBB' to the operating subsidiary of Denver-based National Storage Affiliates Trust (NSA). The rating outlook is stable. KBRA has also assigned a 'BBB-' rating to NSA's outstanding 6.0% Series A cumulative preferred stock.
KBRA commented that NSA's credit profile benefits from low debt leverage (33%), solid market diversification across 499 properties in 27 states, and a large unencumbered asset pool representing approximately 80% of consolidated property NOI. The agency also noted that self-storage property revenues have historically shown "greater resilience to recessions" than other commercial property types. KBRA said its ratings also incorporate NSA's higher dividend payout ratio, shorter 3.8-year average debt tenor, and need to address longer-term succession plans for NSA's group of experienced regional operators.
National Storage Affiliates was formed through the contribution of a series of private regional portfolios and taken public in 2015. As of March 31, 2019, the company had a total market capitalization of approximately $4.6 billion.