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.