David Cramer, president and CEO of National Storage Affiliates Trust (NYSE: NSA), sat down for a video interview at Nareit's REITweek: 2024 Investor Conference, held in New York June 3-6.
NSA recently announced the internalization of the REIT’s PRO (Participating Regional Operator) structure, marking a significant strategic shift for the company. Founded with PROs integral to its operations, NSA has thrived over the past decade. However, recognizing evolving market dynamics and the need for streamlined operations, NSA decided that now is the opportune moment to internalize these operators.
Cramer emphasized that internalization aligns NSA more closely with operational efficiencies, customer acquisition strategies, and data utilization, streamlining their approach across all facets of business. He noted, "Internalizing these PROs positions us for robust future growth and operational alignment, ensuring we can adapt swiftly to market changes."
Cramer highlighted current market conditions such as rising interest rates and challenges in external growth strategies, which influenced the move towards internalization. Despite a challenging macro environment with a muted housing market impacting customer transitions, NSA remains optimistic about the future, leveraging their solid existing customer base and adapting pricing strategies to maintain rental activity.