NATIONAL STORAGE REIT — Earnings Release 2016

Aug 22, 2016

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NATIONAL STORAGE REIT (NSR) ASX ANNOUNCEMENT

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23 AUGUST 2016

NSR FY16 RESULTS

National Storage REIT (NSR) today announced its financial results for the year ended 30 June 2016 with an A-IFRS profit after tax of $44.0 million.

KEY HIGHLIGHTS

• A-IFRS profit after tax of $44.0 million

• FY16 underlying earnings[1] of $29.2 million up 20% on FY15 ($24.3 million)

• EPS 8.7 cps in line with guidance, up 6.1% on FY15 (8.2 cps)

• Final distribution of 4.4 cps bringing total FY16 distribution to 8.7 cps

• 30% increase in total assets under management to $959 million (FY15: $740 million)

• Transacted 23 acquisitions totaling $145 million

• Raised $260 million to fund the pending acquisition of the strategically important Southern Cross storage portfolio and strengthen the balance sheet

• Affirm FY17 underlying earnings guidance of $45.5 - $46.5 million (9.2 – 9.4 cps)

FINANCIAL RESULTS

Managing Director Mr Andrew Catsoulis said “NSR has delivered a positive FY16 result in line with guidance, reflecting the successful execution of our growth strategy and our proactive approach to asset management.”

“FY16 has been a transformational year for NSR, with the acquisition of 23 centres plus the pending acquisition of the 26 centre Southern Cross storage portfolio cementing our position as Australasia’s largest storage owner-operator and almost doubling centres under ownership” he said.

Total revenue for the period increased by 25% to $79.8 million (2015: $63.7 million) reflecting the integration of acquisitions and organic portfolio growth.

A-IFRS profit after tax of $44.0 million (FY15: $48.7 million) reflects lower portfolio revaluation uplift in line with the movement in capitalisation rates.

NSR confirms the final distribution of 4.4 cps (totaling 8.7 cps for FY16) previously declared on 23 June 2016 and confirms the payment date of 29 August 2016.

OPERATING RESULTS

“We continue our balanced approach to increasing occupancy and rate per square metre with an overall focus on revenue growth which has delivered improved metrics across the portfolio. Total portfolio (excluding NZ and developing centres) occupancy grew by 3% to 75% with now

1 * A-IFRS profit after tax adjusted for tax benefit (-$0.25 million), fair value adjustments (-$10.02 million) and net loss from fair value adjustments of leasehold investment properties (-$4.55 million)

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NATIONAL STORAGE REIT (NSR) National Storage Holdings Limited (ACN 166 572 845)

National Storage Financial Services Limited (ACN 600 787 246 AFSL 475 228) as responsible entity for National Storage Property Trust (ARSN 101 227 712)

more than one third of centres holding occupancy in excess of 80%. We have maintained our strong rate per square metre across the portfolio, with rate per square metre of $285 across the total portfolio. We remain committed to driving organic growth into FY17 with a program of staff training, revenue management technologies and operational improvements across our management platform” said Mr Catsoulis.

OUTLOOK

NSR affirms FY17 underlying earnings guidance of $45.5 million to $46.5 million (9.2 – 9.4 cps) delivering EPS growth of 5.8% – 8.0% on FY16, assuming no material changes in market conditions.

“The potential acquisition pipeline across Australia and New Zealand remains strong and we will look to continue to execute high quality, accretive acquisition opportunities” Mr Catsoulis said.

“I am grateful for the support of our stakeholders throughout FY16 and we remain committed to delivering organic and portfolio growth into FY17 to maximise returns for our securityholders” said Mr Catsoulis.

ENDS

National Storage is one of the largest self-storage providers in Australia and New Zealand, with 105 centres providing tailored storage solutions to over 35,000 residential and commercial customers across Australia and New Zealand. NSR is the first independent, internally managed and fully integrated owner and operator of self-storage centres to be listed on the Australian Securities Exchange (ASX).

For further information:

Andrew Catsoulis Managing Director 07 3218 8100

Makala Ffrench Castelli General Manager - Marketing & Corporate 07 3218 8116 | 0481 001 330

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NATIONAL STORAGE REIT (NSR) National Storage Holdings Limited (ACN 166 572 845) National Storage Financial Services Limited (ACN 600 787 246 AFSL 475 228) as responsible entity for National Storage Property Trust (ARSN 101 227 712)