UBS reduced its price target on National Storage Affiliates Trust (NYSE:NSA) to $29 from $30 on January 8. The bank kept a Neutral rating on the stock.
The adjustment was not based on a specific issue with the company, according to UBS. It formed part of the firm's broader view on real estate investment trusts heading into 2026.
UBS expects 2026 to be an important year for the REIT sector. The firm forecasts total returns of 9% to 11%, citing improving macroeconomic conditions, more attractive valuations, easing supply pressures, and a steadier political backdrop.
The year is expected to unfold in two phases. Investors are likely to adopt a more defensive stance in the first half of 2026, with stronger catalysts emerging in the second half. In that environment, UBS said it prefers Healthcare REITs, Shopping Centers, and Coastal Apartments.
National Storage Affiliates Trust has been active on growth initiatives. In November, the company announced a new joint venture with an affiliate of Investment Real Estate Management. IRE is one of NSA's former participating regional operators and manages self-storage properties under the "Moove In" brand.
The joint venture is expected to have approximately $350 million in buying power. Funding will come from partner equity contributions and debt raised at the joint venture level.
NSA plans to provide 75% of the equity capital, up to $105 million, in exchange for preferred equity. That investment carries a 10% preferred return per year, plus potential for additional upside. NSA expects to earn that upside when the joint venture exits its investments in future years.
The company expects the joint venture to deploy capital over the next 24 months. It will focus on value-add self-storage opportunities in markets with favorable population and demand trends.
Any properties acquired through the venture will be managed by IRE under the Moove In brand. This provides the partnership with an existing operating platform.
National Storage Affiliates Trust is a self-storage REIT based in Greenwood Village, Colorado. The company focuses on owning, operating, and acquiring storage properties, primarily located in large U.S. metro areas within the top 100 metropolitan statistical areas.
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