In my first Seeking Alpha article, I wrote about the phenomenal growth of National Storage Affiliates (NYSE:NSA). The company continues to execute on their differentiated growth strategy and acquiring high quality storage faciliities.
Today, NSA shares are down approximately 5% in response to the company announcing a public equity offering which will dilute shares. Long term, raising additional equity is good for the company and will allow the company to continue growing. Near term, NSA shares are repricing to account for the added share count. On November 28th, I wrote an article with words of caution regarding share dilution.
National Storage Affiliates is an excellent REIT to own long term. Prior to the announcement, I had been cautioning investors to avoid buying NSA shares above $20.75. At this time, I would like reiterate that recommendation.
NSA shares may continue to see downward pressure during tomorrow's Fed meeting. We all expect a rate increase. However, the hawkish or dovish remarks by the FOMC could impact REITs including NSA.
Disclosure: I am/we are long NSA.