The ASX dividend stock National Storage REIT (ASX: NSR) has fallen 13% from the peak in 2022, as the chart below shows. I believe this is an ideal time to look at the business for a few different reasons.
National Storage describes itself as the largest self-storage provider in Australia and New Zealand, with more than 275 centres providing tailored storage solutions to approximately 94,500 residential and commercial customers. The business is internally managed.
The appeal of this business is not just that the unit price of the real estate investment trust (REIT) has fallen in recent times. Let's get into why it's appealing.
Solid dividend yield
One of the main things I want to see from a business I'm calling an ASX dividend share is a good dividend yield.
Using the payout from FY25 of 11.1 cents per security, the business currently has a trailing distribution yield of 4.7%, which I'd describe as good passive income compared to what term deposits are offering these days.
This payout was lifted by 0.1 cents per security following a 5.3% rise in the underlying earnings per security (EPS) in FY25 to 11.9 cents. That means the payout was comfortably covered by the underlying EPS.
Good rental profit growth
There are a couple of key drivers of the ASX dividend stock's financials. Revenue per available metre (REVPAM) shows investors how much its storage centres are earning.
According to its FY25 result, the business reported 1% growth of REVPAM to $277.3 per square metre. It's a positive sign that REVPAM continues to grow, as that should drive operating profits higher.
The business is also benefiting from occasional acquisitions and developments. In FY25, it reported that 28 acquisitions, totalling $303 million, were settled during the period, while it also completed 14 developments, adding 98,000 square metres of net lettable area (NLA).
National Storage centres are benefiting from the limited space in urban spaces. The business also reported FY25 occupancy showed signs of progress in the three months to June 2025, with a 0.8% increase, or 3.2% annualised.
Rising occupancy and increasing REVPAM is exactly what I want to see.
The business is expecting to grow its underlying earnings per security by at least 4.2% to 12.4 cents in FY26.
RBA rate cuts
Recent RBA cash rate cuts (and potential future ones) could have a significant positive for the business.
It could increase the underlying value of the properties, it could help close the 10% valuation gap between the National Storage unit price and the reported net tangible assets (NTA) at 30 June 2025, and it could mean lower interest costs leading to higher profitability and distributions. This could be a strong tailwind for the business.
I think this is a very good time to consider the ASX dividend stock, particularly if the RBA decides to cut rates again within the next year.
