National Storage Affiliates Trust (NSA) 8-KEntry into a Material Definitive Agreement

On June 3, 2024, National Storage Affiliates Trust (the “General Partner” or “NSA”) announced an agreement in principle for the internalization of its participating regional operator (“PRO”) structure. On May 30, 2024, as part of the implementation of this internalization, NSA, in its capacity as the general partner of NSA OP, LP, a Delaware limited partnership (the “Operating Partnership”), and the limited partners of the Operating Partnership entered into that certain Fourth Amended and Restated Limited Partnership Agreement (the “Fourth Amended and Restated LPA”), which amends and restates the existing Third Amended and Restated Limited Partnership Agreement of the Operating Partnership, dated as of April 28, 2015, as amended. The Fourth Amended and Restated LPA will be effective as of July 1, 2024 (the “Effective Date”). As of the Effective Date, it is expected that all 12,101,055 outstanding subordinated performance units in our Operating Partnership and the Operating Partnership’s DownREIT subsidiaries (the “DownREIT Partnerships”), will be converted into an aggregate of 18,219,589 Class A common units of limited partner interest of the Operating Partnership (“Class A OP Units”) or units in the DownREIT Partnerships that are intended to be economically equivalent to the Class A OP Units, generally consistent with the formula set forth in the partnership unit designation (the “Partnership Unit Designation”) for each series of subordinated performance units.

Consistent with the transition from the current PRO structure, the Fourth Amended and Restated LPA, among other minor changes, removes all references to the General Partner’s PRO structure, including, but not limited to removing all references to: (i) each PRO and its key persons; (ii) each series of subordinated performance units; (iii) the payment of distributions on the subordinated performance units; and (iv) all PRO-related provisions.

NSA is negotiating with each PRO to acquire certain of their assets, including each PRO’s asset management and property management contracts, certain intellectual property and brands, and certain rights with respect to each PRO’s tenant insurance program, pursuant to which additional consideration will be issued in exchange for the acquisition of the above-mentioned assets and rights, which may include cash, additional Class A OP Units, and the termination of each PRO’s non-compete, non-solicitation and captive pipeline obligations. As a result of these transactions, it is expected that NSA will no longer pay any supervisory and administrative fees or reimbursements to the PROs. NSA plans to transition operations in a phased approach, which is expected to occur over the 12 month period following the Effective Date, and NSA anticipates it will execute new asset management and property management agreements with a number of the PROs for all or a part of this transitionary period at a newly negotiated management fee.

The description of the Fourth Amended and Restated LPA contained herein is qualified in its entirety by reference to the full text of the Fourth Amended and Restated LPA, which is filed as Exhibit 10.1 to this Current Report on Form 8-K and is incorporated herein by reference.