Category Archives: NSA

Recent news articles have all been talking about the massive Russian cyber-attack against the United States, but thats wrong on two accounts. It wasnt a cyber-attack in international relations terms, it was espionage. And the victim wasnt just the US, it was the entire world. But it was massive, and it is dangerous.

Espionage is internationally allowed in peacetime. The problem is that both espionage and cyber-attacks require the same computer and network intrusions, and the difference is only a few keystrokes. And since this Russian operation isnt at all targeted, the entire world is at risk and not just from Russia. Many countries carry out these sorts of operations, none more extensively than the US. The solution is to prioritize security and defense over espionage and attack.

Heres what we know: Orion is a network management product from a company named SolarWinds, with over 300,000 customers worldwide. Sometime before March, hackers working for the Russian SVR previously known as the KGB hacked into SolarWinds and slipped a backdoor into an Orion software update. (We dont know how, but last year the companys update server was protected by the password solarwinds123 something that speaks to a lack of security culture.) Users who downloaded and installed that corrupted update between March and June unwittingly gave SVR hackers access to their networks.

This is called a supply-chain attack, because it targets a supplier to an organization rather than an organization itself and can affect all of a suppliers customers. Its an increasingly common way to attack networks. Other examples of this sort of attack include fake apps in the Google Play store, and hacked replacement screens for your smartphone.

SolarWinds has removed its customers list from its website, but the Internet Archive saved it: all five branches of the US military, the state department, the White House, the NSA, 425 of the Fortune 500 companies, all five of the top five accounting firms, and hundreds of universities and colleges. In an SEC filing, SolarWinds said that it believes fewer than 18,000 of those customers installed this malicious update, another way of saying that more than 17,000 did.

Thats a lot of vulnerable networks, and its inconceivable that the SVR penetrated them all. Instead, it chose carefully from its cornucopia of targets. Microsofts analysis identified 40 customers who were infiltrated using this vulnerability. The great majority of those were in the US, but networks in Canada, Mexico, Belgium, Spain, the UK, Israel and the UAE were also targeted. This list includes governments, government contractors, IT companies, thinktanks, and NGOs and it will certainly grow.

Once inside a network, SVR hackers followed a standard playbook: establish persistent access that will remain even if the initial vulnerability is fixed; move laterally around the network by compromising additional systems and accounts; and then exfiltrate data. Not being a SolarWinds customer is no guarantee of security; this SVR operation used other initial infection vectors and techniques as well. These are sophisticated and patient hackers, and were only just learning some of the techniques involved here.

Recovering from this attack isnt easy. Because any SVR hackers would establish persistent access, the only way to ensure that your network isnt compromised is to burn it to the ground and rebuild it, similar to reinstalling your computers operating system to recover from a bad hack. This is how a lot of sysadmins are going to spend their Christmas holiday, and even then they cant be sure. There are many ways to establish persistent access that survive rebuilding individual computers and networks. We know, for example, of an NSA exploit that remains on a hard drive even after it is reformatted. Code for that exploit was part of the Equation Group tools that the Shadow Brokers again believed to be Russia stole from the NSA and published in 2016. The SVR probably has the same kinds of tools.

Even without that caveat, many network administrators wont go through the long, painful, and potentially expensive rebuilding process. Theyll just hope for the best.

Its hard to overstate how bad this is. We are still learning about US government organizations breached: the state department, the treasury department, homeland security, the Los Alamos and Sandia National Laboratories (where nuclear weapons are developed), the National Nuclear Security Administration, the National Institutes of Health, and many more. At this point, theres no indication that any classified networks were penetrated, although that could change easily. It will take years to learn which networks the SVR has penetrated, and where it still has access. Much of that will probably be classified, which means that we, the public, will never know.

And now that the Orion vulnerability is public, other governments and cybercriminals will use it to penetrate vulnerable networks. I can guarantee you that the NSA is using the SVRs hack to infiltrate other networks; why would they not? (Do any Russian organizations use Orion? Probably.)

While this is a security failure of enormous proportions, it is not, as Senator Richard Durban said, virtually a declaration of war by Russia on the United States While President-elect Biden said he will make this a top priority, its unlikely that he will do much to retaliate.

The reason is that, by international norms, Russia did nothing wrong. This is the normal state of affairs. Countries spy on each other all the time. There are no rules or even norms, and its basically buyer beware. The US regularly fails to retaliate against espionage operations such as Chinas hack of the Office of Personal Management (OPM) and previous Russian hacks because we do it, too. Speaking of the OPM hack, the then director of national intelligence, James Clapper, said: You have to kind of salute the Chinese for what they did. If we had the opportunity to do that, I dont think wed hesitate for a minute.

We dont, and Im sure NSA employees are grudgingly impressed with the SVR. The US has by far the most extensive and aggressive intelligence operation in the world. The NSAs budget is the largest of any intelligence agency. It aggressively leverages the USs position controlling most of the internet backbone and most of the major internet companies. Edward Snowden disclosed many targets of its efforts around 2014, which then included 193 countries, the World Bank, the IMF and the International Atomic Energy Agency. We are undoubtedly running an offensive operation on the scale of this SVR operation right now, and itll probably never be made public. In 2016, President Obama boasted that we have more capacity than anybody both offensively and defensively.

He may have been too optimistic about our defensive capability. The US prioritizes and spends many times more on offense than on defensive cybersecurity. In recent years, the NSA has adopted a strategy of persistent engagement, sometimes called defending forward. The idea is that instead of passively waiting for the enemy to attack our networks and infrastructure, we go on the offensive and disrupt attacks before they get to us. This strategy was credited with foiling a plot by the Russian Internet Research Agency to disrupt the 2018 elections.

But if persistent engagement is so effective, how could it have missed this massive SVR operation? It seems that pretty much the entire US government was unknowingly sending information back to Moscow. If we had been watching everything the Russians were doing, we would have seen some evidence of this. The Russians success under the watchful eye of the NSA and US Cyber Command shows that this is a failed approach.

And how did US defensive capability miss this? The only reason we know about this breach is because, earlier this month, the security company FireEye discovered that it had been hacked. During its own audit of its network, it uncovered the Orion vulnerability and alerted the US government. Why dont organizations like the departments of state, treasury and homeland security regularly conduct that level of audit on their own systems? The governments intrusion detection system, Einstein 3, failed here because it doesnt detect new sophisticated attacks a deficiency pointed out in 2018 but never fixed. We shouldnt have to rely on a private cybersecurity company to alert us of a major nation-state attack.

If anything, the USs prioritization of offense over defense makes us less safe. In the interests of surveillance, the NSA has pushed for an insecure cellphone encryption standard and a backdoor in random number generators (important for secure encryption). The DoJ has never relented in its insistence that the worlds popular encryption systems be made insecure through back doors another hot point where attack and defense are in conflict. In other words, we allow for insecure standards and systems, because we can use them to spy on others.

We need to adopt a defense-dominant strategy. As computers and the internet become increasingly essential to society, cyber-attacks are likely to be the precursor to actual war. We are simply too vulnerable when we prioritize offense, even if we have to give up the advantage of using those insecurities to spy on others.

Our vulnerability is magnified as eavesdropping may bleed into a direct attack. The SVRs access allows them not only to eavesdrop, but also to modify data, degrade network performance, or erase entire networks. The first might be normal spying, but the second certainly could be considered an act of war. Russia is almost certainly laying the groundwork for future attack.

This preparation would not be unprecedented. Theres a lot of attack going on in the world. In 2010, the US and Israel attacked the Iranian nuclear program. In 2012, Iran attacked the Saudi national oil company. North Korea attacked Sony in 2014. Russia attacked the Ukrainian power grid in 2015 and 2016. Russia is hacking the US power grid, and the US is hacking Russias power grid just in case the capability is needed someday. All of these attacks began as a spying operation. Security vulnerabilities have real-world consequences.

Were not going to be able to secure our networks and systems in this no-rules, free-for-all every-network-for-itself world. The US needs to willingly give up part of its offensive advantage in cyberspace in exchange for a vastly more secure global cyberspace. We need to invest in securing the worlds supply chains from this type of attack, and to press for international norms and agreements prioritizing cybersecurity, like the 2018 Paris Call for Trust and Security in Cyberspace or the Global Commission on the Stability of Cyberspace. Hardening widely used software like Orion (or the core internet protocols) helps everyone. We need to dampen this offensive arms race rather than exacerbate it, and work towards cyber peace. Otherwise, hypocritically criticizing the Russians for doing the same thing we do every day wont help create the safer world in which we all want to live.

The rest is here:
The US has suffered a massive cyberbreach. It's hard to overstate how bad it is - The Guardian

A second COVID vaccine has begun distribution. This ones made by Moderna, and STAT News has an informative side-by-side comparison with the Pfizer vaccine thats been going out for just over a week.

What they do, and dont do: Both vaccines seemed to reduce the risk of severe COVID disease. Its not yet known if either prevents asymptomatic infection with the SARS-CoV-2 virus. Nor is it known if vaccinated people can transmit the virus if they do become infected but dont show symptoms. Read on, here.

The coronavirus is mutating, as viruses do. A new faster-spreading variant has Britain locking down even harder, but scientists say it appears unlikely to change in ways that make the vaccines less effective.

The 7-day average of U.S. COVID deaths keeps setting records. Yesterday it hit 2,639, per the New York Times tracker one death every 33 seconds.

Help is on the way, President-elect Joe Biden said Sunday after lawmakers reportedly reached a deal on roughly $900 billion in coronavirus relief for Americans. The bill "provides an important downpayment on the investment we need in vaccine procurement and distribution," Biden said, but cautioned, "We need to scale up vaccine production and distribution and acquire tens of millions more doses."

Then what? "In our first 100 days, well be asking all Americans to mask up for 100 days," he continued. "Well have a plan to administer 100 million vaccine shots in 100 days and to get most schools open in the first 100 days. These are bold, but doable steps to contain the virus and get back to our lives."

The Biden White House also says it's planning a sort of public relations campaign for vaccines "to educate the American people in the efficacy and safety...so that we can all reap the benefits of their protection." More to that, here.

Trump Officials Deliver Plan to Split Up Cyber Command, NSA // Katie Bo Williams: An end to the dual hat arrangement has been debated for years but the timing raises questions. The plan requires Milley's certification to move ahead.

Space Force Troops Get a Name: Guardians // Marcus Weisgerber: VP Pence revealed the moniker for Trumps oft-teased newest military service branch to stand alongside soldiers, airmen, sailors, and Marines.

Defense One Radio, Ep. 83 // Defense One Staff : Interview with CENTCOMs Marine Gen. Frank McKenzie.

A Day of Deaths 25 Percent Higher Than Springs Worst / The COVID Tracking Project: For the second week in a row, more COVID-19 deaths were reported in the U.S. than at any other time in the pandemic.

How Were Building a 21st-Century Space Force // Gen. John W. Raymond is Chief of Space Operations, U.S. Space Force: Only by staying lean, agile, and tightly focused on our mission can we succeed in protecting the United States.

Pushing Billions in Arms Sales Is Not an Accomplishment // William D. Hartung: It matters to whom the weapons are flowing and how they will be used.

Welcome to this Monday edition of The D Brief from Ben Watson and Bradley Peniston. Send us tips from your community right here. And if youre not already subscribed to The D Brief, you can do that here. On this day in 1945, George Smith Patton Jr., passed away from pulmonary edema and congestive heart failure 13 days after an automobile accident in Germany paralyzed him from the neck down. He was 60 years old.

Trumps deference to Russia continues. Nearly a week after news broke about the large and historic cyber intrusion across multiple federal agencies, President Trump finally spoke up about it in a tweet on Saturday.The Cyber Hack is far greater in the Fake News Media than in actuality," Trump tweeted about the impact and damage, which has already entangled the State, Treasury, Energy, Homeland Security and Commerce Departments as well as the National Institutes of Health.A grave risk to the federal government is how DHSs Cybersecurity and Infrastructure Security Agency described it in a statement updated today.[I]t may be China, Trump tweeted Saturday, without even a suggestion of evidence. He went on to speculate again, without evidence that the cyber intrusions across the federal agencies might somehow be related to voting machines. Read the rest of that paranoid and virtually incomprehensible tweet, here.

Will feds selloff of 5G frequencies risk more airplane crashes? Maybe, say officials with the Federal Aviation Administration and the Department of Transportation, who are asking the Federal Communications Commission to halt the ongoing auction. And the Defense Department? Leaders, who are kinda just tuning in to this 5G wrinkle, are meeting today with counterparts at FAA and DOT to figure out the path forward, Defense News reports.

Lockheed Martin is acquiring rocket-maker Aerojet Rocketdyne Holdings for more than $4 billion, Lockheed announced Sunday. The two firms have been working together for some time already on several advanced systems across [LMTs] Aeronautics, Missiles and Fire Control and Space business areas, Lockheed said in its statement. More from Reuters, here.

The UAE and/or Saudi Arabia appear to be behind a cell phone hacking operation that spanned dozens of Middle Eastern journalists working for Qatar-based al-Jazeera, the Washington Post reports. That probable conclusion is from an alarming report by researchers with the Citizen Lab at the University of Torontos Munk School of Global Affairs and Public Policy.Apparently, victims didnt have to do anything to get hacked; and thats why researchers called the vulnerability a zero-click exploit.One big takeaway: All iOS device owners should immediately update to the latest version of the operating system. More here.

Russian opposition leader Alexey Navalny duped an FSB agent into confessing details of the poisoning operation that was supposed to kill him, CNN reports on the heels of their joint investigation into Russias attempts to kill Navalny.

Here are 15 ways the U.S. military says it will try to improve its racial diversity and inclusiveness, via a report commissioned in the wake of protests against police brutality this summer after the death of George Floyd:

The Secretary of the Air Force chaired the Board on Diversity and Inclusion, which also included the Senior Enlisted Advisor to the Chairman of the Joint Chiefs of Staff and the Under Secretary of Defense for Personnel and Readiness, and Service members from each branch of the Military Services and the National Guard Bureau. The group reviewed industry best practices, and assessed pertinent data and reports when writing up its 15 recommendations.After reviewing the Board' s 15 recommendations, Acting Defense Secretary Chris Miller wrote in a department memo released Friday evening by the Pentagon, I am pleased to see such a methodical evaluation leading to the development of such rigorous actions to address diversity and inclusion. I expect all leaders to take an aggressive approach to embed diversity and inclusion practices into the core of our military culture...We must not accept-and must intentionally and proactively remove any barriers to an inclusive and diverse force and equitable treatment of every Service member.The first phase of post-report actions are expected by March 31, according to Millers reaction plan to each of the 15 recommendations. And that will involve

And the Pentagon must begin working on how to reduce extremist or hate group activity by March 31, with a plan of action and milestones to be spelled out by the end of June. That falls to the Pentagon's Under Secretary of Defense for Personnel and Readiness and its Under Secretary for Intelligence and Security. For more on what lies ahead, see Acting SecDef Millers memo (PDF) in full, here.

And lastly today, Space Forcer troops got a collective name on Friday: guardians. As in soldiers, sailors, airmen, Marines, and guardians. Reports Defense Ones Marcus Weisgerber: The new name for militarys space professionals, announced on Friday by Vice President Mike Pence, may appear to be a play on the Marvel superhero film Guardians of the Galaxy. But Space Force officials said it was a callback to a 1983 motto.That didnt stop various Hollywood types associated with the movie from chipping in their two cents. Tweeted Clark Gregg, who plays S.H.I.E.L.D. agent Phil Coulson: My pet raccoon just got a draft notice. WTF.The new name was missing from the Chief of Space Operations oped published by The Atlantic on Sunday. Only by staying lean, agile, and tightly focused on our mission can we succeed in protecting the United States, wrote Gen. John W. Raymond. Read that, here.

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Today's D Brief: Vaccines, compared; NSA/CYBERCOM split?; More Trump deference to Russia; Welcome, 'guardians'; And a bit more. - Defense One

WASHINGTON Employees at one of the most secretive parts of government have been forced to return to their offices, leading to widespread concerns about their exposure to COVID-19.

Tensions inside the National Security Agency which is responsible for eavesdropping and digital espionage bubbled over last week, leading to an all-hands meeting at the agency on Wednesday to address complaints, according to four sources familiar with the matter.

This has been percolating for a while, said one former intelligence officer in touch with current employees. The general sentiment is that NSA has been mishandling things.

The meeting followed employees posting frequently on internal message boards about their frustrations over the pandemic and the agencys handling of it. Some of those frustrations have to do with confusion over unclear standards, such as how employees who have been exposed to a potential infection are allowed to use administrative leave in order to safely quarantine, while employees who get sick need to use sick leave to stay home.

The tensions at NSA reflect a larger division within government as it adapts to the pandemic. While many parts of the federal bureaucracy have allowed their employees to work from home indefinitely, those agencies working on classified issues have less flexibility, and the NSA deals with some of the most highly classified programs in government.

A spokesperson for the NSA referred all questions about intelligence community policy concerning COVID-19 to the Office of the Director of National Intelligence.

ODNI is monitoring the current uptick in COVID-19 positive rates in the Washington, D.C., Metropolitan Area and throughout the country, a spokesperson for the office wrote in an email. We have continued to adjust staff contact levels as previously noted through staggered shifts, flexible schedules and social distancing practices.

The NSA, like the other intelligence agencies, has returned to near full capacity working in the office, using shift work and other safety precautions.

Story continues

But some employees are frustrated with a lack of information from leadership on infection rates and whether or not the NSA was following CDC guidelines. There is too much rumor and anecdote, said one former senior intelligence officer, referring to the agencys communication with employees.

Other employees have put in for retirement, if they are eligible, partly due to the risks of the pandemic.

One national security official confirmed the tense environment and the fear over losing talent, but noted that missions are still largely getting done, and there isnt an imminent concern over gaps in intelligence gathering.

Coupled with internal frustrations over the recent appointment Michael Ellis, Trump loyalist and aide to Rep. Devin Nunes, to the position of general counsel, there are concerns over morale.

Over at the FBI, another agency deeply involved in classified intelligence work, employees are struggling with the fact that they are running low on administrative leave after many people used it in the spring. There have been some exposure scares that sent people home as well, which makes them feel vulnerable, said one former intelligence officer who mentioned that everyone from street agents to senior officials have been stressed out.

In late October, Yahoo News reported that other intelligence agencies, including the Defense Intelligence Agency and the Central Intelligence Agency, were going through similar challenges.

Unlike many government offices, intelligence work often needs to be done in special locations, like SCIFs (short for sensitive compartmented information facilities), which are protected from outside eavesdropping.

Some SCIFs can be mobile, and many of the highest-ranking officials have such facilities in their homes or nearby. A few agencies have even succeeded in allowing employees who deal with open source information to work from home more frequently, and there has been some protection provided by shift work and distancing in office buildings.

Yet allowing intelligence employees to work outside secure government offices poses legitimate concerns about the security of home offices for even routine communications among intelligence officers, some of whom may be undercover and hoping to avoid unwanted attention from foreign adversaries who might be keeping tabs.

However, there are also concerns that the intelligence agencies, tasked with staying on top of the latest threats, were not prepared to execute strategies to keep their workforces safe during the pandemic a challenge that will likely resurface in the future.

Bill Evanina, the head of counterintelligence, said during a webinar in May that agencies are looking at new ways to allow federal employees involved in classified issues to work from home.

Were at a precipice right now to immediately find solutions on teleworking, he said.

Cover thumbnail photo illustration: Yahoo News; photos: Jasmin Merdan/Getty Images, AP

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Excerpt from:
Intelligence employees vent frustrations over being forced to return to the office - Yahoo News

The National Sheep Association (NSA) is calling for visitors to the countryside to show more consideration and respect for the land, people who farm it, and livestock.

The NSA has received an alarming increase in reports of attacks on sheep by dogs over recent weeks, most likely linked to continuing Covid-19 restrictions including several regional and national lockdowns across the UK.

According to the NSA, while the countryside is a great location for people to benefit physically and mentally from time outdoors at this time, this cannot be at a cost to farmers and their livelihoods.

The NSA urges the public to take responsibility for their actions when in the countryside, and especially near livestock and have the following advice for dog owners:

First and foremost, dog owners must keep their animals under control and on a lead when walking near sheep. Not only do dogs pose a threat of injury to sheep, but at this time of year, when most ewes are already or soon to be in lamb, the stress of being chased can lead to the pregnant sheep losing their lambs.

Sheep are a hugely valuable asset to the farmer, and any damage to the flock can have detrimental effects.

Likewise, sheep worrying is also a hugely traumatic experience for the shepherd, with several studies carried out by NSA showing that the risk of a potential attack happening causes significant stress and anxiety to farmers.

Recent cases of sheep worrying have resulted in dogs being shot as a last resort option to halt a serious attack.

This, of course, is never an action carried out by a farmer with ease according to the NSA, but the law states that a farmer is in their rights to shoot an animal if it is found to be in the act of worrying livestock and dog owners should be aware of the potential danger they put their pet dog in if they are not responsible while out walking.

NSA Chief Executive Phil Stocker commented:

It must be stressed to owners who allow their dogs to chase, attack and potentially kill livestock that it is a criminal act and for very good reason.

Few people would understand the stress and anger that a farmer or shepherd goes through by finding a dog attacking and killing sheep and very occasionally this can result in dogs being shot.

We appreciate how distressing this would be for a dog owner but very few farmers would do this out of choice and anyone driven to do this would be highly distressed by the action as well I am certain.

Attacks on dogs often cause huge financial cost for the farmer but for most the initial stress and anxiety is equally impactful.

The only way to avoid incidents like this is for dog owners to take proper responsibility for the dogs know where they are at all times and keep them on leads anywhere in the vicinity of livestock, he concluded.

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Originally posted here:
NSA calls for dog walkers to respect the countryside after recent attacks on sheep - Agriland.co.uk

THE National Sheep Association (NSA) is calling for visitors to the countryside to show more consideration and respect for the land, people who farm it, and livestock.

NSA has received an alarming increase in reports of attacks on sheep by dogs over recent weeks, most likely linked to continuing Covid-19 restrictions, including several regional and national lockdowns across the UK.

While the countryside is a great location for people to benefit physically and mentally from time outdoors at this time, this cannot be at a cost to farmers and their livelihoods.

NSA urges the public to take responsibility for their actions when in the countryside, and especially near livestock.

Dog owners must keep their animals under control and on a lead when walking near sheep. Not only do dogs pose a threat of injury to sheep but, at this time of year, when most ewes are already or soon to be in lamb, the stress of being chased can lead to the pregnant sheep losing their lambs.

Sheep worrying is also a traumatic experience for the farmer, with several studies carried out by NSA showing that the risk of a potential attack happening causes significant stress and anxiety to farmers.

Recent cases of sheep worrying have resulted in dogs being shot as a last resort option to halt a serious attack. This, of course, is never an action carried out by a farmer with ease but the law states that a farmer is in his/her rights to shoot an animal if it is found to be in the act of worrying livestock and dog owners should be aware of the potential danger they put their pet dog in if they are not responsible while out walking.

NSA chief executive Phil Stocker said: It must be stressed to owners who allow their dogs to chase, attack and potentially kill livestock that it is a criminal act and for very good reason. Few people would understand the stress and anger that a farmer or shepherd goes through by finding a dog attacking and killing sheep and very occasionally this can result in dogs being shot.

Attacks on sheep often cause huge financial cost for the farmer but for most the initial stress and anxiety is equally impactful. The only way to avoid incidents like this is for dog owners to take proper responsibility for the dogs know where they are at all times and keep them on leads anywhere in the vicinity of livestock.

Further information available for dog owners and others on how to be responsible walking in the countryside can be found on the NSA website at http://www.nationalsheep.org.uk/dog-owners.

Link:
NSA calls for visitors to rural areas to be more responsible - Darlington and Stockton Times

The self-storage REIT sector has been fairly resilient throughout this pandemic, with stable occupancy rates. While the larger names, such as Public Storage (PSA) and Extra Space Storage (EXR) get most of the attention, Im focused on the smaller name, National Storage Affiliates (NSA), which follows a somewhat differentiated strategy from that of its peers. In this article, I evaluate what makes NSA a continued sound investment for long-term investors, so lets get started.

(Source: Company website)

National Storage Affiliates is a fast-growing Self-Storage REIT that is focused on growing through the integration of strong regional operators. It is the sixth largest self-storage operator in the U.S. Its portfolio consists of 788 properties covering 49.5M rentable square feet in 35 states plus Puerto Rico. Of the 788 properties, 611 are wholly-owned, and 177 are 25% owned through a joint venture. Since Q215, the property count has more than tripled in size, from around 250 properties at that time.

What differentiates NSA from its peers is that it provides opportunities for private owners to retain their roles as property managers. This, in turn, allows NSA to maintain regional-focused branding on many of its properties while also being able to leverage local market expertise. The companys strategy is to own properties in the top 100 MSAs, which have attractive growth dynamics and population densification.

NSA continues to demonstrate strength during this pandemic with 10% YoY FFO/share growth, to $0.44, in the latest quarter. Occupancy also remains strong, at 91.9%, which equates to a 260 basis points increase from September 30, 2019. What I find impressive is that occupancy continued to increase post-Q3, driven by move-in volume outpacing move-outs. As a result, occupancy at the end of October rose even further, to 92.4%, equating to a 420 bps increase compared to October of last year. This represents an all-time high occupancy for NSAs same-store portfolio.

For the full-year 2020, management has guided for core FFO/share of $1.67 at the midpoint, which would represent 8.4% YoY growth compared to 2019. This represents a continuation of NSAs strong track record of growth. As seen below, for the period Q215- Q320, NSAs annual same-store NOI growth of 6.8% has outpaced its peers. This, combined with external growth, has resulted in 13.4% annual core FFO/share growth over the same period, and this also outpaces that of its peers.

(Source: November Investor Presentation)

NSA attributes this outperformance to its PRO structure, which covers 60% of its wholly-owned portfolio, gives it key advantages, as PROs are the first to absorb any downside. As seen below, PROs absorb 50% of NOI declines until the 6% preferred allocation to SP (subordinated performance) equity is reached, then 100% of the NOI declines until the 6% preferred allocation to SP equity is completely eroded. For reference, SP refers to subordinated performance units, which are linked to property-specific portfolios.

(Source: November Investor Presentation)

I see the PRO structure as being very beneficial for NSAs shareholders, as it offers both downside protection and helps to align the interest of PROs. In addition, this structure acts as a buffer to protect the dividend from portfolio NOI declines, and has the same effect as reduced financial leverage.

Looking forward, I see no signs of NSA slowing down, as it currently has a pipeline of about $300M of properties under contract or letter of intent. Management expects to close nearly half of these by the end of the year. I see a long growth runway for NSA, as it continues to consolidate this fragmented sector of mostly mom-and-pop style businesses. The self-storage industries is comprised of 48K properties with over 30K operators, generating over $34B in annual revenue. Publicly-traded operators currently own just 28% of the market, with the remaining 72% being owned by mostly small private operators.

One of the risks to investing in the self-storage industry is oversupply, as this property type is relatively easy to build. Therefore, its hard for any one operator to establish a moat in order to fend off competition. While this remains a long-term risk, I see this risk as being mitigated, as management has signaled recent weakness on the supply front, as noted during the recent conference call:

On the supply front, we've seen completions trending down on a year-over-year basis, while an increase in abandoned project is reducing the forward pipeline. We already forecast that total deliveries will steadily decline through 2024. However, we think well continue to face headwinds from new supplies in Portland, Phoenix, certain submarkets in Dallas and West Florida. Fortunately, though, the current boost in demand is alleviating some of that pressure, especially in Portland.

Meanwhile, Im encouraged to see that NSA has improved its debt profile on a QoQ sequential basis. Since Q2, NSAs net debt-to-adjusted EBITDA has improved from 6.3x to 6.0x. Its interest coverage has also improved sequentially, from 4.4x to 4.7x. The effective interest rate is 3.5%, and NSA has no debt maturities until 2023.

(Source: November Investor Presentation)

Plus, NSA has a BBB credit rating, which helps it to obtain financing at attractive rates. This is supported by recent senior unsecured notes that were issued in October, at what I see as attractive interest rates between 2.99% and 3.09%, which sits below NSAs average effective interest rate.

Lastly, dividend growth is one of the best ways for management to express confidence in the business. While the recent 2.9% dividend increase is not too impressive. This is far better than the dividend cuts and freezes that companies in other REIT sectors have done. The payout ratio is sound, at 80% (based on Q3 FFO/share of $0.44). NSA currently yields 4.0%, which I find to be attractive in this low-rate environment.

National Storage Affiliates is a well-run enterprise, whose business continues to perform well in the current economic environment. Occupancy is currently at a record high, and the company saw strong FFO/share growth in the latest quarter. NSA has a strong track record of outperforming its peers, and I credit this to its differentiated strategy of utilizing the PRO structure. This strategy also has the benefit of de-risking NSAs business, as it ensures that its partners have sufficient skin in the game.

Looking forward, I see no signs of NSA slowing down, as it continues to consolidate the fragmented self-storage sector. Im also encouraged by the sequential improvement in NSAs debt profile.

At the current price of $34.73, with a forward P/FFO of 20.9, Ill be the first to admit that the shares arent cheap. However, I find it to be reasonable, given NSAs strong track record, and its growth opportunities ahead. This is a case in which Im reminded of the following Warren Buffett quote: its far better to buy a wonderful company at a fair price than to buy a fair company at a wonderful price. Buy for income and growth.

Thanks for reading! If you enjoyed this piece, then please click "Follow" next to my name at the top to receive my future articles. All the best.

Disclosure: I am/we are long NSA. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: This article is for informational purposes and does not constitute as financial advice. Readers are encouraged and expected to perform due diligence and draw their own conclusions prior to making any investment decisions.

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National Storage Affiliates: Store Your Capital With This Fast-Growing REIT - Seeking Alpha

27 November 2020

Milbank LLP

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"The Only Truly Secure System Is One That IsPowered Off" Cybersecurity In A Digital Age-Podcast episode with Milbank partners Allan Marks and DaraPanahy with former NSA General Counsel Glenn S. Gerstell

There are two perspectives from which to examine cybersecurity.Big picture: Are we safe as a nation? Up close: What should mycompany or institution be doing now to manage cyber risks? In thisspecial, extended episode, Allan Marks joins Former NSA General CounselGlenn Gerstell and Milbank partner Dara Panahyto explore in depth the neededtools and current trends in cybersecurity, national security,governance and technology. Can we become more resilient whilebecoming ever more interconnected?

Click here to browse more topics in the Law, Policy& Markets: Milbank Conversations series.

About the speakers:

Glenn S. Gerstellserved as the general counsel of theNational Security Agency (NSA) and Central Security Service (CSS)from 2015 to 2020. He has written and spoken widely about theintersections of technology and national security and privacy.Prior to joining the NSA, Mr. Gerstell practiced law for almost 40years at the international law firm of Milbank LLP, where hefocused on the global telecommunications industry and served as themanaging partner of the firm's Washington, DC, Singapore, andHong Kong offices. Mr. Gerstell served on the President'sNational Infrastructure Advisory Council, which reports to thepresident and the secretary of homeland security on securitythreats to the nation's infrastructure, as well as on theDistrict of Columbia Homeland Security Commission. Earlier in hiscareer, he was an adjunct law professor at the GeorgetownUniversity Law Center and New York Law School. He is a recipient ofthe National Intelligence Distinguished Service Medal, theSecretary of Defense Medal for Exceptional Civilian Service and theNSA Distinguished Civilian Service Medal.

As leader of Milbank's Transportation and Space Group inWashington, DC and head of the firm's Global Risk &National Security practice,Dara Panahyrepresentssatellite operators, aerospace manufacturers, launch servicesproviders, communications companies, banks, private equity firmsand hedge funds in debt and equity offerings, project, structuredand vendor financings, mergers & acquisitions, financialrestructurings and in negotiating commercial contracts. He alsoadvises on regulatory, sanctions, anti-corruption, nationalsecurity and export control matters.

Allan Marks is one of theworld's leading project finance lawyers, with special expertisein the power and renewable energy, transportation and airports, oiland gas, water, and telecommunications sectors. He advisesdevelopers, investors, lenders, and underwriters around the worldin the development and financing of complex infrastructureprojects, as well as related acquisitions, restructurings andcapital markets transactions. He has provided strategic guidance tocorporate boards and senior executives with respect to riskmanagement and cybersecurity compliance in the energy and digitalinfrastructure areas. Mr. Marks also serves as an Adjunct Lecturerat the University of California, Berkeley at both the Law Schooland the Haas School of Business.

The content of this article is intended to provide a generalguide to the subject matter. Specialist advice should be soughtabout your specific circumstances.

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As we previously described and as reflected in the rapidly increasing number of cyber-attacks since its start, the COVID-19 pandemic has triggered a shift in working practices that hackers and...

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Cybersecurity In A Digital Age "The Only Truly Secure System Is One That Is Powered Off" - Technology - United States - Mondaq News Alerts

Incumbent US President Donald Trump, on November 25(local time), granted full pardonto his former national security advisor Michael Flynn. In a tweet made ahead of Thanksgiving, the Republican leader mentioned that it was his honour to pardon Flynn and congratulated the lieutenant General and his family. Flynn had, in 2017, testified about lying to FBI during a probe into Russian meddling in 2016 Presidential elections.

Later, Flynn, who was a part of trump administration for 22 days, took to Twitter to thank the American president. In a Twitter statement, the Flynn family said thatthey believein the constitution of the United States and that justice in this remarkable Republic must prevail for all citizens-equally andalways". In addendum, they also asserted that they were grateful to President Trump for "answering their prayers".

Read:Ex-Trump National Security Adviser Lt. Gen. H.R. McMaster On Biden Challenges

In 2017, Flynn had admitted lying to the FBI about his contact with the former Russian ambassador to the US and became a cooperating witness in Robert Muellers investigation into Russian interference in 2016 president election. However, White House in a statement saidFlynn should "never have been prosecuted" in the first place reiterating that he was innocent.

Read:Trump Hails Administration, Public As Dow Jones Index Crosses Historic 30,000 Point Level

"General Flynn should not require a pardon. He is an innocent man. Even the FBI agents who interviewed General Flynn did not think he was lying. Multiple investigations have produced evidence establishing that General Flynn was the victim of partisan government officials engaged in a coordinated attempt to subvert the election of 2016", a White House statement read.

"While todays action sets right an injustice against an innocent man and an American hero, it should also serve as a reminder to all of us that we must remain vigilant over those in whom we place our trust and confidence. The people who sit atop our intelligence and law enforcement agencies have tremendous power to affect the lives of their fellow citizens. The American people must always take care to scrutinize their actions, to hold them accountable, and to ensure that they use their immense power to uphold the rule of law rather than to harass, persecute, and jail their political opponents in pursuit of partisan political agendas," it added.

Read:Donald Trump Plans To Pardon Former National Adviser Michael Flynn: Reports

Read:Man Pleads Guilty In Plot To Attack White House, Trump Tower

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Great honour: Donald Trump pardons former NSA Michael Flynn ahead of Thanksgiving - Republic World

KABUL (Pajhwok): The National Security Council (NSC) on Saturday rejected as baseless media reports that claimed some parliament members received money from the council while a number of lawmakers called for investigation into the matter.

Recently there were reports in the media that some lawmakers maintained covert relations with the NSC and received financial support, the NSA said in a statement, terming the reports as baseless.

The National Security Council respects the parliament as the highest legislative body of the Islamic Republic of Afghanistan and its members and considers such reports as baseless and rejects them.

The publication of such reports was the work of biased elements who wanted to sabotage relations between the legislative and the executive and to create problems in making decisions by the two branches of the government in this sensitive situation, the statement said.

The NSA respected all members of parliament and was trying to increase coordination between the government and the parliament for the sake of finding solution to the countrys problems.

The issue was also discussed during todays session of the lower house.

Wolesi Jirga member Abdul Sattar Hussaini said: A list has emerged, which contains names of proud lawmakers and wealthy lawmakers. The NSC and the telecommunication ministry should be asked for help to reveal who published this list.

Death to such a lawmaker who misuses his authority and takes money from a minister, he roared, asking all his colleagues to be united in defending the honor of parliament.

Another lawmaker, Fatima Kohistani, said corruption in Afghanistan was undeniable but crime was an individual act. She said the issue of some lawmakers receiving money from the NSA should be investigated.

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NSA rubbishes reports of giving money to some MPs - Pajhwok Afghan News

The National Supermarket Association (NSA) and its local members partnered with local elected officials across the five boroughs to distribute 3,000 turkeys to New Yorkers in need as part of their annual turkey drive.

NSA said in a statement that the COVID-19 pandemic has ravaged communities across the city and has hit low-income New Yorkers especially hard, noting that demand for food has grown to unprecedented levels.

According to the Hunter College New York City Food Policy Center, the demand for food will climb from 11 to 25% by the end of the year.

To combat the issue of food insecurity, the National Supermarket Association partnered with local elected officials and community organizations to kick off their city-wide turkey drive to ensure low-income New Yorkers are able to put food on their tables for the holidays.

The turkey giveaways took place in coordinated areas that have traditionally faced food insecurity.

We are thrilled that we can continue this annual tradition of giving out free turkeys to those who need it most. The NSA Annual Turkey Drive is a critical effort, particularly this year when people are struggling with financial burdens due to the COVID-19 pandemic. I want to thank all of the elected officials and NSA members who coordinated with us to make this event a huge success, said William Rodrguez, President of the National Supermarket Association.

Related Article: Crime Prevention and Community Outreach, Common Goals for NSA and NYPD Commissioner

Nelson Eusebio, NSAs Director of Government Relations, also said, I want to thank all of the elected officials as well as the NSA members who made this event possible. It is truly a rewarding experience to be able to give back to the community every year, especially to those who have fallen on tough times these past few months.

An important group of elected officials also joined the National Supermarket Association Annual Turkey Drive: State Senator Alessandra Biaggi; Congressman Adriano Espaillat (NY -13); Assemblywoman Carmen De La Rosa; Brooklyn Borough President Eric Adams; Councilmember Fernando Cabrera; Councilmember Mark Gjonaj; State Senator Leroy Comrie; Assemblyman Victor M. Pichardo; and Councilmember Antonio Reynoso.

Not knowing when this pandemic will end, and what the recovery may bring, it is important that we continue to practice mutual aid and work together to nourish our communities, said State Senator Alessandra Biaggi.

I commend the National Supermarket Association for continuing in their long-standing tradition of giving back to our communities, especially this year when millions of families are being faced with unprecedented challenges unlike anything theyve faced before, said Congressman Adriano Espaillat (NY-13).

Im proud to join my colleagues on the city and state level to give away these turkeys. It means a lot having NSA to do their part to make this holiday even extra special. We are deeply grateful for all that you do for our communities, said Brooklyn Borough President Eric Adams.

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National Supermarket Association and Elected Officials Deliver 3000 Turkeys for Thanksgiving - Abasto, Food and Beverage Industry News