Sovran Self Storage – Q3 Earnings Report

Sovran Self Storage just released their quarterly results after the market closed on Oct. 31. The conference call discussed their financial results and overall operations.

Here is a summary of what was discussed.

• Excluding acquisition and financing costs, FFO per share was $.88 vs $.72 in 2011.
• Stronger occupancy, lower operating costs and reduced move-in specials.
• Acquired 10 premium stores in the quarter and sold 17 older stores in TX,MI, and MD.
• No significant issues from Hurricane Sandy.

Operations

• Revenues increased 18.6%, operating expenses increased 9.3%, NOI increased 23.6%.
• Overall occupancy averaged 88.1%; average rents $10.79/SF.
• Revenues for 334 company owned stores increased 8%, the result of an increase in average occupancy from 81.5% to 88.2%, strong growth in other revenues, primarily tenant insurance.
• Continuing decreases in utility costs, credit card fees and yellow page advertising, offset modest increases in renovation and personnel costs resulted in overall reduction in same store expenses of 1.0%.
• Same store NOI increased 13.1%.
• G&A increased by $1.5 million, due to increased internet advertising, personnel and income taxes.
• Highest performing stores located in TX, NC, GA, and FL.

Properties

• Acquired 10 stores, all in existing markets, for $63.2 million and added 835,600 SF. Five were near Atlanta, GA, three in Jacksonville, FL, and one each in Chicago, IL and Raleigh, NC.
• Sold 3 stores in Dallas, TX, nine in Houston, TX, four in Michigan and one in Maryland for $47.7 million.

Capital Transactions

• Issued 1,004,934 shares at $56.95 raising $56.1 million after expenses. Funds used to repay a portion of the line of credit.

Stay tuned for our other REIT Q3 summaries coming up. If you have any questions please give us a call at 717-779-0804!