Self Storage REITs: Highlights for 4th Quarter 2012 and Full Year Results
Here is a summary of the Self Storage REITs Highlights for the 4th quarter as well as 2012 full year results:
Public Storage (PSA)
Same Store Results
- Revenue increased 4.9%, expenses decreased 1.7% and NOI increased 7.9%.
SF occupancy was 91.8% vs. 90.2%.
Average rent per SF was $12.59.
Investment Activity
- Acquired 10 stores for $82 million; located in FL, GA, CA, AZ, TX, and NY.
Balance Sheet
- Redeemed three preferred stocks (rate range 6.125%-6.25%) at par totaling $362.5 million.
- Issued new preferred shares at 5.2% worth $500 million.
- Repaid $133 million on outstanding credit line.
Quarterly Dividend
- On February 21, paid quarterly dividend of $1.25 per share
Outlook
- Beginning new development projects in certain areas although they expect future development to small relative to past volume.
Extra Space (EXR)
Same Store Results
- Increased occupancy 1.7% to 88.6%
- Increased revenue and net operating income 6.5% and 8.5%.
- Above average revenue growth in Atlanta, Chicago, Houston, Los Angeles, Miami and Tampa. Under performing markets were Albuquerque, Las Vegas and Phoenix.
Investment Activity
- Acquired 32 stores for $215.1 million of which 21 came from joint ventures. The remaining 11 stores were in AZ, FL, MA, MD and NJ.
- Subsequent to year end, acquired two stores in MD and IL by acquiring a JV interest.
- The company has two stores under contract in MD and TX and expects to close by the end of the first quarter.
Balance Sheet
- Weighted average interest rate of fixed and variable debt is 4.6% and 2.3%. The combined rate is 4.2%.
Quarterly Dividend
- Paid quarterly dividend of $.25 per share
Third Party Management
- Total stores under management are 181 owned by third parties plus an additional 281 stores owned in a JV.
Outlook
- 2013 forecasts include same store revenue growth between 4.5% and 5.5%, operating expenses between 2.75% and 3.75%, and NOI growth of 4.5% to 6.5%.
CubeSmart (CUBE)
Same Store Results (includes 313 stores)
- Physical occupancy was 84.6% vs. 79.1% last year
- Net rental income increased 3.9%, total revenues increased 5.2% and operating expenses increased 1.2%. Net operating income increased 7.4%.
- Average rent per SF $11.46, down 2.1%.
Investment Activity
- Closed on 5 acquisitions in the quarter for $25.6 million and the stores are located in PA, NJ, FL and TX.
- Sales include 11 stores for $24.3 million, located in OH, FL, and TN. For the year, the company sold 26 stores for $60 million.
- Full year acquisitions total $442.7 million. Excluding the large Storage Deluxe transaction, total acquisitions included 22 stores worth $128.4 million.
Quarterly Dividend
- Increased its quarterly dividend 37.5%.
Third Party Management
- New management contracts for the quarter totaled 8, mostly in the Southeast. Total stores under management now are 133.
Outlook
- Experienced accelerating performance throughout 2012 and remain positioned to maintain this fundamental momentum into 2013. Steady demand and limited supply keep us optimistic.
Sovran Self Storage (SSS)
Same Store Results
- Revenues increased 8.2% due to an occupancy increase of 5.9% to 86.2%.
- Operating expenses increased 1.8%
- Same store NOI increased 11.7%.
- States with the strongest revenue growth were TX, FL, NC and GA.
- Average rent per SF was $10.73.
Investment Activity
- Acquired 14 stores, 6 in Chicago, 4 in FL, 3 in TX and 1 in AZ.
Third Party Management
- Added 17 stores to third party management
Outlook
- Forecast revenue to increase 4.5%-5%, expenses 4%-4.75% and NOI 5%-5.50%.
Please let us know if you have any questions.
