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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.

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