Self-Storage REITs Release Q1 2012 Financial Results
|Copyright 2014 by Virgo Publishing.|
|Posted on: 05/07/2012|
The four U.S.-based self-storage real estate investment trusts (REIT)—CubeSmart, Extra Space Storage Inc., Public Storage Inc. and Sovran Self Storage Inc.—have released financial statements for the quarter that ended March 31. In general, all of the REITs are experiencing growth in key areas compared with the first quarter of 2011.
CubeSmart's total revenue increased $11.4 million, and total property operating expenses increased $2.5 million, as compared with the first quarter of 2011. The company reported a funds from operations (FFO) per share of $0.16 and also reported a 7.4 percent increase compared with the first quarter of 2011 in same-store net operating income (NOI) at its 339 facilities. The company attributes this to 2.7 percent growth in overall revenue and a 4.3 percent decrease in property operating expenses.
The operation gained 190 basis points in physical occupancy compared with the same period in 2011. The same-store physical occupancy as of March 31 was 78.7 percent, compared with 76.8 percent for the same quarter of last year.
The company also closed on $86.4 million in acquisitions during the quarter. This includes one facility in Houston and one facility in Atlanta for a combined $12 million, as well as four former Storage Deluxe facilities for $74.4 million. Two facilities remain before CubeSmart's $560 million Storage Deluxe acquisition is complete. (Original story: "CubeSmart Announces $560M Acquisition of Storage Deluxe.")
CubeSmart revealed a net loss attributable to the company's common shareholders of $5.3 million or 4 cents per common share. However, on Feb. 21, the company declared a dividend of 8 cents per common share. The dividend was paid on April 16 to common shareholders of record on April 5.
Extra Space Storage Inc.
Same-store revenue increased by 6.3 percent and NOI rose by 10.8 percent compared to the same period in 2011.
FFO was 33 cents per diluted share, including lease-up dilution of 1 cent per share and additional interest expense of 1 cent per share associated with the prepayment of debt, resulting in 32 percent growth compared to the same period in 2011.
Same-store occupancy grew by 340 basis points to 87.1 percent at March 31, compared to 83.7 percent as of March 31.
The company acquired two properties for $15.5 million and opened one development property.
Extra Space paid a quarterly dividend of $0.20 per share.
Public Storage Inc.
Revenue for same-store facilities increased 4.8 percent or $17.4 million in the quarter, as compared to the same period in 2011, primarily because of a 0.6 percent increase in average occupancy and a 4.1 percent increase in realized annual rent per occupied square foot. Cost of operations for the same-store facilities increased by 1.9 percent, or $2.4 million in the quarter as compared to the same period in 2011.
FFO was $1.35 per diluted common share, compared to $1.48 for the same period in 2011, representing a decrease of 13 cents.
NOI for same-store facilities increased 6.3 percent or $15 million in the quarter, as compared to the same period in 2011.
During the quarter, the company acquired six self-storage properties in California, Florida (two), Massachusetts, New Jersey and Pennsylvania, for approximately $42 million. During March, the company acquired the remaining interests in three consolidated partnerships for approximately $19.9 million, plus the assumption of their share of existing debt totaling $4.8 million.
The company declared a regular common quarterly dividend of $1.10 per common share. It also declared dividends with respect to various series of preferred shares. All the dividends are payable on June 28 to shareholders of record as of June 13.
Sovran Self Storage Inc. (Uncle Bob's Self Storage)
Total revenue increased 15.2 percent over last year's first quarter, while property operating costs increased 6.8 percent, resulting in an NOI increase of 20.3 percent.
FFO for the quarter were 75 cents per fully diluted common share, compared to 62 cents for the same period last year.
Net income available to common shareholders for the first quarter of 2012 was $11.1 million or 39 cents per fully dilated share. For the same period in 2011, net income available to common shareholders was $8.3 million, or 30 cents per fully diluted common share.
Average overall occupancy was 81.8 percent with units renting for an average of $10.49 per square foot.
The company paid dividends of 45 cents per common share.