Strategic Storage Trust Announces Fourth-Quarter 2012 Financial Results
Copyright 2014 by Virgo Publishing.
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Posted on: 04/08/2013



 

Strategic Storage Trust Inc., a publicly registered, non-traded real estate investment trust (REIT) investing in self-storage properties, announced its fourth-quarter 2012 financial results. The company had a 5.8 percent increase in same-store revenue and a 10.4 percent increase in net operating income (NOI) compared to the fourth quarter of 2011.

The increase in same-store revenue was primarily attributed to an increase in average occupancy of approximately 4 percent. The average occupancy of 81 percent during the quarter was an improvement from 77 percent during the same quarter in 2011.

Same-store NOI improved due to the revenue increases combined with a decrease in property-operating expenses as a percentage of revenue, company officials said.

“Our growth has come through strategic acquisitions and our ability to increase revenues and operating income by targeting properties with upside potential, and applying strong marketing and operational-management fundamentals to increase occupancy rates and revenues,” said H. Michael Schwartz, CEO. “With the people, management and marketing systems we now have in place and the potential for continued growth, coupled with the stability of the asset class, we believe we are well positioned for future success.”

The company also increased IPA (Investment Program Association) modified funds from operations by 59 percent to $4.2 million during the quarter, up from $2.7 million the previous quarter. The improvement was attributed to sequential quarter improvements in same-store NOI and incremental NOI from self-storage properties acquired during the third and fourth quarters last year.

Strategic Storage Trust also reported that cash flow from operation increased by 90 percent, from $1.6 million during the fourth quarter the previous year to $3.1 million for the three months ended Dec. 31, 2012.

The company acquired 10 properties during the fourth quarter for a total of $60 million. For the year, Strategic Storage Trust purchased 19 properties for approximately $93 million. The acquisitions included a 16-facility portfolio in Florida, Georgia and South Carolina.

The Strategic Storage Trust portfolio includes more than 100 self-storage facilities across the United States and Canada that are branded as SmartStop Self Storage. It includes approximately 70,000 self-storage units and 8.8 million square feet of rentable storage space.