Sovran Self Storage Inc., a self-storage real estate investment trust, reported operating results for the quarter ended March 31, 2010. Highlights include:
- Net income available to common shareholders was $7.4 million. For the same period in 2009, it was $7.6 million.
- Funds from operations for the quarter were $.60 per fully diluted common share. A slight decline in operating income coupled with the impact of the company's four million share offering contributed to the decline in per share results.
- Total company net operating income for the first quarter declined 2.7 percent compared with the same quarter in 2009 to $29.7 million.
- Overall average occupancy for the quarter was 79 percent and average rent per square foot for the portfolio was $10.36.
- Revenue for the company’s 353 stores for the quarter decreased by 1.3 percent from those of the first quarter of 2009, the result of a 40 basis point drop in occupancy and a 10 basis point drop in rates, offset by a strong increase in other income.
"In many markets, we are gaining some pricing power by channeling a higher level of inquiries into stronger asking rates and decreased incentives," said Kenneth Myszka, president and COO. "Pricing continues to be a function of demand at the specific store and unit level, and it varies greatly from market to market and store to store. We continue to gauge the sensitivity of these conditions in our efforts to optimize realized revenue."
Source: The Wall Street Journal, Sovran Self Storage Reports First Quarter 2010 Results, Ups Guidance and Announces New Head of Revenue Management