Strategic Storage Trust Inc., a publicly registered, non-traded real estate investment trust (REIT), released its financial results for the quarter ending Dec. 31. The company reported year-over-year same-store revenue and net operating income (NOI) increases of 8.6 percent and 13.9 percent, respectively, for the fourth quarter. For 2013, same-store revenue increased 9.1 percent and NOI was up 17.2 percent.
"Our investment strategy is designed to provide investors with current income through highly occupied stabilized assets, augmented by growth provided through lease-up and development opportunities,” said H Michael Schwartz, CEO. “Our continued growth, coupled with our ability to operate our portfolio with more efficiencies, has contributed to our success in 2013 and bodes well for the future."
In all, same-store average occupancy was at 83 percent for the quarter, up from 79 percent year over year. For the year, same-store average occupancy was up 5 percent, finishing at 83 percent, compared to 78 percent in 2012.
The REIT also increased IPA (Investment Program Association) modified funds from operations (MFFO) by 129 percent to $20.6 million for the year, up from $9 million for 2012. For the quarter, MFFO increased 33 percent to $5.6 million, up from $4.2 million.
Cash flow from operation increased by 67 percent to $5.2 million during the quarter and 102 percent to $19.3 million for the year.
The company acquired nine self-storage properties during the fourth quarter for a total cost of approximately $65 million. The properties are in Alabama, Tennessee and Texas. It purchased 12 properties during the year for approximately $82 million.
Launched in 2008, Strategic Storage Trust operates a portfolio of 125 self-storage facilities in 17 states and Canada. Branded as SmartStop Self Storage, the properties comprise approximately 79,000 units and 10.4 million rentable square feet of storage space.