Strategic Storage Trust Inc., a publicly registered, non-traded real estate investment trust (REIT), released its financial results for the quarter ended March. 31 as well as the quarterly dividend paid to its investors. The company reported year-over-year same-store revenue and net operating income (NOI) increases of 7.6 percent and 8.1 percent, respectively, for the first quarter, compared to the same quarter in 2013.
"As we begin the 2014 year, we are pleased with the Q1 results and solid top-line growth in same-store revenue and NOI,” said CEO H. Michael Schwartz, who noted the company will enter the busy season with its highest historical first-quarter occupancy. “We believe this has put us in a strong position for potential positive rental-rate growth and increased occupancy."
Strategic Storage Trust’s same-store average occupancy increased by approximately 2.9 percent to 83.5 percent compared to the same quarter in 2013. The company also decreased its property operating expenses as a percentage of revenue to 33.7 percent during the quarter from 34.6 percent compared to the same quarter in 2013.
During the quarter, the REIT acquired two properties for about $12 million, including a facility in Hampton, Va., and another in Chandler, Ariz. It also purchased an additional 86 percent in beneficial interests in an entity that owns a self-storage facility in San Francisco for $5.7 million in cash and the issuance of approximately 245,000 limited partnership units. The acquisition brought the company’s ownership of the property to 98 percent.
Internationally, Strategic Storage Trust purchased 2.5 acres of land in Toronto for $3.8 million (CAD) to develop a self-storage facility that will encompass 78,000 square feet of storage space and 870 units.
In addition, the company’s board of directors declared a distribution of $0.001917808 per day per share on the outstanding shares of common stock. It’s equivalent to an annual distribution rate of 7 percent assuming the share was purchased for $10, and approximately 6.5 percent assuming the share was purchased for $10.79.
Launched in 2008, Strategic Storage Trust operates a portfolio of 126 self-storage facilities in 17 states and Canada. Branded as SmartStop Self Storage, the properties comprise approximately 80,000 units and 10.5 million rentable square feet of storage space.