Strategic Storage Trust Inc., a publicly registered, non-traded real estate investment trust (REIT), released its financial results for the quarter ending Sept. 30. The company reported year-over-year same-store revenue and net operating income (NOI) increases of 9.4 percent and 16.1 percent, respectively. The increase in same-store NOI was attributed primarily to a 2-cent increase in average rent per occupied square foot to 83 cents.
As we move toward the next stage of our lifecycle, our strong gains in top-line revenues, net operating income and modified funds from operations continue to exemplify the solid foundations and philosophies we have put in place at Strategic Storage Trust over the past five years, said H. Michael Schwartz, CEO. We have completed our eighth consecutive quarter with increased same-store revenue growth, and we are encouraged by the current state of the self-storage market as a whole.
In all, same-store average occupancy was at 84 percent for the quarter, up from 80 percent year over year. Occupancy for the companys Homeland Portfolio increased to 84 percent from 67 percent during the third quarter last year. The Homeland Portfolio consists of 12 lease-up self-storage facilities acquired in December 2011 for $80 million.
The REIT also increased IPA (Investment Program Association) modified funds from operations by 119 percent to $5.9 million during the quarter, up from $2.7 million during the same period in 2012.
Cash flow from operation increased by 92 percent from $2.5 million during the third quarter last year to $4.8 million for the three months ended Sept. 30.
The company acquired three self-storage properties during the third quarter for a total cost of approximately $16.9 million. The properties are in New Jersey, South Carolina and Ontario, Canada.
The Strategic Storage Trust portfolio includes more than 120 self-storage facilities across the United States and Canada that are branded as SmartStop Self Storage. It includes approximately 77,000 self-storage units and 10.2 million square feet of rentable storage space.