The five largest publicly traded, U.S.-based self-storage real estate investment trusts (REITs)—CubeSmart, Extra Space Storage Inc., Life Storage Inc., National Storage Affiliates Trust and Public Storage Inc.—have released financial statements for the quarter that ended Sept. 30. In general, the companies indicated gains in funds from operations (FFO) and net operating income (NOI), with some minor declines in occupancy.

“We continue to see solid demand across the portfolio as we returned to more normalized seasonal trends during the quarter,” said Christopher P. Marr, president and CEO of CubeSmart. “We are in an outstanding position as our focus shifts to 2023. With another year of positive cash flow growth and a strong balance sheet, we’re well-positioned to perform in any economic climate and capitalize on all growth opportunities that present themselves.”

Joe Saffire, CEO of Life Storage, expressed similar sentiments. “Operating fundamentals are very strong with occupancy remaining elevated from pre-pandemic seasonal levels,” he said. “We are on track and well-positioned for another strong end to this year, and I cannot be more pleased with how our team continues to perform.”

CubeSmart

CubeSmart reported FFO per share of $0.66 during the third quarter, up from $0.56 a year ago. Same-store NOI at its 523 facilities grew 15.4% year over year. The company attributed this to a 12.2% increase in revenue and a 4.3% increase in operating expenses.

Same-store physical occupancy was 93.8% as of Sept. 30, down from 94.7% in 2021. The company’s total-owned portfolio, representing 611 facilities and 44.1 million square feet of rentable space, had a physical occupancy of 92.1% at the end of the quarter.

CubeSmart acquired one wholly owned self-storage property in Georgia for $20.7 million. It also opened a $39 million facility in New York. At quarter-end, the company had one joint-venture project under construction in New York to which it’s expected to contribute $40.1 million.

On July 26, the company declared a dividend of $0.43 per common share, which was equal to the previous quarter. The dividend was paid on Oct. 17 to common shareholders of record on Oct. 3.

CubeSmart owns or manages 1,274 self-storage facilities across the United States. Its operating portfolio comprises 88.6 million square feet.

Extra Space Storage Inc.

Same-store revenue and NOI at Extra Space increased 15.5% and 16.4%, respectively, compared to the same period in 2021. Core FFO, excluding adjustments for non-cash interest, was $2.21 per diluted share, a 19.5% increase over the previous year. Same-store occupancy was 95.2% as of Sept. 30 compared to 96.7% a year prior.

During the quarter, the company acquired 116 Storage Express facilities and completed one self-storage development project for a total cost of approximately $759.9 million. It also purchased 11 facilities in conjunction with joint-venture partners for $210.3 million to which it contributed $25.7 million.

Extra Space paid a quarterly dividend of $1.50 per common share, which was equal to the previous quarter. It was paid on Sept. 30 to common shareholders of record on Sept. 15.

Headquartered in Salt Lake City, Extra Space owns or operates 2,327 self-storage properties in 41 states and Washington, D.C. The company’s properties comprise approximately 1.6 million units and 175.1 million square feet of rentable space.

Life Storage Inc.

Same-store NOI at Life Storage increased 18.4% compared to 2021, while adjusted FFO was $1.73, compared to $1.65 a year ago. Net income attributable to common shareholders for the third quarter was $98.5 million, or $1.16 per fully diluted share. For the same period in 2021, those numbers were $70.3 million and $0.89, respectively.

Same-store revenue for the company’s 576 wholly owned, stabilized facilities increased 14.9% year over year, impacted by a 17.1% bump in rental rates. Overall occupancy as of Sept. 30 was 91.8%, down from 94.2% a year ago, with self-storage units renting for an average of $19.26 per square foot.

During the quarter, Life Storage acquired 11 facilities for $217.5 million. The assets include five in Missouri and one each in Arizona, California, Florida, Massachusetts, Nevada and North Carolina. The company purchased one wholly owned property in New York through a consolidated joint venture for $29 million to which it contributed $24.1 million. It also partnered on a $264.3 million acquisition of a 15-facility portfolio to which it invested $52.7 million.

The REIT approved a quarterly dividend of $1.08 per share, which was equal to the previous quarter. It was paid on Oct. 26 to shareholders of record on Oct. 14.

Based in Buffalo, New York, Life Storage operates more than 1,100 self-storage facilities in 37 states. Its portfolio of owned and managed facilities comprises more than 84.5 million square feet.

National Storage Affiliates Trust (NSAT)

Core FFO per share at NSAT was $0.72 during the third quarter, a 26.3% year-over-year increase. Net income was $40.2 million, a 1.4% decrease compared to the same period in 2021.

NSAT reported diluted earnings per share of $0.21 compared to $0.26 a year ago. Same-store NOI was up 12.1%, driven primarily by an 10.7% increase in same-store revenue and partially offset by a 6.9% increase in same-store operating expenses.

As of Sept. 30, same-store occupancy was 92.6%, a decrease of 350 basis points from the year prior. Average annualized rental revenue per occupied square foot for same-store facilities was $15.07 during the quarter compared to $13.27 in 2021.

NSAT acquired 23 self-storage properties for $321.8 million, adding approximately 1.7 million rentable square feet and 12,800 units to the company portfolio.

On Aug. 25, the company declared a quarterly dividend of $0.55 per common share, which was equal to the previous quarter. It was paid on Sept. 30 to holders of record on Sept. 15.

Headquartered in Greenwood, Colorado, NSAT is a self-administered and -managed REIT focused on the acquisition, operation and ownership of self-storage properties within the top 100 U.S. Metropolitan Statistical Areas. The company operates 1,100 storage facilities in 42 states and Puerto Rico. Its portfolio comprises approximately 71.5 million net rentable square feet. It's owned by its affiliate operators, who are contributing their interests in their self-storage assets over the next few years as their current mortgage debt matures.

Public Storage Inc.

Revenue for same-store facilities at Public Storage increased 14.7%, or $105.4 million, over the same quarter in 2021, primarily due to higher realized annual rent per available square foot and partially offset by a decline in occupancy. Operations costs for same-store facilities went up 7.7%, or $13.5 million, compared to the previous year. This was primarily attributed to increases in centralized management, marketing expenses, property taxes and other property costs.

FFO was $4.66 per diluted common share compared to $3.61 for the same period of 2021, marking a 29.1% increase. NOI increased $148.4 million, which was driven by a $91.9 million increase in same-store facilities and a $56.5 million increase from other non-stabilized stores.

During the quarter, Public Storage acquired 24 self-storage facilities across 11 states for $250.6 million. Comprising 1.7 million rentable square feet, the properties include 10 in Oklahoma, three in South Carolina, two each in Alabama and Texas, and one each in Arizona, Florida, Iowa, Nevada, New Jersey, North Carolina and Ohio. The company also completed various expansion projects, adding 500,000 net rentable square feet to its portfolio for $69.7 million.

The company reported a regular common quarterly dividend of $2 per common share, which was equal to the previous quarter. It also declared dividends with respect to various series of preferred shares. All the dividends are payable on Dec. 29 to shareholders of record as of Dec. 14.

Based in Glendale, California, Public Storage has interests in 2,836 self-storage facilities in 40 states, with approximately 202 million net rentable square feet. It holds a 35% interest in Shurgard Self Storage SA, which has 259 facilities in seven European countries, with approximately 14 million net rentable square feet.

Sources:
CubeSmart, CubeSmart Reports Third Quarter 2022 Results
Extra Space, Extra Space Storage Inc. Reports 2022 Third Quarter Results
Life Storage, Life Storage Inc. Reports Third Quarter 2022 Results
National Storage Affiliates Trust, National Storage Affiliates Trust Reports Third Quarter 2022 Results
Public Storage, Public Storage Reports Results for the Three and Nine Months Ended September 30, 2022