Real estate investment trust Sovran Self Storage Inc., which operates the Uncle Bob’s Self Storage brand, will pay its shareholders a quarterly dividend of $0.75 per share of common stock for the fourth quarter of 2014, which ended Dec. 31. The amount includes a 10 percent increase over the third quarter and will be paid on Jan. 26 to shareholders of record on Jan. 16.
The annualized dividend is $3 per share, which, based on Monday’s closing share price, equates to an annual rate of approximately 3.4 percent, according to a company press release. It is the largest quarterly dividend the company has issued based on data going back to September 1995.
“Our cash flow has increased considerably over the past several years as a result of improving customer demand and ongoing investment in technology, properties and people,” said David Rogers, CEO. “Given our solid financial position and continued expectation of strong operating results, we are pleased to share the benefits of this growth with our shareholders.”
In its third-quarter financial report, Sovran said total revenue increased 21 percent over the previous year's third quarter, while operating costs increased 16.4 percent, resulting in a net-operating-income (NOI) increase of 23.1 percent. Same-store NOI increased 9.2 percent year over year. Funds from operations for the third quarter was $1.12 per fully diluted common share, compared to 98 cents for the same period the previous year, a 14.3 percent increase.
Net income available to common shareholders for the third quarter was $25.6 million, or 77 cents per fully dilated share. For the same period in 2013, net income available to common shareholders was $19.7 million, or 62 cents per fully diluted common share.
Revenue for the company’s 385 wholly owned facilities increased 7 percent year over year, helped by an increase in average occupancy of 140 basis points and 4.4 percent increase in rental rates. Average overall occupancy was 90.9 percent, with units renting for an average of $12.19 per square foot, an increase of 8.7 percent.
Buffalo, N.Y.-based Sovran operates more than 500 self-storage facilities in 25 states. The company ranked No. 5 on the Inside Self-Storage 2014 Top-Operators List.
- Uncle Bobâ€™s Self Storage: Sovran Self Storage Inc. Raises Quarterly Dividend by 10%