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Self-Storage REITs Declare Second-Quarter 2015 Stock Dividends

The four publicly traded U.S.-based self-storage real estate investment trusts (REITs)—CubeSmart, Extra Space Storage Inc., Public Storage Inc. and Sovran Self Storage Inc.—have declared dividends for the second quarter of 2015.

May 28, 2015

4 Min Read
Self-Storage REITs Declare Second-Quarter 2015 Stock Dividends

The four publicly traded U.S.-based self-storage real estate investment trusts (REITs)—CubeSmart, Extra Space Storage Inc., Public Storage Inc. and Sovran Self Storage Inc.—have declared dividends for the second quarter of 2015.

CubeSmart

The board of trustees for CubeSmart declared a dividend of $0.16 per common share for the period ending June 30, which is equal to that of the previous quarter. It’s payable on July 15 to common shareholders of record on July 1.

The board also declared a quarterly dividend of $0.484375 for the 7.75 percent Series A Cumulative Redeemable Preferred Shares payable on July 15 to holders of record on July 1.

CubeSmart recently released its first-quarter 2015 financial statement, reporting funds from operations (FFO) per share of $0.28, a 12 percent year-over-year increase. Same-store net operating income (NOI) at its 361 facilities grew 9.5 percent year over year. The company attributed this to 7 percent growth in revenue and a 2 percent increase in property operating expenses.

CubeSmart owns or manages 611 self-storage facilities across the United States and operates the CubeSmart Network, which consists of more than 800 additional self-storage facilities.

Extra Space

The board of directors for Extra Space announced a quarterly dividend of $0.59 per share on the company's common stock for the second quarter. The dividend reflects a 25.5 percent increase over that of the previous quarter. It’s payable on June 30 to stockholders of record at the close of business on June 15.

The REIT recently reported a same-store revenue increased 8.3 percent for the first quarter, and NOI rose 11.4 percent compared to the same period in 2014. FFO was 68 cents per diluted share, resulting in 21.1 percent growth year over year.

Headquartered in Salt Lake City, Extra Space owns or operates 1,106 self-storage properties in 35 states; Washington, D.C.; and Puerto Rico. The company’s properties comprise approximately 740,000 units and 81.8 million square feet of rentable space.

Public Storage

Public Storage previously announced its quarterly dividend of $1.70 per common share, which includes a 21 percent increase over the previous quarter. The REIT also declared dividends with respect to its various series of preferred shares. All dividends are payable on June 30 to stockholders of record on June 15.

The company previously announced that revenue for same-store facilities increased 6.1 percent, or $27.1 million, in the first quarter, as compared to the same period in 2014. Cost of operations for same-store facilities increased by 1.1 percent, or $1.6 million, year over year. FFO was $1.91 per diluted common share in the first quarter, compared to $1.74 for the same period the previous year. NOI increased $39.9 million during the quarter compared to the same period in 2014, including $25.5 million for same-store facilities.

Based in Glendale, Calif., Public Storage has interests in 2,258 self-storage facilities in 38 states, with approximately 146 million net rentable square feet. Operating under the Shurgard brand name, the company also has 193 facilities in seven European countries, with approximately 10 million net rentable square feet.

Sovran Self Storage

Sovran, which operates the Uncle Bob’s Self Storage brand, previously announced a quarterly dividend of $0.75 per share of common stock. The dividend was paid on April 27 to shareholders of record on April 17. The annualized dividend was $3 per share, which, based on the REIT’s April 1 closing share price, equated to an annual rate of approximately 3.2 percent.

In its first-quarter financial report, Sovran announced total revenue increased 13.2 percent year over year, while operating costs increased 11 percent, resulting in an NOI increase of 14.4 percent. Same-store NOI increased 7.5 percent year over year. FFO for the first quarter was $1.07 per fully diluted common share, compared to 88 cents for the same period the previous year, a 21.6 percent increase.

Sovran operates more than 500 facilities in 25 states. Its portfolio comprises more than 34 million square feet in more than 305,000 units.

Sources:

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