May 6, 2022

7 Min Read
Self-Storage REITs Release Financial Results for First-Quarter 2022

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 March 31. Shurgard, the European affiliate of Public Storage, also reported first-quarter results. In general, the companies indicated gains in funds from operations (FFO), net operating income (NOI) and occupancy.

“The year got off to a strong start in the first quarter as we saw a continuation of positive trends from 2021,” said Christopher P. Marr, president and CEO of CubeSmart. “We believe that demand trends remain constructive and will continue to support growth going forward.”

Tamara Fischer, president and CEO of National Storage Affiliates Trust, expressed similar sentiments. “First quarter results confirmed that the favorable performance trends experienced in 2021 are continuing into 2022. Rental demand remains robust, supply remains muted, and we are benefiting from continued strength in rate growth to both new and in-place tenants,” she said.


CubeSmart reported FFO per share of $0.58 during the first quarter of 2022, up from $0.47 a year ago. Same-store NOI at its 523 facilities grew 21.4% year over year. The company attributed this to a 15.6% increase in revenue and a 2.9% increase in operating expenses. Same-store locations contributed 85.9% of property NOI during the quarter.

Same-store physical occupancy was 94.1% as of March 31, which was equal to a year ago. The company’s total-owned portfolio, representing 608 facilities and 43.6 million square feet of rentable space, had a physical occupancy of 92.6% at the end of the quarter.

CubeSmart acquired one wholly owned property in Maryland for $32 million. At quarter-end, the company had three joint-venture projects under construction to which it’s expected to contribute $92.3 million.

On Feb. 23, the company declared a dividend of 43 cents per common share, which was equal to the previous quarter. The dividend was paid on April 18 to common shareholders of record on April 1.

CubeSmart owns or manages 1,272 self-storage facilities across the United States. Its operating portfolio comprises 88.5 million square feet.

Extra Space Storage Inc.

Same-store revenue and NOI at Extra Space increased 21.7% and 27.6%, respectively, compared to the same period in 2021. Core FFO, excluding adjustments for non-cash interest, was $2.01 per diluted share, a 34% increase over the previous year. Same-store occupancy was 94.5% as of March 31 compared to 95.3% a year prior.

During the quarter, the company acquired 11 operating facilities and three properties at Certificate of Occupancy for approximately $225 million. It also purchased two facilities in conjunction with joint-venture partners for $42.5 million, to which it contributed $4.3 million.

Extra Space paid a quarterly dividend of $1.50 per common share, up from $1.25 the previous quarter. It was paid on March 31 to common shareholders of record on March 15.

Headquartered in Salt Lake City, Extra Space owns or operates 2,130 self-storage properties in 41 states and Washington, D.C. The company’s properties comprise approximately 1.5 million units and 164.2 million square feet of rentable space.

Life Storage Inc.

Same-store NOI at Life Storage increased 21.9% compared to 2021, while FFO was $1.44, compared to $1.08 a year ago. Net income attributable to common shareholders for the first quarter was $73.6 million, or $0.88 per fully diluted share. For the same period in 2021, those numbers were $47.4 million and $0.63, respectively.

Same-store revenue for the company’s 580 wholly owned, stabilized facilities increased 15.6% year over year, impacted by an increase in average occupancy of 20 basis points and a 14.9% bump in rental rates. Overall occupancy as of March 31 was 92.9%, down from 93.1% a year ago, with units renting for an average of $16.98 per square foot.

During the quarter, Life Storage acquired 18 facilities across seven states for $351.5 million. The assets include six in California, four each in North Carolina and Texas, and one each in Georgia, Illinois, Maryland and South Carolina.

The company approved a quarterly dividend of $1.00 per share, which was equal to the previous quarter. It was paid on April 26 to shareholders of record on April 14.

Based in Buffalo, New York, Life Storage operates more than 1,100 self-storage facilities in 36 states. Its portfolio of owned and managed facilities comprises more than 81 million square feet.

National Storage Affiliates Trust (NSAT)

Core FFO per share at NSAT was $0.68 during the first quarter, a 38.8% year-over-year increase. Net income was $44.8 million, a 62.1% increase compared to the same period in 2021.

NSAT reported diluted earnings per share of $0.24. Same-store NOI was up 22.2%, driven primarily by an 16.6% increase in same-store revenue and partially offset by a 3.1% increase in same-store operating expenses.

As of March 31, same-store occupancy was 94.8%, an increase of 140 basis points from a year ago. Average annualized rental revenue per occupied square foot for same-store facilities was $14.10 during the quarter compared to $12.43 in 2021.

NSAT acquired 12 properties for $92.9 million, adding approximately 700,000 rentable square feet and 5,000 units to the company portfolio.

On Feb. 24, the company declared a quarterly dividend of $0.50 per common share, which was up from $0.45 the previous quarter. It was paid on March 31 to holders of record on March 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 1,061 storage facilities in 42 states and Puerto Rico. Its portfolio comprises approximately 68.4 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 15.8%, or $102.1 million, over the same quarter in 2021, primarily due to higher realized annual rent per available square foot. Operations costs for same-store facilities increased 3.6%, or $6.5 million, compared to the previous year. This was primarily attributed to a 19% ($2.5 million) increase in repairs and maintenance expenses, a 17.5% ($2.3 million) increase in centralized management costs and a 4.8% ($3.2 million) increase in property taxes. Operating costs were partially offset by a 23.1% ($3.4 million) decrease in marketing expenses.

FFO was $3.83 per diluted common share, compared to $3.08 for the same period of 2021, marking a 24.4% increase. NOI increased $167.3 million, which was driven by a $95.6 million increase in same-store facilities and a $71.7 million increase from other non-stabilized stores.

During the quarter, Public Storage acquired 10 facilities across eight states for $127.7 million. The properties, which comprise 800,000 net rentable square feet, include three in Texas and one each in Arizona, Indiana, Maryland, Minnesota, North Carolina, Nevada and Pennsylvania. The company also completed various expansion projects, adding 100,000 net rentable square feet to its portfolio for $19.4 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 June 30 to shareholders of record as of June 15.

Based in Glendale, California, Public Storage has interests in 2,797 self-storage facilities in 39 states, with approximately 199 million net rentable square feet.

Shurgard Self Storage

Shurgard Self Storage Europe SARL, the European affiliate of Public Storage, which owns a 35% interest, also released its first-quarter 2022 earnings. Highlights include operating-revenue growth at constant exchange rate (CER) of 12.1%. Same-store revenue grew 9% using CER. All stores’ NOI increased 16.1%. Same-store NOI margin grew 2.1% to 59.4%. Adjusted earnings on the European Public Real Estate Association Index were €27.7 million for the quarter, up 8.6% using CER.

Of the seven European markets in which Shurgard operates, the United Kingdom showed the largest same-store, year-over-year revenue gain at 14.4% using CER. Denmark was second at 10.1%, followed by Belgium at 10%. Same-store locations in Sweden, France and the Netherlands performed the weakest, with revenue up from 7.1% to 7.3%.

Shurgard has six new development projects scheduled to open this year and another seven slated for 2023, along with several expansions. Spread across France, Germany, the Netherlands and the U.K., the projects will add approximately 72,646 square meters to the company’s portfolio.

Shurgard Self Storage SA owns or operates 256 facilities comprising 1.3 million net rentable square meters in Belgium, Denmark, France, Germany, The Netherlands, Sweden and the United Kingdom.

CubeSmart, CubeSmart Reports First Quarter 2022 Results
Extra Space Storage, Extra Space Storage Inc. Reports 2022 First Quarter Results
Life Storage, Life Storage Inc. Reports First Quarter 2022 Results
National Storage Affiliates Trust, National Storage Affiliates Trust Reports First Quarter 2022 Results
Public Storage, Public Storage Reports Results for the Three Months Ended March 31, 2022

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