February 27, 2023

6 Min Read
Self-Storage REITs Release Financial Results for Fourth-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 Dec. 31. In general, the companies indicated gains in funds from operations (FFO) and net operating income (NOI), with some minor declines in occupancy.

“We ended another great year of extraordinary growth, showcasing the strength of our operating platform to maximize cash flows,” said Christopher P. Marr, president and CEO of CubeSmart. “We are reaping the benefits of our efficiency initiatives, as we’ve managed our expense growth in the face of inflationary pressures. We continue to see good demand for the product and our platform is well-positioned to drive growth throughout 2023.”

Joe Margolis, CEO of Extra Space, expressed similar sentiments. “As we begin 2023, we have strong occupancy and healthy rental rates, and we are well-positioned for another year of solid same-store revenue growth in our need-based, recession-resilient sector.”


CubeSmart reported FFO per share of $0.67 during the fourth quarter of 2022, up from $0.58 a year prior. Same-store NOI at its 521 facilities grew 12.1% year over year. The company attributed this to a 9.5% increase in revenue and a 2.3% increase in operating expenses.

Same-store physical occupancy was 92.1% as of Dec. 31, down from 93.3% 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 90.3% at the end of the quarter.

CubeSmart didn’t acquire any self-storage properties during the quarter. At year-end, the company had two joint-venture projects under construction in New Jersey and New York to which it’s expected to contribute $57.3 million.

On Dec. 7, the company declared a dividend of $0.49 per common share, up from $0.43 the previous quarter. The dividend was paid on Jan. 17 to common shareholders of record on Jan. 3.

CubeSmart owns or manages 1,279 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 11.8% and 13.4%, respectively, compared to the same period in 2021. Core FFO, excluding adjustments for non-cash interest, was $2.09 per diluted share, a 9.4% increase over the previous year. Same-store occupancy was 94.2% as of Dec. 31 compared to 95.3% a year prior.

During the quarter, the company acquired six self-storage facilities for approximately $146.9 million. It also purchased four properties and completed one development project in conjunction with joint-venture partners for $82.1 million, to which it contributed $22.9 million.

Extra Space paid a quarterly dividend of $1.50 per common share, which was equal to the previous quarter. It was paid on Dec. 31 to common shareholders of record on Dec. 14.

Headquartered in Salt Lake City, Extra Space owns or operates 2,338 self-storage properties in 41 states and Washington, D.C. The company’s properties comprise approximately 1.6 million units and 176.1 million square feet of rentable space.

Life Storage Inc.

Same-store NOI at Life Storage increased 13.3% compared to 2021, while adjusted FFO was $1.69, compared to $1.41 a year ago. Net income attributable to common shareholders for the fourth quarter was $93.8 million, or $1.10 per fully diluted share. For the same period in 2021, those numbers were $74.1 million and $0.90, respectively.

Same-store revenue for the company’s 576 wholly owned, stabilized facilities increased 11.8% year over year, impacted by a 14.7% bump in rental rates. Overall occupancy as of Dec. 31 was 90.6%, down from 93% a year ago, with self-storage units renting for an average of $19.39 per square foot.

During the quarter, Life Storage acquired seven facilities for $142.4 million. The assets include six in Arizona and one in Minnesota. The company is under contract to acquire four properties in California and Illinois for $70.8 million.

The REIT approved a quarterly dividend of $1.20 per share, up from $1.08 the previous quarter. It was paid on Jan. 26 to shareholders of record on Jan. 13.

Based in Buffalo, New York, Life Storage operates more than 1,150 self-storage facilities in 37 states and Washington, D.C. Its portfolio of owned and managed facilities comprises more than 88.3 million square feet.

National Storage Affiliates Trust (NSAT)

Core FFO per share at NSAT was $0.71 during the fourth quarter, a 10.9% year-over-year increase. Net income was $50.4 million, a 17.4% increase compared to the same period in 2021.

NSAT reported diluted earnings per share of $0.31 compared to $0.25 a year ago. Same-store NOI was up 9.4%, driven primarily by an 7.4% increase in same-store revenue and partially offset by a 1.6% increase in same-store operating expenses.

As of Dec. 31, same-store occupancy was 90.5%, a decrease of 450 basis points from the year prior. Average annualized rental revenue per occupied square foot for same-store facilities was $15.44 during the quarter compared to $13.74 in 2021.

NSAT acquired two wholly owned self-storage properties for $39.9 million, adding approximately 196,000 rentable square feet and 1,800 units to the company portfolio.

On Nov. 9, the company declared a quarterly dividend of $0.55 per common share, which was equal to the previous quarter. It was paid on Dec. 30 to holders of record on Dec. 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 1,101 storage facilities in 42 states and Puerto Rico. Its portfolio comprises approximately 71.8 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 13%, or $94.4 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 4.1%, or $7.2 million, compared to the previous year. This was mainly attributed to increases in marketing expenses, property taxes and other operational costs.

FFO was $3.38 per diluted common share compared to $3.67 for the same period of 2021, marking a 7.9% decrease. NOI increased $137.7 million, which was driven by a $87.2 million increase in same-store facilities and a $50.5 million increase from other non-stabilized stores.

During the quarter, Public Storage acquired 30 self-storage facilities across five states for $228.6 million. Comprising 1.6 million rentable square feet, the properties include 26 in Florida and one each in Indiana, Kansas, Ohio and Utah. The company also completed various expansion projects, adding 500,000 net rentable square feet to its portfolio for $101.2 million.

The company reported a regular common quarterly dividend of $3 per common share, which was up from $2 the previous quarter. It also declared dividends with respect to various series of preferred shares. All the dividends are payable on March 30 to shareholders of record as of March 15.

Based in Glendale, California, Public Storage has interests in 2,869 self-storage facilities in 40 states, with approximately 204 million net rentable square feet. It holds a 35% interest in Shurgard Self Storage SA, which has 266 facilities in seven European countries, with approximately 15 million net rentable square feet.

CubeSmart, CubeSmart Reports 2022 Annual Results
Extra Space, Extra Space Storage Inc. Reports 2022 Fourth Quarter and Year-End Results
Life Storage, Life Storage Inc. Reports Fourth Quarter and Full Year 2022 Results
National Storage Affiliates Trust, National Storage Affiliates Trust Reports Fourth Quarter and Full Year 2022 Results
Public Storage, Public Storage Reports Results for the Fourth Quarter and Year Ended December 31, 2022

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