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Self-Storage Management Firms Report 4Q 2014 Financial Results

Several self-storage management companies have released operating results for the fourth quarter that ended Dec. 31. All showed improvements in same-store revenue over the previous year.

April 10, 2015

3 Min Read
Self-Storage Management Firms Report 4Q 2014 Financial Results

Update: 4/10/2015 – Storage Asset Management (SAM), a property-management and consulting firm, reported fourth-quarter results for the 45 properties it manages along the East Coast. The company increased same-store revenue by 7 percent and net operating income by 9.4 percent, according to a company press release. Occupancy at SAM’s same-store locations grew 2.1 percent from Dec. 31, 2013 to Dec. 31, 2014, and the company was able to hold expense growth at 1.4 percent.

SAM attributes its results to its staff, a company-wide focus on training, customized marketing and operating plans for each location, and an ability to build business-to-business relationships in the markets it serves, the release stated.

Founded in 2010 and based in York, Pa., SAM is a property-management and consulting company that oversees storage facilities and three UPS Stores.

2/5/2015 – Three self-storage management companies have released operating results for the fourth quarter that ended Dec. 31. All showed improvements in same-store revenue over the previous year.

Southeast Management Co., a third-party management and consulting company and owner of self-storage facilities in the Southeast, reported that same-store revenue increased 1.8 percent over the same period in 2013. The increase was 6.2 percent higher, along with occupancy gains of 2.6 percent, year to date, according to a press release. Net operating income also showed a year-over-year increase of 11.9 percent.

Self-storage property-management firm Absolute Storage Management (ASM), whose same-store property pool comprised 36 properties as of December, also reported increases in performance. To avoid inflating the results with lease-up properties, the analyzed list is comprised of stabilized self-storage facilities with complete prior-year data.

At the 36 properties, total income increased 9.5 percent in the fourth quarter and 9.3 percent year over year. The company said this was largely due to an overall increase across all income categories including rent, late charges, administrative fees and retail sales. Square-foot occupancy increased 4 percent from 2013 to 2014, a result of increased leasing activity and decreased turnover, according to the company. In addition, street rates increased 5 percent over last year’s results.

“We are very proud of our operations team for a very strong year,” said Michael Haugh, president. “Now, street-rate growth is accelerating in most markets as a result of stabilized occupancies. We are forecasting this to continue in 2015 as larger operators with high occupancy seek revenue growth from a source other than occupancy.”

Storage Investment Management Inc. (SIMI), a privately held self-storage management company, reported an average increase in same-storage sales of 7.22 percent at its 28 northeastern properties as compared to the same quarter 2013. Net operating income for the fourth quarter jumped 17.73 percent, according to company officials. SIMI attributes the surge to rent increases and steady occupancy.

Based in Virginia, Southeast Management has a regional office in North Carolina. The company manages and owns self-storage facilities in Florida, North and South Carolina, and Virginia.

Founded in 2002, ASM owns and manages self-storage facilities throughout the Southeast, operating more than 80 properties in 13 states. The company is actively seeking to add additional properties to its portfolio through traditional third-party management relationships and joint-venture/acquisition opportunities. Headquartered in Memphis, Tenn., it has regional offices in Atlanta; Charlotte, N.C.; and Jackson, Miss.

Headquartered in New York, SIMI is led by principals Charlie Fritts, president, and David Inman, chief operating officer, who have a combined 75 years of self-storage industry experience. The company manages facilities in Connecticut, Maine, Massachusetts, New Jersey, New York, Pennsylvania and Rhode Island.

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