Market Overview

Sovran Self Storage Reports Third Quarter Results; Achieves Same Store Revenue Growth of 8%, Acquires Ten Properties, Raises Guidance

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BUFFALO, N.Y.--(BUSINESS WIRE)--

Sovran Self Storage, Inc. (NYSE: SSS), (www.unclebobs.com/company) a self storage real estate investment trust (REIT), reported operating results for the quarter ended September 30, 2012.

Uncle Bob's Self Storage recently purchased this self storage facility in Chicago, IL. (Photo: Busin ...

Uncle Bob's Self Storage recently purchased this self storage facility in Chicago, IL. (Photo: Business Wire)

Net income available to common shareholders for the third quarter of 2012 was $18.8 million or $0.63 per fully diluted share. For the same period in 2011, net income available to common shareholders was $2.3 million, or $0.08 per fully diluted common share. The 2012 results include a gain on sale of assets of $4.5 million, and the 2011 results were impacted by refinancing costs further described below.

Funds from operations (FFO) for the quarter were $0.85 per fully diluted common share compared to $0.41 for the same period last year. The Company incurred net acquisition costs of $1.1 million in connection with the properties it acquired during the quarter as compared to $3.0 million in the third quarter of 2011. Further, the Company incurred costs of $5.6 million in connection with a debt refinancing transaction in August, 2011. Absent these acquisition and financing costs, FFO per share was $0.88 and $0.72 for the third quarter of 2012 and 2011, respectively.

Stronger occupancy, lower operating costs and the reduced use of move-in incentives contributed to the increase in FFO for the third quarter of 2012.

David Rogers, the Company's Chief Executive Officer, commented, “We enjoyed a great summer season. Our web based marketing platform is driving high levels of sales inquiries, our revenue management system is driving strong occupancy and our call center reps and store personnel are taking great care of our customers.”

As previously announced, the Company acquired ten premium self storage facilities during the quarter, and sold 17 of its older properties in Texas (12), Michigan (4), and Maryland (1).

With regard to Hurricane Sandy, the Company reports that every employee in the affected areas has been accounted for. Further, all 68 stores - save two - were open for business as of 12:00 p.m. EDT this afternoon, although 17 remain without power. Most damage reports have been minor, with only one store reporting widespread issues.

OPERATIONS:

Total revenues increased 18.6% over last year's third quarter, while property operating costs increased 9.3%, resulting in an NOI (3) increase of 23.6%. Overall occupancy averaged 88.1% for the period and rental rates averaged $10.79 per sq. ft.

Revenues for the 334 stores wholly owned by the Company for the entire quarter of each year increased 8.0% from those of the third quarter of 2011, the result of an increase in average occupancy from 81.5% to 88.2%, and strong growth in other revenues, primarily insurance commissions.

Continuing decreases in utility costs, credit card fees and yellow page advertising, offset by modest increases in curb appeal expenses and personnel costs, contributed to an overall reduction in same store operating costs of 1.0%.

Consequently, same store net operating income increased 13.1% this period over the third quarter of 2011.

General and administrative expenses grew by approximately $1.5 million over the same period in 2011, primarily due to increased internet advertising, personnel and income taxes.

During the third quarter of 2012, the stores with the strongest impact on net operating income include those in Texas, North Carolina, Georgia and Florida.

PROPERTIES:

The Company acquired ten properties during the quarter – all in its existing markets. The properties were acquired at a cost of $63.2 million and added approximately 835,600 net rentable square feet of storage space to the portfolio. Five stores were acquired in or near Atlanta, GA; three were acquired in the Jacksonville, FL market; and one each was purchased in Chicago, IL and Raleigh, NC.

“We continue to upgrade the quality of the assets in our portfolio”, commented Rogers. “We've added some high quality stores in markets that are important to us, rebranded them as Uncle Bob's, and are gaining market share as a result.”

During the quarter, the Company sold three properties in Dallas, TX; nine in Houston, TX; four in Michigan and one in Maryland for total net proceeds of $47.7 million resulting in a gain of approx. $4.5 million.

CAPITAL TRANSACTIONS:

The Company did not enter into any significant debt origination or repayment agreements during the quarter. A table detailing outstanding maturities and interest rates is shown as Exhibit B.

Illustrated below are key financial ratios at September 30, 2012:    
 

- Debt to Enterprise Value (at $57.85/share)

25.5%

- Debt to Book Cost of Storage Facilities

36.4%

- Debt to EBITDA Ratio

4.5x

- Debt Service Coverage

4.0x

 

At September 30, 2012, the Company had approximately $5.4 million of cash on hand, and $149 million available on its line of credit (without considering the additional $75 million available under the expansion feature).

On September 14, 2011, the Company announced an “at the market” equity issuance program. During the third quarter of 2012, the Company issued 1,004,934 shares pursuant to this program at an average price per share of $56.95, netting $56.1 million after expenses. The proceeds were used to repay a portion of the Company's outstanding line of credit balance.

YEAR 2012 EARNINGS GUIDANCE:

Management is encouraged by greater customer traffic and resiliency in most markets. The following assumptions covering operations have been utilized in formulating guidance for the balance of 2012:

   

Same Store

Projected Increases Over 2011

4Q 2012

   

Full year 2012

 

Revenue

 

7.5 – 8.5%

5.5 – 6.5%

 

Operating Cost (excluding property taxes)

 

1.5 – 2.5%

0.0 – 1.0%

Property Taxes

 

10.0 – 13.0%

3.5 – 4.5%

Total Operating Expenses

 

3.5 – 5.0%

0.5 – 2.0%

 

Net Operating Income

 

8.0 – 10.0%

9.0 – 10.0%

 

The Company intends to spend up to $23 million in 2012 on its expansion and enhancement program. It has also budgeted $14 million to provide for recurring capitalized expenditures including roofing, paving, and office renovations.

Fourth quarter 2012 purchases and dispositions of properties are not considered in providing guidance inasmuch as they will not have a significant impact on the balance of this year's results. Acquisition costs relating to any purchases that may be made in the remaining months of 2012 are not included in core guidance.

General and administrative expenses are expected to increase to $31 - $32 million in 2012 (exclusive of acquisition related costs) due to the need for additional personnel required for recent acquisitions, higher incentive compensation, income taxes on its taxable REIT subsidiaries, and the Company's plans to continue expanding its internet marketing presence and revenue management programs.

At September 30, 2012, all but $26 million of the Company's debt is either fixed rate or covered by rate swap contracts that essentially fix the rate. Subsequent borrowings that may occur will be pursuant to the Company's Line of Credit agreement at a floating rate of LIBOR plus 2.0%.

At September 30, 2012, the Company had 30.4 million shares of common stock outstanding and 0.20 million Operating Partnership Units outstanding. The issuance of 1.0 million shares in the third quarter (primarily in September) will have a short term dilutive impact on the Company's EPS and FFO per share results.

As a result of the above assumptions, management expects funds from operations (excluding acquisition costs) for the full year 2012 to be approximately $3.25 to $3.27 per share, and between $0.80 and $0.82 per share for the fourth quarter of 2012.

FORWARD LOOKING STATEMENTS:

When used within this news release, the words “intends,” “believes,” “expects,” “anticipates,” and similar expressions are intended to identify “forward looking statements” within the meaning of that term in Section 27A of the Securities Act of 1933, and in Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the Company to be materially different from those expressed or implied by such forward looking statements. Such factors include, but are not limited to, the effect of competition from new self storage facilities, which could cause rents and occupancy rates to decline; the Company's ability to evaluate, finance and integrate acquired businesses into the Company's existing business and operations; the Company's existing indebtedness may mature in an unfavorable credit environment, preventing refinancing or forcing refinancing of the indebtedness on terms that are not as favorable as the existing terms; interest rates may fluctuate, impacting costs associated with the Company's outstanding floating rate debt; the Company's ability to comply with debt covenants; the future ratings on the Company's debt instruments; the regional concentration of the Company's business may subject it to economic downturns in the states of Florida and Texas; the Company's ability to effectively compete in the industries in which it does business; the Company's reliance on its call center; the Company's cash flow may be insufficient to meet required payments of principal, interest and dividends; and tax law changes which may change the taxability of future income.

CONFERENCE CALL:

Sovran Self Storage will hold its Third Quarter Earnings Release Conference Call at 9:00 a.m. Eastern Time on Thursday, November 1, 2012. To access the conference call, dial 877.407.8033 (domestic), or 201.689.8033 (international). Management will accept questions from registered financial analysts after prepared remarks; all others are encouraged to listen to the call via webcast by accessing “events and conference calls” under the investor relations tab at www.unclebobs.com/company/.

The webcast will be archived for a period of 90 days; a telephone replay will also be available for 72 hours by calling 877.660.6853 and entering pass codes 286/400674.

Sovran Self Storage, Inc. is a self-administered and self-managed equity REIT that is in the business of acquiring and managing self storage facilities. The Company operates 443 self storage facilities in 25 states under the name “Uncle Bob's Self Storage”®. For more information visit www.unclebobs.com, like us on Facebook, or follow us on Twitter.

       
SOVRAN SELF STORAGE, INC.
BALANCE SHEET DATA
(unaudited)
 
September 30, December 31,
(dollars in thousands) 2012     2011
Assets
Investment in storage facilities:
Land $ 283,363 $ 263,407
Building, equipment and construction in progress   1,379,550     1,275,188  
1,662,913 1,538,595
Less: accumulated depreciation   (319,941 )   (292,722 )
Investment in storage facilities, net 1,342,972 1,245,873
Cash and cash equivalents 5,419 7,321
Accounts receivable 3,272 2,938
Receivable from joint venture 676 589
Investment in joint venture 34,524 31,939
Prepaid expenses 4,975 3,939
Intangible asset - in-place customer leases (net of accumulated
amortization of $9,819 in 2012 and $7,019 in 2011) 1,651 2,523
Other assets 3,859 4,850
Net assets of discontinued operations   -     43,702  
Total Assets $ 1,397,348   $ 1,343,674  
 
Liabilities
Line of credit $ 26,000 $ 46,000
Term notes 575,000 575,000
Accounts payable and accrued liabilities 29,797 31,414
Deferred revenue 6,381 6,084
Fair value of interest rate swap agreements 16,493 10,748
Mortgages payable   4,295     4,423  
Total Liabilities 657,966 673,669
 
Noncontrolling redeemable Operating Partnership Units at redemption value 11,811 14,466
 
Equity
Common stock 316 301
Additional paid-in capital 942,327 862,467
Accumulated deficit (171,673 ) (169,799 )
Accumulated other comprehensive loss (16,224 ) (10,255 )
Treasury stock at cost   (27,175 )   (27,175 )
Total Shareholders' Equity   727,571     655,539  
Total Liabilities and Equity $ 1,397,348   $ 1,343,674  
 

       
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
July 1, 2012 July 1, 2011
to to
(dollars in thousands, except share data) September 30, 2012     September 30, 2011
 
Revenues
Rental income $ 57,574 $ 48,273
Other operating income 3,291 2,506
Management fee income 909 643
Acquisition fee income   -     675  
Total operating revenues 61,774 52,097
 
Expenses
Property operations and maintenance 14,319 13,275
Real estate taxes 5,629 4,976
General and administrative 8,172 6,637
Acquisition related costs 1,075 2,913
Depreciation and amortization 9,449 8,300
Amortization of in-place customer leases   978     285  
Total operating expenses   39,622     36,386  
 
Income from operations 22,152 15,711
 
Other income (expense)
Interest expense (A) (8,350 ) (13,760 )
Interest income - 5
Equity in income (losses) of joint ventures   335     (512 )
 
Income from continuing operations 14,137 1,444
Income from discontinued operations (including gain on sale of $4.5 million in 2012)   4,821     922  
Net income 18,958 2,366
Net income attributable to noncontrolling interests   (151 )   (27 )
Net income attributable to common shareholders $ 18,807   $ 2,339  
 
Earnings per common share attributable to common shareholders - basic
Continuing operations $ 0.48 $ 0.05
Discontinued operations $ 0.16   $ 0.03  
Earnings per share - basic $ 0.64   $ 0.08  
 
Earnings per common share attributable to common shareholders - diluted
Continuing operations $ 0.47 $ 0.05
Discontinued operations $ 0.16   $ 0.03  
Earnings per share - diluted $ 0.63   $ 0.08  
 
Common shares used in basic
earnings per share calculation 29,474,866 27,593,338
 
Common shares used in diluted
earnings per share calculation 29,624,311 27,634,029
 
Dividends declared per common share $ 0.4500   $ 0.4500  
 
 
(A) Interest expense for the three months ending September 30 consists of the following
Interest expense $ 8,141 $ 7,937
Amortization of deferred financing fees 209 250
Write-of of unamortized financing fees related to
$150 million term note repaid 2011 - 88
Interest rate swap termination payments   -     5,485  
Total interest expense $ 8,350   $ 13,760  
 

       
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
January 1, 2012 January 1, 2011
to to
(dollars in thousands, except share data) September 30, 2012     September 30, 2011
 
Revenues
Rental income $ 161,857 $ 139,402
Other operating income 9,288 6,743
Management fee income 2,582 1,346
Acquisition fee income   148     675  
Total operating revenues 173,875 148,166
 
Expenses
Property operations and maintenance 40,993 38,410
Real estate taxes 16,635 14,532
General and administrative 23,707 18,344
Acquisition related costs 2,382 3,048
Depreciation and amortization 27,661 24,597
Amortization of in-place customer leases   2,800     567  
Total operating expenses   114,178     99,498  
 
Income from operations 59,697 48,668
 
Other income (expense)
Interest expense (B) (24,914 ) (29,739 )
Interest income 3 31
Equity in income (losses) of joint ventures   608     (408 )
 
Income from continuing operations 35,394 18,552
Income from discontinued operations (including gain on sale of $4.5 million in 2012)   6,693     2,595  
Net income 42,087 21,147
Net income attributable to noncontrolling interests   (421 )   (811 )
Net income attributable to common shareholders $ 41,666   $ 20,336  
 
Earnings per common share attributable to common shareholders - basic
Continuing operations $ 1.20 $ 0.64
Discontinued operations $ 0.23   $ 0.10  
Earnings per share - basic $ 1.43   $ 0.74  
 
Earnings per common share attributable to common shareholders - diluted
Continuing operations $ 1.20 $ 0.64
Discontinued operations $ 0.23   $ 0.10  
Earnings per share - diluted $ 1.43   $ 0.74  
 
Common shares used in basic
earnings per share calculation 29,047,998 27,563,536
 
Common shares used in diluted
earnings per share calculation 29,167,681 27,607,567
 
Dividends declared per common share $ 1.3500   $ 1.3500  
 
 
(B) Interest expense for the nine months ending September 30 consists of the following
Interest expense $ 24,287 $ 23,323
Amortization of deferred financing fees 627 $ 843
Write-of of unamortized financing fees related to
$150 million term note repaid 2011 - $ 88
Interest rate swap termination payments   -     5,485  
Total interest expense $ 24,914   $ 29,739  
 

 
COMPUTATION OF FUNDS FROM OPERATIONS (FFO) (1) - (unaudited)
       
July 1, 2012 July 1, 2011
to to
(dollars in thousands, except share data) September 30, 2012     September 30, 2011
 
Net income attributable to common shareholders $ 18,807 $ 2,339
Net income attributable to noncontrolling interests 151 27
Depreciation of real estate and amortization of intangible
assets exclusive of deferred financing fees 10,329 8,585
Depreciation of real estate included in discontinued operations 84 355
Depreciation and amortization from unconsolidated joint ventures 386 240
Gain on sale of real estate (4,498 )
Funds from operations allocable to noncontrolling
interest in Operating Partnership   (201 )   (133 )
Funds from operations available to common shareholders   25,058     11,413  
FFO per share - diluted $ 0.85 $ 0.41
 
Non-recurring Adjustments to FFO
Acquisition costs expensed 1,075 2,913
Company's share of acquisition costs expensed by Sovran HHF Storage Holdings II - 734
Interest rate swap termination payments - 5,485
Write-off of unamortized financing fees related to debt payoff - 88
Acquisition fee income from Sovran HHF Storage Holdings II - (675 )
Funds from operations resulting from non-recurring items allocable to noncontrolling
interest in Operating Partnership   (9 )   (103 )
Adjusted funds from operations available to common shareholders   26,124     19,855  
Adjusted FFO per share - diluted $ 0.88 $ 0.72
 
Common shares - diluted 29,624,311 27,634,029
 
 
January 1, 2012 January 1, 2011
to to
(dollars in thousands, except share data) September 30, 2012     September 30, 2011
 
Net income attributable to common shareholders $ 41,666 $ 20,336
Net income attributable to noncontrolling interests 421 811
Depreciation of real estate and amortization of intangible
assets exclusive of deferred financing fees 30,178 25,164
Depreciation of real estate included in discontinued operations 787 1,058
Depreciation and amortization from unconsolidated joint ventures 1,205 636
Gain on sale of real estate (4,498 ) -
Funds from operations allocable to noncontrolling
interest in Operating Partnership (721 ) (560 )
Funds from operations allocable to noncontrolling
interest in consolidated joint ventures   -     (567 )
Funds from operations available to common shareholders   69,038     46,878  
FFO per share - diluted $ 2.37 $ 1.70
 
Non-recurring Adjustments to FFO
Acquisition costs expensed 2,382 3,048
Company's share of acquisition costs expensed by Sovran HHF Storage Holdings II 161 734
Interest rate swap termination payments - 5,485
Write-off of unamortized financing fees related to debt payoff - 88
Acquisition fee income from Sovran HHF Storage Holdings II (148 ) (675 )
Funds from operations resulting from non-recurring items allocable to noncontrolling
interest in Operating Partnership   (22 )   (105 )
Adjusted funds from operations available to common shareholders   71,411     55,453  
Adjusted FFO per share - diluted $ 2.45 $ 2.01
 
Common shares - diluted 29,167,681 27,607,567
 

(1) We believe that Funds from Operations (“FFO”) provides relevant and meaningful information about our operating performance that is necessary, along with net earnings and cash flows, for an understanding of our operating results. FFO adds back historical cost depreciation, which assumes the value of real estate assets diminishes predictably in the future. In fact, real estate asset values increase or decrease with market conditions. Consequently, we believe FFO is a useful supplemental measure in evaluating our operating performance by disregarding (or adding back) historical cost depreciation.

Funds from operations is defined by the National Association of Real Estate Investment Trusts, Inc. (“NAREIT”) as net income available to common shareholders computed in accordance with generally accepted accounting principles (“GAAP”), excluding gains or losses on sales of properties, plus impairment of real estate assets, plus depreciation and amortization and after adjustments to record unconsolidated partnerships and joint ventures on the same basis. We believe that to further understand our performance, FFO should be compared with our reported net income and cash flows in accordance with GAAP, as presented in our consolidated financial statements.

Our computation of FFO may not be comparable to FFO reported by other REITs or real estate companies that do not define the term in accordance with the current NAREIT definition or that interpret the current NAREIT definition differently. FFO does not represent cash generated from operating activities determined in accordance with GAAP, and should not be considered as an alternative to net income (determined in accordance with GAAP) as an indication of our performance, as an alternative to net cash flows from operating activities (determined in accordance with GAAP) as a measure of our liquidity, or as an indicator of our ability to make cash distributions.

               
QUARTERLY SAME STORE DATA (2) * July 1, 2012 July 1, 2011
to to Percentage
(dollars in thousands) September 30, 2012     September 30, 2011 Change     Change
 
Revenues:
Rental income $ 50,866 $ 47,249 $ 3,617 7.7 %
Tenant insurance commissions 1,449 1,091 358 32.8 %
Other operating income   1,183   1,174   9  

0.8

%

Total operating revenues 53,498 49,514 3,984 8.0 %
 
Expenses:
Payroll and benefits 5,179 5,007 172 3.4 %
Real estate taxes 4,926 4,851 75 1.5 %
Utilities 2,475 2,624 (149 ) -5.7 %
Repairs and maintenance 1,851 1,735 116 6.7 %
Office and other operating expense 1,973 2,034 (61 ) -3.0 %
Insurance 756 746 10 1.3 %
Advertising & yellow pages   374   716   (342 )

-47.8

%

Total operating expenses   17,534   17,713   (179 )

-1.0

%

 
Net operating income (3) $ 35,964 $ 31,801 $ 4,163  

13.1

%

 
 
QTD Same store move ins 38,278 37,236 1,042 2.8 %
 
QTD Same store move outs 39,943 37,261 2,682 7.2 %
 

(2) Includes the 334 stores owned and/or managed by the Company for the entire periods presented that are consolidated in our financial statements. Does not include unconsolidated joint ventures or other stores managed by the Company or the 17 stores sold in 2012.

(3) Net operating income or "NOI" is a non-GAAP (generally accepted accounting principles) financial measure that we define as total continuing revenues less continuing property operating expenses. NOI also can be calculated by adding back to net income: interest expense, impairment and casualty losses, depreciation and amortization expense, acquisition related costs, general and administrative expense, and deducting from net income: income from discontinued operations, interest income, gain on sale of real estate, and equity in income of joint ventures. We believe that NOI is a meaningful measure of operating performance, because we utilize NOI in making decisions with respect to capital allocations, in determining current property values, and comparing period-to-period and market-to-market property operating results. NOI should be considered in addition to, but not as a substitute for, other measures of financial performance reported in accordance with GAAP, such as total revenues, operating income and net income.

* See exhibit A for supplemental quarterly same store data.

               
YEAR TO DATE SAME STORE DATA (4) January 1, 2012 January 1, 2011
to to Percentage
(dollars in thousands) September 30, 2012     September 30, 2011 Change     Change
 
Revenues:
Rental income $ 145,064 $ 138,047 $ 7,017 5.1 %
Tenant insurance commissions 4,009 2,911 1,098 37.7 %
Other operating income   3,507   3,324   183  

5.5

%

Total operating revenues 152,580 144,282 8,298 5.8 %
 
Expenses:
Payroll and benefits 15,539 15,189 350 2.3 %
Real estate taxes 14,681 14,342 339 2.4 %
Utilities 6,417 6,838 (421 ) -6.2 %
Repairs and maintenance 5,454 5,388 66 1.2 %
Office and other operating expense 5,630 5,925 (295 ) -5.0 %
Insurance 2,253 2,234 19 0.9 %
Advertising & yellow pages   1,300   2,244   (944 )

-42.1

%

Total operating expenses   51,274   52,160   (886 )

-1.7

%

 
Net operating income (3) $ 101,306 $ 92,122 $ 9,184  

10.0

%

 
 
YTD Same store move ins 115,587 104,408 11,179 10.7 %
 
YTD Same store move outs 103,098 100,798 2,300 2.3 %
 
(4) Includes the 333 stores owned and/or managed by the Company for the entire periods presented that are consolidated in our financial statements. Does not include unconsolidated joint ventures or other stores managed by the Company or the 17 stores sold in 2012.
           
OTHER DATA

Same Store (2)

All Stores (4)

2012

   

2011

2012

2011

 
Weighted average quarterly occupancy 88.2 % 81.5 % 88.1 % 81.2 %
 
Occupancy at September 30 87.8 % 81.3 % 87.8 % 81.0 %
 
Rent per occupied square foot $ 10.61 $ 10.76 $ 10.79 $ 10.71
 
(4) Does not include unconsolidated joint venture stores managed by the Company
 
   

Investment in Storage Facilities:

The following summarizes activity in storage facilities during the nine months ended September 30, 2012:
 
Beginning balance $ 1,538,595
Property acquisitions 104,257
Improvements and equipment additions:
Expansions 14,197
Roofing, paving, and equipment:
Stabilized stores 8,994
Recently acquired stores 1,180
Change in construction in progress (Total CIP $11.2 million) (3,192 )
Dispositions and Impairments   (1,118 )
Storage facilities at cost at period end $ 1,662,913  
 
       

Comparison of Selected G&A Costs

Quarter Ended Year-to-Date
September 30, 2012     September 30, 2011 September 30, 2012     September 30, 2011
 
Management and administrative salaries and benefits 3,995 3,034 11,385 8,547
Internet advertising & marketing 1,205 754 3,423 2,053
Training 265 456 891 889
Call center 407 342 1,174 1,010
Uncle Bob's Management costs 68 121 315 314
Income taxes 632 411 1,596 1,334
Other administrative expenses (5)   1,600   1,519   4,923   4,197
$ 8,172 $ 6,637 $ 23,707 $ 18,344
 
(5) Other administrative expenses include professional fees, office rent, travel expense, investor relations and miscellaneous other expenses.
 
       
September 30, 2012 September 30, 2011
 
Common shares outstanding 30,432,720 27,834,616
Operating Partnership Units outstanding 204,163 339,025
 

 
Exhibit A
                                                             
Sovran Self Storage, Inc.
 
Same Store Performance Summary
Three Months Ended September 30, 2012
(unaudited)
 
 
Avg Quarterly
Avg Qtrly

Occupancy for the

Revenue for the

Expenses for the

NOI for the

Rent per

Three Months Ended

Three Months Ended

Three Months Ended

Three Months Ended

Square Occupied September 30,

September 30,

September 30,

September 30,

State     Stores    

Feet

   

Square Foot

    2012     2011 2012     2011     % Change 2012     2011     % Change 2012     2011     % Change
 
Alabama 22 1,608 $ 8.10 84.0 % 78.7 % $ 2,983 $ 2,863 4.19 % $ 980 $ 999 -1.90 % $ 2,003 $ 1,864 7.46 %
Arizona 9 514 10.18 89.9 % 83.9 % 1,255 1,222 2.70 % 420 442 -4.98 % 835 780 7.05 %
Connecticut 5 301 17.33 90.6 % 85.3 % 1,214 1,122 8.20 % 358 370 -3.24 % 856 752 13.83 %
Florida 53 3,414 10.32 85.9 % 78.1 % 8,121 7,436 9.21 % 2,855 2,956 -3.42 % 5,266 4,480 17.54 %
Georgia 22 1,405 9.51 88.6 % 79.4 % 3,150 2,872 9.68 % 1,035 1,071 -3.36 % 2,115 1,801 17.43 %
Louisiana 14 867 10.63 89.4 % 83.5 % 2,173 2,025 7.31 % 661 645 2.48 % 1,512 1,380 9.57 %
Maine 2 113 12.86 89.3 % 82.6 % 340 303 12.21 % 105 92 14.13 % 235 211 11.37 %
Maryland 3 139 16.17 89.7 % 89.7 % 519 500 3.80 % 168 166 1.20 % 351 334 5.09 %
Massachusetts 12 656 13.29 90.1 % 83.6 % 2,085 1,943 7.31 % 635 649 -2.16 % 1,450 1,294 12.06 %
Mississippi 12 919 9.15 88.2 % 81.3 % 1,955 1,913 2.20 % 595 600 -0.83 % 1,360 1,313 3.58 %
Missouri 7 432 11.58 91.6 % 86.0 % 1,189 1,117 6.45 % 407 414 -1.69 % 782 703 11.24 %
New Hampshire 4 261 11.04 88.3 % 83.2 % 670 623 7.54 % 195 200 -2.50 % 475 423 12.29 %
New Jersey 1 97 9.92 63.8 % 46.9 % 157 153 2.61 % 85 75 13.33 % 72 78 -7.69 %
New York 28 1,675 13.94 87.5 % 87.4 % 5,336 5,053 5.60 % 1,617 1,561 3.59 % 3,719 3,492 6.50 %
North Carolina 18 1,037 9.29 88.7 % 72.4 % 2,247 1,927 16.61 % 721 732 -1.50 % 1,526 1,195 27.70 %
Ohio 17 1,137 9.38 89.1 % 84.9 % 2,483 2,311 7.44 % 765 783 -2.30 % 1,718 1,528 12.43 %
Pennsylvania 4 220 10.01 86.6 % 89.1 % 493 468 5.34 % 157 153 2.61 % 336 315 6.67 %
Rhode Island 4 190 12.54 82.3 % 83.2 % 546 484 12.81 % 196 189 3.70 % 350 295 18.64 %
South Carolina 8 431 10.04 88.6 % 83.7 % 1,024 981 4.38 % 350 378 -7.41 % 674 603 11.77 %
Tennessee 4 291 9.64 92.5 % 91.3 % 676 622 8.68 % 250 251 -0.40 % 426 371 14.82 %
Texas 69 4,959 10.57 91.1 % 82.7 % 12,429 11,277 10.22 % 4,267 4,251 0.38 % 8,162 7,026 16.17 %
Virginia 16 1,020 11.01 83.5 % 76.5 % 2,453 2,299 6.70 % 712 736 -3.26 % 1,741 1,563 11.39 %
                                                                         
Portfolio Total     334     21,686     $ 10.61     88.2 %     81.5 % $ 53,498     $ 49,514     8.05 % $ 17,534     $ 17,713     -1.01 % $ 35,964     $ 31,801     13.09 %
 
Dollars in thousands except for average quarterly rent per occupied square foot. Square feet in thousands.
334 wholly owned same stores.
 

                                       
Exhibit B
 
Sovran Self Storage, Inc.
 
Debt Maturity Schedule
September 30, 2012
(unaudited)
 
Current
Maturity Basis of Interest
(dollars in thousands)     Date     Rate     Rate (1)     2012     2013     2014     2015     2016     Thereafter     Total
 
Line of credit Aug-2016 Variable 2.22 % $ - $ - $ - $ - $ 26,000 $ - $ 26,000
 
Term note Sep-2013 Swapped to fixed 5.94 % - 20,000 - - - - 20,000
Term note Sep-2013 Fixed 6.26 % - 80,000 - - - - 80,000
Mortgage note Sep-2013 Fixed 6.76 % 8 896 - - - - 904
Mortgage note Mar-2014 Fixed 6.35 % 8 34 949 - - - 991
Term note Apr-2016 Fixed 6.38 % - - - - 150,000 - 150,000
Term note Aug-2018 Swapped to fixed 4.37 % - - - - - 125,000 125,000
Term note Aug-2018 Swapped to fixed 3.61 % - - - - - 100,000 100,000
Term note Aug-2021 Fixed 5.54 % - - - - - 100,000 100,000
Mortgage note May-2026 Fixed 5.99 % 28 119 126 134 142 1,851 2,400
                                     
$ 44 $ 101,049 $ 1,075 $ 134 $ 176,142 $ 326,851 $ 605,295
 
 
(1) Rate as of September 30, 2012 based on existing debt rating. Interest rates shown do not include amortization of financing fees and facility fees which are expected to be $1.2 million in 2012.

Photos/Multimedia Gallery Available: http://www.businesswire.com/cgi-bin/mmg.cgi?eid=50461130&lang=en

Sovran Self Storage, Inc.
Diane Piegza, Vice President of Corporate Communications
or
Andy Gregoire, Chief Financial Officer
716-633-1850



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