Market Overview

Sovran Self Storage Reports Third Quarter Results; Adjusted FFO per Share Increases 12.8%, Acquired Eleven Properties

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

Sovran Self Storage, Inc. (NYSE: SSS), a self storage real estate investment trust (REIT), reported operating results for the quarter ended September 30, 2015.

Third Quarter 2015 Highlights:

  • Achieved adjusted funds from operations ("FFO") per fully diluted common share of $1.32, representing a 12.8% increase over the same period last year.
  • Increased same store revenue by 6.5% and net operating income ("NOI") by 8.4% as compared to the third quarter of 2014.
  • Grew same store average occupancy for the quarter by 80 basis points to 92.0% compared to the same period in 2014. Same store occupancy at September 30, 2015, was 91.4%; a full 100 basis points over September 30, 2014.
  • Attained a record high occupancy of 93.1% during the month of July.
  • Acquired eleven self storage facilities for approximately $66 million.
  • Paid a quarterly dividend of $0.85 per share of common stock.

Net income available to common shareholders for the third quarter of 2015 was $31.5 million or $0.88 per fully diluted common share. For the same period in 2014, net income available to common shareholders was $25.6 million or $0.77 per fully diluted common share.

Funds from operations (FFO) for the quarter were $1.29 per fully diluted common share compared to $1.12 for the same period last year. Absent $1.0 million of acquisition costs incurred in the third quarter of 2015 and $1.7 million of acquisition costs and straight-line rent adjustments in the third quarter of 2014, adjusted FFO per share was $1.32 and $1.17 for the third quarter of 2015 and 2014, respectively.

Increased occupancy and rental rates were the primary contributors to the Company's strong FFO growth during the quarter.

OPERATIONS:

Total revenues increased 11.9% over last year's third quarter while operating costs increased 9.6%, resulting in an NOI (4) increase of 13.1%. Overall occupancy averaged 91.5% for the period, and rental rates averaged $12.79 per sq. ft.

Revenues for the 399 stores wholly owned by the Company since January 1, 2014 increased 6.5% from those of the third quarter of 2014, the result of an 80 basis point increase in average occupancy, a 5.1% increase in rental rates, increases in tenant insurance administrative fees, and other income.

Same store operating expenses increased 2.6% for the third quarter of 2015 compared to the prior year period, primarily the result of increased personnel costs, real estate taxes and internet marketing expenses.

Consequently, same store net operating income increased 8.4% this period over the third quarter of 2014.

General and administrative expenses increased by approximately $0.7 million over the same period in 2014, primarily due to increases in personnel costs associated with operating 36 more stores during the quarter than at this time last year, legal fees and income taxes on its taxable REIT subsidiary. Beginning with the first quarter of 2015, the company reclassified internet marketing costs from general and administrative expenses to property operations expense for all periods presented so as to be consistent with industry practices.

During the third quarter of 2015, the Company experienced same store revenue growth in 23 of the 24 states in the same store pool. Overall, the stores with the strongest revenue impact include those in Texas, Florida, New York and Georgia.

PROPERTIES:

During the quarter, the Company acquired eleven storage facilities at a cost of approximately $66 million. Seven of the stores are in established Company markets in North and South Carolina. The other four are in Syracuse, NY where the Company now operates a total of eight stores.

At September 30, 2015, the Company was in contract to acquire an additional nine stores for total consideration of $67 million. These pending acquisitions are subject to further due diligence and closing conditions; therefore no assurance can be given that these properties will be purchased according to the terms described.

CAPITAL TRANSACTIONS:

Illustrated below are key financial ratios at September 30, 2015:

  • Debt to Enterprise Value (at $94.30/share) 20.2%
  • Debt to Book Cost of Storage Facilities 35.0%
  • Debt to EBITDA Ratio 3.9x
  • Debt Service Coverage 6.1x

At September 30, 2015, the Company had approximately $6.1 million of cash on hand, and $186 million available on its line of credit.

During the quarter, the Company issued 300,211 shares pursuant to its "At The Market" (ATM) program at an average price of $96.13 per share. The net proceeds of $28.5 million were used to acquire the aforementioned properties. In July, the Company issued 32,690 shares at a price of $90.60 through its Dividend Reinvestment Plan.

COMMON STOCK DIVIDEND:

Subsequent to quarter-end, the Company's Board of Directors approved a quarterly dividend of $0.85 per share or $3.40 annualized.

YEAR 2015 EARNINGS GUIDANCE:

Management is encouraged by its occupancy gains and its ability to attain significant rental rate growth in most markets. The following assumptions covering operations have been utilized in formulating guidance for the fourth quarter and full year 2015:

                           
Same Store

Projected Increases Over 2014

4Q 2015

             

Full Year 2015

Revenue 6.25 – 6.75% 5.75 – 6.75%
Operating Costs (excluding property taxes) 2.0 – 3.0% 2.0 – 3.0%
Property Taxes

14.0 – 15.0%*

5.0 – 6.0%

Total Operating Expenses 5.0 – 6.0% 3.0 – 4.0%
Net Operating Income 6.5 – 7.5% 7.0 – 8.0%
 

*The Company recorded a significant reduction in property tax expense in 4Q 2014 as a result of several successful protests. Such benefits are not expected in 2015, and as a result, the estimated property tax increase for 4Q, while expected, appears unusual.

The Houston market comprises approximately 11% of the 2015 forecasted NOI of the Company's 453 wholly owned stores, and is expected to perform at least as well as the overall portfolio. Forecasts for the 40 same store pool of properties in the Company's Houston market include revenue growth of 6.0% – 6.5%, operating expense increases of 3.0% – 4.0% (inclusive of a 5% projected increase in property taxes), and NOI growth of between 7.0% and 8.0%.

The Company intends to spend up to $25 million on its expansion and enhancement program. It has also budgeted $19 million to provide for recurring capitalized expenditures including roofing, paving, and office renovations.

The Company has assumed no impact from acquisitions for the remainder of 2015. Approximately $275 million of acquisitions have been completed through September 30, 2015. Per share adjusted FFO guidance is projected after adding back third party acquisition costs. Any purchases of additional properties are expected to be funded via proceeds from the Company's ATM program and draws on its line of credit which carries an interest rate of LIBOR plus 1.30%.

Annual general and administrative expenses, excluding internet marketing costs, are expected to be approximately $38 million. The increase over the prior year is primarily due to the need for additional personnel required for recent acquisitions, income taxes on its taxable REIT subsidiaries, and the Company's plans to continue expanding its Corporate Alliance and third party management programs.

At September 30, 2015, the Company had 36.2 million shares of common stock outstanding and 0.2 million Operating Partnership Units outstanding.

As a result of the above assumptions, management expects adjusted funds from operations for the full year 2015 to be approximately $4.91 to $4.93 per share, and between $1.26 and $1.28 per share for the fourth quarter of 2015.

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, October 29, 2015. 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 "news and events" under the investor relations tab at www.unclebobs.com/company/.

The webcast will be archived for 90 days; a telephone replay will also be available for 72 hours by calling 877.660.6853 and entering conference ID 13621470.

ABOUT SOVRAN SELF STORAGE, INC:

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 over 500 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) 2015     2014
Assets
Investment in storage facilities:
Land $ 478,872 $ 397,642
Building, equipment and construction in progress   1,993,604     1,780,341  
2,472,476 2,177,983
Less: accumulated depreciation   (451,117 )   (411,701 )
Investment in storage facilities, net 2,021,359 1,766,282
Cash and cash equivalents 6,067 8,543
Accounts receivable 6,480 5,758
Receivable from joint venture 814 583
Investment in joint venture 57,185 57,803
Prepaid expenses 5,766 6,533
Intangible asset - in-place customer leases (net of accumulated
amortization of $20,335 in 2015 and $17,662 in 2014) 1,970 2,204
Other assets   7,171     7,094  
Total Assets $ 2,106,812   $ 1,854,800  
 
Liabilities
Line of credit $ 114,000 $ 49,000
Term notes 750,000 750,000
Accounts payable and accrued liabilities 47,146 43,551
Deferred revenue 7,475 7,290
Fair value of interest rate swap agreements 19,426 13,341
Mortgages payable   2,028     2,127  
Total Liabilities 940,075 865,309
 
Noncontrolling redeemable Operating Partnership Units at redemption value 16,698 13,622
 
Equity
Common stock 373 353
Additional paid-in capital 1,337,645 1,156,213
Accumulated deficit (168,871 ) (167,692 )
Accumulated other comprehensive loss   (19,108 )   (13,005 )
Total Shareholders' Equity   1,150,039     975,869  
Total Liabilities and Equity $ 2,106,812   $ 1,854,800  
 

     
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
July 1, 2015 July 1, 2014
to to
(dollars in thousands, except share data) September 30, 2015     September 30, 2014
 
Revenues
Rental income $ 88,066 $ 79,092
Other operating income 5,838 4,958
Management fee income   1,524     1,199  
Total operating revenues 95,428 85,249
 
Expenses
Property operations and maintenance (1) 20,954 19,243
Real estate taxes 9,247 8,312
General and administrative (1) 9,367 8,711
Acquisition related costs 1,046 1,210
Operating leases of storage facilities - 1,997
Depreciation and amortization 13,954 12,113
Amortization of in-place customer leases   717     1,244  
Total operating expenses   55,285     52,830  
 
Income from operations 40,143 32,419
 
Other income (expense)
Interest expense (A) (9,419 ) (9,116 )
Interest income 1 1
Gain on sale of real estate - 1,777
Equity in income of joint ventures   936     662  
 
Net income 31,661 25,743
Net income attributable to noncontrolling interests   (157 )   (154 )
Net income attributable to common shareholders $ 31,504   $ 25,589  
 
Earnings per common share attributable to common shareholders - basic $ 0.88   $ 0.77  
 
Earnings per common share attributable to common shareholders - diluted $ 0.88   $ 0.77  
 
Common shares used in basic
earnings per share calculation 35,700,375 33,234,660
 
Common shares used in diluted
earnings per share calculation 35,917,105 33,398,648
 
Dividends declared per common share $ 0.85   $ 0.68  
 
 
(A) Interest expense for the three months ending September 30 consists of the following
Interest expense $ 9,123 $ 8,903
Amortization of deferred financing fees   296     213  
Total interest expense $ 9,419   $ 9,116  
 
 
January 1, 2015 January 1, 2014
to to
(dollars in thousands, except share data) September 30, 2015     September 30, 2014
 
Revenues
Rental income $ 250,439 $ 223,438
Other operating income 16,780 14,123
Management fee income 4,344 3,453
Acquisition fee income   -     136  
Total operating revenues 271,563 241,150
 
Expenses
Property operations and maintenance (1) 61,001 55,720
Real estate taxes 27,311 24,433
General and administrative (1) 28,459 26,111
Acquisition related costs 2,415 5,926
Operating leases of storage facilities 683 5,991
Depreciation and amortization 40,734 35,057
Amortization of in-place customer leases   2,703     2,723  
Total operating expenses   163,306     155,961  
 
Income from operations 108,257 85,189
 
Other income (expense)
Interest expense (A) (27,796 ) (25,331 )
Interest income 4 31
(Loss) gain on sale of real estate (7 ) 1,777
Equity in income of joint ventures   2,436     1,553  
 
Net income 82,894 63,219
Net income attributable to noncontrolling interests   (407 )   (381 )
Net income attributable to common shareholders $ 82,487   $ 62,838  
 
Earnings per common share attributable to common shareholders - basic $ 2.35   $ 1.92  
 
Earnings per common share attributable to common shareholders - diluted $ 2.33   $ 1.91  
 
Common shares used in basic
earnings per share calculation 35,135,946 32,806,164
 
Common shares used in diluted
earnings per share calculation 35,358,332 32,972,262
 
Dividends declared per common share $ 2.35   $ 2.04  
 
 
(A) Interest expense for the nine months ending September 30 consists of the following
Interest expense $ 26,908 $ 24,712
Amortization of deferred financing fees   888     619  
Total interest expense $ 27,796   $ 25,331  
 
(1) For all periods presented internet marketing costs are included in property operations and maintenance expense. The internet marketing costs had previously been included in general and administrative expenses. For the three months ended September 30, 2015 and 2014, total internet marketing expense was $1,512 and $1,330, respectively. For the nine months ended September 30, 2015 and 2014, total internet marketing expense was $4,517 and $4,290, respectively. Same store internet marketing expense for both periods is noted below.

       
COMPUTATION OF FUNDS FROM OPERATIONS (FFO) (2) - (unaudited)
 
July 1, 2015 July 1, 2014
to to
(dollars in thousands, except share data) September 30, 2015     September 30, 2014
 
Net income attributable to common shareholders $ 31,504 $ 25,589
Net income attributable to noncontrolling interests 157 154
Depreciation of real estate and amortization of intangible
assets exclusive of deferred financing fees 14,430 13,127
Depreciation and amortization from unconsolidated joint ventures 610 430
Gain on sale of real estate - (1,777 )
Funds from operations allocable to noncontrolling
interest in Operating Partnership   (231 )   (224 )
Funds from operations available to common shareholders   46,470     37,299  
FFO per share - diluted $ 1.29 $ 1.12
 
Adjustments to FFO
Acquisition costs expensed 1,046 1,210
Operating leases straight line rent adjustment - 497
Funds from operations resulting from non-recurring items allocable to noncontrolling
interest in Operating Partnership   (5 )   (10 )
Adjusted funds from operations available to common shareholders   47,511     38,996  
Adjusted FFO per share - diluted $ 1.32 $ 1.17
 
Common shares - diluted 35,917,105 33,398,648
 
 
January 1, 2015 January 1, 2014
to to
(dollars in thousands, except share data) September 30, 2015     September 30, 2014
 
Net income attributable to common shareholders $ 82,487 $ 62,838
Net income attributable to noncontrolling interests 407 381
Depreciation of real estate and amortization of intangible
assets exclusive of deferred financing fees 42,649 37,097
Depreciation and amortization from unconsolidated joint ventures 1,845 1,166
Loss (gain) on sale of real estate 7 (1,777 )
Funds from operations allocable to noncontrolling
interest in Operating Partnership   (625 )   (601 )
Funds from operations available to common shareholders   126,770     99,104  
FFO per share - diluted $ 3.59 $ 3.01
 
Adjustments to FFO
Acquisition costs expensed 2,415 5,926
Company's share of acquisition costs expensed by Sovran HHF Storage Holdings - 185
Acquisition fee income from Sovran HHF Storage Holdings - (136 )
Operating leases straight line rent adjustment 146 1,491
Funds from operations resulting from non-recurring items allocable to noncontrolling
interest in Operating Partnership   (12 )   (45 )
Adjusted funds from operations available to common shareholders   129,319     106,525  
Adjusted FFO per share - diluted $ 3.66 $ 3.23
 
Common shares - diluted 35,358,332 32,972,262
 
(2) 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 (3) * 399 stores owned since 12/31/13 (unaudited) July 1, 2015 July 1, 2014
to to Percentage
(dollars in thousands) September 30, 2015     September 30, 2014 Change     Change
 
Revenues:
Rental income $ 78,018 $ 73,452 $ 4,566 6.2 %

Tenant insurance

2,804 2,486 318 12.8 %
Other operating income   1,458   1,314   144   11.0 %
Total operating revenues 82,280 77,252 5,028 6.5 %
 
Expenses:
Payroll and benefits 6,941 6,643 298 4.5 %
Real estate taxes 7,939 7,701 238 3.1 %
Utilities 3,124 3,137 (13 ) -0.4 %
Repairs and maintenance 2,765 2,666 99 3.7 %
Office and other operating expense 2,608 2,631 (23 ) -0.9 %
Insurance 1,013 1,017 (4 ) -0.4 %
Advertising & yellow pages 320 365 (45 ) -12.3 %
Internet marketing (1)   1,354   1,247   107   8.6 %
Total operating expenses   26,064   25,407   657   2.6 %
 
Net operating income (4) $ 56,216 $ 51,845 $ 4,371   8.4 %
 
 
QTD Same store move ins 40,679 42,161 (1,482 )
 
QTD Same store move outs 45,247 46,132 (885 )
 
 
OTHER COMPARABLE QUARTERLY SAME STORE DATA * (unaudited) July 1, 2015 July 1, 2014
to to Percentage
September 30, 2015     September 30, 2014 Change     Change
Stores owned since 12/31/12 (384 stores) (3)
Revenues $ 77,096 $ 72,327 $ 4,769 6.6 %
Expenses including internet advertising   24,297   23,747   550   2.3 %
Net operating income (4) $ 52,799 $ 48,580 $ 4,219   8.7 %
 
 
 
Stores owned since 12/31/11 (356 stores) (3)
Revenues $ 69,954 $ 65,693 $ 4,261 6.5 %
Expenses including internet advertising   22,060   21,491   569   2.6 %
Net operating income (4) $ 47,894 $ 44,202 $ 3,692   8.4 %
 
(3) Includes the 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.
 
(4) 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 exhibits A and B for supplemental quarterly same store data.

 

             
YEAR TO DATE SAME STORE DATA (3) * 399 stores owned since 12/31/13 (unaudited) January 1, 2015 January 1, 2014
to to Percentage
(dollars in thousands) September 30, 2015     September 30, 2014 Change     Change
 
Revenues:
Rental income $ 224,871 $ 212,692 $ 12,179   5.7 %

Tenant insurance

8,202 7,189 1,013 14.1 %
Other operating income   4,223     3,983     240     6.0 %
Total operating revenues 237,296 223,864 13,432 6.0 %
 
Expenses:
Payroll and benefits 20,480 19,779 701 3.5 %
Real estate taxes 23,827 23,182 645 2.8 %
Utilities 8,517 8,809 (292 ) -3.3 %
Repairs and maintenance 9,127 8,025 1,102 13.7 %
Office and other operating expense 7,573 7,779 (206 ) -2.6 %
Insurance 3,042 3,132 (90 ) -2.9 %
Advertising & yellow pages 991 1,099 (108 ) -9.8 %
Internet marketing (1)   4,111     4,122     (11 )   -0.3 %
Total operating expenses   77,668     75,927     1,741     2.3 %
 
Net operating income (4) $ 159,628   $ 147,937   $ 11,691     7.9 %
 
 
YTD Same store move ins 125,683 129,686 (4,003 )
 
YTD Same store move outs 119,388 122,611 (3,223 )
 
OTHER DATA Same Store (3) All Stores (5)

2015

2014

2015

2014

 
Weighted average quarterly occupancy 92.0 % 91.2 % 91.5 % 90.9 %
 
Occupancy at September 30 91.4 % 90.4 % 90.6 % 90.0 %
 
Rent per occupied square foot $12.64 $12.03 $12.79 $12.19
 
(5) Does not include unconsolidated joint venture stores or other stores managed by the Company
 
 

Investment in Storage Facilities: (unaudited)

The following summarizes activity in storage facilities during the nine months ended September 30, 2015:
 
Beginning balance $ 2,177,983
Property acquisitions 272,148
Improvements and equipment additions:
Expansions 4,520
Roofing, paving, and equipment:
Stabilized stores 12,187
Recently acquired stores 2,191
Change in construction in progress (Total CIP $10.3 million) 5,586
Dispositions and Impairments   (2,139 )
Storage facilities at cost at period end $ 2,472,476  
 
 

Comparison of Selected G&A Costs (unaudited)

Quarter Ended
September 30, 2015 September 30, 2014
 
Management and administrative salaries and benefits 5,787 5,450
Training 235 208
Call center 484 404
Uncle Bob's Management costs 76 162
Income taxes 617 352
Legal, accounting and professional 490 360
Other administrative expenses (6)   1,678     1,775  
$ 9,367   $ 8,711  
 
(6) Other administrative expenses include office rent, travel expense, investor relations and miscellaneous other expenses.
 
 

Net rentable square feet

September 30, 2015
Wholly owned properties 30,604,074
Joint venture properties 5,192,101
Third party managed properties   1,133,525  
36,929,700
 
 
September 30, 2015 September 30, 2014
 
Common shares outstanding 36,168,440 33,708,457
Operating Partnership Units outstanding 178,866 198,913
 

                           
Exhibit A
 
Sovran Self Storage, Inc.
 
Same Store Performance Summary by Market
Three Months Ended September 30, 2015
(unaudited)
 

 

 

 

 

 

Avg Qtrly

Avg Qtrly Occupancy for

Revenue

Expenses

NOI

 

Rent per

the Three Months Ended

for the Three Months

for the Three Months

for the Three Months

Square

Occupied

September 30,

Ended September 30,

   

Ended September 30,

   

Ended September 30,

   
Market   Stores  

Feet

 

Square Foot

  2015   2014 2015     2014   % Change 2015   2014   % Change 2015   2014   % Change
 
Houston-The Woodlands-Sugar Land, TX 40 3,069 $ 13.48 92.5% 94.3% $ 10,045 $ 9,393 6.9% $ 3,484 $ 3,386 2.9% $ 6,561 $ 6,007 9.2%
New England-CT-RI-NH-MA-ME 31 1,913 16.57 92.0% 90.5% 7,658 7,191 6.5% 2,224 2,121 4.9% 5,434 5,070 7.2%
Dallas-Fort Worth-Arlington, TX 20 1,374 11.50 94.5% 93.2% 3,881 3,620 7.2% 1,302 1,289 1.0% 2,579 2,331 10.6%
Atlanta-Sandy Springs-Roswell, GA 20 1,353 11.88 94.1% 93.7% 4,045 3,721 8.7% 1,112 1,126 -1.2% 2,933 2,595 13.0%
Buffalo-Upstate, NY 19 1,255 13.13 92.4% 92.7% 4,007 3,689 8.6% 1,175 1,171 0.3% 2,832 2,518 12.5%
New York-Newark-Jersey City, NY-NJ-PA 18 1,068 22.29 93.1% 89.6% 5,724 5,356 6.9% 1,868 1,764 5.9% 3,856 3,592 7.3%
Austin-Round Rock, TX 15 1,169 12.85 89.8% 89.8% 3,550 3,380 5.0% 1,202 1,123 7.0% 2,348 2,257 4.0%
New Orleans-Lafayette, LA 14 813 11.52 93.4% 90.6% 2,303 2,233 3.1% 684 637 7.4% 1,619 1,596 1.4%
Miami-Fort Lauderdale-West Palm Beach, FL 13 858 16.39 91.5% 90.9% 3,388 3,131 8.2% 984 962 2.3% 2,404 2,169 10.8%
San Antonio-New Braunfels, TX 12 713 12.43 92.4% 90.7% 2,159 1,926 12.1% 703 692 1.6% 1,456 1,234 18.0%
Tampa-St. Petersburg-Clearwater, FL 12 746 13.15 94.8% 91.8% 2,474 2,321 6.6% 729 727 0.3% 1,745 1,594 9.5%
Virginia Beach-Norfolk-Newport News, VA 11 844 10.71 88.0% 86.9% 2,081 2,084 -0.1% 689 647 6.5% 1,392 1,437 -3.1%
Phoenix-Mesa-Scottsdale, AZ 10 668 10.53 88.5% 86.8% 1,674 1,558 7.4% 543 619 -12.3% 1,131 939 20.4%
Chicago-Naperville-Elgin, IL 9 685 14.16 91.3% 87.2% 2,323 2,161 7.5% 821 803 2.2% 1,502 1,358 10.6%
Cleveland-Elyria, OH 9 629 11.53 89.3% 92.0% 1,704 1,634 4.3% 507 492 3.0% 1,197 1,142 4.8%
Raleigh-Durham, NC 8 544 11.85 94.0% 92.6% 1,587 1,506 5.4% 377 376 0.3% 1,210 1,130 7.1%
Pensacola-Ferry Pass-Brent, FL 8 605 8.38 86.4% 77.6% 1,188 1,201 -1.1% 488 461 5.9% 700 740 -5.4%
Jacksonville, FL 8 548 10.16 95.8% 94.9% 1,416 1,307 8.3% 464 479 -3.1% 952 828 15.0%
St. Louis, MO 8 515 12.83 92.7% 90.5% 1,603 1,494 7.3% 509 487 4.5% 1,094 1,007 8.6%
Montgomery, AL 7 490 9.34 90.4% 89.1% 1,098 1,024 7.2% 341 328 4.0% 757 696 8.8%
Space Coast, FL 7 500 11.56 93.7% 95.3% 1,433 1,335 7.3% 402 397 1.3% 1,031 938 9.9%
Beaumont-Port Arthur, TX 7 428 12.92 94.2% 95.5% 1,374 1,324 3.8% 479 435 10.1% 895 889 0.7%
Charlotte-Concord-Gastonia, NC 7 427 11.31 96.6% 94.9% 1,237 1,148 7.8% 336 333 0.9% 901 815 10.6%
Jackson, MS 6 404 11.32 90.4% 93.6% 1,080 1,036 4.2% 318 318 0.0% 762 718 6.1%
Cape Coral-Fort Myers, FL 6 314 11.04 94.8% 88.1% 878 760 15.5% 290 263 10.3% 588 497 18.3%
Chattanooga, TN-GA 5 353 11.06 90.8% 90.4% 931 873 6.6% 338 315 7.3% 593 558 6.3%
Youngstown-Warren-Boardman, OH-PA 5 337 8.86 89.8% 90.9% 713 694 2.7% 250 223 12.1% 463 471 -1.7%
Birmingham-Hoover, AL 5 313 8.63 87.7% 86.1% 644 587 9.7% 231 209 10.5% 413 378 9.3%
Columbia, SC 5 287 9.91 94.2% 91.4% 729 700 4.1% 278 264 5.3% 451 436 3.4%
Other markets 54 3,591 10.68 91.3% 90.8% 9,353 8,865 5.5% 2,936 2,960 -0.8% 6,417 5,905 8.7%
                                                   
Portfolio Total   399   26,813   $ 12.64   92.0%   91.2% $ 82,280   $ 77,252   6.5% $ 26,064   $ 25,407   2.6% $ 56,216   $ 51,845   8.4%
 
 
Properties owned since 12/31/13 (detail shown above) 399 26,813 12.64 92.0% 91.2% 82,280 77,252 6.5% 26,064 25,407 2.6% 56,216 51,845 8.4%
Properties owned since 12/31/12 384 25,710 12.33 92.1% 91.3% 77,096 72,327 6.6% 24,297 23,747 2.3% 52,799 48,580 8.7%
Properties owned since 12/31/11 356 23,529 12.23 92.0% 91.4% 69,954 65,693 6.5% 22,060 21,491 2.6% 47,894 44,202 8.4%
 
 
Dollars in thousands except for average quarterly rent per occupied square foot. Square feet in thousands.
List includes markets where the Company has five or more stores.
 

                           
Exhibit B
 
Sovran Self Storage, Inc.
 
Same Store Performance Summary by State
Three Months Ended September 30, 2015
(unaudited)
 
 

Avg Qtrly

Avg Qtrly Occupancy for

Revenue

Expenses

NOI

 

Rent per

the Three Months Ended

for the Three Months

for the Three Months

for the Three Months

Square

Occupied

September 30,

Ended September 30,

   

Ended September 30,

    Ended September 30,    
State   Stores  

Feet

 

Square Foot

  2015   2014 2015   2014   % Change 2015   2014   % Change 2015   2014   % Change
 
Alabama 22 1,617 $ 9.41 88.4% 89.0% $ 3,654 $ 3,397 7.6% $ 1,097 $ 1,064 3.1% $ 2,557 $ 2,333 9.6%
Arizona 10 668 10.53 88.5% 86.8% 1,674 1,558 7.4% 543 619 -12.3% 1,131 939 20.4%
Colorado 1 55 15.90 90.7% 86.0% 205 167 22.8% 67 69 -2.9% 138 98 40.8%
Connecticut 8 640 19.57 92.0% 87.0% 2,967 2,829 4.9% 804 755 6.5% 2,163 2,074 4.3%
Florida 61 4,032 12.02 93.0% 90.0% 11,987 11,166 7.4% 3,755 3,689 1.8% 8,232 7,477 10.1%
Georgia 28 1,947 11.34 93.1% 92.7% 5,491 5,109 7.5% 1,597 1,612 -0.9% 3,894 3,497 11.4%
Illinois 9 685 14.16 91.3% 87.2% 2,323 2,161 7.5% 821 803 2.2% 1,502 1,358 10.6%
Louisiana 14 813 11.52 93.4% 90.6% 2,303 2,233 3.1% 684 637 7.4% 1,619 1,596 1.4%
Maine 2 114 15.17 89.5% 93.8% 404 384 5.2% 108 98 10.2% 296 286 3.5%
Maryland 3 139 16.76 95.3% 92.1% 574 544 5.5% 184 196 -6.1% 390 348 12.1%
Massachusetts 13 693 16.14 92.8% 91.9% 2,752 2,551 7.9% 833 811 2.7% 1,919 1,740 10.3%
Mississippi 12 916 10.35 89.5% 91.7% 2,242 2,154 4.1% 705 676 4.3% 1,537 1,478 4.0%
Missouri 8 515 12.83 92.7% 90.5% 1,603 1,494 7.3% 509 487 4.5% 1,094 1,007 8.6%
New Hampshire 4 260 12.90 92.6% 93.2% 816 762 7.1% 242 236 2.5% 574 526 9.1%
New Jersey 4 253 18.31 90.4% 85.7% 1,096 992 10.5% 424 391 8.4% 672 601 11.8%
New York 33 2,070 17.24 93.0% 92.0% 8,635 8,053 7.2% 2,619 2,543 3.0% 6,016 5,510 9.2%
North Carolina 19 1,154 10.98 95.4% 93.9% 3,189 3,004 6.2% 854 849 0.6% 2,335 2,155 8.4%
Ohio 16 1,112 10.63 90.6% 91.7% 2,829 2,701 4.7% 873 833 4.8% 1,956 1,868 4.7%
Pennsylvania 4 220 10.62 86.8% 92.3% 528 544 -2.9% 191 189 1.1% 337 355 -5.1%
Rhode Island 4 206 14.06 90.4% 91.8% 719 664 8.3% 237 220 7.7% 482 444 8.6%
South Carolina 8 443 11.06 94.5% 92.2% 1,249 1,192 4.8% 427 419 1.9% 822 773 6.3%
Tennessee 4 291 11.22 90.9% 91.4% 778 738 5.4% 291 271 7.4% 487 467 4.3%
Texas 94 6,753 12.82 92.6% 93.0% 21,011 19,646 6.9% 7,174 6,929 3.5% 13,837 12,717 8.8%
Virginia 18 1,217 11.42 89.0% 87.1% 3,251 3,209 1.3% 1,025 1,011 1.4% 2,226 2,198 1.3%
                                                   
Portfolio Total   399   26,813   $ 12.64   92.0%   91.2% $ 82,280   $ 77,252   6.5% $ 26,064   $ 25,407   2.6% $ 56,216   $ 51,845   8.4%
 
 
Dollars in thousands except for average quarterly rent per occupied square foot. Square feet in thousands.
 

                                                           
Exhibit C
 
Sovran Self Storage, Inc.
 
Debt Maturity Schedule
September 30, 2015
(unaudited)
 
Current
Maturity Basis of Interest
(dollars in thousands)       Date       Rate       Rate (1)       2015       2016       2017       2018       2019       Thereafter       Total
 
Line of credit Dec-2019 Variable 1.50% $     - $ - $     - $     - $ 114,000 $ - $ 114,000
 
Term note Apr-2016 Fixed 6.38% - 150,000 - - - - 150,000
Term note Jun-2020 Swapped to fixed 3.77% - - - - - 125,000 125,000
Term note Jun-2020 Swapped to fixed 3.01% - - - - - 100,000 100,000
Term note Jun-2020 Swapped to fixed 2.77% - - - - - 100,000 100,000
Term note Aug-2021 Fixed 5.54% - - - - - 100,000 100,000
Term note Apr-2024 Fixed 4.53% - - - - - 175,000 175,000
Mortgage note May-2026 Fixed 5.99% 34 142 151 160 170 1,371 2,028
                                                 
$ 34 $ 150,142 $ 151 $ 160 $ 114,170 $ 601,371 $ 866,028
 
 
(1) Rate as of September 30, 2015 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 2015.
 

                                   
Exhibit D
 
Sovran Self Storage, Inc.
 
Certificate of Occupancy Performance Summary
September 30, 2015
(unaudited)
(dollars in thousands)
 
 

 

Revenue

Expenses

NOI

 

 

 

for the Three Months

for the Three Months

for the Three Months

# of

Net Rentable

Occupancy at September 30,

Ended September 30,

Ended September 30,

Ended September 30,

Market       Acquired  

Stores

  Cost  

Square Feet

2015   2014 2015   2014 2015   2014 2015   2014
 
Chicago, IL May-2014 1 $   5,500 52,280 78.4 % 38.5 % $ 171 $   48 $ 70 $   43 $ 101 $     5
Chattanooga, TN Sep-2014 1 6,550 57,260 83.5 % 36.8 % 154 8 57 7 97 1
Chicago, IL Nov-2014 1 5,750 97,611 65.6 % 0.0 % 110 - 97 - 13 -
Chicago, IL Mar-2015 1 8,690 64,804 29.6 % 0.0 % 53 - 58 - (5 ) -
Phoenix, AZ Jun-2015 1 7,904 64,470 38.1 % 0.0 % 83 - 83 - - -
Boston, MA Jun-2015 1 10,291 63,475 5.4 % 0.0 % 6 - 95 - (89 ) -
                           
6   $   44,685   399,900 $ 577   $   56 $ 460   $   50 $ 117     $     6
 

Sovran Self Storage, Inc.
Diane Piegza, Vice President
Investor Relations & Community Affairs
716-650-6115

View Comments and Join the Discussion!