GLOBAL
SELF STORAGE - SELF NASDAQ
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Global Self Storage (NASDAQ: SELF) (the
“Company”) owns and operates self storage properties. The Company
reported results below for the third quarter and nine months ended
September 30, 2018. With over $54 million in real estate assets as
of September 30, 2018, this REIT currently yields a dividend to
investors of over 6.5% (based on the closing market price as of December
4, 2018 and dividends declared over the trailing twelve month period). Q3 2018 vs. Q3 2017 total revenues increased
6.5% while total expenses decreased 14.6% with operating income up 526%. Please read the
Company’s press release provided below.
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Global Self Storage Reports Third Quarter and Nine-Month
2018 Results
Company Achieves Dividend Coverage for Second Consecutive Quarter
Amid Continued Strong Growth
NEW YORK, Nov. 14, 2018 (GLOBE NEWSWIRE) -- Global
Self Storage, Inc. (NASDAQ: SELF) (the “Company”), a real
estate investment trust that owns and operates self storage
properties, reported results for the third quarter and nine months
ended September 30, 2018.
Q3 2018 vs. Q3 2017 Highlights
·
The Company’s total revenues increased 6.5% to $2.1 million,
total expenses decreased 14.6% to $1.6 million, and operating income
increased 526.4% to $472,000.
·
Net income totaled approximately $89,000, or $0.01 per fully
diluted share, for the third quarter of 2018 compared to net loss of
$129,000, or $0.02 per fully diluted share, for the third quarter of
2017.
·
Funds from Operations (“FFO”) and Adjusted FFO (“AFFO”) totaled
$0.08 and $0.09 per share, respectively, for the third quarter of
2018 compared to $0.04 and $0.05 per share, respectively, for the
third quarter of 2017. This represents total FFO and AFFO growth of
99.6% and 75.5%, respectively, for the third quarter of 2018 versus
the same time period in 2017.
·
Same-store revenues increased 5.1% to $1.8 million.
·
Same-store net operating income (“NOI”) increased 8.3% to $1.1
million.
·
Combined same-store and non same-store (“Combined store”)
revenues increased 6.5% to $2.1 million.
·
Combined store NOI increased 9.9% to $1.3 million.
·
Combined store leasable square footage at quarter end increased
2.0% to 765,000.
·
Combined store overall square foot occupancy at quarter end
increased 130 basis points to 93.2%.
·
Maintained quarterly dividend of $0.065 per share of common
stock.
Nine Months Ended September 30, 2018 vs. Nine Months Ended
September 30, 2017 Highlights
·
The Company’s total revenues increased 9.2% to $6.0 million,
total expenses decreased 2.9% to $4.9 million, and operating income
increased 133.2% to $1.1 million.
·
Net income totaled approximately $544,000, or $0.07 per fully
diluted share, for the nine months ended September 30, 2018 compared
to net loss of $126,000, or $0.02 per fully diluted share, for the
nine months ended September 30, 2017.
·
FFO and AFFO totaled $0.21 and $0.22 per share, respectively, for
the nine months ended September 30, 2018 compared to $0.16 and $0.17
per share, respectively, for the nine months ended September 30,
2017. This represents total FFO and AFFO growth of 31.3% and 29.2%,
respectively, for the nine months ended September 30, 2018 versus
the same time period in 2017.
·
Same-store revenues increased 8.6% to $5.4 million.
·
Same-store NOI increased 6.8% to $3.2 million.
·
Combined store revenues increased 9.2% to $6.0 million.
·
Combined store NOI increased 7.2% to $3.6 million.
·
Distributed dividends of $0.195 per share of common stock.
Management Commentary
“Q3 was another standout quarter for the Company, as we achieved
full dividend coverage from FFO and AFFO for the second consecutive
quarter, as well as for the first nine months of 2018,” said
President and Chief Executive Officer of the Company, Mark C.
Winmill. “We continued to successfully increase rental rates and
grow revenues through our revenue rate management program as well as
manage our costs more effectively, which enabled us to achieve
record FFO and AFFO per share for both the quarter and nine-month
period.”
“Since our inception, we have always avoided markets with new
supply problems, and this has enabled us to experience above-average
growth in rents due to favorable supply and demand dynamics. As our
results demonstrate, we’re continuing to bear the fruits of our
differentiated strategy of focusing on underserved secondary and
tertiary cities in the Northeast, Mid-Atlantic, and Midwest with
dramatically slower supply growth than the top MSAs. In fact, our
same-store revenues and NOI were up 5.1% and 8.3%, respectively, for
the quarter and up 8.6% and 6.8%, respectively, for the first nine
months of 2018, reflecting the continued success we’re experiencing
at each of our properties. An important aspect of this strong growth
and profitability has been the successful lease-up activity from our
recent expansions, particularly at our Merrillville, IN store, where
we leased up all of the three new buildings in less than nine
months.”
“Overall, 2018 has been a very positive year for the Company so
far. As we look out to the remainder of the year and into 2019, we
will continue to drive organic profitable growth through our revenue
rate management program. We’ll also be looking to supplement this
growth with disciplined and accretive property acquisitions at a
time and price that makes the most sense. In the interim, we’ll
continue to extend our success even further by focusing on
generating growth and profitability through our existing properties,
including through expansions that can meaningfully increase our
leasable square footage and revenue. Over time, we believe this
formula will translate to even higher returns for our shareholders.”
Third Quarter 2018
The Company’s third quarter total revenues increased 6.5%, total
expenses decreased 14.6%, and operating income increased 526.4%. The
increase in operating income was driven primarily by the expansion
of the Company’s Merrillville, IN store, as well as higher rental
and occupancy rates. For the third quarter of 2018, net income
totaled $89,000 compared to net loss of $129,000 for the third
quarter of 2017.
Same-Store Results for the Third Quarter of 2018 (1)
The Company's same-store portfolio for the third quarter of 2018
included ten of its eleven stores, representing 87.5% of store NOI
for the quarter.
For the third quarter of 2018, same-store revenues increased 5.1%
to $1.8 million compared with approximately $1.8 million for the
third quarter in 2017. The increase was driven primarily by
additional rental income growth and increased insurance
participation.
Same-store operating expenses in the third quarter of 2018
totaled $727,000 compared with $722,000 in the third quarter of
2017. The increase was primarily driven by higher store level
employment costs, property taxes, and administrative expenses, which
were partially offset by reduced advertising and marketing costs.
For the third quarter of 2018, same-store NOI increased 8.3% to
$1.1 million compared with $1.0 million for the third quarter of
2017. The increase was due primarily to an increase in revenues
which were partially offset by an increase in operating expenses.
Same-store occupancy at September 30, 2018 increased 170 basis
points to 93.0% from 91.3% at September 30, 2017.
(1) A reconciliation of net income (loss) to same-store net
operating income is provided later in this release, entitled
“Reconciliation of GAAP Net Income (Loss) to Same-Store Net
Operating Income.”
Combined Same-Store and Non Same-Store Results for the Third
Quarter of 2018 (2)
For the third quarter of 2018, Combined store revenues increased
6.5% to $2.1 million compared with $1.9 million for the third
quarter of 2017. The increase was driven primarily by a 3.5%
increase in net leased square footage and by the results of the
Company’s revenue rate management program of raising existing tenant
rates. The increase in net leased square footage was a result of the
Company’s Merrillville, IN store expansion.
Combined store operating expenses in the third quarter of 2018
totaled $783,000 compared with $773,000 in the third quarter of
2017. The increase was driven primarily by higher store level
employment costs, property taxes, and administrative expenses, which
were partially offset by reduced advertising and marketing costs.
For the third quarter of 2018, Combined store NOI increased 9.9%
to $1.3 million compared with $1.2 million for the third quarter of
2017. The increase was due primarily to an increase in revenues
which was partially offset by an increase in operating expenses.
(2) A reconciliation of net income (loss) to combined same-store and
non same-store net operating income is provided later in this
release, entitled “Reconciliation of GAAP Net Income (Loss) to
Combined Same-Store and Non Same-Store Net Operating Income.”
Company Operating Results for the Third Quarter of 2018
Net income totaled approximately $89,000, or $0.01 per share, in
the third quarter of 2018 compared to a net loss of $129,000 or
$0.02 per share, for the third quarter of 2017.
General and administrative expenses totaled $436,000 in the third
quarter of 2018 compared with $456,000 in the prior quarter and
$641,000 in the third quarter of 2017. The year-over-year decrease
was primarily driven by decreased expenses in various professional
fees, employee acquisition, and stockholder communications.
Business development costs for the third quarter of 2018 totaled
$15,000 compared with $105 for the third quarter of 2017.
Interest expense for the third quarter of 2018 was $220,000
compared with $220,000 for the third quarter of 2017.
FFO totaled approximately $619,000, or $0.08 per share, while
AFFO totaled approximately $661,000, or $0.09 per share, for the
third quarter of 2018. This represents total FFO and AFFO growth of
99.6% and 75.5%, respectively, for the third quarter of 2018 versus
the same time period in 2017.
Nine Months Ended September 30, 2018
The Company’s total revenues for the nine months ended September
30, 2018 increased 9.2%, total expenses decreased 2.9%, and
operating income increased 133.2%. The increase in operating income
was driven primarily by the expansion of the Company’s Merrillville,
IN store, as well as higher rental and occupancy rates. For the nine
months ended September 30, 2018, net income totaled $544,000
compared to a net loss of $126,000 for the same period in 2017.
Same-Store Results for the Nine Months Ended September 30, 2018
The Company's same-store portfolio for the nine months ended
September 30, 2018 included ten of its eleven stores, representing
88.4% of store NOI for the period.
For the nine months ended September 30, 2018, same-store revenues
increased 8.6% to $5.4 million compared with $5.0 million for the
nine months ended September 30, 2017. The increase was driven
primarily by additional income from rental income growth and
increased insurance participation.
Same-store operating expenses for the nine months ended September
30, 2018 totaled $2.3 million compared with $2.0 million for the
nine months ended September 30, 2017. The increase was primarily
driven by higher store level employment costs, property taxes, and
administrative expenses, which were partially offset by reduced
advertising and marketing costs.
For the nine months ended September 30, 2018, same-store NOI
increased 6.8% to $3.2 million compared with $3.0 million for the
nine months ended September 30, 2017. The increase was due primarily
to an increase in revenues which were partially offset by an
increase in operating expenses.
Same-store occupancy for the nine months ended September 30, 2018
increased 170 basis points to 93.0% from 91.3% for the nine months
ended September 30, 2017.
Combined Same-Store and Non Same-Store Results for the Nine Months
Ended September 30, 2018
For the nine months ended September 30, 2018, Combined store
revenues increased 9.2% to $6.0 million compared with $5.5 million
for the nine months ended September 30, 2017. The increase was
driven primarily by a 3.5% increase in net leased square footage and
by the results of the Company’s revenue rate management program of
raising existing tenant rates.
Combined store operating expenses for the nine months ended
September 30, 2018 totaled $2.5 million compared with $2.2 million
for the nine months ended September 30, 2017. The increase was
driven primarily by higher store level employment costs, property
taxes, and administrative expenses, which were partially offset by
reduced advertising and marketing costs.
For the nine months ended September 30, 2018, Combined store NOI
increased 7.2% to $3.6 million compared with $3.3 million for the
nine months ended September 30, 2017. The increase was due primarily
to an increase in revenues which was partially offset by an increase
in operating expenses.
Company Operating Results for the Nine Months Ended September 30,
2018
Net income totaled approximately $544,000, or $0.07 per fully
diluted share, for the nine months ended September 30, 2018 compared
to a net loss of $126,000 or $0.02 per fully diluted share, for the
nine months ended September 30, 2017.
General and administrative expenses totaled $1.4 million in the
nine months ended September 30, 2018 compared with $1.5 million in
the nine months ended September 30, 2017. The year-over-year
decrease was primarily driven by decreased expenses in various
professional fees, employee acquisition, and stockholder
communications.
Business development costs for the nine months ended September
30, 2018 totaled $25,000 compared with $14,000 for the nine months
ended September 30, 2017.
Interest expense for the nine months ended September 30, 2018 was
$660,000 compared with $661,000 for the nine months ended September
30, 2017.
FFO totaled approximately $1.6 million, or $0.21 per share, while
AFFO totaled approximately $1.7 million, or $0.22 per share, for the
nine months ended September 30, 2018. This represents total FFO and
AFFO growth of 31.3% and 29.2%, respectively, for the nine months
ended September 30, 2018 versus the same time period in 2017.
Dividends
On September 4, 2018, the Company declared a quarterly dividend
of $0.065 per share, consistent with the quarterly dividend from a
year ago and last quarter.
Balance Sheet
At September 30, 2018, cash, cash equivalents, and marketable
equity securities totaled $3.4 million compared with $3.7 million at
December 31, 2017.
For more information on the Company’s quarterly results,
including financial statements and notes thereto, please refer to
the Company’s Quarterly Report on Form 10-Q for the third quarter of
2018 filed with the Securities and Exchange Commission today.
About Global Self Storage
Global Self Storage, Inc. is a self-administered and self-managed
REIT that owns, operates, manages, acquires, develops and redevelops
self storage properties in the United States. The Company's self
storage properties are designed to offer affordable, easily
accessible and secure storage space for residential and commercial
customers. It currently owns and operates, through its wholly owned
subsidiaries, eleven self storage properties located in Connecticut,
Illinois, Indiana, New York, Ohio, Pennsylvania, and South Carolina.
For more information, go to http://ir.globalselfstorage.us/ or
visit our self storage customer site at www.globalselfstorage.us.
You can also follow us on Twitter, LinkedIn and Facebook.
Non-GAAP Financial Measures
This press release contains certain non-GAAP financial measures.
FFO and FFO per share are non-GAAP measures defined by the National
Association of Real Estate Investment Trusts (“NAREIT”) and are
considered helpful measures of REIT performance by REITs and many
REIT analysts. NAREIT defines FFO as a REIT’s net income, excluding
gains or losses from sales of property, and adding back real estate
depreciation and amortization. FFO and FFO per share are not a
substitute for net income or earnings per share. FFO is not a
substitute for GAAP net cash flow in evaluating our liquidity or
ability to pay dividends, because it excludes financing activities
presented on our statements of cash flows. In addition, other REITs
may compute these measures differently, so comparisons among REITs
may not be helpful. However, the Company believes that to further
understand the performance of its stores, FFO should be considered
along with the net income and cash flows reported in accordance with
GAAP and as presented in the Company’s financial statements.
AFFO represents FFO excluding the effects of business development
and acquisition related costs and non-recurring items, which we
believe are not indicative of the Company’s operating results. We
present AFFO because we believe it is a helpful measure in
understanding our results of operations insofar as we believe that
the items noted above that are included in FFO, but excluded from
AFFO, are not indicative of our ongoing operating results. We also
believe that the investment community considers our AFFO (or similar
measures using different terminology) when evaluating us. Because
other REITs or real estate companies may not compute AFFO in the
same manner as we do, and may use different terminology, our
computation of AFFO may not be comparable to AFFO reported by other
REITs or real estate companies.
We believe net operating income or “NOI” is a meaningful measure
of operating performance because we utilize NOI in making decisions
with respect to, among other things, capital allocations,
determining current store values, evaluating store performance, and
in comparing period-to-period and market-to-market store operating
results. In addition, we believe the investment community utilizes
NOI in determining operating performance and real estate values, and
does not consider depreciation expense because it is based upon
historical cost. NOI is defined as net store earnings before general
and administrative expenses, interest, taxes, depreciation, and
amortization. A reconciliation of this measure to its most directly
comparable GAAP measure is provided later in this release.
NOI is not a substitute for net income, net operating cash flow,
or other related GAAP financial measures, in evaluating our
operating results.
Same-Store Self Storage Operations Definition
We consider our same-store portfolio to consist of only those
stores owned and operated on a stabilized basis at the beginning and
at the end of the applicable periods presented. We consider a store
to be stabilized once it has achieved an occupancy rate that we
believe, based on our assessment of market specific data, is
representative of similar self storage assets in the applicable
market for a full year measured as of the most recent January 1 and
has not been significantly damaged by natural disaster or undergone
significant renovation or expansion. We believe that same-store
results are useful to investors in evaluating our performance
because they provide information relating to changes in store-level
operating performance without taking into account the effects of
acquisitions, dispositions or new ground-up developments. At
September 30, 2018, we owned ten same-store properties and one non
same-store property. The Company believes that by providing
same-store results from a stabilized pool of stores, with
accompanying operating metrics including, but not limited to
variances in occupancy, rental revenue, operating expenses, NOI,
etc., stockholders and potential investors are able to evaluate
operating performance without the effects of non-stabilized
occupancy levels, rent levels, expense levels, acquisitions or
completed developments. Same-store results should not be used as a
basis for future same-store performance or for the performance of
the Company's stores as a whole.
Cautionary Note Regarding Forward Looking Statements
Certain information presented in this press release may contain
“forward-looking statements” within the meaning of the federal
securities laws including, but not limited to, the Private
Securities Litigation Reform Act of 1995. Forward looking statements
include statements concerning the Company’s plans, objectives,
goals, strategies, future events, future revenues or performance,
capital expenditures, financing needs, plans or intentions, and
other information that is not historical information. In some cases,
forward looking statements can be identified by terminology such as
“believes,” “plans,” “intends,” “expects,” “estimates,” “may,”
“will,” “should,” “anticipates,” or the negative of such terms or
other comparable terminology, or by discussions of strategy. All
forward-looking statements by the Company involve known and unknown
risks, uncertainties and other factors, many of which are beyond the
control of the Company, which may cause the Company’s actual results
to be materially different from those expressed or implied by such
statements. The Company may also make additional forward looking
statements from time to time. All such subsequent forward-looking
statements, whether written or oral, by the Company or on its
behalf, are also expressly qualified by these cautionary statements.
Investors should carefully consider the risks, uncertainties, and
other factors, together with all of the other information included
in the Company’s filings with the Securities and Exchange
Commission, and similar information. All forward-looking statements,
including without limitation, the Company’s examination of
historical operating trends and estimates of future earnings, are
based upon the Company’s current expectations and various
assumptions. The Company’s expectations, beliefs and projections are
expressed in good faith, but there can be no assurance that the
Company’s expectations, beliefs and projections will result or be
achieved. All forward looking statements apply only as of the date
made. The Company undertakes no obligation to publicly update or
revise forward looking statements which may be made to reflect
events or circumstances after the date made or to reflect the
occurrence of unanticipated events. The amount, nature, and/or
frequency of dividends paid by the Company may be changed at any
time without notice.
Contacts:
Liolios Investor Relations
Global Self Storage, Inc.
Global Self Storage, Inc.
Reconciliation of GAAP Net Income (Loss) to Same-Store Net
Operating Income
The following table presents a reconciliation of same-store net
operating income to net income (loss) as presented on our unaudited
consolidated statements of operations for the periods indicated:
Reconciliation of GAAP Net Income (Loss) to Combined Same-Store and
Non Same-Store Net Operating Income
The following table presents a reconciliation of combined
same-store and non same-store net operating income to net income
(loss) as presented on our unaudited consolidated statements of
operations for the periods indicated:
The author of this communication has been paid by the Company for distribution services to disseminate the Company’s press release (which has been appended above this disclaimer) to the author’s subscribers. The opinions expressed in the foregoing communication are those of the author. They do not purport to reflect the opinions or views of the Company, its affiliates, or their representatives. Neither the Company, nor any of its affiliates or representatives, makes any representation or warranty, express or implied, as to the accuracy or completeness of the information contained in the author’scommunication or in any other written or oral communication transmitted or made available to the recipient by the author hereof. The Company, and its affiliates and representatives, expressly disclaim any and all liability based, in whole or in part, on such information,errors therein or omissions therefrom. This communication shall not constitute an offer to sell or the solicitation of an offer to buy the Company’s securities About WallStreetResearcher.com : WallStreetResearcher.com is a subsidiary of Target Publishing Inc, and is a leading publisher of todays market and investment news, commentary, proprietary research and videos from seasoned journalists, analysts and contributors covering the financial markets and global economies. Leveraging our extensive distribution network and social media presence, we have cultivated a valuable audience of engaged market enthusiasts, which in turn delivers a variety of unique opportunXities for industry partnerships, corporate communications, market exposure and investment. The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility A complete disclaimer can be viewed HERE |
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