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Sovran Self Storage Reports Third Quarter Results, Adjusted FFO per Share Increases 15.8%, Acquires Eight Properties for $87 Million

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Sovran Self Storage, Inc. (NYSE:SSS) , a self storage real estate investment trust (REIT), reported operating results for the quarter ended September 30, 2014.

Uncle Bob's Self Storage recently opened this converted facility at 1625 S. Ashland Ave., Chicago, I

Uncle Bob’s Self Storage recently opened this converted facility at 1625 S. Ashland Ave., Chicago, IL 60608 (Photo: Business Wire)

Net income available to common shareholders for the third quarter of 2014 was $25.6 million or $0.77 per fully diluted common share. Included in the 2014 net income is a $1.8 million gain related to the sale of a Texas storage facility. For the same period in 2013, net income available to common shareholders was $19.7 million or $0.62 per fully diluted common share.

Funds from operations (FFO) for the quarter were $1.12 per fully diluted common share compared to $0.98 for the same period last year. In the third quarter of 2014, the Company incurred net acquisition costs of $1.2 million in connection with its property purchases and had a straight line rent adjustment of $0.5 million relating to the lease expense of the former Westy properties. In the third quarter of 2013, the Company incurred $0.8 million of acquisition costs but no straight-line rent adjustment. Absent these charges, adjusted FFO per share was $1.17 and $1.01 for the third quarter of 2014 and 2013, respectively.

Improved occupancies and rising rental rates resulted in strong FFO growth.

OPERATIONS:

Total revenues increased 21.0% over last year’s third quarter, while operating costs increased 16.4%, resulting in an NOI (3) increase of 23.1%. Overall occupancy averaged 90.9% for the period, and rental rates averaged $12.19 per sq. ft.

Revenues for the 385 stores wholly owned by the Company since January 1, 2013 increased 7.0% from those of the third quarter of 2013, the result of a 140 basis point increase in average occupancy, a 4.4% increase in rental rates and strong growth in insurance commissions.

Same store operating expenses increased 2.4% for the third quarter of 2014 compared to the prior year period, primarily the result of increased repair and maintenance costs caused by the Pacific storms that affected Arizona early in the quarter.

Consequently, same store net operating income increased 9.2% this period over the third quarter of 2013.

“We are pleased with another quarter of solid earnings,” said Andrew Gregoire, CFO. “Our Revenue Management System has been driving exceptional top line growth. The system made pricing adjustments during the third quarter in anticipation of the off-peak season, and we are well positioned for strong year-end performance.”

General and administrative expenses increased by approximately $1.1 million over the same period in 2013, primarily due to increases in costs associated with operating more stores during the quarter than at this time last year.

During the third quarter of 2014, the Company experienced same store revenue and NOI growth in every state in which it operates. The stores with the strongest revenue impact include those in Texas, Florida, Illinois, and Georgia.

PROPERTIES:

The Company acquired five self storage facilities for a total cost of approximately $46 million in the third quarter.

The properties total approximately 345,000 square feet and are all located in markets where the Company already has a presence: San Antonio, TX; St. Petersburg, FL; Chesapeake, VA; Chattanooga, TN and Northern NJ.

Subsequent to quarter end, the Company acquired three facilities totaling 292,000 sq. ft. for approximately $41 million. One of the facilities is in New Orleans, LA; one is near Orlando, FL, and the other is in Austin, TX.

In August, the Company also sold one of its Houston, TX stores for net proceeds of $4.9 million resulting in a gain of $1.8 million.

CAPITAL TRANSACTIONS:

Illustrated below are key financial ratios at September 30, 2014:

  • Debt to Enterprise Value (at $74.36/share) 23.0%
  • Debt to Book Cost of Storage Facilities 35.6%
  • Debt to EBITDA Ratio 4.0x
  • Debt Service Coverage 5.2x

At September 30, 2014, the Company had approximately $7 million of cash on hand, and $174 million available on its line of credit (without considering the additional $75 million available under the expansion feature).

The Company issued 424,403 shares of its common stock via its previously announced ATM program during the quarter at an average price of $78.46 per share, resulting in net proceeds of $32.9 million after issuance costs. The Company used the proceeds to fund the purchase of the aforementioned properties and to pay down its line of credit. In July, the Company issued 39,162 shares at an average price of $75.81 through its Dividend Reinvestment Plan.

COMMON STOCK DIVIDEND:

Subsequent to quarter end, the Company announced a quarterly dividend of $0.68 per share or $2.72 annualized.

YEAR 2014 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 2014:

Same Store

Projected Increases Over 2013

4Q 2014

Full Year 2014

Revenue 6.0 – 7.0% 7.0 – 8.0%
Operating Costs (excluding property taxes) 2.0 – 3.0% 3.0 – 4.0%
Property Taxes

5.0 – 6.0%

8.5 – 9.5%

Total Operating Expenses 3.0 – 4.0% 4.5 – 5.5%
Net Operating Income 7.5 – 8.5% 8.0 – 9.0%

The Company intends to complete up to $20 million on its expansion and enhancement program. It has also budgeted $16 million to provide for recurring capitalized expenditures including roofing, paving, and office renovations.

In addition to the $278 million of properties acquired by the Company through October 28, 2014, it has assumed $10 million of additional acquisitions in 2014, exclusive of investments in joint ventures. Per share FFO guidance is projected after adding back third party acquisition costs. 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 1.5%.

Annual general and administrative expenses are expected to be approximately $40 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 internet marketing presence, Corporate Alliance and third party management programs.

At September 30, 2014, the Company had 33.7 million shares of common stock outstanding and 0.2 million Operating Partnership Units outstanding.

As a result of the above assumptions, management expects funds from operations for the full year 2014 to be approximately $4.33 to $4.37 per share, and between $1.10 and $1.14 per share for the fourth quarter of 2014.

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 30, 2014. 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 a period of 90 days; a telephone replay will also be available for 72 hours by calling 877.660.6853 and entering conference ID 13592918.

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 506 self storage facilities in 25 states under the name “Uncle Bob’s Self Storage”(R). 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) 2014 2013
Assets
Investment in storage facilities:
Land $ 381,794 $ 312,053
Building, equipment and construction in progress 1,731,340 1,552,584
2,113,134 1,864,637
Less: accumulated depreciation (400,306) (366,472)
Investment in storage facilities, net 1,712,828 1,498,165
Cash and cash equivalents 7,476 9,524
Accounts receivable 5,663 5,119
Receivable from joint venture 714 883
Investment in joint venture 38,911 30,391
Prepaid expenses 7,302 5,978
Intangible asset – in-place customer leases (net of accumulated
amortization of $16,274 in 2014 and $13,551 in 2013) 2,646 1,092
Fair value of interest rate swap agreements 547 794
Other assets 5,197 9,929
Total Assets $ 1,781,284 $ 1,561,875
Liabilities
Line of credit $ $ 49,000
Term notes 750,000 575,000
Accounts payable and accrued liabilities 43,807 37,741
Deferred revenue 7,269 6,708
Fair value of interest rate swap agreements 10,458 7,523
Mortgages payable 2,160 2,254
Total Liabilities 813,694 678,226
Noncontrolling redeemable Operating Partnership Units at redemption value 14,817 12,940
Equity
Common stock 349 337
Additional paid-in capital 1,157,820 1,066,399
Accumulated deficit (168,628) (162,450)
Accumulated other comprehensive loss (9,593) (6,402)
Treasury stock at cost (27,175) (27,175)
Total Shareholders’ Equity 952,773 870,709
Total Liabilities and Equity $ 1,781,284 $ 1,561,875
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
July 1, 2014 July 1, 2013
to to
(dollars in thousands, except share data) September 30, 2014 September 30, 2013
Revenues
Rental income $ 79,092 $ 65,309
Other operating income 4,958 4,040
Management fee income 1,199 1,106
Total operating revenues 85,249 70,455
Expenses
Property operations and maintenance 17,913 15,568
Real estate taxes 8,312 6,953
General and administrative 10,041 8,965
Acquisition related costs 1,210 776
Operating leases of storage facilities 1,997
Depreciation and amortization 12,113 10,496
Amortization of in-place customer leases 1,244 797
Total operating expenses 52,830 43,555
Income from operations 32,419 26,900
Other income (expense)
Interest expense (A) (9,116 ) (7,923 )
Interest income 1 1
Gain on sale of real estate 1,777
Equity in income of joint ventures 662 575
Income from continuing operations 25,743 19,553
Income from discontinued operations - 246
Net income 25,743 19,799
Net income attributable to noncontrolling interests (154 ) (124 )
Net income attributable to common shareholders $ 25,589 $ 19,675
Earnings per common share attributable to common shareholders – basic
Continuing operations $ 0.77 $ 0.62
Discontinued operations $ - $ 0.01
Earnings per share – basic $ 0.77 $ 0.63
Earnings per common share attributable to common shareholders – diluted
Continuing operations $ 0.77 $ 0.61
Discontinued operations $ - $ 0.01
Earnings per share – diluted $ 0.77 $ 0.62
Common shares used in basic
earnings per share calculation 33,234,660 31,469,026
Common shares used in diluted
earnings per share calculation 33,398,648 31,625,635
Dividends declared per common share $ 0.68 $ 0.53
(A) Interest expense for the three months ending September 30 consists of the following
Interest expense $ 8,903 $ 7,706
Amortization of deferred financing fees 213 217
Total interest expense $ 9,116 $ 7,923
January 1, 2014 January 1, 2013
to to
(dollars in thousands, except share data)

September 30, 2014

September 30, 2013
Revenues
Rental income $ 223,438 $ 186,997
Other operating income 14,123 11,303
Management fee income 3,453 3,142
Acquisition fee income 136 -
Total operating revenues 241,150 201,442
Expenses
Property operations and maintenance 51,431 45,288
Real estate taxes 24,433 19,735
General and administrative 30,400 26,745
Acquisition related costs 5,926 1,263
Operating leases of storage facilities 5,991
Depreciation and amortization 35,057 31,170
Amortization of in-place customer leases 2,723 2,682
Total operating expenses 155,961 126,883
Income from operations 85,189 74,559
Other income (expense)
Interest expense (A) (25,331 ) (24,827 )
Interest income 31 2
Gain on sale of real estate 1,777 421
Equity in income of joint ventures 1,553 1,417
Income from continuing operations 63,219 51,572
Income from discontinued operations - 651
Net income 63,219 52,223
Net income attributable to noncontrolling interests (381 ) (331 )
Net income attributable to common shareholders $ 62,838 $ 51,892
Earnings per common share attributable to common shareholders – basic
Continuing operations $ 1.92 $ 1.65
Discontinued operations $ - $ 0.02
Earnings per share – basic $ 1.92 $ 1.67
Earnings per common share attributable to common shareholders – diluted
Continuing operations $ 1.91 $ 1.64
Discontinued operations $ - $ 0.02
Earnings per share – diluted $ 1.91 $ 1.66
Common shares used in basic
earnings per share calculation 32,806,164 31,077,910
Common shares used in diluted
earnings per share calculation 32,972,262 31,235,049
Dividends declared per common share $ 2.04 $ 1.49
(A) Interest expense for the nine months ending September 30 consists of the following
Interest expense $ 24,712 $ 24,187
Amortization of deferred financing fees 619 640
Total interest expense $ 25,331 $ 24,827
COMPUTATION OF FUNDS FROM OPERATIONS (FFO) (1) – (unaudited)
July 1, 2014 July 1, 2013
to to
(dollars in thousands, except share data) September 30, 2014 September 30, 2013
Net income attributable to common shareholders $ 25,589 $ 19,675
Net income attributable to noncontrolling interests 154 124
Depreciation of real estate and amortization of intangible
assets exclusive of deferred financing fees 13,127 11,071
Depreciation of real estate included in discontinued operations 89
Depreciation and amortization from unconsolidated joint ventures 430 373
Gain on sale of real estate (1,777)
Funds from operations allocable to noncontrolling
interest in Operating Partnership (224) (196)
Funds from operations available to common shareholders 37,299 31,136
FFO per share – diluted $ 1.12 $ 0.98
Adjustments to FFO
Acquisition costs expensed 1,210 776
Operating leases straight line rent adjustment 497
Funds from operations resulting from non-recurring items allocable to noncontrolling
interest in Operating Partnership (10) (5)
Adjusted funds from operations available to common shareholders 38,996 31,907
Adjusted FFO per share – diluted $ 1.17 $ 1.01
Common shares – diluted 33,398,648 31,625,635
January 1, 2014 January 1, 2013
to to
(dollars in thousands, except share data) September 30, 2014 September 30, 2013
Net income attributable to common shareholders $ 62,838 $ 51,892
Net income attributable to noncontrolling interests 381 331
Depreciation of real estate and amortization of intangible
assets exclusive of deferred financing fees 37,097 33,211
Depreciation of real estate included in discontinued operations 266
Depreciation and amortization from unconsolidated joint ventures 1,166 1,119
Gain on sale of real estate (1,777) (421)
Funds from operations allocable to noncontrolling
interest in Operating Partnership (601) (547)
Funds from operations available to common shareholders 99,104 85,851
FFO per share – diluted $ 3.01 $ 2.75
Adjustments to FFO
Acquisition costs expensed 5,926 1,263
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 1,491
Funds from operations resulting from non-recurring items allocable to noncontrolling
interest in Operating Partnership (45) (8)
Adjusted funds from operations available to common shareholders 106,525 87,106
Adjusted FFO per share – diluted $ 3.23 $ 2.79
Common shares – diluted 32,972,262 31,235,049
(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) * 385 stores owned since 12/31/12 (unaudited) July 1, 2014 July 1, 2013
to to Percentage
(dollars in thousands) September 30, 2014 September 30, 2013 Change Change
Revenues:
Rental income $ 68,829 $ 64,460 $ 4,369 6.8 %
Tenant insurance commissions 2,421 1,979 442 22.3 %
Other operating income 1,290 1,369 (79 ) -5.8 %
Total operating revenues 72,540 67,808 4,732 7.0 %
Expenses:
Payroll and benefits 6,316 6,170 146 2.4 %
Real estate taxes 7,030 6,836 194 2.8 %
Utilities 2,939 2,943 (4 ) -0.1 %
Repairs and maintenance 2,498 2,193 305 13.9 %
Office and other operating expense 2,500 2,460 40 1.6 %
Insurance 980 1,102 (122 ) -11.1 %
Advertising & yellow pages 353 381 (28 ) -7.3 %
Total operating expenses 22,616 22,085 531 2.4 %
Net operating income (3) $ 49,924 $ 45,723 $ 4,201 9.2 %
QTD Same store move ins 40,458 43,002 (2,544 )
QTD Same store move outs 45,082 46,853 (1,771 )
OTHER COMPARABLE QUARTERLY SAME STORE DATA * (unaudited) July 1, 2014 July 1, 2013
to to Percentage
September 30, 2014 September 30, 2013 Change Change
Stores owned since 12/31/11 (357 stores) (2)
Revenues $ 65,906 $ 62,132 $ 3,774 6.1 %
Expenses 20,447 19,605 842 4.3 %
Net operating income (3) $ 45,459 $ 42,527 $ 2,932 6.9 %
Stores owned since 12/31/10 (329 stores) (2)
Revenues $ 59,985 $ 56,556 $ 3,429 6.1 %
Expenses 18,376 17,606 770 4.4 %
Net operating income (3) $ 41,609 $ 38,950 $ 2,659 6.8 %
(2) 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.
(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 (2) * 385 stores owned since 12/31/12 (unaudited) January 1, 2014 January 1, 2013
to to Percentage
(dollars in thousands) September 30, 2014 September 30, 2013 Change Change
Revenues:
Rental income $ 199,154 $ 185,164 $ 13,990 7.6 %
Tenant insurance commissions 7,046 5,502 1,544 28.1 %
Other operating income 3,918 3,987 (69 ) -1.7 %
Total operating revenues 210,118 194,653 15,465 7.9 %
Expenses:
Payroll and benefits 18,826 18,471 355 1.9 %
Real estate taxes 21,083 19,479 1,604 8.2 %
Utilities 8,211 7,791 420 5.4 %
Repairs and maintenance 7,509 6,704 805 12.0 %
Office and other operating expense 7,330 7,137 193 2.7 %
Insurance 3,023 3,219 (196 ) -6.1 %
Advertising & yellow pages 1,063 1,159 (96 ) -8.3 %
Total operating expenses 67,045 63,960 3,085 4.8 %
Net operating income (3) $ 143,073 $ 130,693 $ 12,380 9.5 %
YTD Same store move ins 124,646 128,650 (4,004 )
YTD Same store move outs 120,050 122,083 (2,033 )
OTHER DATA Same Store (2) All Stores (4)

2014

2013

2014

2013

Weighted average quarterly occupancy 91.3 % 89.9 % 90.9 % 89.9 %
Occupancy at September 30 90.5 % 89.3 % 90.0 % 89.2 %
Rent per occupied square foot $ 11.71 $ 11.22 $ 12.19 $ 11.21
(4) 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 months ended September 30, 2014:
Beginning balance $ 1,864,637
Property acquisitions 232,763
Improvements and equipment additions:
Expansions 11,099
Roofing, paving, and equipment:
Stabilized stores 9,320
Recently acquired stores 813
Change in construction in progress (Total CIP $8.8 million) (975 )
Dispositions and Impairments (4,523 )
Storage facilities at cost at period end $ 2,113,134

Comparison of Selected G&A Costs (unaudited)

Quarter Ended
September 30, 2014 September 30, 2013
Management and administrative salaries and benefits 5,450 4,976
Internet advertising & marketing 1,330 1,214
Training 208 214
Call center 404 381
Uncle Bob’s Management costs 162 80
Income taxes 352 332
Other administrative expenses (5) 2,135 1,768
$ 10,041 $ 8,965
(5) Other administrative expenses include professional fees, office rent, travel expense, investor relations and miscellaneous other expenses.
September 30, 2014 September 30, 2013
Common shares outstanding 33,708,457 31,977,890
Operating Partnership Units outstanding 198,913 199,163

Exhibit A

Sovran Self Storage, Inc.

Same Store Performance Summary

Three Months Ended September 30, 2014
(unaudited)

Square
Feet

Avg Qtrly
Rent per
Occupied
Square Foot

Avg Quarterly Occupancy
for the Three Months Ended
September 30,

Revenue
for the Three Months
Ended September 30,

Expenses
for the Three Months
Ended September 30,

NOI
for the Three Months
Ended September 30,

State Stores 2014 2013 2014 2013 % Change 2014 2013 % Change 2014 2013 % Change
Alabama 22 1,617 $ 8.70 89.0% 88.1% $ 3,396 $ 3,187 6.6% $ 996 $ 955 4.3% $ 2,400 $ 2,232 7.5%
Arizona 10 669 10.00 86.8% 81.0% 1,557 1,473 5.7% 588 504 16.7% 969 969 0.0%
Connecticut 5 328 18.45 87.8% 93.4% 1,374 1,287 6.8% 385 366 5.2% 989 921 7.4%
Florida 60 3,975 11.55 89.9% 88.7% 10,941 10,122 8.1% 3,415 3,342 2.2% 7,526 6,780 11.0%
Georgia 28 1,949 10.59 92.7% 86.0% 5,107 4,516 13.1% 1,525 1,499 1.7% 3,582 3,017 18.7%
Illinois 9 699 13.54 87.2% 83.5% 2,160 1,947 10.9% 775 996 -22.2% 1,385 951 45.6%
Louisiana 14 823 11.40 90.6% 91.7% 2,232 2,149 3.9% 593 605 -2.0% 1,639 1,544 6.2%
Maine 2 114 13.76 93.8% 89.9% 384 364 5.5% 92 93 -1.1% 292 271 7.7%
Maryland 3 139 16.41 92.1% 89.5% 544 527 3.2% 187 200 -6.5% 357 327 9.2%
Massachusetts 12 656 14.67 91.8% 93.2% 2,333 2,271 2.7% 682 652 4.6% 1,651 1,619 2.0%
Mississippi 12 916 9.71 91.7% 90.6% 2,153 2,067 4.2% 638 604 5.6% 1,515 1,463 3.6%
Missouri 8 515 12.25 90.5% 88.5% 1,493 1,389 7.5% 462 476 -2.9% 1,031 913 12.9%
New Hampshire 4 260 12.01 93.2% 91.5% 762 720 5.8% 224 212 5.7% 538 508 5.9%
New Jersey 2 121 17.87 93.0% 87.5% 525 484 8.5% 199 197 1.0% 326 287 13.6%
New York 28 1,702 14.66 92.3% 92.4% 6,016 5,696 5.6% 1,751 1,676 4.5% 4,265 4,020 6.1%
North Carolina 19 1,155 10.49 93.9% 93.3% 3,003 2,808 6.9% 790 815 -3.1% 2,213 1,993 11.0%
Ohio 16 1,089 10.26 91.7% 90.4% 2,700 2,552 5.8% 784 735 6.7% 1,916 1,817 5.4%
Pennsylvania 4 220 10.31 92.3% 89.2% 543 514 5.6% 176 170 3.5% 367 344 6.7%
Rhode Island 4 206 12.83 91.8% 90.0% 664 639 3.9% 208 225 -7.6% 456 414 10.1%
South Carolina 8 450 10.85 92.2% 90.7% 1,192 1,106 7.8% 395 398 -0.8% 797 708 12.6%
Tennessee 4 291 10.62 91.4% 90.5% 738 702 5.1% 258 244 5.7% 480 458 4.8%
Texas 93 6,620 12.11 93.1% 92.5% 19,515 18,181 7.3% 6,538 6,152 6.3% 12,977 12,029 7.9%
Virginia 18 1,236 11.37 87.1% 86.5% 3,208 3,107 3.3% 955 969 -1.4% 2,253 2,138 5.4%
Portfolio Total 385 25,750 $ 11.71 91.3% 89.9% $ 72,540 $ 67,808 7.0% $ 22,616 $ 22,085 2.4% $ 49,924 $ 45,723 9.2%
Properties owned since 12/31/12 (detail shown above) 385 25,750 11.71 91.3% 89.9% 72,540 67,808 7.0% 22,616 22,085 2.4% 49,924 45,723 9.2%
Properties owned since 12/31/11 357 23,551 11.62 91.4% 91.0% 65,906 62,132 6.1% 20,447 19,605 4.3% 45,459 42,527 6.9%
Properties owned since 12/31/10 329 21,730 11.42 91.6% 90.8% 59,985 56,556 6.1% 18,376 17,606 4.4% 41,609 38,950 6.8%
Dollars in thousands except for average quarterly rent per occupied square foot. Square feet in thousands.
Exhibit B
Sovran Self Storage, Inc.
Debt Maturity Schedule
September 30, 2014
(unaudited)
Current
Maturity Basis of Interest
(dollars in thousands) Date Rate Rate (1) 2014 2015 2016 2017 2018 Thereafter Total
Line of credit Jun-2018 Variable 1.65% $ $ $ $ $ $ $
Term note Apr-2016 Fixed 6.38% 150,000 150,000
Term note Jun-2020 Swapped to fixed 4.02% 125,000 125,000
Term note Jun-2020 Swapped to fixed 3.26% 100,000 100,000
Term note Jun-2020 Swapped to fixed 3.02% 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% 33 134 142 151 160 1,540 2,160
$ 33 $ 134 $ 150,142 $ 151 $ 160 $ 601,540 $ 752,160

(1) Rate as of September 30, 2014 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 2014.

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