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Sovran Self Storage Reports Fourth Quarter Results, Adjusted FFO per Share Increases 8.7%, Issues Guidance for 2015

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Sovran Self Storage, Inc. (NYSE:SSS) , a self storage real estate investment trust (REIT), reported operating results for the quarter and year ended December 31, 2014.

Net income available to common shareholders for the fourth quarter of 2014 was $25.7 million or $0.76 per fully diluted common share. Included in the fourth quarter 2014 net income is a $3.4 million gain related to the sale of a Texas storage facility. For the same period in 2013, net income available to common shareholders was $22.2 million or $0.69 per fully diluted common share.

Funds from operations (FFO) for the quarter were $1.08 per fully diluted common share compared to $0.98 for the same period last year. In the fourth quarter of 2014, the Company incurred net acquisition costs of $1.4 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 fourth quarter of 2013, the Company incurred $1.9 million of acquisition costs and a $0.3 million straight-line rent adjustment. Absent these charges, adjusted FFO per share was $1.13 and $1.04 for the fourth quarter of 2014 and 2013, respectively.

Increased rental rates, controlled operating costs, and a number of successful property tax appeals were the primary contributors to the Company’s strong FFO growth in the quarter.

“2014 was a terrific year for our Company,” said David Rogers, the Company’s CEO. “We acquired a large number of quality stores in excellent markets. Demand has been strong, and we’ve continued to grow customer share and rental rates. We’re looking forward to a great 2015.”

OPERATIONS:

Total revenues increased 17.9% over last year’s fourth quarter while operating costs increased 14.1%, resulting in an NOI (3) increase of 19.6%. Overall occupancy averaged 88.9% for the period, and rental rates averaged $12.19 per sq. ft.

Revenues for the 384 stores wholly owned by the Company since January 1, 2013 increased 6.3% from those of the fourth quarter of 2013, the result of a 60 basis point increase in average occupancy and a 5.2% increase in rental rates.

Same store operating expenses increased 2.5% for the fourth quarter of 2014 compared to the prior year period, primarily the result of increased employee benefits expense and repair and maintenance costs, offset by less than expected increases in property taxes.

Consequently, same store net operating income increased 8.1% this period over the fourth quarter of 2013.

General and administrative expenses increased by approximately $2.2 million over the same period in 2013, primarily due to increases in personnel costs associated with operating 40 more stores during the quarter than at this time last year and increased employee benefits expense.

During the fourth quarter of 2014, the Company experienced same store revenue and NOI growth in 22 of the 25 states in which it operates. The stores with the strongest revenue impact include those in Texas, Florida, Georgia, Alabama, and Illinois. Of particular interest, revenue at the Company’s 40 same store pool of properties in the Houston, TX metro area increased by 8.5% over that of the 4th quarter of 2013.

For the full year 2014, same store revenues increased by 7.5% and same store NOI improved by 9.1%. Same store occupancy at December 31, 2014 increased by 60 basis points to 89.0% from that of 2013.

PROPERTIES:

The Company acquired five self storage facilities for a total cost of approximately $55 million in the fourth quarter. The properties total nearly 470,000 square feet and are all located in markets where the Company already has a presence: Chicago, IL; New Orleans, LA; Austin and Houston, TX; and Orlando, FL.

In November, the Company acquired a portfolio of 11 properties in Houston, TX on behalf of one of its previously formed joint ventures. The properties contain over 940,000 sq. ft. of net rentable storage space and the Company contributed approximately $20 million to the joint venture as its share of equity required to fund the purchase.

During the quarter, the Company sold one of its Houston, TX stores for net proceeds of $6.1 million resulting in a gain of $3.4 million.

For the full year 2014, the Company acquired 33 properties at a cost of $291.9 million for its own account and added 14 properties at a cost of $187.2 million to a previously formed joint venture. It sold two properties in Houston for approximately $11.0 million.

Subsequent to quarter end, the Company purchased the four properties on Long Island and in southern Connecticut that it had been leasing since late 2013 for a previously negotiated price of $120 million. It also purchased another facility in Chicago with approximately 96,000 net rentable sq. ft. for $6.8 million. Since entering the Chicago market in mid-2012, the Company has amassed a total of 14 properties including one under management for an unrelated third party.

CAPITAL TRANSACTIONS:

Illustrated below are key financial ratios at December 31, 2014:

  • Debt to Enterprise Value (at $87.22/share) 21.1%
  • Debt to Book Cost of Storage Facilities 36.8%
  • Debt to EBITDA Ratio 4.4x
  • Debt Service Coverage 5.1x

At December 31, 2014, the Company had approximately $8.5 million of cash on hand, and $250 million available on its line of credit.

In December, the Company announced a refinancing of its Line of Credit and Bank Term Notes. As part of the new arrangement, the Company’s revolving credit limit increased from $175 million to $300 million, and the maturity date was extended to December 10, 2019. The interest rate on the revolving credit facility was reduced from 1.50% over LIBOR to 1.30% over LIBOR, based on the Company’s current investment grade credit of BBB-. The facility fee was unchanged at 0.20%.

The arrangement also reduced the interest rate on the Company’s $325 million term notes from 1.65% over LIBOR to 1.40% over LIBOR based on the Company’s current investment grade credit rating. The maturity date for the $325 million of bank term notes remains June 4, 2020.

The agreement provides the Company an option to increase the facility by an additional $225 million.

The Company issued 250,000 shares of its common stock via its previously announced ATM program during the quarter at an average price of $84.69 per share, resulting in net proceeds of $20.9 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 October, the Company issued 42,017 shares at an average price of $79.69 through its Dividend Reinvestment Plan.

COMMON STOCK DIVIDEND:

Subsequent to quarter end, the Company’s Board of Directors authorized a 10% increase in its quarterly dividend to $0.75 per share or $3.00 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 first quarter and full year 2015:

Same Store
Projected Increases Over 2014

1Q 2015

Full Year 2015
Revenue 5.0 – 6.0% 5.0 – 6.0%
Operating Costs (excluding property taxes) 3.0 – 4.0% 3.0 – 4.0%
Property Taxes 2.0 – 3.0% 5.0 – 6.0%
Total Operating Expenses 2.5 – 3.5% 3.5 – 4.5%
Net Operating Income 6.5 – 7.5% 6.0 – 7.0%

The Houston market comprises approximately 11.0% of the 2015 forecasted NOI of the Company’s 432 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 $25-30 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 $100 million of accretive acquisitions in 2015 in addition to the aforementioned $120 million purchase of the four properties it had been leasing. Per share FFO guidance is projected after adding back third party acquisition costs. Purchases of these 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 are expected to be approximately $45 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 December 31, 2014, the Company had 34.1 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 2015 to be approximately $4.76 to $4.82 per share, and between $1.06 and $1.08 per share for the first 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 Fourth Quarter Earnings Release Conference Call at 9:00 a.m. Eastern Time on Thursday, February 19, 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 a period of 90 days; a telephone replay will also be available for 72 hours by calling 877.660.6853 and entering conference ID 13599559.

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”(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)
December 31, December 31,
(dollars in thousands) 2014 2013
Assets
Investment in storage facilities:
Land $ 397,642 $ 312,053
Building, equipment and construction in progress 1,780,341 1,552,584
2,177,983 1,864,637
Less: accumulated depreciation (411,701 ) (366,472 )
Investment in storage facilities, net 1,766,282 1,498,165
Cash and cash equivalents 8,543 9,524
Accounts receivable 5,758 5,119
Receivable from joint venture 583 883
Investment in joint venture 57,803 30,391
Prepaid expenses 6,533 5,978
Intangible asset – in-place customer leases (net of accumulated
amortization of $17,662 in 2014 and $13,551 in 2013) 2,204 1,092
Fair value of interest rate swap agreements 794
Other assets 7,094 9,929
Total Assets $ 1,854,800 $ 1,561,875
Liabilities
Line of credit $ 49,000 $ 49,000
Term notes 750,000 575,000
Accounts payable and accrued liabilities 43,551 37,741
Deferred revenue 7,290 6,708
Fair value of interest rate swap agreements 13,341 7,523
Mortgages payable 2,127 2,254
Total Liabilities 865,309 678,226
Noncontrolling redeemable Operating Partnership Units at redemption value 13,622 12,940
Equity
Common stock 353 337
Additional paid-in capital 1,183,388 1,066,399
Accumulated deficit (167,692 ) (162,450 )
Accumulated other comprehensive loss (13,005 ) (6,402 )
Treasury stock at cost (27,175 ) (27,175 )
Total Shareholders’ Equity 975,869 870,709
Total Liabilities and Equity $ 1,854,800 $ 1,561,875
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
October 1, 2014 October 1, 2013
to to
(dollars in thousands, except share data) December 31, 2014 December 31, 2013
Revenues
Rental income $ 78,605 $ 66,387
Other operating income 4,811 4,604
Management fee income 1,272 1,074
Acquisition fee income 241 -
Total operating revenues 84,929 72,065
Expenses
Property operations and maintenance 18,331 16,028
Real estate taxes 7,664 6,761
General and administrative 10,393 8,194
Acquisition related costs 1,432 1,866
Operating leases of storage facilities 1,997 1,331
Depreciation and amortization 12,580 10,740
Amortization of in-place customer leases 1,389 641
Total operating expenses 53,786 45,561
Income from operations 31,143 26,504
Other income (expense)
Interest expense (A) (9,247 ) (7,173 )
Interest income 9 37
Gain on sale of storage facility 3,399
Equity in income of joint ventures 533 531
Income from continuing operations 25,837 19,899
Income from discontinued operations - 2,472
Net income 25,837 22,371
Net income attributable to noncontrolling interests (144 ) (138 )
Net income attributable to common shareholders $ 25,693 $ 22,233
Earnings per common share attributable to common shareholders – basic
Continuing operations $ 0.76 $ 0.62
Discontinued operations $ - $ 0.08
Earnings per share – basic $ 0.76 $ 0.70
Earnings per common share attributable to common shareholders – diluted
Continuing operations $ 0.76 $ 0.61
Discontinued operations $ - $ 0.08
Earnings per share – diluted $ 0.76 $ 0.69
Common shares used in basic
earnings per share calculation 33,656,369 31,954,775
Common shares used in diluted
earnings per share calculation 33,845,905 32,107,986
Dividends declared per common share $ 0.68 $ 0.53
(A) Interest expense for the three months ending December 31 consists of the following
Interest expense $ 9,007 $ 6,978
Amortization of deferred financing fees 240 195
Total interest expense $ 9,247 $ 7,173
January 1, 2014 January 1, 2013
to to
(dollars in thousands, except share data) December 31, 2014 December 31, 2013
Revenues
Rental income $ 302,044 $ 253,384
Other operating income 18,934 15,906
Management fee income 4,722 4,217
Acquisition fee income 380 -
Total operating revenues 326,080 273,507
Expenses
Property operations and maintenance 69,763 61,316
Real estate taxes 32,097 26,496
General and administrative 40,792 34,939
Acquisition related costs 7,359 3,129
Operating leases of storage facilities 7,987 1,331
Depreciation and amortization 47,637 41,910
Amortization of in-place customer leases 4,112 3,323
Total operating expenses 209,747 172,444
Income from operations 116,333 101,063
Other income (expense)
Interest expense (A) (34,578 ) (32,000 )
Interest income 40 40
Gain on sale of storage facilities 5,176
Gain on sale of real estate 421
Equity in income of joint ventures 2,086 1,948
Income from continuing operations 89,057 71,472
Income from discontinued operations - 3,123
Net income 89,057 74,595
Net income attributable to noncontrolling interests (526 ) (469 )
Net income attributable to common shareholders $ 88,531 $ 74,126
Earnings per common share attributable to common shareholders – basic
Continuing operations $ 2.68 $ 2.27
Discontinued operations $ - $ 0.10
Earnings per share – basic $ 2.68 $ 2.37
Earnings per common share attributable to common shareholders – diluted
Continuing operations $ 2.67 $ 2.26
Discontinued operations $ - $ 0.10
Earnings per share – diluted $ 2.67 $ 2.36
Common shares used in basic
earnings per share calculation 33,018,716 31,297,126
Common shares used in diluted
earnings per share calculation 33,190,673 31,453,283
Dividends declared per common share $ 2.72 $ 2.02
(A) Interest expense for the year ending December 31 consists of the following
Interest expense $ 33,719 $ 31,166
Amortization of deferred financing fees 859 834
Total interest expense $ 34,578 $ 32,000
COMPUTATION OF FUNDS FROM OPERATIONS (FFO) (1) – (unaudited)
October 1, 2014 October 1, 2013
to to
(dollars in thousands, except share data) December 31, 2014 December 31, 2013
Net income attributable to common shareholders $ 25,693 $ 22,233
Net income attributable to noncontrolling interests 144 138
Depreciation of real estate and amortization of intangible
assets exclusive of deferred financing fees 13,730 11,158
Depreciation of real estate included in discontinued operations 47
Depreciation and amortization from unconsolidated joint ventures 500 377
Gain on sale of real estate (3,399 ) (2,431 )
Funds from operations allocable to noncontrolling
interest in Operating Partnership (205 ) (194 )
Funds from operations available to common shareholders 36,463 31,328
FFO per share – diluted $ 1.08 $ 0.98
Adjustments to FFO
Acquisition costs expensed 1,432 1,866
Company’s share of acquisition costs expensed by Sovran HHF Storage Holdings 182
Acquisition fee income from Sovran HHF Storage Holdings (240 )
Operating leases straight line rent adjustment 497 331
Funds from operations resulting from non-recurring items allocable to noncontrolling
interest in Operating Partnership (10 ) (14 )
Adjusted funds from operations available to common shareholders 38,324 33,511
Adjusted FFO per share – diluted $ 1.13 $ 1.04
Common shares – diluted 33,845,905 32,107,986
January 1, 2014 January 1, 2013
to to
(dollars in thousands, except share data) December 31, 2014 December 31, 2013
Net income attributable to common shareholders $ 88,531 $ 74,126
Net income attributable to noncontrolling interests 526 469
Depreciation of real estate and amortization of intangible
assets exclusive of deferred financing fees 50,827 44,369
Depreciation of real estate included in discontinued operations 313
Depreciation and amortization from unconsolidated joint ventures 1,666 1,496
Gain on sale of real estate (5,176 ) (2,852 )
Funds from operations allocable to noncontrolling
interest in Operating Partnership (806 ) (742 )
Funds from operations available to common shareholders 135,568 117,179
FFO per share – diluted $ 4.09 $ 3.72
Adjustments to FFO
Acquisition costs expensed 7,359 3,129
Company’s share of acquisition costs expensed by Sovran HHF Storage Holdings 367 331
Acquisition fee income from Sovran HHF Storage Holdings (376 )
Operating leases straight line rent adjustment 1,987
Funds from operations resulting from non-recurring items allocable to noncontrolling
interest in Operating Partnership (56 ) (22 )
Adjusted funds from operations available to common shareholders 144,849 120,617
Adjusted FFO per share – diluted $ 4.37 $ 3.83
Common shares – diluted 33,190,673 31,453,283
(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) * 384 stores owned since 12/31/12 (unaudited) October 1, 2014 October 1, 2013
to to

Percentage

(dollars in thousands) December 31, 2014 December 31, 2013

Change

Change

Revenues:
Rental income $ 67,210 $ 63,045 $ 4,165 6.6 %
Tenant insurance commissions 2,383 1,996 387 19.4 %
Other operating income 1,129 1,482 (353 ) -23.8 %
Total operating revenues 70,722 66,523 4,199 6.3 %
Expenses:
Payroll and benefits 6,396 6,078 318 5.2 %
Real estate taxes 6,296 6,260 36 0.6 %
Utilities 2,411 2,378 33 1.4 %
Repairs and maintenance 3,045 2,764 281 10.2 %
Office and other operating expense 2,475 2,442 33 1.4 %
Insurance 976 1,098 (122 ) -11.1 %
Advertising & yellow pages 330 371 (41 ) -11.1 %
Total operating expenses 21,929 21,391 538 2.5 %
Net operating income (3) $ 48,793 $ 45,132 $ 3,661 8.1 %
QTD Same store move ins 34,377 37,155 (2,778 )
QTD Same store move outs 37,813 38,156 (343 )
OTHER COMPARABLE QUARTERLY SAME STORE DATA * (unaudited) October 1, 2014 October 1, 2013
to to Percentage
December 31, 2014 December 31, 2013 Change Change
Stores owned since 12/31/11 (356 stores) (2)
Revenues $ 64,245 $ 60,787 $ 3,458 5.7 %
Expenses 20,136 19,734 402 2.0 %
Net operating income (3) $ 44,109 $ 41,053 $ 3,056 7.4 %
Stores owned since 12/31/10 (328 stores) (2)
Revenues $ 58,431 $ 55,263 $ 3,168 5.7 %
Expenses 18,066 17,544 522 3.0 %
Net operating income (3) $ 40,365 $ 37,719 $ 2,646 7.0 %
(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) ** 384 stores owned since 12/31/12 (unaudited) January 1, 2014 January 1, 2013
to to Percentage
(dollars in thousands) December 31, 2014 December 31, 2013

Change

Change

Revenues:
Rental income $ 265,788 $ 247,678 $ 18,110 7.3 %
Tenant insurance commissions 9,415 7,487 1,928 25.8 %
Other operating income 5,011 5,436 (425 ) -7.8 %
Total operating revenues 280,214 260,601 19,613 7.5 %
Expenses:
Payroll and benefits 25,178 24,505 673 2.7 %
Real estate taxes 27,289 25,671 1,618 6.3 %
Utilities 10,608 10,155 453 4.5 %
Repairs and maintenance 10,540 9,448 1,092 11.6 %
Office and other operating expense 9,783 9,555 228 2.4 %
Insurance 3,987 4,303 (316 ) -7.3 %
Advertising & yellow pages 1,391 1,528 (137 ) -9.0 %
Total operating expenses 88,776 85,165 3,611 4.2 %
Net operating income (3) $ 191,438 $ 175,436 $ 16,002 9.1 %
YTD Same store move ins 159,274 166,116 (6,842 )
YTD Same store move outs 155,914 158,305 (2,391 )
** See exhibit B for supplemental year to date same store data.
OTHER DATA Same Store (2) All Stores (4)

2014

2013

2014

2013

Weighted average quarterly occupancy

89.4%

88.8%

88.9%

88.7%

Occupancy at December 31

89.0%

88.4%

88.4%

88.4%

Rent per occupied square foot $11.72 $11.14 $12.19 $11.37
(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 year ended December 31, 2014:
Beginning balance $ 1,864,637
Property acquisitions 286,691
Improvements and equipment additions:
Expansions 19,731
Roofing, paving, and equipment:
Stabilized stores 17,571
Recently acquired stores 2,835
Change in construction in progress (Total CIP $4.8 million) (5,040 )
Dispositions and Impairments (8,442 )
Storage facilities at cost at period end $ 2,177,983

Comparison of Selected G&A Costs (unaudited)

Quarter Ended Year-to-Date
December 31, 2014 December 31, 2013 December 31, 2014 December 31, 2013
Management and administrative salaries and benefits 5,995 4,336 22,337 18,699
Internet advertising & marketing 1,280 1,155 5,570 4,803
Training 287 407 1,046 1,310
Call center 444 409 1,651 1,573
Uncle Bob’s Management costs 51 105 448 508
Income taxes (27 ) (58 ) 927 936
Other administrative expenses (5) 2,363 1,840 8,813 7,110
$ 10,393 $ 8,194 $ 40,792 $ 34,939
(5) Other administrative expenses include professional fees, office rent, travel expense, investor relations and miscellaneous other expenses.
December 31, 2014 December 31, 2013
Common shares outstanding 34,105,955 32,532,991
Operating Partnership Units outstanding 155,484 198,913
Exhibit A
Sovran Self Storage, Inc.
Same Store Performance Summary
Three Months Ended December 31, 2014
(unaudited)

Avg Qtrly

Avg Quarterly Occupancy

Revenue

Expenses for the

NOI

Rent per

for the Three Months Ended

for the Three Months

Three Months

for the Three Months

Square Occupied December 31,

Ended December 31,

Ended December 31,

Ended December 31,

State Stores

Feet

Square Foot

2014 2013 2014 2013 % Change 2014 2013 % Change 2014 2013 % Change
Alabama 22 1,617 $ 8.71 86.0 % 86.6 % $ 3,249 $ 3,019 7.6 % $ 952 $ 898 6.0 % $ 2,297 $ 2,121 8.3 %
Arizona 10 669 9.94 87.2 % 80.5 % 1,554 1,470 5.7 % 418 374 11.8 % 1,136 1,096 3.6 %
Connecticut 5 328 18.37 88.4 % 91.7 % 1,370 1,268 8.0 % 406 396 2.5 % 964 872 10.6 %
Florida 60 3,971 11.61 89.4 % 88.6 % 10,915 10,181 7.2 % 3,197 3,169 0.9 % 7,718 7,012 10.1 %
Georgia 28 1,949 10.60 90.8 % 86.4 % 4,995 4,524 10.4 % 1,302 1,303 -0.1 % 3,693 3,221 14.7 %
Illinois 9 686 13.59 87.0 % 83.5 % 2,127 1,933 10.0 % 743 621 19.6 % 1,384 1,312 5.5 %
Louisiana 14 813 11.43 88.9 % 90.4 % 2,187 2,117 3.3 % 600 541 10.9 % 1,587 1,576 0.7 %
Maine 2 114 14.04 86.1 % 88.9 % 359 337 6.5 % 113 114 -0.9 % 246 223 10.3 %
Maryland 3 139 16.67 91.5 % 88.6 % 547 516 6.0 % 180 159 13.2 % 367 357 2.8 %
Massachusetts 12 655 14.58 88.6 % 90.2 % 2,229 2,196 1.5 % 688 717 -4.0 % 1,541 1,479 4.2 %
Mississippi 12 916 9.81 89.9 % 89.6 % 2,128 2,039 4.4 % 614 572 7.3 % 1,514 1,467 3.2 %
Missouri 8 515 12.30 87.1 % 86.0 % 1,441 1,350 6.7 % 446 410 8.8 % 995 940 5.9 %
New Hampshire 4 260 12.18 90.9 % 91.1 % 751 706 6.4 % 239 213 12.2 % 512 493 3.9 %
New Jersey 2 120 18.35 91.3 % 88.7 % 526 476 10.5 % 220 204 7.8 % 306 272 12.5 %
New York 28 1,717 14.62 88.6 % 91.3 % 5,822 5,530 5.3 % 1,787 1,726 3.5 % 4,035 3,804 6.1 %
North Carolina 19 1,154 10.50 92.0 % 91.7 % 2,935 2,758 6.4 % 817 762 7.2 % 2,118 1,996 6.1 %
Ohio 16 1,087 10.19 90.1 % 88.6 % 2,624 2,494 5.2 % 925 777 19.0 % 1,699 1,717 -1.0 %
Pennsylvania 4 220 10.30 88.0 % 90.5 % 518 511 1.4 % 153 168 -8.9 % 365 343 6.4 %
Rhode Island 4 206 12.88 89.9 % 89.1 % 653 620 5.3 % 227 221 2.7 % 426 399 6.8 %
South Carolina 8 448 10.76 89.5 % 88.8 % 1,145 1,098 4.3 % 433 349 24.1 % 712 749 -4.9 %
Tennessee 4 291 10.73 89.0 % 88.8 % 723 688 5.1 % 235 245 -4.1 % 488 443 10.2 %
Texas 92 6,568 12.12 91.0 % 90.5 % 18,882 17,668 6.9 % 6,283 6,546 -4.0 % 12,599 11,122 13.3 %
Virginia 18 1,226 11.10 85.2 % 85.1 % 3,042 3,024 0.6 % 951 906 5.0 % 2,091 2,118 -1.3 %
Portfolio Total 384 25,669 $ 11.72 89.4 % 88.8 % $ 70,722 $ 66,523 6.3 % $ 21,929 $ 21,391 2.5 % $ 48,793 $ 45,132 8.1 %
Properties owned since 12/31/12 (detail shown above) 384 25,669 11.72 89.4 % 88.8 % 70,722 66,523 6.3 % 21,929 21,391 2.5 % 48,793 45,132 8.1 %
Properties owned since 12/31/11 356 23,485 11.62 89.5 % 89.5 % 64,245 60,787 5.7 % 20,136 19,734 2.0 % 44,109 41,053 7.4 %
Properties owned since 12/31/10 328 21,664 11.43 89.6 % 89.3 % 58,431 55,263 5.7 % 18,066 17,544 3.0 % 40,365 37,719 7.0 %
Dollars in thousands except for average quarterly rent per occupied square foot. Square feet in thousands.
Exhibit B
Sovran Self Storage, Inc.
Same Store Performance Summary
Twelve Months Ended December 31, 2014
(unaudited)

Revenue

Expenses

NOI

for the Twelve Months

for the Twelve Months

for the Twelve Months

Square Ended December 31, Ended December 31,

Ended December 31,

State Stores

Feet

2014 2013 % Change 2014 2013 % Change 2014 2013 % Change
Alabama 22 1,617 $ 12,990 $ 12,193 6.5 % $ 3,816 $ 3,697 3.2 % $ 9,174 $ 8,496 8.0 %
Arizona 10 669 6,110 5,677 7.6 % 1,975 1,847 6.9 % 4,135 3,830 8.0 %
Connecticut 5 328 5,335 5,016 6.4 % 1,629 1,544 5.5 % 3,706 3,472 6.7 %
Florida 60 3,971 42,699 39,469 8.2 % 13,160 12,748 3.2 % 29,539 26,721 10.5 %
Georgia 28 1,949 19,684 17,344 13.5 % 5,757 5,582 3.1 % 13,927 11,762 18.4 %
Illinois 9 686 8,372 7,440 12.5 % 3,294 3,193 3.2 % 5,078 4,247 19.6 %
Louisiana 14 813 8,775 8,351 5.1 % 2,314 2,238 3.4 % 6,461 6,113 5.7 %
Maine 2 114 1,462 1,365 7.1 % 415 416 -0.2 % 1,047 949 10.3 %
Maryland 3 139 2,128 2,069 2.9 % 710 676 5.0 % 1,418 1,393 1.8 %
Massachusetts 12 655 9,026 8,686 3.9 % 2,876 2,797 2.8 % 6,150 5,889 4.4 %
Mississippi 12 916 8,399 8,053 4.3 % 2,397 2,326 3.1 % 6,002 5,727 4.8 %
Missouri 8 515 5,762 5,375 7.2 % 1,863 1,820 2.4 % 3,899 3,555 9.7 %
New Hampshire 4 260 2,958 2,757 7.3 % 908 845 7.5 % 2,050 1,912 7.2 %
New Jersey 2 120 2,090 1,836 13.8 % 826 808 2.2 % 1,264 1,028 23.0 %
New York 28 1,717 23,229 21,883 6.2 % 7,321 6,965 5.1 % 15,908 14,918 6.6 %
North Carolina 19 1,154 11,604 10,714 8.3 % 3,156 3,084 2.3 % 8,448 7,630 10.7 %
Ohio 16 1,087 10,407 9,798 6.2 % 3,284 2,996 9.6 % 7,123 6,802 4.7 %
Pennsylvania 4 220 2,121 2,025 4.7 % 685 661 3.6 % 1,436 1,364 5.3 %
Rhode Island 4 206 2,579 2,446 5.4 % 955 890 7.3 % 1,624 1,556 4.4 %
South Carolina 8 448 4,603 4,249 8.3 % 1,588 1,492 6.4 % 3,015 2,757 9.4 %
Tennessee 4 291 2,860 2,737 4.5 % 978 968 1.0 % 1,882 1,769 6.4 %
Texas 92 6,568 74,557 69,087 7.9 % 25,092 23,859 5.2 % 49,465 45,228 9.4 %
Virginia 18 1,226 12,464 12,031 3.6 % 3,777 3,713 1.7 % 8,687 8,318 4.4 %
Portfolio Total 384 25,669 $ 280,214 $ 260,601 7.5 % $ 88,776 $ 85,165 4.2 % $ 191,438 $ 175,436 9.1 %
Dollars in thousands. Square feet in thousands.

Exhibit C

Sovran Self Storage, Inc.
Debt Maturity Schedule
December 31, 2014
(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 1.46 % $ $ $ $ $ 49,000 $ $ 49,000
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 % 134 142 151 160 170 1,370 2,127
$ 134 $ 150,142 $ 151 $ 160 $ 49,170 $ 601,370 $ 801,127
(1) Rate as of December 31, 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 2015.

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