Self-storage property-management firms Absolute Storage Management (ASM) and Storage Investment Management Inc. (SIMI) have released operating results for the second quarter that ended June 30. Both companies showed improvement in same-store revenue over the previous year.
ASM operated 85 properties as of July 28. Its same-store, year-over-year property pool has grown to 44 properties. This list comprises properties that are established, leased and stable to avoid inflating the growth percentages, according to a company press release.
The 44-property pool showed 8.8 percent year-over year growth for the second quarter. The improvement is a result of increases across all the income categories as well as reduced discounting, the release stated.
In addition, square-foot occupancy rates in June increased 1.4 percent over the same month in 2014, rising from 86.3 percent to 87.8 percent. The growth was a result of increased leasing activity and decreased vacates, the release stated. The company’s gross potential income rose by 6.9 percent in June compared to the previous year.
“We had a solid second quarter including a 6.9 percent rise in gross potential income. We’re finally seeing our competitive set increasing their asking rents after years of relatively flat growth,” said Michael Haugh, president of ASM. The company is focusing on driving street rates higher to realize year-over-year growth. It relies heavily on its property managers to be the driving force and trains them on how to recognize signs in their markets, such as market elasticity and flexibility, according to the release.
SIMI, a privately held company that manages 28 properties in the Northeast, released a comparison of revenue, net operating income (NOI) and occupancy from the first half of 2015 to the same period in 2014. The company reported a revenue increase of 7.36 percent and an NOI increase 7.05 percent. It also registered a 4.38 percent increase in occupancy.
Snow-removal expenses were high for SIMI properties and had a “significant impact” on operating expenses, according to a press release.
Founded in 2002, ASM owns and manages self-storage facilities throughout the Southeast, operating 85 properties in 13 states. The company is actively seeking to add additional properties to its portfolio through traditional third-party management relationships and joint-venture/acquisition opportunities. Headquartered in Memphis, Tenn., it has regional offices in Atlanta; Charlotte, N.C.; and Jackson, Miss.
Headquartered in New York, SIMI is led by principals Charlie Fritts, president, and David Inman, chief operating officer, who have a combined 75 years of self-storage industry experience. The company manages facilities in Connecticut, Maine, Massachusetts, New Jersey, New York, Pennsylvania and Rhode Island.
