Global Self Storage Inc., a self-storage real estate investment trust (REIT), has released its financial statement for the quarter and full year that ended on Dec. 31, 2017. During the fourth quarter, the company’s combined-store revenue increased 24.9 percent to $1.9 million, with net operating income (NOI) growing 8.7 percent to $983,000, compared to the same period in 2016. Net leasable space for its entire portfolio decreased .8 percent to 748,000 square feet.
Same-store revenue increased 8.1 percent to $1.1 million, while NOI decreased 12.5 percent to $554,000, compared to the same period in 2016. Same-store occupancy was 91.2 percent as of Dec. 31, up from 90.8 percent the previous year.
The fourth-quarter results generally trailed the company’s performance through the full fiscal year. Combined-store revenue increased 42.4 percent to $7.5 million, with NOI growing 40.2 percent to $4.3 million, compared to all of 2016. Same-store revenue increased 8.2 percent to $4.5 million, while NOI grew 7.5 percent to $2.7 million, compared to the previous year.
The REIT reported net losses of $21,000 for the fourth quarter and $146,000 for the fiscal year. Adjusted funds from operation (FFO) total 4 cents per common stock for the quarter, down from 5 cents year over year. For all of 2017, adjusted FFO was 21 cents per common share, up from 16 cents in 2016.
On March 1, the company declared a quarterly dividend of $0.065 per common share, which is equal to last quarter. For the full year, the company paid dividends of 26 cents per common share, which is consistent with the previous fiscal year.
"Our revenue rate-management program; ability to attract high-quality tenants; and focus on secondary and tertiary markets in the Midwest, Northeast and mid-Atlantic drove our strong results, and more importantly, set the framework for how we plan to grow the business in 2018," said Mark C. Winmill, president and CEO. "While our focus for the year remains on improving our current operations and opportunistically expanding leasable square feet, we will also be looking to expand our self-storage portfolio through acquisitions when the timing is right.”
Global will pursue acquisition opportunities of underperforming facilities in its target markets, Winmill said. "Ultimately, by focusing on organic and inorganic growth, we believe we are well-positioned to successfully scale the business and drive higher funds from operation, which should generate greater value for our shareholders in the near- and long-term," he added.
Founded in 1983, Global Self Storage focuses on the acquisition, development, operation, ownership and redevelopment of storage facilities in the United States. Through its wholly owned subsidiaries, it currently owns and operates 11 properties in Connecticut, Illinois, Indiana, New York, Ohio, Pennsylvania and South Carolina. Its portfolio comprises 748,000 rentable square feet. The company changed its name from Self Storage Group Inc. in January 2016.
Source:
Nasdaq, Global Self Storage Reports Fourth Quarter and Full Year 2017 Results
