Self-Storage REITs Declare Third-Quarter 2015 Stock Dividends

The four publicly traded U.S.-based self-storage real estate investment trusts (REITs)—CubeSmart, Extra Space Storage Inc., Public Storage Inc. and Sovran Self Storage Inc.—have declared dividends for the third quarter of 2015.

CubeSmart

The board of trustees for CubeSmart declared a dividend of $0.16 per common share for the period ending Sept. 30, which is equal to that of the previous quarter. It’s payable on Oct. 15 to common shareholders of record on Oct. 1.

The board also declared a quarterly dividend of $0.484375 for the 7.75 percent Series A Cumulative Redeemable Preferred Shares payable on Oct. 15 to holders of record on Oct. 1.

CubeSmart recently released its second-quarter 2015 financial statement, reporting funds from operation (FFO) per share of $0.31 during the quarter, a 14.8 percent year-over-year increase. Same-store net operating income (NOI) at its 361 facilities grew 8.4 percent year over year. The company attributed this to 6.8 percent growth in revenue and a 3.3 percent increase in property operating expenses.

CubeSmart owns or manages 620 self-storage facilities across the United States. Its operating portfolio comprises more than 40.9 million square feet.

Extra Space

The board of directors for Extra Space announced a quarterly dividend of $0.59 per share on the company's common stock for the third quarter. The dividend is equal to the previous quarter and payable on Sept. 30 to stockholders of record at the close of business on Sept. 15.

The REIT recently reported same-store revenue increased 9.4 percent and NOI rose 12.1 percent compared to the same period in 2014. FFO was 72 cents per diluted share, resulting in 17.2 percent growth compared to the second quarter the previous year.

Headquartered in Salt Lake City, Extra Space owns or operates 1,147 self-storage properties in 35 states; Washington, D.C.; and Puerto Rico. The company’s properties comprise approximately 770,000 units and 85.1 million square feet of rentable space.

Public Storage

Public Storage previously announced its quarterly dividend of $1.70 per common share, which is equal to that of the second quarter. The REIT also declared dividends with respect to its various series of preferred shares. All dividends are payable on Sept. 30 to stockholders of record on Sept. 15.

In its recent financial statement, the company announced that revenue for same-store facilities increased 6.8 percent, or $31 million, in the second quarter, as compared to the same period in 2014. Cost of operations for the same-store facilities increased 1.1 percent, or $1.4 million, year over year. FFO was $2.15 per diluted common share, compared to $1.99 for the same period the previous year. NOI increased $44.8 million, including $29.6 million for same-store facilities.

Based in Glendale, Calif., Public Storage has interests in 2,262 self-storage facilities in 38 states, with approximately 147 million net rentable square feet. Operating under the Shurgard brand name, the company also has 216 facilities in seven European countries, with approximately 11 million net rentable square feet.

Sovran Self Storage

Sovran, which operates the Uncle Bob’s Self Storage brand, previously announced a quarterly dividend of $0.85 cents per common stock, up from $0.75 the previous quarter. The dividend was paid on July 27 to shareholders of record on July 17. The annualized dividend was $3.40 per share, which, based on the REIT’s June 30 closing share price, equated to an annual rate of approximately 3.9 percent.

In its second-quarter financial report, Sovran announced that total revenue increased 12.8 percent year over year, while operating costs increased 9.9 percent, resulting in an NOI increase of 14.2 percent. Same-store NOI increased 7.8 percent year over year. FFO for the second quarter was $1.22 per fully diluted common share, compared to $1 for the same period the previous year.

Sovran, which operates facilities under the brand Uncle Bob's Self Storage, operates more than 500 facilities in 25 states, with a large presence in Texas.