Self-Storage REITs, Jernigan Capital Declare Fourth-Quarter 2015 Stock Dividends

The four largest 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 fourth quarter of 2015. Jernigan Capital Inc., a merchant bank and advisory firm serving the self-storage industry, also announced its fourth-quarter dividend.

CubeSmart

The board of trustees for CubeSmart declared a dividend of $0.21 per common share for the period ending Dec. 31, which is a 31 percent increase from the previous quarter. It’s payable on Jan. 15, 2016 to common shareholders of record on Jan. 4. The board also declared a quarterly dividend of $0.484375 for the 7.75 percent Series A Cumulative Redeemable Preferred Shares payable on Jan. 15 to holders of record on Jan. 4.

CubeSmart recently released its third-quarter 2015 financial statement, reporting funds from operation (FFO) per share of $0.34 during the quarter, a 21.4 percent year-over-year increase. Same-store net operating income (NOI) at its 361 facilities grew 9.3 percent year over year. The company attributed this to 7.4 percent growth in revenue and a 3.2 percent increase in property operating expenses.

CubeSmart owns or manages 629 self-storage facilities across the United States. Its operating portfolio comprises 42 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 fourth quarter. The dividend is equal to the previous quarter and payable on Dec. 31 to stockholders of record at the close of business on Dec. 15.

The REIT recently reported same-store revenue increased 9.9 percent and NOI rose 12.6 percent compared to the same period in 2014. FFO was 81 cents per diluted share, resulting in 12.5 percent growth compared to the third quarter of the previous year.

Headquartered in Salt Lake City, Extra Space owns or operates 1,335 self-storage properties in 36 states; Washington, D.C.; and Puerto Rico. The company’s properties comprise approximately 885,000 units and 99.8 million square feet of rentable space.

Jernigan Capital

Jernigan Capital Inc. has declared a fourth-quarter dividend of $0.35 per share, payable on Jan. 15, 2016 to stockholders of record on Jan. 1. The dividend is equal to the one issued for the third quarter.

In its third-quarter financial statement, the company said it closed on $64.4 million in loan commitments, including several self-storage development loans for $48.7 million. It funded about $39 million of loan principal, recognizing $578,000 of interest income during the quarter.

Jernigan Capital is a commercial real estate finance company that provides financing to private developers, operators and owners of self-storage facilities. The company offers financing for acquisition, ground-up construction, major redevelopment or refinancing. The firm intends to be taxed as a REIT and is externally managed by JCap Advisors LLC.

Public Storage

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

In its recent financial statement, the company announced that revenue for same-store facilities increased 6.7 percent, or $31.9 million, in the third quarter, as compared to the same period in 2014. Cost of operations for the same-store facilities increased 1.9 percent, or $2.4 million, year over year. FFO was $2.27 per diluted common share, compared to $2.08 for the same period the previous year. NOI increased $41.6 million, including $29.5 million for same-store facilities.

Based in Glendale, Calif., Public Storage has interests in 2,266 self-storage facilities in 38 states, with approximately 147 million net rentable square feet. Operating under the Shurgard brand name, the company also has 217 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, which was equal to the previous quarter. The dividend was paid on Oct. 26 to shareholders of record on Oct. 16. The annualized dividend was $3.40 per share, which, based on the REIT’s Oct. 1 closing share price, equated to an annual rate of approximately 3.6 percent.

In its third-quarter financial report, Sovran announced that total revenue increased 11.9 percent year over year, while operating costs increased 9.6 percent, resulting in an NOI increase of 13.1 percent. Same-store NOI increased 8.4 percent year over year. FFO for the quarter was $1.29 per fully diluted common share, compared to $1.12 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.