Sovran Self Storage Inc., a self-storage real estate investment trust, reported operating results for the quarter ending June 30, 2010. Highlights include:
- Net income available to common shareholders for the second quarter of 2010 was $15.8 million or $.57 per diluted share.
- Exclusive of a $7.5 million gain on the sale of eight properties, net income available to common shareholders was $8.2 million or $.30 per diluted share. Net income available to common shareholders for the same period in 2009 was $6.3 million or $.28 per diluted share.
- Funds from operations (FFO) for the quarter were $.61 per fully diluted common share compared to $.66 for the same period last year. The impact of the company’s $4 million share offering in October 2009 offset a significant decline in interest expense thereby contributing to the decline in per share FFO results.
- Revenue for the company’s 345 stores owned for the quarter increased by 0.2 percent from those of the second quarter of 2009, the result of a 20- basis point drop in average occupancy offset by a 40-basis point increase in rates, and solid improvements in other, non-rental revenue.
- Same-store operating expenses increased by a total of 3.8 percent, primarily the result of increased health care, workers’ compensation and property maintenance costs. Almost all other operating expense categories remained at 2009’s suppressed levels with the exception of property taxes, which grew at a pace of 2.4 percent.
“We’re encouraged by the high level of rental activity and also our ability to obtain rate increases from in-place customers,” said Ken Myszka, president and COO. “Two-thirds of the 24 states we operate in showed same store revenue growth this quarter—a tremendous improvement over the past five or six quarters. It appears that while our peak leasing season may have gotten off to a bumpy start, we’re gaining steam as the summer goes on.”
To read the full financial report or access a recording of the results conference call that took place on Aug. 5, visit www.unclebobs.com/company/investment.
Sovran is in the business of acquiring and managing self-storage facilities. The company operates 371 facilities in 24 states under the name Uncle Bob’s Self Storage.
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