Sovran Self Storage Inc., a self-storage real estate investment trust, announced a quarterly dividend of $.45 per share of common stock.

The annualized Sovran dividend is $1.80 per share, which, based on Tuesday's opening share price, equates to an annual rate of approximately 4.1 percent. The dividend will be paid on Jan. 26, to shareholders of record on Jan. 13.

Sovran is a self-administered and self-managed equity REIT in the business of acquiring and managing self-storage facilities. The company operates 435 properties in 25 states under the name Uncle Bob's Self Storage.

Dan DiMicco, chairman and CEO of Nucor Corp., has been named to IndustryWeek magazines Manufacturing Hall of Fame. He is one of only 10 inductees selected this year.

Nucor is the parent company of American Buildings Co. (ABC), a Eufaula, Ala.-based manufacturer of metal building systems for self-storage and other industries.

DiMicco was recognized for his numerous contributions to the industry, including moving Nucor back to shareholders, staying committed to Nucor employees, guiding the company through unprecedented growth and the recession with a no-layoff philosophy, and working to keep trade issues at the forefront of U.S. public policy. The magazine describes him as a leading voice for U.S. manufacturing and the nations steel industry.

Overall, the inductees were chosen for being well-known through their ability to challenge and shape their organizations, industries and, ultimately, the world. A few words IndustryWeek used to describe the group include bold, brilliant, influential, innovative, passionate, pioneering, and outspoken. Other inductees included Alan Mulally, president and CEO of Ford Motor Co.; Gordon Moore, co-founder of Intel Corp.; and Alan (A.G.) Lafley, former president and CEO of Procter & Gamble Co.

It is an incredible honor to be included in this years Manufacturing Hall of Fame, said DiMicco. This recognition really goes to all Nucor teammates who work tirelessly everyday to make this a great company and who believe, as I do, that manufacturing is the foundation on which economic growth in this country must be built.

Nucor, a Fortune 200 company, and its affiliates are manufacturers of steel products, with operating facilities primarily in the United States and Canada. Products carbon and alloy steel in bars, beams, sheet and plate; steel joists and joist girders; steel deck; fabricated concrete reinforcing steel; cold finished steel; steel fasteners; metal building systems; light-gauge steel framing; steel grating and expanded metal; and wire and wire mesh.

ABC, purchased by Nucor in 2007, has designed, manufactured and delivered metal buildings and roofing systems for more than 50 years. The company has engineering and manufacturing centers nationwide and a network of more than 800 authorized builders. ABC produces industrial and commercial structures as well as tailored projects for a variety of industries including self-storage, automotive, retail and transportation.

With more than $1 trillion in commercial loans expected to come due in the next three to five years, understanding todays financial landscape is more important than ever. Self-storage owners and investors can learn about industry financing options at the Inside Self-Storage World Expo, March 14-16, in Las Vegas.

The expos all-new Finance Symposium brings together the leading finance experts in the industry to discuss the market, outline financing options and offer sound advice. The two-hour seminar is split into three mini sessions covering commercial mortgage-backed securities and insurance companies, Small Business Administration lending, and loan workouts. An open Q&A at the end will enable attendees to ask pointed questions.

In addition, a second seminar will feature a panel of speakers to discuss property values and capitalization rates, how buyers are looking at the self-storage market, and outlook for self-storage financing in the near and short term.

By registering before the early-bird deadline, attendees will save $150 on the standard Education Package, and up to 35 percent on individual add-on workshops. Early-bird discount registration rates for the show expire Jan. 13.

The ISS Expo at the Paris Hotel and Resort will feature 36 seminars, four workshops, two days of exhibits, and five networking events. Details are available at www.insideselfstorageworldexpo.com.

Schur Success Auction & Appraisal Inc., a Colorado Springs, Colo.-based company that conducts auctions at more than 100 Colorado self-storage facilities, raised $2,683 for the Wounded Warrior Project, a non-profit organization that supports U.S. soldiers injured in combat.

To raise the money, the company donated a portion of its commissions from every unit it sold in the fourth quarter. In addition, auction bidders also contributed to the cause, doubling the auction companys intended donation. Schur averages 80 storage auctions each month.

Many of our bidders and buyers served in our military, said CEO Shannon Schur. We felt it appropriate to kick off our charitable campaign by raising funds for the Wounded Warriors. When the campaign began in September, it was immediately embraced by auction bidders, Schur said.

The success of the campaign has led Schur to continue the donation program in the new year, this time with a new recipient. The company will announce the recipient later this month.  

Wounded Warrior Project raises awareness and enlists the public's aid for the needs of injured service members and provides unique programs and services that meet the needs of soldiers and their families.

Founded in Arvada, Colo., nearly 30 years ago by Ray Fenter, Schur Success is Colorados largest onsite auction company. It is the exclusive auctioneer for the City & County of Denver and a member of the Colorado Auctioneers Association, the National Auctioneer Association, the Southern Colorado Better Business Bureau and the Colorado Self Storage Association.

A 56-year-old homeless man in Rotterdam, N.Y., has been charged with animal cruelty after locking four pit bulls in a storage unit.

Frank Burns, who had been sleeping under a railroad trestle, was evicted from his home just before Christmas. He attempted to surrender the dogs at a animal shelter but was told there was no room for them. Burns locked the dogs in cages inside a unit at Rotterdam Self Storage without food, water or heat. One of the dogs bent the cage bars in an attempt to escape.

Animal control officers also report some of the dogs may have to be euthanized because they are too aggressive. Investigators believe Burns has relocated to Florida.

By Noel Cain

Weve just passed the one-year mark for self-storage as an approved property type for Small Business Administration (SBA) loans with the passage of the Small Business Jobs Act of 2010. During the past year, the industry has started to learn the capabilities and limitations of the two loan programs (7A and 504), along with which borrowers qualify.

The SBA recently released its annual update to the qualifications, which bring additional turns and twists to the programs. Lets review each of the program's capabilities and how the changes will affect self-storage financing in 2012.

SBA 7a

There are two types of SBA loans available to the self-storage industry: SBA 7a and SBA 504. SBA 7a is typically a variable-rate program with a three-year prepayment penalty. Its designed for borrowers who:

• Have multiple uses of proceeds (real estate, equipment, working capital, etc.)
• Typically have a loan-to-value (LTV) in excess of 90 percent
• Want to refinance
• Have a shorter holding period

In general, 7a borrowers are willing to take on interest-rate risk in exchange for proceed-use flexibility and additional leverage. The 7a program will allow for additional funds with uses in self-storage such as, but not limited to:

• Facility expansion
• Installation of a kiosk
• Establishment of a marketing program
• Installation of security features
• Capital for repairs

The SBA 7a program is commonly structured with a prime-based rate that resets quarterly, and a fully amortizing 25-year loan with a prepayment penalty during the first three years. This loan is typically pooled and sold to investors. There are instances in which banks will offer a fixed-rate period in cases where loans are held by the lender for the entirety of the term. These fixed-rate deals typically face tougher underwriting standards and lower leverage points.

Generally speaking, loan amounts up to 90 percent of value are achievable. However, loans must provide a minimum debt-service requirement of 1.25:1. In cases of higher leveraged transactions, collateral for the loan is not limited to the subject financed property. Often the lender will take a pledge of equity in other assets that may include other rental real estate, deposit accounts or equity in a primary residence.

The SBA has not established any significant new changes to the policy and procedures for 2012 as it relates to the 7a program. Borrowers will continue to have the program available for both acquisition and refinance. We expect more lenders to offer their SBA programs to self-storage borrowers in 2012 as they become more comfortable with self-storage as property type.

SBA 504

SBA 504 is a two-party loan program with the ability to fix at least a portion of the debt up to 20 years. However, the program carries a 10-year prepayment penalty. Its designed for borrowers who: have a long hold period, have a single use of proceeds (real estate or equipment), or want to build a second location.

In general, 7a borrowers are willing to take on interest-rate risk in exchange for proceed-use flexibility and additional leverage. SBA 504 borrowers sacrifice flexibility and have limited use of proceeds, but are able to secure long-term fixed-rate debt.

One additional advantage to the 504 program is it allows for new construction with leverage up to 90 percent with specific limitations. New construction is limited to additional locations by an established owner/operator with the same borrowing structure. Borrowers adding new partners or without prior experience will have difficulty using this program for construction purposes. Primary location(s) will also have to support the additional debt of the new location at or near a 1.25 to one times ratio. The program can certainly be seen as restrictive. But for borrowers who qualify, they can take advantage of near record low interest rates at leverage levels that are rarely seen in other lending programs.

Through the SBA 504 program, a borrower will work with a traditional SBA lender for a portion of the loan and also a Certified Development Corporation (CDC) for the 20-year fixed-rate portion. The traditional lender may offer a floating or fixed rate that will be blended with the 20-year fixed rate CDC portion to come up with a weighted cost of capital.

As recently as the fourth quarter, the rate on the fixed portion of the loan was as low as 4.9 percent. Its typical that both the traditional and CDC lenders frequently work together so a borrower can expect there to be a working relationship already in place. However, hiring a mortgage intermediary can help keep all parties on track and communicating accordingly.

Refinance With 504 Now Available

Recent changes to the SBA guidelines include the addition of the 504 temporary-refinance program. Previously, this was only available through the 7a program. This program will allow borrowers to use the long-term 504 programs for refinancing debt through Sept. 30, 2012.

Borrowers who want to take advantage of the refinance program should act quickly to identify qualified lenders, as its unclear if the program will be extended and its not uncommon for a refinance to take up to six months to complete.

Cautionary Tales

Its important to consider the type of lender you choose. Certain lenders have preferred status with the SBA, which allows them to fund a deal after approval. Others have to approve the transaction internally and then submit a complete underwriting package to the SBA for its approval. The latter may take longer to close, as the SBA approval depends on the workflow of the SBA office.

Lastly, its important to understand that some borrowers will not qualify for either program. SBA loans are limited to active owners. This active role of the owner is an important distinction in the SBA world, as the programs are intended to fund small-business owners actively involved in their enterprise, not investors seeking passive income streams. In addition, borrowers with extensive liquidity (typically greater than the loan amount) and net worth that exceeds $15 million will be deemed too big for the program.

Borrowers who do qualify for either program will have the advantage of adding a capital source to their list in 2012.

Noel Cain is a vice president at Chicago-based The BSC Group, where he provides mortgage brokerage, financial consulting, and loan-workout solutions to self-storage real estate owners nationwide. To reach him, call 847.778.4661; e-mail [email protected]; visit www.thebscgroup.com .

Consumer use of the Internet to find and reserve self-storage units grew dramatically in 2011, according to USstoragesearch.com, an online self-storage network that saw an increase of more than 400 percent in online reservations during the year.

Aided by the launch of several network websites, including Storage.com and StorageUnit.com, USstoragesearch.com experienced online-traffic increases in 2011 of more than 300 percent. Throughout the year, the company added 170 new partner websites, bringing the total number of websites that display its member listings to 3,000. USstoragesearch.com has also reached agreements to power listings on additional self-storage websites in the first quarter of 2012.

 The adaptation of the self-storage industry to online conversions in the form of storage-unit reservations has occurred remarkably quickly," said Mike Jones, vice president. "Over the last couple of years, the industry recognized the potential for more online conversions in this area and has adapted its technology, marketing practices and sales techniques to capitalize on a great opportunity to keep their storage units full and reach more potential tenants."

USstoragesearch.com provides members with customer leads in the form of e-mails, quote requests, storage coupons and phone calls. The company also provides online reservations for members who choose to join its self-storage network. These reservations are secured via a credit card deposit by the new self-storage customer. This process leads to a move-in rate of more than 90 percent, according to the company.

Established in 2004, USstoragesearch.com provides a self-storage directory featuring more than 18,000 member facilities and self-storage network including approximately 3,000 websites. These resources allow consumers to search in real time for available storage units by facility location, unit size, property features and specials.

The quality of a company's customer service directly impacts its current and future financial stability and potential. Since the single greatest influence over customers' experience is the quality of customer-facing staff, it's imperative to find, hire and retain top-quality talent for front-line staff and management positions.

Today Michaels Wilder, a Phoenix-based marketing and talent-management services company, launched a free whitepaper through InsideSelfStorage.com titled, "Recipe for Customer-Service Excellence: Find With Care, Hire With Care, Retain With Care Repeat." The whitepaper focuses on the importance of customer service in the self-storage industry and how facility owners and operators can provide the best service possible.

The whitepaper addresses:

• How customer service affects the financial stability of small, mid-size and large companies
• How to find and hire top-quality talent for a company's customer-facing staff positions
• How to retain quality customer-service staff and what to do when a key employee leaves

The whitepaper can be downloaded for free at www.insideselfstorage.com/Whitepapers.aspx.

Michaels Wilder, which provides Internet, mobile, print and broadcast advertising solutions, has been in business for more than 20 years. Serving large and small clients across a wide range of industries, the company is also a Certified Marketing Representative for Yellow Pages advertising and offers recruitment and human resources consulting.

For more than 20 years, Inside Self-Storage (ISS) has provided informational resources to self-storage owners, managers, developers and investors. Its educational offerings include a monthly magazine, bi-annual tradeshows, an extensive website, an education institute and Self-Storage Talk, the industrys largest online community.