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.

Phoenix-based U-Haul International Inc. is converting a former business center into a self-storage facility on the Big Island, Hawaii. U-Haul Moving at Kailua-Kona at 74-5484 Kaiwi St. in the Old Industrial Park officially opened last month. The facility currently offers truck and trailer rentals, towing equipment, moving and packing supplies, and U-Box portable-storage containers. In the coming weeks, it will add hitch installation as well as 164 climate-controlled storage units, according to a company press release.

"We're one of only two locations in Kona that will offer climate-controlled storage," said Kaleo Alau, president of the U-Haul Co. of Hawaii. "From everyone we've talked to, this is a big deal. People have to drive miles and miles to find climate-controlled storage."

U-Haul purchased the former five-building Gold Coast Business Centers a year ago. Multiple bars, restaurants, retailers and other tenants will share the property with U-Haul, the release stated. The primary building was last occupied by a coat-upholstery shop and a mechanic business.

"We have two U-Haul store locations on Oahu, and we're excited to be able to offer our products and services on the Big Island at our new Kailua-Kona location," said Doug McIntier, area-district vice president.

The conversion is a huge undertaking for the company because each piece of U-Haul equipment has to be shipped from the mainland to Oahu by barge again to its destination on the other island, the release stated. U-Haul currently offers 246 box trucks, pickup trucks and cargo vans across the state, but hopes to reach 400 or more, McIntier said. The company operates 28 storage properties in Hawaii.

The opening of the Kailua-Kona property was driven by U-Haul’s corporate sustainability initiatives, which support infill development to help local communities lower their carbon footprint, according to the release. U-Haul’s adaptive reuse of existing structures eliminates the amount of energy and resources required for new-construction materials and helps local cities diminish their unwanted inventory of unused buildings, U-Haul officials said.

Established in 1945, U-Haul has more than 44 million square feet of storage space at more than 1,200 owned facilities throughout North America.

By Samson Lam and Markus Scherer

While self-storage is still a relatively new concept across most of the Asia-Pacific region, our most recent research shows it has firmly arrived in Greater China. The remarkable success of the self-storage industry in Hong Kong has set the stage for the development of the industry on the Mainland and in Taiwan. Let’s take a look at how the industry is developing, region by region.

Hong Kong

In Hong Kong, where the most expensive property converges with the highest population density in the world, extra storage is almost a luxury. With demand constantly outstripping supply, self-storage has quickly blossomed into a well-developed industry with great market traction.

Ipsos Business Consulting, which offers fact-based market analysis to businesses worldwide, estimates the total gross floor area of self-storage at 4.25 million square feet. Based on the assumption of an average floor-space utilization of 50 percent to 70 percent, Hong Kong has a net floor area of 2.125 to 2.975 million square feet. This is an increase of 4.4 percent since 2013.

At the end of 2014, Hong Kong boasted an estimated 93 self-storage companies, with a network of approximately 524 locations. In comparison to 2013, this is a year-on-year increase of 5.2 percent and a whopping 17.7 percent, respectively. The top six players account for just under 60 percent of the total gross floor area, with SC Storage estimated to be the largest player in the market, closely followed by Store Friendly.

While all these numbers might seem impressive, an estimated core penetration rate of 23 percent suggests there’s still room for the industry to grow. The core rate is the percentage of people between the ages 18 and 45 who are using or have used self-storage services within the past year. With some locations able to demand an average rental rate of more than HKD 60 per square foot ($7.75 USD), this shows just how attractive this market can be for operators.

Mainland China

In comparison to Hong Kong where the industry is already well-established, our research shows self-storage is primed to take off in Mainland China. The success of the first industry event organized by the Self Storage Association Asia (SSAA), which took place in May in Tokyo, underlines our findings. Luigi La Tona, executive director of the SSAA, describes the opportunity in Mainland China to be “one of the most exciting opportunities that will impact the industry over the next decade.”

Due to China’s large size and vast regional differences, the self-storage market is extremely fragmented, making it more difficult for players, as there’s no one-size-fits-all formula for success. Although some large operators have established a foothold in the market and have aggressive plans for expansion, much education is needed to convince Chinese consumers of the benefits of self-storage and how it can fit into their lives as a practical, convenient lifestyle option.

Already today there are 28 operators in China, with 91 locations spread across seven cities including Beijing, Chengdu, Guangzhou, Hangzhou, Shanghai, Shenzhen and Wuhan. Of these, Chengdu has the lowest yearly average per capita income of CNY 70,000 ($10,990 USD). Taking this as a benchmark, we’ve identified a number of other cities with higher averages where we expect to see new storage facilities coming online in the near future.

Moving forward, low consumer awareness will be the biggest obstacle for industry growth in China, as many consumers aren’t aware of the service. However, facility operators are optimistic that growth over the next three to five years can top 20 percent.

Taiwan

Taiwan has all of the strong industry drivers typical of more mature self-storage markets like Hong Kong, such as high property prices and scarcity of space, making it an attractive destination for brands interested in tapping its potential. The development of Taiwan’s self-storage industry is similar to that of Hong Kong from 2002 to 2006, when consumer awareness of the service wasn’t very high.

Though still in its early stages, the industry is already characterized by robust competition, with at least 18 brands operating 75 locations. Together, the top three players operate 45 facilities, with the rest being managed by smaller players and new market entrants.

Just under 90 percent of all locations can be found in the capital of Taipei. While we still expect the number of facilities to grow in this region, there are many cities across Taiwan where we expect to see even higher growth rates moving forward. In 2014, the average self-storage rental rates were between NT$220 to NT$280 per square meter ($6.70 to $8.55 USD), and the average occupancy was estimated between 61 and 70 percent.

Similar to the Mainland, operators in Taiwan are positive about the development prospects of the self-storage industry in the coming three to five years. They expect to see growth rates of 20 percent or potentially higher.

We see the future of the self-storage industry in Greater China to be positive. It’ll be interesting to track the industry and exciting to share in its development.

Samson Lam is a consultant at Ipsos Business Consulting in Hong Kong. He oversees all research activities covering self-storage across the Asia-Pacific region. He can be reached at [email protected].

Markus Scherer leads the consulting unit for Ipsos Business Consulting. In cooperation with the Self Storage Association Asia, he has been actively following the development of the self-storage industry across the Asia-Pacific region. He can be reached at [email protected].

Ipsos Business Consulting is the strategic business-consulting unit of Ipsos Group. The core penetration is based on a survey carried out by Ipsos Business Consulting in February 2015 in cooperation with the Self Storage Association Asia. Published in The Self Storage Association Asia Annual Survey 2015, it’s available for download. For more information, visit www.ipsosconsulting.com.

Steve Sokalsky, owner of Self Storage Hire in Lenwade, England, has donated thousands of door knobs and handles worth approximately £20,000 to West Norfolk Mind, a furniture retailer that also offers carpentry workshops as a mental-health service. Sokalsky cleared out unwanted stock from his online business that sells the hardware to concentrate more on the self-storage business, according to the source.

“I really wanted the stock to go to good use. I saw that as well as the furniture shop, West Norfolk Mind also offered courses and help get people actively involved with projects,” Sokalsky told the source. “A close friend has also needed their support before, and they really did help him out.”

The donation ranges from small pieces designed for children’s furniture to large handles intended for heavy doors, the source reported. West Norfolk Mind will sell some of the hardware but direct some of the items for use in its workshops.

“At a time when mental-health services are significantly underfunded, this donation will go a long way,” said Zena Penty, volunteer coordinator at the King’s Lynn, England, store where Sokalsky made his donation. “It is protecting the services we already offer as well as contributing to their further development.”

Sokalsky operates Self Storage Hire, Dowel Ironmongery & Furniture Fittings and a handle shop in the same property area off of Porters Lane in Lenwade.

The U-Haul Cos. of Eastern and Western Oregon are offering 30 days of free self-storage or U-Box container usage to people who’ve been affected by the flooding in Northwest Oregon. Participating facilities are in Lake Oswego, Ore., and Vancouver, Wash. Families who need more information can contact the U-Haul store nearest them or visit the company’s website, according to a press release.

The region has been saturated by continuous storms this week, including a record 3.2 inches of rainfall over a 24-hour stretch on Monday. Another three inches fell on Tuesday and more rain is in the forecast.                       

"It rains here all the time, but we don't get a lot of rain at one time—and that's the problem," said David Scheafer, president of U-Haul Co. of Western Oregon. "We've had people calling us already—city officials—asking if we can do anything. We've built a lot of new storage here. We want to offer relief to victims of this flooding.”

Through the U-Box program, storm victims can pick up a custom-designed trailer and take a storage container with them. Alternatively, U-Haul can store the container in its secure warehouse, or pick up and deliver it to another location.

Storm victims can also take advantage of the U-Haul Take a Box, Leave a Box program, which enables customers to use recycled boxes at no charge. Instead of discarding reusable boxes and bins, U-Haul encourages local residents to drop them off at the nearest U-Haul location, allowing other people to use them.

U-Haul stores also offer supplies to help residents with storm recovery, such as boxes, tarps, propane and propane tanks, according to the release.

Established in 1945, U-Haul International Inc. has more than 40 million square feet of storage space at more than 1,200 owned and managed facilities throughout North America.

Phoenix-based U-Haul International Inc. is converting a former printing operation in Charlotte, N.C., into a self-storage facility. U-Haul Moving & Storage at Statesville Road at 3001 Boxmeer Drive officially opened in October and currently offers truck and trailer rentals as well as moving and packing supplies. In the coming weeks, it will add towing equipment and hitch installation as well as U-Box portable-storage containers, according to a company press release.

Renovations are underway for the 6.9-acre property, which includes six buildings totaling 102,000 square feet of space. U-Haul plans to add 1,200 interior storage units. Construction is scheduled to be completed in the spring.

The property was previously the headquarters of SPGPrints, a textile and graphics printer. The company vacated the site about a year ago. It also once housed Stork Prints America, which employed 350 employees in the late 1970s. The facility has its own water-treatment plant and multiple electrical services, the release stated.

"One of the benefits of the new store is that it offers support to the U-Haul neighborhood dealers in the area, and they will be able to send customers here for their storage needs," said Clint Shaw, general manager. "We are meeting a need and providing more jobs. That's always a plus."

The facility is accessible from Statesville Road, near Interstates 85 and 77, and a few minutes north of downtown, the release stated.                       

"This store offers a more convenient way for residents to do business with us," said Jason Hardin, president of U-Haul Co. of Charlotte. "It's a prime example of development and growth of retail in an industrial area."           

The acquisition of the Charlotte plant was driven by U-Haul’s corporate sustainability initiatives, which support infill development to help local communities lower their carbon footprint, according to the release. U-Haul’s adaptive reuse of existing structures eliminates the amount of energy and resources required for new-construction materials and helps local cities diminish their unwanted inventory of unused buildings, U-Haul officials said.

Established in 1945, U-Haul has more than 44 million square feet of storage space at more than 1,200 owned facilities throughout North America.

By Katie Self

Wine storage paired with traditional self-storage has become increasingly popular, notably in affluent areas that are dense with restaurants or enthusiasts who require storage space for their esteemed collections. However, this novel storage niche requires a different approach to operation and marketing. Here, facility operators share their impressions and strategies for this add-on business.

Management

A self-storage facility can only operate as strongly as those who commit to its day-to-day needs. When it comes to wine storage, site managers need to be prepared to offer professional guidance and instruction for the use and capabilities of its storage lockers. “Our onsite management team is responsible for leasing the wine units just as any other unit at the facility,” says Donna Edwards, manager of Plantation Self-Storage in Bluffton, S.C. Her facility also has an agreement with a local repair company to service the facility’s wine-related equipment the same day if there’s an issue.

Mathieu Seguin, director of operations for A1 Mini U-Store-It in Ottawa, Canada, says his current staff stepped up and transitioned into wine storage. “The pricing structure is similar [to self-storage], so we have managed with our existing software,” he says. “Many of the same features sought for wine storage already exist for self-storage, and our staff has done a wonderful job renting out.”

Marketing

Wine storage is a separate service from self-storage and requires its own unique promotional efforts. Because it sometimes needs a little specialized knowledge and finesse, it’s not unusual for operators to seek outside marketing support. There are many third-party advertising businesses that offer a keen eye toward the needs of potential patrons.

Kris Fetter, operations manager of Pacific Highway Storage in San Diego, Calif., says a wine-specific marketing firm offers particular tools to zone in on her niche market. “They know the area wine people and recommend us,” she says. “They also find local artists to hang their art in our office, conference room, kitchen and wine area. We have a new artist every quarter and have a meet-and-greet with the artist, and wine tastings with invitations to the tenants.” The marketing is focused on various categories and includes private collectors, sommeliers and wine companies, she adds.

“Many of our customers were referred to us by existing customers and area wine stores,” Edwards says. “In some cases, our customers are building or remodeling their homes and need storage for a short period of time. We are the only facility in the area that offers wine storage, so we also include it in our marketing online, several social media outlets, print media, and direct marketing to apartments, property-owner associations and through the local chamber of commerce.”

Interactive marketing plays a key role in garnering business, including onsite events and tastings. “At first, we hosted wine tastings and events for our local sommeliers,” Seguin says. “We also made our services known to businesses that sell wine accessories. Once the momentum got started, we dropped our advertising altogether, and we now rely on word-of-mouth.”

Once you’ve earned consistent business, marketing becomes an important role in keeping it. However, Seguin says it’s easier to maintain business for wine storage than traditional self-storage. “Collectors who have access to space tend to buy more wine than they consume,” he adds.

Legal Bases

Part of operating a gainful wine-storage facility includes insurance to cover goods and an understanding of local legislation. Broken valuables can create an unpleasant experience for operators and tenants, and someone must be liable, whether the items are in storage or on transport to a locker.

Plantation Self-Storage doesn’t insure the contents of any unit, including wine-storage units. “In terms of insurance, we require proof of insurance from the customer that [his] wine is insured through [his] homeowner's policy while stored at our facility. Most customers have riders on their policies to cover wine storage, both for their home and at off-site storage facilities,” Edwards says. When a tenant ships wine to his respective locker, facility staff will place the cases inside the customer’s unit, but the customer must sign a waiver granting the facility permission to do so.

Offering customers a shipping addendum absolves an operator of any problems that may arise from shipment, Fetter notes. A somewhat remarkable addition to her facility’s contract language is a section that requires the tenant to waive any claim for “emotional or sentimental attachments to such wine.” However, possibly the most important narrative in any contract is the proclamation that tenants store at their own risk.

Local liquor regulations also affect wine storage. “Since the Liquor Control Board of Ontario is the only body legally allowed to sell alcohol in our province, selling off any lien proceeds is impossible,” Seguin says. While this is a rare instance, every nook and cranny must be insured to cover the integrity of the facility and its operation. “In the event that we would have to lien the wine, we would settle with the customer,” Seguin adds. “Failing that, the [facility] owner would keep the collection for himself.”

Those who rent wine-storage space also have legalities to consider. “It’s illegal to sell wine outside of our liquor control board. Collectors usually have to donate bottles to charities and use tax write-offs to downsize their collection,” Seguin says.

While several conditions create an engaging wine-storage experience for customers, they also generate a lucrative enterprise for operators. By employing helpful staff, devising a strong marketing strategy and establishing insurance boundaries free of loopholes, facilities can offer clientele proper storage for their prized potables.

Katie Self is studying journalism at Arizona State University’s Walter Cronkite School of Journalism and Mass Communication, with a focus on print. To read more of her material, search her name at www.insideselfstorage.com.

A man suffered a broken wrist and a hip injury on Wednesday when he fell nearly 30 feet off a freeway overpass onto a flat roof at a Secure Self Storage facility in the Old Town area of San Diego. The man, who is legally blind, told responders he was from out of town and got lost trying to find his way to Mission Valley, an area north of Old Town known for dining, entertainment and shopping. The incident occurred between 4 and 5:30 a.m. when it was still dark outside, according to the source.

The unidentified man apparently walked up a freeway ramp, possibly from northbound Interstate 5 to eastbound Interstate 8, the source reported. As he was walking along the ramp, he slipped and dangled briefly at the edge before falling to the self-storage building rooftop at 4835 Pacific Highway, according to Lee Swanson, a spokesperson for the San Diego Fire-Rescue Department.

The man told fire crews he laid on the roof for quite a while before making his way to the roof edge and yelling for help. Dispatchers at 911 received a call about the incident around 5:30 a.m. Responders used a ladder to reach the man and lowered him in a basket carrier using the aerial ladder of a fire truck, Swanson told the source.

The man was taken to a trauma center for treatment. The man’s age or origin wasn’t immediately known.

Secure Self Storage operates three facilities in the San Diego metro area.

The Inside Self-Storage (ISS) Store, an e-commerce website providing research and education products for industry professionals, is offering a limited-time pre-sale on the standard Education Package for next year’s Inside Self-Storage World Expo, the industry’s largest conference and tradeshow. From now through Dec. 17, industry owners, managers, developers and investors planning to attend the event at the Paris Hotel & Resort in Las Vegas, April 25-28, can purchase a standard Education Package for $399 exclusively through the ISS Store.

The limited-time offer is more than $200 off the full package price and more than $50 off the event’s early-bird rate, which will be available beginning Dec. 18.

The ISS Expo Education Package includes access to the show’s opening session and all concurrent education tracks. In addition, it enables attendees to access the exhibit hall, evening cocktail reception, Self-Storage Q&A, Self-Storage Legal Q&A, Buyers & Sellers Meeting, vendor education and roundtable discussions.

The 2016 expo will include 10 education tracks comprising 45 seminars on April 26 and 27. Sessions will cover issues related to self-storage ownership, management, marketing, investment, finance, building, development, liability and more. There will be separate introductory and advanced tracks for facility managers and owners.

The standard Education Package doesn’t include access to any of the expo’s seven workshops, which will be available for purchase when registration officially opens through the expo website on Dec. 18. The Premium Education Package, available only through the expo registration portal, will include the attendee’s choice of two workshops.

The pre-sale offer can be purchased by visiting www.insideselfstoragestore.com and clicking on “ISS Expo Package” on the left navigation bar. Attendees may buy as many packages as they want, but each must be paid for in a separate transaction. A PDF voucher for each package will be issued through the customer’s “My On-Demand Library” inside his ISS Store account. The ISS Expo team will contact attendees to complete their registration during the week of Jan. 4. The discount package is non-refundable and non-transferable.

Created for self-storage owners, managers, developers, investors and suppliers, the ISS Expo comprises four days of education, exhibits and networking opportunities. The event focuses on revenue-generation strategies, best practices, current trends, and new products and services. Details and online registration for the 2016 show will be available beginning Dec. 18 at www.insideselfstorageworldexpo.com.

Conceived as a central hub that allows self-storage owners, operators, developers and investors to obtain cutting-edge information and resources, the ISS Store is owned and operated by ISS, a dynamic services provider that has served the self-storage industry for nearly 25 years. The brand includes ISS magazine, the ISS Expo and Self-Storage Talk, the industry’s largest online community.