Extra Space Storage Inc., a self-storage real estate investment trust, will release financial results for the three months and year ending Dec. 31, 2010, on Feb. 22 after the market closes. The company will also host a conference call at 1 p.m. ET on Feb. 23 to discuss its financial results.

CEO Spencer Kirk will host the call. Joining him will be Kent Christensen, executive vice president and chief financial officer, and Karl Haas, executive vice president and chief operating officer.

During the conference call, the company officers will review fourth-quarter and annual performance, discuss recent events, and conduct a question-and-answer period, which will be limited to registered financial analysts. All other participants will have listen-only capability.

Those interested in participating in the call can dial in by phone or log in through Extraspace.com. To participate in the conference call, dial 866.783.21.45 at least five minutes prior to the start time (international callers dial 857.350.1604). Enter conference ID 99540134. A playback of the call will be available until March 25. For the playback, use number 888.286.8010 (international callers use 617.801.6888). Enter conference ID 80264378.

To participate in the call online, visit the website at least 15 minutes in advance to register as well as download and install the necessary audio software. A replay of the call will be available on the website for 30 days.

The full text of the earnings report and supplemental data will be available on the Extra Space website immediately following the release on Feb. 22. Those without Internet access can request a copy by mail or fax. 

Headquartered in Salt Lake City, Extra Space is a real estate investment trust that owns or operates 768 self-storage facilities in 33 states and Washington, D.C. The company's properties comprise approximately 510,000 units and more than 55 million square feet of rentable space. 

Federal agents seized 28 bales of marijuana weighing 710 pounds last week from a self-storage unit in Swartz Creek, Mich., a small Genesee County town not far from Flint.

Authorities filed charges this week against William Lott, a Flint resident who has admitted to renting the space at Bee Safe Self Storage to store marijuana. When agents searched his home, they found another 26 pounds of marijuana.

When Lott appeared in federal court, a judge prohibited Lott from using his medical marijuana card. Lott was then released on bond while his trial is pending.

Strategic Storage Trust Inc. has purchased a large share of interests in USA Self Storage I, DST, a trust sponsored by Strategics sponsor.

Strategic purchased an additional 73.8 percent in interests from 36 third-party sellers for about $27.7 million. The acquisition was funded from $10.2 million in cash and roughly $17.5 million from three separate bank loans.

Strategics ownership of the trust is now 93.57 percent, including 19 percent in interests previously acquired in unrelated transactions. The company intends to close on the remaining percentage by mid-February.

USSelfStorageLocator.com, a self-storage locator and rental search engine, is offering a free premium listing on its website to any self-storage operator who claims ownership of and activates his account by March 16. All participants will be entered to win a 16GB Wi-Fi and 3G Apple iPad, the drawing for which will be held at the companys booth during the Inside Self-Storage World Expo in Las Vegas. Activated members need not be present to win.

The free premium listing, in effect for 90 days, includes a facility logo, a request-info button, and a facility-profile page including information such as unit sizes and types, prices, amenities, specials/discounts, pictures, reviews and activity reports. The page also includes a compare facilities feature, a feature facility banner, top results positioning and more.

Using the premium listing, self-storage operators will be able to accept online rental using USSelfStorageLocator.com's rental widget. They can also get a unique tracking phone number with call recording for quality control and training purposes.

In addition, all activated facilities will have the opportunity to appear as a "Featured Listing" on the left side of the website. This feature will select randomly a facility from its database and display it for consumers to see and choose.

The ISS Expo in Las Vegas is the self-storage industrys largest conference and tradeshow including three days of educational seminars, networking opportunities and exhibits. The show will take place March 14-16 at the Paris Hotel & Resort. Show details can be found at www.insideselfstorageworldexpo.com.

As part of a clean-energy agenda, the Obama administration introduced the Better Building Initiative Feb. 3, a plan to double the share of electricity from clean energy sources by 2035 by creating retrofitting incentives for commercial developers , builders and owners, including those in self-storage.

Here are the initiatives main goals:

• By 2020, make commercial-building space 20 percent more energy-efficient through upgrades to, for example, lighting, heating and cooling, and major technological appliances and systems.
• In the same timeframe, reduce companies and business owners energy bills by about $40 billion a year.
• Aggressively reform existing tax and lending incentives for commercial-building retrofitting: Obama would like Congress to increase the tax credit to businesses for retrofitting. Additionally, the president wants to roll out a new grant program directed at state and local governments to get them to streamline their energy-efficiency regulations, codes and incentives. It will be based on the Race to the Top program in the Education Department, which nudges states to toughen standards and make other reforms to qualify for funds.
• Develop a coalition of corporate leaders who will commit to making progress toward the initiative's goals.

Referencing the plan during the State of the Union address Jan. 25 and then fully introducing it in a speech the following week, President Obama said commercial buildings last year consumed roughly 20 percent of all energy in the U.S. economy.

Though the administration hasn't clearly enumerated how the initiative will be funded, the Wall Street Journal reported Obama suggests imposing higher taxes on oil and gas companies. The Wall Street Journal also reported former President Clinton and Jeffrey Immelt, chief executive of General Electric Co., would lead the effort to reach out to corporate decision-makers.

The commercially focused Better Building Initiative piggybacks on the residentially focused Home Star legislation, which is designed to encourage families to make energy-saving upgrades in their homes. This legislation currently sits idle in the Senate after being introduced in 2010.

Savvy self-storage operators know a key to success is business networking. Asking questions and sharing ideas can often lead to new marketing ideas, ways to streamline your business or even a new business partnership.

One of the most popular networking events of the year is at the Inside Self-Storage World Expo in Las Vegas, March 14-16. The Roundtable Discussions, March 14 from 5:30-6:30, offers self-storage operators and managers one-on-one time with ISS education speakers, exhibitors and other industry professionals in an intimate setting. This years event will include roundtables on a number of industry hot topics including:

• Selecting a Self-Storage Auctioneer
• Cheap and Free Marketing Tactics for Self-Storage
• Understanding the New California Lien Law
• New Website Dos and Donts
• Using Specials to Improve Occupancy and Retail Sales in the New Economy

The ISS Expo features four comprehensive education tracks covering the industrys most relevant issues, two days in the exhibit hall with nearly 100 vendors, and four add-on intensive workshops covering legal issues, construction and development, facility management, and online marketing.

Attendees can take advantage of discount room rates through Feb. 15 by calling 1.800.HARRAHS and mentioning the expo.

Details about the industrys largest conference and tradeshow can be found at www.insideselfstorageworldexpo.com. Registration can be completed online or by calling 800.230.2311.

                                                              

Police have arrested three people in connection with a possible burglary ring that included theft at a self-storage facility in Maine.  

A multi-county investigation led to the arrest of three men Jan. 26 related to a Jan. 8 burglary at Woolwich Self Storage. More charges are pending.

Between 15 and 20 locks were cut from storage units, and at least five of the units were burglarized, police said. The investigation uncovered a possible burglary ring operating out of Lincoln County, and police believe the thieves were storing stolen property at Woolwich Self Storage.

George Hamlin, 31, was charged with one count of burglary and one count of theft. William Churchill, 46, was also arrested and charged. Rhonda Brubaker, 46, was arrested and charged with felony burglary and theft. Officers allegedly found Brubaker with a large amount of the stolen property in her possession.

The stolen property included antiques and photographs stolen from an antique shop in Lincoln County between October and December. Officers also seized drugs and possibly a stolen firearm. The investigation is ongoing and more property could be recovered.

As we look back over the last 10 years, its encouraging to see cautious optimism present in todays real estate market. Self-storage owners have seen their values begin to rebound, and buyers today are disciplined and patient as they seek opportunities that fit their criteria. The availability of self-storage properties appears to be due primarily to owners life events, as very few owners are making the decision to sell, instead wanting to capitalize on the improving market.

U.S. commercial real estate prices climbed 1.3 percent in October 2010 from the previous month, according to the Moodys/REAL Commercial Property Price Index (CPPI). Thats encouraging for a market that has dealt with deflated property values for nearly three years. However, many experts debate whether the recent gains will last.

This improvement in values is small in relation to the overall 42.7 percent value decline the index has tracked since the market peaked in October 2007. In a year of index volatility, the CPPI logged six positive monthly gains and four monthly declines through the first 10 months of 2010. This leaves us with an aggregate gain of just 0.21 percent through October from the year prior. One may argue that the real estate market hasnt fared much better. (The latest update to the CPPI was published by Moody's on Dec. 20 and computed through October 2010. See the accompanying graph.)

Booms and Busts

As we look back on 2000-2010, we can recall experiencing two major booms and busts in the commercial real estate market. Who can forget the dot-com boom that came to an end around 2001-2002? We saw 20-somethings become millionaires overnight followed by the harsh reality that all good things must come to an end, including increasing real estate values.

Most recently, the real estate boom of 2004-2007 was the most prosperous time in commercial real estate history in terms of total transaction dollar volume. During the explosion, we saw savvy investors buying up anything they could get their hands on, with apparently no limit on what they were willing to pay. Interest rates were at rock-bottom historic lows, and there were herds of lenders willing to make very generous loans. This leads me to wonder what the next decade will hold and what factors will play a role in the next commercial real estate boomand inevitably, the next real estate bust.

Government Effect

As we have now entered a new congressional session, we clearly have a political problem that will affect the ability of investors to make rational decisions and maximize their return on investment. In 2010, for example, we saw many owners trying to sell and take advantage of the historically low capital-gains tax rate that has now been extended for an additional two years. This is just one example of several such uncertainties that may affect investment decisions moving forward.

While the power struggle in Washington may have led to a temporarily prosperous time for investors, we must remember that one stroke of the pen can change everything. This, along with the unsettling vibes that are coming from several industrialized countries such as China, Great Britain, Greece and Spain should concern us all. It is my worry that in todays globalized economy, countries like these may not take the necessary steps to head off financial disaster or report the issue honestly. This could have a tremendous trickle-down effect on the U.S. investment climate.

At the beginning of 2011, the 10- year T-Bill was bouncing between 2.5 percent and 3.4 percent, and it appears to be on the rise of late. The accompanying chart shows that over the last five to 10 years, interest rates have been very low when compared to historical rates over the last 40 years.

As a result, low rates have helped real estate investors capitalize on the booms and weather the downturns over the last decade. It is a concern that todays interest rates are being kept artificially low by the fiscal policy being implemented by the Federal Reserve. If we were to see an increase in interest rates in the near term, we may experience a premature commercial real estate bust.

I believe we are experiencing a strengthening in the commercial real estate sector, and the fundamentals of self-storage seem to be following suit. Make no bones about it, if we enter into inflationary times, we will most likely see increasing interest rates that will have a major effect on the investment climate for self-storage properties. We would all welcome some controlled inflation, but as we have seen lately, controlling a globalized economy is difficult.

The biggest fear in the market today is that we will see hyperinflation, particularly as the ability to reverse courses is more difficult today than ever before. Contrary to popular belief, aggressively rising interest rates and highly inflationary times do not necessarily mean higher values.

Capitalize on Improvements

Its important to realize that when youre selling real estate, youre actually selling the income stream that is valued using a cap rate, which is the inverse of interest rates. This means higher interest rates do not equate to higher values. As a result, you may want to re-evaluate your investment strategy in 2011.

Self-storage owners have the unique opportunity to capitalize on the recently improving real estate investment market, as values today are at the high end of historical averages. This will also allow you to avoid the fear of hyperinflation and whatever political problems this global economy may dish out.

Ben Vestal is president of the Argus Self Storage Sales Network, a national network of real estate brokers who specialize in self-storage. Argus provides brokerage, consulting and marketing services to self-storage buyers and sellers. For more information, call 800.55.STORE; e-mail [email protected].

On Feb. 24, Inside Self-Storage (ISS) and Extra Space Storage will present a free webinar focusing on ways for self-storage operators to save money on expenses and generate more revenue. Five Operational Strategies That Will Add Money to Your Self-Storage Facilitys Bottom Line in 2011, will take place at 2 p.m. EST. The free registration process can be completed at www.insideselfstorage.com/webinars.

Providing strategies and tips for self-storage owners and managers to make more money, minimize expenses and improve the overall value of their self-storage businesses, the webinar will cover:

• Rate increases: How customers will respond in both a declining and accelerating economy
• Internet marketing: How it can expand your customer footprint
• Customer data: Tracking, and how to implement a customer relationship management (CRM) program
• Cost savings: Strategies you can implement with minimal effort that will reap substantial rewards
• Call center: Outsourcing calls to decrease costs and increase rentals

The event presenters are Jim Stevens, senior vice president of acquisitions and business development, and Noah Springer, director of strategic partnerships, for Extra Space Storage, a real estate investment trust that owns or operates 820 self-storage properties in 34 states and Washington, D.C.

Stevens joined Extra Space in January 2001 as the divisional vice president responsible for the companys West Coast activity. He was promoted to his current position in November 2006. Since then, he has overseen more than $465 million in self-storage acquisitions.

In addition to managing the Extra Space 3Plus Management Program, Springer handles the companys acquisition efforts, having completed approximately $200 million in self-storage acquisitions from managed owners and joint-venture partners. In 2007, he helped create the Extra Space joint-venture program, in which the company joined forces with local developers to build self-storage across the country.

ISS is a dynamic services company providing self-storage publications, events, education, marketing and other informational resources. The companys offerings include Inside Self-Storage magazine, Self-Storage Talk, the Qualified Storage Manager training program, and the Inside Self-Storage World Expo.

Mini U Storage recently became the official self-storage company of the Philadelphia 76ers basketball team, resulting in free game tickets for new renters of self-storage units.

As part of the agreement, Mini U Storage will give away to each new renter a pair of free tickets to one 76ers home game during the 2010-2011 NBA season at the Wells Fargo Center. In addition to the free tickets, each new renter receives free access to the facilitys move-in truck, can purchase 99-cent boxes and has free use of shelves.

With locations in nine states, Mini U Storage has made similar partnerships with other NBA teams, as well as with NFL, NHL and Major and Minor League Baseball teams.