Strategic Storage Trust II Inc. (SST II), a public, non-traded, self-storage real estate investment trust (REIT) sponsored by SmartStop Asset Management LLC, has released its financial statement for the fourth quarter of 2017, which ended Dec. 31. Total revenue increased 30 percent to $4.4 million, while same-store revenue and net operating income increased 5.7 percent and 9.3 percent, respectively, compared to the same period in 2016.

Average physical occupancy was 91.6 percent at the end of the year, down from 92.5 percent the previous year. The REIT also reported growth in same-store annualized rent per occupied square foot, showing an increase of 6.8 percent ($15.01) year over year. Modified funds from operation grew 44 percent ($1.5 million) compared to the same period in 2016.

“2017 was a solid year for SST II, specifically strong same-store growth and the re-introduction of the SmartStop Self Storage brand to our facilities in the United States,” said H. Michael Schwartz, chairman and CEO. “We believe our professional management and industry experience will continue to drive same-store growth as our portfolio matures.”

After factoring operating and other income expenses, SST II reported a net loss for the year of about $15 million, up from a loss of $26.1 million in 2016. The REIT took in more than $74.4 million in self-storage rental revenue and $700,600 in ancillary operating revenue during the fiscal year.

The SST II portfolio includes 83 self-storage facilities in Canada and the United States. It comprises approximately 51,300 self-storage units and about 6 million rentable square feet of storage space. The company is sponsored by SmartStop Asset Management LLC, a diversified real estate company with a managed portfolio of 113 self-storage facilities in Canada and the United States. Its managed properties comprise approximately 8.2 million rentable square feet.

National Storage Affiliates Trust (NSAT), a Maryland real estate investment trust (REIT) specializing in self-storage, has announced several leadership changes to take effect on July 1. In addition, the company added Rebecca Steinfort to the list of nominees for its board of trustees, with elections scheduled to take place this spring.

Tamara Fischer will be promoted from her role as executive vice president to company president, while continuing as chief financial officer. Steve Treadwell will advance from senior vice president of operations to executive vice president and chief operating officer. He’ll also continue as president of the REIT’s property-management company. Brandon Togashi will be promoted from vice president to senior vice president and will continue as chief accounting officer and controller, according to a press release.

"We are extremely pleased to announce these promotions of our senior-management team as Steve and Brandon continue to expand their responsibilities and expertise,” said Arlen Nordhagen, chairman and CEO. “I especially appreciate handing off my responsibilities as president to Tammy. We believe the company will benefit from Tammy’s elevated leadership role and focus on operational execution, given her track record of results; and I will now be able to more fully dedicate my time to the strategic CEO and chairman roles as we continue to execute on our differentiated growth strategy.”

Steinfort serves as independent director and is a member of the audit committee for Milacron Holdings Corp. She’s also chief operating and business-development officer for Eating Recovery Center, a national behavioral-health service provider. Steinfort has held several executive, marketing and operational positions in her career, and earned an MBA from Harvard and a bachelor’s degree from Princeton.

"We are extremely pleased to announce the nomination of Rebecca Steinfort for election to NSAT’s board as an independent trustee,” said Paul Hylbert, the company’s lead independent trustee. “As a successful business leader with a unique combination of executive, marketing and technology expertise—coupled with her public company and private equity experience—Rebecca will bring valuable perspective as we expand our board and focus on shareholder value creation.”

Shareholders will vote for board nominees during the trustees’ annual meeting on May 23.

Headquartered in Greenwood, Colo., NSAT is a self-administered and -managed REIT focused on the acquisition, operation and ownership of self-storage properties within the top 100 U.S. Metropolitan Statistical Areas throughout the United States. The company has ownership interest in 540 storage facilities in 29 states. Its portfolio comprises approximately 34 million net rentable square feet.

Source:
National Storage Affiliates Trust, National Storage Affiliates Trust Nominates Rebecca Steinfort to the Board of Trustees and Announces Management Promotions

Global Self Storage Inc., a self-storage real estate investment trust (REIT), has released its financial statement for the quarter and full year that ended on Dec. 31, 2017. During the fourth quarter, the company’s combined-store revenue increased 24.9 percent to $1.9 million, with net operating income (NOI) growing 8.7 percent to $983,000, compared to the same period in 2016. Net leasable space for its entire portfolio decreased .8 percent to 748,000 square feet.

Same-store revenue increased 8.1 percent to $1.1 million, while NOI decreased 12.5 percent to $554,000, compared to the same period in 2016. Same-store occupancy was 91.2 percent as of Dec. 31, up from 90.8 percent the previous year.

The fourth-quarter results generally trailed the company’s performance through the full fiscal year. Combined-store revenue increased 42.4 percent to $7.5 million, with NOI growing 40.2 percent to $4.3 million, compared to all of 2016. Same-store revenue increased 8.2 percent to $4.5 million, while NOI grew 7.5 percent to $2.7 million, compared to the previous year.

The REIT reported net losses of $21,000 for the fourth quarter and $146,000 for the fiscal year. Adjusted funds from operation (FFO) total 4 cents per common stock for the quarter, down from 5 cents year over year. For all of 2017, adjusted FFO was 21 cents per common share, up from 16 cents in 2016.

On March 1, the company declared a quarterly dividend of $0.065 per common share, which is equal to last quarter. For the full year, the company paid dividends of 26 cents per common share, which is consistent with the previous fiscal year.

"Our revenue rate-management program; ability to attract high-quality tenants; and focus on secondary and tertiary markets in the Midwest, Northeast and mid-Atlantic drove our strong results, and more importantly, set the framework for how we plan to grow the business in 2018," said Mark C. Winmill, president and CEO. "While our focus for the year remains on improving our current operations and opportunistically expanding leasable square feet, we will also be looking to expand our self-storage portfolio through acquisitions when the timing is right.”

Global will pursue acquisition opportunities of underperforming facilities in its target markets, Winmill said. "Ultimately, by focusing on organic and inorganic growth, we believe we are well-positioned to successfully scale the business and drive higher funds from operation, which should generate greater value for our shareholders in the near- and long-term," he added.

Founded in 1983, Global Self Storage focuses on the acquisition, development, operation, ownership and redevelopment of storage facilities in the United States. Through its wholly owned subsidiaries, it currently owns and operates 11 properties in Connecticut, Illinois, Indiana, New York, Ohio, Pennsylvania and South Carolina. Its portfolio comprises 748,000 rentable square feet. The company changed its name from Self Storage Group Inc. in January 2016.

Source:
Nasdaq, Global Self Storage Reports Fourth Quarter and Full Year 2017 Results

Public Storage Inc., a self-storage real estate investment trust, has opened a new facility in Huntersville, N.C. The three-story building is part of the company’s ongoing effort to expand in the state, according to a press release.

The property at 10219 Bryton Corporate Center Drive contains nearly 900 climate-controlled units. It’s near a Walmart Supercenter, the man-made Lake Norman and Northlake Mall, a two-story shopping center.

Public Storage also opened a new facility in February in Gardena, Calif., a suburb in the South Bay region of Los Angeles County. The three-story property contains 350 indoor, climate-controlled units.

Based in Glendale, Calif., Public Storage has interests in 2,386 self-storage facilities in 38 states, with approximately 156 million net rentable square feet. Operating under the Shurgard brand name, the company also has 220 facilities in seven European countries, with approximately 12 million net rentable square feet.

Source:
Business Wire, Public Storage Opens New Huntersville Storage Facility

 

 

Phoenix-based U-Haul International Inc., which operates more than 1,300 self-storage facilities across North America and frequently recycles existing structures for its new locations, is converting three more properties to self-storage in Alabama, Georgia and Illinois. It’s also seeking zoning for two more conversion projects in Connecticut and Oklahoma.

U-Haul is transforming the former Hardie-Tynes Co. Inc. complex in Birmingham, Ala., to self-storage. The property at 800 28th St. N. offers hitch installation, moving and packing supplies, and truck and trailer rentals. Once renovated, it’ll contain 1,000 indoor, climate-controlled units, and space for 300 U-Box portable-storage containers.

Founded in 1895, Hardie-Tynes was a manufacturer of large-scale engineered industrials parts. “Hardie-Tynes Co. manufactured for the U.S. Navy, and almost all the ships and submarines used in World War II featured their parts," said Scott Fall, president of the U-Haul Co. of Central Alabama. “We are excited to preserve and grow this building’s history. The bones of the building are strong, and it will be a recognizable facility proudly representing Birmingham for many years to come.”

Downtown Birmingham is undergoing a revitalization, Fall said. “Old office buildings are being turned into housing, and the Central City neighborhood is booming. We are excited to be a part of this beautification effort.”

U-Haul Co. also acquired a 324,000-square-foot warehouse in Stockbridge, Ga., that it intends to partially convert to self-storage. Once complete, U-Haul Mobility & Storage at Eagles Landing, at 471 Eagles Landing Parkway, will contain 1,800 indoor storage units. In addition, it’ll house a new regional office for the company. The operation will encompass 108,000 square feet of the space, with the remaining 216,000 square feet available for lease. The property will feature a sidewalk expansion and charging station for golf carts, and a biking and walking path. U-Haul also plans to allocate space for 300 U-Box portable-storage containers and 40 rental trucks.

The company has already converted a portion of a two-building complex at 1975 W. North Ave. in Melrose Park, Ill. The site previously served as a corporate office for grocery-store owner Jewel-Osco. The 5.17-acre facility contains 924 storage units, and offers truck and trailer rentals, towing equipment, and moving and packing supplies. Once the 118,166-square-foot space is renovated, it’ll include 1,300 indoor, temperature-controlled units.

“We've been looking to expand in this area, and we're excited to bring our self-storage product to Melrose Park,” said Benjamin Shock, president of the U-Haul Co. of Central Chicago.

In addition to the existing conversion projects, U-Haul is seeking zoning approval for properties in Naugatuck, Conn., and Shawnee, Okla.

The Naugatuck Zoning Commission will hold a public hearing on April 18 to discuss the company’s plans for a vacant grocery store in the Crosspointe Plaza Shopping Center at 96 Cross St. U-Haul wants to redevelop the 52,735-square-foot space into indoor self-storage. The plans also include 70 U-Box portable-storage containers and a 20-foot-by-30-foot canopy for return-vehicle inspections, according to a source. U-Haul also plans to upgrade the building façade, and relocate the curbed islands and light poles.

A similar zoning request that involves converting a former Kmart in Shawnee, Okla., to self-storage has been tabled after residents opposed the plan. Shawnee City Commissioners unanimously agreed to defer the proposal after city manager Justin Erickson suggested U-Haul present a more detailed plan for the 8-acre property at 2327 N. Harrison, according to a source.

Vacant since October, the building contains 84,000 square feet of space. U-Haul would convert about 50,000 square feet to indoor, climate-controlled storage. The facility would also offer the sale of moving and packing supplies, and truck and trailer rentals, according to Scott Brackin, marketing company president for the U-Haul Co. of Oklahoma.

“Customers would be able to drive inside and load/unload out of the rain, cold or hot weather,” Brackin said. “I believe we are offering Shawnee residents something different than what’s around right now.”

Some residents disagreed during an April 2 public hearing, noting the proliferation of storage sites in the city. “We have self-storage all over town. It’s getting to where we kind of look like we have warehouses everywhere,” said Andrea Brown, who also expressed concern about a decrease in property values for homes near the facility.

Pam Cook, a manager for a nearby storage facility, said the city didn’t need more storage. “It’s going to hurt the rest of us in our little businesses and the U-Haul business we’ve already got.”

The facility’s design was also discussed during the meeting, particularly how the parked trucks and trailers would look. “I would hope that if we [commissioners] have any further input, not only can we try to make it so that it looks better, I don’t want to have another parking lot like the U-Haul we have up on North Harrison,” said Cody Deem, planning commissioner.

Deem also asked if landscaping would be a part of the design. Justin DeBruin, community development director, noted the site wouldn’t have any required landscaping.

From a business standpoint, Brackin noted that U-Haul doesn’t plan to pack the parking lot with rental trucks. “Our goal is to have them out hauling things,” he said.

Another person who took issue with the proposal was Loree Hopkins, who represented Hopkins Dental Clinic. The business would be across from facility’s street entrance on the north side. In addition to concerns about damage to the curbing, landscaping and vehicles at her property, Hopkins worried about possible criminal activity, particularly after hours. “We are a staff predominantly of women who arrive to work long before dawn and leave sometimes long after dark,” she said, adding that she’d rather see retail or another development that would be more beneficial to the community. “[Something] that we all would utilize, that we all might go to, and that would also increase the revenue through taxes for the community.”

Brackin noted U-Haul was willing to build fencing around the site to ease neighbors’ concerns. Site security would include LED lighting, individual unit alarms and video cameras.

Established in 1945, U-Haul owns more than 44 million square feet of storage space. The company’s corporate sustainability initiatives, which support infill development to help local communities lower their carbon footprint, has led to dozens of conversion projects in recent years.

Sources:
Markets Insider, U-Haul Reveals Plans for Former Hardie-Tynes Co. in Birmingham
Rebusiness Online, U-Haul Acquires 324,000 SF Warehouse South of Atlanta, Plans 1,800-Unit Self-Storage Facility, Regional Office
PR Newswire, U-Haul to Offer 1,300 Self-Storage Rooms at Former Jewel-Osco Office
Citizen’s News, Zoners Set Hearing for Proposed UHaul Facility
News-Star, Shawnee City Commission: Kmart Site Rezone Request Deferred

StorageMart, which operates 200 self-storage properties across Canada, the United Kingdom and the United States, has acquired Twin Cities Self Storage in the Minneapolis suburb of Chaska, Minn. The property at 2218, 1900 Stoughton Ave. comprises more than 89,000 square feet of rentable space in 544 units. It also contains parking spaces for vehicle storage. Features include climate control, drive-through loading bays, PIN-controlled access and video cameras.

“Bringing easy, clean storage service to Chaska is a great move, and we're thrilled to offer new self-storage service to the community,” said Cris Burnam, president.

The buyer and the seller were represented in the transaction by Tom Flannigan, a broker with KW Commercial and an affiliate of the Argus Self Storage Sales Network.

StorageMart reached the 200-property milestone last month with the purchase of Air Station Storage in Virginia Beach, Va. In February, it acquired two properties in the Des Moines, Iowa, metropolitan market.

Founded in 1999 and based in Columbia, Mo., StorageMart is privately owned and operated by the Burnam Family, which has been in the storage industry for three generations. Its portfolio consists of more than 12 million square feet of storage. It serves more than 75,000 self-storage customers, and operates in Chinese, English, Punjabi, Quebecois French and Spanish.

Argus is a Denver-based network of real estate brokers who specialize in storage properties. Formed in 1994, the company has 36 broker affiliates covering nearly 40 markets.

Source:
PR Newswire, StorageMart Grows with New Self Storage Facility in Chaska, MN

Apple Self Storage, which operates 31 locations in New Brunswick, Nova Scotia and Ontario, Canada, has named David Allan as its new vice president of development. The son of company co-founder Phil Allan, David Allan has also purchased a 25 percent ownership stake in the company, according to a press release.

“Apple Self Storage is a company where family matters,” David Allan said. “It’s a company where we all feel like family, and it’s that attitude that has helped us attract and retain some of the best employees in all of self-storage. I’m thrilled and humbled to have the opportunity to become a partner in what I consider to be the best self-storage company in Canada.”

David Allan graduated from Western University in 2006, and then pursued a career in sales at Xerox Corp. He later launched a series of small businesses in the insurance service and catastrophic loss-reduction industry. In 2012, he joined Apple in a business-development role, responsible for growing the company portfolio. Under his direction, it expanded from 13 to 31 owned and managed properties in four years.

Apple plans to continue a controlled growth pattern and focus on developing its third-party management division, the release stated. “We’re pretty happy to be able to have David join us for the long haul and continue to add value to what we’re doing,” said Phil Allan. “David cares about what he does, and he’s going to be a great asset for making sure this company stays strong for the coming decades. It’s really exciting stuff.”

Family-owned and -operated, Apple opened its first facility in 1974. Its properties comprise more than 1.2 million square feet of rentable space. The company offers standard and premium storage units, mailbox rental, package acceptance, hold-key service, and packing and moving supplies.

Source:
PR Web, Apple Self Storage Appoints David Allan as VP of Development, Acquires Ownership Stake

Moove In Self Storage, which operates 23 locations in Maryland, New Jersey, New York and Pennsylvania, has acquired Lock & Leave Self Storage in Middletown, N.Y. The property at 902 NY-17M is just north of New York State Route 302. Built in 1988, it contains five single-story structures comprising 28,300 square feet of storage space in more than 240 drive-up units.

The facility includes a management office, perimeter fencing and a gate with electronic access. Moove In plans to make several improvements, such as new signage and paving, an office renovation, and roll-up door replacements, according to a press release.

Like other properties in the Moove In portfolio, the facility will be managed by Investment Real Estate Management LLC (IREM), a branch of York, Pa.-based Investment Real Estate LLC, a property-management and consulting firm serving the self-storage industry.

“This property fits well into the Moove In Self Storage portfolio, with our two New Jersey stores just a short drive away,” said Dana Sinsheimer, district manager for IREM. “We are excited to get some capital improvements completed at this location and give it the Moove In facelift.”

Founded in 1997, Moove In operates facilities in Baltimore County in Maryland; Berks, Huntingdon, Lancaster, Montgomery and York Counties in Pennsylvania; and Sussex County in New Jersey.

Investment Real Estate LLC (IRE), a property-management and consulting firm serving the self-storage industry, has hired Yevgeni Kaniayev as a brokerage advisor, responsible for listings, sales, buyer representation, due diligence, financial analysis and feasibility studies for properties in the mid-Atlantic region, with a concentration in Maryland, the Virginias and Washington, D.C. He’ll be based in Sterling, Va.

Kaniayev has more than six years of corporate-sales experience across various industries. Prior to joining IRE, he worked for Deltek, a software and information-solutions provider for professional services firms and government contractors, for more than two years.

“We are absolutely ecstatic to have Yevgeni join the IRE brokerage team. He joins our company with a tremendous amount of experience from the world of business-to-business technology sales, and he brings a new and fresh perspective to our company and the industry,” said Kevin Bledsoe, vice president of brokerage. “We are excited to have a greater presence in these markets, which allows the IRE team to better serve our self-storage buyers and sellers in these areas.”

Yevgeni studied industrial engineering at the Schreyer Honors College at Pennsylvania State University. He’s a member of the Virginia Self Storage Association and the national Self Storage Association.

“I am incredibly happy to have joined the team at Investment Real Estate,” Kaniayev said. “Coming from a large global company, I wanted to be part of a company where I can have a greater impact, and I am thankful for the privilege of being the newest member of the IRE family. I love seeing how much everyone cares for the company and the people who are a part of it.”

Since its inception in 1998, IRE has provided brokerage, construction, development and management services to self-storage owners and investors.

 

 

We still call them cell phones, but they’re much, much more. We expect our phones to do nearly everything. While the range of mobile devices includes laptops and tablets, we depend mainly on our smartphones for the things we do every day. They’re our source for entertainment, purchases, transportation and conversations. They serve as our televisions, wallets, credit cards, cameras and car keys. Mobile phones are the new personal computers.

Some market sectors, such as banking, retail and healthcare, have made great strides in using the power of mobile computing to improve business functions and connect more effectively with customers. Innovation has proceeded more slowly in the self-storage industry, but profound developments are underway. When considering how this technology is changing our business, it’s useful to think about the perspectives of two user groups: facility operators and tenants.

Innovation for Operators

Mobile computing is enabled by the convergence of several technologies, including mobile Internet access, cloud computing, data storage, the Internet of Things and apps. All these technologies are in play for self-storage operations.

Historically, the storage industry has approached computing from the perspective of the operator, especially the site manager. The goal was to improve manager efficiency by computerizing the standard functions for payments, accounting, contracts and customer records. Personal computers (PCs) ran the software that streamlined daily processes, which freed up time for managers to pursue other duties. Digital records were maintained onsite and usually accessed by a manager, who used the PC for all transactions and functions. Business metrics were available on a site-by-site basis, but there was no convenient way to aggregate results across multiple sites and review overall company performance.

With the advent of cloud computing, we now have new tools for improving operational efficiency. Business data is accessible in the cloud and accessed via any device with an Internet connection. Information for all facilities can be centralized and available for real-time monitoring. Owners, executives and site managers can execute computer functions remotely, and collaborate on work assignments and decision-making. Cloud computing also makes it easier to manage security, control site access, share files, review business data, manage expenses, identify trends, and develop strategies for enrolling new tenants. Additionally, tenants now do at least some of the work managers used to do.

Innovation for Tenants

While products to support a self-storage business have traditionally focused on the manager, the next generation of innovations centers on the tenant. The goals for these new products are to improve the customer experience and strengthen the relationship.

For example, mobile technology gives you the tools you need to reach Generation X and Millennial consumers (people born between 1965 and 2005). For these groups, the customer experience is the most important part of the purchasing decision. These customers are more independent than previous generations, and fully engaged with mobile technology. For many of them, the mobile Web is their only way of connecting with the Internet.

Google reported that in 2016 it processed 707 million queries for searches related to these keywords: “self-storage near me.” Sixty-three percent of those queries were initiated from mobile devices, and 89 percent of those produced some type of next action from the user.

Today’s prospective tenants are using their mobile devices to research local facilities, and they’re qualifying their options by taking virtual tours and reading online reviews. Once they’re customers, they pay their monthly rental fees online. They expect to engage with self-storage in the same way they handle every other aspect of their lives—by accessing an app on their smartphone. The storage industry is responding by developing apps to facilitate more engagement with tenants, including those that enable gate access and round-the-clock security monitoring.

Impact on the Business Model

While the rapidly developing technology trends can be challenging, self-storage operators stand to gain from a business model that’s changing to meet an emerging set of consumer needs. Mobile offers a cost-effective approach for delivering high-value services that will command a premium price in the marketplace. You can improve your bottom-line results by adopting solutions that simultaneously reduce expenses and increase revenue.

Thomas Brooks is vice president of sales for PTI Security Systems, a provider of access-control and security systems for the self-storage industry. He applies his knowledge of technology to the self-storage industry to better secure owner investments and improve facility revenue and valuation. For more information, call 800.523.9504; visit www.ptisecurity.com.