Sovran Self Storage Inc., a self-storage real estate investment trust, reported operating results for the quarter ended March 31, 2010. Highlights include:

• Net income available to common shareholders was $7.4 million. For the same period in 2009, it was $7.6 million.
• Funds from operations for the quarter were $.60 per fully diluted common share. A slight decline in operating income coupled with the impact of the company's four million share offering contributed to the decline in per share results.
• Total company net operating income for the first quarter declined 2.7 percent compared with the same quarter in 2009 to $29.7 million.
• Overall average occupancy for the quarter was 79 percent and average rent per square foot for the portfolio was $10.36.
• Revenue for the company’s 353 stores for the quarter decreased by 1.3 percent from those of the first quarter of 2009, the result of a 40 basis point drop in occupancy and a 10 basis point drop in rates, offset by a strong increase in other income.

"In many markets, we are gaining some pricing power by channeling a higher level of inquiries into stronger asking rates and decreased incentives," said Kenneth Myszka, president and COO. "Pricing continues to be a function of demand at the specific store and unit level, and it varies greatly from market to market and store to store. We continue to gauge the sensitivity of these conditions in our efforts to optimize realized revenue."

Source:  The Wall Street Journal,  Sovran Self Storage Reports First Quarter 2010 Results, Ups Guidance and Announces New Head of Revenue Management

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A self-storage project in Chester Heights, Pa., is facing more hurdles, once again delaying the facility’s grand opening.

Chester Heights Self-Storage Center was originally scheduled to open a year ago. The opening was derailed by adverse weather conditions and construction issues, but was reportedly expected to open April 15. It could be another month before the problems are resolved, according to Chester Heights Fire Marshal Mike Ciocco.

Road paving around the first two buildings is now complete and an emergency access road has been added. A water line leak was also repaired. The facility still needs monitors for the sprinkler system, and city-approved fencing.

The 5-acre facility will open with two storage buildings, with expansion plans for two more.

Source:  Delaware County News Network,  Chester Heights Business Openings Delayed

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York, Pa.-based Investment Real Estate Management (IREM) has added two more facilities to its portfolio of managed self-storage properties.  
 
Storage Atlantic in Bear, Del., is a 68,405-square-foot, single-story facility containing 569 units. Built in 2004, the store is on the heavily traveled Pulaski Highway. 
 
West Chocolate Ave. Self Storage in Hershey, Pa., is a 28,310-square-foot, single-story facility containing 189 units. It probably has the best location in the nation for fragrance, being across the street from the Hershey’s Chocolate West Processing Plant. This store was recently purchased by existing IREM management clients.
 
IREM manages more than 45 self-storage properties in seven states. The Investment Real Estate Group of Cos. provides self-storage brokerage, construction, management and consulting services to owners and investors in the mid-Atlantic and northeastern United States.

 
Storage Atlantic in Bear, Del., (left) and West Chocolate Ave Self Storage in Hershey, Pa.

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In the self-storage industry, site security is a basic requirement. Visible security on the property assists in protecting your investment and creates a sense of comfort for tenants.

With the right products, a well-designed security solution becomes an effective tool for setting your business apart from the rest of the pack. Capitalize on the facility’s security characteristics, and your successful enterprise will retain customers who’ve already chosen your business and attract those who might.

If you want to establish your business as the facility of choice by promoting site security, keep two things in mind: customer perception, and component benefits of the solution itself. Fortunately, you can influence both. 

Inspect Your Property’s System

First, take a comprehensive look at your site security and evaluate whether the components are visible and provide the features and benefits your business requires. You should proactively inspect your equipment to ensure the acceptable condition of all components.

Also, market the value of your security to customers. Security options will speak for themselves, and customers will notice the difference between your facility and others in the area. You’ll want to make sure your business lives up to any claims you make about security in print, in person or online. 

The Solutions

Among the components of effective site security are individual unit-door alarms, unit overlock devices, alert systems, security cameras, video monitors and digital video recorders (DVRs). All of these products provide layers of protection for your facility. In addition, access-control systems and facility-management tools can affect the customer’s perception of effective security.

Not only will you attract and retain customers, industry studies indicate that facilities with visible security and electronic access control can command rental rates nearly 30 percent higher. Whether you plan to upgrade, expand or construct a new facility, costs for site security are extremely low when compared to a typical facility’s revenue. Here’s a breakdown of some common security products every owner should consider.

Door alarms and overlock devices for individual units. These products attract prospective tenants by increasing security at the unit. Owners benefit by adding competitive advantages and are able to command higher rental rates for the secured units. Door alarms enable the monitoring of every door status reactively. An overlock system will provide proactive benefits such as discouraging tailgating into the facility, preventing unit access during a customer’s extended absence, and improving documentation of site activity.

Cameras, monitors and DVRs. A video system supports an owner’s marketing efforts by making security very visible to customers in the main office and throughout the property. These devices can also reveal the truth about incidents that could result in loss or property damage.

Alert systems.  Alert systems are economical solutions that can be placed anywhere it’s important to detect a pedestrian or approaching vehicle.

Access-control system. Controllers and access devices help manage customer and visitor traffic through secured entryways such as gates, doors and elevators. Products that automate access control and contribute to site security minimize the potential for illegal or unwanted activities and enable a facility to demand higher rental rates.

Gate keypads. For the best security, add keypads with four-line display, additional relays and a color camera at entrances and exits. A free exit loop is less expensive, but an exit keypad identifies everyone on the site at the time of vandalism or theft, and can re-arm the unit if door alarms and overlock devices are included in the solution.

Keypads for building doors. Keypads used with a door strike or magnetic lock automate access and secure entrances to wine storage or areas for pharmaceutical or document storage. Add a keypad to an elevator, and you can control and secure tenant access to specific floors.

Gate and door operators. Commercial gate operators are the most common form of perimeter access control. Commercial door operators, ideal for premium storage of boats and RVs, provide additional customer convenience and security at each unit.

Stand-alone access control. A basic access-control system is a practical solution for perimeter access at small facilities or added interior-door access at larger sites. Although they’re independent of a more advanced integrated solution, these devices provide automated access control and important visible layers of security at a facility.

Lighting. Using functionality provided in the access-control system controller, you can automatically turn lights on as a customer moves through the facility and turn the lights off when the last customer leaves.

Music and intercom systems. A music system can soften a stark environment. When combined with strategically positioned intercom substations, the system can provide a sense of security for prospective customers.

Site graphics. Nothing demonstrates security like the status of every unit displayed graphically in the lobby. Customized, color-coded maps guide prospective customers to featured units and provide quick tracking of site activity. Add individual unit door alarms, and you’ll be able to visually monitor the status of every door.

Promoting your facility’s site security sends a clear message to would-be criminals and gives your current and future customers comfort. The right products working together will protect your investment, and give you an effective marketing tool to establish your business as the facility of choice in your community. 

As marketing manager for Chamberlain Access Solutions, Nikki Estrada leads the promotion of the company’s offerings. Chamberlain develops and manufactures access control, site security, and facility-management products and services for the self-storage industry. Offering the AccessMaster, PTI and Digitech brands, the company delivers integrated hardware, software and service solutions for customers worldwide. For more information, call 800.331.6224; visit www.chamberlainaccess.com. 

****************

Dealing With Business Challenges

Business challenge: Theft

The solution: The right access control, site security and facility-management solutions will help protect an owner’s investment. Products and tools that secure a site’s perimeter, assist with recording revenue transactions, and provide evidence when needed will reduce the potential for incidents that result in revenue loss or property theft.

Recommended products: Individual unit-overlock devices, facility-management software, automatic gate and door operators, code and card tenant-access devices, cameras, monitors, and digital video recorders. 

Business challenge: Illegal activities and property abandonment

The solution: Attention to perimeter access control will deter intruders and minimize the potential for illegal or unwanted activities such as dumping or abandonment of materials. The right security solution can reveal the truth about acts of vandalism that result in property damage.

Recommended products: In addition to the ones mentioned above, pedestrian and vehicle-alert systems. 

Business challenge: Providing tenant services

The solution: Expansion of services and conveniences for tenants can increase revenue and customer satisfaction.Products that extend hours of operation, increase tenant communication with the office, and make site security more visible are indispensible for expanding services and adding competitive advantages.

Recommended products: In addition to the ones mentioned above, radio-frequency transmitters, intercoms, and music and paging systems. 

Business challenge: Increasing revenue

The solution: The perceptions of prospective tenants are influenced by systems that are superior to the equipment at other neighborhood storage facilities. Periodic security and access additions can validate rent increases for existing tenants.Studies show that more than 75 percent of tenants feel anytime access is important, and more than 30 percent are willing to pay more for this service. Fifty percent of renters believe it’s important to have security at the unit, and 22 percent are willing to pay more for it. Facilities can command rental rates nearly 30 percent higher with visible security and electronic access control.

Recommended products: All of the above.

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Andy Sodano, owner of Houston Self Storage and Licking Self Storage of Missouri, is running as the Republican candidate for presiding commissioner of Texas County, Mo.
 
A resident of Raymondville, Mo., Sodano raises black angus cattle and owns various other Missouri businesses such as Country Cupboard, Detail Master Home Inspections and Journeys End Range. He is a member of the Houston Lions Club, Licking Chamber of Commerce, Missouri Farm Bureau Commodities Committee, Missouri Farm Bureau Beef Advisory Committee, Missouri Farm Bureau Promotion and Education Committee and the Texas County Farm Bureau Board. He is also a chartered organization representative for Troop 99 of the Boys Scouts of America and branch president of the Church of Jesus Christ of Latter-Day Saints.
 
Sodano grew up on a Pennsylvania farm and worked in the family construction business. He has worked in various industries including general contracting, concrete contracting, land and property development, property management, hotels, restaurants, offices, shopping centers, valet parking lots, franchise development and tanning salons.
 
Sodano and his wife, Melinda, have six daughters.
 
Source: Houston Herald, Sodano seeks GOP presiding commissioner nomination

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Self-storage operator U-Store-It has launched a "Show Us What You've Got" video contest to highlight the wide variety of fun and interesting items that may be stored in one of the company’s units. The company invites anyone to submit a two-minute online video about their belongings for a chance to win $5,000 and one free year of self-storage. 
 
Submissions will be judged on uniqueness of the items shown, creativity, entertainment value and suitability for future advertising. Videos of up to two minutes in length can be submitted at www.ustoreitvideocontest.com through June 30. Beginning July 16, the top five videos will be posted on the contest website, and the public can vote for their favorite. The video with the most votes will win the grand prize.
 
"The 'Show Us What You've Got' video contest is a fun way for us to engage both existing and potential customers, and showcase all the interesting things that can be placed in self-storage," said Steve Hartman, senior vice president of marketing. "Our existing customers store some amazing items and have some phenomenal stories about what they have in our facilities. We know there are a lot more of these items and stories out there, and a contest is a great way to get them on video.”
 
There is no purchase necessary to enter. The contest is open to legal residents of the 50 United States and District of Columbia, 18 years of age or older. Official contest rules can be found on the website.

U-Store-It Trust is a real estate investment trust that owns and or manages 459 facilities across nationwide and operates the U-Store-It Network, which consists of approximately 772 additional self-storage facilities.

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U-Store-It Trust is partnering with Penske Truck Rental to provide rental trucks at select U-Store-it self-storage locations. The addition of full-service moving truck rentals complements U-Store-It's self-storage services and packing and moving supplies, the company stated.

"Penske and U-Store-It share similar customers, and having reliable trucks available at our self-storage locations, in addition to packing supplies and storage options, will make it easier for all of our customers to take care of their local or national moves,” said Guy Middlebrooks, director of operations for U-Store-It.

U-Store-It is a real estate investment trust that owns or manages 460 self-storage facilities nationwide and operates the U-Store-It Network, which consists of approximately 772 additional facilities.

Source:  The Wall Street Journal,U-Store-It Becomes National Storage Partner for Penske Truck Rental

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A video-surveillance tape from Uncle Bob’s Self Storage on Cook Road in Houston captured the alleged beating of a 15-year-old boy by eight Houston police officers. Chad Holley was arrested at the facility on a burglary charge on March 24, but claims the officers beat him so badly he blacked out.
 
Due to the pending criminal case against him, Holley would not speak about the circumstances surrounding the arrest, but said he did not resist. The high-school sophomore claims he was face down on the ground while officers punched him in the face and kneed him in the back. Holley currently has no criminal record.
 
After the arrest, Holley was taken to a juvenile detention center, where his mother, Joyce Holley, collected him. She rushed him to West Houston Medical Center, where they spent the next 12 hours. He was treated for several injuries, including a fractured nose and multiple bruises.
 
The Harris County District Attorney’s Office is investigating, and the FBI has requested the video tape. Mayor Annise Parker said she viewed the tape and there will be repercussions.
 
Activist Quanell X said Holley’s civil rights were violated, and demanded that the DA’s office indict the officers for official oppression and excessive use of force.
 
The accused officers are suspended on paid leave pending the outcome of the investigation. They have been identified as Sgt. John McClellan and officers Andrew Blomberg, Phillip Bryan, Lewis Childress, Raad Hassan, Waleed Hassan, Drew Ryser and Gaudencio Saucedo.
 
Sources:

KHOU Houston, Exclusive: Teen describes alleged beating by Houston police
 
United Press International, FBI wants tape of police beating teen

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The national Self Storage Association (SSA), Illinois Self Storage Association (ISSA) and several of their members have launched a campaign against a self-storage sales tax that is already in force in several suburban Chicago municipalities and has been proposed for more.
 
Harwood Heights began collecting a 3 percent sales tax on self-storage beginning April 1. In 2008, the Village of Morton Grove instituted a similar tax. Now the city of Oakbrook Terrace is considering a measure that would hit tenants with a 3.5 percent tax on their self-storage rentals beginning July 1, 2010.
 
The SSA and ISSA feel the tax is unconstitutional, arbitrarily targeting the self-storage industry and its customers. The tax does not apply to the rental of other types of space such as spare rooms, warehouses, garages, apartments, offices, retail stores or industrial space. There is also no tax on the use of mobile-storage containers or mobile-storage warehousing, and no tax on storing goods in other types of space.
 
In addition, opponents claim the measure represents double taxation, because a portion of each self-storage tenant’s rental fee is already remitted to the government in the form of property tax.
 
In the case of Harwood Heights, the only self-storage operator affected is Public Storage Inc. The company was not informed of the tax proposal before Village trustees enacted it. Oakbrook Terrace contains two self-storage facilities, one belonging to Public Storage and the other to Metro Storage.
 
The Oakbrook City Council will hear public opinion on the matter during a meeting on May 11. The SSA is encouraging Illinois operators to voice their concerns.

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