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U-Haul Parent Company AMERCO Reports Fourth-Quarter, Fiscal 2018 Financial Results

Article-U-Haul Parent Company AMERCO Reports Fourth-Quarter, Fiscal 2018 Financial Results

AMERCO, the parent company of U-Haul International Inc., reported financial results for the fourth quarter and its full 2018 fiscal year, which ended on March 31. Self-storage revenue increased $9.9 million during the quarter, compared with the fourth quarter of fiscal 2017, while growing 12.9 percent for the year to $37 million. The company added approximately 3.7 million net rentable square feet to its owned self-storage portfolio during the year.

Average monthly occupancy throughout fiscal 2018 for its owned self-storage portfolio was 72 percent. Facilities operating for more than three years averaged 84 percent, while facilities open for less than three years averaged 39 percent occupancy, according to a press release.

Companywide, AMERCO reported net earnings available to shareholders for the full fiscal year were $790.6 million, or $40.36 per share, compared with net earnings of $398.4 million, or $20.34 per share, for the same period last year. For the fourth quarter, net earnings available to shareholders was $10.8 million, or $0.56 per share, compared with net earnings of $9.5 million, or $0.49 per share, during the previous fourth quarter.

"Customer demand for our self-moving and self-storage products remains steady," said Joe Shoen, chairman. "We made progress in managing the sale of our pickups and cargo vans during the quarter, but more work remains. We continue to invest in self-storage, the rental fleet and technology for the long-term."

The company held its investor call for the quarter and fiscal year yesterday. A replay is expected to be accessible by visiting the “Events and Presentations” area of amerco.com.

AMERCO is the parent company of U-Haul International, Oxford Life Insurance Co., Repwest Insurance Co. and Amerco Real Estate Co. Established in 1945, U-Haul has more than 44 million square feet of self-storage space at owned and managed facilities throughout North America.

Source:
PR Newswire, AMERCO Reports Fiscal 2018 Financial Results

Pinnacle Storage Properties Hires Small-Business Underwriter, Financial Analyst

Article-Pinnacle Storage Properties Hires Small-Business Underwriter, Financial Analyst

Pinnacle Storage Properties, a Houston-based firm that operates 10 Texas self-storage facilities under various names, has hired Ross Smolen as its new small-business underwriter and financial analyst. He’ll be responsible for underwriting all transactions by evaluating loan-to-value and debt-coverage ratios, analyzing business history, and looking at long- and short-term projections. Pinnacle is actively exploring all potential self-storage acquisitions, according to a press release.

“We are very excited to welcome Ross to our team. Not only will he bring an elevated level of financial logistics to Pinnacle Storage Properties, but he will also be a go-to contact for underwriting and commercial real estate expertise,” said CEO John Manes.

Smolen is a licensed real estate agent with experience in commercial brokerage and construction management. He’s a graduate of the Cyvia and Melvyn Wolff Center for Entrepreneurship at the University of Houston. While studying, Smolen led Exostretch, a technology-transfer startup surrounding a stretchable, thin-film battery. Exostretch participated in the National Science Foundation’s IN-LA Blitz Program, an educational curriculum, in which he was provided with an experiential learning opportunity to determine the commercial readiness of technologies, develop a clear go/no-go decision regarding commercial viability, and create a transition plan to move technology to market.

Smolen also served as external-relations officer for the Undergraduate Real Estate Scholars, connecting students with programs and professional organizations such as CCIM Institute, Commercial Real Estate Women Network, NAIOP (National Association of Industrial and Office Properties), Urban Land Institute and others.

“I am excited to be working with Pinnacle Storage Properties, and I hope to provide Pinnacle Storage with the resources and strategies that will move them to the next level in the commercial real estate industry,” Smolen said.

Pinnacle is a privately held real estate owner and operator focused on the acquisition, development and management of self-storage assets. It investment strategy is to purchase under-leveraged properties in suburban and secondary markets. It currently has a location under development in Round Rock, Texas.

 

Self-Storage Talk Featured Thread: Tenants Bidding on Their Own Lien Sale

Article-Self-Storage Talk Featured Thread: Tenants Bidding on Their Own Lien Sale

When a self-storage tenant falls behind on rent, getting him caught up can be challenging. While some customers are able to bring themselves current, others end up in lien-sale status. Auctioning a tenant’s belongings allows facility operators to recoup some of that lost revenue and clear out the unit for a new rental. But what happens when the past-due customer is among the sale bidders?

In a recent thread on Self-Storage Talk, the industry’s largest online community, a member is discussing the above scenario and contemplating possible outcomes. Her customer owes about $600 and has vowed to make a play for her belongings at auction. Is this allowed? Should the other bidders be informed? What if the lien sale doesn’t reach the amount owed? Members are sharing their own thoughts and strategies. Read their advice and join the conversation.

ISS Opens 2018 Best of Business Campaign Focused on Self-Storage Suppliers

Article-ISS Opens 2018 Best of Business Campaign Focused on Self-Storage Suppliers

Inside Self-Storage (ISS) has opened the voting for its 2018 Best of Business reader-choice poll, in which self-storage professionals identify their favorite product and service suppliers in more than 35 categories. Voters can choose their favorite companies in categories such as Best Builder, Best Lighting, Best Manager Training and many others.

Voting takes place at www.insideselfstorage.com/vote through June 30. Participants can vote one time in as many categories as they wish after verifying their e-mail address.

The results of this year's campaign will be published on the ISS website on Aug. 1. The winners will also be featured in the November edition of ISS magazine.

The winners of previous campaigns can be viewed on the Best of Business page.

For more than 27 years, ISS has provided informational resources for the self-storage industry. Its educational offerings include ISS magazine, the annual ISS World Expo, an extensive website, the ISS Store, and Self-Storage Talk, the industry’s largest online community.

ISS Blog

Is Direct-Mail Marketing Still Delivering Customers to Your Self-Storage Facility?

Article-Is Direct-Mail Marketing Still Delivering Customers to Your Self-Storage Facility?

While it’s always tempting to direct self-storage operators’ attention toward new technological advancements and developing trends that could potentially impact their business, it’s equally important to issue reminders when tried-and-true formulas continue to be effective. In marketing circles, new-school tactics can quickly become old-school ideas when the next shiny trend goes viral. But that doesn’t mean older strategies cease being useful; they’re just not as sexy to discuss.

Self-storage operators have debated for years about the ongoing usefulness of Yellow-Pages ads. Many have abandoned the platform altogether in favor of other channels like targeted Facebook ads, while others still get returns on their investment—often in rural markets. For all the talk about the effectiveness of social-media influencers, SMS, e-mail campaigns, Google Business listings and so on, it turns out direct-mail marketing may still outpace them all.

Gunderson Direct Inc., a marketing firm that specializes in direct campaigns, recently sponsored a slide deck published by MarketingCharts.com that’s chock full of interesting tidbits on why direct mail continues to be a successful marketing strategy for business-to-business (B2B) and business-to-consumer (B2C) campaigns. While you certainly have to consider the source, there’s plenty to suggest that old-school snail mail could still be among the most impactful ad channels for your self-storage business.

“Mail is tangible, targeted, scalable and trustworthy,” Gunderson officials wrote in the foreword to the deck. “Direct mail is delivering better-qualified leads and, in turn, more sales! One thing’s for sure—everybody checks their mailbox!”

That last bit is an important distinction. While we can set up filters to identify and jettison certain e-mails as spam or block texts or callers from disturbing us on our cellphones, even so-called junk mail delivered by your neighborhood postal worker typically needs to be touched before it can be pitched. That brief encounter, however fleeting, is an opportunity for customer acquisition that a blocked text message or junk-filtered e-mail never achieves.

According to a 2017 study by the Data and Marketing Association (DMA), direct mail has far better response rates for house and prospect lists than digital channels, including e-mail, paid search, social media and online display advertising. Among the reported digital channels, e-mail marketing tied paid search for the best response rate at .6 percent. By comparison, the response rate for direct mail was 5 percent.

While printing and distribution costs could certainly be a diminishing factor in the investment returns for direct mail pieces, it’s also interesting to note the DMA study revealed that oversized envelopes have the highest response rates for B2B and B2C advertisers, while producing the highest ROI among mail types. The bigger the mail piece, the more likely it’s going to stick out and force someone to touch it. In contrast, while e-mail file size may differ, when was the last time you were compelled to open an e-mail because it had more KBs than others sitting in your inbox?

While 25 percent of households don’t read direct-mail ads, 52 percent do, according to a U.S. Postal Service study. Counting those who at least scan advertising pieces, 73 percent of U.S. households pay at least a glancing attention to the so-called junk that clutters their physical mailbox. Again, consider the source, but e-mail marketers would kill for a touch rate anywhere near those figures.

What may be most interesting is the level of trust consumers seem to place in direct-mail advertisers. Not surprisingly, Millennials—the most marketing-aware and corporate-leery of all generations—ranks the lowest when it comes to trusting direct-mail ads at 70 percent, according to MarketingSherpa. Seventy percent. No matter how you write it, that’s impressive. By comparison, 80 percent of Baby Boomers and 77 percent of Generation Xers trust direct mail when making purchase decisions.

This isn’t to encourage you to abandon new modes of advertising. Mobile marketing is still among the most pressing areas on which self-storage operators should become educated. A multi-channel advertising approach has long had merit for building brand presence, establishing message consistency and reaching diverse groups. As always, the effectiveness of your artwork and messaging play an enormous factor in getting a prospect to pause long enough to either contact you about your storage services or file the direct-mail piece for future reference.

In some ways, though, it may be comforting to know that contributing to the proliferation of junk mail may be well worth the investment after all.

England Self-Storage Operator SureStore Launches Behind Investment Package

Article-England Self-Storage Operator SureStore Launches Behind Investment Package

U.K. self-storage entrepreneurs Mike Wilson and Andy Wood have received investment backing from Seneca Partners Ltd. to launch the new SureStore brand. The pair have already acquired three properties in Northwest England, recently opening their first facility in Bolton. Developments are also underway in Northwich and Wigan. When complete, the company’s first three properties will comprise about 120,000 square feet, according to a source.

Wilson and Wood intend to build the brand quickly through acquisitions and development, with plans to add seven more locations across the Northwest and Midlands during the next 18 months, a source reported.

“We are excited to be behind this drive to take personal and business storage to the next level and are particularly gratified that it has started here in the Northwest,” said Wilson, who will lead the venture’s operation and strategic direction. “Customers are increasingly seeking accessible, secure, technologically advanced solutions to their many and varied storage needs. Alongside state-of-the-art storage, we aim to offer a range of additional services, including parcel collection and mail redirection, all of which can be accessed remotely.”

Wilson was previously CEO of Smart Storage, rising from chief financial officer. He executed a management buyout in 2014 with financial backing from Seneca and then sold the business for £13 million in March. The transaction provided Seneca a six-times return on its investment, a source reported.

Wood was European sales director for a self-storage development firm before co-founding Storage Boost in 2005. The company built a self-storage portfolio of three properties before selling for an undisclosed amount last year.

SureStore plans to target commercial tenants as a point of differentiation. “We have been spurred on by the knowledge that business users in self-storage are growing exponentially,” Wood told a source. “At last count, there were 150,000 separate businesses using self-storage in this country. Business owners are recognizing that there is a flexible and cost-effective alternative to fixed leases. Naturally, they demand the most up-to-date premises and highest levels of customer service. That is where our managed storage brand strategy comes into its own.”

Founded in 2010, Seneca is a corporate-advisory and investment-management firm specializing in small and mid-sized enterprises. Its equity strategy includes growth capital, private equity and property investments, according to its website.

Sources:
The Business Desk, Duo Land Major Funding Package to Launch Storage Business
Manchester Evening News, Storage Entrepreneurs Team Up for New Venture

James River Self Storage Expands in Springfield, MO

Article-James River Self Storage Expands in Springfield, MO

James River Self Storage in Springfield, Mo., is expanding with the addition of nine buildings comprising 35,540 square feet of storage space in 255 units. Expected to open in August, the new structures at 3048 S. Kauffman Road will include one climate-controlled building and another designed for vehicle storage. The project is estimated to cost $1.66 million, according to the source.

The site currently contains two climate-controlled buildings containing nearly 500 units, according to Kent Smith, co-owner of Kenmar Construction Inc., the general contractor on the project. The firm built the facility’s first phase a decade ago. “It rented out full after two years and has pretty much stayed full,” Smith said.

During the second phase, construction crews contended with steep grading on the north end of the property. “We took out almost 12 feet of dirt to level the site,” Smith said.

The addition will be designed by H Design Group LLC. The civil and structural engineering will be provided by Pinnacle Design Consultants LLC, while CJD Engineering LLC will oversee the mechanical, electrical and plumbing, the source reported.

James River is managed by The Wooten Co. LLC., which specializes in real estate investment and property management. Founded in 1978, its management portfolio includes Ingram Mill Self Storage, also in Springfield, several commercial properties and more than 4,400 apartments.

Source:
SBJ, From the Ground Up: James River Self Storage, Phase II

XPS Solutions Releases Reputation-Management Products for Self-Storage

Article-XPS Solutions Releases Reputation-Management Products for Self-Storage

XPS Solutions, a provider of outsourced technology solutions for the self-storage industry, has released two reputation-management products for facility operators: Reputation Optimizer and Reputation Surveyor. The offerings aim to bolster customer reviews for independent sites as well as improve overall scores, according to a press release.

“Self-storage facility owners are now hard-pressed to pursue and generate reviews as an ante into their local market. Today’s tenant is very tech-savvy and uses Internet search to its fullest potential, which obviously includes review ratings and strong SEO results,” said Rob Canales, vice president of product development. “Recent reviews typically spur immediate interest for prospective tenants, provided they see enough reviews and their scores are 4.0 or better. Most knowledgeable facility owners recognize this trend, and want a comprehensive strategy for acquiring reviews and managing them. Our platform makes an immediate and measurable contribution with positive reviews.”

“The two most obvious ways to grow a property is to bring more tenants into the facility and to increase the average stay,” added CEO John Traver. “Reputation addresses the first opportunity by answering the search engine question of ‘Who should I use for storage?’ We’ve implemented this reputation tool within our call process and we are generating far more new and faster reviews than for facilities who try to do it themselves. Reputation is a straightforward game: Tenants do their homework on the Web with the number of reviews and the average score driving the bulk of their decision. This solution addresses both, while channeling out negative reviews.”

Founded in 2000 and headquartered in Richardson, Texas, XPS provides an integrated mobile application for tenants, reputation solutions to drive SEO, payment processing, interactive voice response, and voice and chat solutions designed to capture more rentals and enhance the stay of tenants.