The five largest publicly traded, U.S.-based self-storage real estate investment trusts (REITs)—CubeSmart, Extra Space Storage Inc., Life Storage Inc., National Storage Affiliates Trust and Public Storage Inc.—have announced when and how they will reveal their earnings statements for the second quarter of 2018, which ended June 30.

CubeSmart

CubeSmart will release its second-quarter financial results after the market closes on July 26. An accompanying conference call will be held at 11 a.m. ET on July 27. A live webcast of the conference call will be available from the investor-relations page of CubeSmart.com. The dial-in numbers are 877.506.3281 for U.S. callers, 855.669.9657 for Canadian callers and 412.902.6677 for other international callers. To avoid delays in joining the call, participants can pre-register and receive a special dial-in number and PIN at http://dpregister.com/10121594.

After the live webcast, the call will remain available on the company website for 30 days. In addition, a telephonic replay of the call will be available through August 27. The replay dial-in number is 877.344.7529 for domestic callers, 855.669.9658 for Canadian callers and 412.317.0088 for other international callers. The conference number is 10121594.

CubeSmart owns or manages 1,019 self-storage facilities across the United States. Its operating portfolio comprises more than 60.5 million square feet.

Extra Space Storage Inc.

Extra Space will release its earnings report after the market closes on July 31. The REIT will host a conference call on Aug. 1, at 1 p.m. ET, to discuss its financial results. Hosting the call will be CEO Joe Margolis and Scott Stubbs, executive vice president and chief financial officer.

During the call, company officers will review performance, discuss recent events, and conduct a question-and-answer period for registered financial analysts. All other participants will have listen-only capability.

The phone number for the call is 855.791.2026 for U.S. callers and 631.485.4899 for international callers. The conference-call playback will be accessible at 855.859.2056 in the United States or 404.537.3406 internationally. The participant passcode is 1994503.

The conference call will also be available on the investor-relations page of ExtraSpace.com. Those who wish to listen online should visit the website at least 15 minutes before the event start time to register and install any necessary audio software. A replay of the call will be available online for 30 days.

The full text of the earnings report and supplemental data will also be available on the company website immediately following the earnings release to the wire services.

Headquartered in Salt Lake City, Extra Space owns or operates more than 1,523 self-storage properties nationwide and in Puerto Rico. The company’s properties comprise approximately 1 million units and 115 million square feet of rentable space.

Life Storage Inc.

Life Storage will issue its quarterly results after the market closes on Aug. 1. The company will conduct a conference call to review the financial results on at 9 a.m. ET on Aug. 2.

The call can be accessed at 877.737.7051 within the United States or 201.689.8878 internationally. Participants can pre-register and receive a passcode and unique PIN at https://bit.ly/2usg3f9. Management will accept questions from registered financial analysts after prepared remarks. All others are encouraged to listen to the call via webcast from the investor-relations page at LifeStorage.com.

The webcast will be archived for 90 days. A telephone replay will be available for 30 days after the meeting by calling 877.481.4010 and entering conference ID 33708.

Based in Buffalo, N.Y., Life Storage operates more than 700 self-storage facilities in 28 states, under the Life Storage and Uncle Bob's Self Storage brand names. Its portfolio of owned and managed facilities comprises about 49 million square feet.

National Storage Affiliates Trust (NSAT)

NSAT, a Maryland REIT, will reveal its earnings statement for the quarter that ended June 30 after the market closes on Aug. 6. The company will conduct a conference call to review the financial results at 1 p.m. ET on Aug. 7.

The call can be accessed at 877.407.9711 within the United States or 412.902.1014 internationally. Management will accept questions from registered financial analysts after prepared remarks. All others are encouraged to listen to the call via webcast from the investor-relations page at NationalStorageAffiliates.com. A replay of the webcast will be archived for 30 days.

A telephone replay will be available by calling 877.660.6853 in the United States or 201.612.7415 internationally. The conference ID number is 13646795.

Headquartered in Greenwood, Colo., NSAT is a self-administered, self-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 551 self-storage facilities in 29 states comprising approximately 34 million net rentable square feet. It's owned by its affiliate operators, who are contributing their interests in their self-storage assets over the next few years as their current mortgage debt matures.

Public Storage

Public Storage will release its earnings report on Aug. 1. It will host a conference call on Aug. 2, at 2 p.m. ET, to discuss the financial results.

The dial-in numbers for the live conference call are 866.406.5408 for U.S. callers and 973.582.2770 for international callers. The conference ID is 5787104. The live webcast will be available through the investor-relations page of PublicStorage.com and accessible on demand through Aug. 15. For the conference-call replay, the domestic dial-in number is 800.585.8367, the international number is 404.537.3406, and the conference ID number is 5787104.

Based in Glendale, Calif., Public Storage has interests in 2,392 self-storage facilities in 38 states, with approximately 159 million net rentable square feet. Operating under the Shurgard brand name, the company also has 223 facilities in seven European countries, with approximately 12 million net rentable square feet.

Sources:

CubeSmart, CubeSmart Announces the Date of Its Second Quarter 2018 Earnings Release and Conference Call
Extra Space, Extra Space Storage Inc. Announces Date of Earnings Release and Conference Call to Discuss 2nd Quarter 2018 Results
Life Storage, Life Storage, Inc. Announces Date and Time of 2nd Quarter 2018 Earnings Release and Conference Call
NSAT, National Storage Affiliates Trust Announces 2018 Second Quarter Earnings Release and Conference Call
Public Storage, Public Storage to Release Second Quarter 2018 Earnings Results and Host Quarterly Conference Call

A Los Angeles self-storage facility owned by real estate investment trust Public Storage Inc. now displays a plaque identifying it as the site of a former movie studio—but not just any studio. Keystone Studios at 1712 Glendale Blvd., established in 1912, is credited with making pie-throwing a staple of slapstick comedy. It helped launch the career of Charlie Chaplin, among other entertainers.

The studio was best known for producing comedic scenes in which a pie in the face was common. A plaque on a corner of the last remaining original building reads, “This was the birthplace of the motion picture comedy,” according to a source.

Though pie-throwing had been a common practice to bait laughs on vaudeville stages, Keystone founder Mack Sennett launched cinema's first custard-pie-to-the-face in the 1913 film “A Noise From the Deep.” In the infamous scene, comedian Mabel Normand, playing a farmgirl, hits farmhand Roscoe "Fatty" Arbuckle in the face with a pie, according to Filmsite.org.

Pie-tossing became such a part of Keystone productions that it contracted a bakery across the street to formulate specialty pies that would work well on film depending on the shot and who was to be hit. While pies used in the studio’s films were mostly light-colored, consisting of flour and water, a chocolate or strawberry garnish was typically added for a scene in which a blonde character or someone wearing a light suit was the target. As pie fights in movies grew in popularity, the Sarah Brener bakery made nothing else but pies for films, a source reported.

Keystone’s success earned Sennett the moniker, “The King of Comedy.” The declaration is part of the commemorative plaque, which has its own colorful history. In 1954, the NBC television show “This Is Your Life” dedicated the plaque to Sennett, but it was installed in the wrong spot. It stood for several years on an obelisk behind a fence outside a printing building, which had once served as the city’s first permanent filmmaking facility, Selig-Polyscope, according to a source. Sennett’s studio was actually about two blocks south in an area once known as Edendale.

When the printing building was eventually demolished, film buffs rescued the plaque in 2007 and gave it to the Hollywood Heritage Museum, which restored it. It was correctly positioned next to one of the Keystone sound stages in February 2015.

The Public Storage location isn’t the only self-storage facility in Los Angeles linked to movie history. In 2016, Extra Space Storage Inc. acquired the former studio of award-winning Hollywood makeup artist and special-effects guru Rick Baker and converted it to self-storage.

Based in Glendale, Calif., Public Storage also has interests in 2,392 self-storage facilities in 38 states, with approximately 159 million net rentable square feet.

Sources:
Gastro Obscura, How Pie-Throwing Became a Comedy Standard
The Eastsider, Hollywood Finally Gets Echo Park Film History Right

MiniCo Insurance Agency LLC, a provider of insurance products for the self-storage industry, has published a list of best practices for facility operators who offer tenant insurance. The list addresses regulatory requirements, program selection, carrier rating, lease agreement, manager training and customer communication, according to a press release.

“There has been significant dialogue in the self-storage industry on the topic of financial products and models being marketed to protect a tenant’s stored property,” said Mike Schofield, CEO and president. “As one of the pioneers in offering the tenant-insurance model to the self-storage industry, we thought the creation of best practices for managing and offering tenant insurance was long overdue.”

Available on the company website, the list will be updated to reflect future enhancements and revisions, the release stated.

“MiniCo's customer-storage insurance products have served the industry and the tenant well for many years by responding to the tenant at the time of a loss,” Schofield says. “It has been a product that has historically protected the reputation of the industry by doing what the insurance product was designed to do: pay claims for covered losses.”

Founded in 1974 with self-storage tenant insurance as its sole insurance product, MiniCo offers multiple insurance models and products to address the specific needs and corporate growth strategies of self-storage businesses. It also operates MiniCo Insurance Agency of Canada Inc. Both are members of the Aran Insurance Services Group.

Source:
PR Web, MiniCo Insurance Agency Publishes Best Practices for Offering Self-Storage Tenant Insurance

 

The Nevada Self Storage Association (NVSSA) is now offering enhanced benefits to its chapter membership. New additions to member advantages include state-specific legal expertise, an electronic self-storage lease and a redesigned association website, according to a press release.

NVSSA has retained legal counsel licensed to practice in the state to provide members with advice, interpretation and guidance on conducting business within Nevada. The counsel worked with the board of directors to develop an updated and lien-law compliant self-storage lease, which is now available to members in electronic format. The association also updated its free forms packet, which members can access directly through its website.

Finally, the NVSSA website has been redesigned with members’ needs in mind. It includes new opportunities to give advertisers maximum exposure to NVSSA contacts and partners.

Founded in 2005, the NVSSA mission is to promote professionalism and provide an industry voice in Nevada. The association holds regular conferences and events on self-storage trends and legislative issues. It’s managed by executive director Katrina Bruce under the guidance of the all-volunteer board, which includes industry owners, managers and vendors.

Pender County, N.C., officials are considering zoning restrictions that would ban self-storage development from major roadways, particularly U.S. Route 17. The proposal is one of 50 action items included in the Pender 2.0 Comprehensive Land-Use Plan. The document was created after more than 1,350 residents responded to an open-ended community survey. The inclusion of the self-storage provision indicates enough residents complained about development activity, according to the source.

The recommended action specifically asks county commissioners to “discourage the construction of storage facilities along the road frontage. Such facilities should be located behind other development and generally not visible from primary roadways.”

Commissioners will be tasked with applying the language in the land-use plan to an upcoming Unified Development Code. That project is expected to create a series of zoning designations, including “personal service” businesses in general business districts. The county could use the recommended action to assign self-storage developments to areas away from U.S.-17.

Wilmington and other parts of the county have seen an uptick in self-storage development during the last two years, according to Archie McGirt, owner of Monkey Junction Self Storage, which operates one facility in Leland, N.C. and three in Wilmington. “Within the last two years, we’ve had more storage starting to really pop up, but that’s because of the growth of Wilmington,” he told the source.

While McGirt noted that facility aesthetics may have played a role in residents complaining about self-storage growth, limiting facility visibility could be challenged in court. “I would think that would be looking towards a lawsuit from the industry,” he said. “I don’t see how they could come in and put us to the side and say we’re different from everybody else.”

“We will create appropriate designations for [self-storage projects],” said Kyle Bruer, Pender County planning director. “By no means do we want to eliminate them.”

No timetable on how soon the county could formally adopt the zoning changes was reported.

Source:
Port City Daily, As Self-Storage Facilities Multiply, Pender County Considers Banning Them from Major Roadways

NorthPoint Development, which operates the Beyond Self Storage brand, received approval last month to move forward with a mixed-use project in Farmington Hills, Mich., that will include self-storage and a senior-living facility. The June 25 unanimous decision to support the planned unit development (PUD) comes after months of discussions, plan revisions and pushback from community members, according to the source.

The plan is to develop half of the 10-acre property at 32600 Northwestern Highway at its intersection with 14 Mile Road. A vacant commercial building would be replaced by a three-story self-storage facility comprising 691 climate-controlled units and a three-story, 92-unit Stonecrest Senior Living facility that would house about 100 residents, the source reported.

The planning commission granted a preliminary qualification for the PUD during its Dec. 14 meeting. NorthPoint will next need approval for its site plan and a formal development agreement with the city, according to Edward Gardiner, director of planning and community development.

The surrounding area includes single-family homes, an apartment complex, commercial and vacant properties, and an electrical substation. The development has received mixed responses from community members, Gardiner said. “We got a lot of letters of support, and some people had some concerns. With all development, you always have those issues,” he said, adding that those supporting the project called the lot a “blighted” area.

“The investment that the applicant is proposing will be good for the area and, hopefully, it will spur other development along the frontage of Northwestern,” Gardiner said.

Several residents voiced concerns about the project before and during the city council meeting. In a June 21 letter addressed to Mayor Ken Massey, Diane Hausner said the developments would cause an increase in traffic. She noted the intersection is already “extremely dangerous and highly congested.” She also said it’s “poorly designed and lacks adequate traffic management.” The mixed-use property would add more vehicles but not provide additional traffic control, “thereby exacerbating the dangerous conditions at that intersection,” she added.

Resident Marc Manson agreed, calling the site near one of the most congested intersections in the area. “This fact, combined with the increased traffic-collision rates at the nearby traffic circle, will contribute to the traffic backups and total standstills that inhibit emergency vehicles from quick arrival at this destination [the senior facility], and their quick departure to an emergency center,” said Manson, whose background includes risk assessment.

NorthPoint has worked with city officials and community members over the last six months to address issues such as access to the property, the buildings’ architecture, setbacks and landscaping, said Mark Pomerenke, vice president of development. Both properties would have a low impact on traffic and be aesthetically pleasing.

“We will actually clean this up and make this a clean and green site. So not only will we have a developed property in the back, but there will actually be a [development-ready] site in the front for commercial development that is sized appropriate to attract a good commercial use along Northwestern Highway,” he said, calling the lot the “front door of Farmington Hills.”

The storage facility would be on the west side of the property with access from Northwestern Highway, while the senior-living site would have access from 14 Mile Road. A gate between the two complexes would eliminate any traffic issues. “We’re really proud of the plan we put together. It will be a really high-quality project,” Pomerenke said.

Councilmember Richard Lerner urged Pomerenke to work with city officials to add more value to the developments. “Whether it is planting trees or landscaping or anything like that,” he said. “I wish you luck. I think this will be a great project. We’d like to see more public benefit come out of it than what I’ve seen today.”

Based in Riverside, Mo., and founded in 2012, NorthPoint is a development, management and leasing firm that’s principally focused on the industrial, multi-family, senior living and self-storage markets in the Central United States. The company has $2.1 billion in raised capital and operates 28 million square feet of industrial properties, thousands of multi-family apartment units, and numerous developed or managed senior-living communities.

Source:
C&G Newspapers, Senior Living, Storage Facility Move Forward in Farmington Hills

National Storage Affiliates Trust (NSAT), a Maryland real estate investment trust (REIT) specializing in self-storage, has formed a joint venture (JV) with an affiliate of Heitman Capital Management LLC to acquire 112 Simply Self Storage (SSS) facilities from a private real estate fund managed by Toronto-based Brookfield Asset Management Inc. (BAM). The $1.325 billion deal will be partially paid for through the public offering of 5.9 million common shares of NSAT stock. Heitman has committed $482.3 million toward the acquisition in exchange for 75 percent interest in the SSS assets. NSAT will own 25 percent, according to a press release.

The deal comprises 8.7 million rentable square feet across 17 states and Puerto Rico. NSAT intends to rebrand the locations as iStorage and will manage the properties through that platform, the release stated. NSAT and Heitman acquired the iStorage portfolio under a separate JV agreement in 2016 for $630 million.

In addition to the public offering, NSAT expects to grant underwriter BMO Capital Markets Corp. a 30-day option for the purchase of another 885,000 common shares. Heitman will supply the balance of the equity capital required to complete the transaction. The JV has also signed a non-binding term sheet with two lenders to secure $643 million in 10-year debt financing if necessary, according to the release.

Once the deal closes, NSAT plans to purchase full ownership of the six SSS facilities in Puerto Rico and one property in Ohio for $64 million. It’ll use proceeds from the public offering for that element of the deal. It’ll also use a portion to repay all outstanding debt under its revolving credit line. It expects to make $160.8 million in capital contributions from a combination of revolving credit and public-offering proceeds for its 25 percent stake.

NSAT ranked No. 5 in owned square footage on the 2017 Inside Self-Storage Top-Operators List behind Public Storage Inc., Extra Space Storage Inc., Life Storage Inc. and CubeSmart. SSS ranked No. 7, behind U-Haul International Inc. Based on figures reported in the list and on the NSAT website, the acquisition will bring the NSAT portfolio to 663 facilities and 42.7 million square feet.

SSS was acquired in 2016 by Brookfield Asset Management Inc. (BAM), a global asset manager with large investments in commercial real estate, for $830 million. BAM currently has $285 billion in assets under management, according to its website. It owns and operates assets with a focus on infrastructure, private equity, property and renewable energy. The company offers a range of public and private investment products and services, and is co-listed on the New York, Toronto and Euronext stock exchanges.

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 551 storage facilities in 29 states. Its portfolio comprises approximately 34 million net rentable square feet. It's owned by its affiliate operators, who are contributing their interests in their self-storage assets over the next few years as their current mortgage debt matures.

Founded in 1966, Heitman is a global real estate investment management firm with $39.9 billion in assets under management. It operates out of 11 offices globally.

Sources:
BusinessWire, National Storage Affiliates Trust Launches Public Offering of Common Shares to Fund Capital Contribution to Joint Venture Slated to Acquire a $1.325 Billion Portfolio from Simply Self Storage
GlobeSt.com, JV To Buy Brookfield Self-Storage Portfolio For $1.3B

Fact: Self-storage development is at an all-time high, and the demand for storage is still on the rise.

Fact: Investing wisely in a self-storage facility has proven to be lucrative for those who’ve chosen this vehicle for cash flow and wealth accumulation.

Fact: You can’t always do it alone.

Whether you need financial backing for a self-storage project, sage business advice or just a swift kick of motivation, you need key players in your corner. Contrary to what those on the “outside” may think, funding your next investment is the easy part. Choosing how to structure your deal and the best ways to launch or scale your portfolio, well, that’s a longer conversation.

As you can imagine, there are many ways to partner on a storage asset. Each type of partnership has its own benefits and challenges, and it’s important to select the best deal structure based on the individual project. You must start by asking the following:

• What are your goals? Do you need funds, framework or freedom?
• How much do you need?
• Are you willing to co-own your business and pay equity?
• With how many partners are you willing to work?

The answers will help you choose the partnership that’s best for you. Let’s take a deeper dive into the options available to self-storage investors.

Debt Partners

Having a debt partner is the most traditional form of partnering on a new self-storage facility. Think about it as you would a typical mortgage: Someone lends you money and you repay it with interest. When you bring on a debt partner, it’ll fund the investment and be paid according to the interest rate for a set period, typically established at the onset of the agreement. If you fail to repay the loan, the partner could foreclose on the property.

Debt partners don’t have any say in your business, and they won’t receive any profit from it outside of what’s owed as stipulated in the promissory note and mortgage. They’re simply bankrolling your investment. Once you’ve paid back the loan with interest, your partner’s job is done, and it has no retaining rights to the business.

The caveat: Debt partners only fund the facility. They don’t provide any management advice, fund additional startup costs, or share any knowledge or best practices to move the business forward.

Equity Partners

When taking on equity partners, you share in the profit and losses of the business. Equity is also defined as ownership interest, usually as a percentage or shares of a limited-liabilty company (LLC).

Whether there are two or 22 partners in a project, not all receive an equal share. Percentage of ownership is based on a number of factors. Typically, profit is distributed based on the amount of equity each partner contributes, but the percentages may vary based on their roles and responsibilities. For example, one partner may be the operation expert, while another is responsible for raising the capital to fund the deal. The responsibility of each party is spelled out in the partnership or operating agreement.

The caveat: Be certain the operating agreement outlines the equity shares and profit distributions for all partners. It should also include clear roles and responsibilities for all general and limited partners. Perform your due diligence on all parties.

Joint Ventures

When two or more parties come together for a specific purpose, it’s considered a joint venture (JV). It can be either:

• You and a partner use a common entity to establish a JV agreement.
• You and a partner establish a separate business entity such as an LLC or corporation.

In either case, both partners contribute funds to invest in the acquisition or development. Both also share in the management of the newly formed venture as well as any profit derived from it. Typically, once the goal is achieved, the JV may dissolve.

A JV is usually a quick way to establish a partnership, as all it takes is a written agreement and the establishment of a new entity. It can help you expand your current business or develop one from the ground up. Partners can draw on each other’s experiences while equally taking on the liabilities and collecting the rewards.

The caveat: Sometimes you’ll want to zig when your partner wants to zag. You’ll have to pull your thoughts together and make sure you’re on the same path to avoid conflict and move the business forward.

Syndications

A syndication can be formed by a group of people or corporations that come together for a specific purpose. Most syndications are formed as a Securities and Exchange Commission (SEC) Regulation D filing, which means it’s an investment treated as a security, as you’ll be offering shares of the LLC to the public. Most are open to accredited investors, but do allow unaccredited and unsophisticated investors to participate.

The pooling of resources, skillsets and knowledge could prove to be a win/win/win for the project. The greatest syndications include a mix of individuals who have various expertise in acquisition, development, operation, marketing and finance. Not all these talents are used at the general-partner level, but even limited partners (though mostly silent) can be tapped to assist in moving the needle. The largest benefit in forming a syndicate, however, is it allows for more and larger self-storage facilities to be developed or purchased.

The caveat: Syndications can be costly due to attorney’s fees to set up an SEC Regulation D filing or similar vehicle. In addition, management of the asset, which includes regular and timely communication with the equity partners, and managing distributions and ongoing reporting, can be a time burden.

Tenants in Common

Tenants in common (TIC), also referred to as “tenancy in common,” is an option whereby two or more people share ownership of the property. Each person’s interests are treated as a separate contract, while the property is owned wholly, in totality, by all parties. In other words, no single party can lay claim to a certain part of the property. One can, however, have unequal distributions of interests. You may own 75 percent of the property while a partner owns 25 percent.

As the primary partner, you do have the option of buying out the other parties should you no longer wish to be TIC. Additionally, each person may leave his share of the property to a beneficiary of his choosing, should an untimely death occur.

This is a popular structure, as it increases the borrowing capacities of the entity. The lender will look to each partner to guarantee the loan. Plus, you’ll divide the cost and maintenance of the facility.

The caveat: Make sure you’re getting into business with a partner you know, like and trust. If things go south, or he defaults on his portion of the mortgage, you’ll be responsible for the entire loan balance.

Getting Across the Finish

Leveraging the experience, capital and creditworthiness of potential partners is the key to growing your self-storage portfolio at a faster pace. There’s no right or wrong approach to partnering on your next venture. It’s a function of determining what’s needed to get the deal across the finish line, assessing the resources each partner brings, and taking into consideration the exit strategy for all parties.

As always, all partnership agreements should be drafted by an attorney, preferably one who’s adept at the particular type of structure you and your partners choose. I strongly suggest each partner also has an attorney review all documents to avoid any potential misunderstandings.

Scott Meyers, founder of Self Storage Profits Inc., has been involved in the self-storage industry as a developer, owner, syndicator and operator since 2005. He owns and operates 22 facilities in nine states. His community, www.thestoragemastermind.com, consists of equal parts owner/developers and private-equity investors who partner on select projects nationwide. To reach him, e-mail [email protected], or visit www.selfstorageinvesting.com.