Shares for U.K. self-storage operator Lok’n Store were sold Thursday. The nearly 4.3 million in shares, worth 3.6 million pounds, sold at a price of 85 pence a share, according to data from Reuters.

Information about who the shares belonged to wasn’t available, but the number of shares sold is the same number as held by Audley Capital Partners, the company’s second biggest shareholder after Chief Executive Andrew Jacobs. Audley Capital Partners also owns a 14.8 percent stake in Sylvania Resources.

Source: Interactive Investor,Sixteen pct Lok'n Store Stake Sold for £3.6 Million

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Self-storage facilities in Freeport, Grand Bahama, are participating in a new program that allows individuals in specified trades to use self-storage as approved premises to apply for a business license.

Launched by The Grand Bahama Port Authority Ltd. (GBPA), the business-development initiative will help minimize the cost of starting a new business on the island. Facilities participating include Albacore Storage and Broncestone Self Storeaway.

Opened in 2000, Broncestone has 36 units and is managed by Pauline Hepburn. John Gallagher is the president of the 46-unit Albacore facility, which opened in January of this year. Both managers expect increased rentals as a result of the program and are considering expansion.

“This initiative provides a good opportunity for reduction in overhead expenses for certain business categories,” said Derek Newbold, GBPA’s business development manager. “We are cognizant of the current economic climate and will continue to seek out initiatives that can provide some level of relief to small businesses.”

Source:  Bahama Islands Info,  GBPA Makes Business Ownership Easier

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Kenneth Myszka, chief operating officer of Sovran Self Storage, sold 4,000 shares of the company on Aug. 9 at an average price of $38.47 per share.

As of Monday, Sovran had a market cap of $1.06 billion. Its shares were traded at around $38.40 with a price/sales ratio of 5.5. The dividend yield of Sovran stocks was 4.6 percent.

Sovran is a real estate investment trust in the business of acquiring and managing self-storage facilities. The company operates 371 facilities in 24 states under the name Uncle Bob’s Self Storage.

Source:  Guru Focus,  Sovran Self Storage Inc. (sss) COO Kenneth F Myszka Sells 4,000 Shares

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Timing is critical to the success of a rent increase, especially in todays market. Too much and too often could have your tenants racing to your competitors. On the other hand, youre in business to make money. The key is finding the perfect balance. Before initiating your next round of increases, consider these important factors.

When considering a rate increase, your first step should be to review your street rates in relation to the customer rates you plan to raise. Make sure your increase customers arent paying more than the street rate. It will be difficult for you to justify to a long-term customer why hes paying more than someone who walks in off the street and rents the same unit. Also, increase your street rates before sending any rent-increase letters to avoid an unpleasant situation.

Timing your site improvements with your rent increases is a wise move. It will help justify the increase if a customer sees upgrades made to your facility. While this will not be enough for every tenant, the majority will enjoy freshly painted hallways, resealed aisle ways, pressure-washed buildings, updated landscaping, etc. Remember the impact of curb appeal.

Frequency and Amount

There are several other aspects to consider when conducting rent increases. Depending on your software provider, you may have a program that will assist you in the review process. Some applications include a rate-management tool that will help you determine which customers require an increase based on criteria you choose.

While these types of guides are extremely helpful, they can also be overwhelming if youre not accustomed to using them. Furthermore, your district manager or owner may limit your access to those capabilities, perhaps because increases are handled at the corporate level. Nonetheless, finding a comfortable method is the most important factor. Some managers simply print an occupied-units report, sit down with a pencil, and begin the review process.

First consider the incident of a price increase. If you elect to implement a rate hike for 10 customers, each at $10, potential revenue gain would be $100 a month. If one customer who pays $90 a month moves out, you still net $10. If your increase is only $3, potential revenue gain is $30 a month. If that same customer moves out, youre minus $60. The point is, if youre going to do an increase, consider the benefit of going larger.

Another thing to always look for in reviewing customers rates is how long each customer has been at the same rate. The industry standard is nine months; however, stick to 365 days and over. The frequency and amount of increase is up to you. You know your market and your customer base best. If every month works, give increases every month. On the other hand, if once a quarter and 20 customers per quarter makes you feel safe, proceed with that strategy. The key is to increase your revenue at a rate your customers will withstand.

Once every customer who has rented with you for 270 to 365 days has received an increase, your next target group should be those customers with large variance rates. Approach this the same way: Keep increases within your comfort level. If at any time you see significant fallout from your increases, stop, assess the situation, and proceed with what is in your stores best interest.

Telling Customers

Some software packages contain a default rent-increase letter. However, it may not be the right message to send your customer. Instead, use it as a foundation on which to build your own personalized message. The letter should unite you and the customer in the same boat. For example, let customers you know youre facing increases in fees, taxes or other licensing. Tell them youve tried to absorb as many of the costs as possible, but you now have no choice but to pass along some of the expense.

Additionally, edit your letter to only show the amount of the rent increase and not the monthly rental rate. Sometimes customers forget their gate codes and unit numbers, and they also forget how much theyre paying every month. Dont remind them. Just tell them the dollar amount of the increase.

Another common concern is how to approach customers who have multiple units. With these tenants, be sure to raise the rate on all of their units at the same time. A customer who receives a rent increase on just one unit will know the others are soon to follow. Also consider a less drastic increase. Rather than add $10 to each unit and risk losing all of them, give the customer an increase of $15 across the board, or $5 on each unit.

Raising rents is often a managers least favorite task, but a necessity to stay competitive and profitable. When considering increases, be fair, be consistent and stay within your comfort level. Find the right balance for your operation and customers to guarantee a smoother process and increased success.

To talk about rent increases with other facility managers, visit www.selfstoragetalk.com, the industrys largest online forum and community. 

March Chase is vice president of Southeast Management Co. and the director of operations for Plantation Storage in South Carolina. His background includes experience as a self-storage manager and district manager for a large management company. To reach him, call 804.435.1605; e-mail [email protected]; visit www.southeastmanagementcompany.com .

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Good ole rent increases [Self-Storage Talk]

On July 22, Belgravia Capital and the California Self Storage Association (CSSA) gathered self-storage owner-operators, real estate investment trust (REIT) executives and REIT analysts in Newport Beach, Calif., for the sixth annual Self Storage Owner’s Summit. Produced by the CSSA, the event highlights issues relevant to facility owners. This year’s focus was adapting to industry changes brought about by the economic downturn.
 
Jim Davies, a summit founder and managing director for Belgravia, kicked off the event with a message about the need to “maintain the ferocity of our competitive spirit” during these changing times.
 
Ron Havner, CEO and vice chairman of Public Storage Inc., outlined his view of the future of the industry and the economy during an hour-long keynote Q&A session. Havner foresees subdued growth over the next three to five years and greater industry consolidation. He said population growth combined with flat to moderate rental-income growth will keep storage returns above inflation levels over the next several years.
 
During the Real Estate Panel, industry experts such as U-Store-It CEO Dean Jernigan, A-1 Self Storage CEO Brian Caster, BACO Realty President Ben Eisler, and REIT analyst Michael Knott expressed a common belief that the self-storage industry will undergo a period of consolidation. Havner and all of the speakers agreed the high costs of advertising in the new-age of media combined with the stress many smaller owners are feeling in this economic crisis are vanguards for consolidation.
 
Jernigan said consumer’s changing habits underscore the growing need for self-storage facilities to brand their image and create an online presence.
 
Self-storage valuation expert Charles Ray Wilson pointed out that in the top 50 U.S. metro areas, the largest self storage companies already control a significant 20 percent market share. Consolidation is not a prediction for the future, he said, but already happening.
 
During a capital-markets update session, Belgravia principals Nik Chillar and Jim Davies discussed the improving lending market, with rates in the mid 5 percent range to the mid 6 percent range being offered by insurance companies, banks and the "new CMBS (commercial mortgage-backed securities) shops."

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Virgo Publishing LLC, the parent company of Inside Self-Storage, Inside Self-Storage World Expo, Self-Storage Talk and the Self-Storage Training Institute, has appointed John Siefert as its new CEO and a member of the board of directors. He replaces Jenny Bolton, who co-founded Virgo in 1986. Bolton will stay on as a member of the board and a senior advisor to the company.
 
Siefert joins Virgo following an impressive career with United Business Media (UBM), where he most recently led the InformationWeek and Tech Web teams as senior vice president.  During his 15-year tenure at UBM, Siefert was instrumental in guiding the business through a major transformation to digital media.  He led InformationWeek and nine other leading editorial brands and was responsible for the strategic direction, growth strategy and evolution of a multi-faceted online, print, event and services network covering the corporate technology market. He also served in other roles including group publisher of network computing and national director.
 
“I am thrilled to welcome John as CEO of Virgo,” said Bolton. “I am confident that John will provide the vision and leadership needed to accelerate our mission to continue to innovate in our markets and for our clients, and further establish our products and services as the leading information franchises for the communities we serve.”
 
Virgo (www.vpico.com) is an integrated business-to-business information-services company delivering tradeshows and conferences, print and e-media, and online education to key growth markets. With 17 brands and an expanding online platform, Virgo leverages its category-leading events, publications and other media to provide solutions for the self-storage, healthcare, natural products and telecommunications industries as well as other niche businesses. Virgo is a portfolio company of Arlington Capital Partners, a Washington, D.C.-based private equity firm.  
 
“The team at Virgo has built an impressive business, with leading offerings in its markets, and I look forward to building on the company’s culture of providing exceptional service and high return on investment for our clients,” said Siefert, “Virgo has an excellent team of committed professionals, and I am looking forward to leading the company into the next phase of growth.”

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Hide-Away Storage’s Beneva Road facility in Sarasota, Fla., was honored by the city’s chamber of commerce with the “Insignia Award” for excellence in customer relations at a monthly chamber meeting. The award was presented Aug. 2 by an officer of Insignia Bank to the facility’s managers, David and Laurie Connolly.

The Insignia Award is presented to a company with no unresolved customer complaints, or any customer complaints in the past year, according to a Sarasota Chamber of Commerce spokesman.

The Beneva Hide-Away Storage is one of 10 self-storage facilities and two portable-storage facilities in the Hide-Away Storage network of facilities in Southwest Florida.

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Guardian Self Storage is supporting the Community Foundation’s annual Garden Party, Sept.19 in Esopus, N.Y.

The Community Foundation is a public non-profit charitable organization supporting philanthropy in Dutchess, Ulster and Putnam, N.Y., counties. It represents thousands of donors through more than 430 separate funds and channels support to the community through grants and scholarships.

The annual Garden Party recognizes community members for their service and highlights the Foundation’s work. It will be hosted at the Colonel Oliver Hazard Payne Mansion, home of Marist College's Raymond A. Rich Institute for Leadership Development.

Guardian Self-Storage opened its doors in Fishkill, N.Y., 25 years ago. Since that time the business has grown to 12 locations throughout Dutchess, Orange and Ulster counties. The family-owned company looks for ways to help others in the community and to build community awareness.

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Wilmington Capital Management Inc., which owns self-storage facilities in Canada, announced net income for the three months ending June 30, 2010, of $79,000 compared to a net loss of $130,000 for the same period in 2009. Net income per class-A and class-B share for the three months was $0.01, compared to a net loss of $0.02 per share for the same period in 2009.

Wilmington recently completed the acquisition of a 45 percent indirect interest in a portfolio of 12 self-storage facilities in Southwestern Ontario through the acquisition of units in a newly formed private real estate investment trust. The cost of the self-storage portfolio was $20.7 million.

The company also holds an 8 percent fully diluted interest in Parkbridge Lifestyle Communities Inc., an owner and operator of manufactured-home and recreational communities, and leases land to commercial property owners in San Francisco.

Source: The Wall Street Journal,Wilmington Announces 2010 Second Quarter Results

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