Update 8/9/18 – Hines has acquired a 4-acred parcel in Tempe, Ariz., on which it intends to build a 65,275-square-foot self-storage facility. The property at 8575 S. Priest Drive is the company’s second land acquisition in the Phoenix market for storage development.

“This site, in South Tempe, is situated adjacent to IKEA, Life Time Fitness and Dick’s Sporting Goods, as well as the on/off ramp to Interstate 10—all great generators of traffic for the new facility,” said Norman Herd, president of brokerage firm Quantum Property Advisors, in a press release.

Herd represented Hines in the transaction and is also representing the company in its acquisition of other development sites in the Phoenix metropolitan area, according to the release.

Based in Phoenix, Quantum is a real estate services firm specializing in self-storage. Its services include brokerage, financial analytics and market related consulting. It operates a satellite office in Seattle.

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6/8/18 – Hines is considering self-storage developments in Glendale, Scottsdale and Surprise, Ariz., as well as Colorado and Texas. In addition, it has tapped self-storage real estate investment trust and third-party management firm CubeSmart to manage the Val Vista Self Storage property in Gilbert upon completion, according to the source.

Though the Phoenix metropolitan market is projected to experience a 9 percent increase in self-storage supply within the next 12 months, according to data analytics firm STR Inc., Hine remains bullish on the area for the addition of strategically planned developments.

“Hines strives to be the best real estate developer in all building types, and storage is an area which serves our existing clientele well, especially the significant single-family and for-rent multi-family customers we have throughout our markets,” Drew Steffen, managing director, told the source. “We also see a lot of lower-class storage, but not well-placed class-A storage. We strive to fill this void with a better Hines-quality product.”

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5/14/18 – Hines, an international real estate development, investment and management firm, intends to diversify its commercial portfolio with three self-storage facilities planned for the Phoenix metro market. The projects will comprise more than 250,000 square feet of storage space in Gilbert, Litchfield Park and Tempe, Ariz. The firm plans to develop three to five new storage projects annually and partner with established industry management companies to operate its portfolio, according to a press release.

The first development, expected to open early next year, will be Val Vista Self Storage at the northwest corner of Val Vista Drive and Queen Creek Road in Gilbert. Part of a 20-acre mixed-use commercial project, the facility will comprise 75,000 square feet in about 510 units.

The two other projects are expected to break ground this fall. The Litchfield Park facility will comprise 83,000 square feet, while the Tempe project is expected to be 96,000 square feet. Hines is also considering future self-storage sites in Glendale, Scottsdale and Surprise, Ariz.

“Hines is known for landmark office projects and large-scale, mixed-used developments which can take years to develop from start to finish. We are diversifying our portfolio and increasing our volume of projects with self-storage facilities, which are becoming a desired amenity and take a year or less to build,” said Chris Anderson, managing director and Arizona team leader. “In addition, the timing is right. High-end self-storage projects are becoming a new trend as people live in smaller houses and need more storage.”

The company has several other commercial projects either planned or underway in Arizona.

Founded in 1957, Hines is a privately owned global real estate investment firm with a presence in 24 countries. It has approximately $111 billion of assets under management and 108 development projects underway around the world. The firm’s current management portfolio includes 506 properties comprising more than 210 million square feet, the release stated.

Source:
SpareFoot Storage Beat, Global Real Estate Giant Hines Makes Its Self-Storage Debut
Hines, Hines Launches Strategic Expansion with Self-Storage Projects

Storage Sense, which operates 37 self-storage facilities in 16 states, has opened a new location in Fishers, Ind., its first in the state. The newly constructed facility at 10415 Allisonville Road comprises 72,000 square feet of rentable storage space in 633 temperature-controlled and drive-up units. Security components include keypad access and video cameras. Customer amenities include a retail center that sells moving and packing supplies, and online reservations and billpay.

A ribbon-cutting ceremony will be held at noon on Sept. 13, including members from the One Zone Chamber of Commerce. Open to the community, the event will include property tours and a raffle for free storage.

Like other properties in the Storage Sense portfolio, the site will be managed by Storage Asset Management Inc., a York, Pa., property-management and consulting company.

Storage Sense offers traditional, commercial and vehicle storage. Some sites also accept packages on behalf of customers.

Update 8/9/18 – Storage by George in Napa has completed its expansion. The facility now has an additional 340 storage units in a range of sizes. All are ground-level and some are climate-controlled.

“These specially designed units are ideal for furnishings, artwork, fabrics and inventory requiring a constant temperature range,” according to a company press release.

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9/14/17 – After nearly two years since he first applied for zoning approval, Cohen has begun his self-storage expansion project on Golden Gate Drive. Construction crews are currently grading the land and installing underground pipes, according to the source. Though the planning commission approved the design-review permit in January 2016, work on the project only recently commenced.

In its design review, the commission asked for additional landscaping to serve as a buffer between the facility and Golden Gate Drive as well as Highway 29. The expansion won’t include any additional wine storage to what’s already available at the existing facility, the source reported.

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9/23/15 – George Cohen, owner of Storage by George, is seeking zoning approval to expand his existing self-storage facility in Napa, Calif. Cohen hopes to build four buildings immediately south of his property at 1135 Golden Gate Drive.

The 37,000-square-foot expansion will include 341 storage units and cost an estimated $2.5 million, Cohen told the source. It will feature a range of unit sizes as well as climate-controlled and traditional units.

Since the parcel is currently zoned light industrial, the project only requires a design review, according to Michael Allen, Napa’s associate planner. Because the site is at the city’s southern entrance, Allen wants to “ensure it provides an aesthetically pleasing appearance.” Allen reviewed Cohen’s design plan and believes it will work with a few changes and additional landscaping, he said. “The existing facility is one of the more attractive storage facilitates you will find.”

The expansion is being driven by Napa’s growth and the need for more storage, Cohen told the source. “Unemployment is down, business is up,” he said, noting the development of new homes, hotels and shopping centers.

Storage by George also has a number of commercial tenants, such as carpenters, home stagers, plumbers and wine businesses. Self-storage offers these customers a de facto small-business incubator, Cohen said.

Cohen purchased the parcel in 1998 and proposed building a mixed-use project in the late 90s that would include self-storage and a 133-room Marriott Courtyard hotel. The city rejected the proposal, saying it preferred any new hotels to be built in the downtown area. After two applications, Cohen removed the hotel portion of the development and received approval. The facility was expanded again in 2003, adding 28,500 feet of climate-controlled storage to include a new service, Napa Valley Wine Storage.

If approved, construction will begin soon and is expected to take about five months, according to the source.

Sources:
Napa Valley Register: Storage By George Plans $2.5 Million Expansion
Napa Valley Register: Storage by George Expanding Facilities in South Napa
Napa Valley Register, Biz Buzz: Storage by George Announces 340 New Storage Units in Napa

Real estate firm Rosewood Property Co. (RPC) has acquired a newly opened self-storage facility in San Antonio, its third in the city. The property at 12211 N. I-35 comprises 88,875 rentable square feet of storage space in 784 climate-controlled units. It’ll be managed by self-storage real estate investment trust Extra Space Storage and branded under its name, according to a press release.

“This facility adds another important project to our expanding presence in the self-storage sector,” said CEO Bill Flaherty. “The facility, which was recently completed, is quite visible from I-35 and is performing well. We continue to focus on additional acquisitions in multiple markets that would be a strategic fit within our portfolio.”

RPC also operates facilities at 7363 N. Loop 1604 W. and 9738 Huebner Road in San Antonio. Both properties opened in late 2016.

Based in Dallas, RPC owns 43 self-storage facilities in 11 states, totaling more than 3.25 million square feet and containing 26,500 storage units. The company is developing multi-story projects in select markets and remains focused on actively building its portfolio, mainly through acquisition, the release stated.

RPC is a wholly owned subsidiary of The Rosewood Corp., a private investment concern owned by the Caroline Hunt Trust Estate. Its investments include office, multi-family, industrial, self-storage and land assets as well as equity securities of public and private real estate investment companies.

I’ve been in the self-storage industry for 15-plus years, with a core focus on marketing, technology and Web-app development. After working directly for two of the industry's largest operators and launching my own company, I recently decided to look at the status quo of existing self-storage website platforms. This assessment uncovered a startling and scary situation. There are many vulnerable sites in the industry that, at this very moment, are easy targets for hackers!

I decided to dig deeper into this troubling observation. I wanted to know how many websites were exposed and what platform they were using. For this article, I’m going to share my results from websites using the WordPress content-management system.

The Data That Keeps Me Up at Night

Before I reveal my findings, let me clarify a few things about the study:

• I worked with a sample of 50 self-storage websites that are operating on the WordPress platform. My selection method was random, with no specific variables to tease results in one direction or another.
• After my analysis, I notified each storage operator whose website was revealed to be in a vulnerable state. However, I didn’t disclose the list of websites to anyone.
• The methods I used to identify these sites and their vulnerabilities won’t be released to the public. That said, my techniques weren’t sophisticated, and even an amateur 14-year-old hacker could replicate what I did in less than 15 minutes.

Of the 50 websites I examined, 24 were vulnerable through various means, including but not limited to an outdated version of the WordPress platform or one of its plugins. These sites could easily be hacked. A malicious person could take control of the storage operator’s WordPress instance and potentially the server on which it’s running. These are well-documented weaknesses that can easily be researched on the Web, along with sample code to exploit them. Also, of the 50 websites, only 12 were using SSL (Secure Sockets Layer) and HTTPS ((Hyper Text Transfer Protocol Secure).

What worries me is thousands of self-storage websites are running on WordPress. If I sampled a much larger cohort, would the percentage of susceptible sites stay the same? Sadly, I think the answer is yes.

What Could a Hacker Really Do?

You’re probably wondering right now what’s the worst-case scenario if someone hacks your website. Ultimately, if the breach happens using your online systems (a website), you’re liable for any damages that occurred. Let’s review some of the nasty things a hacked website can be used for:

• Steal credit card and customer data. It’s common for a self-storage website to have application programming interface (API) integrations with the facility’s property-management software. This allows people to reserve or rent a unit or pay their bill online. If your WordPress instance is compromised, someone can easily harvest information entered by customers, including personal data and credit card information. (Think about the Target breach.) Additionally, depending on if the hacker can gain control of your server, he can make direct API calls to your software.
• Help syndicate illegal software, media and child pornography. Without your knowledge, a compromised WordPress instance can be used to distribute malware, illegal software, copyrighted media and even child pornography on the dark Web or through other sharing apparatuses. Hackers use your server to store and distribute illegal media.
• Send out spam. A common use for hacked WordPress websites is to send out large amounts of e-mail spam using your domain name. This can result in your domain getting blacklisted by major e-mail providers such as Gmail and Yahoo and make it so your customers don’t get your real messages. It’s extremely difficult to get off a blacklist and can take quite a while.
• Contribute to denial-of-service attacks. Your compromised WordPress instance and server, along with a group of others, can be used to commit denial-of-service attacks, bringing down other websites and large infrastructure.

These are just a few of the frightening things a hacker can do in a cyber-attack on your WordPress website.

How Do I Keep My WordPress Website Safe?

This is not a comprehensive list of security solutions for WordPress; think of it more as best practices. There’s far more you can do to secure your installation, its database and the server on which it runs.

• Keep WordPress updated. This is the single most important thing you can do to ensure your website’s security. While it can’t stop zero-day vulnerability hacks, it’ll ensure you’re safe from ones discovered in the past.
• Keep plugins updated. The is the second most important thing you can do. It’s very common for vulnerabilities to be discovered in WordPress plugins and used to breach sites running them.
• Prevent brute-force login attacks. This is when someone uses an automated program or script to try and guess a password. Unchecked, someone can just pound away at your WordPress installation. Consider plugins that protect against these attacks. Usually they limit how many failed logins are allowed in a specific period and, if triggered, will block access to the Internet Protocol and the account they attempted to access.
• Require question/answer verification. This is similar to, if not exactly like, CAPTCHA. Someone logging into an account for your WordPress instance must answer a question. It could be “type in these letters and numbers” or a math problem. This helps further prevent automated attacks to the login apparatus.
• Password-protect the admin and login page. This is where you use your Web server to password-protect the /wp-admin directory and wp-login.php file. Before you can even access these things, you’ll need a username and password. Generally, this is done in the .htaccess file for Apache Web server. This is a great way to fend off attacks that are directly at the core files of WordPress.
• Change the default “admin” username. Every fresh installation of WordPress creates a user called “admin” that has full access to everything. Ensure you change this username to something obscure and random, such as usr10937.
• Change the “display name” for users. When you create a new WordPress user, it’s important to ensure the “display name” is changed to something besides the username. Hackers can identify usernames this way via posts and use them to execute a brute-force attack.
• Change the default “wp_” database prefix. When you install WordPress, it asks you to create a database prefix; the default is _wp. Instead, make this something obscure and random, like zX312_. This will make it harder for hackers to do structured query language injections and other attacks that involve the WordPress database.
• Disable XML-RPC. This feature has been enabled by default since WordPress 3.5. It can be used to brute-force attack the platform and bypass any methods you’ve set up to prevent this on the login page. A hacker can literally try thousands of passwords in as little as 10 to 40 requests vs. doing 1,000 individual requests on your login page.
• Disable PHP file execution. There are some directories in your WordPress instance that shouldn’t be allowed to execute a PHP file, such as /uploads/. Attackers can find ways to force an upload and execute malicious code. Ensure you leverage your .htaccess file to block PHP file execution in the directories that don’t need it.
• Disable file editing. By default, you can edit the code of your theme files inside of the WordPress backend. If someone does compromise an account, this can make it easy for them to deploy malicious code. I always recommend people turn file editing off and require updates to be deployed server-side.
• Use strong passwords. If your passwords aren’t a minimum of 12 characters with letters, numbers and special characters, they can easily be guessed. Enforce strong password requirements to keep your accounts as secure as possible.
• Have a back-up solution. Let’s face it … Stuff happens. If your site is hacked, you’ll need to redeploy it as quickly as possible. I highly recommend you don’t try to fix it and instead do a fresh install. However, you need back-ups to do this! Ensure you deploy a proper back-up solution and retain copies going back at least 90 days, because some hacks are discovered months later.

The most effective way to prevent your WordPress website from being hacked is to ensure it’s always up to date and follow the above best practices. Failure to stay current can result in your website being defaced or, in a worst-case scenario, the theft of credit card data and personally identifiable information. The cost of keeping your platform updated and secure is far less than the liabilities you’d face in a data-theft scenario.

Stephen Sandecki has been in the self-storage industry for more than 15 years, focusing on digital marketing, technology and Web development. He’s the chief marketing officer at Store Space Self Storage. To reach him, call 702.753.4780; e-mail [email protected].

Eight students of Self Storage Investing (SSI), a company focused on buying and selling self-storage properties with a mission to help new investors successfully enter the business, have successfully purchased their first facilities. After completing the company’s “Mentoring Mastery” program, the participants acquired a total of 100,907 square feet across five states, according to a press release. The new owners are:

• Gary and Val Bullerman, who acquired Davenport Self Storage in Davenport, Iowa. The property comprises 18,292 square feet in 103 units.
• Armand D'Errico, who purchased Cartersville Self Storage Center in Cartersville, Ga. The 15,300-square-foot facility offers 110 units.
• Leila and Scott Durnford, who bought All Star Storage in Greer, S.C. The facility comprises 39,240 square feet in 385 units.
• Ernie Pecoraro, who acquired Aaron’s Self Storage in Clearwater, Fla. The 15,000-square-foot property offers 190 units.
• David and Krystal Peterson, who purchased Jackson Storage Solutions in Jackson, Tenn. The facility comprises 13,075 square feet in 120 units.

Company owner Scott Meyers 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. The SSI teaching model includes co-investments and mentorships.

Meyers was a speaker at the 2018 Inside Self-Storage World Expo, the storage industry’s largest conference and tradeshow, where he presented a seminar titled “How to Attract Private-Equity Partners to Grow Your Self-Storage Portfolio.” The session taught attendees how to “10-X” their industry acquisitions and development projects by tapping into the billions of dollars in private capital seeking investment into the asset class. The next ISS World Expo will take place April 1-4, 2019, in Las Vegas.

Source:
PR.com, First Time Self Storage Owners

Nuvo Development LLC has proposed a three-story self-storage project for Cranberry Township, Pa. The company intends to build a 90,430-square-foot facility on 2.23 acres at 20709 Route 19. It would share a driveway with “The Cranberry Eagle” newspaper. The property would have 8-foot-high perimeter fencing, according to the source.

Conditional-use requirements would include an architectural design that resembles an office building. Due to topographical challenges, officials would waive the typical sidewalk requirement in favor of an $18,500 contribution toward an “access and circulation project” for the municipality’s Community Park, the source reported.

The self-storage proposal comes at the same time officials are considering new requirements for its planned residential districts. Changes could include sidewalk greenspace with benches, street lighting, and streetscape enhancements for new developments. The Route 19 site is surrounded by commercial development.

Nuvo has six self-storage projects under construction in Florida and Pennsylvania, with five others in its pipeline, according to the company website. Projects include a mixed-use self-storage and office complex in Palm Beach Gardens, Fla., and a five-story facility in Jacksonville, Fla.

Nuvo Development, an affiliate of Winter Park, Fla.-based Nuvo Co., offers architecture, development and engineering services to the self-storage industry. The company is led by CEO Gary Cardamone, who founded the Stor-A-Way brand in 1999 with his brother Rich Cardamone. The brothers sold the properties in 2007.

Sources:
The Cranberry Eagle, 2 New Developments Planned in Cranberry
Nuvo Development, Website

Update 8/8/18 – Neighborhood Storage plans to open in its new Ocala facility at 2362 N.W. 45th Terrace next month. Comprising 43,000 square feet of storage space, it’ll include climate-controlled and drive-up units, a retail office, access-controlled entry, and video cameras. In addition, new customers will have free use of the company moving truck for a limited time.

The company is also expanding three existing locations and acquired a facility from another operator. It added 15,400 square feet to its property at 7256 S.W. 62nd Ave, off Florida State Road 200; 12,000 square feet at 7400 S.E. Maricamp Road; and 10,750 square feet at 9275 S.E. Hwy 441. It also purchased Evans U-Store-It at 12279 S.E. U.S. Hwy 441. The facility comprises 51,000 square feet, which includes a retail-oriented office, warehouse space and vehicle parking. It’ll be rebranded as Neighborhood Storage.

“We are excited to add this facility to Neighborhood Storage in the Southeast Marion County market,” Rudnianyn said. “The site is well-located and convenient to residents and businesses in and around the Belleview, Summerfield and The Villages areas.”

The operator’s recent activity adds 100,000 square feet of storage space to its portfolio, according to a press release.

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12/21/17 – Neighborhood Storage is nearing completion of its newest Ocala self-storage facility. While the property is expected to be ready in early 2018, the company is pursuing expansions at five other locations in the Ocala/Marion County area. The renovations will include covered boat/RV parking, climate control and drive-up units, and add about 100,000 rentable square feet to its portfolio, according to a press release.

“We are really looking forward to meeting the needs of the community with these expansions and our new facility,” Rudnianyn said.

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6/2/17 – Neighborhood Storage recently broke ground on a new facility in Ocala, Fla., along U.S. Route 27. Once complete, it will be one of the operator’s largest sites, covering more than 6 acres, according to a press release.

The facility will comprise 40,000 square feet of climate-controlled and drive-up units as well as 47 vehicle-storage parking spaces. Future phases will contain nearly 70,000 square feet of storage space. Property amenities will include 24-hour access and video cameras.

“We are excited to announce the construction of our first facility in the rapidly growing Highway 27 corridor,” Rudnianyn said. “This location is reaching a growing market with new homes and businesses popping up every day.”

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5/22/17 – Neighborhood Storage Center has again expanded its Maricamp Road facility in Ocala, Fla., by adding a building. The new structure comprises 12,000 square feet of storage space in 80 climate-controlled and drive-up units.

“We are excited to grow with the community in Silver Springs Shores. Over the past several years, this community has seen the addition of numerous amenities, retailers and restaurants that have made it a more dynamic and cohesive community,” Rudnianyn said. “This facility expansion adds to Neighborhood Storage’s existing footprint of three facilities that specifically cater to the needs of the Silver Spring Shores market.”

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6/23/2015 – Neighborhood Storage, a self-storage operator with 19 locations in North-Central Florida, has enlarged its facility in Ocala, Fla., in the Silver Springs Shores community, a small residential area of Marion County. The expansion at 7400 S.E. Maricamp Road began in March and was completed earlier this month by Owen Construction Inc., an Ocala-based residential and commercial builder. It included the addition of 12,000 square feet of storage space in a range of unit sizes, from 25 to 250 square feet, according to a company press release.

The project was spurred by the lack of climate-controlled storage in the market, according to Todd Rudnianyn, president of Neighborhood Storage. “We needed to meet demand for particular non-temperature-controlled units that the original construction of the site did not have,” he said. “We are excited to be the first self-storage company to bring temperature-controlled units to the heart of the Silver Springs Shores community.”

The exterior lighting system was also upgraded with energy-efficient LED fixtures. Plans are now underway to improve the self-service customer center, which features 24/7 rental and payment options. The property also offers exterior units with drive-up access. Security features include computer-controlled gate access, individual access codes and video cameras.

In December, the storage operator began expansion of another facility it owns, also in Ocala. It was the second renovation for the property at 310 N.E. 25th Ave. The two new buildings include interior, temperature-controlled units as well as exterior units with drive-up access.

Neighborhood Storage operates facilities in Belleview, Dunnellon, Marion and Ocala County, Fla.

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 released financial statements for the quarter that ended June 30. In general, the companies showed gains in key areas, particularly funds from operations (FFO) and net operating income (NOI), while also achieving increases in occupancy.

“As we approach the end of the traditional busy season, operating performance continues to meet our expectations and business fundamentals remain solid,” said Christopher P. Marr, president and CEO of CubeSmart. “Our third-party management platform continues to be an attractive solution for owners, as we added 41 stores during the second quarter. We remain focused on generating attractive risk-adjusted returns for shareholders by maximizing cash flows and maintaining a disciplined approach to capital allocation.”

Joseph Margolis, CEO of Extra Space, expressed similar sentiments. "2018 continues to go as planned with solid rental-rate growth in the mid-single digits as well as strong same-store occupancy of 94.2 percent,” he said. “We continue to execute our strategy of consistent property operations, steady external growth and efficient capital allocation. We are pleased with our platform's performance in the first two quarters, and we believe we are positioned for a strong second half of 2018."

CubeSmart

CubeSmart reported FFO per share of $0.41 during the quarter, a 5.1 percent year-over-year increase. Same-store NOI at its 458 facilities grew 3.3 percent year over year. The company attributed this to a 3.2 percent growth in revenue and a 3.2 percent increase in operating expenses. Same-store locations contributed 95.4 percent of the REIT’s property NOI during the quarter.

Same-store physical occupancy averaged 93.6 percent during the quarter (94.4 percent as of June 30), which was consistent year over year. The company’s total-owned portfolio, representing 486 facilities and comprising 33.9 million square feet of rentable space, had a physical occupancy of 92.5 percent at the end of the second quarter.

CubeSmart acquired a storage property in Texas during the quarter for $19 million. The REIT’s joint venture, HVP IV, purchased 4 properties for $42.9 million. Two are in Florida, with one each in Georgia and Texas. CubeSmart contributed $3.9 million toward the acquisition.

On May 30, the company declared a dividend of 30 cents per common share, which was equal to the previous quarter. The dividend was paid on July 16 to common shareholders of record on July 2.

CubeSmart owns or manages 1,021 self-storage facilities across the United States. Its operating portfolio comprises 69.2 million square feet.

Extra Space Storage Inc.

Same-store revenue increased 4.1 percent and NOI rose 3.8 percent compared to the same period in 2017. FFO was $1.15 per diluted share, resulting in 5.5 percent growth compared to the second quarter the previous year.

Same-store occupancy was 94.2 percent as of June 30, which was essentially equal year over year.

During the quarter, the company acquired three operating facilities and purchased a joint-venture partner’s interest in 14 other facilities for $238.6 million. It also acquired five operating facilities, made seven Certificate-of-Occupancy purchases and completed a development project with joint-venture partners for $201.2 million, of which the REIT’s contribution was $35.3 million.

The company paid a quarterly dividend of 86 cents per common share, which was a 10.3 percent increase from the previous quarter. It was paid on June 29 to common shareholders of record on June 15.

Headquartered in Salt Lake City, Extra Space owns or operates 1,568 self-storage properties in 39 states; Washington, D.C.; and Puerto Rico. The company’s properties comprise approximately 1.09 million units and 119 million square feet of rentable space.

Life Storage Inc.

Total revenue increased 3.9 percent over the previous year, while operating costs grew 2.7 percent, resulting in an NOI increase of 4.5 percent. Same-store NOI increased 5.2 percent year over year, which was attributed primarily to a 1.5 percent bump in operating expenses. FFO for the quarter was $1.39 per fully diluted common share, compared to $1.24 for the same period in 2017. Adjusted FFO was $1.39, a 4.5 percent increase.

Net income attributable to common shareholders for the second quarter was $39.3 million, or $0.84 per fully diluted share. For the same period in 2017, net income attributable to common shareholders was $19.4 million, or $0.42 per fully diluted common share.

Revenue for the company’s 535 wholly owned stabilized facilities increased 4 percent year over year, helped by an increase in average occupancy of 20 basis points and 3.4 percent growth in rental rates. Average overall occupancy for the quarter was 92.1 percent, with units renting for an average of $13.81 per square foot.

During the quarter, the REIT didn’t acquire any properties but added seven facilities to its third-party management platform. The company previously indicated it expects to contribute up to $50 million toward joint-venture acquisitions this year.

Subsequent to the end of the quarter, the company approved a quarterly dividend of $1 per common share, which is equal to the previous quarter.

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 brands. Its portfolio of owned and managed facilities comprises more than 50 million square feet.

National Storage Affiliates Trust (NSAT)

Core FFO per share was 0.34 during the second quarter, a 9.7 percent year-over-year increase. Its net income was $13 million during the quarter, a 16.3 percent decrease compared to the $15.6 million it reported for the same period in 2017. The decline was primarily attributed to a reduction in gains on dispositions. Same-store NOI was $42.9 million, up 4.2 percent.

Same-store revenue was $62.4 million during the quarter, a 3.6 percent increase from a year ago. This was driven by a 3.1 percent increase in average annualized rental revenue per occupied square foot. Same-store average occupancy was 89.8 percent, a slight increase from the same period last year.

The company acquired 12 wholly owned self-storage facilities and invested in the expansion of an existing property for $62.9 million. The facilities are in six states and comprise more than 500,000 rentable square feet in about 4,500 units.

On May 23, the company declared a quarterly dividend of $0.29 per common share, a 3.6 percent increase from the previous quarter. It was paid on June 29 to holders of record on June 15.

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 552 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.

Public Storage Inc.

Revenue for same-store facilities increased 1.5 percent, or $8.5 million, in the quarter, as compared to the same period in 2017, primarily because of higher realized annual rent per occupied square foot. Operations costs for same-store facilities increased 2.6 percent, or $3.8 million, during the period compared to the previous year.

FFO was $2.65 per diluted common share, compared to $2.31 for the same period the previous year, marking a 14.7 percent increase. NOI increased $12.3 million compared to the same period in 2017, including $4.7 million for same-store facilities.

The company acquired three self-storage facilities in Indiana, Kentucky and South Carolina during the quarter for $16 million. Together they comprise 200,000 net rentable square feet. It also completed seven new development and various expansion projects that added 1.2 million net rentable square feet to its portfolio for $135 million.

The company reported a regular common quarterly dividend of $2 per common share, which was equal to the previous quarter. It also declared dividends with respect to various series of preferred shares. All the dividends are payable on Sept. 27 to shareholders of record as of Sept. 12.

Based in Glendale, Calif., Public Storage has interests in 2,402 self-storage facilities in 38 states, with approximately 160 million net rentable square feet. Operating under the Shurgard brand name, the company also has 228 facilities in seven European countries, with approximately 12 million net rentable square feet.

Sources:
CubeSmart, CubeSmart Reports Second Quarter 2018 Results
Extra Space, Extra Space Storage Inc. Reports 2018 Second Quarter Results
Life Storage, Life Storage Inc. Reports Second Quarter 2018 Results; Raises 2018 Full Year Guidance
National Storage Affiliates Trust, National Storage Affiliates Trust Reports Second Quarter 2018 Results
Public Storage, Public Storage Reports Results for the Three and Six Months Ended June 30, 2018