Life Storage, Inc. Reports Third Quarter 2021 Results

Rhea-AI Summary

Life Storage, Inc. (NYSE:LSI) reported strong Q3 2021 results with a net income of $70.3 million, translating to $0.89 per diluted share, a rise from $37.1 million in Q3 2020. Adjusted FFO increased by 35.6% to $1.37 per share. Same-store revenue grew by 17.4%, and same-store NOI rose by 24.3%. The company acquired 29 storage facilities for $336 million and aims for $1.7 billion in total acquisitions this year. The dividend was increased by 16% to $0.86 per share. 2021 guidance for same-store revenue has been revised upwards to 12.5%-13.5%.

Positive

• Net income up to $70.3 million from $37.1 million YoY.
• Adjusted FFO increased by 35.6% to $1.37 per share.
• Same-store revenue grew by 17.4% YoY.
• Acquired 29 stores for $336 million, with $1.7 billion in acquisitions planned for 2021.
• Dividend increased by 16% to $0.86 per share.

Negative

• Same-store operating expenses increased by 3.5%, driven by higher real estate taxes and maintenance costs.

BUFFALO, N.Y.--(BUSINESS WIRE)-- Life Storage, Inc. (NYSE:LSI), a leading national owner and operator of self-storage properties, reported operating results for the quarter ended September 30, 2021. Certain share and per share information has been retrospectively adjusted to reflect the January 2021 three-for-two stock split made in the form of a 50% stock dividend.

Highlights for the Third Quarter Included:

• Generated net income attributable to common shareholders of $70.3 million, or $0.89 per fully diluted common share.
• Achieved adjusted funds from operations (“FFO”)⁽¹⁾ per fully diluted common share of $1.37, a 35.6% increase over the same period in 2020.
• Increased same store revenue by 17.4% and same store net operating income (“NOI”)⁽²⁾ by 24.3%, year-over-year.
• Acquired 29 stores for $336.0 million, including 10 stores from the Company’s third-party management platform.
• Added 30 stores (gross) to the Company’s third-party management platform.

Joe Saffire, the Company’s Chief Executive Officer, stated, “Operating fundamentals remain strong as we continue to enjoy record seasonal occupancy and robust pricing power. We continue to aggressively expand our footprint, having achieved a significant milestone during the quarter when we crossed the 1,000-store threshold. We have more than $1.7 billion of wholly owned acquisitions that have closed this year or are currently under contract. The hard work of our acquisitions and third-party management teams over the past several years executing on our relationship-based strategy to be well positioned when opportunities become available is clearly paying off. The ability of our Operations team to seamlessly onboard such high volumes of stores while also managing elevated occupancy is equally inspiring.”

FINANCIAL RESULTS:

In the third quarter of 2021, the Company generated net income attributable to common shareholders of $70.3 million or $0.89 per fully diluted common share, compared to net income attributable to common shareholders of $37.1 million, or $0.52 per fully diluted common share, in the third quarter of 2020.

Funds from operations for the quarter were $1.37 per fully diluted common share compared to $0.99 for the same period last year. Adjusted FFO per fully diluted common share for the quarter was $1.37 compared to $1.01 for the quarter ended September 30, 2020, after adjusting for $1.5 million of uninsured damages and customer reinsurance claims incurred in the third quarter of 2020.

OPERATIONS:

Revenues for the 531 stabilized stores wholly owned by the Company since December 31, 2019 increased 17.4% in the third quarter of 2021 compared to the same quarter of 2020. The increase largely resulted from the net impact of a 220 basis point increase in average occupancy and the net impact of a 14.3% increase in realized rental rates.

Same store operating expenses increased 3.5% for the third quarter of 2021 compared to the prior year period, primarily due to increased real estate taxes and repair and maintenance costs. The increases were partially offset by decreases in marketing expenses. Same store NOI increased 24.3% in the third quarter of 2021 as compared to the same quarter last year.

During the third quarter of 2021, the Company achieved double digit same store revenue growth in each of its 31 major markets. Overall, the markets with the strongest positive revenue impact were: Las Vegas, NV; Buffalo-Upstate, NY; Austin, TX and various Florida markets.

PORTFOLIO TRANSACTIONS:

Wholly Owned Portfolio

During the quarter, the Company acquired 29 stores in Alabama (7), Georgia (7), Florida (3), New Hampshire (2), Oklahoma (2), South Carolina (2), Texas (2), Arizona (1), Colorado (1), Kentucky (1) and Ohio (1) for a total purchase price of $336.0 million.

At September 30, 2021, the Company was under contract to acquire 33 self-storage facilities in Florida (14), Georgia (8), Texas (4), California (3), Illinois (3) and Virginia (1) for an aggregate purchase price of $548.9 million. Subsequent to quarter end, the Company entered into contracts to acquire 20 self-storage facilities in Connecticut (6), Florida (3), North Carolina (3), Colorado (2), South Carolina (2), Georgia (1), Illinois (1), Maine (1) and Tennessee (1) for an aggregate purchase price of $322.4 million. The Company acquired 13 of these facilities subsequent to quarter end for $234.5 million. The purchases of the remaining facilities are subject to customary conditions to closing, and there is no assurance that any of these facilities will be acquired.

As of the date of this press release, the Company has acquired 75 stores for $1.1 billion since January 1, 2021.

Joint Venture Portfolio

During the quarter, the Company contributed an additional $27.3 million to an existing joint venture with a self-storage facility in Brooklyn, NY.

THIRD-PARTY MANAGEMENT:

The Company continues to aggressively and profitably grow its third-party management platform. During the quarter, the Company added 30 stores (gross). As of quarter end, the Company managed 357 facilities in total, including those in which it owns a minority interest.

FINANCIAL POSITION:

At September 30, 2021, the Company had approximately $136.2 million of cash on hand, and approximately $500 million available on its line of credit.

To support its acquisition activity, the Company issued equity securities during the third quarter and priced a bond offering. On September 16, 2021, the Company completed an underwritten public offering of 2,875,000 shares of common stock at $122.30 per share, raising $348.8 million after expenses. Additionally, the Company issued 1,097,516 shares of common stock under its continuous equity offering program at a weighted average issue price of $119.29 per share, generating net proceeds after expenses of $129.5 million. The Company also issued $89.8 million in preferred Operating Partnership Units and $1.5 million of common Operating Partnership Units as part of the consideration for a portfolio acquisition during the quarter. Finally, the Company completed an offering of $600 million aggregate principal amount of 2.4% Senior Unsecured Notes due 2031 that priced on September 28, 2021 and closed on October 7, 2021.

Below are key financial ratios at September 30, 2021:

● Debt to Enterprise Value (at $114.74/share)	18.8%
● Debt to Book Cost of Storage Facilities	35.4%
● Debt to Recurring Annualized EBITDA	3.9x
● Debt Service Coverage	6.3x

COMMON STOCK DIVIDEND:

Subsequent to quarter end, the Company’s Board of Directors approved a 16% increase to its quarterly dividend to $0.86 per share, or $3.44 annualized, on a post-split basis. The dividend was paid on October 26, 2021 to shareholders of record on October 13, 2021.

YEAR 2021 EARNINGS GUIDANCE:

The following assumptions covering operations have been utilized in formulating guidance for 2021:

Year 2021 Earnings Guidance		Current Guidance Range			Prior Guidance Range (August 3, 2021)
Same Store Revenue		12.50%	-	13.50%		10.50%	-	11.50%
Same Store Operating Costs (excluding property taxes)		1.75%	-	2.75%		2.25%	-	3.25%
Same Store Property Taxes		6.75%	-	7.75%		6.75%	-	7.75%
Total Same Store Operating Expenses		3.75%	-	4.75%		4.00%	-	5.00%
Same Store Net Operating Income		17.0%	-	18.0%		13.5%	-	14.5%
General & Administrative		$61.0M	-	$62.0M		$59.5M	-	60.5M
Expansions & Enhancements		$40M	-	$50M		$40M	-	$50M
Capital Expenditures		$29M	-	$33M		$21M	-	$26M
Wholly Owned Acquisitions		$1,700M	-	$1,900M		$800M	-	$1,000M
Joint Venture Investments		$57M	-	$110M		$28M	-	$30M
Adjusted Funds from Operations per Share		$4.92	-	$4.96		$4.69	-	$4.79

Reconciliation of Guidance		4Q 2021 Range or Value			FY 2021 Range or Value
Earnings per share attributable to common shareholders – diluted		$0.74 - $0.78			$3.01 - $3.05
Plus: real estate depreciation and amortization		0.53 - 0.53			1.91 - 1.91
Adjusted FFO per share		$1.27 - $1.31			$4.92 - $4.96

The Company’s 2021 same store pool consists of the 531 stabilized stores wholly owned since December 31, 2019. Thirty-six of the stores purchased through September 30, 2021 at certificate of occupancy or that were in the early stages of lease-up are not included, regardless of their current occupancies. The Company believes that occupancy levels achieved during the lease-up period, using discounted rates, are not truly indicative of a new store’s performance, and therefore do not result in a meaningful year-over-year comparison in future years. The Company will include such stores in its same store pool in the second year after the stores achieve 80% sustained occupancy using market rates and incentives.

FORWARD LOOKING STATEMENTS:

When used in this news release, the words “intends,” “believes,” “expects,” “anticipates,” and similar expressions are intended to identify “forward-looking statements” within the meaning of that term in Section 27A of the Securities Act of 1933 and in Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause our actual results, performance or achievements to be materially different from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to, the effect of competition from new self-storage facilities, which would cause rents and occupancy rates to decline; risks associated with the COVID-19 global health crisis or similar events, including but not limited to (i) the impact to the health of our employees and/or customers, (ii) the negative impacts to the economy and to self-storage customers which could reduce the demand for self-storage or reduce our ability to collect rent, (iii) reducing or eliminating our ability to increase rents charged to our current or future customers, (iv) limiting our ability to collect rent from or evict past due customers, (v) we could see an increase in move-outs of longer-term customers due to the economic uncertainty and significant rise in unemployment resulting from the COVID-19 global health crisis which could lead to lower occupancies and reduced average rental rates as longer-term customers are replaced with new customers at lower rates, and (vi) potential negative impacts on the cost and availability of debt and equity which could have a negative impact on our capital and growth plans; the Company’s ability to evaluate, finance and integrate acquired self-storage facilities into the Company’s existing business and operations; the Company’s ability to effectively compete in the industry in which it does business; the Company’s existing indebtedness may mature in an unfavorable credit environment, preventing refinancing or forcing refinancing of the indebtedness on terms that are not as favorable as the existing terms; interest rates may fluctuate, impacting costs associated with the Company’s outstanding floating rate debt; the Company’s ability to comply with debt covenants; any future ratings on the Company’s debt instruments; regional concentration of the Company’s business may subject it to economic downturns in the states of Florida and Texas; the Company’s reliance on its call center; the Company’s cash flow may be insufficient to meet required payments of operating expenses, principal, interest and dividends; and tax law changes that may change the taxability of future income.

CONFERENCE CALL:

Life Storage will hold its Third Quarter Earnings Release Conference Call at 9:00 a.m. Eastern Time on Wednesday, November 3, 2021. To help avoid connection delays, participants are encouraged to pre-register using this link. Anyone unable to pre-register may access the conference call at 888.506.0062 (domestic) or 973.528.0011 (international); passcode 975924 or request to be joined into the Life Storage call. Management will accept questions from registered financial analysts after prepared remarks; all others are encouraged to listen to the call via webcast by accessing the investor relations tab at lifestorage.com. The webcast will be archived for a period of 90 days; a telephone replay will also be available for 14 days by calling 877.481.4010 and entering passcode 43091.

ABOUT LIFE STORAGE, INC:

Life Storage, Inc. is a self-administered and self-managed equity REIT that is in the business of acquiring and managing self-storage facilities. Located in Buffalo, New York, the Company operates more than 1,000 storage facilities in 34 states. The Company serves both residential and commercial storage customers with storage units rented by month. Life Storage consistently provides responsive service to approximately 600,000 customers, making it a leader in the industry. For more information visit http://invest.lifestorage.com.

Life Storage, Inc.
Balance Sheet Data
(unaudited)
		September 30,				December 31,
(dollars in thousands)			2021				2020
Assets
Investment in storage facilities:
Land		$	1,078,022			$	951,813
Building, equipment and construction in progress			5,165,247				4,378,510
			6,243,269				5,330,323
Less: accumulated depreciation			(970,924	)			(873,178	)
Investment in storage facilities, net			5,272,345				4,457,145
Cash and cash equivalents			136,157				54,400
Accounts receivable			15,845				15,464
Receivable from joint ventures			589				1,064
Investment in joint ventures			161,834				143,042
Prepaid expenses			11,740				8,326
Intangible asset - in-place customer leases			7,999				5,409
Trade name			16,500				16,500
Other assets			38,408				26,498
Total Assets		$	5,661,417			$	4,727,848
Liabilities
Line of credit		$	-			$	-
Term notes, net			2,157,418				2,155,457
Accounts payable and accrued liabilities			128,824				112,654
Deferred revenue			24,925				17,416
Mortgages payable			37,220				37,777
Total Liabilities			2,348,387				2,323,304
Noncontrolling redeemable Preferred Operating Partnership Units at redemption value			90,241				-
Noncontrolling redeemable Common Operating Partnership Units at redemption value			40,811				26,446
Equity
Common stock			820				495
Additional paid-in capital			3,482,742				2,671,311
Accumulated deficit			(297,230	)			(288,667	)
Accumulated other comprehensive loss			(4,354	)			(5,041	)
Total Shareholders' Equity			3,181,978				2,378,098
Total Liabilities and Shareholders' Equity		$	5,661,417			$	4,727,848

Life Storage, Inc.
Consolidated Statements of Operations
(unaudited)
		July 1, 2021				July 1, 2020				January 1, 2021				January 1, 2020
		to				to				to				to
(dollars in thousands, except share data)		September 30, 2021				September 30, 2020				September 30, 2021				September 30, 2020
Revenues
Rental income		$	182,937			$	135,965			$	496,316			$	393,701
Other operating income			19,959				15,827				54,999				43,458
Management and acquisition fee income			5,360				4,518				16,091				13,107
Total operating revenues			208,256				156,310				567,406				450,266
Expenses
Property operations and maintenance			42,638				36,199				119,953				101,297
Real estate taxes			21,397				17,729				61,794				52,751
General and administrative			16,141				13,369				45,407				38,498
Depreciation and amortization			33,531				31,960				97,937				86,524
Amortization of in-place customer leases			3,627				1,058				8,350				3,811
Total operating expenses			117,334				100,315				333,441				282,881
Gain on sale of real estate			-				-				-				302
Income from operations			90,922				55,995				233,965				167,687
Other income (expense)
Interest expense (A)			(21,350	)			(20,544	)			(62,470	)			(61,056	)
Interest and dividend income			2				8				787				14
Equity in income of joint ventures			1,477				1,829				4,126				3,915
Net income			71,051				37,288				176,408				110,560
Net income attributable to noncontrolling preferred interests in the Operating Partnership			(476	)			-				(476	)			-
Net income attributable to noncontrolling common interests in the Operating Partnership			(301	)			(193	)			(760	)			(576	)
Net income attributable to common shareholders		$	70,274			$	37,095			$	175,172			$	109,984
Earnings per common share attributable to common shareholders - basic		$	0.89			$	0.52			$	2.27			$	1.56
Earnings per common share attributable to common shareholders - diluted		$	0.89			$	0.52			$	2.27			$	1.56
Common shares used in basic earnings per share calculation			78,961,434				70,835,763				77,135,429				70,372,985
Common shares used in diluted earnings per share calculation			79,179,816				70,949,859				77,303,339				70,478,471
Dividends declared per common share		$	0.7400			$	0.7133			$	2.2200			$	2.1400
(A) Interest expense for the period ending September 30 consists of the following
Interest expense		$	20,748			$	19,948			$	60,662			$	59,258
Amortization of debt issuance costs			602				596				1,808				1,798
Total interest expense		$	21,350			$	20,544			$	62,470			$	61,056

Life Storage, Inc.
Computation of Funds From Operations (FFO) (1)
(unaudited)
		July 1, 2021				July 1, 2020				January 1, 2021				January 1, 2020
		to				to				to				to
(dollars in thousands, except share data)		September 30, 2021				September 30, 2020				September 30, 2021				September 30, 2020
Net income attributable to common shareholders		$	70,274			$	37,095			$	175,172			$	109,984
Noncontrolling common interests in the Operating Partnership			301				193				760				576
Depreciation of real estate and amortization of intangible
assets exclusive of debt issuance costs			36,615				32,417				104,691				88,557
Depreciation and amortization from unconsolidated joint ventures			1,796				1,024				4,239				4,502
Funds from operations allocable to noncontrolling
interest in Operating Partnership			(465	)			(367	)			(1,231	)			(1,060	)
Funds from operations available to common shareholders			108,521				70,362				283,631				202,559
FFO per share - diluted		$	1.37			$	0.99			$	3.67			$	2.87
Adjustments to FFO
Costs related to officer's retirement			155				-				155				-
Acquisition fee			-				-				(1,280	)			(217	)
Gain on sale of land			-				-				-				(302	)
Uninsured damages and customer reinsurance claims, net			-				1,546				-				1,546
Funds from operations resulting from non-recurring items
allocable to noncontrolling interest in Operating Partnership			(1	)			(8	)			5				(5	)
Adjusted funds from operations available to common shareholders			108,675				71,900				282,511				203,581
Adjusted FFO per share - diluted		$	1.37			$	1.01			$	3.65			$	2.89
Common shares - diluted			79,179,816				70,949,859				77,303,339				70,478,471

Life Storage, Inc.
Computation of Net Operating Income (2)
(unaudited)
		July 1, 2021				July 1, 2020				January 1, 2021				January 1, 2020
		to				to				to				to
(dollars in thousands)		September 30, 2021				September 30, 2020				September 30, 2021				September 30, 2020
Net Income		$	71,051			$	37,288			$	176,408			$	110,560
General and administrative			16,141				13,369				45,407				38,498
Depreciation and amortization			37,158				33,018				106,287				90,335
Gain on sale of real estate			-				-				-				(302	)
Interest expense			21,350				20,544				62,470				61,056
Interest and dividend income			(2	)			(8	)			(787	)			(14	)
Equity in income of joint ventures			(1,477	)			(1,829	)			(4,126	)			(3,915	)
Net operating income		$	144,221			$	102,382			$	385,659			$	296,218
Same store (4)		$	108,436			$	87,210			$	296,906			$	251,968
Net operating income related to tenant reinsurance			9,258				7,059				25,376				21,254
Other stores and management fee income			26,527				8,113				63,377				22,996
Total net operating income		$	144,221			$	102,382			$	385,659			$	296,218

Life Storage, Inc.
Quarterly Same Store Data (3) (4) 531 mature stores owned since 12/31/19
(unaudited)
		July 1, 2021			July 1, 2020
		to			to							Percentage
(dollars in thousands)		September 30, 2021			September 30, 2020			Change				Change
Revenues:
Rental income		$	151,459		$	128,692		$	22,767			17.7	%
Other operating income			1,822			1,849			(27	)		-1.5	%
Total operating revenues			153,281			130,541			22,740			17.4	%
Expenses:
Payroll and benefits			9,456			9,514			(58	)		-0.6	%
Real estate taxes			17,639			16,688			951			5.7	%
Utilities			4,107			4,192			(85	)		-2.0	%
Repairs and maintenance			4,218			3,679			539			14.7	%
Office and other operating expense			4,149			3,841			308			8.0	%
Insurance			1,566			1,500			66			4.4	%
Advertising			48			64			(16	)		-25.0	%
Internet marketing			3,662			3,853			(191	)		-5.0	%
Total operating expenses			44,845			43,331			1,514			3.5	%
Net operating income (2)		$	108,436		$	87,210		$	21,226			24.3	%
QTD Same store move ins			49,439			57,114			(7,675	)
QTD Same store move outs			53,151			52,483			668

Other Comparable Quarterly Same Store Data (4)
(unaudited)
		July 1, 2021			July 1, 2020
		to			to						Percentage
		September 30, 2021			September 30, 2020			Change			Change
2020 Same store pool (515 stores)
Revenues		$	148,512		$	126,395		$	22,117		17.5	%
Expenses			43,502			42,092			1,410		3.3	%
Net operating income		$	105,010		$	84,303		$	20,707		24.6	%
2019 Same store pool (502 stores)
Revenues		$	145,225		$	123,759		$	21,466		17.3	%
Expenses			42,350			40,999			1,351		3.3	%
Net operating income		$	102,875		$	82,760		$	20,115		24.3	%

Life Storage, Inc.
Year to Date Same Store Data (3) (4) 531 mature stores owned since 12/31/19
(unaudited)
		January 1, 2021			January 1, 2020
		to			to							Percentage
(dollars in thousands)		September 30, 2021			September 30, 2020			Change				Change
Revenues:
Rental income		$	424,871		$	375,186		$	49,685			13.2	%
Other operating income			5,193			4,806			387			8.1	%
Total operating revenues			430,064			379,992			50,072			13.2	%
Expenses:
Payroll and benefits			28,902			28,775			127			0.4	%
Real estate taxes			52,578			49,872			2,706			5.4	%
Utilities			11,201			11,024			177			1.6	%
Repairs and maintenance			13,066			11,173			1,893			16.9	%
Office and other operating expense			11,976			11,123			853			7.7	%
Insurance			4,655			4,507			148			3.3	%
Advertising			143			191			(48	)		-25.1	%
Internet marketing			10,637			11,359			(722	)		-6.4	%
Total operating expenses			133,158			128,024			5,134			4.0	%
Net operating income (2)		$	296,906		$	251,968		$	44,938			17.8	%
YTD Same store move ins			147,337			156,874			(9,537	)
YTD Same store move outs			139,977			139,968			9

Life Storage, Inc.
Other Data - unaudited		Same Store (3)								All Stores (5)
			2021				2020				2021				2020
Weighted average quarterly occupancy			95.2	%			93.0	%			94.8	%			92.3	%
Occupancy at September 30			94.6	%			93.1	%			94.2	%			92.4	%
Rent per occupied square foot		$	16.57			$	14.50			$	16.52			$	14.44

Life Storage, Inc.
Other Data - unaudited (continued)
Investment in Storage Facilities: (unaudited)
The following summarizes activity in storage facilities during the nine months ended September 30, 2021:
Beginning balance		$	5,330,323
Property acquisitions			858,781
Improvements and equipment additions:
Expansions			10,179
Roofing, paving, and equipment:
Stabilized stores			19,476
Recently acquired stores			3,470
Change in construction in progress (Total CIP $40.1 million)			21,501
Dispositions and Impairments			(461	)
Storage facilities at cost at period end		$	6,243,269
Comparison of Selected G&A Costs (unaudited)		Quarter Ended
		September 30, 2021				September 30, 2020
Management and administrative salaries and benefits		$	10,585			$	7,792
Training			98				173
Call center			845				814
Life Storage Solutions costs			232				205
Income taxes			731				961
Legal, accounting and professional			912				945
Costs related to officer's retirement			155				-
Other administrative expenses (6)			2,583				2,479
		$	16,141			$	13,369
Net rentable square feet		September 30, 2021
Wholly owned properties			47,595,779
Joint venture properties			7,746,297
Third party managed properties			18,702,202
			74,044,278
		September 30, 2021				September 30, 2020
Common shares outstanding			82,017,283				72,298,512
Operating Partnership Units outstanding			344,531				365,949

(1) We believe that Funds from Operations (“FFO”) provides relevant and meaningful information about our operating performance that is necessary, along with net earnings and cash flows, for an understanding of our operating results. FFO adds back historical cost depreciation, which assumes the value of real estate assets diminishes predictably in the future. In fact, real estate asset values increase or decrease with market conditions. Consequently, we believe FFO is a useful supplemental measure in evaluating our operating performance by disregarding (or adding back) historical cost depreciation.

Funds from operations is defined by the National Association of Real Estate Investment Trusts, Inc. (“NAREIT”) as net income available to common shareholders computed in accordance with generally accepted accounting principles (“GAAP”), excluding gains or losses on sales of properties, plus impairment of real estate assets, plus depreciation and amortization and after adjustments to record unconsolidated partnerships and joint ventures on the same basis. We believe that to further understand our performance, FFO should be compared with our reported net income and cash flows in accordance with GAAP, as presented in our consolidated financial statements.

Our computation of FFO may not be comparable to FFO reported by other REITs or real estate companies that do not define the term in accordance with the current NAREIT definition or that interpret the current NAREIT definition differently. FFO does not represent cash generated from operating activities determined in accordance with GAAP, and should not be considered as an alternative to net income (determined in accordance with GAAP) as an indication of our performance, as an alternative to net cash flows from operating activities (determined in accordance with GAAP) as a measure of our liquidity, or as an indicator of our ability to make cash distributions.

(2) Net operating income or "NOI" is a non-GAAP (generally accepted accounting principles) financial measure that we define as total continuing revenues less continuing property operating expenses. NOI also can be calculated by adding back to net income: interest expense, impairment and casualty losses, operating lease expenses, depreciation and amortization expense, any losses on sale of real estate, acquisition related costs, general and administrative expense, and deducting from net income: income from discontinued operations, interest income, any gains on sale of real estate, and equity in income of joint ventures. We believe that NOI is a meaningful measure to investors in evaluating our operating performance, because we utilize NOI in making decisions with respect to capital allocations, in determining current property values, and in comparing period-to-period and market-to-market property operating results. Additionally, NOI is widely used in the real estate industry and the self-storage industry to measure the performance and value of real estate assets without regard to various items included in net income that do not relate to or are not indicative of operating performance, such as depreciation and amortization, which can vary depending on accounting methods and book value of assets. NOI should be considered in addition to, but not as a substitute for, other measures of financial performance reported in accordance with GAAP, such as total revenues, operating income and net income.

(3) Includes the stores owned and/or managed by the Company for the entire periods presented that are consolidated in our financial statements. Does not include unconsolidated joint ventures or other stores managed by the Company.

(4) Revenues and expenses do not include items related to tenant reinsurance.

(5) Does not include unconsolidated joint venture stores or other stores managed by the Company.

(6) Other administrative expenses include office rent, travel expense, investor relations and miscellaneous other expenses.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20211102006332/en/

Life Storage, Inc.

David Dodman

(716) 229-8284

ddodman@lifestorage.com

Source: Life Storage, Inc.

FAQ

What were Life Storage's Q3 2021 earnings results for stock symbol LSI?

Life Storage reported a net income of $70.3 million, or $0.89 per diluted share, for Q3 2021.

How did Life Storage's adjusted FFO perform in Q3 2021?

The adjusted funds from operations for Q3 2021 increased by 35.6% to $1.37 per diluted share.

What is the recent same-store revenue growth for Life Storage (LSI)?

Life Storage's same-store revenue grew by 17.4% year-over-year in Q3 2021.

What is the dividend payout for Life Storage after the increase?

Life Storage increased its dividend by 16% to $0.86 per share.

How many facilities did Life Storage acquire in Q3 2021?

In Q3 2021, Life Storage acquired 29 facilities for $336 million.