Global Self Storage Extends $15 Million Revolving Credit Facility
Global Self Storage (NASDAQ:SELF) has extended its $15 million revolving credit facility with The Huntington National Bank for another three years, with a further one-year extension option. The facility bears interest at one-month SOFR plus 3.00%. Secured by properties in Millbrook and West Henrietta, NY; Lima, OH; Fishers, IN; and Clinton, CT, this credit line supports the company's growth strategies. CEO Mark C. Winmill emphasized their strong balance sheet and operational performance, focusing on property acquisitions, joint ventures, and expansions. The strategic plan aims to optimize occupancy, revenue, and NOI to build long-term shareholder value.
- Extension of $15 million revolving credit facility for three years with a one-year extension option.
- Interest rate set at one-month SOFR plus 3.00%, secured by multiple properties.
- Supports growth through property acquisitions, joint ventures, and expansions.
- Strong operational performance and balance sheet.
- Increased debt obligations due to the extended credit facility.
Insights
Extending a revolving credit facility often reflects a company's strategic intent to ensure liquidity while planning for growth. In this case,
From a risk perspective, having properties as security adds a layer of safety for the lender but indicates the company's commitment to leveraging its assets for growth. This could be a double-edged sword: while it shows confidence, it also means that these assets are tied up as collateral.
At the same time, the statements made by the CEO suggest a clear strategy focused on regions with limited supply growth and lower competition, which could drive higher occupancy rates and better return on investment. However, investors should monitor the company's ability to maintain these growth drivers, especially in a fluctuating economic environment.
The self-storage industry has been experiencing a steady demand due to various factors like increased consumer storage needs and the rise in e-commerce requiring more warehousing. By extending the credit facility, Global Self Storage is strategically positioning itself to capitalize on these trends. The focus on areas with limited competition could indeed provide a competitive edge, but one must consider broader market dynamics such as economic downturns, which may affect occupancy and rental rates.
Moreover, the company's emphasis on using professional management techniques to optimize revenue and net operating income (NOI) aligns well with industry best practices. However, potential investors should be aware that while the credit facility offers financial flexibility, it also introduces interest rate risk, especially in a rising rate environment.
MILLBROOK, NY / ACCESSWIRE / July 11, 2024 / Global Self Storage, Inc. (NASDAQ:SELF), a real estate investment trust that owns, operates, manages, acquires, and redevelops self-storage properties, has extended its
The revolving credit line bears interest on withdrawn funds at a rate equal to one-month SOFR plus
"Our robust balance sheet enables us to pursue growth through self-storage property acquisitions, joint ventures, and expansion of our existing properties," noted president and CEO of Global Self Storage, Mark C. Winmill. "We continue to explore opportunities in select regions across the U.S., particularly where we find supply growth is limited and competition from other professionally managed operators is generally less.
"We focus on opportunities where we can apply our professional management techniques to optimize occupancy, revenue generation, and NOI. Our strong track record of operational performance positions us well to execute our strategic business plan and continue to build value over the long term for our stockholders."
Additional details of the revolving credit facility are available in the company's current report on Form 8-K filed with the U.S. Securities and Exchange Commission at www.sec.gov on July 11, 2024.
Company Objective
The objective of the company is to increase value over time for the benefit of its stockholders. Toward this end, the company will continue to execute its strategic business plan, which includes funding acquisitions, either directly or through joint ventures, and expansion projects at its existing properties. The company's board of directors regularly reviews the strategic business plan, with emphasis on capital formation, debt versus equity ratios, dividend policy, use of capital and debt, FFO and AFFO performance, and optimal cash levels.
The management of Global Self Storage believes that the company's continued operational performance and capital resources position it well to continue to execute its strategic business plan.
About Global Self Storage
Global Self Storage is a self-administered and self-managed REIT that owns, operates, manages, acquires, and redevelops self-storage properties. The company's self-storage properties are designed to offer affordable, easily accessible and secure storage space for residential and commercial customers. Through its wholly owned subsidiaries, the company owns and/or manages 13 self-storage properties in Connecticut, Illinois, Indiana, New York, Ohio, Pennsylvania, South Carolina, and Oklahoma.
For more information, go to ir.globalselfstorage.us or visit the company's customer site at www.globalselfstorage.us. You can also follow Global Self Storage on X, LinkedIn and Facebook.
Cautionary Note Regarding Forward-Looking Statements
Certain information presented in this press release may contain "forward-looking statements" within the meaning of the federal securities laws including, but not limited to, the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning the company's plans, objectives, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, plans or intentions, and other information that is not historical information. In some cases, forward-looking statements can be identified by terminology such as "believes," "plans," "intends," "expects," "estimates," "may," "will," "should," "anticipates," or the negative of such terms or other comparable terminology, or by discussions of strategy. All forward-looking statements by the company involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of the company, which may cause the company's actual results to be materially different from those expressed or implied by such statements. The company may also make additional forward-looking statements from time to time. All such subsequent forward-looking statements, whether written or oral, by the company or on its behalf, are also expressly qualified by these cautionary statements. Investors should carefully consider the risks, uncertainties, and other factors, together with all of the other information included in the company's filings with the Securities and Exchange Commission, and similar information. All forward-looking statements, including without limitation, the company's examination of historical operating trends and estimates of future earnings, are based upon the company's current expectations and various assumptions. The company's expectations, beliefs and projections are expressed in good faith, but there can be no assurance that the company's expectations, beliefs and projections will result or be achieved. All forward-looking statements apply only as of the date made. The company undertakes no obligation to publicly update or revise forward-looking statements which may be made to reflect events or circumstances after the date made or to reflect the occurrence of unanticipated events. The amount, nature, and/or frequency of dividends paid by the company may be changed at any time without notice.
Company Contact:
Thomas O'Malley
Chief Financial Officer
Global Self Storage
1 (212) 785-0900, ext. 267
Email Contact
Investor Relations Contact:
Ron Both
CMA Investor Relations
Tel (949) 432-7566
Email Contact
Media Contact:
Tim Randall
CMA Media Relations
Tel (949) 432-7572
Email Contact
SOURCE: Global Self Storage
View the original press release on accesswire.com
FAQ
What is the new duration of Global Self Storage's extended credit facility?
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