Global Self Storage Reports Fourth Quarter and Full Year 2020 Results
Global Self Storage reported strong financial results for Q4 and the full year 2020, with total revenues reaching $2.4 million in Q4, a 6.8% increase year-over-year. Net income rose to $316,000, or $0.03 per diluted share. Full-year revenues also increased by 6.1% to $9.2 million. Notably, same-store occupancy improved to 95.1%, up 340 basis points from 2019. The company maintained a quarterly dividend of $0.065 per share. Challenges from the COVID-19 pandemic were effectively managed, as evidenced by consistent rent collections and a focus on digital marketing strategies.
- Q4 revenue increased 6.8% to $2.4 million.
- Net income for Q4 rose to $316,000, a significant increase from $17,000 in the previous year.
- Funds from operations (FFO) improved to $650,000 in Q4 2020.
- Same-store net operating income (NOI) rose 6.5% to $1.2 million in Q4.
- Same-store occupancy increased 340 basis points to 95.1% by year-end 2020.
- Operating income decreased 12.9% to $1.2 million for the full year 2020.
- General and administrative expenses rose 12.3% for the full year, indicating higher operational costs.
- Full-year net income declined from $591,000 in 2019 to $274,000 in 2020.
Expansion Lease-ups Perform Despite COVID-19, Resulting in Record-High Occupancies and Revenues; Continued Approach to Controlling Expenses Drives Peer-Leading Same-Store Net Operating Income Growth
NEW YORK, NY / ACCESSWIRE / March 31, 2021 / Global Self Storage, Inc. (NASDAQ:SELF), a real estate investment trust that owns, operates, manages, acquires, develops and redevelops self-storage properties, reported results for the fourth quarter and full year ended December 31, 2020. All comparisons are to the same period in 2019 unless otherwise noted.
Q4 2020 Highlights
- Total revenues increased
6.8% to a new high of$2.4 million . - Net income increased
$299,000 t o$316,000 or$0.03 per fully diluted share. - Funds from operations (FFO) increased to
$650,000 or$0.07 per diluted share. - Adjusted FFO (AFFO) increased to
$677,000 or$0.07 per diluted share (see definition of FFO and AFFO, both non-GAAP terms, and their reconciliation to GAAP, below). - Same-store revenues increased
2.0% to$1.9 million . - Same-store cost of operations decreased
4.7% to$702,000 , which resulted from a decrease in most major categories of same-store level expenses. - Same-store net operating income (NOI) increased
6.5% to$1.2 million , primarily due to the decrease in store-level cost of operations and limiting the decrease in revenues caused by the COVID-19 pandemic, as described below (see definition of same-store NOI, a non-GAAP term, and its reconciliation to GAAP, below). - Same-store occupancy at December 31, 2020, increased 340 basis points to
95.1% from91.7% at December 31, 2019. - Same-store average tenant duration of stay at December 31, 2020 was 3.0 years, approximately the same as of December 31, 2019.
- Maintained quarterly dividend of
$0.06 5 per share. - Capital resources at December 31, 2020 totaled approximately
$8.8 million , comprised of$2.0 million in cash, cash equivalents, and restricted cash,$1.9 million in marketable equity securities, and$4.9 million available under a revolving credit facility.
Full Year 2020 Highlights
- Total revenues increased
6.1% to a new high of$9.2 million . - Net income was
$274,000 or$0.03 per share. - FFO increased to
$2.1 million or$0.23 per diluted share. - AFFO increased to
$2.2 million or$0.24 per diluted share. - Same-store revenues increased
0.7% to$7.4 million , despite COVID-19 pandemic and related economic disruption. - Same-store cost of operations decreased
8.8% to$2.9 million , resulting from a decrease in every major category of same-store level expenses. - Same-store NOI increased
7.8% to$4.6 million , primarily due to the decrease in store-level cost of operations and limiting the reduction in revenue growth caused by the COVID-19 pandemic, as described below. - Same-store occupancy at December 31, 2020 increased 340 basis points to
95.1% from91.7% at December 31, 2019. - Same-store average tenant duration of stay at December 31, 2020 was 3.0 years, approximately the same as of December 31, 2019.
- Distributed dividends of
$0.26 per share of common stock.
Update Related to COVID-19 Pandemic
- Continued operations and provided tenant access at all stores, as the company continued to protect its tenants and employees by following applicable COVID-19 safety guidelines.
- Benefited from contactless technology deployed pre-COVID-19 that provides tenants online leasing and payment options, as well as on-site kiosks that facilitate contactless rentals, lock purchases, and lease payments 24/7.
- Total revenue growth was up
6.8% for the fourth quarter of 2020, versus the same period last year. - At December 31, 2020, same-store occupancy was
95.1% and combined store occupancy was94.1% . - Rent collections in Q4 were
97.4% . - Return to normalcy in the company's revenues was mainly attributable to consistent rent collections, despite the COVID-19 pandemic, and an increase in net leased square footage.
- In light of reduced in-person marketing opportunities due to the COVID-19 pandemic, the company has pivoted to digital and referral-based marketing of its third-party management program, Global MaxManagementSM.
- Continuing to explore the possibility of entering into joint-venture relationships with third parties for the acquisition of self-storage facilities; the company believes such third-party interest to conduct business with the company is due to its history of strong same-store performance and proven operational expertise.
- Capital resources available at December 31, 2020 totaled approximately
$8.8 million , providing operational flexibility for the company to continue to pursue its long-term strategic business plan. The plan includes self-storage property acquisitions, either directly or through joint ventures, and expansions at the company's existing properties. - Remaining cautious in 2021 due to the continuing uncertainty related to the impacts of the COVID-19 pandemic, including the potential for future stay-at-home orders, uncertain economic climate, and potential impact on rentals, vacates, pricing, receivables, auctions and existing customer rent increases.
Management Commentary
"In 2020, we led the industry in same-store NOI growth as well as with same-store average occupancy of more than
"Our proprietary revenue rate management program helped us maintain our competitive market price advantage for our storage units. It enabled us to maximize each store's occupancy, and our self-storage revenue and NOI.
"Our strong results were also driven by effective internet and digital marketing initiatives, along with the high-quality of customer service that we believe is essential in building brand loyalty. Our customer service efforts have continued to drive referral and word-of-mouth market demand for our storage units and services, and we have continued to attract high quality, long term tenants.
"To meet increasing demand, during the year we completed two expansions and a conversion project that added a total of more than 32,800 leasable square feet of climate-controlled and drive-up units. In February of last year, we completed an expansion project for all-climate-controlled storage units at our store in Millbrook, New York. Its occupancy increased from
"For our conversion project of climate-controlled units at our store in McCordsville, Indiana, its occupancy increased from
"Our other expansion project added drive-up storage units at our store in West Henrietta, New York in August of 2020. Its occupancy increased from
"We continue to offer our third-party management platform, Global MaxManagementSM, for property developers and single-property/small-portfolio operators looking to enhance the performance of their self-storage properties. The platform provides us an additional revenue stream through management fees and tenant insurance premiums. Our marketing of this service has been challenged by the pandemic cancelling a number of in-person industry events over the past year. However, we continue to believe this offering will help build brand awareness and create a captive acquisition pipeline, and contribute more meaningfully to revenues over time.
"We remain well positioned with a strong balance sheet. At year end, our capital resources totaled about
"We continue to look at potential acquisitions in secondary and tertiary cities in the Northeast, Mid-Atlantic and Midwest that are outside the top 25 metropolitan areas. These areas have experienced significantly slower supply growth and less competition from other public REITs. These locations are where we expect to see above average growth in rents due to favorable supply and demand dynamics.
"From an operational and financial perspective, we have kicked off 2021 in a strong position and will continue to explore ways to enhance our performance as we pursue strategic expansion and acquisitive growth. We will continue to target key markets and prospective properties where we believe our highly effective professional management and best practices can improve operations. We believe our unique approach to self-storage management has contributed to our strong performance, even during adverse economic times.
"Given our lease-up momentum, the tailwinds from the suburban relocation trend, and our proven strategies, we believe Global Self Storage is set for another successful year."
Q4 Financial Summary
Total revenues increased
Total operating expenses in the fourth quarter of 2020 increased
Net income was
Q4 Same-Store Results
At December 31, 2020, Global Self Storage owned nine same-store properties and three non-same-store properties, and managed one third-party owned property.
For the fourth quarter of 2020, same-store revenues increased
Same-store cost of operations in the fourth quarter decreased
Same-store NOI increased
Same-store occupancy at December 31, 2020 increased 340 basis points to
Same-store average duration of tenant stay at December 31, 2020 was 3.0 years, approximately the same as of December 31, 2019.
For a reconciliation of net income to same-store NOI see, "Reconciliation of GAAP Net Income to Same-Store Net Operating Income," below.
Q4 Operating Results
Net income in the fourth quarter of 2020 was
General and administrative expenses increased
Business development costs for the fourth quarter of 2020 were
Interest expense for the fourth quarter of 2020 was
FFO in the fourth quarter of 2020 increased to
AFFO in the fourth quarter of 2020 increased to
Full Year 2020 Financial Summary
Total revenues increased
Total operating expenses increased
Operating income decreased
Net income for the full year 2020 was
Full Year 2020 Same-Store Results
At December 31, 2020, Global Self Storage owned nine same-store properties and three non-same-store properties, and managed one third-party owned property.
For the full year ended December 31, 2020, same-store revenues increased
Same-store operating expenses for the full year 2020 decreased
Same-store NOI in the full year of 2020 increased
Same-store occupancy at December 31, 2020 increased 340 basis points to
Same-store average duration of tenant stay at December 31, 2020 was 3.0 years, approximately the same as of December 31, 2019.
For a reconciliation of net income to same-store NOI see, "Reconciliation of GAAP Net Income to Same-Store Net Operating Income," below.
Full Year 2020 Operating Results
Net income for the full year ended December 31, 2020 was
General and administrative expenses increased
Business development costs for the full year of 2020 decreased to
Interest expense for the full year 2020 was
FFO in the full year 2020 increased to
AFFO in the full year 2020 increased to
Q4 and Full Year 2020 FFO and AFFO
| Three Months | Three Months | Twelve Months | Twelve Months | |||||||||||||
| Ended | Ended | Ended | Ended | |||||||||||||
| December 31, 2020 | December 31, 2019 | December 31, 2020 | December 31, 2019 | |||||||||||||
Net income | $ | 315,785 | $ | 16,718 | $ | 274,341 | $ | 590,619 | ||||||||
Eliminate items excluded from FFO: | ||||||||||||||||
Unrealized (gain) loss on marketable equity securities | (127,737 | ) | 161,397 | (155,139 | ) | (193,705 | ) | |||||||||
Depreciation and amortization | 461,859 | 382,821 | 1,989,761 | 1,438,908 | ||||||||||||
FFO attributable to common stockholders | 649,907 | 560,936 | 2,108,963 | 1,835,822 | ||||||||||||
Adjustments: | ||||||||||||||||
Compensation expense related to stock-based awards | 26,273 | (32,331 | ) | 126,035 | 102,989 | |||||||||||
Business development, capital raising, and property acquisition costs | 470 | 28,443 | 10,998 | 124,428 | ||||||||||||
AFFO attributable to common stockholders | $ | 676,650 | $ | 557,048 | $ | 2,245,996 | $ | 2,063,239 | ||||||||
Earnings per share attributable to common stockholders - basic | $ | 0.03 | $ | 0.00 | $ | 0.03 | $ | 0.08 | ||||||||
Earnings per share attributable to common stockholders - diluted | $ | 0.03 | $ | 0.00 | $ | 0.03 | $ | 0.08 | ||||||||
FFO per share - diluted | $ | 0.07 | $ | 0.07 | $ | 0.23 | $ | 0.24 | ||||||||
AFFO per share - diluted | $ | 0.07 | $ | 0.07 | $ | 0.24 | $ | 0.27 | ||||||||
Weighted average shares outstanding - basic | 9,284,634 | 7,879,132 | 9,273,554 | 7,699,966 | ||||||||||||
Weighted average shares outstanding - diluted | 9,294,516 | 7,886,098 | 9,282,687 | 7,702,117 | ||||||||||||
Dividends
On December 1, 2020, the company declared a quarterly dividend of
For the full year of 2020, the company distributed dividends of
Balance Sheet
At December 31, 2020, capital resources totaled approximately
Additional Information
More information about the company's fourth quarter and full year 2020 results, including financial statements and related notes, is available on Form 10-K as filed with the U.S. Securities and Exchange Commission and posted to the investor relations section of the company's website.
About Global Self Storage
Global Self Storage is a self-administered and self-managed REIT that owns, operates, manages, acquires, develops 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 Twitter, LinkedIn and Facebook.
Non-GAAP Financial Measures
Funds from Operations ("FFO") and FFO per share are non-GAAP measures defined by the National Association of Real Estate Investment Trusts ("NAREIT") and are considered helpful measures of REIT performance by REITs and many REIT analysts. NAREIT defines FFO as a REIT's net income, excluding gains or losses from sales of property, and adding back real estate depreciation and amortization. FFO and FFO per share are not a substitute for net income or earnings per share. FFO is not a substitute for GAAP net cash flow in evaluating the company's liquidity or ability to pay dividends, because it excludes financing activities presented on the company's statements of cash flows. In addition, other REITs may compute these measures differently, so comparisons among REITs may not be helpful. However, the Company believes that to further understand the performance of its stores, FFO should be considered along with the net income and cash flows reported in accordance with GAAP and as presented in the Company's financial statements.
Adjusted FFO ("AFFO") represents FFO excluding the effects of business development, capital raising, and acquisition related costs and non-recurring items, which the company believes are not indicative of the Company's operating results. The company presents AFFO because management believes it is a helpful measure in understanding the company's results of operations insofar as management believes that the items noted above that are included in FFO, but excluded from AFFO, are not indicative of the company's ongoing operating results. The company also believes that the analyst community considers its AFFO (or similar measures using different terminology) when evaluating the company. Because other REITs or real estate companies may not compute AFFO in the same manner as the company does, and may use different terminology, management's computation of AFFO may not be comparable to AFFO reported by other REITs or real estate companies.
The company believes net operating income or "NOI" is a meaningful measure of operating performance because management utilizes NOI in making decisions with respect to, among other things, capital allocations, determining current store values, evaluating store performance, and in comparing period-to-period and market-to-market store operating results. In addition, the company believes the investment community utilizes NOI in determining operating performance and real estate values, and does not consider depreciation expense because it is based upon historical cost. NOI is defined as net store earnings before general and administrative expenses, interest, taxes, depreciation, and amortization.
NOI is not a substitute for net income, net operating cash flow, or other related GAAP financial measures, in evaluating the company's operating results.
Same-Store Self Storage Operations Definition
The company considers its same-store portfolio to consist of only those stores owned and operated on a stabilized basis at the beginning and at the end of the applicable periods presented. The company considers a store to be stabilized once it has achieved an occupancy rate that management believes, based on the company's assessment of market-specific data, is representative of similar self storage assets in the applicable market for a full year measured as of the most recent January 1 and has not been significantly damaged by natural disaster or undergone significant renovation or expansion. The company believes that same-store results are useful to investors in evaluating the company's performance because they provide information relating to changes in store-level operating performance without taking into account the effects of acquisitions, dispositions or new ground-up developments. At December 31, 2020, the company owned nine same-store properties and three non-same-store properties. The Company believes that by providing same-store results from a stabilized pool of stores, with accompanying operating metrics including, but not limited to, variances in occupancy, rental revenue, operating expenses, NOI, etc., stockholders and potential investors are able to evaluate operating performance without the effects of non-stabilized occupancy levels, rent levels, expense levels, acquisitions or completed developments. Same-store results should not be used as a basis for future same-store performance or for the performance of the Company's stores as a whole.
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, including the negative impacts from the continued spread of COVID-19 on the economy, the self storage industry, the broader financial markets, the Company's financial condition, results of operations and cash flows and the ability of the Company's tenants to pay rent. 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.
Contacts:
Global Self Storage
Thomas O'Malley, Chief Financial Officer
1 (212) 785-0900, ext. 267
tomalley@globalselfstorage.us
CMA Investor Relations
Ron Both or Grant Stude
1 (949) 432-7566
SELF@cma.team
GLOBAL SELF STORAGE, INC.
CONSOLIDATED BALANCE SHEETS
| December 31, 2020 | December 31, 2019 | |||||||
Assets | ||||||||
Real estate assets, net | $ | 59,768,533 | $ | 59,752,153 | ||||
Cash and cash equivalents | 1,614,771 | 3,990,160 | ||||||
Restricted cash | 340,672 | 263,405 | ||||||
Investments in securities | 1,916,451 | 1,761,312 | ||||||
Accounts receivable | 106,521 | 164,078 | ||||||
Prepaid expenses and other assets | 351,764 | 325,450 | ||||||
Line of credit issuance costs, net | 152,542 | 311,869 | ||||||
Intangible assets, net | - | 398,795 | ||||||
Goodwill | 694,121 | 694,121 | ||||||
Total assets | $ | 64,945,375 | $ | 67,661,343 | ||||
Liabilities and equity | ||||||||
Note payable, net | $ | 18,389,176 | $ | 18,839,787 | ||||
Line of credit borrowing | 5,144,000 | 4,914,000 | ||||||
Accounts payable and accrued expenses | 1,373,308 | 1,841,640 | ||||||
Total liabilities | 24,906,484 | 25,595,427 | ||||||
Commitments and contingencies | ||||||||
Equity | ||||||||
Preferred stock, | - | - | ||||||
Common stock, | 93,431 | 93,303 | ||||||
Additional paid in capital | 40,455,409 | 40,329,502 | ||||||
Accumulated comprehensive income | - | - | ||||||
(Accumulated deficit) Retained earnings | (509,949 | ) | 1,643,111 | |||||
Total equity | 40,038,891 | 42,065,916 | ||||||
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FAQ
What were the financial results for Global Self Storage in Q4 2020?
Global Self Storage reported a 6.8% increase in Q4 revenue to $2.4 million, with net income of $316,000 or $0.03 per diluted share.
How did COVID-19 impact Global Self Storage's operations?
Despite the COVID-19 pandemic, Global Self Storage maintained strong rent collections and increased same-store occupancy to 95.1%.
What is the same-store net operating income growth for Global Self Storage in 2020?
Same-store net operating income (NOI) for 2020 increased by 7.8% to $4.6 million.
What dividends did Global Self Storage declare for 2020?
Global Self Storage maintained a quarterly dividend of $0.065 per share and distributed a total of $0.26 per share for the full year.
What was the total revenue for Global Self Storage in 2020?
Total revenues for Global Self Storage in 2020 reached $9.2 million, a 6.1% increase from 2019.
Global Self Storage, Inc.
NASDAQ:SELFSELF RankingsSELF Latest NewsSELF Stock Data
59.82M
10.34M
8.14%
31.01%
0.18%
REIT - Specialty
Real Estate Investment Trusts
United States of America
MILLBROOK
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