Global Self Storage Reports Record Third Quarter 2021 Results
Global Self Storage, Inc. (NASDAQ:SELF) reported third-quarter 2021 results showing total revenues of $2.7 million, a 16.4% increase year-over-year. Net income rose to $629,000, or $0.06 per share, while FFO and AFFO achieved records of $957,000 and $1.0 million, respectively, both up over 59%. Same-store occupancy increased to 94.3%, with rental rates also on the rise. Total capital resources reached approximately $20.5 million, strengthening the company's growth position. The quarterly dividend remained steady at $0.065 per share.
- Total revenues increased 16.4% to $2.7 million.
- Net income rose to $629,000 or $0.06 per diluted share.
- FFO grew 59.3% to a record of $957,000 or $0.09 per diluted share.
- AFFO increased 59.1% to a record of $1.0 million or $0.10 per diluted share.
- Same-store occupancy increased to 94.3%, up from 93.5%.
- Capital resources totaled approximately $20.5 million.
- General and administrative expenses increased 5.4% to $595,000.
Strong Pricing Power and Lease-up Performance Drove Record Revenues, FFO and AFFO; Together with Expansion of Capital Resources, Positions Company for Continued Growth
MILLBROOK, NY / ACCESSWIRE / November 15, 2021 / Global Self Storage, Inc. (NASDAQ:SELF), a real estate investment trust that owns, operates, manages, acquires, and redevelops self-storage properties, reported results for the third quarter ended September 30, 2021. All comparisons are to the same year-ago period unless otherwise noted.
Q3 2021 Highlights
- Total revenues increased
16.4% to a record$2.7 million . - Total expenses decreased
1.8% to$1.9 million . - Net income increased to
$0.6 million or$0.06 per fully diluted share. - Funds from operations (FFO) increased
59.3% to a record$957,000 or$0.09 per diluted share. - Adjusted FFO (AFFO) increased
59.1% to a record$1.0 million or$0.10 per diluted share (see definition of FFO and AFFO, both non-GAAP terms, and their reconciliation to GAAP, below). - Same-store revenues increased
13.8% to a record$2.1 million . - Same-store net operating income (NOI) increased
20.5% to a record$1.4 million , as described below (see definition of same-store NOI, a non-GAAP term, and its reconciliation to GAAP, below). - Same-store occupancy at September 30, 2021 increased to
94.3% from93.5% at September 30, 2020. - Same-store average tenant duration of stay at September 30, 2021 was approximately 3.2 years, up from approximately 3.0 years as of September 30, 2020.
- Maintained quarterly dividend of
$0.06 5 per share. - Capital resources at September 30, 2021 totaled approximately
$20.5 million .
First Nine Months 2021 Highlights
- Total revenues increased
13.6% to a record$7.7 million . - Total expenses decreased
3.2% to$5.9 million . - Net income increased
$1.9 million to$1.9 million or$0.19 per fully diluted share. - Funds from operations (FFO) increased
59.9% to a record$2.3 million or$0.24 per diluted share. - Adjusted FFO (AFFO) increased
58.0% to a record$2.5 million or$0.25 per diluted share. - Same-store revenues increased
9.9% to a record$6.1 million . - Same-store net operating income (NOI) increased
13.8% to a record$3.8 million , as described below. - Same-store occupancy at September 30, 2021 increased to
94.3% from93.5% at September 30, 2020. - Same-store average tenant duration of stay at September 30, 2021 was approximately 3.2 years, up from approximately 3.0 years as of September 30, 2020.
- Maintained quarterly dividend of
$0.06 5 per share.
Management Commentary
"In Q3, our strong pricing power and lease-up performance drove another quarter of record revenues, FFO and AFFO," stated Global Self Storage president and CEO, Mark C. Winmill. "In fact, we once again led our peer group of public self-storage REITs in FFO and AFFO growth.
"We believe this exceptional performance was driven by our approach to the market that enabled us to capture the increasing demand for storage units, with this primarily driven by the migration trend of people moving from urban to suburban areas, as well as overall population growth.
"We strengthened our capital resources during the quarter by extending and increasing our revolving credit facility from
"These financial resources mean we are well positioned to fund and engage in a variety of growth opportunities, such as existing property expansion, acquisitions or joint ventures. In fact, we are currently evaluating additional expansion opportunities at certain properties in our portfolio.
"We see attractive self-storage acquisition opportunities in our target markets that could benefit from our successful management techniques. These proprietary techniques allow us to consider properties where other buyers would likely not be ableto achieve the same level of performance. This approach gives us a competitive edge in an increasingly active acquisition environment for self-storage properties.
"Looking ahead in 2022, we believe our specialized approach to self-storage will support accretive acquisitions and drive continued FFO and AFFO growth. IBISWorld recently reported that the U.S. self-storage market should grow at a 2.2 percent compound annual growth rate to reach
Dividend
On September 1, 2021, the company declared a quarterly dividend of
Q3 Financial Summary
Total revenues increased
Total operating expenses in the third quarter of 2021 decreased
Net income was
As of September 30, 2021, the company's capital resources totaled approximately
Q3 Same-Store Results
At September 30, 2021, Global Self Storage owned nine same-store properties and three non-same-store properties, and managed one third-party owned property.
For the third quarter of 2021, same-store revenues increased
Same-store cost of operations in the third quarter increased
Same-store NOI increased
Same-store occupancy at September 30, 2021 increased to
Same-store average duration of tenant stay at September 30, 2021 was 3.2 years, up from approximately 3.0 years as of September 30, 2020.
For a reconciliation of net income to same-store NOI see, "Reconciliation of GAAP Net Income to Same-Store Net Operating Income," below.
Q3 Operating Results
Net income in the third quarter of 2021 was
General and administrative expenses increased
Business development costs increased to
Interest expense for the third quarter of 2021 decreased to
FFO in the third quarter of 2021 increased
AFFO in the third quarter of 2021 increased
First Nine Months 2021 Financial Summary
Total revenues increased
Total operating expenses in the first nine months of 2021 decreased
Net income was
First Nine Months 2021 Same-Store Results
For the first nine months of 2021, same-store revenues increased
Same-store cost of operations in the first nine months of 2021 increased
Same-store NOI increased
Same-store occupancy at September 30, 2021 increased to
Same-store average duration of tenant stay at September 30, 2021 was 3.2 years, up from approximately 3.0 years as of September 30, 2020.
For a reconciliation of net income to same-store NOI see, "Reconciliation of GAAP Net Income to Same-Store Net Operating Income," below.
First Nine Months 2021 Operating Results
Net income in the first nine months of 2021 was
General and administrative expenses decreased
Business development costs were
Interest expense for the first nine months of 2021 decreased to
FFO in the first nine months of 2021 increased
AFFO in the first nine months of 2021 increased
Q3 and First Nine Months 2021 FFO and AFFO (unaudited)
| For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
Net income (loss) | $ | 629,062 | $ | 337,124 | $ | 1,901,608 | $ | (41,444 | ||||||||
Eliminate items excluded from FFO: | ||||||||||||||||
Unrealized gain on marketable equity securities | (81,992 | ) | (245,571 | ) | (791,189 | ) | (27,402 | |||||||||
Depreciation and amortization | 409,763 | 509,219 | 1,221,938 | 1,527,901 | ||||||||||||
FFO attributable to common stockholders | 956,833 | 600,772 | 2,332,357 | 1,459,055 | ||||||||||||
Adjustments: | ||||||||||||||||
Compensation expense related to stock-based awards | 54,092 | 35,283 | 140,274 | 99,762 | ||||||||||||
Business development, capital raising, store acquisition, and third-party management marketing expenses | 1,797 | 471 | 6,635 | 10,528 | ||||||||||||
AFFO attributable to common stockholders | $ | 1,012,722 | $ | 636,526 | $ | 2,479,266 | $ | 1,569,345 | ||||||||
Earnings per share attributable to common stockholders - basic | $ | 0.06 | $ | 0.04 | $ | 0.19 | $ | (0.00 | ||||||||
Earnings per share attributable to common stockholders - diluted | $ | 0.06 | $ | 0.04 | $ | 0.19 | $ | (0.00 | ||||||||
FFO per share - diluted | $ | 0.09 | $ | 0.06 | $ | 0.24 | $ | 0.16 | ||||||||
AFFO per share - diluted | $ | 0.10 | $ | 0.07 | $ | 0.25 | $ | 0.17 | ||||||||
Weighted average shares outstanding - basic | 10,601,521 | 9,277,043 | 9,757,458 | 9,269,834 | ||||||||||||
Weighted average shares outstanding - diluted | 10,635,006 | 9,290,984 | 9,787,317 | 9,269,834 | ||||||||||||
Additional Information
More information about the company's third quarter 2021 results, including financial statements and related notes, is available on Form 10-Q 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, 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 our liquidity or ability to pay dividends, because it excludes financing activities presented on our 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, store acquisition, and third-party management marketing expenses and non-recurring items, which we believe are not indicative of the company's operating results. We present AFFO because we believe it is a helpful measure in understanding our results of operations insofar as we believe that the items noted above that are included in FFO, but excluded from AFFO, are not indicative of our ongoing operating results. We also believe that the investment community considers our AFFO (or similar measures using different terminology) when evaluating us. Because other REITs or real estate companies may not compute AFFO in the same manner as we do, and may use different terminology, our computation of AFFO may not be comparable to AFFO reported by other REITs or real estate companies.
We believe net operating income or "NOI" is a meaningful measure of operating performance because we utilize 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, we believe 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 our 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. Management considers a store to be stabilized once it has achieved an occupancy rate that management believes, based on management'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. Management 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 September 30, 2021, 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, and NOI, 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 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.
Company Contact:
Thomas O'Malley, Chief Financial Officer
Global Self Storage
Tel (212) 785-0900, ext. 267
tomalley@globalselfstorage.us
Media Contact:
Tim Randall
CMA Media
Tel (949) 432-7572
Email contact
Investor Relations:
Ronald Both or Justin Lumley
CMA Investor Relations
Tel (949) 432-7566
GLOBAL SELF STORAGE, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
| September 30, 2021 | December 31, 2020 | |||||||
Assets | ||||||||
Real estate assets, net | $ | 58,790,221 | $ | 59,768,533 | ||||
Cash and cash equivalents | 2,527,319 | 1,614,771 | ||||||
Restricted cash | 231,505 | 340,672 | ||||||
Investments in securities | 2,707,640 | 1,916,451 | ||||||
Accounts receivable | 106,200 | 106,521 | ||||||
Prepaid expenses and other assets | 510,420 | 351,764 | ||||||
Line of credit issuance costs, net | 258,948 | 152,542 | ||||||
Goodwill | 694,121 | 694,121 | ||||||
Total assets | $ | 65,826,374 | $ | 64,945,375 | ||||
Liabilities and equity | ||||||||
Note payable, net | $ | 18,036,797 | $ | 18,389,176 | ||||
Accounts payable and accrued expenses | 1,439,711 | 1,373,308 | ||||||
Line of credit borrowing | - | 5,144,000 | ||||||
Total liabilities | 19,476,508 | 24,906,484 | ||||||
Commitments and contingencies | ||||||||
Equity | ||||||||
Preferred stock, | - | - | ||||||
Common stock, | 107,086 | 93,431 | ||||||
Additional paid in capital | 46,766,712 | 40,455,409 | ||||||
Accumulated deficit | (523,932 | ) | (509,949 | |||||
Total equity | 46,349,866 | 40,038,891 | ||||||
Total liabilities and equity | $ | 65,826,374 | $ | 64,945,375 | ||||
GLOBAL SELF STORAGE, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(Unaudited)
| For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
Revenues | ||||||||||||||||
Rental income | $ | 2,608,664 | $ | 2,237,424 | $ | 7,402,570 | $ | 6,521,176 | ||||||||
Other property related income | 102,428 | 90,989 | 288,249 | 246,148 | ||||||||||||
Management fees and other income | 19,426 | 17,496 | 56,408 | 52,341 | ||||||||||||
Total revenues | 2,730,518 | 2,345,909 | 7,747,227 | 6,819,665 | ||||||||||||
Expenses | ||||||||||||||||
Property operations | 940,372 | 907,350 | 2,831,693 | 2,698,639 | ||||||||||||
General and administrative | 594,547 | 564,162 | 1,804,371 | 1,822,353 | ||||||||||||
Depreciation and amortization | 409,763 | 509,219 | 1,221,938 | 1,527,901 | ||||||||||||
Business development | 1,797 | 471 | 6,635 | 10,528 | ||||||||||||
Total expenses | 1,946,479 | 1,981,202 | 5,864,637 | 6,059,421 | ||||||||||||
Operating income | 784,039 | 364,707 | 1,882,590 | 760,244 | ||||||||||||
Other income (expense) | ||||||||||||||||
Dividend and interest income | 19,533 | 17,648 | 56,396 | 62,017 | ||||||||||||
Unrealized gain on marketable equity securities | 81,992 | 245,571 | 791,189 | 27,402 | ||||||||||||
Interest expense | (256,502 | ) | (290,802 | ) | (828,567 | ) | (891,107 | ) | ||||||||
Total other income (expense), net | (154,977 | ) | (27,583 | ) | 19,018 | (801,688 | ) | |||||||||
Net income (loss) and comprehensive income (loss) | $ | 629,062 | $ | 337,124 | $ | 1,901,608 | $ | (41,444 | ) | |||||||
Earnings per share | ||||||||||||||||
Basic | $ | 0.06 | $ | 0.04 | $ | 0.19 | $ | (0.00 | ) | |||||||
Diluted | $ | 0.06 | $ | 0.04 | $ | 0.19 | $ | (0.00 | ) | |||||||
Weighted average shares outstanding | ||||||||||||||||
Basic | 10,601,521 | 9,277,043 | 9,757,458 | 9,269,834 | ||||||||||||
Diluted | 10,635,006 | 9,290,984 | 9,787,317 | 9,269,834 | ||||||||||||
Reconciliation of GAAP Net Income to Same-Store Net Operating Income
The following table presents a reconciliation of same-store net operating income to net income as presented on the company's consolidated statements of operations for the periods indicated (unaudited):
| For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||
Net income (loss) | $ | 629,062 | $ | 337,124 | $ | 1,901,608 | $ | (41,444 | ||||||||||||||||||||
Adjustments: | ||||||||||||||||||||||||||||
Management fees and other income | (19,426 | ) | (17,496 | ) | (56,408 | ) | (52,341 | |||||||||||||||||||||
General and administrative | 594,547 | 564,162 | 1,804,371 | 1,822,353 | ||||||||||||||||||||||||
Depreciation and amortization | 409,763 | 509,219 | 1,221,938 | 1,527,901 | ||||||||||||||||||||||||
Business development | 1,797 | 471 | 6,635 | 10,528 | ||||||||||||||||||||||||
Dividend, interest, and other income | (19,533 | ) | (17,648 | ) | (56,396 | ) | (62,017 | |||||||||||||||||||||
Unrealized (gain) loss on marketable equity securities | (81,992 | ) | (245,571 | ) | (791,189 | ) | (27,402 | |||||||||||||||||||||
Interest expense | 256,502 | 290,802 | 828,567 | 891,107 | ||||||||||||||||||||||||
Non same-store revenues | (572,272 | ) | (448,873 | ) | (1,600,770 | ) | (1,224,254 | |||||||||||||||||||||
Non same-store cost of operations | 201,665 | 189,783 | 575,127 | 523,900 | ||||||||||||||||||||||||
Total same-store net operating income | $ | 1,400,113 | $ | 1,161,973 | $ | 3,833,483 | $ | 3,368,331 | ||||||||||||||||||||
| For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||
Same-store revenues | $ | 2,138,819 | $ | 1,879,539 | $ | 6,090,048 | $ | 5,543,070 | ||||||||||||||||||||
Same-store cost of operations | 738,706 | 717,566 | $ | 2,256,565 | 2,174,739 | |||||||||||||||||||||||
Total same-store net operating income | $ | 1,400,113 | $ | 1,161,973 | $ | 3,833,483 | $ | 3,368,331 | ||||||||||||||||||||
SOURCE: Global Self Storage
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