Exhibit 99.1
News Release—November 4, 2010
U-STORE-IT SAME-STORE REVENUE GROWS 1.4%
COMPANY RAISES GUIDANCE FOR THE THIRD CONSECUTIVE QUARTER AND REPORTS THIRD QUARTER FFO PER SHARE OF $0.13
WAYNE, PA — (MARKET WIRE) — November 4, 2010 — U-Store-It Trust (NYSE: YSI) announced its operating results for the three and nine months ended September 30, 2010. “Our third quarter was successful on several fronts. We amended our credit facility and unencumbered a significant portion of our assets. We acquired three, high-quality facilities and our same-store portfolio posted 1.4% revenue growth with an average physical occupancy of 77.9%, representing a 170 basis point gain over last year. Despite operating in what continues to be a challenging economic environment, our revenue growth reflects our resilient portfolio and sector, as well as our ability to capture more than our share of the self-storage consumer demand,” said Dean Jernigan, Chief Executive Officer of U-Store-It.
Key Metrics for the Quarter and Nine Months Ended September 30, 2010
· Funds from Operations (“FFO”)
· FFO of $0.13 per share for the three months ended September 30, 2010 compared to our expectation entering the quarter of $0.12 to $0.13 per share.
· Weighted Average Shares and Units Outstanding
· Weighted average shares and units outstanding were 99.6 million and 81.1 million for the third quarter of 2010 and 2009, respectively.
· Same-store Revenue (363 same-store facilities)
· 3rd quarter - Same-store total revenue increased 1.4% from the third quarter of 2009.
· Nine months ended - Same-store total revenue decreased 0.8% in 2010 over 2009.
· Same-store Property Operating Expenses
· 3rd quarter - Same-store property operating expenses increased 2.9% due to the timing of advertising costs when compared to the third quarter of 2009.
· 3rd quarter — Same-store property operating expenses excluding advertising expense decreased 1.0% when compared to the third quarter of 2009.
· Nine months ended - Same-store property operating expenses decreased 1.5% from 2009 to 2010.
· Same-store Net Operating Income (“NOI”)
· 3rd quarter - Same-store NOI increased 0.5% from the third quarter of 2009.
· Nine months ended - Same-store NOI decreased 0.4% from the first nine months of 2009.
· Realized Annual Rent
· 3rd quarter - Same-store realized annual rent per occupied square foot decreased to $10.98 or 1.1% compared to the third quarter of 2009.
· Nine months ended - Same-store realized annual rent per occupied square foot decreased to $10.97 or 1.8% compared to 2009.
· Same-store Physical Occupancy
· At September 30, 2010, ending physical occupancy increased 170 basis points to 77.4% compared to 75.7% at September 30, 2009.
· 3rd quarter - Average physical occupancy was 77.9% for the third quarter of 2010 on the same-store facilities, an increase of 150 basis points compared to 76.4% for the third quarter of 2009.
· Nine months ended - Average physical occupancy was 76.5% for the nine months ended September 30, 2010 on the same-store facilities compared to 76.2% for the nine months ended September 30, 2009.
· Average sequential quarterly occupancy increased 140 basis points (77.9% for the third quarter of 2010 compared to 76.5% for the second quarter of 2010) compared to an increase of 100 basis points in the same period last year (76.4% for the third quarter of 2009 compared to 75.4% for the second quarter of 2009).
· Investment Activity
· Acquisitions — The Company acquired three storage facilities during the quarter for an aggregate investment of $33.4 million.
· Dispositions — The Company sold one asset subsequent to quarter end for $3.1 million.
· Third Party Management
· At September 30, 2010, the Company managed 122 properties totaling 8.1 million square feet. The Company had 6 properties under management as of September 30, 2009.
· 3rd quarter — $1.0 million of management fee revenue was generated during the quarter.
“Our third quarter investment activity reflects the continuing execution of our plan to cycle capital out of lower growth markets into higher growth, high barrier to entry markets that offer the best long-term prospects. We acquired two self-storage assets in the boroughs of New York City and one asset in suburban Dallas,” said Christopher Marr, President and Chief Investment Officer. “These acquisitions were fully funded with available cash and proceeds from our at-the-market equity program, increasing the size and quality of our unencumbered asset pool and modestly deleveraging our balance sheet. We have 9 facilities under contract with a total potential investment of approximately $54 million. Assuming satisfactory completion of due diligence and other closing conditions, the closings of these potential acquisitions will take place prior to year-end resulting in 2010 acquisitions totaling 12 assets for an aggregate investment of $87.5 million.”
Funds from Operations
FFO for the third quarter of 2010 was $13.1 million, compared to $14.4 million for the third quarter of 2009. FFO per share was $0.13 per share for the third quarter of 2010, compared to $0.18 per share for the same quarter of last year. Weighted average common shares and operating partnership units outstanding were 99.6 million for the third quarter of 2010, compared to 81.1 million for the third quarter of 2009.
Operating Results
The Company reported a net loss attributable to the Company of $1.5 million or $0.02 per common share in the third quarter of 2010, compared to a net income attributable to the Company of $6.8 million or $0.09 per common share in the third quarter of 2009. Total revenues increased $2.4 million and total property operating expenses increased $1.5 million in
the third quarter of 2010, compared to the same period in 2009. Increases in total revenues are attributable to increased occupancy levels in the same-store portfolio and revenues generated from our third-party management business during the 2010 period as compared to the 2009 period. Increases in property operating expenses are attributable to increases in advertising and other expenses.
Interest expense decreased approximately $2.4 million in the third quarter of 2010, compared to the third quarter of 2009, primarily resulting from the payoff of $106.7 million of loans during 2010, and lower interest rates on the credit facility during the third quarter of 2010 as compared to the same period in 2009 resulting in an overall decrease in interest expense.
Loan procurement amortization expense increased approximately $1.1 million in the third quarter of 2010, compared to the third quarter of 2009, due to loan procurement cost amortization associated with the $450 million Secured Credit Facility that closed in December of 2009 and the additional $116.1 million of secured property level loans the Company obtained during 2009.
The Company’s 370 owned facilities, containing 23.9 million rentable square feet, had a physical occupancy at September 30, 2010 of 77.5% and an average physical occupancy for the quarter ended September 30, 2010 of 77.9%.
Same-Store Results
The Company’s same-store pool at September 30, 2010 represented 363 facilities containing approximately 23.5 million rentable square feet and included approximately 98.3% of the aggregate rentable square feet of the Company’s 370 owned facilities. These same-store facilities represent approximately 98.6% of property net operating income for the quarter ended September 30, 2010.
The same-store average physical occupancy for the third quarter of 2010 was 77.9% compared to 76.4% for the same quarter of last year. Same-store net rental income for the third quarter of 2010 increased 0.9% over the same period in 2009. Same-store total revenues increased 1.4% and same-store operating expenses increased 2.9% as compared to the third quarter of 2009. Same-store net operating income increased 0.5% in the third quarter of 2010 compared to the same quarter of 2009.
For the nine months ended September 30, 2010, same-store total revenues, operating expenses and net operating income decreased 0.8%, 1.5%, and 0.4%, respectively, as compared to the results for the nine months ended September 30, 2009. Average physical occupancy of the same-store pool for 2010 was 76.5% as compared to 76.2% during 2009. Ending occupancy for our same-store portfolio was 77.4% and 75.7% as of September 30, 2010 and 2009, respectively.
Investment Activity
In July, the Company acquired a self-storage facility located in suburban Dallas, Texas for a total investment of $6.0 million. The facility was 80% physically occupied at closing and was acquired free and clear of any encumbrances. With this acquisition, the Company now owns or operates 17 facilities in the Dallas area.
In September, the Company acquired two self-storage facilities in the boroughs of New York City, New York. The facilities were 84% occupied and were acquired free and clear of encumbrances for a total investment of $27.4 million.
Balance Sheet
On September 29, 2010, the Company announced the closing of an amendment to its $450 million credit facility. The amended credit facility consists of a $200 million unsecured term loan and a $250 million unsecured revolving credit facility. The amended credit facility has a three year term expiring on December 7, 2013. At closing, the $200 million term loan was outstanding and there were no amounts outstanding on the revolver.
The significant changes to the Company’s previous $450 million secured credit facility are as follows:
· The amended facility is an unsecured facility compared to the prior secured facility, resulting in $733 million of unencumbered assets as of September 30, 2010.
· The amended facility pricing is based on 30 day Libor compared to a 1.50% Libor floor in the prior facility.
· The amended facility matures in December, 2013 compared to December, 2012 in the prior facility.
During the nine months ended September 30, 2010, the Company used cash on hand to repay an $83.3 million CMBS loan that was scheduled to mature in May 2010 and $23.4 million of additional loans maturing during the period.
Additionally, during the year, the Company was repaid $20.1 million in notes receivable related to seller financings the Company provided as part of portfolio dispositions in 2009.
Quarterly Dividend
On August 4, 2010, the Company declared a dividend of $0.025 per share. The dividend was paid on October 22, 2010, to shareholders of record on October 7, 2010.
2010 Financial Outlook
“We are increasing our 2010 FFO per share guidance which at the midpoint is now 8.7% higher than the midpoint of our initial 2010 guidance. The increased guidance reflects improved expectations on performance of our core properties, the impact of our property acquisitions to date and the impact of lower borrowing costs on our credit facility as a result of our credit facility amendment. We are improving our same-store guidance for the second consecutive quarter,” said Chief Financial Officer Tim Martin.
The Company is adjusting its previously issued estimates and expects that its fully-diluted FFO per share for 2010 will be between $0.49 and $0.51, and that its fully-diluted net loss per share
for the period will be between $(0.12) and $(0.10). The Company’s estimate is based on the following key assumptions:
· For 2010, the same-store pool consists of 363 assets totaling 23.6 million square feet
· Same-store revenue growth of 0.5% to -0.5% over 2009
· Same-store expense growth of 0.5% to 1.5% over 2009
· Same-store net operating income growth of 0.5% to -0.5% over 2009
· General and administrative expenses of approximately $25.1 million to $25.6 million
· Average LIBOR for the fourth quarter consistent with levels as of September 30, 2010
2010 Full Year Guidance |
| Range or Value |
| ||||||
Earnings (loss) per diluted share allocated to common shareholders |
| $ | (0.12 | ) | to |
| $ | (0.10 | ) |
Plus: real estate depreciation and amortization |
| 0.61 |
|
|
| 0.61 |
| ||
FFO per diluted share |
| $ | 0.49 |
| to |
| $ | 0.51 |
|
The Company estimates that its fully-diluted FFO per share for the quarter ending December 31, 2010 will be between $0.14 and $0.15, and that its fully-diluted net loss per share for the period will be between $(0.01) and $0.00.
4th Quarter 2010 Guidance |
| Range or Value |
| ||||||
Earnings (loss) per diluted share allocated to common shareholders |
| $ | (0.01 | ) | to |
| $ | 0.00 |
|
Plus: real estate depreciation and amortization |
| 0.15 |
|
|
| 0.15 |
| ||
FFO per diluted share |
| $ | 0.14 |
| to |
| $ | 0.15 |
|
Conference Call
Management will host a conference call at 11:00 a.m. ET on Friday, November 5, 2010, to discuss financial results for the three and nine months ended September 30, 2010.
A live webcast of the conference call will be available online from the investor relations page of the Company’s corporate website at www.u-store-it.com. The dial-in numbers are 1-877-317-6789 for domestic callers and +1 412-317-6789 for international callers. After the live webcast, the call will remain available on U-Store-It’s website for thirty days. In addition, a telephonic replay of the call will be available until December 5, 2010. The replay dial-in number is 1-877-344-7529 for domestic callers and +1 412-317-0088 for international callers. The reservation number for both is 445210.
Supplemental operating and financial data as of September 30, 2010 is available on our corporate website under Investor Relations - Financial Information - Financial Reports.
About U-Store-It Trust
U-Store-It Trust is a self-administered and self-managed real estate investment trust. The Company’s self-storage facilities are designed to offer affordable, easily accessible and secure storage space for residential and commercial customers. According to the Self-Storage Almanac, U-Store-It Trust is one of the top four owners and operators of self-storage facilities in the United States.
Non-GAAP Performance Measurements
FFO is a widely used performance measure for real estate companies and is provided here as a supplemental measure of operating performance. The Company calculates FFO in accordance with the best practices described in the April 2002 National Policy Bulletin of the National Association of Real Estate Investment Trusts (the “White Paper”). The White Paper defines FFO as net income (computed in accordance with GAAP), excluding gains (or losses) from sales of property, plus depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures.
Management uses FFO as a key performance indicator in evaluating the operations of the Company’s facilities. Given the nature of its business as a real estate owner and operator, the Company considers FFO a key measure of its operating performance that is not specifically defined by accounting principles generally accepted in the United States. The Company believes that FFO is useful to management and investors as a starting point in measuring its operational performance because it excludes various items included in net income that do not relate to or are not indicative of its operating performance such as gains (or losses) from sales of property and depreciation, which can make periodic and peer analyses of operating performance more difficult. FFO should not be considered as an alternative to net income (determined in accordance with GAAP) as an indicator of the Company’s financial performance, is not an alternative to cash flow from operating activities (determined in accordance with GAAP) as a measure of the Company’s liquidity, and is not indicative of funds available to fund the Company’s cash needs, including its ability to make distributions.
We define net operating income, which we refer to as “NOI,” as total continuing revenues less continuing property operating expenses. NOI also can be calculated by adding back to net income (loss): interest expense on loans, loan procurement amortization expense, acquisition related costs, amounts attributable to noncontrolling interests, other expense, depreciation and amortization expense, general and administrative expense, and deducting from net income: income from discontinued operations, gains on disposition of discontinued operations, other income, and interest income. NOI is not a measure of performance calculated in accordance with GAAP.
Management uses NOI as a measure of operating performance at each of our facilities, and for all of our facilities in the aggregate. NOI should not be considered as a substitute for operating income, net income, cash flows provided by operating, investing and financing activities, or other income statement or cash flow statement data prepared in accordance with GAAP.
Forward-Looking Statements
This presentation, together with other statements and information publicly disseminated by U-Store-It Trust (“we,” “us,” “our” or the “Company”), contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Such statements are based on assumptions and expectations that may not be realized and are inherently subject to risks, uncertainties and other factors, many of which cannot be predicted with accuracy and some of which might not even be anticipated. Although we believe the expectations reflected in these forward-looking statements are based on reasonable assumptions, future events and actual results, performance, transactions or achievements, financial and otherwise, may differ
materially from the results, performance, transactions or achievements expressed or implied by the forward-looking statements. Risks, uncertainties and other factors that might cause such differences, some of which could be material, include, but are not limited to:
· national and local economic, business, real estate and other market conditions;
· the competitive environment in which we operate;
· the execution of our business plan;
· financing risks, including the risk of over-leverage and the corresponding risk of default on our mortgage and other debt and potential inability to refinance existing indebtedness;
· increases in interest rates and operating costs;
· counterparty non-performance related to the use of derivative financial instruments;
· our ability to maintain our status as a real estate investment trust (“REIT”) for federal income tax purposes;
· acquisition and development risks;
· changes in real estate and zoning laws or regulations;
· risks related to natural disasters;
· potential environmental and other liabilities;
· other factors affecting the real estate industry generally or the self-storage industry in particular; and
· other risks identified in our Annual Report on Form 10-K and, from time to time, in other reports we file with the Securities and Exchange Commission (the “SEC”) or in other documents that we publicly disseminate.
We undertake no obligation to publicly update or revise these forward-looking statements, whether as a result of new information, future events or otherwise except as may be required in securities laws.
Contact:
U-Store-It Trust
Timothy M. Martin
Chief Financial Officer
(610) 293-5700
U-STORE-IT TRUST AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
|
| September 30, |
| December 31, |
| ||
|
| 2010 |
| 2009 |
| ||
|
|
|
|
|
| ||
ASSETS |
|
|
|
|
| ||
Storage facilities |
| $ | 1,745,625 |
| $ | 1,774,542 |
|
Less: Accumulated depreciation |
| (326,314 | ) | (344,009 | ) | ||
Storage facilities, net |
| 1,419,311 |
| 1,430,533 |
| ||
Cash and cash equivalents |
| 23,203 |
| 102,768 |
| ||
Restricted cash |
| 15,528 |
| 16,381 |
| ||
Loan procurement costs, net of amortization |
| 17,351 |
| 18,366 |
| ||
Notes receivable |
| — |
| 20,112 |
| ||
Assets held for sale |
| 1,867 |
| — |
| ||
Other assets, net |
| 19,934 |
| 10,710 |
| ||
Total assets |
| $ | 1,497,194 |
| $ | 1,598,870 |
|
|
|
|
|
|
| ||
LIABILITIES AND EQUITY |
|
|
|
|
| ||
|
|
|
|
|
| ||
Unsecured term loan |
| $ | 200,000 |
| $ | — |
|
Secured term loan |
| — |
| 200,000 |
| ||
Mortgage loans and notes payable |
| 456,174 |
| 569,026 |
| ||
Accounts payable, accrued expenses and other liabilities |
| 40,646 |
| 33,767 |
| ||
Distributions payable |
| 2,515 |
| 2,448 |
| ||
Deferred revenue |
| 8,893 |
| 8,449 |
| ||
Security deposits |
| 512 |
| 456 |
| ||
Other liabilities held for sale |
| 22 |
| — |
| ||
Total liabilities |
| 708,762 |
| 814,146 |
| ||
|
|
|
|
|
| ||
Noncontrolling interests in the Operating Partnership |
| 43,871 |
| 45,394 |
| ||
|
|
|
|
|
| ||
Commitments and contingencies |
|
|
|
|
| ||
|
|
|
|
|
| ||
Equity |
|
|
|
|
| ||
Common shares $.01 par value, 200,000,000 shares authorized, 95,435,132 and 92,654,979 shares issued and outstanding at September 30, 2010 and December 31, 2009, respectively |
| 954 |
| 927 |
| ||
Additional paid in capital |
| 998,894 |
| 974,926 |
| ||
Accumulated other comprehensive loss |
| (924 | ) | (874 | ) | ||
Accumulated deficit |
| (296,225 | ) | (279,670 | ) | ||
Total U-Store-It Trust shareholders’ equity |
| 702,699 |
| 695,309 |
| ||
Noncontrolling interest in subsidiaries |
| 41,862 |
| 44,021 |
| ||
Total equity |
| 744,561 |
| 739,330 |
| ||
Total liabilities and equity |
| $ | 1,497,194 |
| $ | 1,598,870 |
|
U-STORE-IT TRUST AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share data)
|
| Three Months Ended |
| Nine Months Ended |
| ||||||||
|
| 2010 |
| 2009 |
| 2010 |
| 2009 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
REVENUES |
|
|
|
|
|
|
|
|
| ||||
Rental income |
| $ | 50,809 |
| $ | 50,269 |
| $ | 149,080 |
| $ | 151,008 |
|
Other property related income |
| 5,155 |
| 4,347 |
| 13,919 |
| 12,510 |
| ||||
Property management fee income |
| 1,048 |
| 12 |
| 1,682 |
| 140 |
| ||||
Total revenues |
| 57,012 |
| 54,628 |
| 164,681 |
| 163,658 |
| ||||
OPERATING EXPENSES |
|
|
|
|
|
|
|
|
| ||||
Property operating expenses |
| 24,602 |
| 23,065 |
| 71,921 |
| 71,509 |
| ||||
Depreciation and amortization |
| 15,557 |
| 17,844 |
| 48,258 |
| 53,385 |
| ||||
General and administrative |
| 6,597 |
| 5,556 |
| 19,308 |
| 16,658 |
| ||||
Total operating expenses |
| 46,756 |
| 46,465 |
| 139,487 |
| 141,552 |
| ||||
OPERATING INCOME |
| 10,256 |
| 8,163 |
| 25,194 |
| 22,106 |
| ||||
OTHER INCOME (EXPENSE) |
|
|
|
|
|
|
|
|
| ||||
Interest: |
|
|
|
|
|
|
|
|
| ||||
Interest expense on loans |
| (9,648 | ) | (12,008 | ) | (29,324 | ) | (34,834 | ) | ||||
Loan procurement amortization expense |
| (1,559 | ) | (489 | ) | (4,718 | ) | (1,517 | ) | ||||
Interest income |
| 19 |
| 150 |
| 616 |
| 249 |
| ||||
Acquisition related costs |
| (165 | ) | — |
| (465 | ) | — |
| ||||
Other |
| (67 | ) | — |
| (142 | ) | (13 | ) | ||||
Total other expense |
| (11,420 | ) | (12,347 | ) | (34,033 | ) | (36,115 | ) | ||||
|
|
|
|
|
|
|
|
|
| ||||
LOSS FROM CONTINUING OPERATIONS |
| (1,164 | ) | (4,184 | ) | (8,839 | ) | (14,009 | ) | ||||
|
|
|
|
|
|
|
|
|
| ||||
DISCONTINUED OPERATIONS |
|
|
|
|
|
|
|
|
| ||||
Income from discontinued operations |
| 49 |
| 777 |
| 143 |
| 2,610 |
| ||||
Net gain on disposition of discontinued operations |
| — |
| 10,910 |
| — |
| 13,530 |
| ||||
Total discontinued operations |
| 49 |
| 11,687 |
| 143 |
| 16,140 |
| ||||
NET (LOSS) INCOME |
| (1,115 | ) | 7,503 |
| (8,696 | ) | 2,131 |
| ||||
NET LOSS (INCOME) ATTRIBUTABLE TO NONCONTROLLING INTERESTS |
|
|
|
|
|
|
|
|
| ||||
Noncontrolling interests in the Operating Partnership |
| 76 |
| (512 | ) | 487 |
| (93 | ) | ||||
Noncontrolling interest in subsidiaries |
| (441 | ) | (173 | ) | (1,267 | ) | (173 | ) | ||||
NET (LOSS) INCOME ATTRIBUTABLE TO THE COMPANY |
| $ | (1,480 | ) | $ | 6,818 |
| $ | (9,476 | ) | $ | 1,865 |
|
|
|
|
|
|
|
|
|
|
| ||||
Basic and diluted loss per share from continuing operations attributable to common shareholders |
| $ | (0.02 | ) | $ | (0.05 | ) | $ | (0.10 | ) | $ | (0.21 | ) |
Basic and diluted earnings per share from discontinued operations attributable to common shareholders |
| $ | — |
| $ | 0.14 |
| $ | — |
| $ | 0.24 |
|
Basic and diluted (loss) earnings per share attributable to common shareholders |
| $ | (0.02 | ) | $ | 0.09 |
| $ | (0.10 | ) | $ | 0.03 |
|
|
|
|
|
|
|
|
|
|
| ||||
Weighted-average basic and diluted shares outstanding |
| 93,724 |
| 75,248 |
| 93,154 |
| 63,764 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
AMOUNTS ATTRIBUTABLE TO THE COMPANY’S COMMON SHAREHOLDERS: |
|
|
|
|
|
|
|
|
| ||||
Loss from continuing operations |
| $ | (1,527 | ) | $ | (4,098 | ) | $ | (9,613 | ) | $ | (13,210 | ) |
Total discontinued operations |
| 47 |
| 10,916 |
| 137 |
| 15,075 |
| ||||
Net (loss) income |
| $ | (1,480 | ) | $ | 6,818 |
| $ | (9,476 | ) | $ | 1,865 |
|
Same-store facility results (363 facilities)
(in thousands, except percentage and per square foot data)
|
| Three months ended |
|
|
| ||||
|
| September 30, |
| September 30, |
| Percent |
| ||
|
| 2010 |
| 2009 |
| Change |
| ||
|
|
|
|
|
|
|
| ||
REVENUES |
|
|
|
|
|
|
| ||
Net rental income |
| $ | 50,312 |
| $ | 49,885 |
| 0.9 | % |
Other property related income |
| 4,577 |
| 4,224 |
| 8.4 | % | ||
Total revenues |
| 54,889 |
| 54,109 |
| 1.4 | % | ||
|
|
|
|
|
|
|
| ||
OPERATING EXPENSES |
|
|
|
|
|
|
| ||
Property taxes |
| 6,566 |
| 7,018 |
| -6.4 | % | ||
Personnel expense |
| 6,163 |
| 6,156 |
| 0.1 | % | ||
Advertising |
| 1,719 |
| 919 |
| 87.1 | % | ||
Repair and maintenance |
| 779 |
| 789 |
| -1.3 | % | ||
Utilities |
| 2,576 |
| 2,517 |
| 2.3 | % | ||
Property insurance |
| 769 |
| 705 |
| 9.1 | % | ||
Other expenses |
| 3,038 |
| 2,907 |
| 4.5 | % | ||
|
|
|
|
|
|
|
| ||
Total operating expenses |
| 21,610 |
| 21,011 |
| 2.9 | % | ||
|
|
|
|
|
|
|
| ||
Net operating income (1) |
| $ | 33,279 |
| $ | 33,098 |
| 0.5 | % |
|
|
|
|
|
|
|
| ||
Gross margin |
| 60.6 | % | 61.2 | % |
|
| ||
|
|
|
|
|
|
|
| ||
Period Average Occupancy (2) |
| 77.9 | % | 76.4 | % |
|
| ||
|
|
|
|
|
|
|
| ||
Period End Occupancy (3) |
| 77.4 | % | 75.7 | % |
|
| ||
|
|
|
|
|
|
|
| ||
Total rentable square feet |
| 23,526 |
| 23,526 |
|
|
| ||
|
|
|
|
|
|
|
| ||
Realized annual rent per occupied square foot (4) |
| $ | 10.98 |
| $ | 11.10 |
| -1.1 | % |
|
|
|
|
|
|
|
| ||
Scheduled annual rent per square foot (5) |
| $ | 11.81 |
| $ | 11.62 |
| 1.7 | % |
|
|
|
|
|
|
|
| ||
Reconciliation of Same-Store Net Operating Income to Operating Income |
|
|
|
|
|
|
| ||
Same-store net operating income (1) |
| $ | 33,279 |
| $ | 33,098 |
|
|
|
Non same-store net operating income (1) |
| 140 |
| 191 |
|
|
| ||
Indirect property overhead (6) |
| (1,009 | ) | (1,726 | ) |
|
| ||
Depreciation and amortization |
| (15,557 | ) | (17,844 | ) |
|
| ||
General and administrative expense |
| (6,597 | ) | (5,556 | ) |
|
| ||
|
|
|
|
|
|
|
| ||
Operating Income |
| $ | 10,256 |
| $ | 8,163 |
|
|
|
(1) | Net operating income (NOI) is a non-GAAP (generally accepted accounting principles) financial measure that excludes the impact of depreciation and general & administrative expense. |
(2) | Square feet occupancy represents the weighted average occupancy for the period. |
(3) | Represents occupancy at September 30 of the respective year. |
(4) | Realized annual rent per occupied square foot is computed by dividing rental income by the weighted average occupied square feet for the period. |
(5) | Scheduled annual rent per square foot represents annualized contractual rents per available square foot for the period. |
(6) | Includes property management fee income earned in conjunction with managed properties. |
Same-store facility results (363 facilities)
(in thousands, except percentage and per square foot data)
|
| Nine months ended |
|
|
| ||||
|
| September 30, |
| September 30, |
| Percent |
| ||
|
| 2010 |
| 2009 |
| Change |
| ||
|
|
|
|
|
|
|
| ||
REVENUES |
|
|
|
|
|
|
| ||
Net rental income |
| $ | 148,107 |
| $ | 150,163 |
| -1.4 | % |
Other property related income |
| 12,968 |
| 12,225 |
| 6.1 | % | ||
Total revenues |
| 161,075 |
| 162,388 |
| -0.8 | % | ||
|
|
|
|
|
|
|
| ||
OPERATING EXPENSES |
|
|
|
|
|
|
| ||
Property taxes |
| 20,507 |
| 21,585 |
| -5.0 | % | ||
Personnel expense |
| 17,830 |
| 17,984 |
| -0.9 | % | ||
Advertising |
| 5,200 |
| 4,847 |
| 7.3 | % | ||
Repair and maintenance |
| 2,081 |
| 2,173 |
| -4.2 | % | ||
Utilities |
| 7,082 |
| 7,417 |
| -4.5 | % | ||
Property insurance |
| 2,307 |
| 1,992 |
| 15.8 | % | ||
Other expenses |
| 9,342 |
| 9,314 |
| 0.3 | % | ||
|
|
|
|
|
|
|
| ||
Total operating expenses |
| 64,349 |
| 65,312 |
| -1.5 | % | ||
|
|
|
|
|
|
|
| ||
Net operating income (1) |
| $ | 96,726 |
| $ | 97,076 |
| -0.4 | % |
|
|
|
|
|
|
|
| ||
Gross margin |
| 60.1 | % | 59.8 | % |
|
| ||
|
|
|
|
|
|
|
| ||
Period Average Occupancy (2) |
| 76.5 | % | 76.2 | % |
|
| ||
|
|
|
|
|
|
|
| ||
Period End Occupancy (3) |
| 77.4 | % | 75.7 | % |
|
| ||
|
|
|
|
|
|
|
| ||
Total rentable square feet |
| 23,526 |
| 23,526 |
|
|
| ||
|
|
|
|
|
|
|
| ||
Realized annual rent per occupied square foot (4) |
| $ | 10.97 |
| $ | 11.17 |
| -1.8 | % |
|
|
|
|
|
|
|
| ||
Scheduled annual rent per square foot (5) |
| $ | 11.69 |
| $ | 11.85 |
| -1.4 | % |
|
|
|
|
|
|
|
| ||
Reconciliation of Same-Store Net Operating Income to Operating Income |
|
|
|
|
|
|
| ||
Same-store net operating income (1) |
| $ | 96,726 |
| $ | 97,076 |
|
|
|
Non same-store net operating income (1) |
| 242 |
| 427 |
|
|
| ||
Indirect property overhead (6) |
| (4,208 | ) | (5,354 | ) |
|
| ||
Depreciation and amortization |
| (48,258 | ) | (53,385 | ) |
|
| ||
General and administrative expense |
| (19,308 | ) | (16,658 | ) |
|
| ||
|
|
|
|
|
|
|
| ||
Operating Income |
| $ | 25,194 |
| $ | 22,106 |
|
|
|
(1) | Net operating income (NOI) is a non-GAAP (generally accepted accounting principles) financial measure that excludes the impact of depreciation and general & administrative expense. |
(2) | Square feet occupancy represents the weighted average occupancy for the period. |
(3) | Represents occupancy at September 30 of the respective year. |
(4) | Realized annual rent per occupied square foot is computed by dividing rental income by the weighted average occupied square feet for the period. |
(5) | Scheduled annual rent per square foot represents annualized contractual rents per available square foot for the period. |
(6) | Includes property management fee income earned in conjunction with managed properties. |
Non-GAAP Measure — Computation of Funds From Operations
(in thousands, except per share data)
|
| Three months ended |
| ||||
|
| September 30, |
| September 30, |
| ||
|
| 2010 |
| 2009 |
| ||
|
|
|
|
|
| ||
Net (loss) income |
| $ | (1,115 | ) | $ | 7,503 |
|
|
|
|
|
|
| ||
Add (deduct): |
|
|
|
|
| ||
Real estate depreciation and amortization |
| 15,239 |
| 18,342 |
| ||
Gains on sale of real estate |
| — |
| (10,910 | ) | ||
Noncontrolling interests in subsidiaries share of FFO |
| (1,003 | ) | (577 | ) | ||
|
|
|
|
|
| ||
FFO |
| $ | 13,122 |
| $ | 14,358 |
|
|
|
|
|
|
| ||
(Loss) earnings per share attributable to common shareholders - fully diluted |
| $ | (0.02 | ) | $ | 0.09 |
|
FFO per share and unit - fully diluted |
| $ | 0.13 |
| $ | 0.18 |
|
|
|
|
|
|
| ||
Weighted-average basic and diluted shares outstanding |
| 93,724 |
| 75,248 |
| ||
Weighted-average diluted shares and units outstanding |
| 99,620 |
| 81,063 |
| ||
|
|
|
|
|
| ||
Dividend per common share and unit |
| $ | 0.025 |
| $ | 0.025 |
|
Payout ratio of FFO (Dividend per share divided by FFO per share) |
| 19 | % | 14 | % |