Q3 2018 REIT Earnings Released
posted on 11/2/2018 6:24:00 AM
The followings are excerpts from the earnings calls of the five publicly traded self storage REITs. FFO, Funds from Operations, is a term defined by the National Association of Real Estate Investment Trusts and generally represents net income before depreciation, gains and losses and impairment charges with respect to real estate assets. All of the publicly traded REITs announced an increase in FFO over the 3rd quarter of 2017.
National Storage Affiliates
National Storage Affiliates was the last storage REIT to announce earnings this season, which occurred after market close Nov. 1, with an earnings call Nov. 2. NSA’s FFO for the 3rd quarter was $.36 per share, a 9.1 percent increase over the third quarter of 2017. Same store net operating income was up 5 percent.
In the 3rd quarter NSA added its 9th Participating Regional Operator, Southern Self Storage of Palm Beach Gardens, Florida. NSA also closed its $1.3 billion acquisition of Simply Self Storage.
Life Storage participated in an earnings call with analysts on Nov. 1. LSI’s funds from operations was $1.45 per share for the quarter, an increase of 4.3 percent over 3rd quarter of 2017.
Leadership reported that the following markets were most impacted by new supply: San Antonio, Dallas, Austin, Charlotte, Raleigh, Miami and Phoenix.
Life Storage expects to have its Rent Now online rental portal available for all 750 stores by mid-2019.
Extra Space Storage
Extra Space Storage participated in an earnings call on Oct. 31. FFO for the 3rd quarter was $1.20 per share, representing a 6.2 percent increase over the same quarter in 2017.
Extra Space achieved occupancy of 93.9 percent, which was 20 basis points higher than in 2017.
The company has added 140 new stores through the third quarter of 2018.
Public Storage participated in an earnings call on Oct. 31.
FFO was $2.70 per share, up from $2.61 in the 3rd quarter of 2017.
Public Storage’s European affiliate, Shurgard, completed its initial public offering in the 3rd quarter. Public Storage has had that investment since 2006.
CubeSmart Self Storage
CubeSmart Self Storage was the first of the self storage public REITS to participate in an earnings call in the 3rd quarter, releasing results Oct. 26.
FFO was $.43 for the 3rd quarter, up from $.42 in the same quarter a year ago.
CubeSmart projects its top 12 metro markets will see a decline in delivery of new supply in 2019 compared to 2018 or 2017, which bodes well for same-store revenue.