Sovran Self Storage Reports Third Quarter Results; Same Store Revenues Increase 7.3%; Raises Guidance

Business Wire

BUFFALO, N.Y.--(BUSINESS WIRE)--

Sovran Self Storage, Inc. (SSS), a self storage real estate investment trust (REIT), reported operating results for the quarter ended September 30, 2013.

Net income available to common shareholders for the third quarter of 2013 was $19.7 million or $0.62 per fully diluted common share. For the same period in 2012, net income available to common shareholders was $18.8 million, or $0.63 per fully diluted common share.

Funds from operations (FFO) for the quarter were $0.98 per fully diluted common share compared to $0.85 for the same period last year. The Company incurred acquisition costs of $0.8 million in the third quarter of 2013; in the third quarter of 2012, it incurred acquisition costs of $1.1 million in connection with property acquisitions. Absent these acquisition charges, FFO per share was $1.01 and $0.88 for the third quarter of 2013 and 2012, respectively.

Continuing occupancy growth and higher net rental rates contributed to the increase in FFO for the third quarter of 2013.

David Rogers, the Company’s CEO, commented, “The strong start to our leasing season continued through the summer and we enjoyed another remarkable quarter. Our marketing, sales, and revenue management platforms have delivered exceptional top line growth and, with expenses in check, we’re achieving our best ever operating results.”

OPERATIONS:

Revenues for the 362 stores wholly owned by the Company for the entire quarter of each year increased 7.3% from those of the third quarter of 2012, the result of a 250 basis point increase in average occupancy to 90.9%, increased rental rates and strong growth in insurance commissions.

Same store operating expenses increased 3.0% for the third quarter of 2013 compared to the prior year period, mainly as a result of increased insurance costs and property taxes.

Consequently, same store net operating income increased 9.3% this period over the third quarter of 2012.

Total revenues increased 14.9% over last year’s third quarter, while operating costs increased 13.9%, resulting in an NOI (3) increase of 15.4%. Overall occupancy averaged 89.9% for the period and rental rates improved 3.9% to an average of $11.21 per sq. ft.

General and administrative expenses grew by approximately $0.8 million over the same period in 2012, primarily due to increased salaries and internet advertising associated with the net 23 stores added to the Company’s platform since July 1 of last year.

During the third quarter of 2013, the Company experienced positive same store revenue growth in every state in which it operates. The stores with the strongest revenue impact include those in Texas, Florida, New York and North Carolina.

PROPERTIES:

During the quarter, the Company acquired three properties for a total of $27.9 million. The facilities are all located in markets where the Company already has a presence; two in Long Island, New York, and one in Colorado Springs, Colorado.

As previously announced and subsequent to the end of the quarter, the Company entered into lease agreements to rebrand and operate four self storage facilities formerly known as “Westy Self Storage” as Uncle Bob’s Self Storage. The facilities are located in Connecticut and Long Island, NY – both markets where the Company already has a presence. The 15 year leases were negotiated in an off–market transaction and provide the Company with an option to purchase the four stores for an aggregate of $120 million during a fixed period of time between February, 2015 and September, 2016. The Company is required to make annual lease payments of $6 million, with a provision for annual increases of 4% per year.

The Company currently has two properties under contract for a total of $14.8 million. One of the facilities is located in Toms River, NJ and the other in Palm Beach, FL; both are markets in which the Company already has an established presence. Providing the properties pass due diligence, the Company expects to acquire these facilities during the fourth quarter of 2013.

Also subsequent to the end of the quarter, the Company sold one property located in Dayton, OH for total net proceeds of $3.2 million, recognizing a gain of $300,000 on the transaction.

COMMON STOCK DIVIDEND:

Subsequent to quarter end, the Company announced a quarterly dividend of $0.53 per share or $2.12 annualized.

CAPITAL TRANSACTIONS:

Illustrated below are key financial ratios at September 30, 2013:

--   Debt to Enterprise Value (at $75.68/share)       20.5%
-- Debt to Book Cost of Storage Facilities 34.5%
-- Debt to EBITDA Ratio 3.93x
-- Debt Service Coverage 5.07x

At September 30, 2013, the Company had approximately $9.7 million of cash on hand, and $126 million available on its line of credit (without considering the additional $75 million available under the expansion feature).

The Company issued 444,910 shares of its common stock via its previously announced ATM program during the quarter at an average price of $72.11 per share, resulting in net proceeds of $31.6 million after issuance costs. The Company used the proceeds to fund the purchase of the aforementioned properties. Also in July, the Company issued 23,712 shares at an average price of $69.38 through its Dividend Reinvestment Plan.

As previously announced, the Company refinanced its bank term loan and line of credit totaling $500 million. As part of the refinancing, the Company secured a $100 million term note with a delayed draw feature that was used to fund the $100 million term notes that matured September, 2013. The Company expects full year interest expense savings of approximately $4.1 million commencing in 2014 as a result of the refinancing.

YEAR 2013 EARNINGS GUIDANCE:

Management is encouraged by strong customer traffic and increasing rental rates in most markets. The following assumptions covering operations have been utilized in formulating updated guidance for the fourth quarter and full year 2013:

Same Store

Projected Increases Over 2012

4Q 2013

 

Full Year 2013

 
Revenue 7.0 – 8.0% 7.5 – 8.5%
 
Operating Cost (excluding property taxes) 2.0 – 3.0% 2.5 – 3.5%
Property Taxes

8.0 – 9.0%

4.5 – 5.5%

Total Operating Expenses 3.5 – 4.5% 3.0 – 4.0%
 
Net Operating Income 8.0 – 9.0% 9.0 – 10.0%

The Company intends to spend up to $25 million on its expansion and enhancement program. It has also budgeted $15 million to provide for recurring capitalized expenditures including roofing, paving, and office renovations.

Prospective purchases of properties made for the remainder of 2013 are not expected to significantly impact guidance inasmuch as the Company expects to invest in both low occupancy turn-around opportunities as well as stabilized properties. Accordingly, neither the net operating income nor the acquisition costs relating to any acquisitions that may be made in the last quarter of 2013 are included in guidance.

General and administrative expenses are expected to increase to approximately $36 million due to the need for additional personnel required for recent acquisitions, income taxes on its taxable REIT subsidiaries, and the Company’s plans to continue expanding its internet marketing presence and revenue management program.

At September 30, 2013, all but $49 million of the Company’s debt is either fixed rate or covered by rate swap contracts that essentially fix the rate. Subsequent borrowings that may occur will be pursuant to the Company’s Line of Credit agreement at a floating rate of LIBOR plus 1.5%.

At September 30, 2013, the Company had 32.0 million shares of common stock outstanding and 0.2 million Operating Partnership Units outstanding.

As a result of the above assumptions, management expects funds from operations for the full year 2013 to be approximately $3.77 to $3.79 per share, and between $0.98 and $1.00 per share for the fourth quarter of 2013.

FORWARD LOOKING STATEMENTS:

When used within this news release, the words “intends,” “believes,” “expects,” “anticipates,” and similar expressions are intended to identify “forward looking statements” within the meaning of that term in Section 27A of the Securities Act of 1933, and in Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the Company to be materially different from those expressed or implied by such forward looking statements. Such factors include, but are not limited to, the effect of competition from new self storage facilities, which could cause rents and occupancy rates to decline; the Company’s ability to evaluate, finance and integrate acquired businesses into the Company’s existing business and operations; the Company’s existing indebtedness may mature in an unfavorable credit environment, preventing refinancing or forcing refinancing of the indebtedness on terms that are not as favorable as the existing terms; interest rates may fluctuate, impacting costs associated with the Company’s outstanding floating rate debt; the Company’s ability to comply with debt covenants; the future ratings on the Company’s debt instruments; the regional concentration of the Company’s business may subject it to economic downturns in the states of Florida and Texas; the Company’s ability to effectively compete in the industries in which it does business; the Company’s reliance on its call center; the Company’s cash flow may be insufficient to meet required payments of principal, interest and dividends; and tax law changes which may change the taxability of future income.

CONFERENCE CALL:

Sovran Self Storage, Inc. will hold its Third Quarter Earnings Release Conference Call at 9:00 a.m. Eastern Time on Wednesday, November 6, 2013. To access the conference call, dial 877.407.0778 (domestic), or 201.689.8565 (international). Management will accept questions from registered financial analysts after prepared remarks; all others are encouraged to listen to the call via webcast by accessing the investor relations tab of the Company’s website at www.unclebobs.com/company/.

The webcast will be archived for a period of 90 days; a telephone replay will also be available for 72 hours by calling 877.660.6853 and entering conference ID 100483.

Sovran Self Storage, Inc. is a self-administered and self-managed equity REIT that is in the business of acquiring and managing self storage facilities. The Company operates 475 self storage facilities in 25 states under the name “Uncle Bob’s Self Storage”®. For more information, visit www.unclebobs.com, like us on Facebook, or follow us on Twitter.

SOVRAN SELF STORAGE, INC.      
BALANCE SHEET DATA
 
(unaudited)
September 30, December 31,
(dollars in thousands) 2013     2012
Assets
Investment in storage facilities:
Land $ 306,879 $ 299,544
Building, equipment and construction in progress   1,513,232     1,456,410  
1,820,111 1,755,954
Less: accumulated depreciation   (360,061 )   (328,952 )
Investment in storage facilities, net 1,460,050 1,427,002
Cash and cash equivalents 9,662 7,255
Accounts receivable 3,583 3,450
Receivable from joint venture 782 856
Investment in joint venture 37,841 34,255
Prepaid expenses 5,594 4,947
Intangible asset - in-place customer leases (net of accumulated
amortization of $12,910 in 2013 and $10,337 in 2012) 983 2,891
Fair value of interest rate swap agreements 166 -
Other assets   4,601     3,785  
Total Assets $ 1,523,262   $ 1,484,441  
 
Liabilities
Line of credit $ 49,000 $ 105,000
Term notes 575,000 575,000
Accounts payable and accrued liabilities 33,263 36,667
Deferred revenue 6,919 6,416
Fair value of interest rate swap agreements 10,524 15,707
Mortgages payable   3,242     4,251  
Total Liabilities 677,948 743,041
 
Noncontrolling redeemable Operating Partnership Units at redemption value 14,916 12,670
 
Equity
Common stock 331 316
Additional paid-in capital 1,037,016 943,604
Accumulated deficit (169,721 ) (172,773 )
Accumulated other comprehensive loss (10,053 ) (15,242 )
Treasury stock at cost   (27,175 )   (27,175 )
Total Shareholders' Equity   830,398     728,730  
Total Liabilities and Equity $ 1,523,262   $ 1,484,441  
CONSOLIDATED STATEMENTS OF OPERATIONS      
(unaudited)
July 1, 2013 July 1, 2012
to to
(dollars in thousands, except share data) September 30, 2013     September 30, 2012
 
Revenues
Rental income $ 65,806 $ 57,574
Other operating income 4,070 3,291
Management fee income   1,106   909
Total operating revenues 70,982 61,774
 
Expenses
Property operations and maintenance 15,720 14,319
Real estate taxes 6,994 5,629
General and administrative 8,965 8,172
Acquisition related costs 776 1,075
Depreciation and amortization 10,584 9,449
Amortization of in-place customer leases   797   978
Total operating expenses   43,836   39,622
 
Income from operations 27,146 22,152
 
Other income (expense)
Interest expense (A) (7,923) (8,350)
Interest income 1 -
Equity in income of joint ventures   575   335
 
Income from continuing operations 19,799 14,137
Income from discontinued operations (including gain on sale of $4.5 million in 2012)   -   4,821
Net income 19,799 18,958
Net income attributable to noncontrolling interests   (124)   (151)
Net income attributable to common shareholders $ 19,675 $ 18,807
 
Earnings per common share attributable to common shareholders - basic
Continuing operations $ 0.63 $ 0.48
Discontinued operations $ - $ 0.16
Earnings per share - basic $ 0.63 $ 0.64
 
Earnings per common share attributable to common shareholders - diluted
Continuing operations $ 0.62 $ 0.47
Discontinued operations $ - $ 0.16
Earnings per share - diluted $ 0.62 $ 0.63
 
Common shares used in basic
earnings per share calculation 31,469,026 29,474,866
 
Common shares used in diluted
earnings per share calculation 31,625,635 29,624,311
 
Dividends declared per common share $ 0.5300 $ 0.4500
 
 
(A) Interest expense for the three months ending September 30 consists of the following
Interest expense $ 7,706 $ 8,141
Amortization of deferred financing fees   217   209
Total interest expense $ 7,923 $ 8,350
CONSOLIDATED STATEMENTS OF OPERATIONS      
(unaudited)
January 1, 2013 January 1, 2012
to to
(dollars in thousands, except share data) September 30, 2013     September 30, 2012
 
Revenues
Rental income $ 188,402 $ 161,857
Other operating income 11,388 9,288
Management fee income 3,142 2,582
Acquisition fee income   -     148  
Total operating revenues 202,932 173,875
 
Expenses
Property operations and maintenance 45,738 40,993
Real estate taxes 19,858 16,635
General and administrative 26,745 23,707
Acquisition related costs 1,263 2,382
Depreciation and amortization 31,436 27,661
Amortization of in-place customer leases   2,682     2,800  
Total operating expenses   127,722     114,178  
 
Income from operations 75,210 59,697
 
Other income (expense)
Interest expense (B) (24,827 ) (24,914 )
Interest income 2 3
Gain on sale of real estate 421 -
Equity in income of joint ventures   1,417     608  
 
Income from continuing operations 52,223 35,394
Income from discontinued operations (including gain on sale of $4.5 million in 2012)   -     6,693  
Net income 52,223 42,087
Net income attributable to noncontrolling interests   (331 )   (421 )
Net income attributable to common shareholders $ 51,892   $ 41,666  
 
Earnings per common share attributable to common shareholders - basic
Continuing operations $ 1.67 $ 1.20
Discontinued operations $ -   $ 0.23  
Earnings per share - basic $ 1.67   $ 1.43  
 
Earnings per common share attributable to common shareholders - diluted
Continuing operations $ 1.66 $ 1.20
Discontinued operations $ -   $ 0.23  
Earnings per share - diluted $ 1.66   $ 1.43  
 
Common shares used in basic
earnings per share calculation 31,077,910 29,047,998
 
Common shares used in diluted
earnings per share calculation 31,235,049 29,167,681
 
Dividends declared per common share $ 1.4900   $ 1.3500  
 
 
(B) Interest expense for the nine months ending September 30 consists of the following
Interest expense $ 24,187 $ 24,287
Amortization of deferred financing fees   640     627  
Total interest expense $ 24,827   $ 24,914  
COMPUTATION OF FUNDS FROM OPERATIONS (FFO) (1) - (unaudited)
     
July 1, 2013 July 1, 2012
to to
(dollars in thousands, except share data) September 30, 2013     September 30, 2012
 
Net income attributable to common shareholders $ 19,675 $ 18,807
Net income attributable to noncontrolling interests 124 151
Depreciation of real estate and amortization of intangible
assets exclusive of deferred financing fees 11,160 10,329
Depreciation of real estate included in discontinued operations - 84
Depreciation and amortization from unconsolidated joint ventures 373 386
Gain on sale of real estate - (4,498 )
Funds from operations allocable to noncontrolling
interest in Operating Partnership   (196 )   (201 )
Funds from operations available to common shareholders   31,136     25,058  
FFO per share - diluted $ 0.98 $ 0.85
 
Non-recurring Adjustments to FFO
Acquisition costs expensed 776 1,075
Funds from operations resulting from non-recurring items allocable to noncontrolling
interest in Operating Partnership   (5 )   (9 )
Adjusted funds from operations available to common shareholders   31,907     26,124  
Adjusted FFO per share - diluted $ 1.01 $ 0.88
 
Common shares - diluted 31,625,635 29,624,311
 
 
January 1, 2013 January 1, 2012
to to
(dollars in thousands, except share data) September 30, 2013     September 30, 2012
 
Net income attributable to common shareholders $ 51,892 $ 41,666
Net income attributable to noncontrolling interests 331 421
Depreciation of real estate and amortization of intangible
assets exclusive of deferred financing fees 33,477 30,178
Depreciation of real estate included in discontinued operations - 787
Depreciation and amortization from unconsolidated joint ventures 1,119 1,205
Gain on sale of real estate (421 ) (4,498 )
Funds from operations allocable to noncontrolling
interest in Operating Partnership   (547 )   (721 )
Funds from operations available to common shareholders   85,851     69,038  
FFO per share - diluted $ 2.74 $ 2.37
 
Non-recurring Adjustments to FFO
Acquisition costs expensed 1,263 2,382
Company's share of acquisition costs expensed by Sovran HHF Storage Holdings II - 161
Acquisition fee income from Sovran HHF Storage Holdings II - (148 )
Funds from operations resulting from non-recurring items allocable to noncontrolling
interest in Operating Partnership   (8 )   (22 )
Adjusted funds from operations available to common shareholders   87,106     71,411  
Adjusted FFO per share - diluted $ 2.79 $ 2.45
 
Common shares - diluted 31,235,049 29,167,681
(1) We believe that Funds from Operations (“FFO”) provides relevant and meaningful information about our operating performance that is necessary, along with net earnings and cash flows, for an understanding of our operating results. FFO adds back historical cost depreciation, which assumes the value of real estate assets diminishes predictably in the future. In fact, real estate asset values increase or decrease with market conditions. Consequently, we believe FFO is a useful supplemental measure in evaluating our operating performance by disregarding (or adding back) historical cost depreciation.
 
Funds from operations is defined by the National Association of Real Estate Investment Trusts, Inc. (“NAREIT”) as net income available to common shareholders computed in accordance with generally accepted accounting principles (“GAAP”), excluding gains or losses on sales of properties, plus impairment of real estate assets, plus depreciation and amortization and after adjustments to record unconsolidated partnerships and joint ventures on the same basis. We believe that to further understand our performance, FFO should be compared with our reported net income and cash flows in accordance with GAAP, as presented in our consolidated financial statements.
 
Our computation of FFO may not be comparable to FFO reported by other REITs or real estate companies that do not define the term in accordance with the current NAREIT definition or that interpret the current NAREIT definition differently. FFO does not represent cash generated from operating activities determined in accordance with GAAP, and should not be considered as an alternative to net income (determined in accordance with GAAP) as an indication of our performance, as an alternative to net cash flows from operating activities (determined in accordance with GAAP) as a measure of our liquidity, or as an indicator of our ability to make cash distributions.
QUARTERLY SAME STORE DATA (2) *   July 1, 2013   July 1, 2012    
to to Percentage
(dollars in thousands) September 30, 2013     September 30, 2012   Change     Change
 
Revenues:
Rental income $ 59,672 $ 55,778 $ 3,894 7.0 %
Tenant insurance commissions 1,882 1,517 365 24.1 %
Other operating income   1,286     1,287     (1 ) -0.1 %
Total operating revenues 62,840 58,582 4,258 7.3 %
 
Expenses:
Payroll and benefits 5,725 5,603 122 2.2 %
Real estate taxes 5,724 5,454 270 5.0 %
Utilities 2,727 2,753 (26 ) -0.9 %
Repairs and maintenance 2,052 2,038 14 0.7 %
Office and other operating expense 2,298 2,154 144 6.7 %
Insurance 987 883 104 11.8 %
Advertising & yellow pages   354     397     (43 ) -10.8 %
Total operating expenses   19,867     19,282     585   3.0 %
 
Net operating income (3) $ 42,973   $ 39,300   $ 3,673   9.3 %
 
 
QTD Same store move ins 39,182 41,651 (2,469 )
 
QTD Same store move outs 43,675 43,066 609
 
 
(2) Includes the 362 stores owned and/or managed by the Company for the entire periods presented that are consolidated in our financial statements. Does not include unconsolidated joint ventures or other stores managed by the Company.
 
(3) Net operating income or "NOI" is a non-GAAP (generally accepted accounting principles) financial measure that we define as total continuing revenues less continuing property operating expenses. NOI also can be calculated by adding back to net income: interest expense, impairment and casualty losses, depreciation and amortization expense, acquisition related costs, general and administrative expense, and deducting from net income: income from discontinued operations, interest income, gain on sale of real estate, and equity in income of joint ventures. We believe that NOI is a meaningful measure of operating performance, because we utilize NOI in making decisions with respect to capital allocations, in determining current property values, and comparing period-to-period and market-to-market property operating results. NOI should be considered in addition to, but not as a substitute for, other measures of financial performance reported in accordance with GAAP, such as total revenues, operating income and net income.
 
* See exhibit A for supplemental quarterly same store data.
 
 
YEAR TO DATE SAME STORE DATA (2) * January 1, 2013 January 1, 2012
to to Percentage
(dollars in thousands) September 30, 2013     September 30, 2012   Change     Change
 
Revenues:
Rental income $ 171,868 $ 159,441 $ 12,427 7.8 %
Tenant insurance commissions 5,318 4,161 1,157 27.8 %
Other operating income   3,778     3,845     (67 ) -1.7 %
Total operating revenues 180,964 167,447 13,517 8.1 %
 
Expenses:
Payroll and benefits 17,131 16,881 250 1.5 %
Real estate taxes 17,046 16,358 688 4.2 %
Utilities 7,183 7,135 48 0.7 %
Repairs and maintenance 6,305 6,025 280 4.6 %
Office and other operating expense 6,572 6,189 383 6.2 %
Insurance 2,892 2,606 286 11.0 %
Advertising & yellow pages   1,084     1,375     (291 ) -21.2 %
Total operating expenses   58,213     56,569     1,644  

2.9

%
 
Net operating income (3) $ 122,751   $ 110,878   $ 11,873  

10.7

%
 
 
YTD Same store move ins 118,992 125,305 (6,313 )
 
YTD Same store move outs 114,580 111,184 3,396
 
 
OTHER DATA Same Store (2)   All Stores (4)

2013

2012

2013

2012

 
Weighted average quarterly occupancy

90.9

%

88.4

%

89.9

%

88.1

%

 
Occupancy at September 30

90.1

%

88.1

%

89.2

%

87.8

%

 
Rent per occupied square foot $ 11.07 $ 10.69 $ 11.21 $

10.79

 

 
(4) Does not include unconsolidated joint venture stores managed by the Company

Investment in Storage Facilities:

The following summarizes activity in storage facilities during the nine months ended September 30, 2013:
   
Beginning balance $ 1,755,954
Property acquisitions 49,466
Improvements and equipment additions:
Expansions 6,375
Roofing, paving, and equipment:
Stabilized stores 7,653
Recently acquired stores 901
Change in construction in progress (Total CIP $13.0 million) 4,559
Dispositions and Impairments   (4,797 )
Storage facilities at cost at period end $ 1,820,111  
 
 

Comparison of Selected G&A Costs

Quarter Ended

September 30, 2013

September 30, 2012

 
Management and administrative salaries and benefits 4,976 4,166
Internet advertising & marketing 1,214 1,034
Training 214 265
Call center 381 407
Uncle Bob's Management costs 80 68
Income taxes 332 632
Other administrative expenses (5)   1,768     1,600
$ 8,965   $ 8,172
 
(5) Other administrative expenses include professional fees, office rent, travel expense, investor relations and miscellaneous other expenses.
 
 

September 30, 2013

September 30, 2012

 
Common shares outstanding 31,977,890 30,432,720
Operating Partnership Units outstanding 199,163 204,163
Exhibit A
                                     
Sovran Self Storage, Inc.
 
Same Store Performance Summary
Three Months Ended September 30, 2013
(unaudited)
 
 
Avg Qtrly Avg Quarterly Occupancy Revenue Expenses NOI
Rent per

for the Three Months Ended

for the Three Months for the Three Months for the Three Months
Square Occupied

September 30,

Ended September 30,     Ended September 30,   Ended June 30,  
State

Stores

 

Feet

 

Square Foot

  2013   2012 2013   2012   % Change 2013   2012   % Change 2013   2012   % Change
 
Alabama 22 1,636 $ 8.07 88.1% 84.0% $ 3,187 $ 2,983 6.84% $ 955 $ 980 -2.55% $ 2,232 $ 2,003 11.43%
Arizona 9 536 10.52 89.3% 89.9% 1,341 1,255 6.85% 418 420 -0.48% 923 835 10.54%
Connecticut 5 295 18.14 93.4% 90.6% 1,287 1,214 6.01% 366 358 2.23% 921 856 7.59%
Florida 54 3,540 10.42 90.4% 85.6% 8,838 8,303 6.44% 2,920 2,927 -0.24% 5,918 5,376 10.08%
Georgia 23 1,491 9.97 89.7% 88.5% 3,545 3,420 3.65% 1,076 1,116 -3.58% 2,469 2,304 7.16%
Louisiana 14 816 10.96 91.7% 89.4% 2,149 2,033 5.71% 605 604 0.17% 1,544 1,429 8.05%
Maine 2 114 13.46 89.9% 89.3% 364 340 7.06% 93 105 -11.43% 271 235 15.32%
Maryland 3 139 16.41 89.5% 89.7% 527 519 1.54% 200 168 19.05% 327 351 -6.84%
Massachusetts 12 656 14.09 93.2% 90.1% 2,271 2,085 8.92% 652 635 2.68% 1,619 1,450 11.66%
Mississippi 12 916 9.44 90.6% 88.2% 2,067 1,955 5.73% 604 595 1.51% 1,463 1,360 7.57%
Missouri 8 515 11.67 88.5% 91.4% 1,389 1,327 4.67% 476 460 3.48% 913 867 5.31%
New Hampshire 4 261 11.44 91.5% 88.3% 720 670 7.46% 212 195 8.72% 508 475 6.95%
New Jersey 2 121 17.58 87.5% 85.3% 484 465 4.09% 197 169 16.57% 287 296 -3.04%
New York 28 1,659 14.01 92.4% 87.5% 5,696 5,336 6.75% 1,676 1,617 3.65% 4,020 3,719 8.09%
North Carolina 18 1,058 9.86 93.0% 88.7% 2,563 2,247 14.06% 762 721 5.69% 1,801 1,526 18.02%
Ohio 17 1,155 9.76 90.5% 89.1% 2,687 2,483 8.22% 787 765 2.88% 1,900 1,718 10.59%
Pennsylvania 4 220 10.09 89.2% 86.6% 514 493 4.26% 170 157 8.28% 344 336 2.38%
Rhode Island 4 206 12.46 90.0% 82.3% 639 546 17.03% 225 196 14.80% 414 350 18.29%
South Carolina 8 449 10.25 90.7% 88.6% 1,106 1,024 8.01% 398 350 13.71% 708 674 5.04%
Tennessee 4 291 10.22 90.5% 92.5% 702 676 3.85% 244 250 -2.40% 458 426 7.51%
Texas 91 6,445 11.46 92.5% 91.3% 17,775 16,370 8.58% 5,897 5,649 4.39% 11,878 10,721 10.79%
Virginia 18 1,188 11.13 86.3% 83.4% 2,989 2,838 5.32% 934 845 10.53% 2,055 1,993 3.11%

 

                                               
Portfolio Total 362   23,707   $ 11.07   90.9%   88.4% $ 62,840   $ 58,582   7.27% $ 19,867   $ 19,282   3.03% $ 42,973   $ 39,300   9.35%
 
Dollars in thousands except for average quarterly rent per occupied square foot. Square feet in thousands.
362 wholly owned same stores.
Exhibit B
                                       
Sovran Self Storage, Inc.
 
Debt Maturity Schedule
September 30, 2013
(unaudited)
 
Current
Maturity Basis of Interest
(dollars in thousands)     Date     Rate     Rate (1)     2013     2014     2015     2016     2017     Thereafter     Total
 
Line of credit Jun-2018 Variable 1.68% $           - $           - $           - $ - $           - $   49,000 $   49,000
 
Mortgage note Mar-2014 Fixed 6.35% 9 949 - - - - 958
Term note Apr-2016 Fixed 6.38% - - - 150,000 - - 150,000
Term note Jun-2020 Swapped to fixed 4.02% - - - - - 125,000 125,000
Term note Jun-2020 Swapped to fixed 3.26% - - - - - 100,000 100,000
Term note Jun-2020 Swapped to fixed 3.02% - - - - - 100,000 100,000
Term note Aug-2021 Fixed 5.54% - - - - - 100,000 100,000
Mortgage note May-2026 Fixed 5.99% 30 126 134 142 151 1,701 2,284
                         
$ 39 $ 1,075 $ 134 $ 150,142 $ 151 $ 475,701 $ 627,242
 
 

 

(1) Rate as of September 30, 2013 based on existing debt rating. Interest rates shown do not include amortization of financing fees and facility fees which are expected to be $1.2 million in 2013.

Contact:
Sovran Self Storage, Inc.
Andrew Gregoire
Chief Financial Officer
or
Diane Piegza
Vice President, Corporate Communications
716-633-1850

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