Self-Storage Management Firms Report 3Q 2014 Financial Results
2 days ago0 CommentsPosted in News, Self-Storage Operators, Self-Storage Operating Performance, Third-Party Management Services, Self-Storage Suppliers Print
Several self-storage management companies have released operating results for the third-quarter ending Sept. 30. All showed improvements in same-store revenue over the third quarter in 2013.
Absolute Storage Management (ASM) released its third-quarter 2014 operational results as well as year-to-date results through Sept. 30 for its 80 properties. Same-store revenue increased 8.6 percent for the third quarter and was 9.7 percent higher behind occupancy gains of 5.7 percent for the year-to-date. Concessions were 13.8 percent lower in 2014 compared to the previous year.
“Operating results remained solid across most of our markets. Concessions have been declining throughout the year, while asking rents are nearly 4 percent higher,” said Michael Haugh, president. “Year-over-year revenue growth, however, appears to be slowing. The growth rate is trending down as occupancies reach all-time highs.”
Storage Investment Management Inc. (SIMI) reported results for the 28 self-storage properties it manages. Collectively, the facilities averaged an increase in same-store sales of nearly 6 percent during the quarter compared to the same period in 2013. Net operating income (NOI) for the period increased by 11.1 percent over the third quarter in 2013. The company attributes the surge to rent increases and steady occupancy, according to a press release.
Same-store revenue increased 7.6 percent year over year for the properties managed by Southeast Management Co. The increase was 7.8 percent higher, along with occupancy gains of 2 percent, according to a press release. The company’s NOI also showed a year-over-year increase of 13.1 percent year-to-date.
Founded in 2002, ASM owns and manages self-storage facilities throughout the Southeast. The company is actively seeking to add additional properties to its portfolio through traditional third-party management relationships and joint-venture/acquisition opportunities. Headquartered in Memphis, Tenn., it has regional offices in Atlanta; Charlotte, N.C.; and Jackson, Miss.
Based in Virginia, Southeast Management has a regional office in North Carolina. The company manages and owns self-storage facilities in Florida, North and South Carolina, and Virginia.
Headquartered in New York, SIMI is led by principals Charlie Fritts, president, and David Inman, chief operating officer, who have a combined 75 years of self-storage industry experience. The company manages facilities in Connecticut, Maine, Massachusetts, New Jersey, New York, Pennsylvania and Rhode Island.
Calling all Owners and Managers….aren’t you curious where people are moving to? Aren’t you curious where they’re leaving? You should be. The success of your business depends on information like this.
United Van Lines publishes an annual Migration Study each year with the top 5 states people are moving to and the top five states people are leaving. By requesting additional data from United, you can drill down to identify which cities within the states people are migrating to or from.
According to United’s 2013 Migration Study, “The Carolinas each made the top five with South Carolina at 60 percent and North Carolina at 58 percent inbound moves. North Carolina has been on the high inbound list every year since 1993, and South Carolina has held a spot on the top inbound list 16 out of the past 18 years.”
So, if your facility is in the Carolinas, this is great news. Make sure you keep tabs on future information like this and in the meantime, find out if your city/town has become a hot spot destination.