SELF STORAGE MARKET OVERVIEW Third Quarter … · 21 SELF STORAGE MARKET OVERVIEW Third Quarter...

transcript

SELF STORAGE MARKET OVERVIEWThird Quarter 2013 SUMMARY

SELF STORAGE MARKET OVERVIEWFirst Quarter 2014 Results

Analysis of the Public Self Storage Companies

SELF STORAGE GROUPMarc A. Boorstein

mboorstein@mjpartners.comJeffrey L. Jacobson

jjacobson@mjpartners.comDavid E.Kohn

dkohn@mjpartners.comDennis Nyren

dnyren@mjpartners.com

Steven Schwartzsschwartz@mjpartners.com

Greg Owensgowens@mjpartners.com

Benjamin Johnsonbjohnson@mjpartners.com

150 South Wacker Drive • Suite 450 • Chicago, Illinois 60606 • (312) 726-5800 • www.mjpartners.com

SELF STORAGE MARKET OVERVIEWFirst Quarter 2014 SUMMARY

Overview

• Revenuegrowthinfirstquarterforeachoffourpubliccompaniesrangingfrom5.1%to8.3%.

• NewOperatingIncomegrowthrangingfrom5.6%to9.4%.

• Verycompetitiveacquisitionmarketforallqualityofexistingpropertiesfrombothprivateandpubliccompanies.Capratescontinuetotrendlower.

• Nominalnewsupply,lessdiscountingandcustomersstayinglonger.

Future Optimism

• “Thereisstillvirtuallynonewsupply….(and)becauseofthepowerandpotencyofourinternetplatform,we’retakingmarketsharefromthesmaller(operator).”

- Spencer Kirk, CEO, Extra Space Storage

• “Timesaregoodandweexpectthattocontinue” - David Rogers, CEO, Sovran Self Storage

New Development Subdued

• Difficultyobtainingconstructionfinancing

• Risinglandpricesinmajormetropolitanmarkets.

• Undercapitalizedprivatedevelopers.

• Emergingmarketforacquisitionsofnewlybuiltpropertiesatcertificate-of-occupancy.

SELF STORAGE MARKET OVERVIEWFirst Quarter 2014 SUMMARY

Implied Cap Ratesbasedoncommonshareprices:

Public Storage (PSA) 4.3% Extra Space Storage (EXR) 5.1% CubeSmart (CUBE) 5.4% Sovran Self Storage (SSS) 6.4% - BMO Capital Markets

Macroeconomic Trends Impacting Self Storage

• U.S.businessesfinallyaddedenoughjobstoreplacethe8.8millionpositionslostduringtherecession.

• Nonfarmemploymentgrewby288,000inAprilandunemploymentsankto6.3%from10.0%in2009–nowjustalittlehigherthanatthesametimeofLehmanBrother’scollapseinSeptember2008.

- U.S. Labor Department

• Jobgrowthoverthepastthreemonthshasaveraged238,000–farabovelastyear’space.

• Nation’spayrollemploymentnowtotals138.3million,justshyofarecordreachedinJanuary2008. - U.S. Labor Department

• SalesofpreviouslyownedhomesfellslightlyinMarchandweredown7.5%fromayearearlier. - National Association of Realtors

• Thelabor-forceparticipationratepeakedat67.2%in2000,hoveredat66%atstartofrecessioninDecember2007.Ithasfallensteadily,hitting62.8%inApril.Thebiggestfactoristheagingbaby-boomergeneration.

- Paul Ashworth, Chief U.S. Economist, Capital Economics

SELF STORAGE MARKET OVERVIEWFirst Quarter 2014

EARNINGS RESULTSSame-Store Comparisons

Public Storage Extra Space CubeSmart Sovran

Number of Properties: 2,200 U.S. 188 Europe

1,052 539 487

Third-Party Management:Joint Venture Management:Total Managed: 35-40

252273525 161

245579

Revenue: +5.1% +7.9% +7.0% +8.3%

Net Operating Income: +5.6% +9.4% +9.0% +9.3%

Occupancy:vs.previousyear:

92.6%91.9%

(weightedaverage)

90.4%88.4%

(quarterend)

89.5%85.6%

(quarterend)

88.9%85.8%

(weightedaverage)

Rent Per Occupied Square Foot: $14.41 $14.09 $13.54 $11.16

PORTFOLIO OCCUPANCYSame-Store Comparisons

Portfolio Occupancies

EXTRA SPACE STORAGE

CUBESMART SOVRAN

PUBLIC STORAGE

92.3% 92.2%

90.2% 90.8%92.4% 93.0%

91.8% 92.4%94.0% 94.4%

93.0% 92.6%

2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q

87.7% 88.0%86.9%

89.0% 88.9% 88.6% 88.6%

90.8% 90.6%89.2%

2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q

80.0%81.2%

79.1% 79.3%

84.6%85.7%

90.0% 90.5%89.3% 89.5%

2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q

79.9%81.5% 81.5%

87.7% 88.4%87.4% 87.6%

91.0% 90.9%89.5% 88.9%

2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q

2011 2012 2013 2014 2011 2012 2013 2014

2011 2012 2013 20142011 2012 2013 2014

REVENUE GROWTHSame-Store Comparisons

RevenuesChangesfromsamequarterayearearlier

EXTRA SPACE STORAGE

CUBESMART SOVRAN

PUBLIC STORAGE

5.0% 4.8%5.1%

4.8% 4.9%5.4%

5.1%5.5% 5.4%

2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q

4.7% 4.9%

5.8%6.3%

6.7% 6.8% 6.5%

7.5% 7.8% 7.8%

2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q

3.5%4.0%

3.4%2.7% 3.0%

7.2%6.7% 7.0%

2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q

5.2% 5.3%

3.4%3.9%

8.0% 8.2% 8.1%8.9%

7.3%6.6%

2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q

2011 2012 2013 2014 2011 2012 2013 2014

2011 2012 2013 20142011 2012 2013 2014

NET OPERATING INCOME GROWTHSame-Store Comparisons

Net Operating IncomeChangesfromsamequarterayearearlier

EXTRA SPACE STORAGE

CUBESMART SOVRAN

PUBLIC STORAGE

6.1% 6.3%

8.3%7.9%

8.9%9.5%

7.2%8.0%

2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q

7.8%7.3%

10.8%10.2%

10.8% 10.4%9.7%

8.9%9.4%

2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q

7.4% 7.9%

5.2%4.5%

7.4% 7.6%

2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q

8.5%7.9%

7.9%8.6%

11.7%10.6%

2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q

2011 2012 2013 2014 2011 2012 2013 2014

2011 2012 2013 20142011 2012 2013 2014

Public Storage Extra Space CubeSmart Sovran

Market Capitalization $29.61 billion $5.99 billion $2.54 billion $2.46 billion

Funds From Operations (AdjustedQuarter)

$1.80/share(+9.1%)

$0.57/share(+23.9%)

$0.25/share(+25%)

$0.98/share(+16.7%)

Dividend Per Common Share(Quarter)

$1.40/share $0.40/share $0.13/share $0.68/share

Dividend Yield 3.30% 3.10% 2.80% 3.60%

Common Stock PriceMay5,2014:52-WeekRange:

$171.93$145.04 to $176.72

$51.69$38.98 to $52.99

$18.10$15.06 to $19.69

$76.05$62.11 to $80.24

EARNINGS RESULTS

SELF STORAGE MARKET OVERVIEWFirst Quarter 2014 INVESTMENT ACTIVITY

PUBLIC STORAGE: • As ofMarch 31st, development and expansion projects in processwhichwill addapproximately1.9millionnetrentablesquarefeetofstoragespaceatatotalcostofapproximately$195million,tobeincurredprimarilyin2014.

• Completedtwonewdevelopmentfacilitiesandoneexpansionprojectinfirstquarter,adding335,000netrentablesquarefeetatacostofapproximately$40million.

• InApril,acquiredonefacilityinAustin,Texaswith86,000netrentablesquarefeetforapproximately$11million-$6millionincashand$5millioninassumeddebt.

• AsofMay1st,currentlyundercontracttoacquirefivefacilitiesinNorthCarolinawith342,000net rentablesquare feet for totalcostofapproximately$26million incash.Expecttocompleteacquisitioninsecondquarter.

• GerardpropertyinBronx,NewYorkleasedover3,000unitsinaboutoneyearandendofApril67%occupied.Ratesabout60%to70%offorecast,helpingleaseupsoquickly,canbemoreaggressiveonrateswhenstabilizedsoon.

• Wouldbewillingtopay175%ofreplacementcostsincertainmarketssuchaslowerManhattan, where there are higher incomes, very little competition, and greatpopulationdensity.Mayonlypay50%to60%ofreplacementcostsinReno,Nevada.

• Notdoingnewcertificate-of-occupancybuyouts,althoughacquiredonenewprojectinBostonandacquiredoneunderdevelopment.

• Maybelessthan20largeinstitutionalportfoliosavailablenationwide.

• Twooflargesttransactionslastyearwereprivatewithoutbrokers.

EXTRA SPACE STORAGE: • Year-to-date$350millionofpropertieseitherclosedorundercontract.

• Duringthefirstquarter,acquired21propertiesforapproximately$249.7million. 17ofthepropertiesacquiredintheMiniPriceStorageportfolioinVirginiafor $213.8million,consistingof1.5millionrentablesquarefeet,14,000units,withoverall

occupancyof90%.

RemainingfourpropertieslocatedinAlabama,California,Connecticut,andTexas.

• Fouradditionalpropertiesundercontractforapproximately$39.3million,expectedclosingbyendofsecondquarter.

• Capratesfrom6%to7%inYearOnelookingforward,withNOIgrowthexpectedof5%to8%infirstyear.

• Twopropertiesacquiredatcertificate-of-occupancyphasewithnooccupancy.

• Twodealsacquiredfromjointventurepartnerrelationship.

• Somecapratecompressioninsecondarymarkets.

• Thirdpartymanagedproperties: 252 Ownedandmanagedinjointventures: 273 Totalmanaged: 525 WhollyOwnedProperties: 496 TotalProperties: 1,052

Same-StorePool: 443

• Notaddingsignificanttotalsquarefeetviaexpansionprojects,butupgradingcertainpropertiestoremainrelevant.

CUBESMART: • Closed on 16 property acquisitions year-to-date in 14 separate transactions for anaggregate purchase price of just over $187million.Acquired ten assets for $103.3millionduringfirstquarter.ThreepropertieslocatedinFlorida,twoinMarylandandoneeachinArizona,California,Connecticut,Pennsylvania,andTexas.

• Subsequenttoquarter’send,acquired$84millionofproperties.TwofacilitiesinNewYorkandoneeachinTexas,Florida,andMassachusetts.

• Openedtwonewpropertiesfortotalcostofapproximately$41.6million.OnepropertyinTheBronx,NewYork,andsecondamixed-usefacilityinMalvern(Philadelphia),PennsylvaniacontainingstoragespaceandofficespacefortheCompany’scorporateheadquarters.Projecting36monthslease-upforbothstores.(Bronxstore10%occupiedinabout40days.Malvernabout34%occupiedsinceJanuary.)

• Thefirst12to14monthsafternewacquisitiontypicallycapturemostofimpactfromnewsystems,branding,andmarketing.

• Addedthreenewmanagementcontractstothird-partymanagementprogram,nowoperatingthird-partymanagementof161facilitiestotaling9.8millionsquarefeet.

• For2014,increasingacquisitionstargetof$250millionto$300millionofacquisitions,upfromprevioustargetof$150millionto$200million.

• Investmentactivityacombinationofstabilizedacquisitionsandlease-upopportunities.Project$50millionto$75millionperyearoneachco-investmentinnewdevelopment,andseparatelyononlytakinglease-upriskofnewlybuiltpropertiesatcertificate-of-occupancy.Currently,about$200milliontotal,including:

-Threebuilt-to-suitpropertieswillclosein2015and2016.

-Fourdevelopmentprojectsopeninginlate2015.

SOVRAN: • Totalpropertyacquisitionsinfirstquarterof$95.4million

• Early in 2014 acquired six properties for $86.7 million. Two located in SoutheastFlorida,twoinPortland,Maine,andoneeachinSanAntonioandAustin,Texas.Thepropertiestotal460,000squarefeetofrentablespaceandalllocatedinmarketswithexistingpresence.

• OnMarch31st,acquiredHometownStorage,an87,000squarefootfacilityinChicagosuburbSt.Charles,Illinois,for$8.7million.

• Undercontracttoacquire17facilitiesfromLacklandSelfStorageforapproximately$120.7million.MayassignthepurchaseoffourofthepropertieslocatedinNewJersey,withacombinedpriceof$47.1million,toaSovranHFFjointventurewithHeitman,LLCinwhichthecompanyhasa20%interestforcashcontributionof$9.4million.Expectfirstyearcapratetobeabout6.5%to6.75%.

• Anticipatedtoacquireanadditional$100millionofpropertiesin2014.

• WorkingwithselectdevelopersinlargerMSA’sondifferentmodelstovalueacquiringproperties at certificate-of-occupancy, based on the cap rate at stabilization andimplementingadiscountedcashflow.Fewtoprobablyclosethisyearat$5millionto$10million,andhope$10millionto$15millionmorenextyear.

• WithSovran’soperatingplatformmoreconfidencetogrowoccupancyquickerthanpreviouslyprojectedfouryears,incertainmarkets.

• The28properties acquired in2012 that recently entered the company’s same-storepoolfeaturedoccupancygainfromabout70%toabout85%.

SELF STORAGE MARKET OVERVIEWFirst Quarter 2014 ADDITIONAL NOTES

PUBLIC STORAGE: • EndofApriloccupancy93.9%versus92.9%lastyearwithinsame-storepool.

• Expectedpeakoccupancyat95%to95.5%.

• Costsofoperatingforsame-storefacilitiesincreased4.0%comparedtosameperiodlastyear,dueprimarilytoweatherrelatedincreasesinsnowremovalandincreasedpropertytaxexpense,partiallyoffsetbyloweradvertisingandsellingcosts–duetohighoccupancylevels.

• 58%ofcustomermove-inscamethroughaninternetchannel,upfrom51%lastyear’sfirstquarter.

• Move-inratewasupabout3%whereasinAprilupover6%.

• StreetratesinAprilupabout6%to7%.

• 56%ofcustomerbasecurrentlystayingoveroneyear.

• About80%ofnewmove-insreceivesometypeofpromotionaldiscount–either$1forfirstmonthor50%off.

• Last summer, sentoutabout55%of customersa rent increase, andexpect slightlymorethissummer.Rateincreasesaverageabout8%to9%.

Rent Roll-Downs

- Averagemove-inrateinfirstquartersame-storesabout$114permove-in.Averagemove-outsameperiodabout$123-representingabout$9negative.

- Lastyear,move-inrateabout$111versusamove-outrateof$119.

PUBLIC STORAGE: Shurgard Europe

• Same-Storepoolof174facilitiesconsistingof9.2millionnetrentablesquarefeet.

• Squarefootoccupancy(weightedaverage)upto86.1%versus79.5%lastyear,butrentperoccupiedsquarefootdownto$26.77versus$27.58lastyear.

• Same-storerevenuegrowthof1.3%,andNOIgrowthof1.3%.

EXTRA SPACE STORAGE: • 14consecutivequartersofdouble-digitFFOgrowth,withanotherstrongyearexpected.

• Same-store revenues increaseddue to gains in occupancy, lowerdiscounts to newcustomersandhigherrentsforbothnewandexistingcustomers.

• Expenseshigherforsameperiodduetoincreasesinsnowremovalandutilityexpenses,relatedprimarilytosevereweatherintheMidwesternandEasternU.S.

• MaximumoccupancyforExtraSpacelowtomid90’s.

• MajorMarketsWithRevenueGrowthAboveCompany’sPortfolioAverage:

-Chicago -Houston -Denver -Miami

• MajorMarketsBelowCompany’sPortfolioAverage:

-Detroit -LasVegas -Indianapolis -Seattle

• Rentincreasesofexistingcustomersaverage8%to10%,butdependsonlengthofstayandunitoccupancy.

EXTRA SPACE STORAGE: • StabilizedPropertyPerformanceAverageOccupancy

FirstQuarter 2013LosAngeles-Riverside-OrangeCounty(132) 85.7% 82.6%NewYork-NorthernNewJersey-LongIsland(90) 91.5% 90.0%Washington-Baltimore(64) 89.8% 87.6%Boston-Worcester-Laurence(50) 91.3% 90.3%Tampa-St.Petersburg-Clearwater(24) 85.2% 83.4%Chicago-Gary-Kenosha(18) 90.9% 91.0%

• SelectStateOccupancyLevelsofAllPropertiesOperatingAsOfMarch31,2014:

-Arizona(22) 88.0% -Michigan(11) 91.1% -California(248) 87.6% -NewJersey(68) 92.1% -Colorado(28) 91.2% -NewYork(33) 90.4% -Florida(105) 87.9% -Ohio(34) 89.5% -Illinois(29) 89.6% -Pennsylvania(34) 88.5% -Maryland(49) 87.9% -Texas(69) 86.1% -Massachusetts(50) 90.8% -Virginia(46) 86.2%

EXTRA SPACE STORAGE: • Nettenantreinsuranceincomeprojectedat$44millionto$45millionfor2014,upover$3millionprojectedearlier.

• Overalltenantreinsurancepenetrationrateabout70%.Majorityofrevenueincreaseintenantreinsurancefromincrease indollarsperpolicy(highercoverageofgoodsinsured).

• Streetratesup3%atendofMarch,anddiscounts–downover10%sincelastJune,makingfordifficultupcomingcomparisons.

• 20%ofcustomerscommercialaccounts–aboutthesamepast16years.

• Added99storestosame-storepool,now443same-storesforcomparisons.

CUBESMART: • AsofMarch31st,companyhas378wholly-ownedfacilitiescontaining25.5millionsquarefeetwithoccupancyof88.6%.

• Same-storestreetrentsaveraged2.4%growthinfirstquarter.

• StrongestMarketsForStreetRateGrowth:

-NewYorkwithveryfew5’X5’and10’X10’unitsavailablecanincreasestreetrates10%to13%

-Colorado +10%to13% -Dallas,FortWorth +8%andabove-Chicago +5.5%-AllFlorida,ledbyMiami-MostchallengingmarketElPaso,Texas

• Discountsonsame-storepoolasapercentageofrentsdeclinedto5%from5.3%lastyear.

• Added48stabilizedpropertiestosame-storepoolin2014,increasingthesame-storepooltotalto346.2013same-storepoolwas298assets,and2012was274.Same-storepoolnowrepresenting91%ofcompany’stotalNOIinfirstquarter.

• Peakoccupancyforsame-storesanticipatedtobe92%to93%.

• Rate increasesonabout5%to6%of totalbaseeachmonth.Rate increasesaverageabout9%onexistingcustomers.Providenoticeof increaseinthesixthmonth,andthenevery12monthsthereafter.

• Effectiverentsforcustomersmovinginupabout3%.

• Newcustomermovinginabout1.5%higherthancustomervacating,only0.3%higherlastyear.

CUBESMART: • About81.6%ofcustomersreceivedpromotionaldiscountsversus82.2%lastyearinsame-storepool.

• Businesscustomersrepresentabout30%ofcustomerbase,projectedtostayaboutthesame.

• Averagelengthofstayabout14months,upaboutsixdaysversusayearago.

• About10%ofthird-partymanagedstoreshaveadoptedCubeSmartbrand.

• Almostnoimpactonanystoresnationwidewithlittlenewsupplyadded,notexpectedtochangeforatleast12months.

• OperatingPerformancebyRegion:Same-StoresMarch31,2014

EndingOccupancyMarch31,2013

EndingOccupancyNewYork/NorthernNewJersey(41) 89.0% 85.4%Non-MiamiFloridaMarkets(39) 90.7% 85.3%TexasMajorMarkets(36) 90.8% 87.6%Chicago(27) 90.3% 88.8%Miami/Ft.Lauderdale(16) 93.6% 86.5%SouthernCalifornia(12) 90.4% 85.5%

SOVRAN: • Intends to spendup to $30millionon expansionandenhancementprogram.Alsobudgeted$16millionforrecurringcapitalizedexpendituresincludingroofing,paving,andofficerenovations.

• Revenuegrowthdueto310basispointincreaseinaverageoccupancy,a3.4%increaseinrentalrates,andstronggrowthininsurancecommissions.

• Infirstquarter, experiencedpositive same-store revenueandNOIgrowth ineverystateinwhichcompanyoperates.

Strongestrevenueimpact:

-Texas -NewYork-Florida -NorthCarolina-Georgia

• Concessionreductionsaddedabout50basispointstorevenuegrowth.

• Occupancymaytopoutat93%to94%duringpeakquarters.

• Customersstayingmorethanoneyearincreasedto57.4%comparedtolastMarch’s55.3%withinsame-storegroup.

• Customersstayingmorethantwoyearsincreasedto39.45%from37.6%lastyear.

• Rateincreasesgiventoabout2.7%ofcustomerswithnetaveragerateincreaseof11%.

• Reviewseverymonthoncecustomerstayspastthe10thmonthtodecideifcustomermeetscriteriafrominternalalgorithmsforpotentialrateincrease.

SELF STORAGE MARKET OVERVIEWFirst Quarter 2014 CAPITAL ACTIVITIES

PUBLIC STORAGE: • OnJanuary28th,jointventurepartnerinEurope,NewYorkStateCommonRetirementFund,purchasedtheir51%intheloanPublicStorageextendedtoShurgardEuropeatfacevalueof€158.6million($216.2million)incash.

• OnMarch17th,issued6.375%SeriesYPreferredSharesresultingingrossproceedsof$235million.OnApril10thissuedadditionalSeriesYPreferredSharesatparfor$50millioningrossproceeds.

• At end of the quarter, roughly $100million cash on hand and about $300millionrevolvinglineofcredit.

• Repaid$328millionofrecentbanktermloan,leavingabalanceof$322million.

EXTRA SPACE STORAGE: • Fixed-ratedebttototaldebt74.2%.

• WeightedAverageInterestRates:

FixedRate: 4.1% VariableRate: 2.0% CombinedWeightedAverage: 3.6%

WeightedAveragematurityabout5.2years

• Endedquarterwithapproximately$67millioncashonhand,morethan$200millionofavailabilityonfourrevolvinglinesofcredit,andatotalcapacityof$290million.

CUBESMART: • Sold2.7millioncommonsharesthrough“at-the-market”equityprogramataveragepriceof$17.34pershare,resultinginnetproceedsof$46.2million.Another3.7millionsharesavailableforissuance.

• OnMay 1st, HFF joint venture with Heitman, LLC, obtained a $100million loansecuredby35facilitiesownedbytheventure.Aseven-yearnon-recourseloanwithfixedinterestrateof3.59%.CubeSmartowns50%shareofjointventure,andrecieved50% of loan proceeds to reduce borrowings and create additional capacity underrevolvingcreditfacility.

• Atendofthequarter,approximately$7millioncashonhand,andapproximately $229millionofavailabilityunder$300millionrevolvinglineofcredit.

RateWeighted

AverageMaturityFloatingRateDebt 1.76% 3.2yearsFixedRateDebt 4.37% 6.3yearsTotalDebt 4.21% 6.1years

SOVRAN: • Issued359,102sharesofcommonstockviaATM(at-the-market)programatanaveragepriceof$74.32pershare,resultinginnetproceedsof$26.3millionafterissuancecosts.Usedproceeds to fundacquisitions. In January, issued47,583 shares at anaveragepriceof$62.69throughDividendReinvestmentPlan.

• OnApril8th,issued$175millionoften-yearunsecurednotesatfixedrateof4.533%.$115millionoftheproceedsusedtopaydownlineofcredit,andremaindertofundacquisitionsandexpansions.

• Asresultoffinancing,approximately$60millioncashonhandforpurchasesexpectedlater in theyear,and$60millionavailableon lineofcreditwithan interest rateofLIBORplus1.5%,withadditional$75millionexpansionfeature.

• KeyFinancialRatios:

-DebttoEBITDA: 4.8x -DebttoEnterpriseValue(@$73.45/share): 22.1% -DebttoBookCostofFacilities: 35.3% -DebtServiceCoverage(DSC): 5.0x

SELF STORAGE MARKET OVERVIEW Third Quarter … · 21 SELF STORAGE MARKET OVERVIEW Third Quarter...

Documents