Industry Ownership • Section 2 In terms of new development, Public Storage completed
three new facilities and several expansion projects during Q3 2015. As of September 30, 2015, the company has 3.4 million net rentable square feet of storage under construction with 0.6 million net rentable square feet of various expansion projects anticipated to come online in 2015 and 2016.
For three quarters of 2015, net income allocable to its com- mon shareholders was $4.32 per diluted common share, com- pared with $3.61 per diluted common share for the same period in 2014, representing an increase of $0.71 per diluted common share. The increase is primarily due to a $126.4 million increase in self-storage net operating income as a result of an $84.6 mil- lion increase in the company’s same-store facilities and a $41.8 million increase in its non-same-store facilities.
Acquisition activity totaled 39 properties across the five REITs for an aggregate volume of just under $280 million. Historically, the fourth quarter is
heavily loaded with external growth, so the expectation for additional
acquisitions by year-end is reasonably high.
Same-store revenue increased 6.5 percent or $89.9 million in the nine months ending September 30, 2015 as compared to the same period in 2014. According to Public Storage, this was due primarily to higher realized annual rent per occupied square foot. In mid-November, analysts at Argus increased the compa- ny’s stock price target Argus from $220 to $248. On December 2, 2015, Public Storage closed at $240.14.
Extra Space Storage, the second largest company in the in-
dustry, both owns and third-party manages facilities. The 1,312 facilities equate to 98,756,000 rentable square feet of storage space.
During the first three quarters of 2015, the company expand-
ed its portfolio extensively with several major acquisitions. The most significant boost came from a merger with SmartStop Self Storage, Inc., a $1.3 billion transaction that gave Extra Space 122 wholly-owned stores. In addition, the company assumed the management of 43 SmartStop stores.
For 3Q 2015, Extra Space increased same-store revenue by
9.9 percent and same-store NOI by 12.6 percent over the same quarter in 2014. As indicated in Chart 2.2, the company achieved funds from operations attributable to common stockholders (FFO) of $0.81 per diluted share—a 12.5 percent increase over the same period in 2014.
U-Haul International, while publically traded under the name
of its parent company, AMERCO, is not structured as a REIT. Ranked as the third largest self-storage operator in the nation, U-Haul currently owns or operates 1,317 self-storage properties, which comprise 45,989,564 rentable square feet with a total of 513,234 individual self-storage units.
For the quarter ending September 30, 2015, the company re-
ported net earnings available to shareholders of $183.4 million, or $9.36 per share, compared with net earnings of $156.2 mil- lion, or $7.98 per share, for the same period last year. Net earn- ings available to shareholders were $354.7 million, or $18.10 per share, compared with net earnings of $280.7 million, or $14.34 per share, for the same period last year.
Ranking fourth in the industry is CubeSmart based in Mal- vern, Pa., with 626 facilities encompassing 41,800,000 rentable
Chart 2.3 – Same Store Rental Revenue Per Store
$0.00 $50.00 $100.00 $150.00 $200.00 $250.00 $300.00 $350.00
Public Storage
3Q14 * Sovran Self Storage National Storage Affiliates * NSA is excluded from 2014 references due to its IPO in 2015 2016 Self-Storage Almanac 29 CubeSmart Extra Space
3Q15 Source: NGKF Capital Markets, Yahoo! Finance
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