SmartStop Self Storage Inc., an owner and operator of self storage facilities, reported its operating results for the three months ended June 30, 2015.
“We had a very exciting quarter,” commented H. Michael Schwartz, chief executive officer of SmartStop Self Storage, Inc. “We are happy to report that we have achieved our 14th consecutive quarter of year-over-year same-store revenue and net operating income growth.”
Schwartz noted, “As previously announced, we have entered into a definitive merger agreement pursuant to which we will be acquired by Extra Space Storage Inc. and our stockholders will receive $13.75 per share in cash, representing a total purchase price of approximately $1.4 billion and a premium of approximately 27 percent over our most recently announced net asset value. Prior to consummating the merger, we will continue to provide investors with a regular cash distribution, and in short, we believe our operational results and the merger are a validation of our investment strategy.”
Key highlights for the three months ended June 30, 2015:
Increased same-store revenues and net operating income by 7.5 percent and 15.9 percent, respectively , for the three months ended June 30, 2015 compared to the three months ended June 30, 2014. As a result of the self-administration and investment management transaction, Tthe company’s net operating income for the second quarter was favorably impacted due to the effect of the elimination of ng property management fees, partially offset by new expenses associated with the direct oversight of our properties. Excluding property management fees and including the additional costs the company we now incurs for the three months ended June 30, 2014, results in an increase in same-store net operating income of approximately 8.8 percent%.
Increased same-store average physical occupancy by approximately 2.3 percent to 89.3 percent for the three months ended June 30, 2015, compared to from 87.0 percent year-over-year. for the three months ended June 30, 2014.
Increased same-store annualized rent per- occupied- square- foot by approximately 5 percent to $11.36 for the three months ended June 30, 2015 from compared to $10.82 for the three months ended June 30, 2014.
Increased funds from operations by 28 percent to $9.7 million for the three months ended June 30, 2015 fromcompared to $7.6 million for the three months ended June 30, 2014.
Increased cash flows from operations by 44 percent to $12.2 compared to $8.4 million year-over-year. for the three months ended June 30, 2014.
SmartStop Self Storage Inc. owns and operates 169 self storage properties in 21 states and Toronto, Canada. The diversified real estate company focuses on the acquisition, advisory, asset management and property management services for self storage properties, and sponsors Strategic Storage Trust II Inc. and Strategic Storage Growth Trust Inc., two publicly registered non-traded REITs that focus on growth-oriented self storage properties.