Strategic Storage Growth Trust Inc., a publicly registered non-traded real estate investment trust, reported its operating results for the fourth quarter and year-end of 2016.
“We are pleased to report continued revenue and NOI growth for our same-store year-over-year comparisons in both the fourth quarter and fiscal year 2016,” said H. Michael Schwartz, chairman and chief executive officer of SSGT. “Additionally, our new certificate of occupancy self storage facility in Phoenix, Arizona, which was acquired in May of 2016, continues to outperform our expectations, finishing the year at 63 percent occupancy.”
Fourth Quarter 2016 Highlights
• Increased same-store revenues and NOI by 24.1 percent and 77.6 percent, respectively, compared to the same period in 2015.
• Increased same-store average physical occupancy by approximately 8.4 percent to 88.9 percent from 80.5 percent compared to the same period in 2015.
• Increased same-store annualized rent per occupied square foot by approximately 15.1 percent to $11.34 from $9.85 compared to the same period in 2015.
• Increased same-store revenues and NOI by 20.9% and 44.7%, respectively, compared to the same period in 2015.
• Increased same-store average physical occupancy by approximately 10.5 percent to 89.8 percent from 79.3 percent compared to the same period in 2015.
• Increased same-store annualized rent per occupied square foot by approximately 7.3 percent to $9.60 from $8.95 compared to the same period in 2015.
Completed Acquisitions Subsequent to Year-End:
On January 13, 2017, the company completed the acquisition of a self storage facility located in Elk Grove Village, Illinois for a purchase price of approximately $10.1 million, plus closing costs and acquisition fees.
On March 16, 2017, the company closed on a self storage facility located in Garden Grove, California for a purchase price of approximately $18.4 million, plus closing costs and acquisition fees.
On March 1, 2017, the company entered into an agreement to purchase a property that is being developed into a self storage facility located in Sarasota, Florida. The purchase price is approximately $6.7 million, plus closing costs and acquisition fees, and the company expects the acquisition to close in the first or second quarter of 2017.
On March 2, 2017, a subsidiary of the REIT executed an agreement to purchase two existing self storage facilities in Asheville, North Carolina. The purchase price is approximately $11 million, plus closing costs and acquisition fees, and the acquisition is expected to close in the second quarter of 2017.
As of December 31, 2016, the outstanding principal balance under the KeyBank Facility was approximately $7.6 million. Subsequent to December 31, 2016, the REIT borrowed additional amounts and made additional payments on the KeyBank Facility ultimately bringing its outstanding balance to zero.
On March 14, 2017, the board of directors declared a daily distribution in the amount of $0.0010958904 per share on outstanding shares of common stock, payable to both Class A and Class T stockholders of record of such shares shown on our books as of the close of business each day during the period commencing April 1, 2017 and ending June 30, 2017. The distribution to Class T stockholders will be reduced by a stockholder servicing fee.
Strategic Storage Growth Trust focuses on the acquisition, development, redevelopment and lease-up of self storage properties. The company’s portfolio currently consists of 17 operating self storage facilities located in eight states and includes three development properties. The REIT went effective in January 2015 and has raised more than $107.4 million in investor equity, as of the fourth quarter of 2016.