Strategic Storage Trust II Inc., a publicly registered non-traded REIT, announced its operating results for the first quarter of 2017.
First Quarter 2017 Highlights
• Increased total revenue by approximately $11.5 million, or 184 percent, when compared to the same period in 2016.
• Increased same-store revenues and NOI by 15.6 percent and 32.2 percent, respectively, compared to the same period in 2016.
• Increased same-store average physical occupancy by approximately 8.1 percent to 92.3 percent from 84.2 percent compared to the same period in 2016.
• Increased same-store annualized rent per occupied square foot by approximately 5.5 percent to $13.29 from $12.60 compared to the same period in 2016.
• Increased modified funds from operations by approximately $2.1 million, or 130 percent, when compared to the same period in 2016.
On April 13, 2017, the board of directors of SST II, upon recommendation of its nominating and corporate governance committee, approved an estimated value per share of its common stock of $10.22 for its Class A Shares and Class T Shares.
KeyBank Florida CMBS Loan
On April 11, 2017, SST II refinanced its amended property loan with KeyBank National Association and placed the five Florida properties encumbered by the loan onto a $52 million, 10-year loan with KeyBank. The loan matures on May 1, 2027 and monthly payments due under the loan are interest-only for the first five years, with payments reflecting a 30-year amortization schedule beginning thereafter. The loan bears interest at 4.65 percent.
Interest Rate Cap
On May 1, 2017, SST II purchased an interest rate cap with a notional amount of $90 million, such that as of the effective date of July 1, 2017, LIBOR is capped at 1.25 percent through December 22, 2018.
SST II focuses on stabilized self storage properties and oversees a portfolio of 83 self storage facilities located in 14 states and Ontario, Canada. The offering, which has raised $570 million in investor equity, was declared effective by the SEC in January 2014 and closed three years later.