BUFFALO, N.Y.--(BUSINESS WIRE)--Sovran Self Storage, Inc. (NYSE:SSS), a self storage real estate investment trust (REIT), reported operating results for the quarter ended March 31, 2014.
Net income available to common shareholders for the first quarter of 2014 was $16.7 million or $0.51 per fully diluted common share. For the same period in 2013, net income available to common shareholders was $14.3 million, or $0.47 per fully diluted common share.
Funds from operations (FFO) for the quarter were $0.88 per fully diluted common share compared to $0.82 for the same period last year. In the first quarter of 2014, the Company incurred net acquisition costs of $2.8 million in connection with its property purchases and had a straight line rent adjustment of $0.5 million relating to the lease expense of the former Westy properties. In the first quarter of 2013, the Company incurred acquisition costs of $0.5 million. Absent these charges, adjusted FFO per share was $0.98 and $0.84 for the first quarter of 2014 and 2013, respectively.
Improved occupancies and increased rental rates more than offset the anticipated increases in property taxes, snow removal and utilities, resulting in the strong FFO growth.
David Rogers, the Company’s CEO, commented, “We had a strong first quarter. Our marketing and pricing strategies continue to attract customers who tend to stay with us for the long haul, and as a result we experienced fewer move-outs than we have in recent winters. This enabled us to maintain high occupancies throughout the slow leasing season and it set us up well for the busy months to come.”
OPERATIONS:
Total revenues increased 18.1% over last year’s first quarter, while operating costs increased 16.6%, resulting in an NOI (3) increase of 18.9%. Overall occupancy averaged 88.7% for the period and rental rates increased 9.2% to an average of $11.75 per sq. ft.
Revenues for the 386 stores wholly owned by the Company since January 1, 2013 increased 8.3% from those of the first quarter of 2013, the result of a 310 basis point increase in average occupancy, a 3.4% increase in rental rates and strong growth in insurance commissions.
Same store operating expenses increased 6.4% for the first quarter of 2014 compared to the prior year period, primarily the result of increased property tax charges of 10.4%. Utility costs and snow removal expenses were also higher than expected due to the extended harsh winter.
Consequently, same store net operating income increased 9.3% this period over the first quarter of 2013.
General and administrative expenses increased by approximately $1.2 million over the same period in 2013, primarily due to increases in internet advertising and personnel costs associated with operating more stores during the quarter than at this time last year.
During the first quarter of 2014, the Company experienced positive same store revenue and NOI growth in most every state in which it operates. The stores with the strongest revenue impact include those in Texas, Florida, New York, North Carolina, and Georgia.
PROPERTIES:
As previously announced, the Company acquired six properties early in 2014 at a total cost of $86.7 million. Two of these acquisitions are located in Southeast Florida; two are in Portland, ME; and one each are in San Antonio and Austin, TX. The properties total approximately 460,000 sq. ft. of rentable space and all are located in markets where the Company already has a presence.
On March 31, 2014 the Company also acquired an 86,000 sq. ft. facility in the Chicago market for $8.7 million.
Rogers commented, “These properties are great additions to our portfolio, and should enhance our position in each of their markets.”
At March 31, 2014, the Company was under contract to acquire 17 self-storage facilities for cash consideration of approximately $120.7 million. The Company may assign the purchase of four of the facilities, with a combined purchase price of $47.1 million, to Sovran HHF in which it has a 20% ownership interest. If the Company does assign the four facilities to Sovran HHF, the Company’s cash contribution to Sovran HHF for the purchase of those four facilities would be approximately $9.4 million. The purchase of these facilities by the Company or Sovran HHF is subject to customary conditions to closing, and there is no assurance that these facilities will be acquired.
CAPITAL TRANSACTIONS:
|
Illustrated below are key financial ratios at March 31, 2014: |
||||||||||||
|
- |
Debt to Enterprise Value (at $73.45/share) | 22.1% | ||||||||||
|
- |
Debt to Book Cost of Storage Facilities | 35.3% | ||||||||||
|
- |
Debt to EBITDA Ratio | 4.8x | ||||||||||
|
- |
Debt Service Coverage | 5.0x | ||||||||||
At March 31, 2014, the Company had approximately $6.3 million of cash on hand, and $60 million available on its line of credit (without considering the additional $75 million available under the expansion feature).
Subsequent to the end of the quarter, on April 8, 2014, the Company issued $175 million of ten-year unsecured notes at a fixed rate of 4.533%. $115 million of the proceeds were used to pay down the Company’s line of credit balance; the remainder will be used to fund future acquisitions and property expansions.
The Company issued 359,102 shares of its common stock via its previously announced ATM program during the quarter at an average price of $74.32 per share, resulting in net proceeds of $26.3 million after issuance costs. The Company used the proceeds to fund the purchase of the aforementioned properties. Also, in January, the Company issued 47,583 shares at an average price of $62.69 through its Dividend Reinvestment Plan.
COMMON STOCK DIVIDEND:
Subsequent to quarter end, the Company announced a quarterly dividend of $0.68 per share or $2.72 annualized.
YEAR 2014 EARNINGS GUIDANCE:
Management is encouraged by its customers’ average length of stay, rent growth, and resiliency in most markets. The following assumptions covering operations have been utilized in formulating guidance for the second quarter and full year 2014:
|
Same Store
Projected Increases Over 2013 |
||||||||||
|
2Q 2014 |
Full Year 2014 |
|||||||||
| Revenue | 6.5 – 7.5% | 6.0 – 7.0% | ||||||||
| Operating Costs (excluding property taxes) | 4.5 – 5.5% | 3.5 – 4.5% | ||||||||
| Property Taxes |
10.0 – 11.0% |
8.5 – 9.5% |
||||||||
| Total Operating Expenses | 6.0 – 7.0% | 5.0 – 6.0% | ||||||||
| Net Operating Income | 6.5 – 7.5% | 6.5 – 7.5% | ||||||||
The Company intends to spend up to $30 million on its expansion and enhancement program. It has also budgeted $16 million to provide for recurring capitalized expenditures including roofing, paving, and office renovations.
In addition to the $95.4 million of properties acquired thus far in the first quarter, the Company has assumed $100 million of additional acquisitions in 2014. Per share FFO guidance is projected after adding back third party acquisition costs.
General and administrative expenses are expected to increase to approximately $39 million due to the need for additional personnel required for recent acquisitions, income taxes on its taxable REIT subsidiaries, and the Company’s plans to continue expanding its internet marketing presence, Corporate Alliance and third party management programs.
As a result of the financing that took place on April 8, 2014, the Company has approximately $60 million of cash available. While it is expected that this will be deployed in the purchase of facilities later in the year, the impact of this funding is somewhat dilutive in the short term. Purchases in excess of the $60 million cash on hand are expected to be funded via the Company’s line of credit, which carries an interest rate of LIBOR plus 1.5%.
At March 31, 2014, the Company had 32.9 million shares of common stock outstanding and 0.2 million Operating Partnership Units outstanding.
As a result of the above assumptions, management expects funds from operations for the full year 2014 to be approximately $4.25 to $4.29 per share, and between $1.03 and $1.05 per share for the second quarter of 2014.
FORWARD LOOKING STATEMENTS:
When used within this news release, the words “intends,” “believes,” “expects,” “anticipates,” and similar expressions are intended to identify “forward looking statements” within the meaning of that term in Section 27A of the Securities Act of 1933, and in Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the Company to be materially different from those expressed or implied by such forward looking statements. Such factors include, but are not limited to, the effect of competition from new self storage facilities, which could cause rents and occupancy rates to decline; the Company’s ability to evaluate, finance and integrate acquired businesses into the Company’s existing business and operations; the Company’s existing indebtedness may mature in an unfavorable credit environment, preventing refinancing or forcing refinancing of the indebtedness on terms that are not as favorable as the existing terms; interest rates may fluctuate, impacting costs associated with the Company’s outstanding floating rate debt; the Company’s ability to comply with debt covenants; the future ratings on the Company’s debt instruments; the regional concentration of the Company’s business may subject it to economic downturns in the states of Florida and Texas; the Company’s ability to effectively compete in the industries in which it does business; the Company’s reliance on its call center; the Company’s cash flow may be insufficient to meet required payments of principal, interest and dividends; and tax law changes which may change the taxability of future income.
CONFERENCE CALL:
Sovran Self Storage will hold its First Quarter Earnings Release Conference Call at 9:00 a.m. Eastern Time on Thursday, May 1, 2014. To access the conference call, dial 877.407.8033 (domestic), or 201.689.8033 (international). Management will accept questions from registered financial analysts after prepared remarks; all others are encouraged to listen to the call via webcast by accessing “events and conference calls” under the investor relations tab at www.unclebobs.com/company/.
The webcast will be archived for a period of 90 days; a telephone replay will also be available for 72 hours by calling 877.660.6853 and entering conference ID 13580118.
ABOUT SOVRAN SELF STORAGE, INC:
Sovran Self Storage, Inc. is a self-administered and self-managed equity REIT that is in the business of acquiring and managing self storage facilities. The Company operates 487 self storage facilities in 25 states under the name “Uncle Bob’s Self Storage”®. For more information, visit www.unclebobs.com, like us on Facebook, or follow us on Twitter.
|
SOVRAN SELF STORAGE, INC. |
||||||||||
| BALANCE SHEET DATA | ||||||||||
| (unaudited) | ||||||||||
| March 31, | December 31, | |||||||||
| (dollars in thousands) | 2014 | 2013 | ||||||||
| Assets | ||||||||||
| Investment in storage facilities: | ||||||||||
| Land | $ | 346,052 | $ | 312,053 | ||||||
| Building, equipment and construction in progress | 1,617,007 | 1,552,584 | ||||||||
| 1,963,059 | 1,864,637 | |||||||||
| Less: accumulated depreciation | (377,685 | ) | (366,472 | ) | ||||||
| Investment in storage facilities, net | 1,585,374 | 1,498,165 | ||||||||
| Cash and cash equivalents | 6,260 | 9,524 | ||||||||
| Accounts receivable | 4,774 | 5,119 | ||||||||
| Receivable from joint venture | 860 | 883 | ||||||||
| Investment in joint venture | 30,199 | 30,391 | ||||||||
| Prepaid expenses | 7,594 | 5,978 | ||||||||
| Intangible asset - in-place customer leases (net of accumulated | ||||||||||
| amortization of $14,217 in 2014 and $13,551 in 2013) | 1,922 | 1,092 | ||||||||
| Fair value of interest rate swap agreements | 580 | 794 | ||||||||
| Other assets | 5,445 | 9,929 | ||||||||
| Total Assets | $ | 1,643,008 | $ | 1,561,875 | ||||||
| Liabilities | ||||||||||
| Line of credit | $ | 115,000 | $ | 49,000 | ||||||
| Term notes | 575,000 | 575,000 | ||||||||
| Accounts payable and accrued liabilities | 27,095 | 37,741 | ||||||||
| Deferred revenue | 7,589 | 6,708 | ||||||||
| Fair value of interest rate swap agreements | 9,233 | 7,523 | ||||||||
| Mortgages payable | 2,223 | 2,254 | ||||||||
| Total Liabilities | 736,140 | 678,226 | ||||||||
| Noncontrolling redeemable Operating Partnership Units at redemption value | 14,535 | 12,940 | ||||||||
| Equity | ||||||||||
| Common stock | 341 | 337 | ||||||||
| Additional paid-in capital | 1,097,014 | 1,066,399 | ||||||||
| Accumulated deficit | (169,516 | ) | (162,450 | ) | ||||||
| Accumulated other comprehensive loss | (8,331 | ) | (6,402 | ) | ||||||
| Treasury stock at cost | (27,175 | ) | (27,175 | ) | ||||||
| Total Shareholders' Equity | 892,333 | 870,709 | ||||||||
| Total Liabilities and Equity | $ | 1,643,008 | $ | 1,561,875 | ||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||
| (unaudited) | ||||||||||
| January 1, 2014 | January 1, 2013 | |||||||||
| to | to | |||||||||
| (dollars in thousands, except share data) | March 31, 2014 | March 31, 2013 | ||||||||
| Revenues | ||||||||||
| Rental income | $ | 69,953 | $ | 59,562 | ||||||
| Other operating income | 4,406 | 3,344 | ||||||||
| Management fee income | 1,098 | 973 | ||||||||
| Total operating revenues | 75,457 | 63,879 | ||||||||
| Expenses | ||||||||||
| Property operations and maintenance | 17,064 | 15,125 | ||||||||
| Real estate taxes | 8,066 | 6,419 | ||||||||
| General and administrative | 9,956 | 8,793 | ||||||||
| Acquisition related costs | 2,778 | 486 | ||||||||
| Operating leases of storage facilities | 1,997 | - | ||||||||
| Depreciation and amortization | 11,276 | 10,271 | ||||||||
| Amortization of in-place customer leases | 666 | 931 | ||||||||
| Total operating expenses | 51,803 | 42,025 | ||||||||
| Income from operations | 23,654 | 21,854 | ||||||||
| Other income (expense) | ||||||||||
| Interest expense (A) | (7,343 | ) | (8,457 | ) | ||||||
| Interest income | 6 | - | ||||||||
| Gain on sale of real estate | - | 421 | ||||||||
| Equity in income of joint ventures | 458 | 386 | ||||||||
| Income from continuing operations | 16,775 | 14,204 | ||||||||
| Income from discontinued operations | - | 168 | ||||||||
| Net income | 16,775 | 14,372 | ||||||||
| Net income attributable to noncontrolling interests | (102 | ) | (92 | ) | ||||||
| Net income attributable to common shareholders | $ | 16,673 | $ | 14,280 | ||||||
| Earnings per common share attributable to common shareholders - basic | ||||||||||
| Continuing operations | $ | 0.51 | $ | 0.46 | ||||||
| Discontinued operations | $ | - | $ | 0.01 | ||||||
| Earnings per share - basic | $ | 0.51 | $ | 0.47 | ||||||
| Earnings per common share attributable to common shareholders - diluted | ||||||||||
| Continuing operations | $ | 0.51 | $ | 0.46 | ||||||
| Discontinued operations | $ | - | $ | 0.01 | ||||||
| Earnings per share - diluted | $ | 0.51 | $ | 0.47 | ||||||
| Common shares used in basic | ||||||||||
| earnings per share calculation | 32,383,996 | 30,488,853 | ||||||||
| Common shares used in diluted | ||||||||||
| earnings per share calculation | 32,538,429 | 30,654,495 | ||||||||
| Dividends declared per common share | $ | 0.68 | $ | 0.48 | ||||||
| (A) Interest expense for the three months ending March 31 consists of the following | ||||||||||
| Interest expense | $ | 7,148 | $ | 8,248 | ||||||
| Amortization of deferred financing fees | 195 | 209 | ||||||||
| Total interest expense | $ | 7,343 | $ | 8,457 | ||||||
| COMPUTATION OF FUNDS FROM OPERATIONS (FFO) (1) - (unaudited) | ||||||||||
| January 1, 2014 | January 1, 2013 | |||||||||
| to | to | |||||||||
| (dollars in thousands, except share data) | March 31, 2014 | March 31, 2013 | ||||||||
| Net income attributable to common shareholders | $ | 16,673 | $ | 14,280 | ||||||
| Net income attributable to noncontrolling interests | 102 | 92 | ||||||||
| Depreciation of real estate and amortization of intangible | ||||||||||
| assets exclusive of deferred financing fees | 11,716 | 11,001 | ||||||||
| Depreciation of real estate included in discontinued operations | - | 89 | ||||||||
| Depreciation and amortization from unconsolidated joint ventures | 376 | 375 | ||||||||
| Gain on sale of real estate | - | (421 | ) | |||||||
| Funds from operations allocable to noncontrolling | ||||||||||
| interest in Operating Partnership | (176 | ) | (162 | ) | ||||||
| Funds from operations available to common shareholders | 28,691 | 25,254 | ||||||||
| FFO per share - diluted | $ | 0.88 | $ | 0.82 | ||||||
| Non-recurring Adjustments to FFO | ||||||||||
| Acquisition costs expensed | 2,778 | 486 | ||||||||
| Operating leases straight line rent adjustment | 497 | - | ||||||||
| Funds from operations resulting from non-recurring items allocable to noncontrolling | ||||||||||
| interest in Operating Partnership | (20 | ) | (3 | ) | ||||||
| Adjusted funds from operations available to common shareholders | 31,946 | 25,737 | ||||||||
| Adjusted FFO per share - diluted | $ | 0.98 | $ | 0.84 | ||||||
| Common shares - diluted | 32,538,429 | 30,654,495 | ||||||||
| (1) We believe that Funds from Operations (“FFO”) provides relevant and meaningful information about our operating performance that is necessary, along with net earnings and cash flows, for an understanding of our operating results. FFO adds back historical cost depreciation, which assumes the value of real estate assets diminishes predictably in the future. In fact, real estate asset values increase or decrease with market conditions. Consequently, we believe FFO is a useful supplemental measure in evaluating our operating performance by disregarding (or adding back) historical cost depreciation. | |
| Funds from operations is defined by the National Association of Real Estate Investment Trusts, Inc. (“NAREIT”) as net income available to common shareholders computed in accordance with generally accepted accounting principles (“GAAP”), excluding gains or losses on sales of properties, plus impairment of real estate assets, plus depreciation and amortization and after adjustments to record unconsolidated partnerships and joint ventures on the same basis. We believe that to further understand our performance, FFO should be compared with our reported net income and cash flows in accordance with GAAP, as presented in our consolidated financial statements. | |
| Our computation of FFO may not be comparable to FFO reported by other REITs or real estate companies that do not define the term in accordance with the current NAREIT definition or that interpret the current NAREIT definition differently. FFO does not represent cash generated from operating activities determined in accordance with GAAP, and should not be considered as an alternative to net income (determined in accordance with GAAP) as an indication of our performance, as an alternative to net cash flows from operating activities (determined in accordance with GAAP) as a measure of our liquidity, or as an indicator of our ability to make cash distributions. | |
| QUARTERLY SAME STORE DATA (2) * 386 stores owned since 12/31/12 (unaudited) | January 1, 2014 | January 1, 2013 | |||||||||||||
| to | to | Percentage | |||||||||||||
| (dollars in thousands) | March 31, 2014 | March 31, 2013 | Change | Change | |||||||||||
| Revenues: | |||||||||||||||
| Rental income | $ | 63,938 | $ | 59,389 | $ | 4,549 | 7.7 | % | |||||||
| Tenant insurance commissions | 2,290 | 1,668 | 622 | 37.3 | % | ||||||||||
| Other operating income | 1,203 | 1,199 | 4 | 0.3 | % | ||||||||||
| Total operating revenues | 67,431 | 62,256 | 5,175 | 8.3 | % | ||||||||||
| Expenses: | |||||||||||||||
| Payroll and benefits | 6,254 | 6,187 | 67 | 1.1 | % | ||||||||||
| Real estate taxes | 7,058 | 6,394 | 664 | 10.4 | % | ||||||||||
| Utilities | 2,861 | 2,502 | 359 | 14.3 | % | ||||||||||
| Repairs and maintenance | 2,711 | 2,445 | 266 | 10.9 | % | ||||||||||
| Office and other operating expense | 2,420 | 2,418 | 2 | 0.1 | % | ||||||||||
| Insurance | 1,073 | 1,023 | 50 | 4.9 | % | ||||||||||
| Advertising & yellow pages | 357 | 398 | (41 | ) | -10.3 | % | |||||||||
| Total operating expenses | 22,734 | 21,367 | 1,367 | 6.4 | % | ||||||||||
| Net operating income (3) | $ | 44,697 | $ | 40,889 | $ | 3,808 | 9.3 | % | |||||||
| QTD Same store move ins | 38,618 | 38,115 | 503 | ||||||||||||
| QTD Same store move outs | 35,577 | 36,707 | (1,130 | ) | |||||||||||
| OTHER COMPARABLE QUARTERLY SAME STORE DATA * (unaudited) | January 1, 2014 | January 1, 2013 | |||||||||||||
| to | to | Percentage | |||||||||||||
| March 31, 2014 | March 31, 2013 | Change | Change | ||||||||||||
| Stores owned since 12/31/11 (358 stores) (2) | |||||||||||||||
| Revenues | $ | 61,554 | $ | 57,384 | $ | 4,170 | 7.3 | % | |||||||
| Expenses | 20,427 | 19,213 | 1,214 | 6.3 | % | ||||||||||
| Net operating income (3) | $ | 41,127 | $ | 38,171 | $ | 2,956 | 7.7 | % | |||||||
| Stores owned since 12/31/10 (328 stores) (2) | |||||||||||||||
| Revenues | $ | 55,940 | $ | 52,336 | $ | 3,604 | 6.9 | % | |||||||
| Expenses | 18,393 | 17,376 | 1,017 | 5.9 | % | ||||||||||
| Net operating income (3) | $ | 37,547 | $ | 34,960 | $ | 2,587 | 7.4 | % | |||||||
| (2) Includes the stores owned and/or managed by the Company for the entire periods presented that are consolidated in our financial statements. Does not include unconsolidated joint ventures or other stores managed by the Company. | |
|
(3) Net operating income or "NOI" is a non-GAAP (generally accepted accounting principles) financial measure that we define as total continuing revenues less continuing property operating expenses. NOI also can be calculated by adding back to net income: interest expense, impairment and casualty losses, depreciation and amortization expense, acquisition related costs, general and administrative expense, and deducting from net income: income from discontinued operations, interest income, gain on sale of real estate, and equity in income of joint ventures. We believe that NOI is a meaningful measure of operating performance, because we utilize NOI in making decisions with respect to capital allocations, in determining current property values, and comparing period-to-period and market-to-market property operating results. NOI should be considered in addition to, but not as a substitute for, other measures of financial performance reported in accordance with GAAP, such as total revenues, operating income and net income. |
|
| * See exhibit A for supplemental quarterly same store data. |
| OTHER DATA | Same Store (2) | All Stores (4) | ||||||||
|
2014 |
2013 |
2014 |
2013 |
|||||||
| Weighted average quarterly occupancy | 88.9% | 85.8% | 88.7% | 85.7% | ||||||
| Occupancy at March 31 | 89.4% | 86.0% | 89.1% | 86.0% | ||||||
| Rent per occupied square foot | $11.16 | $10.79 | $11.75 | $10.76 | ||||||
| (4) Does not include unconsolidated joint venture stores managed by the Company |
|
Investment in Storage Facilities: (unaudited) |
||||||
| The following summarizes activity in storage facilities during the months ended March 31, 2014: | ||||||
| Beginning balance | $ | 1,864,637 | ||||
| Property acquisitions | 93,854 | |||||
| Improvements and equipment additions: | ||||||
| Expansions | 1,048 | |||||
| Roofing, paving, and equipment: | ||||||
| Stabilized stores | 1,812 | |||||
| Recently acquired stores | 127 | |||||
| Change in construction in progress (Total CIP $11.5 million) | 1,671 | |||||
| Dispositions and Impairments | (90 | ) | ||||
| Storage facilities at cost at period end | $ | 1,963,059 | ||||
|
Comparison of Selected G&A Costs (unaudited) |
Quarter Ended | |||||
|
March 31, 2014 |
March 31, 2013 |
|||||
| Management and administrative salaries and benefits | 5,288 | 4,626 | ||||
| Internet advertising & marketing | 1,420 | 1,054 | ||||
| Training | 273 | 434 | ||||
| Call center | 395 | 382 | ||||
| Uncle Bob's Management costs | 121 | 186 | ||||
| Income taxes | 272 | 332 | ||||
| Other administrative expenses (5) | 2,187 | 1,779 | ||||
| $ | 9,956 | $ | 8,793 | |||
| (5) Other administrative expenses include professional fees, office rent, travel expense, investor relations and miscellaneous other expenses. | ||||||
|
March 31, 2014 |
March 31, 2013 |
|||||
| Common shares outstanding | 32,938,654 | 31,376,265 | ||||
| Operating Partnership Units outstanding | 198,913 | 199,163 | ||||
| Exhibit A | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Sovran Self Storage, Inc. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Same Store Performance Summary | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Three Months Ended March 31, 2014 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (unaudited) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Square |
Avg Qtrly |
Avg Quarterly Occupancy |
Revenue |
Expenses |
NOI |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| State | Stores | 2014 | 2013 | 2014 | 2013 | % Change | 2014 | 2013 | % Change | 2014 | 2013 | % Change | |||||||||||||||||||||||||||||||||||||||||||||||||
| Alabama | 22 | 1,595 | $ | 8.13 | 87.6 | % | 84.0 | % | $ | 3,073 | $ | 2,918 | 5.3 | % | $ | 950 | $ | 959 | -0.9 | % | $ | 2,123 | $ | 1,959 | 8.4 | % | |||||||||||||||||||||||||||||||||||
| Arizona | 10 | 669 | 10.01 | 81.1 | % | 75.0 | % | 1,482 | 1,349 | 9.9 | % | 462 | 490 | -5.7 | % | 1,020 | 859 | 18.7 | % | ||||||||||||||||||||||||||||||||||||||||||
| Connecticut | 5 | 318 | 18.11 | 86.0 | % | 93.0 | % | 1,273 | 1,212 | 5.0 | % | 449 | 424 | 5.9 | % | 824 | 788 | 4.6 | % | ||||||||||||||||||||||||||||||||||||||||||
| Florida | 60 | 3,975 | 11.02 | 88.2 | % | 84.7 | % | 10,250 | 9,434 | 8.6 | % | 3,241 | 3,092 | 4.8 | % | 7,009 | 6,342 | 10.5 | % | ||||||||||||||||||||||||||||||||||||||||||
| Georgia | 28 | 1,949 | 10.12 | 88.4 | % | 78.3 | % | 4,668 | 4,068 | 14.7 | % | 1,453 | 1,396 | 4.1 | % | 3,215 | 2,672 | 20.3 | % | ||||||||||||||||||||||||||||||||||||||||||
| Illinois | 9 | 703 | 12.79 | 84.9 | % | 77.9 | % | 1,988 | 1,740 | 14.3 | % | 967 | 885 | 9.3 | % | 1,021 | 855 | 19.4 | % | ||||||||||||||||||||||||||||||||||||||||||
| Louisiana | 14 | 816 | 10.91 | 91.1 | % | 88.2 | % | 2,135 | 2,028 | 5.3 | % | 551 | 544 | 1.3 | % | 1,584 | 1,484 | 6.7 | % | ||||||||||||||||||||||||||||||||||||||||||
| Maine | 2 | 114 | 12.68 | 90.7 | % | 87.8 | % | 343 | 319 | 7.5 | % | 118 | 119 | -0.8 | % | 225 | 200 | 12.5 | % | ||||||||||||||||||||||||||||||||||||||||||
| Maryland | 3 | 139 | 15.89 | 88.2 | % | 89.1 | % | 504 | 511 | -1.4 | % | 183 | 162 | 13.0 | % | 321 | 349 | -8.0 | % | ||||||||||||||||||||||||||||||||||||||||||
| Massachusetts | 12 | 656 | 14.07 | 89.8 | % | 90.5 | % | 2,180 | 2,048 | 6.4 | % | 829 | 769 | 7.8 | % | 1,351 | 1,279 | 5.6 | % | ||||||||||||||||||||||||||||||||||||||||||
| Mississippi | 12 | 916 | 9.38 | 89.2 | % | 87.1 | % | 2,029 | 1,936 | 4.8 | % | 571 | 567 | 0.7 | % | 1,458 | 1,369 | 6.5 | % | ||||||||||||||||||||||||||||||||||||||||||
| Missouri | 8 | 515 | 11.51 | 88.1 | % | 89.5 | % | 1,369 | 1,289 | 6.2 | % | 503 | 482 | 4.4 | % | 866 | 807 | 7.3 | % | ||||||||||||||||||||||||||||||||||||||||||
| New Hampshire | 4 | 261 | 11.39 | 91.8 | % | 89.5 | % | 711 | 655 | 8.5 | % | 236 | 218 | 8.3 | % | 475 | 437 | 8.7 | % | ||||||||||||||||||||||||||||||||||||||||||
| New Jersey | 2 | 121 | 17.48 | 89.4 | % | 79.4 | % | 493 | 410 | 20.2 | % | 209 | 216 | -3.2 | % | 284 | 194 | 46.4 | % | ||||||||||||||||||||||||||||||||||||||||||
| New York | 28 | 1,681 | 13.93 | 90.1 | % | 85.4 | % | 5,540 | 5,233 | 5.9 | % | 2,048 | 1,898 | 7.9 | % | 3,492 | 3,335 | 4.7 | % | ||||||||||||||||||||||||||||||||||||||||||
| North Carolina | 19 | 1,155 | 9.91 | 91.4 | % | 87.3 | % | 2,767 | 2,478 | 11.7 | % | 760 | 748 | 1.6 | % | 2,007 | 1,730 | 16.0 | % | ||||||||||||||||||||||||||||||||||||||||||
| Ohio | 16 | 1,089 | 9.76 | 88.7 | % | 87.1 | % | 2,483 | 2,324 | 6.8 | % | 837 | 773 | 8.3 | % | 1,646 | 1,551 | 6.1 | % | ||||||||||||||||||||||||||||||||||||||||||
| Pennsylvania | 4 | 220 | 9.90 | 91.9 | % | 88.0 | % | 521 | 494 | 5.5 | % | 193 | 164 | 17.7 | % | 328 | 330 | -0.6 | % | ||||||||||||||||||||||||||||||||||||||||||
| Rhode Island | 4 | 206 | 12.27 | 90.3 | % | 83.8 | % | 627 | 577 | 8.7 | % | 305 | 230 | 32.6 | % | 322 | 347 | -7.2 | % | ||||||||||||||||||||||||||||||||||||||||||
| South Carolina | 8 | 449 | 10.35 | 89.5 | % | 85.3 | % | 1,107 | 997 | 11.0 | % | 376 | 365 | 3.0 | % | 731 | 632 | 15.7 | % | ||||||||||||||||||||||||||||||||||||||||||
| Tennessee | 4 | 291 | 9.99 | 89.6 | % | 90.0 | % | 681 | 661 | 3.0 | % | 239 | 249 | -4.0 | % | 442 | 412 | 7.3 | % | ||||||||||||||||||||||||||||||||||||||||||
| Texas | 94 | 6,704 | 11.45 | 90.4 | % | 89.1 | % | 18,143 | 16,676 | 8.8 | % | 6,282 | 5,676 | 10.7 | % | 11,861 | 11,000 | 7.8 | % | ||||||||||||||||||||||||||||||||||||||||||
| Virginia | 18 | 1,236 | 11.19 | 84.5 | % | 82.9 | % | 3,064 | 2,899 | 5.7 | % | 972 | 941 | 3.3 | % | 2,092 | 1,958 | 6.8 | % | ||||||||||||||||||||||||||||||||||||||||||
| Portfolio Total | 386 | 25,778 | $ | 11.16 | 88.9 | % | 85.8 | % | $ | 67,431 | $ | 62,256 | 8.3 | % | $ | 22,734 | $ | 21,367 | 6.4 | % | $ | 44,697 | $ | 40,889 | 9.3 | % | |||||||||||||||||||||||||||||||||||
| Properties owned since 12/31/12 (detail shown above) | 386 | 25,778 | 11.16 | 88.9 | % | 85.8 | % | 67,431 | 62,256 | 8.3 | % | 22,734 | 21,367 | 6.4 | % | 44,697 | 40,889 | 9.3 | % | ||||||||||||||||||||||||||||||||||||||||||
| Properties owned since 12/31/11 | 358 | 23,578 | 11.07 | 89.4 | % | 87.5 | % | 61,554 | 57,384 | 7.3 | % | 20,427 | 19,213 | 6.3 | % | 41,127 | 38,171 | 7.7 | % | ||||||||||||||||||||||||||||||||||||||||||
| Properties owned since 12/31/10 | 328 | 21,757 | 10.91 | 89.2 | % | 87.3 | % | 55,940 | 52,336 | 6.9 | % | 18,393 | 17,376 | 5.9 | % | 37,547 | 34,960 | 7.4 | % | ||||||||||||||||||||||||||||||||||||||||||
| Dollars in thousands except for average quarterly rent per occupied square foot. Square feet in thousands. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Exhibit B | |||||||||||||||||||||||||||||||||||||||
| Sovran Self Storage, Inc. | |||||||||||||||||||||||||||||||||||||||
| Debt Maturity Schedule | |||||||||||||||||||||||||||||||||||||||
| March 31, 2014 | |||||||||||||||||||||||||||||||||||||||
| (unaudited) | |||||||||||||||||||||||||||||||||||||||
| Current | |||||||||||||||||||||||||||||||||||||||
| Maturity | Basis of | Interest | |||||||||||||||||||||||||||||||||||||
| (dollars in thousands) | Date | Rate | Rate (1) | 2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | Total | |||||||||||||||||||||||||||||
| Line of credit (2) | Jun-2018 | Variable | 1.65 | % | $ | - | $ | - | $ | - | $ | - | $ | 115,000 | $ | - | $ | 115,000 | |||||||||||||||||||||
| Term note | Apr-2016 | Fixed | 6.38 | % | - | - | 150,000 | - | - | - | 150,000 | ||||||||||||||||||||||||||||
| Term note | Jun-2020 | Swapped to fixed | 4.02 | % | - | - | - | - | - | 125,000 | 125,000 | ||||||||||||||||||||||||||||
| Term note | Jun-2020 | Swapped to fixed | 3.26 | % | - | - | - | - | - | 100,000 | 100,000 | ||||||||||||||||||||||||||||
| Term note | Jun-2020 | Swapped to fixed | 3.02 | % | - | - | - | - | - | 100,000 | 100,000 | ||||||||||||||||||||||||||||
| Term note | Aug-2021 | Fixed | 5.54 | % | - | - | - | - | - | 100,000 | 100,000 | ||||||||||||||||||||||||||||
| Mortgage note | May-2026 | Fixed | 5.99 | % | 95 | 134 | 142 | 151 | 160 | 1,541 | 2,223 | ||||||||||||||||||||||||||||
| $ | 95 | $ | 134 | $ | 150,142 | $ | 151 | $ | 115,160 | $ | 426,541 | $ | 692,223 | ||||||||||||||||||||||||||
| (1) Rate as of March 31, 2014 based on existing debt rating. Interest rates shown do not include amortization of financing fees and facility fees which are expected to be $1.1 million in 2014. | |
| (2) Line of credit balance was completely paid down on April 8, 2014 with the proceeds of a $175 million 10 year term note maturing April 2024 bearing interest at a fixed rate of 4.533% based on the Company's current credit rating. | |
