Sovran Self Storage Reports Second Quarter Results, Adjusted FFO per Share Increases 14.9%, Guidance Raised


    sss1Sovran Self Storage, Inc. (NYSE:SSS), a self storage real estate investment trust (REIT), reported operating results for the quarter ended June 30, 2014. Net income available to common shareholders for the second quarter of 2014 was $20.6 million or $0.62 per fully diluted common share. For the same period in 2013, net income available to common shareholders was $17.9 million, or $0.57 per fully diluted common share. Funds from operations (FFO) for the quarter were $1.00 per fully diluted common share compared to $0.94 for the same period last year. In the second quarter of 2014, the Company incurred net acquisition costs of $2.0 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 second quarter of 2013, the Company incurred no such costs or adjustments. Absent these charges, adjusted FFO per share was $1.08 and $0.94 for the second quarter of 2014 and 2013, respectively. Improved occupancies and rising rental rates more than offset the anticipated increases in property taxes, repair and maintenance and utilities, resulting in the strong FFO growth. “This spring’s leasing season has proven to be a good one, and we’ve been able to achieve strong rate growth across all of our markets” said David Rogers, the Company’s CEO. “We hit our best ever earnings level this quarter, and we are on pace to beat our all-time high for occupancy and rental rates later this summer.” OPERATIONS: Total revenues increased 19.9% over last year’s second quarter, while operating costs increased 16.9%, resulting in an NOI (3) increase of 21.2%. Overall occupancy averaged 90.7% for the period and rental rates increased 8.3% to an average of $11.79 per sq. ft. Revenues for the 386 stores wholly owned by the Company since January 1, 2013 increased 8.6% from those of the second quarter of 2013, the result of a 270 basis point increase in average occupancy, a 4.4% increase in rental rates and strong growth in insurance commissions. Same store operating expenses increased 5.7% for the second quarter of 2014 compared to the prior year period, primarily the result of increased property tax charges of 12.1%. Repair and maintenance costs were also higher than expected due to the extended harsh winter. Consequently, same store net operating income increased 10.0% this period over the second quarter of 2013. General and administrative expenses increased by approximately $1.4 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 second quarter of 2014, the Company experienced significant same store revenue and NOI growth in every state in which it operates. The stores with the strongest revenue impact include those in Texas, Florida, New York, Illinois, and Georgia. Click Here to Read Entire Report…. About Sovran Self Storage, Inc. Sovran Self Storage, Inc. is an equity REIT that is in the business of acquiring and managing self storage facilities. The Company operates over 500 self storage facilities in 25 states under the name Uncle Bob’s Self Storage®. For more information, visit, like us on Facebook, or follow us on Twitter. (via Businesswire)  ]]>


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