Sovran Self Storage Reports Fourth Quarter Results; Same Store Revenues Increase 8.2%

BUFFALO, N.Y.--()--Sovran Self Storage, Inc. (NYSE:SSS), (www.unclebobs.com/company) a self storage real estate investment trust (REIT), reported operating results for the quarter and year ended December 31, 2012.

Net income available to common shareholders for the fourth quarter of 2012 was $13.5 million or $0.44 per fully diluted share. For the same period in 2011, net income available to common shareholders was $10.3 million, or $0.37 per fully diluted common share.

Funds from operations (FFO) for the quarter were $0.77 per fully diluted common share compared to $0.73 for the same period last year. The Company incurred net acquisition costs of $1.9 million in connection with its property purchases in the fourth quarter of 2012; in the fourth quarter of 2011, it incurred acquisition costs of $0.3 million. Absent these acquisition charges, FFO per share was $0.83 and $0.74 for the fourth quarter of 2012 and 2011, respectively.

Strong demand, improved occupancies and the reduced use of move-in incentives contributed to the increase in FFO for the fourth quarter of 2012.

David Rogers, the Company’s CEO, commented, “We had a very good quarter which capped off an exceptional year. We’re pleased with the continued strong performance of our core stores, and we are delighted with the new properties we acquired in December.”

OPERATIONS:

Total revenues increased 13.9% over last year’s fourth quarter, while operating costs increased 8.4%, resulting in an NOI (3) increase of 16.8%. Overall occupancy averaged 86.2% for the period and rental rates improved to an average of $10.73 per sq. ft.

Revenues for the 361 stores wholly owned by the Company for the entire quarter of each year increased 8.2% from those of the fourth quarter of 2011, the result of a 590 basis point increase in average occupancy and strong growth in insurance commissions.

Same store operating expenses increased 1.8% for the fourth quarter of 2012 compared to the prior year period, the result of increased property tax charges of 9.3% offsetting a decrease in all other operating costs of 0.8%.

Consequently, same store net operating income increased 11.7% this period over the fourth quarter of 2011.

General and administrative expenses grew by approximately $1.0 million over the same period in 2011, primarily due to increased salaries and internet advertising offset by a reduction in taxes associated with our taxable REIT subsidiary as a result of solar tax credits.

During the fourth quarter of 2012, the Company experienced positive same store revenue growth in every state in which it operates. The stores with the strongest revenue impact include those in Texas, Florida, North Carolina, and Georgia.

For the full year 2012, same store revenues increased by 6.3% and same store NOI improved by 10.3%. Same store occupancy at December 31st increased by 550 basis points to 87.0% from that of December 31, 2011.

PROPERTIES:

As previously announced, the Company acquired 14 self storage properties late in the fourth quarter of 2012: six self storage facilities in Chicago, IL; four in Southwest Florida; three in Austin, TX; and one in Phoenix, AZ. The stores were acquired via six separate transactions at a total cost of $83 million and were funded through advances on the Company’s line of credit.

The properties total approximately one million square feet and complement the Company’s existing portfolio as all are located in markets in which the Company already has a presence.

During 2012, the Company acquired a total of 28 stores for its own portfolio at a cost of $189 million. It also added 17 properties via its Uncle Bob’s Management platform.

CAPITAL TRANSACTIONS:

Illustrated below are key financial ratios at December 31, 2012:

        - Debt to Enterprise Value (at $62.10/share)         26.4%
- Debt to Book Cost of Storage Facilities 39.0%
- Debt to EBITDA Ratio 5.4x
- Debt Service Coverage 3.0x
 

At December 31, 2012, the Company had approximately $7.3 million of cash on hand, and $70 million available on its line of credit (without considering the additional $75 million available under the expansion feature).

YEAR 2013 EARNINGS GUIDANCE:

Management is encouraged by greater customer traffic and resiliency in most markets. The following assumptions covering operations have been utilized in formulating guidance for the first quarter and full year 2013:

         

Same Store

Projected Increases Over 2012

1Q 2013

     

Full Year 2013

 
Revenue 6.0 – 7.0% 4.5 – 5.0%
 
Operating Cost (excluding property taxes) 3.5 – 4.0% 3.5 – 4.5%
Property Taxes

3.5 – 4.0%

4.5 – 5.0%

Total Operating Expenses 3.25– 3.75% 4.0 – 4.75%
 
Net Operating Income 7.5 – 8.5% 5.0 – 5.5%
 

The Company intends to spend up to $25 million on its expansion and enhancement program. It has also budgeted $13 million to provide for recurring capitalized expenditures including roofing, paving, and office renovations.

Purchases of properties made in 2013 are not expected to significantly impact guidance inasmuch as the Company expects to invest in both low occupancy turn-around opportunities as well as stabilized properties. Accordingly, neither the NOI nor the acquisition costs relating to any acquisitions that may be made in 2013 is included in guidance.

General and administrative expenses are expected to increase to approximately $34 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 and revenue management programs.

At December 31, 2012, all but $105 million of the Company’s debt is either fixed rate or covered by rate swap contracts that essentially fix the rate. Subsequent borrowings that may occur will be pursuant to the Company’s Line of Credit agreement at a floating rate of LIBOR plus 2.0%.

At December 31, 2012, the Company had 30.4 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 2013 to be approximately $3.46 to $3.50 per share, and between $0.80 and $0.82 per share for the first quarter of 2013.

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 Fourth Quarter Earnings Release Conference Call at 9:00 a.m. Eastern Time on Thursday, February 14, 2013. 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 407404.

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 461 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)
         
December 31, December 31,
(dollars in thousands) 2012       2011
Assets
Investment in storage facilities:
Land $ 299,544 $ 263,407
Building, equipment and construction in progress   1,456,410     1,275,188  
1,755,954 1,538,595
Less: accumulated depreciation   (328,952 )   (292,722 )
Investment in storage facilities, net 1,427,002 1,245,873
Cash and cash equivalents 7,255 7,321
Accounts receivable 3,450 2,938
Receivable from joint venture 856 589
Investment in joint venture 34,255 31,939
Prepaid expenses 4,947 3,939
Intangible asset - in-place customer leases (net of accumulated
amortization of $10,337 in 2012 and $7,019 in 2011) 2,891 2,523
Other assets 3,785 4,850
Net assets of discontinued operations   -     43,702  
Total Assets $ 1,484,441   $ 1,343,674  
 
Liabilities
Line of credit $ 105,000 $ 46,000
Term notes 575,000 575,000
Accounts payable and accrued liabilities 36,667 31,414
Deferred revenue 6,416 6,084
Fair value of interest rate swap agreements 15,707 10,748
Mortgages payable   4,251     4,423  
Total Liabilities 743,041 673,669
 
Noncontrolling redeemable Operating Partnership Units at redemption value 12,670 14,466
 
Equity
Common stock 316 301
Additional paid-in capital 943,604 862,467
Accumulated deficit (172,773 ) (169,799 )
Accumulated other comprehensive loss (15,242 ) (10,255 )
Treasury stock at cost   (27,175 )   (27,175 )
Total Shareholders' Equity   728,730     655,539  
Total Liabilities and Equity $ 1,484,441   $ 1,343,674  
 

CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
           
October 1, 2012 October 1, 2011
to to
(dollars in thousands, except share data) December 31, 2012       December 31, 2011
 
Revenues
Rental income $ 57,873 $ 50,745
Other operating income 3,345 3,042
Management fee income   914     766  
Total operating revenues 62,132 54,553
 
Expenses
Property operations and maintenance 14,757 13,972
Real estate taxes 5,601 4,808
General and administrative 8,605 7,643
Acquisition related costs 1,947 230
Impairment of storage facility - 1,047
Depreciation and amortization 9,914 9,000
Amortization of in-place customer leases   517     1,003  
Total operating expenses   41,341     37,703  
 
Income from operations 20,791 16,850
 
Other income (expense)
Interest expense (A) (8,252 ) (8,809 )
Interest income 1 52
Casualty loss - (126 )
Gain on sale of real estate 687 1,511
Equity in income (losses) of joint ventures   327     67  
 
Income from continuing operations 13,554 9,545
Income from discontinued operations   -     837  
Net income 13,554 10,382
Net income attributable to noncontrolling interests   (92 )   (126 )
Net income attributable to common shareholders $ 13,462   $ 10,256  
 
Earnings per common share attributable to common shareholders - basic
Continuing operations $ 0.44 $ 0.34
Discontinued operations $ -   $ 0.03  
Earnings per share - basic $ 0.44   $ 0.37  
 
Earnings per common share attributable to common shareholders - diluted
Continuing operations $ 0.44 $ 0.34
Discontinued operations $ -   $ 0.03  
Earnings per share - diluted $ 0.44   $ 0.37  
 
Common shares used in basic
earnings per share calculation 30,289,256 28,006,221
 
Common shares used in diluted
earnings per share calculation 30,453,059 28,077,773
 
Dividends declared per common share $ 0.4500   $ 0.4500  
 
 
(A) Interest expense for the three months ending December 31 consists of the following
Interest expense $ 8,043 $ 8,557
Amortization of deferred financing fees   209     252  
Total interest expense $ 8,252   $ 8,809  
 

CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
           
January 1, 2012 January 1, 2011
to to
(dollars in thousands, except share data) December 31, 2012       December 31, 2011
 
Revenues
Rental income $ 219,730 $ 190,147
Other operating income 12,633 9,782
Management fee income 3,496 2,111
Acquisition fee income   148     679  
Total operating revenues 236,007 202,719
 
Expenses
Property operations and maintenance 55,751 52,382
Real estate taxes 22,236 19,340
General and administrative 32,313 25,986
Acquisition related costs 4,328 3,278
Impairment of storage facility - 1,047
Depreciation and amortization 37,575 33,597
Amortization of in-place customer leases   3,317     1,570  
Total operating expenses   155,520     137,200  
 
Income from operations 80,487 65,519
 
Other income (expense)
Interest expense (B) (33,166 ) (38,549 )
Interest income 4 83
Casualty loss - (126 )
Gain on sale of real estate 687 1,511
Equity in income (losses) of joint ventures   936     (340 )
 
Income from continuing operations 48,948 28,098
Income from discontinued operations (including gain on sale of $4.5 million in 2012)   6,693     3,431  
Net income 55,641 31,529
Net income attributable to noncontrolling interests   (513 )   (937 )
Net income attributable to common shareholders $ 55,128   $ 30,592  
 
Earnings per common share attributable to common shareholders - basic
Continuing operations $ 1.65 $ 0.99
Discontinued operations $ 0.23   $ 0.12  
Earnings per share - basic $ 1.88   $ 1.11  
 
Earnings per common share attributable to common shareholders - diluted
Continuing operations $ 1.64 $ 0.98
Discontinued operations $ 0.23   $ 0.12  
Earnings per share - diluted $ 1.87   $ 1.10  
 
Common shares used in basic
earnings per share calculation 29,358,312 27,674,207
 
Common shares used in diluted
earnings per share calculation 29,489,025 27,725,119
 
Dividends declared per common share $ 1.8000   $ 1.8000  
 
 
(B) Interest expense for the year ended December 31 consists of the following
Interest expense $ 32,330 $ 31,880
Amortization of deferred financing fees 836 $ 1,096

Write-off of unamortized financing fees related to

$150 million term note repaid 2011 - $ 88
Interest rate swap termination payments   -     5,485  
Total interest expense $ 33,166   $ 38,549  
 

COMPUTATION OF FUNDS FROM OPERATIONS (FFO) (1) - (unaudited)
           
October 1, 2012 October 1, 2011
to to
(dollars in thousands, except share data) December 31, 2012       December 31, 2011
 
Net income attributable to common shareholders $ 13,462 $ 10,256
Net income attributable to noncontrolling interests 92 126
Depreciation of real estate and amortization of intangible
assets exclusive of deferred financing fees 10,324 10,004
Depreciation of real estate included in discontinued operations - 352
Depreciation and amortization from unconsolidated joint ventures 389 381
Impairment of storage facility - 1,047
Casualty loss - 126
Gain on sale of real estate (687 ) (1,511 )
Funds from operations allocable to noncontrolling
interest in Operating Partnership   (160 )   (253 )
Funds from operations available to common shareholders   23,420     20,528  
FFO per share - diluted $ 0.77 $ 0.73
 
Non-recurring Adjustments to FFO
Acquisition costs expensed 1,947 230
Company's share of acquisition costs expensed by Sovran HHF Storage Holdings II - 96
Funds from operations resulting from non-recurring items allocable to noncontrolling
interest in Operating Partnership   (13 )   (4 )
Adjusted funds from operations available to common shareholders   25,354     20,850  
Adjusted FFO per share - diluted $ 0.83 $ 0.74
 
Common shares - diluted 30,453,059 28,077,773
 
 
January 1, 2012 January 1, 2011
to to
(dollars in thousands, except share data) December 31, 2012       December 31, 2011
 
Net income attributable to common shareholders $ 55,128 $ 30,592
Net income attributable to noncontrolling interests 513 937
Depreciation of real estate and amortization of intangible
assets exclusive of deferred financing fees 40,503 35,167
Depreciation of real estate included in discontinued operations 787 1,410
Depreciation and amortization from unconsolidated joint ventures 1,595 1,018
Impairment of storage facility - 1,047
Casualty (gain) loss - 126
Gain on sale of real estate (5,185 ) (1,511 )
Funds from operations allocable to noncontrolling
interest in Operating Partnership (881 ) (812 )
Funds from operations allocable to noncontrolling
interest in consolidated joint ventures   -     (567 )
Funds from operations available to common shareholders   92,460     67,407  
FFO per share - diluted $ 3.14 $ 2.43
 
Non-recurring Adjustments to FFO
Acquisition costs expensed 4,328 3,278
Company's share of acquisition costs expensed by Sovran HHF Storage Holdings II 162 831
Interest rate swap termination payments - 5,485
Write-off of unamortized financing fees related to debt payoff - 88
Acquisition fee income from Sovran HHF Storage Holdings II (146 ) (675 )
Funds from operations resulting from non-recurring items allocable to noncontrolling
interest in Operating Partnership   (37 )   (109 )
Adjusted funds from operations available to common shareholders   96,767     76,305  
Adjusted FFO per share - diluted $ 3.28 $ 2.75
 
Common shares - diluted 29,489,025 27,725,119
 

(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) *     October 1, 2012       October 1, 2011          
to to Percentage
(dollars in thousands) December 31, 2012       December 31, 2011   Change       Change
 
Revenues:
Rental income $ 54,795 $ 50,551 $ 4,244 8.4 %
Tenant insurance commissions 1,540 1,189 351 29.5 %
Other operating income   1,294   1,510   (216 ) -14.3 %
Total operating revenues 57,629 53,250 4,379 8.2 %
 
Expenses:
Payroll and benefits 5,635 5,627 8 0.1 %
Real estate taxes 5,235 4,788 447 9.3 %
Utilities 2,108 2,172 (64 ) -2.9 %
Repairs and maintenance 2,530 2,210 320 14.5 %
Office and other operating expense 2,215 2,364 (149 ) -6.3 %
Insurance 874 814 60 7.4 %
Advertising & yellow pages   382   662   (280 ) -42.3 %
Total operating expenses   18,979   18,637   342   1.8 %
 
Net operating income (3) $ 38,650 $ 34,613 $ 4,037   11.7 %
 
 
QTD Same store move ins 34,181 35,126 (945 ) -2.7 %
 
QTD Same store move outs 36,803 34,975 1,828 5.2 %
 

(2) Includes the 361 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 or the 17 stores sold in 2012.

(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.

YEAR TO DATE SAME STORE DATA (4) **   January 1, 2012       January 1, 2011        
to to Percentage
(dollars in thousands) December 31, 2012       December 31, 2011 Change       Change
 
Revenues:
Rental income $ 195,003 $ 184,200 $ 10,803 5.9 %
Tenant insurance commissions 5,474 4,083 1,391 34.1 %
Other operating income   4,716   4,774   (58 ) -1.2 %
Total operating revenues 205,193 193,057 12,136 6.3 %
 
Expenses:
Payroll and benefits 20,741 20,339 402 2.0 %
Real estate taxes 18,997 18,572 425 2.3 %
Utilities 8,327 8,812 (485 ) -5.5 %
Repairs and maintenance 7,768 7,398 370 5.0 %
Office and other operating expense 7,635 7,866 (231 ) -2.9 %
Insurance 3,007 2,980 27 0.9 %
Advertising & yellow pages   1,654   2,870   (1,216 ) -42.4 %
Total operating expenses   68,129   68,837   (708 ) -1.0 %
 
Net operating income (3) $ 137,064 $ 124,220 $ 12,844   10.3 %
 
 
YTD Same store move ins 147,397 137,986 9,411 6.8 %
 
YTD Same store move outs 137,458 133,842 3,616 2.7 %
 

(4) Includes the 333 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 or the 17 stores sold in 2012.

* See exhibit B for supplemental year-to-date same store data.

OTHER DATA   Same Store (2)       All Stores (4)

2012

     

2011

2012

     

2011

 
Weighted average quarterly occupancy 87.4 % 81.5 % 86.2 % 81.2 %
 
Occupancy at December 31 87.0 % 81.5 % 85.8 % 81.2 %
 
Rent per occupied square foot $ 10.64 $ 10.64 $ 10.73 $ 10.54
 
(4) Does not include unconsolidated joint venture stores managed by the Company
 
 

Investment in Storage Facilities:

The following summarizes activity in storage facilities during the year ended December 31, 2012:
 
Beginning balance $ 1,538,595
Property acquisitions 185,431
Improvements and equipment additions:
Expansions 24,841
Roofing, paving, and equipment:
Stabilized stores 15,768
Recently acquired stores 1,948
Change in construction in progress (Total CIP $8.4 million) (6,031 )
Dispositions and Impairments   (4,598 )
Storage facilities at cost at period end $ 1,755,954  
 
 

Comparison of Selected G&A Costs

Quarter Ended Year-to-Date

December 31, 2012

December 31, 2011

December 31, 2012

December 31, 2011

 
Management and administrative salaries and benefits 5,277 4,363 17,147 13,292
Internet advertising & marketing 910 716 3,848 2,386
Training 424 425 1,315 1,315
Call center 355 349 1,530 1,359
Uncle Bob's Management costs 166 103 481 417
Income taxes (270 ) 190 1,326 1,524
Other administrative expenses (5)   1,743     1,497     6,666     5,693  
$ 8,605   $ 7,643   $ 32,313   $ 25,986  
 
(5) Other administrative expenses include professional fees, office rent, travel expense, investor relations and miscellaneous other expenses.
 
 

December 31, 2012

December 31, 2011

 
Common shares outstanding 30,446,620 28,952,356
Operating Partnership Units outstanding 204,028 339,025
 

Exhibit A
                                     
Sovran Self Storage, Inc.
 
Same Store Performance Summary
Three Months Ended December 31, 2012
(unaudited)
 

Square

Avg Qtrly
Rent per
Occupied

Avg Quarterly Occupancy
for the Three Months Ended
December 31,

Revenue
for the Three Months
Ended December 31,

   

Expenses
for the Three Months
Ended December 31,

   

NOI
for the Three Months
Ended December 31,

   
State   Stores  

Feet

 

Square Foot

  2012   2011 2012   2011   % Change 2012   2011   % Change 2012   2011   % Change
 
Alabama 22 1,648 $ 7.84 83.3 % 77.4 % $ 2,893 $ 2,718 6.44 % $ 907 $ 899 0.89 % $ 1,986 $ 1,819 9.18 %
Arizona 9 539 10.22 85.3 % 86.9 % 1,228 1,200 2.33 % 389 299 30.10 % 839 901 -6.88 %
Connecticut 5 295 16.98 93.0 % 88.1 % 1,205 1,151 4.69 % 357 353 1.13 % 848 798 6.27 %
Florida 53 3,437 10.25 86.6 % 79.5 % 8,102 7,451 8.74 % 2,610 2,566 1.71 % 5,492 4,885 12.43 %
Georgia 23 1,473 9.85 87.7 % 80.4 % 3,366 3,056 10.14 % 1,001 1,075 -6.88 % 2,365 1,981 19.38 %
Louisiana 14 867 10.63 88.1 % 84.3 % 2,145 2,029 5.72 % 616 605 1.82 % 1,529 1,424 7.37 %
Maine 2 113 11.94 87.6 % 77.8 % 311 295 5.42 % 112 105 6.67 % 199 190 4.74 %
Maryland 3 139 16.13 88.6 % 88.9 % 512 495 3.43 % 167 169 -1.18 % 345 326 5.83 %
Massachusetts 12 656 13.18 90.5 % 83.1 % 2,050 1,891 8.41 % 683 693 -1.44 % 1,367 1,198 14.11 %
Mississippi 12 919 9.15 87.5 % 80.9 % 1,932 1,836 5.23 % 579 549 5.46 % 1,353 1,287 5.13 %
Missouri 8 501 10.99 89.3 % 83.7 % 1,277 1,195 6.86 % 432 425 1.65 % 845 770 9.74 %
New Hampshire 4 261 10.64 90.0 % 82.8 % 652 605 7.77 % 203 216 -6.02 % 449 389 15.42 %
New Jersey 3 218 13.91 75.9 % 68.9 % 601 597 0.67 % 306 275 11.27 % 295 322 -8.39 %
New York 28 1,677 13.87 85.4 % 85.8 % 5,394 5,276 2.24 % 1,695 1,670 1.50 % 3,699 3,606 2.58 %
North Carolina 18 1,058 9.34 86.8 % 72.2 % 2,231 1,916 16.44 % 685 780 -12.18 % 1,546 1,136 36.09 %
Ohio 17 1,137 9.38 87.6 % 83.5 % 2,442 2,240 9.02 % 688 739 -6.90 % 1,754 1,501 16.86 %
Pennsylvania 4 220 9.89 86.3 % 87.6 % 484 465 4.09 % 150 146 2.74 % 334 319 4.70 %
Rhode Island 4 207 12.06 82.1 % 84.7 % 551 483 14.08 % 217 209 3.83 % 334 274 21.90 %
South Carolina 8 431 9.90 87.4 % 83.7 % 984 945 4.13 % 315 379 -16.89 % 669 566 18.20 %
Tennessee 4 291 9.59 91.7 % 89.7 % 666 615 8.29 % 257 251 2.39 % 409 364 12.36 %
Texas 91 6,389 10.78 89.9 % 82.7 % 16,063 14,412 11.46 % 5,816 5,501 5.73 % 10,247 8,911 14.99 %
Virginia 17 1,111 10.80 81.4 % 77.9 % 2,540 2,379 6.77 % 794 733 8.32 % 1,746 1,646 6.08 %
                                                   
Portfolio Total   361   23,587   $ 10.64   87.4 %   81.5 % $ 57,629   $ 53,250   8.22 % $ 18,979   $ 18,637   1.84 % $ 38,650   $ 34,613   11.66 %
 
Dollars in thousands except for average quarterly rent per occupied square foot. Square feet in thousands.
361 wholly owned same stores.
 

Exhibit B
                     
Sovran Self Storage, Inc.
 
Same Store Performance Summary
Twelve Months Ended December 31, 2012
(unaudited)
 
 

Square

Revenue
for the Twelve Months
Ended December 31,

   

Expenses
for the Twelve Months
Ended December 31,

   

NOI
for the Twelve Months
Ended December 31,

   
State   Stores  

Feet

2012   2011   % Change 2012   2011   % Change 2012   2011   % Change
 
Alabama 22 1,648 $ 11,426 $ 10,994 3.93 % $ 3,769 $ 3,852 -2.15 % $ 7,657 $ 7,142 7.21 %
Arizona 9 539 4,924 4,882 0.86 % 1,571 1,593 -1.38 % 3,353 3,289 1.95 %
Connecticut 5 295 4,742 4,417 7.36 % 1,451 1,521 -4.60 % 3,291 2,896 13.64 %
Florida 53 3,437 31,444 29,525 6.50 % 10,919 11,138 -1.97 % 20,525 18,387 11.63 %
Georgia 22 1,404 12,086 11,220 7.72 % 3,933 4,055 -3.01 % 8,153 7,165 13.79 %
Louisiana 14 867 8,433 7,887 6.92 % 2,450 2,425 1.03 % 5,983 5,462 9.54 %
Maine 2 113 1,234 1,147 7.59 % 425 418 1.67 % 809 729 10.97 %
Maryland 3 139 2,051 1,973 3.95 % 669 661 1.21 % 1,382 1,312 5.34 %
Massachusetts 12 656 7,985 7,473 6.85 % 2,675 2,785 -3.95 % 5,310 4,688 13.27 %
Mississippi 12 919 7,589 7,457 1.77 % 2,318 2,266 2.29 % 5,271 5,191 1.54 %
Missouri 7 428 4,581 4,366 4.92 % 1,589 1,631 -2.58 % 2,992 2,735 9.40 %
New Hampshire 4 261 2,566 2,425 5.81 % 812 845 -3.91 % 1,754 1,580 11.01 %
New York 28 1,677 20,621 19,820 4.04 % 6,664 6,665 -0.02 % 13,957 13,155 6.10 %
North Carolina 18 1,058 8,486 7,478 13.48 % 2,806 2,931 -4.26 % 5,680 4,547 24.92 %
Ohio 17 1,137 9,512 9,011 5.56 % 3,039 3,184 -4.55 % 6,473 5,827 11.09 %
Pennsylvania 4 220 1,927 1,821 5.82 % 628 612 2.61 % 1,299 1,209 7.44 %
Rhode Island 4 207 2,079 1,890 10.00 % 814 786 3.56 % 1,265 1,104 14.58 %
South Carolina 8 431 3,946 3,770 4.67 % 1,402 1,463 -4.17 % 2,544 2,307 10.27 %
Tennessee 4 291 2,597 2,412 7.67 % 995 1,008 -1.29 % 1,602 1,404 14.10 %
Texas 69 4,958 47,628 44,163 7.85 % 16,387 16,162 1.39 % 31,241 28,001 11.57 %
Virginia 16 1,020 9,336 8,926 4.59 % 2,813 2,836 -0.81 % 6,523 6,090 7.11 %
                                       
Portfolio Total   333   21,705   $ 205,193   $ 193,057   6.29 % $ 68,129   $ 68,837   -1.03 % $ 137,064   $ 124,220   10.34 %
 
Dollars in thousands. Square feet in thousands.
333 wholly owned same stores.
 

Exhibit C
                                                         
Sovran Self Storage, Inc.
 
Debt Maturity Schedule
December 31, 2012
(unaudited)
 
Current
Maturity Basis of Interest
(dollars in thousands)     Date       Rate       Rate (1)       2013       2014       2015       2016       2017       Thereafter       Total
 
Line of credit Aug-2016 Variable 2.21 % $ - $ - $ - $ 105,000 $ - $ - $ 105,000
 
Term note Sep-2013 Swapped to fixed 5.94 % 20,000 - - - - - 20,000
Term note Sep-2013 Fixed 6.26 % 80,000 - - - - - 80,000
Mortgage note Sep-2013 Fixed 6.76 % 896 - - - - - 896
Mortgage note Mar-2014 Fixed 6.35 % 34 949 - - - - 983
Term note Apr-2016 Fixed 6.38 % - - - 150,000 - - 150,000
Term note Aug-2018 Swapped to fixed 4.37 % - - - - - 125,000 125,000
Term note Aug-2018 Swapped to fixed 3.61 % - - - - - 100,000 100,000
Term note Aug-2021 Fixed 5.54 % - - - - - 100,000 100,000
Mortgage note May-2026 Fixed 5.99 % 119 126 134 142 151 1,700 2,372
                                                 
$ 101,049 $ 1,075 $ 134 $ 255,142 $ 151 $ 326,700 $ 684,251
 
(1) Rate as of December 31, 2012 based on existing debt rating. Interest rates shown do not include amortization of financing fees and facility fees which are expected to be $1.2 million in 2013.

Contacts

Sovran Self Storage, Inc
Diane Piegza, 716-650-6115
Vice President-Corporate Communications

Uncle Bob's Self Storage recently renovated a San Antonio storage facility located at 6015 Tezel Road San Antonio, TX 78250 (Photo: Business Wire)

Uncle Bob's Self Storage recently renovated a San Antonio storage facility located at 6015 Tezel Road San Antonio, TX 78250 (Photo: Business Wire)

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Release Summary

During 2012 Sovran Self Storage, Inc. added 45 self storage facilities to its brand, Uncle Bob’s Self Storage. The company announced same store operating revenues of 6.3% for the year ending 2012..

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Contacts

Sovran Self Storage, Inc
Diane Piegza, 716-650-6115
Vice President-Corporate Communications