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Sovran Self Storage, Inc. (NYSE:SSS), (
self storage real estate investment trust (REIT), reported operating results for the quarter ended March 31, 2012.
Net income available to common shareholders for the first quarter of 2012 was $11.1 million or $0.39 per fully diluted share. For the same period in 2011, net income available to common shareholders was $8.3 million, or $0.30 per fully diluted common share.
Funds from operations (FFO) for the quarter were $0.75 per fully diluted common share compared to $0.62 for the same period last year.
Stronger occupancy, lower operating costs and the reduced use of move-in incentives contributed to the increase in FFO for the first quarter of 2012.
David Rogers, the Company’s Chief Executive Officer, commented, “Our rentals were very strong this quarter – we gained over 3 percentage points of occupancy during what is traditionally our slowest time of the year. Our revenue management system and our web based marketing programs have positioned us extremely well, and we’re gaining market share as a result.”
Total revenues increased 15.2% over last year’s first quarter, while property operating costs increased 6.8%, resulting in an NOI
(3) increase of 20.3%. Overall occupancy averaged 81.8% for the period and rental rates averaged $10.49 per sq. ft.
Revenues for the 350 stores wholly owned by the Company for the entire quarter of each year increased 3.9% from those of the first quarter of 2011, the result of an increase in average occupancy from 79.3% to 82.0%, and strong growth in other revenues, primarily insurance commissions.
A decrease in utility costs, snowplowing expenses, credit card fees and yellow page advertising, offset by modest increases in property taxes and personnel costs, contributed to an overall reduction in operating costs of 2.8%.
Consequently, same store net operating income increased 7.9% this period over the first quarter of 2011.