Net income available to common shareholders for the second quarter of 2012 was $11.7 million or $0.40 per fully diluted share. For the same period in 2011, net income available to common shareholders was $9.7 million, or $0.35 per fully diluted common share.
Funds from operations (FFO) for the quarter were $0.77 per fully diluted common share compared to $0.67 for the same period last year. The Company incurred net acquisition costs of $1.3 million in connection with the properties it acquired during the quarter as compared to $0.1 million in the second quarter of 2011. Absent these acquisition costs, FFO per share was $0.82 and $0.67 for the second quarter of 2012 and 2011, respectively.
Stronger occupancy, lower operating costs and the reduced use of move-in incentives contributed to the increase in FFO for the second quarter of 2012.David Rogers, the Company’s Chief Executive Officer, commented, “We’ve been enjoying a terrific lease-up season – our same-store occupancy grew by over seven percentage points at the end of this June over last June. We’ve been able to grow share in most of our markets, primarily as a result of our web-based marketing strategy, our revenue management system and our outstanding customer service platform.” The Company acquired four premium self storage facilities during the quarter, and one more in mid-July. Also subsequent to the end of the quarter, the Company sold five non-strategic properties. OPERATIONS: Total revenues increased 17.2% over last year’s second quarter, while property operating costs increased 9.6%, resulting in an NOI (3) increase of 21.3%. Overall occupancy averaged 85.6% for the period and rental rates averaged $10.31 per sq. ft. Revenues for the 345 stores wholly owned by the Company for the entire quarter of each year increased 5.1% from those of the second quarter of 2011, the result of an increase in average occupancy from 79.9% to 85.7%, and strong growth in other revenues, primarily insurance commissions.