Sovran Self Storage, Inc. (NYSE:SSS), (
real estate investment trust (REIT), reported operating results for the quarter and year ended December 31, 2012.
Uncle Bob's Self Storage recently renovated a San Antonio storage facility located at 6015 Tezel Road San Antonio, TX 78250 (Photo: Business Wire)
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.”
Total revenues increased 13.9% over last year’s fourth quarter, while operating costs increased 8.4%, resulting in an NOI
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.