Sovran Self Storage Reports Second Quarter Results; Company Acquires $43 Million Of Assets, Achieves Same Store NOI Growth Of 8.6%

Sovran Self Storage, Inc. (NYSE:SSS), ( www.unclebobs.com/company) a self storage real estate investment trust (REIT), reported operating results for the quarter ended June 30, 2012.

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.

Continuing decreases in utility costs, 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 1.2%.

Consequently, same store net operating income increased 8.6% this period over the second quarter of 2011.

General and administrative expenses grew by approximately $2.0 million over the same period in 2011, primarily due to increased internet advertising, personnel and training costs.

During the second quarter of 2012, the stores with the strongest revenue impact include those in New England , North Carolina, Texas and Florida. The Company’s storage facilities in Phoenix, Arizona experienced modest declines.

PROPERTIES:

The Company acquired four properties during the quarter - one each in its existing markets of Miami, FL and Norfolk, VA; and two storage facilities in Chicago, IL, a new market for the Company. The properties were acquired at a cost of $43.0 million and added approximately 311,000 net rentable square feet of storage space to the portfolio. Subsequent to the end of the quarter, a property in Atlanta, Georgia was acquired at a cost of $8.5 million. The Company now operates 17 stores in the Atlanta metro area.

“We’ve been interested in Chicago for some time, and these two stores are a perfect entry point – they’re large, modern, “Class A” properties that are very well positioned in their markets”, commented Rogers. “We hope to add to this foothold in the near future.”

Also subsequent to the end of the quarter, the Company sold its four remaining properties in Michigan, and its one store in Salisbury, Maryland for total net proceeds of $13.5 million.

CAPITAL TRANSACTIONS:

The Company did not enter any significant debt origination or repayment agreements during the quarter. A table detailing outstanding maturities and interest rates is shown as Exhibit B.
          Illustrated below are key financial ratios at June 30, 2012:    
 

- Debt to Enterprise Value (at $50.09/share)

30.4%

- Debt to Book Cost of Storage Facilities

39.7%

- Debt to EBITDA Ratio

5.1x

- Debt Service Coverage

3.7x
 

At June 30, 2012, the Company had approximately $7.5 million of cash on hand, and $105 million available on its line of credit (without considering the additional $75 million available under the expansion feature).

On September 14, 2011, the Company announced an “at the market” equity issuance program. During the second quarter of 2012, the Company issued 386,491 shares pursuant to this program at an average price per share of $50.64, netting $19.2 million.

YEAR 2012 EARNINGS GUIDANCE:

Management is encouraged by greater customer traffic and resiliency in most markets. An increase in same store revenue of 4.5% to 5.0% is projected from that of 2011. Property operating costs are projected to increase by 0% to 2%, including an expected 4% annual increase in property taxes. Accordingly, the Company anticipates an increase of 6% to 7% in same store net operating income for 2012.

The Company intends to spend up to $20 million on its expansion and enhancement program. It has also budgeted $14 million to provide for recurring capitalized expenditures including roofing, paving, and office renovations.

Future purchases and dispositions of properties in 2012 are not expected to significantly impact guidance inasmuch as the Company expects to sell approximately as much as it acquires, at least through the end of the third quarter. Acquisitions that may be made in the fourth quarter will not have a significant impact on the year’s results, and have not been considered in issuing guidance. The acquisition costs relating to any purchases made in 2012 are not included in core guidance.

General and administrative expenses are expected to increase to $30 - $31 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 June 30, 2012, all but $70 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 June 30, 2012, the Company had 29.4 million shares of common stock outstanding and 0.34 million Operating Partnership Units outstanding.

As a result of the above assumptions, management expects funds from operations for the full year 2012 to be approximately $3.15 to $3.19 per share, and between $0.81 and $0.83 per share for the third quarter of 2012.

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 Second Quarter Earnings Release Conference Call at 9:00 a.m. Eastern Time on Thursday, August 2, 2012. 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 pass codes 286/397145.

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 447 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)
 
June 30, December 31,
(dollars in thousands) 2012       2011
Assets
Investment in storage facilities:
Land $ 278,774 $ 270,542
Building, equipment and construction in progress   1,357,723     1,311,405  
1,636,497 1,581,947
Less: accumulated depreciation   (321,253 )   (302,865 )
Investment in storage facilities, net 1,315,244 1,279,082
Cash and cash equivalents 7,461 7,321
Accounts receivable 3,052 2,991
Receivable from joint venture 490 589
Investment in joint venture 34,363 31,939
Prepaid expenses 5,256 3,950
Intangible asset - in-place customer leases (net of accumulated
amortization of $8,841 in 2012 and $7,019 in 2011) 1,544 2,523
Other assets 4,227 4,850
Net assets of discontinued operations   11,126     11,361  
Total Assets $ 1,382,763   $ 1,344,606  
 
Liabilities
Line of credit $ 70,000 $ 46,000
Term notes 575,000 575,000
Accounts payable and accrued liabilities 26,618 32,207
Deferred revenue 7,124 6,223
Fair value of interest rate swap agreements 14,957 10,748
Mortgages payable   4,339     4,423  
Total Liabilities 698,038 674,601
 
Noncontrolling redeemable Operating Partnership Units at redemption value 16,982 14,466
 
Equity
Common stock 306 301
Additional paid-in capital 884,658 862,467
Accumulated deficit (175,563 ) (169,799 )
Accumulated other comprehensive loss (14,483 ) (10,255 )
Treasury stock at cost   (27,175 )   (27,175 )
Total Shareholders' Equity   667,743     655,539  
Total Liabilities and Equity $ 1,382,763   $ 1,344,606  
 

         
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
April 1, 2012 April 1, 2011
to to
(dollars in thousands, except share data) June 30, 2012       June 30, 2011
 
Revenues
Rental income $ 54,583 $ 47,449
Other operating income 3,280 2,281
Management fee income   869     388  
Total operating revenues 58,732 50,118
 
Expenses
Property operations and maintenance 13,668 12,716
Real estate taxes 5,738 4,983
General and administrative 7,970 5,935
Acquisition related costs 1,300 93
Depreciation and amortization 9,457 8,420
Amortization of in-place customer leases   940     141  
Total operating expenses   39,073     32,288  
 
Income from operations 19,659 17,830
 
Other income (expense)
Interest expense (A) (8,311 ) (8,082 )
Interest income - 8
Equity in income of joint ventures   205     64  
 
Income from continuing operations 11,553 9,820
Income from discontinued operations   307     260  
Net income 11,860 10,080
Net income attributable to noncontrolling interests   (139 )   (343 )
Net income attributable to common shareholders $ 11,721   $ 9,737  
 
Earnings per common share attributable to common shareholders - basic
Continuing operations $ 0.40 $ 0.34
Discontinued operations $ 0.01   $ 0.01  
Earnings per share - basic $ 0.41   $ 0.35  
 
Earnings per common share attributable to common shareholders - diluted
Continuing operations $ 0.39 $ 0.34
Discontinued operations $ 0.01   $ 0.01  
Earnings per share - diluted $ 0.40   $ 0.35  
 
Common shares used in basic
earnings per share calculation 28,883,464 27,559,992
 
Common shares used in diluted
earnings per share calculation 29,000,996 27,611,237
 
Dividends declared per common share $ 0.4500   $ 0.4500  
 
 
(A) Interest expense for the three months ending June 30 consists of the following
Interest expense $ 8,102 $ 7,746
Amortization of deferred financing fees   209     336  
Total interest expense $ 8,311   $ 8,082  
 

         
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
January 1, 2012 January 1, 2011
to to
(dollars in thousands, except share data) June 30, 2012       June 30, 2011
 
Revenues
Rental income $ 107,262 $ 94,054
Other operating income 6,165 4,353
Management fee income 1,674 705
Acquisition fee income   146     -  
Total operating revenues 115,247 99,112
 
Expenses
Property operations and maintenance 27,545 26,038
Real estate taxes 11,438 9,965
General and administrative 15,535 11,707
Acquisition related costs 1,307 135
Depreciation and amortization 18,726 16,809
Amortization of in-place customer leases   1,822     282  
Total operating expenses   76,373     64,936  
 
Income from operations 38,874 34,176
 
Other income (expense)
Interest expense (A) (16,565 ) (15,979 )
Interest income 3 26
Equity in income of joint ventures   273     104  
 
Income from continuing operations 22,585 18,327
Income from discontinued operations   544     454  
Net income 23,129 18,781
Net income attributable to noncontrolling interests   (270 )   (784 )
Net income attributable to common shareholders $ 22,859   $ 17,997  
 
Earnings per common share attributable to common shareholders - basic
Continuing operations $ 0.77 $ 0.64
Discontinued operations $ 0.02   $ 0.01  
Earnings per share - basic $ 0.79   $ 0.65  
 
Earnings per common share attributable to common shareholders - diluted
Continuing operations $ 0.77 $ 0.64
Discontinued operations $ 0.02   $ 0.01  
Earnings per share - diluted $ 0.79   $ 0.65  
 
Common shares used in basic
earnings per share calculation 28,834,564 27,548,635
 
Common shares used in diluted
earnings per share calculation 28,939,366 27,594,336
 
Dividends declared per common share $ 0.9000   $ 0.9000  
 
 
(A) Interest expense for the six months ending June 30 consists of the following
Interest expense $ 16,147 $ 15,386
Amortization of deferred financing fees   418     593  
Total interest expense $ 16,565   $ 15,979  
 

         
COMPUTATION OF FUNDS FROM OPERATIONS (FFO) (1) - (unaudited)
 
April 1, 2012 April 1, 2011
to to
(dollars in thousands, except share data) June 30, 2012       June 30, 2011
 
Net income attributable to common shareholders $ 11,721 $ 9,737
Net income attributable to noncontrolling interests 139 343
Depreciation of real estate and amortization of intangible
assets exclusive of deferred financing fees 10,305 8,561
Depreciation of real estate included in discontinued operations 94 96
Depreciation and amortization from unconsolidated joint ventures 430 199
Funds from operations allocable to noncontrolling
interest in Operating Partnership (266 ) (222 )
Funds from operations allocable to noncontrolling
interest in consolidated joint ventures   -     (227 )
Funds from operations available to common shareholders   22,423     18,487  
FFO per share - diluted $ 0.77 $ 0.67
 
Non-recurring Adjustments to FFO
Acquisition costs expensed 1,300 93
Company's share of acquisition costs expensed by Sovran HHF Storage Holdings II 15 -
Funds from operations resulting from non-recurring items allocable to noncontrolling
interest in Operating Partnership   (15 )   (1 )
Adjusted funds from operations available to common shareholders   23,723     18,579  
Adjusted FFO per share - diluted $ 0.82 $ 0.67
 
Common shares - diluted 29,000,996 27,611,237
 
 
January 1, 2012 January 1, 2011
to to
(dollars in thousands, except share data) June 30, 2012       June 30, 2011
 
Net income attributable to common shareholders $ 22,859 $ 17,997
Net income attributable to noncontrolling interests 270 784
Depreciation of real estate and amortization of intangible
assets exclusive of deferred financing fees 20,364 17,091
Depreciation of real estate included in discontinued operations 188 191
Depreciation and amortization from unconsolidated joint ventures 820 397
Funds from operations allocable to noncontrolling
interest in Operating Partnership (520 ) (428 )
Funds from operations allocable to noncontrolling
interest in consolidated joint ventures   -     (567 )
Funds from operations available to common shareholders   43,981     35,465  
FFO per share - diluted $ 1.52 $ 1.29
 
Non-recurring Adjustments to FFO
Acquisition costs expensed 1,307 135
Company's share of acquisition costs expensed by Sovran HHF Storage Holdings II 162 -
Acquisition fee income from Sovran HHF Storage Holdings II (146 ) -
Funds from operations resulting from non-recurring items allocable to noncontrolling -
interest in Operating Partnership   (15 )   (2 )
Adjusted funds from operations available to common shareholders   45,289     35,598  
Adjusted FFO per share - diluted $ 1.56 $ 1.29
 
Common shares - diluted 28,939,366 27,594,336
 

(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) * April 1, 2012 April 1, 2011
to to Percentage
(dollars in thousands) June 30, 2012       June 30, 2011 Change       Change
 
Revenues:
Rental income $ 49,393 $ 47,350 $ 2,043 4.3 %
Tenant insurance commissions 1,388 980 408 41.6 %
Other operating income   1,259   1,163   96   8.3 %
Total operating revenues 52,040 49,493 2,547 5.1 %
 
Expenses:
Payroll and benefits 5,350 5,251 99 1.9 %
Real estate taxes 5,109 4,969 140 2.8 %
Utilities 2,026 2,089 (63 ) -3.0 %
Repairs and maintenance 1,776 1,717 59 3.4 %
Office and other operating expense 1,904 2,018 (114 ) -5.6 %
Insurance 807 803 4 0.5 %
Advertising & yellow pages   435   765   (330 ) -43.1 %
Total operating expenses   17,407   17,612   (205 ) -1.2 %
 
Net operating income (3) $ 34,633 $ 31,881 $ 2,752   8.6 %
 
 
QTD Same store move ins 44,220 37,609 6,611 17.6 %
 
QTD Same store move outs 33,498 33,521 (23 ) -0.1 %
 

(2) Includes the 345 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 five stores sold in July 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, amounts attributable to noncontrolling interests, 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 (2) January 1, 2012 January 1, 2011
to to Percentage
(dollars in thousands) June 30, 2012       June 30, 2011 Change       Change
 
Revenues:
Rental income $ 97,329 $ 93,874 $ 3,455 3.7 %
Tenant insurance commissions 2,668 1,895 773 40.8 %
Other operating income   2,388     2,196     192     8.7 %
Total operating revenues 102,385 97,965 4,420 4.5 %
 
Expenses:
Payroll and benefits 10,748 10,549 199 1.9 %
Real estate taxes 10,218 9,938 280 2.8 %
Utilities 4,086 4,341 (255 ) -5.9 %
Repairs and maintenance 3,725 3,815 (90 ) -2.4 %
Office and other operating expense 3,780 4,025 (245 ) -6.1 %
Insurance 1,615 1,594 21 1.3 %
Advertising & yellow pages   956     1,573     (617 )   -39.2 %
Total operating expenses   35,128     35,835     (707 )   -2.0 %
 
Net operating income (3) $ 67,257   $ 62,130   $ 5,127     8.3 %
 
 
YTD Same store move ins 80,412 69,580 10,832 15.6 %
 
YTD Same store move outs 65,592 66,095 (503 ) -0.8 %
 
 
OTHER DATA Same Store (2) All Stores (4)
2012 2011 2012 2011
 
Weighted average quarterly occupancy 85.7 % 79.9 % 85.6 % 80.0 %
 
Occupancy at June 30 87.5 % 80.4 % 87.4 % 80.5 %
 
Rent per occupied square foot $ 10.23 $ 10.58 $ 10.31 $ 10.56
 
(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 six months ended June 30, 2012:
 
Beginning balance $ 1,581,947
Property acquisitions 42,167
Improvements and equipment additions:
Expansions 13,595
Roofing, paving, and equipment:
Stabilized stores 5,258
Recently acquired stores 862
Change in construction in progress (Total CIP $8.1 million) (6,342 )
Dispositions and Impairments   (990 )
Storage facilities at cost at period end $ 1,636,497  
 
 

Comparison of Selected G&A Costs
Quarter Ended
June 30, 2012 June 30, 2011
 
Management and administrative salaries and benefits 3,761 2,662
Internet advertising & marketing 1,215 718
Training 305 206
Call center 390 351
Uncle Bob's Management costs 108 74
Income taxes 557 511
Other administrative expenses (5)   1,634     1,413  
$ 7,970   $ 5,935  
 
(5) Other administrative expenses include professional fees, office rent, travel expense, investor relations and miscellaneous other expenses.
 
 
June 30, 2012 June 30, 2011
 
Common shares outstanding 29,396,351 27,699,279
Operating Partnership Units outstanding 339,025 339,025
 

 
Exhibit A
                                                       
Sovran Self Storage, Inc.
 
Same Store Performance Summary
Three Months Ended June 30, 2012
(unaudited)
 
 
Avg Quarterly
Avg Qtrly Occupancy for the Revenue for the Expenses for the NOI for the Three
Rent per Three Months Ended

Three Months Ended
Three Months Ended Months Ended
Square Occupied June 30,

June 30,
      June 30,       June 30,      
State     Stores    

Feet
   

Square Foot
    2012     2011 2012     2011     % Change 2012     2011     % Change 2012     2011     % Change
 
Alabama 22 1,609 $ 7.97 81.8 % 77.4 % $ 2,835 $ 2,742 3.39 % $ 941 $ 969 -2.89 % $ 1,894 $ 1,773 6.82 %
Arizona 9 514 10.02 88.1 % 82.6 % 1,215 1,226 -0.90 % 373 416 -10.34 % 842 810 3.95 %
Connecticut 5 301 16.73 90.3 % 81.2 % 1,171 1,085 7.93 % 347 354 -1.98 % 824 731 12.72 %
Florida 53 3,465 10.15 82.5 % 76.3 % 7,696 7,327 5.04 % 2,739 2,847 -3.79 % 4,957 4,480 10.65 %
Georgia 22 1,408 9.23 85.2 % 78.1 % 2,949 2,797 5.43 % 994 978 1.64 % 1,955 1,819 7.48 %
Louisiana 14 867 10.25 88.4 % 82.3 % 2,077 1,950 6.51 % 603 602 0.17 % 1,474 1,348 9.35 %
Maine 2 113 11.70 88.0 % 80.6 % 306 284 7.75 % 91 95 -4.21 % 215 189 13.76 %
Maryland 3 139 15.73 91.5 % 89.1 % 515 493 4.46 % 166 156 6.41 % 349 337 3.56 %
Massachusetts 12 664 12.85 86.6 % 82.0 % 1,954 1,841 6.14 % 622 645 -3.57 % 1,332 1,196 11.37 %
Mississippi 12 919 8.97 85.6 % 80.9 % 1,872 1,882 -0.53 % 588 566 3.89 % 1,284 1,316 -2.43 %
Missouri 7 432 11.19 91.3 % 84.8 % 1,148 1,094 4.94 % 394 394 0.00 % 754 700 7.71 %
New Hampshire 4 261 10.88 84.5 % 82.7 % 627 607 3.29 % 199 196 1.53 % 428 411 4.14 %
New York 28 1,675 13.36 86.4 % 86.3 % 5,018 4,857 3.31 % 1,559 1,548 0.71 % 3,459 3,309 4.53 %
North Carolina 18 1,037 9.22 82.3 % 71.1 % 2,066 1,858 11.19 % 709 712 -0.42 % 1,357 1,146 18.41 %
Ohio 17 1,132 8.90 87.7 % 85.0 % 2,319 2,251 3.02 % 759 794 -4.41 % 1,560 1,457 7.07 %
Pennsylvania 4 220 9.90 85.0 % 86.8 % 478 449 6.46 % 160 149 7.38 % 318 300 6.00 %
Rhode Island 4 190 12.00 77.3 % 81.6 % 491 466 5.36 % 196 182 7.69 % 295 284 3.87 %
South Carolina 8 436 9.56 88.5 % 81.9 % 982 939 4.58 % 374 358 4.47 % 608 581 4.65 %
Tennessee 4 291 8.95 94.9 % 90.4 % 646 602 7.31 % 247 251 -1.59 % 399 351 13.68 %
Texas 81 5,870 9.95 87.5 % 79.9 % 13,339 12,495 6.75 % 4,670 4,672 -0.04 % 8,669 7,823 10.81 %
Virginia 16 1,020 10.74 81.7 % 77.0 % 2,336 2,248 3.91 % 676 728 -7.14 % 1,660 1,520 9.21 %
                                                                         
Portfolio Total     345     22,563     $ 10.23     85.7 %     79.9 % $ 52,040     $ 49,493     5.15 % $ 17,407     $ 17,612     -1.16 % $ 34,633     $ 31,881     8.63 %
 
Dollars in thousands except for average quarterly rent per occupied square foot. Square feet in thousands.
345 wholly owned same stores.
 

                                       
Exhibit B
 
Sovran Self Storage, Inc.
 
Debt Maturity Schedule
June 30, 2012
(unaudited)
 
Current
Maturity Basis of Interest
(dollars in thousands)     Date     Rate     Rate (1)     2012     2013     2014     2015     2016     Thereafter     Total
 
Line of credit Aug-2016 Variable 2.24 % $ - $ - $ - $ - $ 70,000 $ - $ 70,000
 
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 % 14 896 - - - - 910
Mortgage note Mar-2014 Fixed 6.35 % 16 34 949 - - - 999
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 % 58 119 126 134 142 1,851 2,430
                                     
$ 88 $ 101,049 $ 1,075 $ 134 $ 220,142 $ 326,851 $ 649,339
 
 
(1) Rate as of June 30, 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 2012.

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