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 September 30, 2012.
Uncle Bob's Self Storage recently purchased this self storage facility in Chicago, IL. (Photo: Business Wire)
Net income available to common shareholders for the third quarter of 2012 was $18.8 million or $0.63 per fully diluted share. For the same period in 2011, net income available to common shareholders was $2.3 million, or $0.08 per fully diluted common share. The 2012 results include a gain on sale of assets of $4.5 million, and the 2011 results were impacted by refinancing costs further described below. Funds from operations (FFO) for the quarter were $0.85 per fully diluted common share compared to $0.41 for the same period last year. The Company incurred net acquisition costs of $1.1 million in connection with the properties it acquired during the quarter as compared to $3.0 million in the third quarter of 2011. Further, the Company incurred costs of $5.6 million in connection with a debt refinancing transaction in August, 2011. Absent these acquisition and financing costs, FFO per share was $0.88 and $0.72 for the third 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 third quarter of 2012. David Rogers, the Company’s Chief Executive Officer, commented, “We enjoyed a great summer season. Our web based marketing platform is driving high levels of sales inquiries, our revenue management system is driving strong occupancy and our call center reps and store personnel are taking great care of our customers.”