Maryland | 001-37351 | 46-5053858 |
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Exhibit Number | Description |
99.1 | First Quarter 2015 Earnings Release dated June 4, 2015 |
NATIONAL STORAGE AFFILIATES TRUST | |||
By: | /s/ TAMARA D. FISCHER | ||
Tamara D. Fischer | |||
Executive Vice President and Chief Financial Officer |
Page | |
Earnings Release | |
Consolidated Statements of Operations | |
Consolidated Balance Sheets | |
Schedule 1 - Funds From Operations and Core Funds From Operations | |
Schedule 2 - Other Non-GAAP Financial Measurements | |
Schedule 3 - Portfolio Summary | |
Schedule 4 - Debt and Capitalization | |
Schedule 5 - Occupancy By State | |
Schedule 6 - Same Store Performance Summary | |
Schedule 7 - Reconciliation of Same Store Data and Net Operating Income to Income from Operations | |
Schedule 8 - Selected Financial Information | |
Glossary | |
• | Completed an IPO of its common shares of beneficial interest on April 28, 2015. |
• | Achieved core funds from operations ("Core FFO") of $4.4 million, or $0.21 per operating partnership ("OP") unit for the first quarter of 2015. |
• | Increased net operating income ("NOI") to $18.4 million for the first quarter of 2015 compared to $8.2 million in the first quarter of 2014. |
• | Increased same store NOI by 9.4%, driven by an average occupancy gain of 260 basis points and an average annualized rental revenue per occupied square foot increase of 4.5% for the first quarter of 2015 compared to the first quarter of 2014. |
• | Acquired six self storage properties during the first quarter of 2015 for approximately $41 million. |
• | Invested approximately $93 million in the acquisition of 21 properties in connection with the completion of the Company's IPO and formation transactions during the second quarter of 2015. |
($ in thousands, except per share and unit data) | First Quarter | ||||||
2015 | 2014 | ||||||
Net loss | $ | (2,771 | ) | $ | (2,803 | ) | |
Funds From Operations (FFO) | 3,760 | 372 | |||||
Add back acquisition, organizational and offering expenses | 657 | 417 | |||||
Core Funds From Operations (Core FFO) | $ | 4,417 | $ | 789 | |||
FFO per share and unit | $ | 0.18 | $ | 0.04 | |||
Core FFO per share and unit | $ | 0.21 | $ | 0.09 |
($ in thousands, except per square foot data) | First Quarter | ||||||
2015 | 2014 | ||||||
Total revenue | $ | 28,291 | $ | 13,161 | |||
Property operating expenses | 9,842 | 4,922 | |||||
Net Operating Income (NOI) | $ | 18,449 | $ | 8,239 | |||
Average annualized rental revenue per occupied square foot | $ | 10.41 | $ | 9.32 | |||
Average annualized contractual rent per occupied square foot | $ | 10.40 | $ | 9.36 |
($ in thousands, except per square foot data) | First Quarter | ||||||
2015 | 2014 | ||||||
Total revenue | $ | 14,055 | $ | 13,027 | |||
Property operating expenses | 5,028 | 4,777 | |||||
Net Operating Income (NOI) | $ | 9,027 | $ | 8,250 | |||
Average annualized rental revenue per occupied square foot | $ | 9.74 | $ | 9.32 | |||
Average annualized contractual rent per occupied square foot | $ | 9.64 | $ | 9.39 |
Effective Rate as of March 31, 2015 | Principal | ||||
Unsecured Term Loan | 5.18% | $ | 50,000 | ||
Variable rate mortgages payable | 4.69% | 83,500 | |||
Revolving line of credit | 2.78% | 96,300 | |||
Total/Weighted Average | 4.00% | $ | 229,800 | ||
Three Months Ended March 31, | |||||||
2015 | 2014 | ||||||
REVENUE | |||||||
Rental revenue | $ | 27,418 | $ | 12,856 | |||
Other property-related revenue | 873 | 305 | |||||
Total revenue | 28,291 | 13,161 | |||||
OPERATING EXPENSES | |||||||
Property operating expenses | 9,842 | 4,922 | |||||
General and administrative expenses | 3,613 | 1,338 | |||||
Depreciation and amortization | 9,877 | 3,837 | |||||
Total operating expenses | 23,332 | 10,097 | |||||
Income from operations | 4,959 | 3,064 | |||||
OTHER INCOME (EXPENSE) | |||||||
Interest expense | (6,982 | ) | (5,446 | ) | |||
Acquisition costs | (599 | ) | (182 | ) | |||
Organizational and offering expenses | (58 | ) | (235 | ) | |||
Non-operating expense | (91 | ) | (4 | ) | |||
Other income (expense) | (7,730 | ) | (5,867 | ) | |||
Net loss | (2,771 | ) | (2,803 | ) | |||
Net loss attributable to noncontrolling interests | 2,771 | 2,803 | |||||
Net loss attributable to National Storage Affiliates Trust | $ | — | $ | — | |||
Earnings (loss) per share (basic and diluted) | $ | — | $ | — | |||
Weighted average shares outstanding (basic and diluted) | 1,000 | 1,000 |
March 31, | December 31, | ||||||
2015 | 2014 | ||||||
ASSETS | |||||||
Real estate | |||||||
Self storage properties | $ | 879,631 | $ | 838,941 | |||
Less accumulated depreciation | (45,961 | ) | (39,614 | ) | |||
Self storage properties, net | 833,670 | 799,327 | |||||
Cash and cash equivalents | 8,328 | 9,009 | |||||
Restricted cash | 2,446 | 2,120 | |||||
Debt issuance costs, net | 5,755 | 6,346 | |||||
Other assets, net | 14,239 | 15,944 | |||||
Total assets | $ | 864,438 | $ | 832,746 | |||
LIABILITIES AND EQUITY | |||||||
Liabilities | |||||||
Debt financing | $ | 618,290 | $ | 597,691 | |||
Accounts payable and accrued liabilities | 13,752 | 10,012 | |||||
Distributions payable | — | 6,763 | |||||
Deferred revenue | 4,606 | 4,176 | |||||
Total liabilities | 636,648 | 618,642 | |||||
Equity | |||||||
Common shares of beneficial interest, par value $0.01 per share. 1,000 shares authorized; 1,000 shares issued and outstanding | — | — | |||||
Retained earnings | — | — | |||||
Total shareholder's equity | — | — | |||||
Noncontrolling interests | 227,790 | 214,104 | |||||
Total equity | 227,790 | 214,104 | |||||
Total liabilities and equity | $ | 864,438 | $ | 832,746 |
Supplemental Schedule 1 | |||||||
Funds From Operations and Core Funds From Operations | |||||||
(in thousands, except per share and unit amounts) (unaudited) | |||||||
Three Months Ended March 31, | |||||||
2015 | 2014 | ||||||
Net loss | $ | (2,771 | ) | $ | (2,803 | ) | |
Add (subtract): | |||||||
Real estate depreciation and amortization | 9,806 | 3,801 | |||||
Distributions on subordinated performance units (1) | (3,275 | ) | (626 | ) | |||
FFO attributable to common shareholders and OP unitholders | 3,760 | 372 | |||||
Add: | |||||||
Acquisition costs | 599 | 182 | |||||
Organizational and offering expenses | 58 | 235 | |||||
Core FFO attributable to common shareholders and OP unitholders | $ | 4,417 | $ | 789 | |||
Weighted average shares and units outstanding - FFO and Core FFO: (2) | |||||||
Weighted average shares outstanding - basic | 1 | 1 | |||||
Weighted average operating partnership units outstanding (3) | 19,205 | 9,263 | |||||
Weighted average DownREIT operating partnership unit equivalents outstanding | 1,386 | — | |||||
Total weighted average shares and units outstanding - FFO and Core FFO | 20,592 | 9,264 | |||||
FFO per share and unit | $ | 0.18 | $ | 0.04 | |||
Core FFO per share and unit | $ | 0.21 | $ | 0.09 | |||
(1) Distributions to subordinated performance unitholders classified as noncontrolling interests are included as an adjustment to eliminate the noncontrolling interests’ share of FFO for purposes of calculating FFO attributable to common shareholders and OP and DownREIT OP unitholders. Amounts represent distributions declared for subordinated performance unitholders and DownREIT subordinated performance unitholders for the periods presented. These distributions were declared and paid to unitholders of record as of March 31, 2015 and 2014 during the periods subsequent to March 31, 2015 and 2014, respectively, and therefore the amounts are not reflected in the historical financial statements for the periods presented. | |||||||
(2) We combine OP units and DownREIT OP units with common shares because, after the applicable lock-out periods, OP units in our operating partnership are redeemable for cash or, at our option, exchangeable for common shares on a one-for-one basis and DownREIT OP units are also redeemable for cash or, at our option, exchangeable for OP units in our operating partnership on a one-for-one basis, subject to certain adjustments in each case. Subordinated performance units, DownREIT subordinated performance units, and LTIP units may also, under certain circumstances, be convertible into or exchangeable for common shares (or other units that are convertible into or exchangeable for common shares). Subordinated performance units and DownREIT subordinated units have been excluded from the calculations of FFO and Core FFO per share and unit as their effect is anti-dilutive. LTIP units have been excluded from the calculations of FFO and Core FFO per share and unit because such units did not participate in distributions prior to our Company’s initial public offering. | |||||||
(3) Amount for the three months March 31, 2014 includes 2,060,711 OP units issued in connection with the contribution of 65 self storage properties on April 1, 2014 by SecurCare Portfolio Holdings, LLC and SecurCare Value Properties, Ltd. (collectively, "NSA Predecessor"), entities whose principal owner is the Company's chief executive officer. For financial reporting purposes, NSA Predecessor contributions are reported as a reorganization of entities under common control whereby the contributed self storage properties are included in the Company's results of operations for the three months March 31, 2014 and have been recorded in the Company's financial statements at NSA Predecessor's depreciated historical cost basis. |
Supplemental Schedule 2 | |||||||
Other Non-GAAP Financial Measurements | |||||||
(dollars in thousands) (unaudited) | |||||||
Net Operating Income | |||||||
Three Months Ended March 31, | |||||||
2015 | 2014 | ||||||
Net loss | $ | (2,771 | ) | $ | (2,803 | ) | |
Add: | |||||||
General and administrative expenses | 3,613 | 1,338 | |||||
Depreciation and amortization | 9,877 | 3,837 | |||||
Interest expense | 6,982 | 5,446 | |||||
Acquisition costs | 599 | 182 | |||||
Organizational and offering expenses | 58 | 235 | |||||
Non-operating expense | 91 | 4 | |||||
Net Operating Income | $ | 18,449 | $ | 8,239 |
EBITDA and Adjusted EBITDA | |||||||
Three Months Ended March 31, | |||||||
2015 | 2014 | ||||||
Net loss | $ | (2,771 | ) | $ | (2,803 | ) | |
Add: | |||||||
Depreciation and amortization | 9,877 | 3,837 | |||||
Interest expense | 6,982 | 5,446 | |||||
EBITDA | 14,088 | 6,480 | |||||
Add: | |||||||
Acquisition costs | 599 | 182 | |||||
Organizational and offering expenses | 58 | 235 | |||||
Equity-based compensation expense (1) | 638 | 342 | |||||
Adjusted EBITDA | $ | 15,383 | $ | 7,239 | |||
(1) Equity-based compensation expense is a non-cash item that is included in general and administrative expenses in our condensed consolidated statements of operations. |
Supplemental Schedule 3 | |||||||||||||||
Portfolio Summary | |||||||||||||||
As of March 31, 2015 | |||||||||||||||
(unaudited) | |||||||||||||||
Stores | Units | Rentable Square Feet | % of Rentable Square Feet | Occupancy at Period End | |||||||||||
Same Store | |||||||||||||||
Texas | 31 | 9,391 | 1,221,088 | 9.9 | % | 86.3 | % | ||||||||
Oklahoma | 26 | 12,230 | 1,630,324 | 13.2 | % | 86.8 | % | ||||||||
Oregon | 26 | 9,572 | 1,198,728 | 9.7 | % | 91.3 | % | ||||||||
North Carolina | 15 | 6,578 | 767,799 | 6.2 | % | 78.7 | % | ||||||||
Georgia | 14 | 4,469 | 561,006 | 4.5 | % | 87.4 | % | ||||||||
Colorado | 8 | 3,741 | 453,166 | 3.7 | % | 88.4 | % | ||||||||
Washington | 5 | 1,580 | 207,149 | 1.7 | % | 91.9 | % | ||||||||
Other (1) | 11 | 4,373 | 536,674 | 4.2 | % | 78.2 | % | ||||||||
Same Store Total/Weighted Average | 136 | 51,934 | 6,575,934 | 53.1 | % | 86.2 | % | ||||||||
2014 Acquisitions | 83 | 42,137 | 5,450,461 | 44.0 | % | 84.6 | % | ||||||||
2015 Acquisitions (2) | 6 | 3,409 | 363,939 | 2.9 | % | 86.0 | % | ||||||||
Non-Same Store Total/Weighted Average | 89 | 45,546 | 5,814,400 | 46.9 | % | 84.7 | % | ||||||||
Total/Weighted Average | 225 | 97,480 | 12,390,334 | 100.0 | % | 85.5 | % |
(1) Other states in our same store portfolio include Arizona, California, Mississippi, New Hampshire, Nevada, and South Carolina. | ||||||
(2) The six self storage properties were acquired for an investment of $41.0 million. |
Supplemental Schedule 4 | |||||||||||||||
Debt and Capitalization | |||||||||||||||
(dollars in thousands) (unaudited) | |||||||||||||||
Subsequent to March 31, 2015, NSA completed an initial public offering of 23,000,000 common shares of beneficial interest, $.01 par value per share, at a price of $13.00 per share, including shares issued pursuant to the underwriters’ option to purchase additional shares which was exercised in full, and received proceeds of approximately $273 million, net of underwriting discounts and other estimated transactions costs. NSA used the net proceeds to repay an aggregate of approximately $230 million of indebtedness and acquire 21 self storage properties for approximately $42 million in cash and approximately $23 million of operating partnership and subordinated performance units, with the assumption of approximately $31 million of outstanding mortgages (including approximately $2.0 million of debt premium). The tables below present NSA's historical debt and capitalization as of March 31, 2015, and an illustration of the effect of the issuance of the common shares, indebtedness repayments, reduced borrowing rates as a result of reduced overall leverage, and acquisitions as if the transactions had occurred as of March 31, 2015. | |||||||||||||||
Debt Balances and Characteristics | |||||||||||||||
As of March 31, 2015 | As Adjusted | ||||||||||||||
Interest Rate (1) | Weighted Average Maturity (In Years) | Balance | Interest Rate (1) | Weighted Average Maturity (In Years) | Balance | ||||||||||
Credit Facility: | |||||||||||||||
Revolving line of credit | 2.78% | 2.00 | $ | 182,217 | 2.46% | 2.00 | $ | 85,917 | |||||||
Term loan | 3.65% | 3.00 | 144,558 | 2.86% | 3.00 | 144,558 | |||||||||
Unsecured term loan | 5.18% | 0.50 | 50,000 | — | — | — | |||||||||
Related party note | 3.30% | 0.33 | 4,054 | 3.30% | 0.33 | 4,054 | |||||||||
Fixed rate mortgages payable | 4.07% | 6.67 | 153,961 | 3.94% | 6.52 | 184,508 | |||||||||
Variable rate mortgages payable | 4.69% | 0.26 | 83,500 | — | — | — | |||||||||
Total/Weighted Average | 3.76% | 3.03 | $ | 618,290 | 3.26% | 4.32 | $ | 419,037 |
Equity Interests | ||||||||
As of March 31, 2015 | As Adjusted | |||||||
Outstanding | Outstanding | If Converted (2) | ||||||
Common shares of beneficial interest | 1,000 | 23,000,000 | 23,000,000 | |||||
Total shares outstanding (basic) | 1,000 | 23,000,000 | 23,000,000 | |||||
Operating partnership units | 19,235,556 | 20,705,654 | 20,705,654 | |||||
DownREIT operating partnership unit equivalents | 1,415,349 | 1,415,349 | 1,415,349 | |||||
Total operating partnership units | 20,650,905 | 22,121,003 | 22,121,003 | |||||
Long term incentive plan units (3) | — | 2,211,913 | 2,211,913 | |||||
Subordinated performance units | 8,886,097 | 9,232,067 | 9,139,746 | |||||
DownREIT subordinated performance unit equivalents | 3,688,205 | 3,688,205 | 3,651,323 | |||||
Total subordinated partnership units | 12,574,302 | 12,920,272 | 12,791,069 | |||||
Total shares and units outstanding (diluted) | 33,226,207 | 60,253,188 | 60,123,985 | |||||
(1) Effective interest rate incorporates the stated rate plus the impact of interest rate swaps and discount and premium amortization, if applicable. For the revolving line of credit, the effective interest rate also includes fees which range from 0.20% to 0.30% for unused borrowings. | ||||||||
(2) Balance assumes that each subordinated performance unit (including each DownREIT subordinated performance unit) is convertible into OP units, notwithstanding the two-year lock out period on conversions, and that each subordinated performance unit would on average convert on a hypothetical basis into an estimated 0.99 OP units based on pro forma December 31, 2014 financial information. The hypothetical conversions are calculated by dividing the average cash available for distribution, or CAD, per subordinated performance unit on a pro forma basis over the one-year period ended December 31, 2014 by 110% of the CAD per OP unit on a pro forma basis over the same period. We anticipate that as our CAD grows over time, the conversion ratio will also grow, including to levels that may exceed these amounts. | ||||||||
(3) Balance as of March 31, 2015 excludes 2,201,640 long term incentive plan units as they did not participate in dividend distributions prior to the Company's initial public offering. Historical and as adjusted balances exclude 522,900 long term incentive plan units which only vest and participate in dividend distributions upon the future contribution of properties from the PROs. |
Supplemental Schedule 5 | ||||||||||||
Occupancy By State | ||||||||||||
Three months ended March 31, 2015 compared to Three months ended March 31, 2014 | ||||||||||||
(unaudited) | ||||||||||||
SAME STORE PORTFOLIO | ||||||||||||
Rentable Square Feet | Occupancy at Period End | |||||||||||
State | Stores | Units | March 31, 2015 | March 31, 2014 | Growth | |||||||
Texas | 31 | 9,391 | 1,221,088 | 86.3 | % | 82.9 | % | 3.4 | % | |||
Oklahoma | 26 | 12,230 | 1,630,324 | 86.8 | % | 84.1 | % | 2.7 | % | |||
Oregon | 26 | 9,572 | 1,198,728 | 91.3 | % | 88.8 | % | 2.5 | % | |||
North Carolina | 15 | 6,578 | 767,799 | 78.7 | % | 79.8 | % | (1.1 | )% | |||
Georgia | 14 | 4,469 | 561,006 | 87.4 | % | 77.7 | % | 9.7 | % | |||
Colorado | 8 | 3,741 | 453,166 | 88.4 | % | 88.1 | % | 0.3 | % | |||
Washington | 5 | 1,580 | 207,149 | 91.9 | % | 84.1 | % | 7.8 | % | |||
Other | 11 | 4,373 | 536,674 | 78.2 | % | 77.8 | % | 0.4 | % | |||
Total/Weighted Average | 136 | 51,934 | 6,575,934 | 86.2 | % | 83.4 | % | 2.8 | % | |||
TOTAL PORTFOLIO | ||||||||
Rentable Square Feet | Occupancy as of March 31, 2015 | |||||||
State | Stores | Units | ||||||
Texas | 45 | 17,503 | 2,472,261 | 82.8 | % | |||
Oklahoma | 26 | 12,230 | 1,630,324 | 86.8 | % | |||
Oregon | 50 | 19,654 | 2,467,545 | 90.8 | % | |||
North Carolina | 19 | 8,163 | 973,183 | 81.8 | % | |||
Georgia | 16 | 5,289 | 676,891 | 88.0 | % | |||
Colorado | 8 | 3,741 | 453,166 | 88.4 | % | |||
Washington | 13 | 4,517 | 569,902 | 89.8 | % | |||
California | 28 | 16,429 | 1,978,159 | 84.2 | % | |||
Arizona | 10 | 5,943 | 657,815 | 78.1 | % | |||
Other (1) | 10 | 4,011 | 511,088 | 79.6 | % | |||
Total/Weighted Average | 225 | 97,480 | 12,390,334 | 85.5 | % | |||
(1) Other states in our total portfolio include Mississippi, New Hampshire, Nevada, and South Carolina. |
Supplemental Schedule 6 | ||||||||||||||||||||||||||||||||||||||||||||||||
Same Store Performance Summary | ||||||||||||||||||||||||||||||||||||||||||||||||
Three months ended March 31, 2015 compared to Three months ended March 31, 2014 | ||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands, except per square foot data) (unaudited) | ||||||||||||||||||||||||||||||||||||||||||||||||
Rentable Square Feet | Average Annualized Rental Revenue per Occupied Square Foot | Average Occupancy for the Three Months Ended March 31, | Total Revenue for the Three Months Ended March 31, | Operating Expenses for the Three Months Ended March 31, | Net Operating Income for the Three Months Ended March 31, | Net Operating Income Margin for the Three Months Ended March 31, | ||||||||||||||||||||||||||||||||||||||||||
State | Stores | 2015 | 2014 | Growth | 2015 | 2014 | Growth | 2015 | 2014 | Growth | 2015 | 2014 | Growth | 2015 | 2014 | Growth | ||||||||||||||||||||||||||||||||
Texas | 31 | 1,221,088 | $ | 9.81 | 85.6 | % | 83.8 | % | 1.8 | % | $ | 2,694 | $ | 2,532 | 6.4 | % | $ | 1,116 | $ | 1,117 | (0.1 | )% | $ | 1,578 | $ | 1,415 | 11.5 | % | 58.6 | % | 55.9 | % | 2.7 | % | ||||||||||||||
Oklahoma | 26 | 1,630,324 | 8.38 | 86.5 | % | 83.2 | % | 3.3 | % | 3,008 | 2,795 | 7.6 | % | 1,001 | 917 | 9.2 | % | 2,007 | 1,878 | 6.9 | % | 66.7 | % | 67.2 | % | (0.5 | )% | |||||||||||||||||||||
Oregon | 26 | 1,198,728 | 11.14 | 90.3 | % | 87.9 | % | 2.4 | % | 3,043 | 2,774 | 9.7 | % | 959 | 935 | 2.6 | % | 2,084 | 1,839 | 13.3 | % | 68.5 | % | 66.3 | % | 2.2 | % | |||||||||||||||||||||
North Carolina | 15 | 767,799 | 10.11 | 78.6 | % | 79.6 | % | (1.0 | )% | 1,571 | 1,559 | 0.8 | % | 546 | 519 | 5.2 | % | 1,025 | 1,040 | (1.4 | )% | 65.2 | % | 66.7 | % | (1.5 | )% | |||||||||||||||||||||
Georgia | 14 | 561,006 | 8.08 | 87.1 | % | 77.9 | % | 9.2 | % | 1,012 | 860 | 17.7 | % | 472 | 422 | 11.8 | % | 540 | 438 | 23.3 | % | 53.4 | % | 50.9 | % | 2.5 | % | |||||||||||||||||||||
Colorado | 8 | 453,166 | 11.10 | 87.2 | % | 86.9 | % | 0.3 | % | 1,123 | 1,034 | 8.6 | % | 360 | 329 | 9.4 | % | 763 | 705 | 8.2 | % | 67.9 | % | 68.2 | % | (0.3 | )% | |||||||||||||||||||||
Washington | 5 | 207,149 | 11.27 | 91.2 | % | 82.6 | % | 8.6 | % | 542 | 466 | 16.3 | % | 159 | 159 | — | % | 383 | 307 | 24.8 | % | 70.7 | % | 65.9 | % | 4.8 | % | |||||||||||||||||||||
Other | 11 | 536,674 | 9.97 | 77.0 | % | 76.7 | % | 0.3 | % | 1,062 | 1,007 | 5.5 | % | 415 | 379 | 9.5 | % | 647 | 628 | 3.0 | % | 60.9 | % | 62.4 | % | (1.5 | )% | |||||||||||||||||||||
Total/Weighted Average | 136 | 6,575,934 | $ | 9.74 | 85.6 | % | 83.0 | % | 2.6 | % | $ | 14,055 | $ | 13,027 | 7.9 | % | $ | 5,028 | $ | 4,777 | 5.3 | % | $ | 9,027 | $ | 8,250 | 9.4 | % | 64.2 | % | 63.3 | % | 0.9 | % | ||||||||||||||
Supplemental Schedule 7 | |||||||
Reconciliation of Same Store Data and Net Operating Income to Income from Operations | |||||||
(dollars in thousands) (unaudited) | |||||||
Three Months Ended March 31, | |||||||
2015 | 2014 | ||||||
Total revenue for: | |||||||
Same Store Properties | $ | 14,055 | $ | 13,027 | |||
Non-Same Store Properties | 14,236 | 134 | |||||
Total revenue | 28,291 | 13,161 | |||||
Operating expenses for: | |||||||
Same Store Properties | 5,028 | 4,777 | |||||
Non-Same Store Properties | 4,814 | 145 | |||||
Total operating expenses | 9,842 | 4,922 | |||||
Net operating income for: | |||||||
Same Store Properties | 9,027 | 8,250 | |||||
Non-Same Store Properties | 9,422 | (11 | ) | ||||
Net operating income | 18,449 | 8,239 | |||||
General and administrative expenses | (3,613 | ) | (1,338 | ) | |||
Depreciation and amortization | (9,877 | ) | (3,837 | ) | |||
Income from operations on our statements of operations | $ | 4,959 | $ | 3,064 |
Supplemental Schedule 8 | |||||||
Selected Financial Information | |||||||
(in thousands, except per square foot data) (unaudited) | |||||||
Property Operating Metrics | |||||||
Three Months Ended March 31, | |||||||
2015 | 2014 | ||||||
Same Store | |||||||
Average annualized rental revenue per occupied square foot | $ | 9.74 | $ | 9.32 | |||
Average annualized contractual rent per occupied square foot | $ | 9.64 | $ | 9.39 | |||
Total Portfolio | |||||||
Average annualized rental revenue per occupied square foot | $ | 10.41 | $ | 9.32 | |||
Average annualized contractual rent per occupied square foot | $ | 10.40 | $ | 9.36 |
Capital Expenditures | |||||||
Three Months Ended March 31, | |||||||
2015 | 2014 | ||||||
Total Portfolio | |||||||
Recurring capital expenditures | $ | 504 | $ | 94 | |||
Revenue enhancing capital expenditures | 287 | — | |||||
Acquisitions capital expenditures | 87 | 768 | |||||
Total Portfolio Capital Expenditures | $ | 878 | $ | 862 | |||
Total portfolio square feet | 12,390 | 6,657 | |||||
Recurring Capital Expenditures Per Square Foot | $ | 0.04 | $ | 0.01 | |||
• | EBITDA and Adjusted EBITDA do not reflect our cash expenditures, or future requirements, for capital expenditures, contractual commitments or working capital needs; |
• | EBITDA and Adjusted EBITDA do not reflect the significant interest expense, or the cash requirements necessary to service interest or principal payments, on our debts; |
• | although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and EBITDA and Adjusted EBITDA do not reflect any cash requirements for such replacements; |
• | Adjusted EBITDA excludes equity-based compensation expense, which is and will remain a key element of our overall long-term incentive compensation package, although we exclude it as an expense when evaluating our ongoing operating performance for a particular period; |
• | EBITDA and Adjusted EBITDA do not reflect the impact of certain cash charges resulting from matters we consider not to be indicative of our ongoing operations; and |
• | other companies in our industry may calculate EBITDA and Adjusted EBITDA differently than we do, limiting its usefulness as a comparative measure. |
• | NOI is one of the primary measures used by our management and our PROs to evaluate the economic productivity of our properties, including our ability to lease our properties, increase pricing and occupancy and control our property operating expenses; |
• | NOI is widely used in the real estate industry and the self storage industry to measure the performance and value of real estate assets without regard to various items included in net income that do not relate to or are not indicative of operating performance, such as depreciation and amortization, which can vary depending upon accounting methods, the book value of assets, and the impact of our capital structure; and |
• | We believe NOI helps our investors to meaningfully compare the results of our operating performance from period to period by removing the impact of our capital structure (primarily interest expense on our outstanding indebtedness) and depreciation of the cost basis of our assets from our operating results. |
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