•
|
Total revenues increased 7.3% to a new high of $2.3 million.
|
•
|
Net income increased 35.3% to $337,000 or $0.04 per fully diluted share.
|
•
|
Funds from operations (FFO) increased to $601,000 or $0.06 per diluted share.
|
•
|
Adjusted FFO (AFFO) increased to $637,000 or $0.07 per diluted share (see definition of FFO and AFFO, both
non-GAAP terms, and their reconciliation to GAAP, below).
|
•
|
Same-store revenues remained approximately the same versus the year-ago period at $1.9 million.
|
•
|
Same-store cost of operations decreased 7.9% to $718,000, which resulted from a decrease in most major categories of same-store level expenses.
|
•
|
Same-store net operating income (NOI) increased 5.4% to $1.2 million, primarily due to the decrease in
store-level cost of operations and limiting the decrease in revenues caused by the COVID-19 pandemic, as described below (see definition of same-store NOI, a non-GAAP term, and its reconciliation to GAAP, below).
|
•
|
Same-store occupancy at September 30, 2020 increased 90 basis points to 93.5% from 92.6% at September 30, 2019.
|
•
|
Same-store average tenant duration of stay at September 30, 2020 was 3.0 years, approximately the same as of September 30, 2019.
|
•
|
Maintained quarterly dividend of $0.065 per share.
|
•
|
Capital resources at September 30, 2020 totaled approximately $8.6 million, comprised of $1.9 million in cash, cash equivalents, and
restricted cash, $1.8 million in marketable equity securities, and $4.9 million available under a revolving credit line.
|
•
|
Continued deceleration of general and administrative (G&A) expense growth limited the increase in G&A expense to 5.8%.
|
•
|
Total revenues increased 5.9% to $6.8 million.
|
•
|
Net loss was $41,000 or $(0.00) per share.
|
•
|
FFO increased to $1.5 million or $0.16 per diluted share.
|
•
|
AFFO increased to $1.6 million or $0.17 per diluted share.
|
•
|
Same-store revenues remained approximately the same at $5.5 million, despite COVID-19 pandemic and related
economic disruption.
|
•
|
Same-store cost of operations decreased 10.1% to $2.2 million, resulting from a decrease in every major category of same-store level expenses.
|
•
|
Same-store NOI increased 8.2% to $3.4 million, primarily due to the decrease in store-level cost of operations
and limiting the reduction in revenue growth caused by the COVID-19 pandemic, as described below.
|
•
|
Same-store occupancy at September 30, 2020 increased 90 basis points to 93.5% from 92.6% at September 30, 2019.
|
•
|
Same-store average tenant duration of stay at September 30, 2020 was 3.0 years, approximately the same as of
September 30, 2019
|
•
|
Distributed dividends of $0.195 per share of common stock.
|
•
|
Continued operations and provided tenant access at all stores, as the company continued to protect its tenants
and employees by following applicable COVID-19 safety guidelines.
|
•
|
Benefited from contactless technology deployed pre-COVID-19 that provides tenants online leasing and payment
options, as well as on-site kiosks that facilitate contactless rentals, lock purchases, and lease payments 24/7.
|
•
|
Total revenue growth was up 7.3% for the third quarter of 2020, versus the same period last year.
|
•
|
At September 30, 2020, same-store occupancy was 93.5% and combined store occupancy was 91.9%.
|
•
|
Rent collections in Q3 were 97.5%, which was slightly better than the same year-ago period despite the COVID-19
pandemic.
|
•
|
Return to normalcy in the company’s revenues was mainly attributable to consistent rent collections, despite the
COVID-19 pandemic, and an increase in the percentage of administrative fees due to the company for tenant stored items insurance.
|
•
|
In light of reduced in-person marketing opportunities due to the COVID-19 pandemic, the company has pivoted to
digital and referral-based marketing of its third-party management program, Global MaxManagementSM.
|
•
|
Continuing to explore the possibility of entering into joint-venture relationships with third parties for the
acquisition of self-storage facilities; the company believes such third-party interest to conduct business with the company is due to its history of strong same-store performance and proven operational expertise.
|
•
|
Capital resources available at September 30, 2020 totaled approximately $8.6 million, providing operational
flexibility for the company to continue to pursue its long-term strategic business plan. The plan includes self-storage property acquisitions, either directly or through joint ventures, and expansions at the company’s existing properties.
|
•
|
Remaining cautious regarding the rest of the year due to the continuing uncertainty related to the impacts of the
COVID-19 pandemic, including the potential for future stay-at-home orders, uncertain economic climate, and potential impact on rentals, vacates, pricing, receivables, auctions and existing customer rent increases.
|
For the Three Months Ended September 30,
|
For the Nine Months Ended September 30,
|
|||||||||||||||
2020
|
2019
|
2020
|
2019
|
|||||||||||||
Net income (loss)
|
$
|
337,124
|
$
|
249,233
|
$
|
(41,444
|
)
|
$
|
573,901
|
|||||||
Eliminate items excluded from FFO:
|
||||||||||||||||
Unrealized gain on marketable equity securities
|
(245,571
|
)
|
(127,820
|
)
|
(27,402
|
)
|
(355,102
|
)
|
||||||||
Depreciation and amortization
|
509,219
|
351,711
|
1,527,901
|
1,056,087
|
||||||||||||
FFO attributable to common stockholders
|
600,772
|
473,124
|
1,459,055
|
1,274,886
|
||||||||||||
Adjustments:
|
||||||||||||||||
Compensation expense related to stock-based awards
|
35,283
|
29,430
|
99,762
|
135,320
|
||||||||||||
Business development, capital raising, store acquisition, and third-party management marketing expenses
|
471
|
72,691
|
10,528
|
95,985
|
||||||||||||
AFFO attributable to common stockholders
|
$
|
636,526
|
$
|
575,245
|
$
|
1,569,345
|
$
|
1,506,191
|
||||||||
Earnings per share attributable to common stockholders - basic
|
$
|
0.04
|
$
|
0.03
|
$
|
(0.00
|
)
|
$
|
0.08
|
|||||||
Earnings per share attributable to common stockholders - diluted
|
$
|
0.04
|
$
|
0.03
|
$
|
(0.00
|
)
|
$
|
0.08
|
|||||||
FFO per share - diluted
|
$
|
0.06
|
$
|
0.06
|
$
|
0.16
|
$
|
0.17
|
||||||||
AFFO per share - diluted
|
$
|
0.07
|
$
|
0.08
|
$
|
0.17
|
$
|
0.20
|
||||||||
Weighted average shares outstanding - basic
|
9,277,043
|
7,646,875
|
9,269,834
|
7,639,588
|
||||||||||||
Weighted average shares outstanding - diluted
|
9,290,984
|
7,652,257
|
9,269,834
|
7,640,874
|
September 30, 2020
|
December 31, 2019
|
|||||||
Assets
|
||||||||
Real estate assets, net
|
$
|
60,165,282
|
$
|
59,752,153
|
||||
Cash and cash equivalents
|
1,596,158
|
3,990,160
|
||||||
Restricted cash
|
321,376
|
263,405
|
||||||
Investments in securities
|
1,788,714
|
1,761,312
|
||||||
Accounts receivable
|
69,072
|
164,078
|
||||||
Prepaid expenses and other assets
|
601,275
|
325,450
|
||||||
Line of credit issuance costs, net
|
192,374
|
311,869
|
||||||
Intangible assets, net
|
55,125
|
398,795
|
||||||
Goodwill
|
694,121
|
694,121
|
||||||
Total assets
|
$
|
65,483,497
|
$
|
67,661,343
|
||||
Liabilities and equity
|
||||||||
Note payable, net
|
$
|
18,503,860
|
$
|
18,839,787
|
||||
Line of credit borrowing
|
5,144,000
|
4,914,000
|
||||||
Accounts payable and accrued expenses
|
1,534,179
|
1,841,640
|
||||||
Total liabilities
|
25,182,039
|
25,595,427
|
||||||
Commitments and contingencies
|
||||||||
Equity
|
||||||||
Preferred stock, $0.01 par value: 50,000,000 shares authorized, no shares outstanding
|
—
|
—
|
||||||
Common stock, $0.01 par value: 450,000,000 shares authorized, 9,356,202 and 9,330,297 issued and outstanding at September 30, 2020
and December 31, 2019, respectively
|
93,562
|
93,303
|
||||||
Additional paid in capital
|
40,429,005
|
40,329,502
|
||||||
Retained earnings
|
(221,109
|
)
|
1,643,111
|
|||||
Total equity
|
40,301,458
|
42,065,916
|
||||||
Total liabilities and equity
|
$
|
65,483,497
|
$
|
67,661,343
|
For the Three Months Ended September 30,
|
For the Nine Months Ended September 30,
|
|||||||||||||||
2020
|
2019
|
2020
|
2019
|
|||||||||||||
Revenues
|
||||||||||||||||
Rental income
|
$
|
2,237,424
|
$
|
2,115,053
|
$
|
6,521,176
|
$
|
6,231,190
|
||||||||
Other property related income
|
90,989
|
72,194
|
246,148
|
211,255
|
||||||||||||
Management fees and other income
|
17,496
|
—
|
52,341
|
—
|
||||||||||||
Total revenues
|
2,345,909
|
2,187,247
|
6,819,665
|
6,442,445
|
||||||||||||
Expenses
|
||||||||||||||||
Property operations
|
907,350
|
869,231
|
2,698,639
|
2,706,109
|
||||||||||||
General and administrative
|
564,162
|
533,418
|
1,822,353
|
1,644,057
|
||||||||||||
Depreciation and amortization
|
509,219
|
351,711
|
1,527,901
|
1,056,087
|
||||||||||||
Business development
|
471
|
72,691
|
10,528
|
95,985
|
||||||||||||
Total expenses
|
1,981,202
|
1,827,051
|
6,059,421
|
5,502,238
|
||||||||||||
Operating income
|
364,707
|
360,196
|
760,244
|
940,207
|
||||||||||||
Other income (expense)
|
||||||||||||||||
Dividend and interest income
|
17,648
|
17,180
|
62,017
|
51,826
|
||||||||||||
Unrealized gain on marketable equity securities
|
245,571
|
127,820
|
27,402
|
355,102
|
||||||||||||
Interest expense
|
(290,802
|
)
|
(255,963
|
)
|
(891,107
|
)
|
(773,234
|
)
|
||||||||
Total other (expense), net
|
(27,583
|
)
|
(110,963
|
)
|
(801,688
|
)
|
(366,306
|
)
|
||||||||
Net income (loss) and comprehensive income (loss)
|
$
|
337,124
|
$
|
249,233
|
$
|
(41,444
|
)
|
$
|
573,901
|
|||||||
Earnings per share
|
||||||||||||||||
Basic
|
$
|
0.04
|
$
|
0.03
|
$
|
(0.00
|
)
|
$
|
0.08
|
|||||||
Diluted
|
$
|
0.04
|
$
|
0.03
|
$
|
(0.00
|
)
|
$
|
0.08
|
|||||||
Weighted average shares outstanding
|
||||||||||||||||
Basic
|
9,277,043
|
7,646,875
|
9,269,834
|
7,639,588
|
||||||||||||
Diluted
|
9,290,984
|
7,652,257
|
9,269,834
|
7,640,874
|
For the Three Months Ended September 30,
|
For the Nine Months Ended September 30,
|
|||||||||||||||
2020
|
2019
|
2020
|
2019
|
|||||||||||||
Net income (loss)
|
$
|
337,124
|
$
|
249,233
|
$
|
(41,444
|
)
|
$
|
573,901
|
|||||||
Adjustments:
|
||||||||||||||||
Management fees and other income
|
(17,496
|
)
|
—
|
(52,341
|
)
|
—
|
||||||||||
General and administrative
|
564,162
|
533,418
|
1,822,353
|
1,644,057
|
||||||||||||
Depreciation and amortization
|
509,219
|
351,711
|
1,527,901
|
1,056,087
|
||||||||||||
Business development
|
471
|
72,691
|
10,528
|
95,985
|
||||||||||||
Dividend, interest, and other income
|
(17,648
|
)
|
(17,180
|
)
|
(62,017
|
)
|
(51,826
|
)
|
||||||||
Unrealized gain on marketable equity securities
|
(245,571
|
)
|
(127,820
|
)
|
(27,402
|
)
|
(355,102
|
)
|
||||||||
Interest expense
|
290,802
|
255,963
|
891,107
|
773,234
|
||||||||||||
Non same-store revenues
|
(448,873
|
)
|
(306,035
|
)
|
(1,224,254
|
)
|
(911,614
|
)
|
||||||||
Non same-store cost of operations
|
189,783
|
89,986
|
523,900
|
287,864
|
||||||||||||
Total same-store net operating income
|
$
|
1,161,973
|
$
|
1,101,967
|
$
|
3,368,331
|
$
|
3,112,586
|
||||||||
For the Three Months Ended September 30,
|
For the Nine Months Ended September 30,
|
|||||||||||||||
2020
|
2019
|
2020
|
2019
|
|||||||||||||
Same-store revenues
|
$
|
1,879,539
|
$
|
1,881,213
|
$
|
5,543,070
|
$
|
5,530,831
|
||||||||
Same-store cost of operations
|
717,566
|
779,246
|
2,174,739
|
2,418,245
|
||||||||||||
Total same-store net operating income
|
$
|
1,161,973
|
$
|
1,101,967
|
$
|
3,368,331
|
$
|
3,112,586
|