Exhibit 99.1

Life Storage, Inc. Reports Fourth Quarter and Full Year 2021 Results

BUFFALO, N.Y.--(BUSINESS WIRE)--February 24, 2022--Life Storage, Inc. (NYSE:LSI), a leading national owner and operator of self-storage properties, reported operating results for the quarter and year ended December 31, 2021. All share and per share information has been retrospectively adjusted to reflect the January 2021 three-for-two stock split made in the form of a 50% stock dividend.

Highlights for the Fourth Quarter Included:

  • Generated net income attributable to common shareholders of $74.1 million, or $0.90 per fully diluted common share.
  • Achieved adjusted funds from operations (“FFO”)(1) per fully diluted common share of $1.41, a 31.8% increase over the same period in 2020.
  • Increased same store revenue by 16.9% and same store net operating income (“NOI”)(2) by 23.9%, year-over-year.
  • Acquired 50 stores for $826.6 million, including eight stores from the Company’s third-party management platform.
  • With our joint venture partners, acquired 13 stores for a total cost of approximately $291 million, of which the Company invested $52 million.
  • Added 29 stores (gross) to the Company’s third-party management platform.

Highlights for the Full Year Included:

  • Generated net income attributable to common shareholders of $249.3 million, or $3.17 per fully diluted common share.
  • Achieved adjusted funds from operations (“FFO”)(1) per fully diluted common share of $5.07, a 27.7% increase over the same period in 2020.
  • Increased same store revenue by 14.1% and same store net operating income (“NOI”)(2) by 19.4%, year-over-year.
  • Acquired 112 wholly owned stores for $1,696.3 million, including 31 stores from the Company’s third-party management and joint venture platforms.
  • With our joint venture partners, acquired 30 stores for a total cost of approximately $611 million, of which the Company invested $81 million.
  • Added 103 stores (gross) to the Company’s third-party management platform; the Company grew its third-party management portfolio 11% in 2021 despite acquiring 31 previously managed stores.
  • Completed a $600 million offering of 2.4% Senior Unsecured Notes due 2031.

Joe Saffire, the Company’s Chief Executive Officer, stated, “We continued to successfully accelerate our growth in 2021. Each day our team executed to deliver exceptional results and I am very proud of what we accomplished together. We achieved record acquisition volume in 2021 as we closed $2.3 billion in wholly owned and joint venture acquisitions, adding 144 properties to our platform to be just under 1,100 properties. With a growing acquisition and a third-party management pipeline, we are well positioned to continue executing on our strategic initiatives to further grow shareholder value in 2022 and beyond.”

FINANCIAL RESULTS:

In the fourth quarter of 2021, the Company generated net income attributable to common shareholders of $74.1 million or $0.90 per fully diluted common share, compared to net income attributable to common shareholders of $41.6 million, or $0.57 per fully diluted common share, in the fourth quarter of 2020.

For the year ended December 31, 2021, the Company achieved $249.3 million of net income attributable to common shareholders, or $3.17 per fully diluted common share, as compared to $151.6 million, or $2.13 per fully diluted common share, for the year ended December 31, 2020.

Funds from operations for the quarter were $1.41 per fully diluted common share compared to $1.02 for the same period last year. Adjusted FFO per fully diluted common share for the quarter was $1.41 compared to $1.07 for the quarter ended December 31, 2020.

For the year ended December 31, 2021, FFO per fully diluted common share was $5.08 compared to $3.90 for the year ended December 31, 2020. Adjusted FFO per fully diluted common share for the year was $5.07 as compared to adjusted FFO for the year ended December 31, 2020 of $3.97.

OPERATIONS:

Revenues for the 531 stabilized stores wholly owned by the Company since December 31, 2019 increased 16.9% in the fourth quarter of 2021 compared to the same quarter of 2020. The increase largely resulted from the net impact of a 110 basis point increase in average occupancy and the net impact of a 15.2% increase in realized rental rates.

Same store operating expenses increased 1.9% for the fourth quarter of 2021 compared to the prior year period, the result of increased marketing costs, office and other operating expenses, and repairs and maintenance. The increases were partially offset by decreases in real estate taxes, and payroll and benefits. Same store NOI increased 23.9% in the fourth quarter of 2021 as compared to the fourth quarter of 2020.

During the fourth quarter of 2021, the Company achieved double digit same store revenue growth in each of its 31 major markets. Overall, the markets with the strongest positive revenue impact were Austin, TX; Las Vegas, NV; Buffalo-Upstate, NY and various Florida Markets.


PORTFOLIO TRANSACTIONS:

Wholly Owned Portfolio

During the quarter, the Company acquired 50 stores in Florida (17), Georgia (9), Connecticut (6), Texas (4), Illinois (4), North Carolina (3), South Carolina (2), Colorado (2), Tennessee (1), Virginia (1) and Maine (1) for a total purchase price of $826.6 million.

At December 31, 2021, the Company was under contract to acquire ten self-storage facilities in California (9) and Maryland (1) for an aggregate purchase price of $246.3 million. During January 2022, the Company completed the acquisition of six self-storage facilities in California for an aggregate purchase price of $165.0 million. Subsequent to December 31, 2021, the Company entered into contracts to acquire 15 self-storage facilities in Texas (4), North Carolina (4), Florida (3), South Carolina (1), Illinois (1), Massachusetts (1) and Georgia (1) for an aggregate purchase price of $236.2 million. The purchases of the remaining facilities are subject to customary conditions to closing, and there is no assurance that any of these facilities will be acquired.

THIRD-PARTY MANAGEMENT:

The Company continues to aggressively and profitably grow its third-party management platform. During the quarter, the Company added 29 stores (gross). As of quarter end, the Company managed 367 facilities in total, including those in which it owns a minority interest.

FINANCIAL POSITION:

At December 31, 2021, the Company had approximately $171.9 million of cash on hand, and approximately $500 million available on its line of credit.

To support acquisition activity, the Company issued equity securities and priced a bond offering during the fourth quarter. During the quarter, the Company issued 1,527,771 shares of common stock under its continuous equity offering program at a weighted average issue price of $140.44 per share, generating net proceeds after expenses of $212 million. Additionally, the Company completed a previously announced $600 million Senior Unsecured Notes offering at 2.4% due 2031 that closed on October 7, 2021.

Below are key financial ratios at December 31, 2021:




• Debt to Enterprise Value (at $153.18/share)




17.7%




• Debt to Book Cost of Storage Facilities




39.7%




• Debt to Recurring Annualized EBITDA




4.5x




• Debt Service Coverage




5.5x

COMMON STOCK DIVIDEND:

Subsequent to quarter end, the Company’s Board of Directors approved a 16% increase to its quarterly dividend to $1.00 per share, or $4.00 annualized. The dividend was paid on January 26, 2022 to shareholders of record on January 14, 2022.


YEAR 2022 EARNINGS GUIDANCE:

The following assumptions covering operations have been utilized in formulating guidance for 2022:

Year 2022 Earnings Guidance



 

Current Guidance Range

Same Store Revenue



 

9.50%

 

-

 

10.50%

Same Store Operating Costs (excluding property taxes)



 

4.50%

 

-

 

5.50%

Same Store Property Taxes



 

6.25%

 

-

 

7.25%

Total Same Store Operating Expenses



 

5.00%

 

-

 

6.00%

Same Store Net Operating Income



 

11.50%

 

-

 

12.50%

General & Administrative



 

$69M

 

-

 

$71M

 



 

 

 

 

 

 

Expansions & Enhancements



 

$65M

 

-

 

$75M

Capital Expenditures



 

$30M

 

-

 

$35M

Wholly Owned Acquisitions



 

$550M

 

-

 

$650M

Joint Venture Investments



 

$50M

 

-

 

$100M

 



 

 

 

 

 

 

Adjusted Funds from Operations per Share



 

$5.93

 

-

 

$6.03









 

 

Reconciliation of Guidance




1Q 2022
Range or Value

 

 

FY 2022
Range or Value

Earnings per share attributable to common shareholders - diluted




$0.82 - $0.86

 

 

$3.76 - $3.86

Plus: real estate depreciation and amortization




0.54 - 0.54

 

 

2.17 - 2.17

FFO per share




$1.36 - $1.40

 

 

$5.93 - $6.03

The Company’s 2022 same store pool consists of the 581 stabilized stores wholly owned since December 31, 2020. 38 of the stores purchased through December 31, 2021 at certificate of occupancy or that were in the early stages of lease-up are not included, regardless of their current occupancies. The Company believes that occupancy levels achieved during the lease-up period, using discounted rates, are not truly indicative of a new store’s performance, and therefore do not result in a meaningful year-over-year comparison in future years. The Company will include such stores in its same store pool in the second year after the stores achieve 80% sustained occupancy using market rates and incentives.


FORWARD LOOKING STATEMENTS:

When used herein, 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.

All forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause our actual results, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements. We may also make additional forward-looking statements from time to time. All such subsequent forward-looking statements, whether written or oral, by us or on our behalf, are also expressly qualified by these cautionary statements. All forward-looking statements apply only as of the date made. We undertake no obligation to publicly update or revise forward-looking statements which may be made to reflect events or circumstances after the date made or to reflect the occurrence of unanticipated events.

There are a number of risks and uncertainties that could cause our actual results to differ materially from the forward-looking statements contained herein. Any forward-looking statements should be considered in light of the risks referenced in the “Risk Factors” section included in our most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Such factors include, but are not limited to:

  • adverse changes in general economic conditions, the real estate industry and in the markets in which we operate;
  • the effect of competition from new self-storage facilities or other storage alternatives, which would cause rents and occupancy rates to decline;
  • impacts from the COVID-19 pandemic or the future outbreak of other highly infectious or contagious diseases on the U.S., regional and global economies and our financial condition and results of operations;
  • potential liability for uninsured losses and environmental contamination;
  • the impact of the regulatory environment as well as national, state, and local laws and regulations including, without limitation, those governing real estate investment trusts (“REITs”), tenant reinsurance and other aspects of our business, which could adversely affect our results;
  • loss of key personnel;
  • the Company’s ability to evaluate, finance and integrate acquired self-storage facilities on expected terms into the Company’s existing business and operations;
  • the Company’s ability to effectively compete in the industry in which it does business;
  • disruptions in credit and financial markets and resulting difficulties in raising capital or obtaining credit at reasonable rates or at all, which could impede our ability to grow;
  • 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 increase, impacting costs associated with the Company’s outstanding floating rate debt, if any, and impacting the Company’s ability to comply with debt covenants;
  • exposure to litigation or other claims;
  • risks associated with breaches of our data security;
  • the regional concentration of the Company's business may subject the Company to economic downturns in the states of Florida and Texas;
  • the Company’s cash flow may be insufficient to meet required payments of operating expenses, principal, interest and dividends; and
  • failure to maintain our REIT status for U.S. federal income purposes, including tax law changes that may change the taxability of future income.

The forward-looking statements are based on our beliefs, assumptions and expectations of our future performance, taking into account all information currently available to us. These beliefs, assumptions and expectations are subject to risks and uncertainties and can change as a result of many possible events or factors, not all of which are known to us. If a change occurs, our business, financial condition, liquidity and results of operations may vary materially from those expressed in our forward-looking statements. You should carefully consider these risks before you make an investment decision with respect to our securities.


CONFERENCE CALL:

Life Storage will hold its Fourth Quarter Earnings Release Conference Call at 9:00 a.m. Eastern Time on Friday, February 25, 2022. To help avoid connection delays, participants are encouraged to pre-register using this link. Anyone unable to pre-register may access the conference call at 877.234.0062 (domestic) or 973.413.6112 (international); passcode 105369 or request to be joined into the Life Storage call. Management will accept questions from registered financial analysts after prepared remarks; all others are encouraged to listen to the call via webcast by accessing the investor relations tab at lifestorage.com. The webcast will be archived for a period of 90 days; a telephone replay will also be available for 14 days by calling 877.481.4010 and entering passcode 44506.

ABOUT LIFE STORAGE, INC:

Life Storage, Inc. is a self-administered and self-managed equity REIT that is in the business of acquiring and managing self-storage facilities. Located in Buffalo, New York, the Company operates just under 1,100 storage facilities in 35 states. The Company serves both residential and commercial storage customers with storage units rented by month. Life Storage consistently provides responsive service to approximately 600,000 customers, making it a leader in the industry. For more information visit http://invest.lifestorage.com.


 
Life Storage, Inc.
Balance Sheet Data
(unaudited)






 




December 31,


December 31,

(dollars in thousands)


2021


2020

Assets





Investment in storage facilities:





Land


$

1,185,976

 


$

951,813

 

Building, equipment and construction in progress


 

5,904,481

 


 

4,378,510

 





 

7,090,457

 


 

5,330,323

 

Less: accumulated depreciation


 

(1,007,650

)


 

(873,178

)

Investment in storage facilities, net


 

6,082,807

 


 

4,457,145

 

Cash and cash equivalents


 

171,865

 


 

54,400

 

Accounts receivable


 

17,784

 


 

15,464

 

Receivable from joint ventures


 

333

 


 

1,064

 

Investment in joint ventures


 

213,003

 


 

143,042

 

Prepaid expenses


 

9,918

 


 

8,326

 

Intangible asset - in-place customer leases


 

13,966

 


 

5,409

 

Trade name


 

16,500

 


 

16,500

 

Other assets


 

30,421

 


 

26,498

 

Total Assets


$

6,556,597

 


$

4,727,848

 







 
Liabilities





Line of credit


$

-

 


$

-

 

Term notes, net


 

2,747,838

 


 

2,155,457

 

Accounts payable and accrued liabilities


 

131,778

 


 

112,654

 

Deferred revenue


 

27,277

 


 

17,416

 

Mortgages payable


 

37,030

 


 

37,777

 

Total Liabilities


 

2,943,923

 


 

2,323,304

 







 
Noncontrolling redeemable Preferred Operating Partnership Units at redemption value


 

90,783

 


 

-

 







 
Noncontrolling redeemable Common Operating Partnership Units at redemption value


 

142,892

 


 

26,446

 







 
Equity





Common stock


 

836

 


 

495

 

Additional paid-in capital


 

3,697,000

 


 

2,671,311

 

Accumulated deficit


 

(314,713

)


 

(288,667

)

Accumulated other comprehensive loss


 

(4,124

)


 

(5,041

)

Total Shareholders' Equity


 

3,378,999

 


 

2,378,098

 

Total Liabilities and Shareholders' Equity


$

6,556,597

 


$

4,727,848

 











 

Life Storage, Inc.
Consolidated Statements of Operations
(unaudited)










 




October 1, 2021
October 1, 2020
January 1, 2021
January 1, 2020




to
to
to
to
(dollars in thousands, except share data)


December 31, 2021
December 31, 2020
December 31, 2021
December 31, 2020










 
Revenues









Rental income


$

194,441

 


$

145,852

 


$

690,758

 


$

539,554

 

Tenant reinsurance


 

16,294

 


 

12,234

 


 

58,103

 


 

44,742

 

Other operating income


 

4,387

 


 

4,119

 


 

17,577

 


 

15,069

 

Management and acquisition fee income


 

6,037

 


 

4,300

 


 

22,127

 


 

17,406

 

Total operating revenues


 

221,159

 


 

166,505

 


 

788,565

 


 

616,771

 











 
Expenses









Property operations and maintenance


 

40,129

 


 

32,503

 


 

143,648

 


 

122,544

 

Tenant reinsurance


 

6,448

 


 

4,474

 


 

22,882

 


 

15,729

 

Real estate taxes


 

18,067

 


 

17,550

 


 

79,861

 


 

70,302

 

General and administrative


 

17,210

 


 

13,557

 


 

62,617

 


 

52,055

 

Depreciation and amortization


 

36,817

 


 

30,777

 


 

134,754

 


 

117,302

 

Amortization of in-place customer leases


 

4,014

 


 

1,812

 


 

12,365

 


 

5,623

 

Total operating expenses


 

122,685

 


 

100,673

 


 

456,127

 


 

383,555

 











 
Gain on sale of real estate


 

-

 


 

-

 


 

-

 


 

302

 

Income from operations


 

98,474

 


 

65,832

 


 

332,438

 


 

233,518

 











 
Other income (expense)









Interest expense (A)


 

(24,316

)


 

(24,959

)


 

(86,786

)


 

(86,015

)

Interest and dividend income


 

39

 


 

4

 


 

827

 


 

19

 

Equity in income of joint ventures


 

1,570

 


 

923

 


 

5,696

 


 

4,838

 











 
Net income


 

75,767

 


 

41,800

 


 

252,175

 


 

152,360

 

Net income attributable to noncontrolling preferred interests in the Operating Partnership


 

(1,018

)


 

-

 


 

(1,494

)


 

-

 

Net income attributable to noncontrolling common interests in the Operating Partnership


 

(604

)


 

(213

)


 

(1,364

)


 

(789

)

Net income attributable to common shareholders


$

74,145

 


$

41,587

 


$

249,317

 


$

151,571

 











 
Earnings per common share attributable to common shareholders - basic


$

0.90

 


$

0.57

 


$

3.18

 


$

2.13

 











 
Earnings per common share attributable to common shareholders - diluted


$

0.90

 


$

0.57

 


$

3.17

 


$

2.13

 











 
Common shares used in basic earnings per share calculation


 

82,293,536

 


 

73,100,672

 


 

78,424,956

 


 

71,054,907

 











 
Common shares used in diluted earnings per share calculation


 

82,522,589

 


 

73,275,641

 


 

78,608,151

 


 

71,177,763

 











 
Dividends declared per common share


$

0.8600

 


$

0.7133

 


$

3.0800

 


$

2.8533

 











 










 
(A) Interest expense for the period ending December 31 consists of the following
Interest expense


$

23,586

 


$

20,325

 


$

84,248

 


$

79,584

 

Make-whole payment on repaid note


$

-

 


$

4,030

 


$

-

 


$

4,030

 

Amortization of debt issuance costs


 

730

 


 

604

 


 

2,538

 


 

2,401

 

Total interest expense


$

24,316

 


$

24,959

 


$

86,786

 


$

86,015

 



















 

Life Storage, Inc.
Computation of Funds From Operations (FFO) (1)
(unaudited)










 




October 1, 2021
October 1, 2020
January 1, 2021
January 1, 2020




to
to
to
to
(dollars in thousands, except share data)


December 31, 2021
December 31, 2020
December 31, 2021
December 31, 2020










 
Net income attributable to common shareholders


$

74,145

 


$

41,587

 


$

249,317

 


$

151,571

 

Noncontrolling common interests in the Operating Partnership


 

604

 


 

213

 


 

1,364

 


 

789

 

Depreciation of real estate and amortization of intangible









assets exclusive of debt issuance costs


 

40,287

 


 

31,955

 


 

144,978

 


 

120,512

 

Depreciation and amortization from unconsolidated joint ventures


 

1,988

 


 

1,311

 


 

6,227

 


 

5,814

 

Funds from operations allocable to noncontrolling









interest in Operating Partnership


 

(945

)


 

(382

)


 

(2,177

)


 

(1,443

)

Funds from operations available to common shareholders


 

116,079

 


 

74,684

 


 

399,709

 


 

277,243

 

FFO per share - diluted


$

1.41

 


$

1.02

 


$

5.08

 


$

3.90

 











 
Adjustments to FFO









Costs related to officer's retirement


 

465

 


 

-

 


 

620

 


 

-

 

Acquisition fee


 

(472

)


 

-

 


 

(1,752

)


 

(217

)

Gain on sale of land


 

-

 


 

-

 


 

-

 


 

(302

)

Uninsured damages and customer reinsurance claims, net


 

-

 


 

-

 


 

-

 


 

1,546

 

Make-whole payment on repaid note




 

4,030

 




 

4,030

 

Funds from operations resulting from non-recurring items









allocable to noncontrolling interest in Operating Partnership


 

-

 


 

(21

)


 

5

 


 

(26

)

Adjusted funds from operations available to common shareholders


 

116,072

 


 

78,693

 


 

398,582

 


 

282,274

 

Adjusted FFO per share - diluted


$

1.41

 


$

1.07

 


$

5.07

 


$

3.97

 











 
Common shares - diluted


 

82,522,589

 


 

73,275,641

 


 

78,608,151

 


 

71,177,763

 



















 

Life Storage, Inc.
Computation of Net Operating Income (2)
(unaudited)










 




October 1, 2021
October 1, 2020
January 1, 2021
January 1, 2020




to
to
to
to
(dollars in thousands)


December 31, 2021
December 31, 2020
December 31, 2021
December 31, 2020










 
Net Income


$

75,767

 


$

41,800

 


$

252,175

 


$

152,360

 

General and administrative


 

17,210

 


 

13,557

 


 

62,617

 


 

52,055

 

Depreciation and amortization


 

40,831

 


 

32,589

 


 

147,119

 


 

122,925

 

Gain on sale of real estate


 

-

 


 

-

 


 

-

 


 

(302

)

Interest expense


 

24,316

 


 

24,959

 


 

86,786

 


 

86,015

 

Interest and dividend income


 

(39

)


 

(4

)


 

(827

)


 

(19

)

Equity in income of joint ventures


 

(1,570

)


 

(923

)


 

(5,696

)


 

(4,838

)

Net operating income


$

156,515

 


$

111,978

 


$

542,174

 


$

408,196

 











 
Same store (4)


$

112,553

 


$

90,876

 


$

409,459

 


$

342,846

 

Net operating income related to tenant reinsurance


 

9,846

 


 

7,760

 


 

35,221

 


 

29,013

 

Other stores and management fee income


 

34,116

 


 

13,342

 


 

97,494

 


 

36,337

 

Total net operating income


$

156,515

 


$

111,978

 


$

542,174

 


$

408,196

 



















 

Life Storage, Inc.
Quarterly Same Store Data (3) (4) 531 mature stores owned since 12/31/19
(unaudited)










 




October 1, 2021
October 1, 2020







to
to


Percentage
(dollars in thousands)


December 31, 2021
December 31, 2020
Change
Change










 
Revenues:









Rental income


$

153,787

 


$

131,282

 


$

22,505

 


17.1

%

Other operating income


 

1,700

 


 

1,714

 


 

(14

)


-0.8

%

Total operating revenues


 

155,487

 


 

132,996

 


 

22,491

 


16.9

%











 
Expenses:









Payroll and benefits


 

9,999

 


 

10,222

 


 

(223

)


-2.2

%

Real estate taxes


 

14,564

 


 

15,046

 


 

(482

)


-3.2

%

Utilities


 

3,453

 


 

3,250

 


 

203

 


6.2

%

Repairs and maintenance


 

5,193

 


 

4,925

 


 

268

 


5.4

%

Office and other operating expense


 

4,703

 


 

4,273

 


 

430

 


10.1

%

Insurance


 

1,719

 


 

1,644

 


 

75

 


4.6

%

Advertising


 

69



 

50



 

19

 


38.0

%

Internet marketing


 

3,234

 


 

2,710

 


 

524

 


19.3

%

Total operating expenses


 

42,934

 


 

42,120

 


 

814

 


1.9

%











 
Net operating income (2)


$

112,553

 


$

90,876

 


$

21,677

 


23.9

%











 










 
QTD Same store move ins


 

47,479

 


 

48,102

 


 

(623

)













 
QTD Same store move outs


 

48,948

 


 

47,967

 


 

981

 













 










 
Other Comparable Quarterly Same Store Data (4)
(unaudited)




















 




October 1, 2021
October 1, 2020







to
to


Percentage




December 31, 2021
December 31, 2020
Change
Change
2020 Same store pool (515 stores)









Revenues


$

150,649

 


$

128,791

 


$

21,858

 


17.0

%

Expenses


 

41,404

 


 

40,785

 


 

619

 


1.5

%

Net operating income


$

109,245

 


$

88,006

 


$

21,239

 


24.1

%











 










 
2019 Same store pool (502 stores)









Revenues


$

147,361

 


$

126,133

 


$

21,228

 


16.8

%

Expenses


 

40,350

 


 

39,677

 


 

673

 


1.7

%

Net operating income


$

107,011

 


$

86,456

 


$

20,555

 


23.8

%


















 

Life Storage, Inc.
Year to Date Same Store Data (3) (4) 531 mature stores owned since 12/31/19
(unaudited)




 










 




January 1, 2021
January 1, 2020







to
to


Percentage
(dollars in thousands)


December 31, 2021
December 31, 2020
Change
Change










 
Revenues:









Rental income


$

578,658

 


$

506,469

 


$

72,189

 


 

14.3

%

Other operating income


 

6,893

 


 

6,519

 


 

374

 


 

5.7

%

Total operating revenues


 

585,551

 


 

512,988

 


 

72,563

 


 

14.1

%











 
Expenses:









Payroll and benefits


 

38,900

 


 

38,995

 


 

(95

)


 

-0.2

%

Real estate taxes


 

67,142

 


 

64,918

 


 

2,224

 


 

3.4

%

Utilities


 

14,654

 


 

14,273

 


 

381

 


 

2.7

%

Repairs and maintenance


 

18,259

 


 

16,098

 


 

2,161

 


 

13.4

%

Office and other operating expense


 

16,680

 


 

15,397

 


 

1,283

 


 

8.3

%

Insurance


 

6,374

 


 

6,151

 


 

223

 


 

3.6

%

Advertising


 

212



 

241



 

(29

)


 

-12.0

%

Internet marketing


 

13,871

 


 

14,069

 


 

(198

)


 

-1.4

%

Total operating expenses


 

176,092

 


 

170,142

 


 

5,950

 


 

3.5

%











 
Net operating income (2)


$

409,459

 


$

342,846

 


$

66,613

 


 

19.4

%











 










 
YTD Same store move ins


 

194,816

 


 

204,976

 


 

(10,160

)













 
YTD Same store move outs


 

188,925

 


 

187,935

 


 

990

 













 










 
Life Storage, Inc.









Other Data - unaudited


Same Store (3)

 

All Stores (5)





2021

 

2020

 

2021

 

2020











 
Weighted average quarterly occupancy


 

94.2

%


 

93.1

%


 

93.7

%


 

92.4

%











 
Occupancy at December 31


 

93.9

%


 

92.9

%


 

93.0

%


 

92.2

%











 
Rent per occupied square foot


$

16.97

 


$

14.73

 


$

16.84

 


$

14.69

 



















 

Life Storage, Inc.
Other Data - unaudited (continued)










 










 
Investment in Storage Facilities: (unaudited)









The following summarizes activity in storage facilities during the twelve months ended December 31, 2021:










 
Beginning balance


$

5,330,323

 







Property acquisitions


 

1,675,366

 







Improvements and equipment additions:









Expansions


 

24,319

 







Roofing, paving, and equipment:









Stabilized stores


 

26,326

 







Recently acquired stores


 

8,924

 







Change in construction in progress (Total CIP $44.6 million)


 

25,946

 







Dispositions and Impairments


 

(747

)







Storage facilities at cost at period end


$

7,090,457

 

















 










 
Comparison of Selected G&A Costs (unaudited)


Quarter Ended
Year Ended




December 31, 2021
December 31, 2020
December 31, 2021
December 31, 2020
Management and administrative salaries and benefits


$

10,238

 


$

9,784

 


$

39,218

 


$

31,800

 

Training


 

337

 


 

320

 


 

680

 


 

887

 

Call center


 

854

 


 

865

 


 

3,151

 


 

3,160

 

Life Storage Solutions costs


 

463

 


 

467

 


 

1,272

 


 

1,029

 

Income taxes


 

(193

)


 

(1,001

)


 

1,679



 

1,628


Legal, accounting and professional


 

1,180

 


 

430

 


 

4,048

 


 

3,360

 

Costs related to officer's retirement


 

465

 


 

-

 


 

620

 


 

-

 

Other administrative expenses (6)


 

3,866

 


 

2,692

 


 

11,949

 


 

10,191

 





$

17,210

 


$

13,557

 


$

62,617

 


$

52,055

 











 
Net rentable square feet


December 31, 2021





Wholly owned properties


 

51,325,614

 







Joint venture properties


 

8,772,111

 







Third party managed properties


 

18,532,262

 











 

78,629,987

 

















 




December 31, 2021
December 31, 2020













 
Common shares outstanding


 

83,565,710

 


 

74,211,920

 





Operating Partnership Units outstanding


 

960,708

 


 

334,149

 



















 

(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.
 
(2) 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, impairment and casualty losses, operating lease expenses, depreciation and amortization expense, any losses on sale of real estate, acquisition related costs, general and administrative expense, and deducting from net income: income from discontinued operations, interest income, any gains on sale of real estate, and equity in income of joint ventures. We believe that NOI is a meaningful measure to investors in evaluating our operating performance, because we utilize NOI in making decisions with respect to capital allocations, in determining current property values, and in comparing period-to-period and market-to-market property operating results. Additionally, 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 on accounting methods and book value of assets. 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.
 
(3) Includes the 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.
 
(4) Revenues and expenses do not include items related to tenant reinsurance.
 
(5) Does not include unconsolidated joint venture stores or other stores managed by the Company.
 
(6) Other administrative expenses include office rent, travel expense, investor relations and miscellaneous other expenses.

 

Contacts

Life Storage, Inc.
Alex Gress
(716) 295-6833
agress@lifestorage.com