Press Releases

Sovran Self Storage Reports Second Quarter Results; Same Store Revenues Increase 8.9%; 2013 Guidance Raised

BUFFALO, N.Y.--(BUSINESS WIRE)-- Sovran Self Storage, Inc. (NYSE:SSS), a self storage real estate investment trust (REIT), reported operating results for the quarter ended June 30, 2013.

Uncle Bob's Self Storage recently expanded its facility at 2802 Transit Rd., Buffalo, NY 14224 (Phot ...

Uncle Bob's Self Storage recently expanded its facility at 2802 Transit Rd., Buffalo, NY 14224 (Photo: Business Wire)

Net income available to common shareholders for the second quarter of 2013 was $17.9 million or $0.57 per fully diluted share. For the same period in 2012, net income available to common shareholders was $11.7 million, or $0.40 per fully diluted common share.

Funds from operations (FFO) for the quarter were $0.94 per fully diluted common share compared to $0.77 for the same period last year. The Company did not incur acquisition costs in the second quarter of 2013; in the second quarter of 2012, it incurred net acquisition costs of $1.3 million in connection with property acquisitions. Absent these acquisition charges, FFO per share was $0.94 and $0.82 for the second quarter of 2013 and 2012, respectively.

Continuing occupancy growth and higher net rental rates contributed to the increase in FFO for the second quarter of 2013.

David Rogers, the Company’s CEO, commented, “We had another outstanding quarter. Same store occupancy grew to 91% at the end of June, and we’ve been able to gain pricing power by increasing rates and reducing discounts. The summer season has been a good one and we’re well positioned to push strong revenue growth into next year.”

OPERATIONS:

Revenues for the 362 stores wholly owned by the Company for the entire quarter of each year increased 8.9% from those of the second quarter of 2012, the result of a 380 basis point increase in average occupancy to 89.7%, increased rental rates and strong growth in insurance commissions.

Same store operating expenses increased 2.4% for the second quarter of 2013 compared to the prior year period, mainly as a result of increased insurance costs and property taxes.

Consequently, same store net operating income increased 12.2% this period over the second quarter of 2012.

Total revenues increased 18.4% over last year’s second quarter, while operating costs increased 12.7%, resulting in an NOI (3) increase of 21.1%. Overall occupancy averaged 88.3% for the period and rental rates improved 5.6% to an average of $10.89 per sq. ft.

General and administrative expenses grew by approximately $1.0 million over the same period in 2012, primarily due to increased salaries and internet advertising associated with the net 25 stores added to the Company’s platform since April 1 of last year.

During the second quarter of 2013, the Company experienced positive same store revenue growth in all but one of the states in which it operates. The stores with the strongest revenue impact include those in Texas, Florida, New York and North Carolina.

PROPERTIES:

The company currently has three properties under contract for a total of $27.9 million. The facilities are all located in markets where the Company already has a presence; two in Long Island, New York, and one in Colorado. Providing the properties pass due diligence, the Company expects to purchase the assets late in the third quarter.

The Company did not acquire any additional stores in the second quarter.

COMMON STOCK DIVIDEND:

Subsequent to quarter end, the Company announced a 10.4% increase in its quarterly dividend from $0.48 to $0.53 per share or $1.92 to $2.12 annualized. The increase was effective with the quarterly dividend paid on July 26, 2013 and was the second such raise in 2013.

CAPITAL TRANSACTIONS:

Illustrated below are key financial ratios at June 30, 2013:

        -  

Debt to Enterprise Value (at $64.79/share)

       

23.9%

-

Debt to Book Cost of Storage Facilities

36.1%

-

Debt to EBITDA Ratio

4.2x

-

Debt Service Coverage

4.6x

 

At June 30, 2013, the Company had approximately $9.6 million of cash on hand, and $111 million available on its line of credit (without considering the additional $75 million available under the expansion feature).

In April, the Company issued 23,755 shares at an average price of $63.61 through its new Dividend Reinvestment Plan. The Company did not issue any shares of its common stock via its previously announced ATM program during the quarter.

As previously announced, the Company refinanced its bank term loan and line of credit totaling $500 million. As a result, the Company expects full year interest expense savings of approximately $4.1 million. A summary is as follows:

             

Previous Credit Facility

       

New Credit Facility

Amount       Amount Maturity       LIBOR Maturity       LIBOR

Available

Outstanding

Date

Spread

Date

Spread

Line of credit $175 million $64 million August 2016 2.00%(2) June 2018 1.50%(2)
Term note $225 million $225 million August 2018 2.00% June 2020 1.65%

Term note (delayed draw)

$100 million

N/A (1)

N/A (1)

N/A(1)

June 2020

1.65%

 
(1)   $100 million new delayed draw term note will be drawn in September 2013 to fund term note maturities. The rate on the delayed draw term note has been fixed at 3.02% through September 4, 2018.
 
(2) The previous and new lines of credit also require a 0.20% facility fee.
 

YEAR 2013 EARNINGS GUIDANCE:

Management is encouraged by strong customer traffic and increasing rental rates in most markets. The following assumptions covering operations have been utilized in formulating updated guidance for the third quarter and full year 2013:

              Same Store

Projected Increases Over 2012

3Q 2013

     

Full Year 2013

 
Revenue 7.0 – 8.0% 7.0 – 8.0%
 
Operating Cost (excluding property taxes) 3.5 – 4.5% 3.0 – 4.0%
Property Taxes

3.5 – 4.0%

4.5 – 5.0%

Total Operating Expenses 3.5 – 4.5% 3.75 – 4.5%
 
Net Operating Income

8.5 – 9.5%

8.5 – 9.5%
 

The Company intends to spend up to $25 million on its expansion and enhancement program. It has also budgeted $15 million to provide for recurring capitalized expenditures including roofing, paving, and office renovations.

Prospective purchases of properties made for the remainder of 2013 are not expected to significantly impact guidance inasmuch as the Company expects to invest in both low occupancy turn-around opportunities as well as stabilized properties. Accordingly, neither the net operating income nor the acquisition costs relating to any acquisitions that may be made in the last two quarters of 2013 are included in guidance.

General and administrative expenses are expected to increase to approximately $36 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 program.

At June 30, 2013, all but $64 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 1.5%.

At June 30, 2013, the Company had 31.4 million shares of common stock outstanding and 0.2 million Operating Partnership Units outstanding.

As a result of the above assumptions, management expects funds from operations for the full year 2013 to be approximately $3.70 to $3.74 per share, and between $0.96 and $0.98 per share for the third quarter of 2013.

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 1, 2013. 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 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 conference ID 417384.

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 471 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)     2013 2012
Assets
Investment in storage facilities:
Land $ 302,930 $ 299,544
Building, equipment and construction in progress   1,480,736     1,456,410  
1,783,666 1,755,954
Less: accumulated depreciation   (349,527 )   (328,952 )
Investment in storage facilities, net 1,434,139 1,427,002
Cash and cash equivalents 9,641 7,255
Accounts receivable 3,456 3,450
Receivable from joint venture 655 856
Investment in joint venture 36,571 34,255
Prepaid expenses 5,704 4,947
Intangible asset - in-place customer leases (net of accumulated
amortization of $12,113 in 2013 and $10,337 in 2012) 1,367 2,891
Fair value of interest rate swap agreements 889 -
Other assets   4,992     3,785  
Total Assets $ 1,497,414   $ 1,484,441  
 
Liabilities
Line of credit $ 64,000 $ 105,000
Term notes 575,000 575,000
Accounts payable and accrued liabilities 28,665 36,667
Deferred revenue 7,094 6,416
Fair value of interest rate swap agreements 7,850 15,707
Mortgages payable   4,161     4,251  
Total Liabilities 686,770 743,041
 
Noncontrolling redeemable Operating Partnership Units at redemption value 12,893 12,670
 
Equity
Common stock 326 316
Additional paid-in capital 1,001,821 943,604
Accumulated deficit (170,740 ) (172,773 )
Accumulated other comprehensive loss (6,481 ) (15,242 )
Treasury stock at cost   (27,175 )   (27,175 )
Total Shareholders' Equity   797,751     728,730  
Total Liabilities and Equity $ 1,497,414   $ 1,484,441  
 

 

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

           
April 1, 2013 April 1, 2012
to to
(dollars in thousands, except share data) June 30, 2013       June 30, 2012
 
Revenues
Rental income $ 62,601 $ 53,070
Other operating income 3,951 3,189
Management fee income   1,063     869  
Total operating revenues 67,615 57,128
 
Expenses
Property operations and maintenance 14,734 13,240
Real estate taxes 6,404 5,523
General and administrative 8,988 7,970
Acquisition related costs - 1,300
Depreciation and amortization 10,493 9,199
Amortization of in-place customer leases   954     940  
Total operating expenses   41,573     38,172  
 
Income from operations 26,042 18,956
 
Other income (expense)
Interest expense (A) (8,446 ) (8,311 )
Interest income 1 -
Equity in income of joint ventures   455     205  
 
Income from continuing operations 18,052 10,850
Income from discontinued operations   -     1,010  
Net income 18,052 11,860
Net income attributable to noncontrolling interests   (115 )   (139 )
Net income attributable to common shareholders $ 17,937   $ 11,721  
 
Earnings per common share attributable to common shareholders - basic
Continuing operations $ 0.57 $ 0.38
Discontinued operations $ -   $ 0.03  
Earnings per share - basic $ 0.57   $ 0.41  
 
Earnings per common share attributable to common shareholders - diluted
Continuing operations $ 0.57 $ 0.37
Discontinued operations $ -   $ 0.03  
Earnings per share - diluted $ 0.57   $ 0.40  
 
Common shares used in basic
earnings per share calculation 31,275,850 28,883,464
 
Common shares used in diluted
earnings per share calculation 31,425,016 29,000,996
 
Dividends declared per common share $ 0.4800   $ 0.4500  
 
 
(A) Interest expense for the three months ending June 30 consists of the following
Interest expense $ 8,232 $ 8,102
Amortization of deferred financing fees   214     209  
Total interest expense $ 8,446   $ 8,311  
 

 

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

           
January 1, 2013 January 1, 2012
to to
(dollars in thousands, except share data) June 30, 2013 June 30, 2012
 
Revenues
Rental income $ 122,596 $ 104,283
Other operating income 7,318 5,998
Management fee income 2,036 1,674
Acquisition fee income   -     146  
Total operating revenues 131,950 112,101
 
Expenses
Property operations and maintenance 30,018 26,675
Real estate taxes 12,864 11,006
General and administrative 17,781 15,535
Acquisition related costs 486 1,307
Depreciation and amortization 20,852 18,211
Amortization of in-place customer leases   1,885     1,822  
Total operating expenses   83,886     74,556  
 
Income from operations 48,064 37,545
 
Other income (expense)
Interest expense (B) (16,904 ) (16,565 )
Interest income 1 3
Gain on sale of real estate 421 -
Equity in income of joint ventures   842     273  
 
Income from continuing operations 32,424 21,256
Income from discontinued operations   -     1,873  
Net income 32,424 23,129
Net income attributable to noncontrolling interests   (207 )   (270 )
Net income attributable to common shareholders $ 32,217   $ 22,859  
 
Earnings per common share attributable to common shareholders - basic
Continuing operations $ 1.04 $ 0.73
Discontinued operations $ -   $ 0.06  
Earnings per share - basic $ 1.04   $ 0.79  
 
Earnings per common share attributable to common shareholders - diluted
Continuing operations $ 1.04 $ 0.73
Discontinued operations $ -   $ 0.06  
Earnings per share - diluted $ 1.04   $ 0.79  
 
Common shares used in basic
earnings per share calculation 30,882,352 28,834,564
 
Common shares used in diluted
earnings per share calculation 31,039,756 28,939,366
 
Dividends declared per common share $ 0.9600   $ 0.9000  
 
 
(B) Interest expense for the six months ending June 30 consists of the following
Interest expense $ 16,481 $ 16,147
Amortization of deferred financing fees   423     418  
Total interest expense $ 16,904   $ 16,565  
 

 
COMPUTATION OF FUNDS FROM OPERATIONS (FFO) (1) - (unaudited)
             
April 1, 2013 April 1, 2012
to to
(dollars in thousands, except share data) June 30, 2013       June 30, 2012
 
Net income attributable to common shareholders $ 17,937 $ 11,721
Net income attributable to noncontrolling interests 115 139
Depreciation of real estate and amortization of intangible
assets exclusive of deferred financing fees 11,227 10,047
Depreciation of real estate included in discontinued operations - 352
Depreciation and amortization from unconsolidated joint ventures 372 430
Funds from operations allocable to noncontrolling
interest in Operating Partnership   (189 )   (266 )
Funds from operations available to common shareholders   29,462     22,423  
FFO per share - diluted $ 0.94 $ 0.77
 
Non-recurring Adjustments to FFO
Acquisition costs expensed - 1,300
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 )
Adjusted funds from operations available to common shareholders   29,462     23,723  
Adjusted FFO per share - diluted $ 0.94 $ 0.82
 
Common shares - diluted 31,425,016 29,000,996
 
 
January 1, 2013 January 1, 2012
to to
(dollars in thousands, except share data) June 30, 2013       June 30, 2012
 
Net income attributable to common shareholders $ 32,217 $ 22,859
Net income attributable to noncontrolling interests 207 270
Depreciation of real estate and amortization of intangible
assets exclusive of deferred financing fees 22,318 19,849
Depreciation of real estate included in discontinued operations - 703
Depreciation and amortization from unconsolidated joint ventures 746 820
Gain on sale of real estate (421 ) -
Funds from operations allocable to noncontrolling
interest in Operating Partnership   (351 )   (520 )
Funds from operations available to common shareholders   54,716     43,981  
FFO per share - diluted $ 1.76 $ 1.52
 
Non-recurring Adjustments to FFO
Acquisition costs expensed 486 1,307
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   (3 )   (15 )
Adjusted funds from operations available to common shareholders   55,199     45,289  
Adjusted FFO per share - diluted $ 1.78 $ 1.56
 
Common shares - diluted 31,039,756 28,939,366
 
 
(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, 2013     April 1, 2012            
to to Percentage
(dollars in thousands) June 30, 2013     June 30, 2012 Change         Change
 
Revenues:
Rental income $ 57,148 $ 52,592 $ 4,556 8.7 %
Tenant insurance commissions 1,796 1,381 415 30.1 %
Other operating income   1,339   1,373   (34 ) -2.5 %
Total operating revenues 60,283 55,346 4,937 8.9 %
 
Expenses:
Payroll and benefits 5,682 5,614 68 1.2 %
Real estate taxes 5,656 5,452 204 3.7 %
Utilities 2,175 2,182 (7 ) -0.3 %
Repairs and maintenance 1,947 1,900 47 2.5 %
Office and other operating expense 2,129 2,019 110 5.4 %
Insurance 987 883 104 11.8 %
Advertising & yellow pages   358   447   (89 ) -19.9 %
Total operating expenses   18,934   18,497   437   2.4 %
 
Net operating income (3) $ 41,349 $ 36,849 $ 4,500   12.2 %
 
 
QTD Same store move ins 43,773 46,063 (2,290 )
 
QTD Same store move outs 36,422 34,733 1,689
 
 
(2) Includes the 362 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.
 

(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, 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, 2013 January 1, 2012
to to Percentage
(dollars in thousands) June 30, 2013     June 30, 2012 Change         Change
 
Revenues:
Rental income $ 112,196 $ 103,663 $ 8,533 8.2 %
Tenant insurance commissions 3,437 2,644 793 30.0 %
Other operating income   2,490     2,558     (68 )   -2.7 %
Total operating revenues 118,123 108,865 9,258 8.5 %
 
Expenses:
Payroll and benefits 11,406 11,277 129 1.1 %
Real estate taxes 11,321 10,904 417 3.8 %
Utilities 4,455 4,382 73 1.7 %
Repairs and maintenance 4,254 3,988 266 6.7 %
Office and other operating expense 4,274 4,034 240 5.9 %
Insurance 1,905 1,723 182 10.6 %
Advertising & yellow pages   731     978     (247 )   -25.3 %
Total operating expenses   38,346     37,286     1,060     2.8 %
 
Net operating income (3) $ 79,777   $ 71,579   $ 8,198     11.5 %
 
 
YTD Same store move ins 79,810 83,654 (3,844 )
 
YTD Same store move outs 70,905 68,118 2,787
 
 
OTHER DATA Same Store (2) All Stores (4)
  2013     2012     2013     2012  
 
Weighted average quarterly occupancy 89.7 % 85.9 % 88.3 % 85.6 %
 
Occupancy at June 30 91.0 % 87.7 % 89.8 % 87.4 %
 
Rent per occupied square foot $ 10.75 $ 10.38 $ 10.89 $ 10.31
 
(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, 2013:
     
Beginning balance $ 1,755,954
Property acquisitions 21,939
Improvements and equipment additions:
Expansions 5,954
Roofing, paving, and equipment:
Stabilized stores 4,056
Recently acquired stores 571
Change in construction in progress (Total CIP $8.3 million) (103 )
Dispositions and Impairments   (4,705 )
Storage facilities at cost at period end $ 1,783,666  
 
 

Comparison of Selected G&A Costs

Quarter Ended

June 30, 2013

June 30, 2012

 
Management and administrative salaries and benefits 4,760 3,923
Internet advertising & marketing 1,379 1,053
Training 256 306
Call center 401 390
Uncle Bob's Management costs 137 107
Income taxes 332 557
Other administrative expenses (5)   1,723     1,634
$ 8,988   $ 7,970
 
(5) Other administrative expenses include professional fees, office rent, travel expense, investor relations and miscellaneous other expenses.
 
 

June 30, 2013

June 30, 2012

 
Common shares outstanding 31,416,052 29,396,351
Operating Partnership Units outstanding 199,163 339,025

 
Exhibit A
 
Sovran Self Storage, Inc.
 
Same Store Performance Summary
Three Months Ended June 30, 2013
(unaudited)
 
             

 

                     

Avg Qtrly

Avg Quarterly Occupancy Revenue Expenses NOI

 

Rent per

for the Three Months Ended for the Three Months for the Three Months for the Three Months

Square

Occupied

June 30, Ended June 30, Ended June 30, Ended June 30,
State       Stores    

Feet

   

Square Foot

    2013     2012 2013     2012     % Change 2013     2012     % Change 2013     2012     % Change
                           
Alabama 22 1,648 $ 7.87 86.9 % 81.8 % $ 3,069 $ 2,835 8.25 % $ 886 $ 941 -5.84 % $   2,183 $   1,894 15.26 %
Arizona 9 536 10.24 86.0 % 88.1 % 1,266 1,215 4.20 % 388 373 4.02 % 878 842 4.28 %
Connecticut 5 295 17.50 93.9 % 90.3 % 1,249 1,171 6.66 % 358 347 3.17 % 891 824 8.13 %
Florida 54 3,540 10.23 88.4 % 82.1 % 8,511 7,863 8.24 % 2,760 2,811 -1.81 % 5,751 5,052 13.84 %
Georgia 23 1,491 9.75 88.1 % 85.0 % 3,418 3,204 6.68 % 1,058 1,072 -1.31 % 2,360 2,132 10.69 %
Louisiana 14 816 10.65 90.0 % 88.4 % 2,058 1,940 6.08 % 548 552 -0.72 % 1,510 1,388 8.79 %
Maine 2 114 12.46 92.2 % 88.0 % 345 306 12.75 % 89 91 -2.20 % 256 215 19.07 %
Maryland 3 139 16.06 89.5 % 91.5 % 515 515 0.00 % 154 166 -7.23 % 361 349 3.44 %
Massachusetts 12 656 13.52 92.8 % 86.6 % 2,172 1,954 11.16 % 660 622 6.11 % 1,512 1,332 13.51 %
Mississippi 12 916 9.27 89.5 % 85.6 % 2,011 1,872 7.43 % 583 588 -0.85 % 1,428 1,284 11.21 %
Missouri 8 515 11.11 91.5 % 89.8 % 1,347 1,261 6.82 % 452 438 3.20 % 895 823 8.75 %
New Hampshire 4 261 10.80 91.5 % 84.5 % 676 627 7.81 % 202 199 1.51 % 474 428 10.75 %
New Jersey 2 121 16.95 81.8 % 81.9 % 466 471 -1.06 % 192 164 17.07 % 274 307 -10.75 %
New York 28 1,677 13.87 89.0 % 86.4 % 5,424 5,018 8.09 % 1,665 1,559 6.80 % 3,759 3,459 8.67 %
North Carolina 18 1,058 9.51 91.9 % 82.3 % 2,447 2,066 18.44 % 712 709 0.42 % 1,735 1,357 27.86 %
Ohio 17 1,161 9.41 89.4 % 87.7 % 2,566 2,319 10.65 % 760 759 0.13 % 1,806 1,560 15.77 %
Pennsylvania 4 220 9.89 89.7 % 85.0 % 507 478 6.07 % 160 160 0.00 % 347 318 9.12 %
Rhode Island 4 207 12.12 87.9 % 77.3 % 610 491 24.24 % 214 196 9.18 % 396 295 34.24 %
South Carolina 8 449 9.99 87.7 % 88.5 % 1,048 982 6.72 % 379 374 1.34 % 669 608 10.03 %
Tennessee 4 291 9.87 91.6 % 94.9 % 686 646 6.19 % 230 247 -6.88 % 456 399 14.29 %
Texas 91 6,427 11.03 91.8 % 88.8 % 17,002 15,423 10.24 % 5,627 5,327 5.63 % 11,375 10,096 12.67 %
Virginia 18 1,188 10.78 85.9 % 81.0 % 2,890 2,689 7.47 % 857 802 6.86 % 2,033 1,887 7.74 %
                                                                           
Portfolio Total       362     23,726     $ 10.75     89.7 %     85.9 % $ 60,283     $ 55,346     8.92 % $ 18,934     $ 18,497     2.36 % $   41,349     $   36,849     12.21 %
 
Dollars in thousands except for average quarterly rent per occupied square foot. Square feet in thousands.
362 wholly owned same stores.
 

 
Exhibit B
 
Sovran Self Storage, Inc.
 
Debt Maturity Schedule
June 30, 2013
(unaudited)
 
              Current                            
Maturity Basis of Interest
(dollars in thousands)       Date     Rate     Rate (2)     2013     2014     2015     2016     2017     Thereafter     Total
 
Line of credit Jun-2018 Variable 1.69 % $ - $ - $ - $ - $ - $ 64,000 $ 64,000
 
Term note Sep-2013 (1) Swapped to fixed 5.94 % 20,000 - - - - - 20,000
Term note Sep-2013 (1) Fixed 6.26 % 80,000 - - - - - 80,000
Mortgage note Sep-2013 Fixed 6.76 % 881 - - - - - 881
Mortgage note Mar-2014 Fixed 6.35 % 17 949 - - - - 966
Term note Apr-2016 Fixed 6.38 % - - - 150,000 - - 150,000
Term note Jun-2020 Swapped to fixed 4.02 % - - - - - 125,000 125,000
Term note Jun-2020 Swapped to fixed 3.26 % - - - - - 100,000 100,000
Term note Aug-2021 Fixed 5.54 % - - - - - 100,000 100,000
Mortgage note May-2026 Fixed 5.99 % 60 126 134 142 151 1,701 2,314
                                     
$ 100,958 $ 1,075 $ 134 $ 150,142 $ 151 $ 390,701 $ 643,161
 
(1) The Company has secured a delayed draw term loan that is expected to be used to fund the $80 million and $20 million term notes maturing September 2013. The rate on the $100 million delayed draw term note due June 2020 has been swapped to fixed at 3.02% through September 2018.
 
(2) Rate as of June 30, 2013 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 2013.

Sovran Self Storage, Inc.
Andy Gregoire, CFO
Diane Piegza, VP of Corporate Communications
716-633-1850

Source: Sovran Self Storage, Inc.