Press Releases

Sovran Self Storage Reports Fourth Quarter Results; Adjusted FFO Per Share Increases 25.3%

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 and year ended December 31, 2013.

Net income available to common shareholders for the fourth quarter of 2013 was $22.2 million or $0.69 per fully diluted common share. Included in the quarter’s net income is a $2.4 million gain on the sale of four properties. For the same period in 2012, net income available to common shareholders was $13.5 million, or $0.44 per fully diluted common share.

Funds from operations (FFO) for the quarter were $0.98 per fully diluted common share compared to $0.77 for the same period last year. In the fourth quarter of 2013, the Company incurred net acquisition costs of $1.9 million in connection with its property purchases and had a straight line rent adjustment of $0.3 million relating to the lease expense of the former Westy properties. In the fourth quarter of 2012, the Company also incurred acquisition costs of $1.9 million. Absent these charges, adjusted FFO per share was $1.04 and $0.83 for the fourth quarter of 2013 and 2012, respectively.

Improved occupancies and increased rental rates contributed to the increase in FFO for the fourth quarter of 2013.

David Rogers, the Company’s CEO, commented, “We had a very solid quarter which capped off another terrific year. We’re pleased with the strong performance of our core stores, and we are excited about the new properties we acquired during the fourth quarter and the first weeks of the new year.”

OPERATIONS:

Total revenues increased 16.8% over last year’s fourth quarter, while operating costs increased 13.0%, resulting in an NOI (3) increase of 18.7%. Overall occupancy averaged 88.7% for the period and rental rates improved to an average of $11.37 per sq. ft.

Revenues for the 358 stores wholly owned by the Company for the entire quarter of each year increased 6.6% from those of the fourth quarter of 2012, the result of a 210 basis point increase in average occupancy, a 3.3% increase in rental rates and strong growth in insurance commissions.

Same store operating expenses increased 5.5% for the fourth quarter of 2013 compared to the prior year period. The increase was primarily the result of increased property tax charges of 17.3%, driven by property tax reassessments in Harris County, TX.

Consequently, same store net operating income increased 7.2% this period over the fourth quarter of 2012.

General and administrative expenses decreased by approximately $0.4 million over the same period in 2012, primarily due to reduced bonuses and incentives paid in 2013, offset by increases in internet advertising and call center costs.

During the fourth quarter of 2013, the Company experienced positive same store revenue and NOI growth in every state in which it operates. The stores with the strongest revenue impact include those in Texas, Florida, New York and North Carolina.

For the full year 2013, same store revenues increased by 7.7% and same store NOI improved by 9.9%. Same store occupancy at December 31 increased by 210 basis points to 89.1% from that of December 31, 2012.

PROPERTIES:

For the year ended 2013, the Company acquired a total of 11 stores for its own portfolio at a cost of $94.9 million. It also entered into an agreement to lease four properties with an option to purchase the assets in 2015 at a price of $120 million.

Included in the 2013 purchases are the previously announced five properties purchased during the fourth quarter 2013 for a combined purchase price of $44.7 million. All are located in markets where the Company already has a presence – one each in Connecticut, Texas and Southeast Florida, and two in New Jersey.

The Company also disposed of four facilities during the fourth quarter of 2013. The properties, located in Tallahassee, FL (2); Dayton, OH; and Christiansburg, VA sold for $12.3 million. The Company recognized a gain of approximately $2.4 million on the transactions.

The Uncle Bob’s Third Party Management program added a net of seven properties in 2013; it now manages a total of 77 properties including properties managed for the Company’s unconsolidated joint ventures.

To date in 2014, the Company has acquired six properties at a total cost of $86.7 million. Two of these acquisitions were previously announced and are located in Southeast Florida; the combined purchase price was $54.0 million. Four additional properties have also been acquired at a cost of $32.7 million. Two of these facilities are located in Portland, ME and one each in San Antonio, TX and Austin, TX. The properties total approximately 460,000 sq. ft. of rentable space and all are located in markets where the Company already has a presence.

COMMON STOCK DIVIDEND:

Subsequent to quarter end, the Company announced a 28.3% increase in its quarterly dividend to $0.68 per share or $2.72 annualized.

CAPITAL TRANSACTIONS:

Illustrated below are key financial ratios at December 31, 2013:

  • Debt to Enterprise Value (at $65.17/share) 22.7%
  • Debt to Book Cost of Storage Facilities 33.6%
  • Debt to EBITDA Ratio 3.9x
  • Debt Service Coverage 5.5x

At December 31, 2013, the Company had approximately $9.5 million of cash on hand, and $125.3 million available on its line of credit (without considering the additional $75 million available under the expansion feature).

The Company issued 400,909 shares of its common stock via its previously announced ATM program during the quarter at an average price of $65.91 per share, resulting in net proceeds of $26.1 million after issuance costs. The Company used the proceeds to fund the purchase of the aforementioned properties. Also, in October, the Company issued 21,490 shares at an average price of $75.81 through its Dividend Reinvestment Plan.

YEAR 2014 EARNINGS GUIDANCE:

Management is encouraged by its customers’ average length of stay, rent growth, and resiliency in most markets. The following assumptions covering operations have been utilized in formulating guidance for the first quarter and full year 2014:

      Same Store

Projected Increases Over 2013

1Q 2014   Full Year 2014
Revenue 6.0 – 7.0% 5.0 – 6.0%

Operating Costs (excluding property taxes)

4.0 – 5.0% 3.5 – 4.5%
Property Taxes 8.5 – 9.5% 8.0 – 9.0%
Total Operating Expenses 5.5 – 6.5% 5.0 – 6.0%
Net Operating Income 6.0 – 7.0% 5.5 – 6.5%
 

The Company intends to spend up to $30 million on its expansion and enhancement program. It has also budgeted $17 million to provide for recurring capitalized expenditures including roofing, paving, and office renovations.

In addition to the $86.7 million of properties acquired thus far in the first quarter, the Company has assumed $100 million of additional acquisitions in 2014. Per share FFO guidance is projected after adding back third party acquisition costs.

General and administrative expenses are expected to increase to approximately $39 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, Corporate Alliance and third party management programs.

At December 31, 2013, all but $49 million of the Company’s debt was either fixed rate or covered by rate swap contracts that essentially fix the rate. The Company intends to repay its line borrowings outstanding as of March 31, 2014 (projected at approximately $150 million as a result of first quarter property purchases) with the issuance of a long term note at a fixed rate of interest assumed at 4.5%. 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%. The Company may enter into swap contracts to fix the floating rate notes; and/or replace the line debt with longer term fixed rate obligations.

At December 31, 2013, the Company had 32.5 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 2014 to be approximately $4.19 to $4.23 per share, and between $0.94 and $0.96 per share for the first quarter of 2014.

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 Fourth Quarter Earnings Release Conference Call at 9:00 a.m. Eastern Time on Wednesday, February 26, 2014. 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 “events and conference calls” under 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 13575332.

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 484 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)
 
December 31, December 31,
(dollars in thousands)   2013     2012  
Assets
Investment in storage facilities:
Land $ 312,053 $ 297,648
Building, equipment and construction in progress   1,552,584     1,444,706  
1,864,637 1,742,354
Less: accumulated depreciation   (366,472 )   (324,963 )
Investment in storage facilities, net 1,498,165 1,417,391
Cash and cash equivalents 9,524 7,255
Accounts receivable 5,119 3,437
Receivable from joint venture 883 856
Investment in joint venture 30,391 34,255
Prepaid expenses 5,978 4,934
Intangible asset - in-place customer leases (net of accumulated
amortization of $13,551 in 2013 and $10,337 in 2012) 1,092 2,891
Fair value of interest rate swap agreements 794 -
Other assets 9,929 3,785
Net assets of discontinued operations   -     9,506  
Total Assets $ 1,561,875   $ 1,484,310  
 
Liabilities
Line of credit $ 49,000 $ 105,000
Term notes 575,000 575,000
Accounts payable and accrued liabilities 37,741 36,564
Deferred revenue 6,708 6,388
Fair value of interest rate swap agreements 7,523 15,707
Mortgages payable   2,254     4,251  
Total Liabilities 678,226 742,910
 
Noncontrolling redeemable Operating Partnership Units at redemption value 12,940 12,670
 
Equity
Common stock 337 316
Additional paid-in capital 1,066,399 943,604
Accumulated deficit (162,450 ) (172,773 )
Accumulated other comprehensive loss (6,402 ) (15,242 )
Treasury stock at cost   (27,175 )   (27,175 )
Total Shareholders' Equity   870,709     728,730  
Total Liabilities and Equity $ 1,561,875   $ 1,484,310  
 

CONSOLIDATED STATEMENTS OF OPERATIONS    
(unaudited)
October 1, 2013 October 1, 2012
to to
(dollars in thousands, except share data) December 31, 2013 December 31, 2012
 
Revenues
Rental income $ 66,387 $ 57,440
Other operating income 4,604 3,323
Management fee income   1,074     914  
Total operating revenues 72,065 61,677
 
Expenses
Property operations and maintenance 16,028 14,608
Real estate taxes 6,761 5,562
General and administrative 8,194 8,605
Acquisition related costs 1,866 1,947
Operating leases of storage facilities 1,331 -
Depreciation and amortization 10,740 9,826
Amortization of in-place customer leases   641     517  
Total operating expenses   45,561     41,065  
 
Income from operations 26,504 20,612
 
Other income (expense)
Interest expense (A) (7,173 ) (8,252 )
Interest income 37 1
Gain on sale of real estate - 687
Equity in income of joint ventures   531     327  
 
Income from continuing operations 19,899 13,375
Income from discontinued operations (including gain on sale of $2.4 million in 2013)   2,472     179  
Net income 22,371 13,554
Net income attributable to noncontrolling interests   (138 )   (92 )
Net income attributable to common shareholders $ 22,233   $ 13,462  
 
Earnings per common share attributable to common shareholders - basic
Continuing operations $ 0.62 $ 0.43
Discontinued operations $ 0.08   $ 0.01  
Earnings per share - basic $ 0.70   $ 0.44  
 
Earnings per common share attributable to common shareholders - diluted
Continuing operations $ 0.61 $ 0.43
Discontinued operations $ 0.08   $ 0.01  
Earnings per share - diluted $ 0.69   $ 0.44  
 
Common shares used in basic
earnings per share calculation 31,954,775 30,289,256
 
Common shares used in diluted
earnings per share calculation 32,107,986 30,453,059
 
Dividends declared per common share $ 0.53   $ 0.45  
 
 
(A) Interest expense for the three months ending December 31 consists of the following
Interest expense $ 6,978 $ 8,043
Amortization of deferred financing fees   195     209  
Total interest expense $ 7,173   $ 8,252  
 

CONSOLIDATED STATEMENTS OF OPERATIONS    
(unaudited)
January 1, 2013 January 1, 2012
to to
(dollars in thousands, except share data) December 31, 2013 December 31, 2012
 
Revenues
Rental income $ 253,384 $ 217,906
Other operating income 15,906 12,532
Management fee income 4,217 3,496
Acquisition fee income   -     148  
Total operating revenues 273,507 234,082
 
Expenses
Property operations and maintenance 61,316 55,163
Real estate taxes 26,496 22,076
General and administrative 34,939 32,313
Acquisition related costs 3,129 4,328
Operating leases of storage facilities 1,331 -
Depreciation and amortization 41,910 37,225
Amortization of in-place customer leases   3,323     3,317  
Total operating expenses   172,444     154,422  
 
Income from operations 101,063 79,660
 
Other income (expense)
Interest expense (B) (32,000 ) (33,166 )
Interest income 40 4
Gain on sale of real estate 421 687
Equity in income of joint ventures   1,948     936  
 
Income from continuing operations 71,472 48,121
Income from discontinued operations (including gain on sale of $2.4 million in 2013 and $4.5 million in 2012)   3,123     7,520  
Net income 74,595 55,641
Net income attributable to noncontrolling interests   (469 )   (513 )
Net income attributable to common shareholders $ 74,126   $ 55,128  
 
Earnings per common share attributable to common shareholders - basic
Continuing operations $ 2.27 $ 1.62
Discontinued operations $ 0.10   $ 0.26  
Earnings per share - basic $ 2.37   $ 1.88  
 
Earnings per common share attributable to common shareholders - diluted
Continuing operations $ 2.26 $ 1.61
Discontinued operations $ 0.10   $ 0.26  
Earnings per share - diluted $ 2.36   $ 1.87  
 
Common shares used in basic
earnings per share calculation 31,297,126 29,358,312
 
Common shares used in diluted
earnings per share calculation 31,453,283 29,489,025
 
Dividends declared per common share $ 2.02   $ 1.80  
 
 
(B) Interest expense for the year ending December 31 consists of the following
Interest expense $ 31,166 $ 32,330
Amortization of deferred financing fees   834     836  
Total interest expense $ 32,000   $ 33,166  
 

COMPUTATION OF FUNDS FROM OPERATIONS (FFO) (1) - (unaudited)
   
October 1, 2013 October 1, 2012
to to
(dollars in thousands, except share data) December 31, 2013 December 31, 2012
 
Net income attributable to common shareholders $ 22,233 $ 13,462
Net income attributable to noncontrolling interests 138 92
Depreciation of real estate and amortization of intangible
assets exclusive of deferred financing fees 11,158 10,236
Depreciation of real estate included in discontinued operations 47 88
Depreciation and amortization from unconsolidated joint ventures 377 389
Gain on sale of real estate (2,431 ) (687 )
Funds from operations allocable to noncontrolling
interest in Operating Partnership   (194 )   (160 )
Funds from operations available to common shareholders   31,328     23,420  
FFO per share - diluted $ 0.98 $ 0.77
 
Non-recurring Adjustments to FFO
Acquisition costs expensed 1,866 1,947
Operating leases straight line rent adjustment 331 -
Funds from operations resulting from non-recurring items allocable to noncontrolling
interest in Operating Partnership   (14 )   (13 )
Adjusted funds from operations available to common shareholders   33,511     25,354  
Adjusted FFO per share - diluted $ 1.04 $ 0.83
 
Common shares - diluted 32,107,986 30,453,059
 
 
January 1, 2013 January 1, 2012
to to
(dollars in thousands, except share data) December 31, 2013 December 31, 2012
 
Net income attributable to common shareholders $ 74,126 $ 55,128
Net income attributable to noncontrolling interests 469 513
Depreciation of real estate and amortization of intangible
assets exclusive of deferred financing fees 44,369 40,153
Depreciation of real estate included in discontinued operations 313 1,137
Depreciation and amortization from unconsolidated joint ventures 1,496 1,595
Gain on sale of real estate (2,852 ) (5,185 )
Funds from operations allocable to noncontrolling
interest in Operating Partnership   (742 )   (881 )
Funds from operations available to common shareholders   117,179     92,460  
FFO per share - diluted $ 3.72 $ 3.14
 
Non-recurring Adjustments to FFO
Acquisition costs expensed 3,129 4,328
Operating leases straight line rent adjustment 331 -
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   (22 )   (37 )
Adjusted funds from operations available to common shareholders   120,617     96,767  
Adjusted FFO per share - diluted $ 3.83 $ 3.28
 
Common shares - diluted 31,453,283 29,489,025
 
(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) * (unaudited)                 October 1, 2013   October 1, 2012    
to to Percentage
(dollars in thousands) December 31, 2013 December 31, 2012 Change   Change
 
Revenues:
Rental income $ 57,894 $ 54,547 $       3,347 6.1 %
Tenant insurance commissions 1,861 1,531 330 21.6 %
Other operating income   1,412   1,287         125   9.7 %
Total operating revenues 61,167 57,365 3,802 6.6 %
 
Expenses:
Payroll and benefits 5,583 5,591 (8 ) -0.1 %
Real estate taxes 6,076 5,182 894 17.3 %
Utilities 2,158 2,098 60 2.9 %
Repairs and maintenance 2,494 2,530 (36 ) -1.4 %
Office and other operating expense 2,257 2,202 55 2.5 %
Insurance 972 870 102 11.7 %
Advertising & yellow pages   342   376         (34 ) -9.0 %
Total operating expenses   19,882   18,849         1,033   5.5 %
 
Net operating income (3) $ 41,285 $ 38,516 $       2,769   7.2 %
 
 
QTD Same store move ins 33,601 34,055 (454 )
 
QTD Same store move outs 35,763 36,670 (907 )
 
(2) Includes the 358 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) ** (unaudited)               January 1, 2013   January 1, 2012    
to to Percentage
(dollars in thousands) December 31, 2013 December 31, 2012 Change   Change
 
Revenues:
Rental income $ 228,357 $ 212,596 $         15,761 7.4 %
Tenant insurance commissions 7,126 5,647 1,479 26.2 %
Other operating income   5,158     5,098             60     1.2 %
Total operating revenues 240,641 223,341 17,300 7.7 %
 
Expenses:
Payroll and benefits 22,521 22,277 244 1.1 %
Real estate taxes 22,999 21,417 1,582 7.4 %
Utilities 9,262 9,167 95 1.0 %
Repairs and maintenance 8,734 8,488 246 2.9 %
Office and other operating expense 8,776 8,339 437 5.2 %
Insurance 3,819 3,435 384 11.2 %
Advertising & yellow pages   1,411     1,734             (323 )   -18.6 %
Total operating expenses   77,522     74,857             2,665     3.6 %
 
Net operating income (3) $ 163,119   $ 148,484   $         14,635     9.9 %
 
 
YTD Same store move ins 151,134 157,722 (6,588 )
 
YTD Same store move outs 148,837 146,265 2,572
 
** See exhibit B for supplemental year to date same store data.
 
OTHER DATA Same Store (2) All Stores (4)
  2013     2012             2013     2012
 
Weighted average quarterly occupancy 89.5 % 87.4 % 88.7 % 86.2 %
 
Occupancy at December 31 89.1 % 87.0 % 88.4 % 85.8 %
 
Rent per occupied square foot $ 11.02 $ 10.67 $ 11.37 $ 10.73
 
(4) Does not include unconsolidated joint venture stores managed by the Company
 

Investment in Storage Facilities: (unaudited)

       
The following summarizes activity in storage facilities during the year ended December 31, 2013:
 
Beginning balance $ 1,742,354
Property acquisitions 93,376
Improvements and equipment additions:
Expansions 18,570
Roofing, paving, and equipment:
Stabilized stores 12,206
Recently acquired stores 1,465
Change in construction in progress (Total CIP $9.8 million) 1,570
Dispositions and Impairments   (4,904 )
Storage facilities at cost at period end $ 1,864,637  
 
 

Comparison of Selected G&A Costs (unaudited)

Quarter Ended Year-to-Date
December 31, 2013 December 31, 2012 December 31, 2013 December 31, 2012
 
Management and administrative salaries and benefits 4,336 5,277 18,699 17,147
Internet advertising & marketing 1,155 910 4,803 3,848
Training 407 424 1,310 1,315
Call center 409 355 1,573 1,530
Uncle Bob's Management costs 105 166 508 481
Income taxes (58 ) (270 ) 936 1,326
Other administrative expenses (5)   1,840     1,743     7,110   6,666
$ 8,194   $ 8,605   $ 34,939 $ 32,313
 
(5) Other administrative expenses include professional fees, office rent, travel expense, investor relations and miscellaneous other expenses.
 
 
December 31, 2013 December 31, 2012
 
Common shares outstanding 32,532,991 30,446,620
Operating Partnership Units outstanding 198,913 204,028
 

Exhibit A
                             
Sovran Self Storage, Inc.
 
Same Store Performance Summary
Three Months Ended December 31, 2013
(unaudited)
 
 

 

Avg Qtrly Avg Quarterly Occupancy Revenue Expenses NOI
Rent per for the Three Months for the Three Months for the Three Months for the Three Months

Square

Occupied Ended December 31, Ended December 31, Ended December 31, Ended December 31,
State   Stores  

Feet

 

Square Foot

  2013   2012     2013     2012   % Change     2013     2012   % Change   2013     2012   % Change  
 
Alabama 22 1,635 $ 7.88 86.6 % 83.3 % $ 3,003 $ 2,893 3.80 % $ 898 $ 907 -0.99 % $ 2,105 $ 1,986 5.99 %
Arizona 9 533 10.56 87.7 % 85.3 % 1,317 1,228 7.25 % 314 389 -19.28 % 1,003 839 19.55 %
Connecticut 5 295 18.14 91.7 % 93.0 % 1,262 1,205 4.73 % 397 357 11.20 % 865 848 2.00 %
Florida 52 3,390 10.53 90.0 % 86.5 % 8,506 8,017 6.10 % 2,654 2,581 2.83 % 5,852 5,436 7.65 %
Georgia 23 1,512 9.78 88.6 % 87.7 % 3,467 3,366 3.00 % 1,034 1,001 3.30 % 2,433 2,365 2.88 %
Louisiana 14 816 10.88 90.4 % 88.1 % 2,106 2,006 4.99 % 542 566 -4.24 % 1,564 1,440 8.61 %
Maine 2 114 12.57 88.9 % 87.6 % 335 311 7.72 % 114 112 1.79 % 221 199 11.06 %
Maryland 3 139 16.18 88.6 % 88.6 % 513 512 0.20 % 159 167 -4.79 % 354 345 2.61 %
Massachusetts 12 656 14.06 90.2 % 90.5 % 2,185 2,050 6.59 % 718 683 5.12 % 1,467 1,367 7.32 %
Mississippi 12 916 9.38 89.6 % 87.5 % 2,028 1,932 4.97 % 572 579 -1.21 % 1,456 1,353 7.61 %
Missouri 8 515 11.61 86.0 % 89.3 % 1,343 1,277 5.17 % 410 432 -5.09 % 933 845 10.41 %
New Hampshire 4 261 11.32 91.1 % 90.0 % 702 652 7.67 % 213 203 4.93 % 489 449 8.91 %
New Jersey 2 121 16.96 88.7 % 79.7 % 473 443 6.77 % 203 226 -10.18 % 270 217 24.42 %
New York 28 1,659 13.86 91.3 % 85.4 % 5,847 5,394 8.40 % 1,726 1,695 1.83 % 4,121 3,699 11.41 %
North Carolina 18 1,057 9.82 91.6 % 86.8 % 2,504 2,231 12.24 % 713 685 4.09 % 1,791 1,546 15.85 %
Ohio 16 1,089 9.82 88.6 % 87.6 % 2,481 2,317 7.08 % 777 639 21.60 % 1,704 1,678 1.55 %
Pennsylvania 4 220 9.85 90.5 % 86.3 % 508 484 4.96 % 168 150 12.00 % 340 334 1.80 %
Rhode Island 4 206 12.23 89.1 % 82.1 % 617 551 11.98 % 221 217 1.84 % 396 334 18.56 %
South Carolina 8 449 10.37 88.8 % 87.4 % 1,093 984 11.08 % 349 315 10.79 % 744 669 11.21 %
Tennessee 4 291 10.19 88.8 % 91.7 % 685 666 2.85 % 245 257 -4.67 % 440 409 7.58 %
Texas 91 6,469 11.43 90.6 % 89.9 % 17,392 16,202 7.34 % 6,607 5,867 12.61 % 10,785 10,335 4.35 %
Virginia 17 1,152 10.96 84.9 % 82.0 % 2,800 2,644 5.90 % 848 821 3.29 % 1,952 1,823 7.08 %
                                                   
Portfolio Total   358   23,495   $ 11.02   89.5 %   87.4 % $ 61,167   $ 57,365   6.63 % $ 19,882   $ 18,849   5.48 % $ 41,285   $ 38,516   7.19 %
 
Dollars in thousands except for average quarterly rent per occupied square foot. Square feet in thousands.
358 wholly owned same stores.
 

Exhibit B
                     
Sovran Self Storage, Inc.
 
Same Store Performance Summary
Twelve Months Ended December 31, 2013
(unaudited)
 
 
Revenue Expenses NOI
for the Twelve Months for the Twelve Months for the Twelve Months
Square Ended December 31, Ended December 31, Ended December 31,
State   Stores  

Feet

  2013     2012   % Change     2013     2012   % Change     2013     2012   % Change  
 
Alabama 22 1,635 $ 12,177 $ 11,426 6.57 % $ 3,698 $ 3,769 -1.88 % $ 8,479 $ 7,657 10.74 %
Arizona 9 533 5,163 4,924 4.85 % 1,507 1,571 -4.07 % 3,656 3,353 9.04 %
Connecticut 5 295 5,009 4,742 5.63 % 1,544 1,451 6.41 % 3,465 3,291 5.29 %
Florida 52 3,390 33,231 31,001 7.19 % 10,702 10,759 -0.53 % 22,529 20,242 11.30 %
Georgia 23 1,512 13,777 13,128 4.94 % 4,248 4,243 0.12 % 9,529 8,885 7.25 %
Louisiana 14 816 8,340 7,884 5.78 % 2,239 2,241 -0.09 % 6,101 5,643 8.12 %
Maine 2 114 1,363 1,234 10.45 % 416 425 -2.12 % 947 809 17.06 %
Maryland 3 139 2,066 2,051 0.73 % 676 669 1.05 % 1,390 1,382 0.58 %
Massachusetts 12 656 8,675 7,985 8.64 % 2,798 2,675 4.60 % 5,877 5,310 10.68 %
Mississippi 12 916 8,043 7,589 5.98 % 2,327 2,318 0.39 % 5,716 5,271 8.44 %
Missouri 8 515 5,368 5,068 5.92 % 1,820 1,787 1.85 % 3,548 3,281 8.14 %
New Hampshire 4 261 2,753 2,566 7.29 % 845 812 4.06 % 1,908 1,754 8.78 %
New Jersey 2 121 1,834 1,812 1.21 % 808 747 8.17 % 1,026 1,065 -3.66 %
New York 28 1,659 22,200 20,621 7.66 % 6,966 6,664 4.53 % 15,234 13,957 9.15 %
North Carolina 18 1,057 9,789 8,486 15.35 % 2,888 2,806 2.92 % 6,901 5,680 21.50 %
Ohio 16 1,089 9,785 9,014 8.55 % 2,996 2,850 5.12 % 6,789 6,164 10.14 %
Pennsylvania 4 220 2,023 1,927 4.98 % 662 628 5.41 % 1,361 1,299 4.77 %
Rhode Island 4 206 2,443 2,079 17.51 % 890 814 9.34 % 1,553 1,265 22.77 %
South Carolina 8 449 4,243 3,946 7.53 % 1,491 1,402 6.35 % 2,752 2,544 8.18 %
Tennessee 4 291 2,734 2,597 5.28 % 969 995 -2.61 % 1,765 1,602 10.17 %
Texas 91 6,469 68,414 62,745 9.03 % 23,569 22,019 7.04 % 44,845 40,726 10.11 %
Virginia 17 1,152 11,211 10,516 6.61 % 3,463 3,212 7.81 % 7,748 7,304 6.08 %
                                       
Portfolio Total   358   23,495 $ 240,641   $ 223,341   7.75 % $ 77,522   $ 74,857   3.56 % $ 163,119   $ 148,484   9.86 %
 
Dollars in thousands. Square feet in thousands.
358 wholly owned same stores.

Exhibit C
                   
Sovran Self Storage, Inc.
 
Debt Maturity Schedule
December 31, 2013
(unaudited)
 
Current
Maturity Basis of Interest
(dollars in thousands)   Date   Rate   Rate (1)     2014     2015     2016     2017     2018   Thereafter   Total
 
Line of credit Jun-2018 Variable 1.67% $ - $ - $ - $ - $ 49,000 $ - $ 49,000
 
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 Jun-2020 Swapped to fixed 3.02% - - - - - 100,000 100,000
Term note Aug-2021 Fixed 5.54% - - - - - 100,000 100,000
Mortgage note May-2026 Fixed 5.99% 126 134 142 151 160 1,541 2,254
                         
$ 126 $ 134 $ 150,142 $ 151 $ 49,160 $ 426,541 $ 626,254
 
 
(1) Rate as of December 31, 2013 based on existing debt rating. Interest rates shown do not include amortization of financing fees and facility fees which are expected to be $1.1 million in 2014.
 

Sovran Self Storage, Inc.
Diane Piegza, 716-650-6115
Vice President Corporate Communications

Source: Sovran Self Storage, Inc.