Press Releases

Sovran Self Storage Reports Second Quarter Results; Adjusted FFO per Share Increases 14.8%, Acquired Nine Properties

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, 2015.

Second Quarter 2015 Highlights:

  • Achieved adjusted funds from operations ("FFO") per fully diluted common share of $1.24, representing a 14.8% increase over the same period last year.
  • Increased same store revenue by 5.8% and net operating income ("NOI") by 7.8% as compared to the second quarter of 2014.
  • Grew same store average occupancy for the quarter by 130 basis points to 92.1% compared to the same period in 2014. Same store occupancy at June 30, 2015, was 92.7%.
  • Acquired nine self storage facilities for approximately $75 million.
  • Paid a quarterly dividend of $0.75 per share of common stock; subsequent to the end of the quarter, the Company increased the dividend by 13% to $0.85 per share.

Net income available to common shareholders for the second quarter of 2015 was $28.5 million or $0.80 per fully diluted common share. For the same period in 2014, net income available to common shareholders was $20.6 million or $0.62 per fully diluted common share.

Funds from operations (FFO) for the quarter were $1.22 per fully diluted common share compared to $1.00 for the same period last year. In the second quarter of 2015, the Company incurred acquisition costs of $0.8 million in connection with its property purchases. In the second quarter of 2014, the Company incurred $2.1 million of acquisition costs and a $0.5 million straight-line rent adjustment relating to the lease expense of four properties that were subsequently purchased on February 2, 2015. Absent these charges, adjusted FFO per share was $1.24 and $1.08 for the second quarter of 2015 and 2014, respectively.

Increased occupancy, rental rates, and controlled operating costs were the primary contributors to the Company’s strong FFO growth during the quarter.

OPERATIONS:

Total revenues increased 12.8% over last year’s second quarter while operating costs increased 9.9%, resulting in an NOI (4) increase of 14.2%. Overall occupancy averaged 91.4% for the period, and rental rates averaged $12.28 per sq. ft.

Revenues for the 399 stores wholly owned by the Company since January 1, 2014 increased 5.8% from those of the second quarter of 2014, the result of a 130 basis point increase in average occupancy, a 3.9% increase in rental rates and increases in tenant insurance commissions and other income.

Same store operating expenses increased 1.8% for the second quarter of 2015 compared to the prior year period, primarily the result of increased repair and maintenance costs, offset by decreases in utilities cost and marketing expense.

Consequently, same store net operating income increased 7.8% this period over the second quarter of 2014.

General and administrative expenses increased by approximately $0.8 million over the same period in 2014, primarily due to increases in personnel costs associated with operating 30 more stores during the quarter than at this time last year. Beginning with the first quarter of 2015, the company reclassified internet marketing costs from general and administrative expenses to property operations expense for all periods presented so as to be consistent with industry practices.

During the second quarter of 2015, the Company experienced same store revenue growth in 23 of the 24 states in which it operates. Overall, the stores with the strongest revenue impact include those in Texas, Florida, New York and Georgia.

PROPERTIES:

During the quarter, the Company acquired nine storage facilities at a cost of approximately $75 million. Two of the stores, one in Phoenix, AZ, and the other in Boston, MA, were purchased upon completion of construction. The other seven stores are established; five of which are in southern Florida, one in Dallas, TX, and the other in Jacksonville, FL.

At June 30, 2015, the Company was in contract to acquire an additional 13 stores for total consideration of $85 million. These pending acquisitions are subject to further due diligence and closing conditions; therefore no assurance can be given that these properties will be purchased according to the terms described.

CAPITAL TRANSACTIONS:

Illustrated below are key financial ratios at June 30, 2015:

  • Debt to Enterprise Value (at $86.91/share) 21.3%
  • Debt to Book Cost of Storage Facilities 35.4%
  • Debt to EBITDA Ratio 4.0x
  • Debt Service Coverage 5.9x

At June 30, 2015, the Company had approximately $6.6 million of cash on hand, and $204 million available on its line of credit.

During the quarter, the Company issued 199,700 shares pursuant to its “At The Market” (ATM) program at an average price of $91.53 per share. The net proceeds of $18 million were used to acquire the aforementioned properties. In April, the Company issued 44,869 shares at a price of $88.98 through its Dividend Reinvestment Plan.

COMMON STOCK DIVIDEND:

Subsequent to quarter-end, the Company’s Board of Directors approved a quarterly dividend of $0.85 per share or $3.40 annualized.

YEAR 2015 EARNINGS GUIDANCE:

Management is encouraged by its occupancy gains and its ability to attain significant rental rate growth in most markets. The following assumptions covering operations have been utilized in formulating guidance for the third quarter and full year 2015:

  Same Store

Projected Increases Over 2014

3Q 2015     Full Year 2015
Revenue 5.5 – 6.5% 5.5 – 6.5%
Operating Costs (excluding property taxes) 3.0 – 4.0% 2.5 – 3.5%
Property Taxes 2.5 – 3.5% 5.0 – 6.0%
Total Operating Expenses 2.5 – 3.5% 3.0 – 4.0%
Net Operating Income 7.0 – 8.0% 6.5 – 7.5%

The Houston market comprises approximately 10.8% of the 2015 forecasted NOI of the Company’s 442 wholly owned stores, and is expected to perform at least as well as the overall portfolio. Forecasts for the 40 same store pool of properties in the Company’s Houston market include revenue growth of 6.0% – 6.5%, operating expense increases of 3.0% – 4.0% (inclusive of a 5% projected increase in property taxes), and NOI growth of between 7.0% and 8.0%.

The Company intends to spend up to $25-30 million on its expansion and enhancement program. It has also budgeted $19 million to provide for recurring capitalized expenditures including roofing, paving, and office renovations.

The Company has assumed $85 million of accretive acquisitions for the remainder of 2015 in addition to the $209 million of acquisitions completed through June 30, 2015. Per share adjusted FFO guidance is projected after adding back third party acquisition costs. Purchases of these additional properties are expected to be funded via proceeds from the Company’s ATM program and draws on its line of credit which carries an interest rate of LIBOR plus 1.30%.

Annual general and administrative expenses, excluding internet marketing costs, are expected to be approximately $39 million. The increase over the prior year is primarily 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 Corporate Alliance and third party management programs.

At June 30, 2015, the Company had 35.8 million shares of common stock outstanding and 0.2 million Operating Partnership Units outstanding.

As a result of the above assumptions, management expects adjusted funds from operations for the full year 2015 to be approximately $4.83 to $4.89 per share, and between $1.29 and $1.31 per share for the third quarter of 2015.

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, July 30, 2015. 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 “news and events” 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 13613645.

ABOUT SOVRAN SELF STORAGE, INC:

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 over 500 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) 2015   2014
Assets
Investment in storage facilities:
Land $ 456,008 $ 397,642
Building, equipment and construction in progress   1,940,430     1,780,341  
2,396,438 2,177,983
Less: accumulated depreciation   (437,466 )   (411,701 )
Investment in storage facilities, net 1,958,972 1,766,282
Cash and cash equivalents 6,617 8,543
Accounts receivable 6,165 5,758
Receivable from joint venture 811 583
Investment in joint venture 57,580 57,803
Prepaid expenses 5,740 6,533
Intangible asset - in-place customer leases (net of accumulated
amortization of $19,618 in 2015 and $17,662 in 2014) 1,322 2,204
Other assets   7,745     7,094  
Total Assets $ 2,044,952   $ 1,854,800  
 
Liabilities
Line of credit $ 96,000 $ 49,000
Term notes 750,000 750,000
Accounts payable and accrued liabilities 37,259 43,551
Deferred revenue 7,675 7,290
Fair value of interest rate swap agreements 14,892 13,341
Mortgages payable   2,061     2,127  
Total Liabilities 907,887 865,309
 
Noncontrolling redeemable Operating Partnership Units at redemption value 15,742 13,622
 
Equity
Common stock 370 353
Additional paid-in capital 1,331,662 1,183,388
Accumulated deficit (168,963 ) (167,692 )
Accumulated other comprehensive loss (14,571 ) (13,005 )
Treasury stock at cost   (27,175 )   (27,175 )
Total Shareholders' Equity   1,121,323     975,869  
Total Liabilities and Equity $ 2,044,952   $ 1,854,800  

CONSOLIDATED STATEMENTS OF OPERATIONS    
(unaudited)
April 1, 2015 April 1, 2014
to to
(dollars in thousands, except share data) June 30, 2015 June 30, 2014
 
Revenues
Rental income $ 83,487 $ 74,394
Other operating income 5,784 4,758
Management fee income 1,455 1,156
Acquisition fee income   -     136  
Total operating revenues 90,726 80,444
 
Expenses
Property operations and maintenance (1) 19,486 17,993
Real estate taxes 9,145 8,055
General and administrative (1) 9,686 8,864
Acquisition related costs 788 1,938
Operating leases of storage facilities - 1,997
Depreciation and amortization 13,611 11,668
Amortization of in-place customer leases   973     813  
Total operating expenses   53,689     51,328  
 
Income from operations 37,037 29,116
 
Other income (expense)
Interest expense (A) (9,216 ) (8,872 )
Interest income 2 24
Equity in income of joint ventures   853     433  
 
Net income 28,676 20,701
Net income attributable to noncontrolling interests   (144 )   (125 )
Net income attributable to common shareholders $ 28,532   $ 20,576  
 
Earnings per common share attributable to common shareholders - basic $ 0.81   $ 0.63  
 
Earnings per common share attributable to common shareholders - diluted $ 0.80   $ 0.62  
 
Common shares used in basic
earnings per share calculation 35,377,694 32,799,837
 
Common shares used in diluted
earnings per share calculation 35,603,020 32,979,708
 
Dividends declared per common share $ 0.75   $ 0.68  
 
 
(A) Interest expense for the three months ending June 30 consists of the following
Interest expense $ 8,920 $ 8,660
Amortization of deferred financing fees   296     212  
Total interest expense $ 9,216   $ 8,872  
 
 
January 1, 2015 January 1, 2014
to to
(dollars in thousands, except share data) June 30, 2015 June 30, 2014
 
Revenues
Rental income $ 162,373 $ 144,347
Other operating income 10,941 9,165
Management fee income 2,820 2,254
Acquisition fee income   -     136  
Total operating revenues 176,134 155,902
 
Expenses
Property operations and maintenance (1) 40,046 36,478
Real estate taxes 18,064 16,121
General and administrative (1) 19,092 17,400
Acquisition related costs 1,369 4,716
Operating leases of storage facilities 683 3,994
Depreciation and amortization 26,779 22,944
Amortization of in-place customer leases   1,987     1,479  
Total operating expenses   108,020     103,132  
 
Income from operations 68,114 52,770
 
Other income (expense)
Interest expense (A) (18,377 ) (16,216 )
Interest income 4 31
Loss on sale of storage facility (7 ) -
Equity in income of joint ventures   1,499     892  
 
Net income 51,233 37,477
Net income attributable to noncontrolling interests   (250 )   (228 )
Net income attributable to common shareholders $ 50,983   $ 37,249  
 
Earnings per common share attributable to common shareholders - basic $ 1.46   $ 1.14  
 
Earnings per common share attributable to common shareholders - diluted $ 1.45   $ 1.14  
 
Common shares used in basic
earnings per share calculation 34,853,731 32,591,917
 
Common shares used in diluted
earnings per share calculation 35,078,946 32,759,069
 
Dividends declared per common share $ 1.50   $ 1.36  
 
 
(A) Interest expense for the six months ending June 30 consists of the following
Interest expense $ 17,785 $ 15,809
Amortization of deferred financing fees   592     407  
Total interest expense $ 18,377   $ 16,216  
(1) For all periods presented internet marketing costs are included in property operations and maintenance expense. The internet marketing costs had previously been included in general and administrative expenses. For the three months ended June 30, 2015 and 2014, total internet marketing expense was $1,462 and $1,540, respectively. For the six months ended June 30, 2015 and 2014, total internet marketing expense was $3,005 and $2,960, respectively. Same store internet marketing expense for both periods is noted below.

COMPUTATION OF FUNDS FROM OPERATIONS (FFO) (2) - (unaudited)
   
April 1, 2015 April 1, 2014
to to
(dollars in thousands, except share data) June 30, 2015   June 30, 2014
 
Net income attributable to common shareholders $ 28,532 $ 20,576
Net income attributable to noncontrolling interests 144 125
Depreciation of real estate and amortization of intangible
assets exclusive of deferred financing fees 14,308 12,255
Depreciation and amortization from unconsolidated joint ventures 617 360
Loss on sale of real estate - -
Funds from operations allocable to noncontrolling
interest in Operating Partnership   (220 )   (202 )
Funds from operations available to common shareholders   43,381     33,114  
FFO per share - diluted $ 1.22 $ 1.00
 
Adjustments to FFO
Acquisition costs expensed 788 1,938
Company's share of acquisition costs expensed by Sovran HHF Storage Holdings - 185
Acquisition fee income from Sovran HHF Storage Holdings - (136 )
Operating leases straight line rent adjustment - 497
Funds from operations resulting from non-recurring items allocable to noncontrolling
interest in Operating Partnership   (4 )   (15 )
Adjusted funds from operations available to common shareholders   44,165     35,583  
Adjusted FFO per share - diluted $ 1.24 $ 1.08
 
Common shares - diluted 35,603,020 32,979,708
 
 
January 1, 2015 January 1, 2014
to to
(dollars in thousands, except share data) June 30, 2015 June 30, 2014
 
Net income attributable to common shareholders $ 50,983 $ 37,249
Net income attributable to noncontrolling interests 250 228
Depreciation of real estate and amortization of intangible
assets exclusive of deferred financing fees 28,219 23,970
Depreciation and amortization from unconsolidated joint ventures 1,235 736
Loss on sale of real estate 7 -
Funds from operations allocable to noncontrolling
interest in Operating Partnership   (394 )   (378 )
Funds from operations available to common shareholders   80,300     61,805  
FFO per share - diluted $ 2.29 $ 1.89
 
Adjustments to FFO
Acquisition costs expensed 1,369 4,716
Company's share of acquisition costs expensed by Sovran HHF Storage Holdings - 185
Acquisition fee income from Sovran HHF Storage Holdings - (136 )
Operating leases straight line rent adjustment 146 994
Funds from operations resulting from non-recurring items allocable to noncontrolling
interest in Operating Partnership   (7 )   (35 )
Adjusted funds from operations available to common shareholders   81,808     67,529  
Adjusted FFO per share - diluted $ 2.33 $ 2.06
 
Common shares - diluted 35,078,946 32,759,069
(2) 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 (3) * 399 stores owned since 12/31/13 (unaudited)   April 1, 2015   April 1, 2014    
to to Percentage
(dollars in thousands) June 30, 2015   June 30, 2014 Change     Change
 
Revenues:
Rental income $ 75,003 $ 71,081 $ 3,922 5.5%
Tenant insurance commissions 2,756 2,394 362 15.1%
Other operating income   1,506   1,456   50 3.4%
Total operating revenues 79,265 74,931 4,334 5.8%
 
Expenses:
Payroll and benefits 6,791 6,586 205 3.1%
Real estate taxes 7,950 7,689 261 3.4%
Utilities 2,487 2,586

(99

)

-3.8%
Repairs and maintenance 2,734 2,473 261 10.6%
Office and other operating expense 2,532 2,543

(11

)

-0.4%
Insurance 1,014 1,017

(3

)

-0.3%
Advertising & yellow pages 337 366

(29

)

-7.9%
Internet marketing (1)   1,332   1,481  

(149

)

-10.1%
Total operating expenses   25,177   24,741   436 1.8%
 
Net operating income (4) $ 54,088 $ 50,190 $ 3,898 7.8%
 
 
QTD Same store move ins 45,339 47,695

(2,356

)

 
QTD Same store move outs 38,962 40,352

(1,390

)

 
 
OTHER COMPARABLE QUARTERLY SAME STORE DATA * (unaudited) April 1, 2015 April 1, 2014
to to Percentage
June 30, 2015 June 30, 2014 Change Change
Stores owned since 12/31/12 (384 stores) (3)
Revenues $ 74,266 $ 70,127 $ 4,139 5.9%
Expenses including internet advertising   23,554   23,129   425 1.8%
Net operating income (4) $ 50,712 $ 46,998 $ 3,714 7.9%
 
 
 
Stores owned since 12/31/11 (356 stores) (3)
Revenues $ 67,401 $ 63,774 $ 3,627 5.7%
Expenses including internet advertising   21,369   20,860   509 2.4%
Net operating income (4) $ 46,032 $ 42,914 $ 3,118 7.3%
(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) 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 exhibits A and B for supplemental quarterly same store data.
       
YEAR TO DATE SAME STORE DATA (3) * 399 stores owned since 12/31/13 (unaudited) January 1, 2015 January 1, 2014
to to Percentage
(dollars in thousands) June 30, 2015 June 30, 2014 Change Change
 
Revenues:
Rental income $ 146,852 $ 139,240 $ 7,612 5.5 %
Tenant insurance commissions 5,397 4,704 693 14.7 %
Other operating income   2,767     2,668     99     3.7 %
Total operating revenues 155,016 146,612 8,404 5.7 %
 
Expenses:
Payroll and benefits 13,538 13,136 402 3.1 %
Real estate taxes 15,889 15,481 408 2.6 %
Utilities 5,393 5,672 (279 ) -4.9 %
Repairs and maintenance 6,362 5,359 1,003 18.7 %
Office and other operating expense 4,965 5,148 (183 ) -3.6 %
Insurance 2,029 2,116 (87 ) -4.1 %
Advertising & yellow pages 671 734 (63 ) -8.6 %
Internet marketing (1)   2,756     2,874     (118 )   -4.1 %
Total operating expenses   51,603     50,520     1,083     2.1 %
 
Net operating income (4) $ 103,413   $ 96,092   $ 7,321     7.6 %
 
 
YTD Same store move ins 85,004 87,525 (2,521 )
 
YTD Same store move outs 74,141 76,479 (2,338 )
 
OTHER DATA Same Store (3) All Stores (5)  
  2015     2014     2015     2014  
 
Weighted average quarterly occupancy 92.1 % 90.8 % 91.4 % 90.7 %
 
Occupancy at June 30 92.7 % 91.6 % 92.2 % 91.4 %
 
Rent per occupied square foot $ 12.15 $ 11.69 $ 12.28 $ 11.79
 
(5) Does not include unconsolidated joint venture stores or other stores managed by the Company
 
 

Investment in Storage Facilities: (unaudited)

The following summarizes activity in storage facilities during the six months ended June 30, 2015:
 
Beginning balance $ 2,177,983
Property acquisitions 207,837
Improvements and equipment additions:
Expansions 4,028
Roofing, paving, and equipment:
Stabilized stores 6,740
Recently acquired stores 1,429
Change in construction in progress (Total CIP $4.9 million) 165
Dispositions and Impairments   (1,744 )
Storage facilities at cost at period end $ 2,396,438  
 
 

Comparison of Selected G&A Costs (unaudited)

Quarter Ended
June 30, 2015 June 30, 2014
 
Management and administrative salaries and benefits 5,720 5,604
Training 225 277
Call center 491 409
Uncle Bob's Management costs 105 114
Income taxes 617 331
Legal, accounting and professional 662 416
Other administrative expenses (6)   1,866     1,713  
$ 9,686   $ 8,864  
 
(6) Other administrative expenses include office rent, travel expense, investor relations and miscellaneous other expenses.
 
 

Net rentable square feet

June 30, 2015
Wholly owned properties 29,909,957
Joint venture properties 5,190,512
Third party managed properties   1,361,434  
36,461,903
 
 
June 30, 2015 June 30, 2014
 
Common shares outstanding 35,833,639 33,240,930
Operating Partnership Units outstanding 178,866 198,913

Exhibit A
                           
Sovran Self Storage, Inc.
 
Same Store Performance Summary by Market
Three Months Ended June 30, 2015
(unaudited)
 
 
Market   Stores  

Square
Feet

 

Avg Qtrly
Rent per
Occupied
Square Foot

Avg Quarterly Occupancy
for the Three Months Ended
June 30,

Revenue
for the Three Months
Ended June 30,

 

Expenses
for the Three Months
Ended June 30,

 

NOI
for the Three Months
Ended June 30,

 
  2015   2014 2015   2014   % Change 2015   2014   % Change 2015   2014   % Change
 
Houston-The Woodlands-Sugar Land, TX 40 3,069 $ 12.93 92.3% 94.0% $ 9,605 9,101 5.5% $ 3,277 $ 3,306 -0.9% $ 6,328 5,795 9.2%
New England-CT-RI-NH-MA-ME 31 1,914 15.91 91.4% 89.8% 7,306 6,989 4.5% 2,229 2,121 5.1% 5,077 4,868 4.3%
Dallas-Fort Worth-Arlington, TX 20 1,374 11.06 94.8% 92.8% 3,741 3,525 6.1% 1,286 1,290 -0.3% 2,455 2,235 9.8%
Atlanta-Sandy Springs-Roswell, GA 20 1,353 11.32 93.0% 92.7% 3,834 3,594 6.7% 1,063 1,119 -5.0% 2,771 2,475 12.0%
Buffalo-Upstate, NY 19 1,255 12.37 92.6% 93.0% 3,784 3,533 7.1% 1,203 1,155 4.2% 2,581 2,378 8.5%
New York-Newark-Jersey City, NY-NJ-PA 18 1,068 21.75 91.9% 89.5% 5,565 5,290 5.2% 1,750 1,750 0.0% 3,815 3,540 7.8%
Austin-Round Rock, TX 15 1,170 12.17 90.3% 90.6% 3,374 3,210 5.1% 1,134 1,042 8.8% 2,240 2,168 3.3%
New Orleans-Lafayette, LA 14 813 11.18 93.2% 92.1% 2,239 2,224 0.7% 654 623 5.0% 1,585 1,601 -1.0%
Miami-Fort Lauderdale-West Palm Beach, FL 13 858 15.88 91.1% 92.2% 3,271 3,093 5.8% 930 975 -4.6% 2,341 2,118 10.5%
San Antonio-New Braunfels, TX 12 713 11.70 92.5% 89.7% 2,044 1,846 10.7% 660 660 0.0% 1,384 1,186 16.7%
Tampa-St. Petersburg-Clearwater, FL 12 747 12.88 94.9% 90.7% 2,429 2,271 7.0% 707 676 4.6% 1,722 1,595 8.0%
Virginia Beach-Norfolk-Newport News, VA 11 846 10.48 88.9% 86.2% 2,069 2,047 1.1% 686 635 8.0% 1,383 1,412 -2.1%
Phoenix-Mesa-Scottsdale, AZ 10 668 10.21 88.8% 83.9% 1,621 1,518 6.8% 498 544 -8.5% 1,123 974 15.3%
Chicago-Naperville-Elgin, IL 9 686 13.79 90.3% 88.1% 2,244 2,098 7.0% 827 842 -1.8% 1,417 1,256 12.8%
Cleveland-Elyria, OH 9 630 11.02 90.0% 90.8% 1,644 1,543 6.5% 517 462 11.9% 1,127 1,081 4.3%
Raleigh-Durham, NC 8 544 11.34 95.4% 93.2% 1,549 1,474 5.1% 368 362 1.7% 1,181 1,112 6.2%
Pensacola-Ferry Pass-Brent, FL 8 605 8.47 84.4% 80.9% 1,171 1,157 1.2% 435 499 -12.8% 736 658 11.9%
Jacksonville, FL 8 548 9.82 95.4% 91.6% 1,376 1,245 10.5% 450 453 -0.7% 926 792 16.9%
St. Louis, MO 8 515 12.17 91.8% 91.1% 1,515 1,460 3.8% 472 482 -2.1% 1,043 978 6.6%
Montgomery, AL 7 490 8.79 90.3% 89.3% 1,038 996 4.2% 332 310 7.1% 706 686 2.9%
Space Coast, FL 7 500 11.23 93.7% 92.3% 1,391 1,278 8.8% 402 374 7.5% 989 904 9.4%
Beaumont-Port Arthur, TX 7 428 12.27 96.6% 92.4% 1,343 1,258 6.8% 462 389 18.8% 881 869 1.4%
Charlotte-Concord-Gastonia, NC 7 427 10.94 95.8% 94.0% 1,195 1,085 10.1% 330 351 -6.0% 865 734 17.8%
Jackson, MS 6 404 10.87 92.0% 92.4% 1,058 998 6.0% 298 293 1.7% 760 705 7.8%
Cape Coral-Fort Myers, FL 6 313 10.72 94.2% 83.3% 848 710 19.4% 280 267 4.9% 568 443 28.2%
Chattanooga, TN-GA 5 353 10.45 90.3% 91.0% 878 841 4.4% 307 305 0.7% 571 536 6.5%
Youngstown-Warren-Boardman, OH-PA 5 337 8.54 91.7% 91.5% 702 674 4.2% 240 213 12.7% 462 461 0.2%
Birmingham-Hoover, AL 5 313 8.16 88.0% 84.6% 606 556 9.0% 222 212 4.7% 384 344 11.6%
Columbia, SC 5 292 9.77 94.6% 90.1% 723 672 7.6% 276 268 3.0% 447 404 10.6%
Other markets 54 3,591 10.25 92.4% 91.0% 9,102 8,645 5.3% 2,882 2,763 4.3% 6,220 5,882 5.7%
                                                   
Portfolio Total   399   26,824   $ 12.15   92.1%   90.8% $ 79,265   $ 74,931   5.8% $ 25,177   $ 24,741   1.8% $ 54,088   $ 50,190   7.8%
 
 
Properties owned since 12/31/13 (detail shown above) 399 26,824 12.15 92.1% 90.8% 79,265 74,931 5.8% 25,177 24,741 1.8% 54,088 50,190 7.8%
Properties owned since 12/31/12 384 25,720 11.84 92.2% 91.0% 74,266 70,127 5.9% 23,554 23,129 1.8% 50,712 46,998 7.9%
Properties owned since 12/31/11 356 23,538 11.74 92.1% 91.2% 67,401 63,774 5.7% 21,369 20,860 2.4% 46,032 42,914 7.3%
 
 
Dollars in thousands except for average quarterly rent per occupied square foot. Square feet in thousands.
List includes markets where the Company has five or more stores.

Exhibit B

                           
Sovran Self Storage, Inc.
 

Same Store Performance Summary by State

Three Months Ended June 30, 2015
(unaudited)
 
 

State

 

Stores

Square
Feet

Avg Qtrly
Rent per
Occupied
Square Foot

Avg Quarterly Occupancy
for the Three Months Ended
June 30,

Revenue
for the Three Months
Ended June 30,

 

Expenses
for the Three Months
Ended June 30,

 

NOI
for the Three Months
Ended June 30,

 
        2015   2014 2015   2014   % Change 2015   2014   % Change 2015   2014   % Change
 
Alabama 22 1,617 $ 8.82 90.1% 89.1% $ 3,485 $ 3,276 6.4% $ 1,048 $ 1,002 4.6% $ 2,437 $ 2,274 7.2%
Arizona 10 668 10.21 88.8% 83.9% 1,621 1,518 6.8% 498 544 -8.5% 1,123 974 15.3%
Colorado 1 55 14.18 92.3% 92.3% 189 173 9.2% 62 70 -11.4% 127 103 23.3%
Connecticut 8 640 19.38 90.9% 84.7% 2,904 2,750 5.6% 789 767 2.9% 2,115 1,983 6.7%
Florida 61 4,033 11.75 92.4% 89.2% 11,655 10,813 7.8% 3,605 3,619 -0.4% 8,050 7,194 11.9%
Georgia 28 1,948 10.85 92.6% 91.6% 5,252 4,919 6.8% 1,534 1,582 -3.0% 3,718 3,337 11.4%
Illinois 9 686 13.79 90.3% 88.1% 2,244 2,098 7.0% 827 842 -1.8% 1,417 1,256 12.8%
Louisiana 14 813 11.18 93.2% 92.1% 2,239 2,224 0.7% 654 623 5.0% 1,585 1,601 -1.0%
Maine 2 114 13.88 93.0% 95.8% 385 377 2.1% 99 101 -2.0% 286 276 3.6%
Maryland 3 139 16.53 94.2% 91.1% 561 534 5.1% 195 172 13.4% 366 362 1.1%
Massachusetts 13 694 15.03 92.3% 92.4% 2,561 2,492 2.8% 867 801 8.2% 1,694 1,691 0.2%
Mississippi 12 916 9.88 91.3% 91.5% 2,188 2,091 4.6% 641 618 3.7% 1,547 1,473 5.0%
Missouri 8 515 12.17 91.8% 91.1% 1,515 1,460 3.8% 472 482 -2.1% 1,043 978 6.6%
New Hampshire 4 260 12.56 90.7% 92.1% 777 735 5.7% 233 224 4.0% 544 511 6.5%
New Jersey 4 253 17.83 88.0% 83.7% 1,087 1,003 8.4% 391 376 4.0% 696 627 11.0%
New York 33 2,070 16.53 92.8% 92.3% 8,262 7,820 5.7% 2,562 2,529 1.3% 5,700 5,291 7.7%
North Carolina 19 1,153 10.58 95.7% 93.8% 3,095 2,902 6.7% 846 860 -1.6% 2,249 2,042 10.1%
Ohio 16 1,113 10.19 91.7% 91.5% 2,752 2,602 5.8% 884 798 10.8% 1,868 1,804 3.5%
Pennsylvania 4 220 10.27 90.8% 94.8% 534 539 -0.9% 180 178 1.1% 354 361 -1.9%
Rhode Island 4 206 13.51 89.6% 90.5% 679 636 6.8% 241 230 4.8% 438 406 7.9%
South Carolina 8 447 10.84 95.4% 91.5% 1,235 1,160 6.5% 440 414 6.3% 795 746 6.6%
Tennessee 4 291 10.72 89.4% 92.8% 733 719 1.9% 263 262 0.4% 470 457 2.8%
Texas 94 6,754 12.24 92.7% 92.6% 20,107 18,937 6.2% 6,820 6,681 2.1% 13,287 12,256 8.4%
Virginia 18 1,219 11.17 89.3% 86.7% 3,205 3,153 1.6% 1,026 966 6.2% 2,179 2,187 -0.4%
                               

 

                 
Portfolio Total   399   26,824   $ 12.15   92.1%   90.8% $ 79,265   $ 74,931   5.8% $ 25,177   $ 24,741   1.8% $ 54,088   $ 50,190   7.8%
 
 

Dollars in thousands except for average quarterly rent per occupied square foot. Square feet in thousands.

Exhibit C
                   
Sovran Self Storage, Inc.
 
Debt Maturity Schedule
June 30, 2015
(unaudited)
 
Current
Maturity Basis of Interest
(dollars in thousands)   Date   Rate   Rate (1)   2015   2016   2017   2018   2019   Thereafter   Total
 
Line of credit Dec-2019 Variable 1.49% $ - $ - $ - $ - $ 96,000 $ - $ 96,000
 
Term note Apr-2016 Fixed 6.38% - 150,000 - - - - 150,000
Term note Jun-2020 Swapped to fixed 3.77% - - - - - 125,000 125,000
Term note Jun-2020 Swapped to fixed 3.01% - - - - - 100,000 100,000
Term note Jun-2020 Swapped to fixed 2.77% - - - - - 100,000 100,000
Term note Aug-2021 Fixed 5.54% - - - - - 100,000 100,000
Term note Apr-2024 Fixed 4.53% - - - - - 175,000 175,000
Mortgage note May-2026 Fixed 5.99% 68 142 151 160 170 1,370 2,061
                         
$ 68 $ 150,142 $ 151 $ 160 $ 96,170 $ 601,370 $ 848,061
(1) Rate as of June 30, 2015 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 2015.

Exhibit D

                           
Sovran Self Storage, Inc.
 
Certificate of Occupancy Performance Summary
June 30, 2015
(unaudited)
(dollars in thousands)
 
 
Market Acquired

 

# of
Stores

Cost

 

Net Rentable
Square Feet

Occupancy at June 30,

Revenue
for the Three Months
Ended June 30,

Expenses
for the Three Months
Ended June 30,

NOI
for the Three Months
Ended June 30,

        2015   2014 2015   2014 2015   2014 2015   2014
 
Chicago, IL May-2014 1 $ 5,500 52,740 86.4% 13.9% $ 141 $ 11 $ 62 $ 28 $ 79 $ (17)
Chattanooga, TN Sep-2014 1 6,550 57,260 85.5% 0.0% 123 - 56 - 67 -
Chicago, IL Nov-2014 1 5,750 81,070 54.1% 0.0% 68 - 82 - (14) -
Chicago, IL Mar-2015 1 8,690 60,649 17.8% 0.0% 19 - 57 - (38) -
Phoenix, AZ Jun-2015 1 7,904 64,460 36.4% 0.0% 26 - 50 - (24) -
Boston, MA Jun-2015 1 10,291 65,391 0.0% 0.0% - - 6 - (6) -
                           
6   $ 44,685   381,570 $ 377   $ 11 $ 313   $ 28 $ 64   $ (17)

Sovran Self Storage, Inc.
Diane Piegza, Vice President
Investor Relations & Community Affairs
716-650-6115

Source: Sovran Self Storage, Inc.