Life Storage, Inc. Reports Third Quarter 2018 Results; Increases FFO Guidance
www.bloomberg.com/press-releases/...ts-increases-ffo-guidance
David Rogers, Chief Executive Officer stated, “We had a busy third quarter,
and a good one. The stores are performing well, our asset recycling program is
progressing as expected, and our Rent Now and Warehouse Anywhere programs have
been launched with great success. Tomorrow, our third-party management
division, Life Storage Solutions, takes over operation of 42 stabilized stores
for an important new client, and we have a solid book of potential new clients
in the pipeline. We expect a strong finish to 2018 and are excited about the
prospects for the coming year.”
Highlights for the Third Quarter Included:
* Increased same store revenue by 3.6% and same store net operating income
(“NOI”)^(2) by 4.2% as compared to the third quarter of 2017.
* Added five stores to its third-party management platform and entered into
agreements to add 42 stabilized properties effective November 1, 2018;
upon conversion of those stabilized properties, the Company will manage
203 properties through its joint venture and third-party management
agreements.
* Acquired two high-quality properties for its owned portfolio located in
the greater Boston, MA metro area and Sacramento, CA.
* Opened three high-quality joint venture development properties in Phoenix,
AZ, Brooklyn, NY, and Miami, FL.
* Sold one property in Austin, TX for a gain of $0.9 million (the property
remains under Life Storage management); recorded another gain of $0.7
million on land sale.
* Announced the expansion of its Warehouse Anywhere “Last Mile” delivery
solution for corporate customers.
* Replaced its current credit facility on more favorable terms and extended
the maturity date to March 2023 from December 2019.
* Paid a quarterly dividend of $1.00 per share of common stock.
OPERATIONS:
Total revenues increased 4.4% over last year’s third quarter while operating
costs decreased 3.0%, resulting in an NOI increase of 8.3%.
Revenues for the 533 stabilized stores wholly owned by the Company since
December 31, 2016 increased 3.6% from those in the third quarter of 2017, the
result of a 3.9% increase in rental rates, partially offset by a 70-basis
point decrease in average occupancy.