WAYNE, PA--(Marketwire - February 24, 2011) - U-Store-It Trust (
NYSE:
YSI) announced its
operating results for the three months and year ended December 31, 2010.
U-Store-It Chief Executive Officer Dean Jernigan said, "We are pleased with
our overall performance in 2010 as challenging economic conditions allowed
us to demonstrate the strength of our operating platform and the resiliency
of the storage sector. We ended 2010 with two consecutive quarters of
same-store portfolio growth over prior year levels in key operating metrics
including revenue, occupancy and net operating income."
"The year was also highlighted by strong execution in our acquisition and
disposition efforts. We invested $87.1 million through the acquisition of
12 class A facilities in our core growth markets and raised $38.1 million
through the disposition of 16 properties in lower barrier to entry
markets," continued Mr. Jernigan. "We expect to continue this momentum
into 2011 as our strategic objectives are to grow our cash flow by
increasing same-store net operating income, continue to improve the quality
of our portfolio through acquisitions in targeted growth markets and
selective dispositions, and to position our balance sheet for an investment
grade credit rating."
Key Metrics for the Quarter and Year Ended December 31, 2010
- Funds from Operations ("FFO")
- 4th quarter - FFO of $0.15 per share for the 4th quarter of 2010,
representing 15% growth compared to $0.13 per share reported for the 4th
quarter of 2009.
- Full year - FFO of $0.51 per share for 2010 compared to $0.73 per share
for 2009.
- Weighted Average Shares and Units Outstanding
- 4th quarter - Weighted average shares and units outstanding were 102.5
million and 98.5 million for the 4th quarter of 2010 and 2009,
respectively.
- Full year - Weighted average shares and units outstanding were 100.0
million for 2010 compared to 76.6 million for 2009.
- Same-store Revenue (348 same-store facilities)
- 4th quarter - Same-store total revenue increased 3.2% in the 4th quarter
of 2010 compared to the 4th quarter of 2009.
- Full year - Same-store total revenue increased 0.3% from 2009 to
2010.
- Same-store Property Operating Expenses
- 4th quarter - Same-store property operating expenses increased 1.8%
compared to the fourth quarter of 2009.
- 4th quarter - Same-store property operating expenses excluding property
tax expense decreased 3.3% when compared to the fourth quarter of
2009.
- Full year - Same-store property operating expenses decreased 0.8% from
2009 to 2010.
- Same-store Net Operating Income ("NOI")
- 4th quarter - Same-store NOI increased 4.1% from the fourth quarter of
2009.
- Full year - Same-store NOI increased 1.0% from 2009.
- Realized Annual Rent
- 4th quarter - Same-store realized annual rent per occupied square foot
increased to $11.14 or 1.0% compared to the fourth quarter of 2009.
- Full year - Same-store realized annual rent per occupied square foot
decreased to $11.05 or 1.0% compared to 2009.
- Same-store Physical Occupancy
- At December 31, 2010, ending physical occupancy increased 120 basis
points to 76.7% compared to 75.5% at December 31, 2009.
- 4th quarter - Average physical occupancy was 76.9% for the 4th quarter
of 2010 on the same-store facilities, an increase of 110 basis points
compared to 75.8% for the fourth quarter of 2009.
- Full year - Average physical occupancy was 76.8% for 2010 on the
same-store facilities compared to 76.2% for 2009.
- Investment Activity
- Acquisitions - The Company acquired nine storage facilities during the
4th quarter for an aggregate investment of $53.9 million. For the year, the
Company acquired 12 storage facilities for an aggregate investment of $87.1
million.
- Dispositions - The Company sold 16 assets during the 4th quarter for
$38.1 million. These sales represented all of the Company's disposition
activity for the year.
- Third Party Management
- At December 31, 2010, the Company managed 93 properties totaling 6.0
million square feet. The Company had 8 properties under management as of
December 31, 2009.
- 4th quarter - $1.1 million of management fee revenue was generated
during the quarter.
- Full year - $2.8 million of management fee revenue was generated during
2010.
Chris Marr, President and Chief Investment Officer said, "We delivered
significant portfolio growth in 2010 as we increased our properties under
management by 24% through our acquisition of 12 assets and our addition of
a third-party management platform. Executing on these initiatives, along
with our disposition program, continues to improve the quality of our
investment portfolio. Many sophisticated sellers have identified us as
their preferred buyer and we expect our reputation will enhance our ability
to continue our external growth momentum into 2011 and beyond."
"We clearly expect continued consolidation of self storage assets under
management to the larger operators that have access to capital and possess
the marketing resources necessary to capture a disproportionate share of
customer demand," continued Mr. Marr. "We expect both our owned property
portfolio and our third party management platform to benefit from this
consolidation."
Funds from Operations
FFO for the fourth quarter of 2010 was $15.6 million, compared to $12.7
million for the fourth quarter of 2009. FFO per share was $0.15 per share
for the fourth quarter of 2010, compared to $0.13 per share for the same
quarter of last year. Weighted average common shares and operating
partnership units outstanding were 102.5 million for the fourth quarter of
2010, compared to 98.5 million for the fourth quarter of 2009.
FFO for the year ended December 31, 2010 was $51.1 million or $0.51 per
share, compared to $55.9 million or $0.73 per share for the year ended
December 31, 2009. Weighted average common shares and operating
partnership units outstanding were 100.0 million for 2010 compared to 76.6
million for 2009.
Operating Results
The Company reported net income attributable to the Company of $2.1 million
or $0.02 per common share in the fourth quarter of 2010, compared to a net
loss attributable to the Company of $2.8 million or $0.03 per common share
in the fourth quarter of 2009. Total revenues increased $4.8 million and
total property operating expenses increased $2.0 million in the fourth
quarter of 2010, compared to the same period in 2009. Increases in total
revenues are attributable to increased occupancy levels in the same-store
portfolio and increased revenues generated from our third-party management
business during the 2010 period. Increases in total property operating
expenses are attributable to the impact of newly acquired properties and
increases in expenses related to real estate taxes and property insurance,
offset by decreases in expenses related to personnel, utilities and repairs
and maintenance of our properties.
For the year ended December 31, 2010, the Company reported net loss
attributable to the Company of $7.4 million or $0.08 per share, compared to
a net loss attributable to the Company of $0.9 million or $0.01 per share
for the year ended December 31, 2009. Total revenues increased $6.1
million and total property operating expenses increased $2.3 million during
2010, compared to 2009. Increases in total revenues are attributable to
additional income from the 2010 acquisitions and increased revenues
generated from our third-party management business during 2010. Increases
in total property operating expenses are attributable to the impact of
newly acquired properties, additional costs incurred to support the growth
of the third party management business and increases in expenses related to
property insurance and advertising, offset by decreases in expenses related
to personnel, utilities and repairs and maintenance of our properties.
Interest expense decreased approximately $2.0 million in the fourth quarter
of 2010, compared to the fourth quarter of 2009, primarily resulting from
lower debt levels in the 2010 period from the repayment of $196.2 million
of loans during 2010, as well as lower interest rates on the credit
facility during the fourth quarter of 2010 as compared to the same period
in 2009. Interest expense decreased from $45.3 million in 2009 to $37.8
million in 2010 due to reduced interest expense related to mortgage loan
repayments, reduced average outstanding credit facility borrowings and
lower interest rates during 2010 as compared to 2009.
Loan procurement amortization expense increased approximately $0.9 million
in the fourth quarter of 2010, compared to the fourth quarter of 2009, due
to loan procurement cost amortization associated with the $450 million
secured credit facility that closed in December of 2009 and the subsequent
amendment of the facility to unsecured in September 2010. Loan procurement
amortization expense increased from $2.3 million in 2009 to $6.5 million in
2010, primarily resulting from the amortization of additional costs
incurred in relation to the amendment of the credit facility in 2010, a
full year of amortization of costs related to the credit facility and the
17 secured financings entered into in 2009.
The Company's 363 owned facilities, containing 23.6 million rentable square
feet, had a physical occupancy at December 31, 2010 of 76.3% and an average
physical occupancy for the quarter and year ended December 31, 2010 of
76.5%.
Same-Store Results
The Company's same-store pool at December 31, 2010 represented 348
facilities containing approximately 22.7 million rentable square feet and
included approximately 95.0% of the aggregate rentable square feet of the
Company's 363 owned facilities. These same-store facilities represent
approximately 96.7% of property net operating income for the quarter ended
December 31, 2010.
The same-store average physical occupancy for the fourth quarter of 2010
was 76.9% compared to 75.8% for the same quarter of last year. Same-store
net rental income for the fourth quarter of 2010 increased 2.5% over the
same period in 2009. Same-store total revenues increased 3.2% and
same-store operating expenses increased 1.8% as compared to the fourth
quarter of 2009. Same-store net operating income increased 4.1% in the
fourth quarter of 2010 compared to the same quarter of 2009.
For the year ended December 31, 2010, same-store total revenues, and net
operating income increased 0.3%, and 1.0%, respectively, and operating
expenses decreased 0.8% as compared to the results for the year ended
December 31, 2009. Average physical occupancy of the same-store pool for
2010 was 76.8% as compared to 76.2% during 2009. Ending occupancy for our
same-store portfolio was 76.7% and 75.5% as of December 31, 2010 and 2009,
respectively.
2010 Investment Activity
During the fourth quarter of 2010, the Company acquired nine self-storage
facilities for a total investment of approximately $53.9 million. The
facilities contain approximately 542,000 net rentable square feet and are
located in the Company's targeted markets of Boston, Massachusetts;
Brooklyn and Queens, New York; Orlando, Florida; the Washington, D.C.
suburbs of Manassas and Herndon, Virginia; and the Philadelphia,
Pennsylvania suburbs of Cherry Hill, New Jersey and two facilities in Egg
Harbor, New Jersey.
The Company acquired three self-storage facilities during the third quarter
of 2010 located in Brooklyn and Bronx, New York and the Dallas suburb of
Frisco, Texas, containing an aggregate 199,000 net rentable square feet for
an investment of approximately $33.2 million.
During the fourth quarter of 2010, the Company disposed of 16 unencumbered
assets containing approximately 848,000 square feet for proceeds of
approximately $38 million. Fourteen of the disposition assets were located
in California's Inland Empire in the communities of Bloomington, Hemet,
Highland, Redlands, Riverside, San Bernardino, and Yucaipa. Two of the
assets were located in Fayetteville, North Carolina. These transactions
represented all of the Company's 2010 disposition activity.
The Company funded the $87.1 million of 2010 acquisitions through a
combination of approximately $48.4 million raised in 2010 through the use
of our At-The-Market equity program, approximately $38.0 million of
disposition proceeds, and $0.7 million of available free cash-flow.
Subsequent to year end, the Company acquired one facility located in
Northern Virginia in January 2011 for a total investment of approximately
$14.1 million.
Balance Sheet
On September 29, 2010, the Company announced the closing of an amendment to
its $450 million credit facility. The amended credit facility consists of a
$200 million unsecured term loan and a $250 million unsecured revolving
credit facility. The amended credit facility has a three year term expiring
on December 7, 2013. At year end, the $200 million term loan was
outstanding and there was $43.0 million outstanding on the revolving credit
facility.
The significant changes to the Company's previous $450 million secured
credit facility are as follows:
- The amended facility is an unsecured facility compared to the prior
secured facility.
- The amended facility pricing is based on 30 day Libor compared to a
1.50% Libor floor in the prior facility.
- The amended facility matures in December, 2013 compared to December,
2012 in the prior facility.
During the year ended December 31, 2010, the Company repaid an $83.3
million CMBS loan that was scheduled to mature in May 2010, an $83.5
million loan that was scheduled to mature in January 2011, and $23.5
million of additional loans that had maturity dates in 2010.
Additionally, during the year, the Company was repaid $20.1 million in
notes receivable related to seller financings the Company provided as part
of property dispositions in 2009.
Quarterly Dividend
On December 14, 2010, the Company declared a dividend of $0.07 per share.
The dividend was paid on January 21, 2011, to shareholders of record on
January 7, 2011.
2011 Financial Outlook
"Our 2011 guidance was constructed with the expectation of continued high
levels of unemployment and a gradual recovery in consumer confidence. Our
expected EBITDA growth, along with financing our external growth on a
leverage neutral basis are important components of our business plan as we
remain focused on our goal of achieving an investment grade credit rating,"
said Tim Martin, U-Store-It Chief Financial Officer. "We expect to
continue to capitalize on both internal and external growth opportunities
in 2011. At the midpoint of our Funds from Operations guidance, we expect
to deliver a very strong 16% growth over our reported 2010 results."
The Company estimates that its fully-diluted FFO per share for 2011 will be
between $0.56 and $0.62, and that its fully-diluted net income per share
for the period will be between $(0.05) and $0.01. The Company's estimate is
based on the following key assumptions:
- For 2011, the same-store pool consists of 363 assets totaling 23.5
million square feet
- Same-store revenue growth of 2.5% to 3.5% over 2010
- Same-store expense growth of 2.0% to 3.0% over 2010
- Same-store net operating income growth of 2.5% to 3.5% over 2010
- Average LIBOR of 0.5% during 2011
- General and administrative expenses of approximately $25.5 million to
$26.5 million
2011 Full Year Guidance Range or Value
--------------------
Earnings (loss) per diluted share allocated to common
shareholders $ (0.05) to $ 0.01
Plus: real estate depreciation and amortization 0.61 0.61
------- -------
FFO per diluted share $ 0.56 to $ 0.62
======= =======
The Company estimates that its fully-diluted FFO per share for the quarter
ending March 31, 2011 will be between $0.13 and $0.14, and that its
fully-diluted net loss per share for the period will be between $(0.02) and
$(0.01).
1st Quarter 2011 Guidance Range or Value
--------------------
Earnings (loss) per diluted share allocated to common
shareholders $ (0.02) to $ (0.01)
Plus: real estate depreciation and amortization 0.15 0.15
------- -------
FFO per diluted share $ 0.13 to $ 0.14
======= =======
Conference Call
Management will host a conference call at 11:00 a.m. ET on Friday, February
25, 2011, to discuss financial results for the three months and year ended
December 31, 2010.
A live webcast of the conference call will be available online from the
investor relations page of the Company's corporate website at
www.u-store-it.com. The dial-in numbers are 1-877-317-6789 for domestic
callers and +1-412-317-6789 for international callers. After the live
webcast, the call will remain available on U-Store-It's website for thirty
days. In addition, a telephonic replay of the call will be available until
March 28, 2011. The replay dial-in number is 877-344-7529 for domestic
callers and +1-412-317-0088 for international callers. The reservation
number for both is 447639.
Supplemental operating and financial data as of December 31, 2010 is
available on our corporate website under Investor Relations - Financial
Information - Financial Reports.
About U-Store-It Trust
U-Store-It Trust is a self-administered and self-managed real estate
investment trust. The Company's self-storage facilities are designed to
offer affordable, easily accessible and secure storage space for
residential and commercial customers. According to the Self-Storage
Almanac, U-Store-It Trust is one of the top four owners and operators of
self-storage facilities in the United States.
Non-GAAP Performance Measurements
FFO is a widely used performance measure for real estate companies and is
provided here as a supplemental measure of operating performance. The
Company calculates FFO in accordance with the best practices described in
the April 2002 National Policy Bulletin of the National Association of Real
Estate Investment Trusts (the "White Paper"). The White Paper defines FFO
as net income (computed in accordance with GAAP), excluding gains (or
losses) from sales of property, plus depreciation and amortization, and
after adjustments for unconsolidated partnerships and joint ventures.
Management uses FFO as a key performance indicator in evaluating the
operations of the Company's facilities. Given the nature of its business as
a real estate owner and operator, the Company considers FFO a key measure
of its operating performance that is not specifically defined by accounting
principles generally accepted in the United States. The Company believes
that FFO is useful to management and investors as a starting point in
measuring its operational performance because it excludes various items
included in net income that do not relate to or are not indicative of its
operating performance such as gains (or losses) from sales of property and
depreciation, which can make periodic and peer analyses of operating
performance more difficult. FFO should not be considered as an alternative
to net income (determined in accordance with GAAP) as an indicator of the
Company's financial performance, is not an alternative to cash flow from
operating activities (determined in accordance with GAAP) as a measure of
the Company's liquidity, and is not indicative of funds available to fund
the Company's cash needs, including its ability to make distributions.
We define net operating income, which we refer to as "NOI," as total
continuing revenues less continuing property operating expenses. NOI also
can be calculated by adding back to net income (loss): interest expense on
loans, loan procurement amortization expense, acquisition related costs,
amounts attributable to noncontrolling interests, other expense,
depreciation and amortization expense, general and administrative expense,
and deducting from net income: income from discontinued operations, gains
on disposition of discontinued operations, other income, and interest
income. NOI is not a measure of performance calculated in accordance with
GAAP.
Management uses NOI as a measure of operating performance at each of our
facilities, and for all of our facilities in the aggregate. NOI should not
be considered as a substitute for operating income, net income, cash flows
provided by operating, investing and financing activities, or other income
statement or cash flow statement data prepared in accordance with GAAP.
Forward-Looking Statements
This presentation, together with other statements and information publicly
disseminated by U-Store-It Trust ("we," "us," "our" or the "Company"),
contains certain forward-looking statements within the meaning of Section
27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934, as amended (the "Exchange Act"). Such statements are
based on assumptions and expectations that may not be realized and are
inherently subject to risks, uncertainties and other factors, many of which
cannot be predicted with accuracy and some of which might not even be
anticipated. Although we believe the expectations reflected in these
forward-looking statements are based on reasonable assumptions, future
events and actual results, performance, transactions or achievements,
financial and otherwise, may differ materially from the results,
performance, transactions or achievements expressed or implied by the
forward-looking statements. Risks, uncertainties and other factors that
might cause such differences, some of which could be material, include, but
are not limited to:
- national and local economic, business, real estate and other market
conditions;
- the competitive environment in which we operate, including our ability
to raise rental rates;
- the execution of our business plan;
- the availability of external sources of capital;
- financing risks, including the risk of over-leverage and the
corresponding risk of default on our mortgage and other debt and potential
inability to refinance existing indebtedness;
- increases in interest rates and operating costs;
- counterparty non-performance related to the use of derivative financial
instruments;
- our ability to maintain our status as a real estate investment trust
("REIT") for federal income tax purposes;
- acquisition and development risks;
- increases in taxes, fees, and assessments from state and local
jurisdictions;
- changes in real estate and zoning laws or regulations;
- risks related to natural disasters;
- potential environmental and other liabilities;
- other factors affecting the real estate industry generally or the
self-storage industry in particular; and
- other risks identified in our Annual Report on Form 10-K and, from time
to time, in other reports we file with the Securities and Exchange
Commission (the "SEC") or in other documents that we publicly
disseminate.
We undertake no obligation to publicly update or revise these
forward-looking statements, whether as a result of new information, future
events or otherwise except as may be required in securities laws.
U-STORE-IT TRUST AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
December 31, December 31,
2010 2009
------------ ------------
ASSETS
Storage facilities $ 1,743,021 $ 1,774,542
Less: Accumulated depreciation (314,530) (344,009)
------------ ------------
Storage facilities, net 1,428,491 1,430,533
Cash and cash equivalents 5,891 102,768
Restricted cash 10,250 16,381
Loan procurement costs, net of amortization 15,611 18,366
Notes receivable - 20,112
Other assets, net 18,576 10,710
------------ ------------
Total assets $ 1,478,819 $ 1,598,870
============ ============
LIABILITIES AND EQUITY
Revolving credit facility $ 43,000 $ -
Unsecured term loan 200,000 -
Secured term loan - 200,000
Mortgage loans and notes payable 372,457 569,026
Accounts payable, accrued expenses and other
liabilities 36,172 33,767
Distributions payable 7,275 2,448
Deferred revenue 8,873 8,449
Security deposits 489 456
------------ ------------
Total liabilities 668,266 814,146
------------ ------------
Noncontrolling interests in the Operating
Partnership 45,145 45,394
------------ ------------
Commitments and contingencies
Equity
Common shares $.01 par value, 200,000,000
shares authorized, 98,596,796 and 92,654,979
shares issued and outstanding
at December 31, 2010 and December 31, 2009,
respectively 986 927
Additional paid in capital 1,026,952 974,926
Accumulated other comprehensive loss (1,121) (874)
Accumulated deficit (302,601) (279,670)
------------ ------------
Total U-Store-It Trust shareholders' equity 724,216 695,309
------------ ------------
Noncontrolling interest in subsidiaries 41,192 44,021
------------ ------------
Total equity 765,408 739,330
------------ ------------
Total liabilities and equity $ 1,478,819 $ 1,598,870
============ ============
U-STORE-IT TRUST AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share data)
Three Months Ended Year Ended
December 31, December 31,
-------------------- --------------------
2010 2009 2010 2009
--------- --------- --------- ---------
REVENUES
Rental income $ 50,330 $ 47,723 $ 195,357 $ 194,590
Other property related income 5,135 3,996 18,640 16,086
Property management fee
income 1,147 44 2,829 56
--------- --------- --------- ---------
Total revenues 56,612 51,763 216,826 210,732
--------- --------- --------- ---------
OPERATING EXPENSES
Property operating expenses 23,647 21,694 93,696 91,380
Depreciation and amortization 15,925 16,959 62,945 69,125
General and administrative 6,098 5,909 25,406 22,569
--------- --------- --------- ---------
Total operating expenses 45,670 44,562 182,047 183,074
--------- --------- --------- ---------
OPERATING INCOME 10,942 7,201 34,779 27,658
--------- --------- --------- ---------
OTHER INCOME (EXPENSE)
Interest:
Interest expense on loans (8,470) (10,435) (37,794) (45,269)
Loan procurement
Amortization expense (1,745) (822) (6,463) (2,339)
Interest income 5 433 621 681
Acquisition related costs (294) - (759) -
Other (94) (20) (235) (33)
--------- --------- --------- ---------
Total other expense (10,598) (10,844) (44,630) (46,960)
--------- --------- --------- ---------
INCOME (LOSS) FROM CONTINUING
OPERATIONS 344 (3,643) (9,851) (19,302)
DISCONTINUED OPERATIONS
Income from discontinued
operations 507 571 2,006 4,831
Net gain on disposition of
discontinued operations 1,826 609 1,826 14,139
--------- --------- --------- ---------
Total discontinued
operations 2,333 1,180 3,832 18,970
--------- --------- --------- ---------
NET INCOME (LOSS) 2,677 (2,463) (6,019) (332)
NET (INCOME) LOSS ATTRIBUTABLE
TO NONCONTROLLING INTERESTS
Noncontrolling interests in
the Operating Partnership (106) 153 381 60
Noncontrolling interest in
subsidiaries (488) (492) (1,755) (665)
--------- --------- --------- ---------
NET INCOME (LOSS) ATTRIBUTABLE
TO THE COMPANY $ 2,083 $ (2,802) $ (7,393) $ (937)
========= ========= ========= =========
Basic loss per share from
continuing operations
attributable to common
shareholders $ - $ (0.04) $ (0.12) $ (0.27)
Basic earnings per share from
discontinued operations
attributable to
common shareholders 0.02 0.01 0.04 0.26
--------- --------- --------- ---------
Basic earnings (loss) per share
attributable to common
shareholders $ 0.02 $ (0.03) $ (0.08) $ (0.01)
========= ========= ========= =========
Diluted loss per share from
continuing operations
attributable to common
shareholders $ - $ (0.04) $ (0.12) $ (0.27)
Diluted earnings per share from
discontinued operations
attributable to
common shareholders 0.02 0.01 0.04 0.26
--------- --------- --------- ---------
Diluted earnings (loss) per
share attributable to common
shareholders $ 0.02 $ (0.03) $ (0.08) $ (0.01)
========= ========= ========= =========
Weighted-average basic shares
outstanding 96,501 92,422 93,998 70,988
Weighted-average diluted shares
outstanding 97,798 92,422 93,998 70,988
AMOUNTS ATTRIBUTABLE TO THE
COMPANY'S COMMON SHAREHOLDERS:
Loss from continuing operations $ (143) $ (3,921) $ (11,049) $ (18,921)
Total discontinued operations 2,226 1,119 3,656 17,984
--------- --------- --------- ---------
Net income (loss) $ 2,083 $ (2,802) $ (7,393) $ (937)
========= ========= ========= =========
Same-store facility results (348 facilities)
(in thousands, except percentage and per square foot data)
Three months ended
------------------------
December 31, December 31, Percent
2010 2009 Change
----------- ----------- --------
REVENUES
Net rental income $ 48,685 $ 47,485 2.5%
Other property related income 4,300 3,846 11.8%
----------- ----------- --------
Total revenues 52,985 51,331 3.2%
----------- ----------- --------
OPERATING EXPENSES
Property taxes 6,401 5,583 14.7%
Personnel expense 5,725 5,899 -2.9%
Advertising 1,095 1,127 -2.8%
Repair and maintenance 768 890 -13.7%
Utilities 1,971 2,115 -6.8%
Property insurance 710 683 4.0%
Other expenses 3,036 3,052 -0.5%
----------- ----------- --------
Total operating expenses 19,706 19,349 1.8%
----------- ----------- --------
Net operating income (1) $ 33,279 $ 31,982 4.1%
=========== =========== ========
Gross margin 62.8% 62.3%
Period Average Occupancy (2) 76.9% 75.8%
Period End Occupancy (3) 76.7% 75.5%
Total rentable square feet 22,718 22,718
Realized annual rent per occupied
square foot (4) $ 11.14 $ 11.03 1.0%
Scheduled annual rent per square
foot (5) $ 11.99 $ 11.46 4.6%
Reconciliation of Same-Store Net Operating Income to Operating Income
Same-store net operating income (1) $ 33,279 $ 31,982
Non same-store net operating income (1) 1,584 165
Indirect property overhead (6) (1,898) (2,078)
Depreciation and amortization (15,925) (16,959)
General and administrative expense (6,098) (5,909)
----------- -----------
Operating Income $ 10,942 $ 7,201
=========== ===========
(1) Net operating income (NOI) is a non-GAAP (generally accepted
accounting principles) financial measure that excludes the impact of
depreciation and general & administrative expense.
(2) Square feet occupancy represents the weighted average occupancy for
the period.
(3) Represents occupancy at December 31 of the respective year.
(4) Realized annual rent per occupied square foot is computed by dividing
rental income by the weighted average occupied square feet
for the period.
(5) Scheduled annual rent per square foot represents annualized
contractual rents per available square foot for the period.
(6) Includes property management fee income earned in conjunction with
managed properties.
Same-store facility results (348 facilities)
(in thousands, except percentage and per square foot data)
Year ended
------------------------
December 31, December 31, Percent
2010 2009 Change
----------- ----------- ---------
REVENUES
Net rental income $ 192,739 $ 193,383 -0.3%
Other property related income 16,854 15,654 7.7%
----------- ----------- ---------
Total revenues 209,593 209,037 0.3%
----------- ----------- ---------
OPERATING EXPENSES
Property taxes 26,533 26,802 -1.0%
Personnel expense 22,957 23,313 -1.5%
Advertising 6,089 5,758 5.7%
Repair and maintenance 2,770 2,990 -7.4%
Utilities 8,855 9,343 -5.2%
Property insurance 2,899 2,565 13.0%
Other expenses 12,076 12,064 0.1%
----------- ----------- ---------
Total operating expenses 82,179 82,835 -0.8%
----------- ----------- ---------
Net operating income (1) $ 127,414 $ 126,202 1.0%
=========== =========== =========
Gross margin 60.8% 60.4%
Period Average Occupancy (2) 76.8% 76.2%
Period End Occupancy (3) 76.7% 75.5%
Total rentable square feet 22,718 22,718
Realized annual rent per occupied
square foot (4) $ 11.05 $ 11.17 -1.0%
Scheduled annual rent per
square foot (5) $ 11.81 $ 11.80 0.1%
Reconciliation of Same-Store Net Operating Income to Operating Income
Same-store net operating income (1) $ 127,414 $ 126,202
Non same-store net operating income (1) 1,550 667
Indirect property overhead (6) (5,834) (7,517)
Depreciation and amortization (62,945) (69,125)
General and administrative expense (25,406) (22,569)
----------- -----------
Operating Income $ 34,779 $ 27,658
=========== ===========
(1) Net operating income (NOI) is a non-GAAP (generally accepted
accounting principles) financial measure that excludes the impact of
depreciation and general & administrative expense.
(2) Square feet occupancy represents the weighted average occupancy for
the period.
(3) Represents occupancy at December 31 of the respective year.
(4) Realized annual rent per occupied square foot is computed by dividing
rental income by the weighted average occupied square feet for
the period.
(5) Scheduled annual rent per square foot represents annualized
contractual rents per available square foot for the period.
(6) Includes property management fee income earned in conjunction with
managed properties.
Non-GAAP Measure - Computation of Funds From Operations
(in thousands, except per share data)
Three months ended Year ended
------------------------ ------------------------
December 31, December 31, December 31, December 31,
2010 2009 2010 2009
----------- ----------- ----------- -----------
Net income (loss) $ 2,677 $ (2,463) $ (6,019) $ (332)
Add (deduct):
Real estate
depreciation and
amortization 15,768 16,881 62,927 72,022
Gains on sale of real
estate (1,826) (609) (1,826) (14,139)
Noncontrolling
interests in
subsidiaries share
of FFO (1,022) (1,066) (3,980) (1,643)
----------- ----------- ----------- -----------
FFO $ 15,598 $ 12,743 $ 51,102 $ 55,908
=========== =========== =========== ===========
Earnings (loss) per
share attributable to
common shareholders
- basic $ 0.02 $ (0.03) $ (0.08) $ (0.01)
Earnings (loss) per
share attributable to
common shareholders
- fully diluted $ 0.02 $ (0.03) $ (0.08) $ (0.01)
FFO per share and unit
- fully diluted $ 0.15 $ 0.13 $ 0.51 $ 0.73
Weighted-average basic
shares outstanding 96,501 92,422 93,998 70,988
Weighted-average
diluted shares
outstanding 97,798 92,422 93,998 70,988
Weighted-average
diluted shares and
units outstanding 102,535 98,452 99,955 76,609
Dividend per common
share and unit $ 0.07 $ 0.025 $ 0.145 $ 0.10
Payout ratio of FFO
(Dividend per share
divided by FFO
per share) 47% 19% 28% 14%