[May 02, 2018] |
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Life Storage, Inc. Reports First Quarter 2018 Results; Raises Same Store Outlook for 2018
Life Storage, Inc. (NYSE:LSI) a leading national owner and operator of
self storage facilities, reported operating results for the quarter
ended March 31, 2018.
The Company achieved net income attributable to common shareholders in
the first quarter of 2018 of $33.9 million or $0.73 per fully diluted
common share. This compares to net income attributable to common
shareholders of $20.4 million in the first quarter of 2017, or $0.44 per
fully diluted common share.
Funds from operations ("FFO")(1) for the quarter were $1.27
per fully diluted common share compared to $1.26 for the same period
last year. Absent $1.1 million of costs related to changes to the
Company's Board of Directors and other proxy matters in the first
quarter of 2018, adjusted FFO per fully diluted common share was $1.30
and $1.26 for the quarters ended March 31, 2018 and 2017, respectively.
"We're pleased with the first quarter in that we achieved better than
expected results in most of our markets, and, with record high
occupancies and solid demand, are well positioned as we enter the
upcoming busy season," commented CEO David Rogers. "We're also
encouraged with the continued ramp up of Life Storage Solutions, our
third-party management division, as we grow our client base and expand
our brand."
Highlights for the 1st
Quarter Included:
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Increased same store revenue by 2.5% and same store net operating
income ("NOI")(2) by 2.5% as compared to the
first quarter of 2017.
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Grew same store average occupancy for the quarter by 150 basis points
to 91.1% compared to the same period in 2017. The Company ended the
quarter at 91.2% occupied, an all-time high for the first quarter, and
110 basis points higher than the same period in 2017.
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Reduced internet marketing expense 18% by leveraging improved search
engine visibility.
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Added 105 mature stores owned since December 31, 2016 to its same
store pool, including all stabilized facilities acquired during the
2016 LifeStorage acquisition.
-
Added 10 stores to its third-party management platform; the Company
now manages a total of 145 properties through its joint venture and
third-party management agreements.
-
Achieved adjusted funds from operations per fully diluted common share
of $1.30, a 3.2% increase over the same period last year.
-
Increased management fee income by 31.7% over that of the first
quarter of 2017.
-
Paid a quarterly dividend of $1.00 per share of common stock.
OPERATIONS:
Total revenues increased 3.7% over first quarter 2017 while operating
costs increased 3.7%, resulting in an NOI increase of 3.7%.
Revenues for the 535 stabilized stores wholly owned by the Company since
December 31, 2016 increased 2.5% from those of the first quarter of
2017, the result of a 150 basis point increase in average occupancy and
a 6% increase in revenues related to tenant insurance.
Same store operating expenses increased 2.6% for the first quarter of
2018 compared to the prior year period. Increased real estate taxes,
payroll and benefits, and utilities were partially offset by an 18%
decrease in internet marketing costs. Consequently, same store NOI for
the period increased 2.5% over the first quarter of 2017.
General and administrative expenses increased by approximately $0.6
million over the same period in 2017. Absent $1.1 million of expenses
associated with changes to the Company's Board of Directors and other
proxy-related matters in 2018, and $0.7 million incurred for the
Company's change of name in 2017, general and administrative costs would
have been essentially flat year over year.
The Company achieved same store revenue growth in 25 of the 33 major
markets in its same store pool, with 27 markets maintaining an average
quarterly occupancy greater than 90%. Markets with the strongest
positive revenue impact included Las Vegas, NV; Houston/Beaumont, TX;
California (Northern and Southern); Buffalo-Upstate New York; and
Boston, MA.
PROPERTIES:
During the quarter, the Company added 10 properties to its third-party
management platform. It now manages a total of 145 properties through
its joint venture and third-party management agreements. It has an
additional 26 properties under contract to manage commencing in 2018 and
2019, three of which opened subsequent to quarter end. Twenty-one of the
remaining 23 contracts are new developments.
As of March 31, 2018, the Company had no properties under contract to
purchase for its own portfolio or that of its joint ventures but expects
to contribute up to $50 million to new or existing joint ventures during
2018.
CAPITAL STRUCTURE AND LIQUIDITY:
Illustrated below are key financial ratios at March 31, 2018:
-
Debt to Enterprise Value (at $83.52/share) 31.2%
-
Debt to Book Cost of Storage Facilities 40.8%
-
Debt to Recurring Annualized EBITDA 5.7x
-
Debt Service Coverage 4.6x
At March 31, 2018, the Company had approximately $7.8 million of cash on
hand, and $370 million available on its line of credit.
COMMON STOCK DIVIDEND:
Subsequent to quarter-end, the Company's Board of Directors approved a
quarterly dividend of $1.00 per share or $4.00 annualized.
YEAR 2018 EARNINGS GUIDANCE:
The following assumptions covering operations have been utilized in
formulating guidance for the second quarter and full year 2018:
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Same Store
Projected Increases Over 2017
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2Q 2018
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FY 2018
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Revenue
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2.25 - 3.25%
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1.75 - 2.75%
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Operating Costs (excluding property taxes)
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1.25 - 2.25%
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1.00 - 2.00%
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Property Taxes
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5.50 - 6.50%
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5.50 - 6.50%
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Total Operating Expenses
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2.75 - 3.75%
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2.50 - 3.50%
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Net Operating Income
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2.00 - 3.00%
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1.25 - 2.25%
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The Company's 2018 same store pool consists of the 535 stabilized stores
owned since December 31, 2016, which includes the stabilized legacy
LifeStorage locations. The stores purchased between 2015 and 2017 at
certificate of occupancy or that were in the early stages of lease-up
are not included, regardless of their current occupancies. The Company
believes that occupancy levels achieved during the lease-up period,
using discounted rates, are not truly indicative of a new store's
performance, and therefore do not result in a meaningful year-over-year
comparison in future years. The Company will include such stores in its
same store pool in the first year after the stores achieve 80% sustained
occupancy using market rates and incentives. Accordingly, three
certificate of occupancy facilities constructed in 2014 that have
achieved stabilized occupancy and rates have been added to the 2018 same
store pool.
The Company plans to complete $50 - $55 million of expansions in 2018.
It also has budgeted $20 - $23 million to provide for recurring
capitalized expenditures including roofing, paving, and office
renovations.
The Company has not included any acquisition activity for 2018. Should
any acquisitions or joint venture investments occur, they are expected
to be funded by free cash flow and draws on its line of credit which
carries an interest rate of LIBOR plus 1.10%.
In 2018, the Company anticipates entering into additional joint
ventures, or adding to its existing agreements, contributing up to $50
million.
As of March 31, 2018, the Company operated 22 self storage facilities
that it acquired between 2015 - 2017 upon issuance of certificate of
occupancy or in the early stages of lease-up. These properties are
expected to contribute above average revenue growth in 2018.
Annual general and administrative expenses are expected to be
approximately $44 - $45 million.
As a result of the above assumptions, management expects adjusted funds
from operations for the full year 2018 to be approximately $5.36 to
$5.43 per share, and between $1.32 and $1.36 per share for the second
quarter of 2018.
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Reconciliation of Guidance
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2Q 2018
Range or Value
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FY 2018
Range or Value
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Earnings per share attributable to common shareholders -
diluted
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$ 0.77 - $ 0.81
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$ 3.12 - $ 3.19
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Plus: real estate depreciation and amortization
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0.55 - 0.55
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2.24 - 2.24
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FFO per share
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$ 1.32 - $ 1.36
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$ 5.36 - $ 5.43
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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 ability to enter new
markets where it has little or no operational experience; 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:
Life Storage will hold its First Quarter Earnings Release Conference
Call at 9:00 a.m. Eastern Time on Thursday, May 3, 2018. To help avoid
connection delays, participants are encouraged to pre-register using this
link. Anyone unable to pre-register may access the conference call
at 877.737.7051 (domestic), or 201.689.8878 (international). Management
will accept questions from registered financial analysts after prepared
remarks; all others are encouraged to listen to the call via webcast by
accessing the investor relations tab at lifestorage.com/.
The webcast will be archived for 90 days; a telephone replay will also
be available for 72 hours by calling 877.481.4010 and entering
conference ID 27725.
ABOUT LIFE STORAGE, INC:
Life
Storage, Inc. is a self-administered and self-managed equity REIT
that is in the business of acquiring and managing self storage
facilities. Located in Buffalo, New York, the Company operates more than
700 storage facilities in 28 states. The Company serves both residential
and commercial storage customers with storage units rented by month.
Life Storage consistently provides responsive service to its
390,000-plus customers, making it a leader in the industry. For more
information visit http://invest.lifestorage.com/.
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Life Storage, Inc.
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Balance Sheet Data
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(unaudited)
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March 31,
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December 31,
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(dollars in thousands)
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2018
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2017
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Assets
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Investment in storage facilities:
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Land
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$
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786,628
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$
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786,628
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Building, equipment and construction in progress
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3,541,631
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3,534,782
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4,328,259
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4,321,410
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Less: accumulated depreciation
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(647,130
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)
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(624,314
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Investment in storage facilities, net
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3,681,129
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3,697,096
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Cash and cash equivalents
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7,778
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9,167
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Accounts receivable
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7,286
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7,331
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Receivable from joint ventures
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900
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1,397
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Investment in joint ventures
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133,106
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133,458
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Prepaid expenses
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17,335
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6,757
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Trade name
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16,500
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16,500
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Fair value of interest rate swap agreements
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277
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205
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Other assets
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4,603
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4,863
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Total Assets
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$
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3,868,914
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$
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3,876,774
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Liabilities
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Line of credit
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$
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130,000
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$
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105,000
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Term notes, net
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1,609,576
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1,609,089
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Accounts payable and accrued liabilities
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69,227
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92,941
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Deferred revenue
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10,347
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9,374
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Mortgages payable
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12,581
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12,674
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Total Liabilities
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1,831,731
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1,829,078
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Noncontrolling redeemable Operating Partnership Units at redemption
value
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17,846
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19,373
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Equity
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Common stock
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465
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466
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Additional paid-in capital
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2,364,671
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2,363,171
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Accumulated deficit
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(338,489
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(327,727
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Accumulated other comprehensive loss
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(7,310
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(7,587
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Total Shareholders' Equity
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2,019,337
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2,028,323
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Total Liabilities and Shareholders' Equity
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$
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3,868,914
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$
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3,876,774
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Life Storage, Inc.
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Consolidated Statements of Operations
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(unaudited)
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January 1, 2018
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January 1, 2017
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to
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to
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(dollars in thousands, except share data)
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March 31, 2018
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March 31, 2017
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Revenues
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Rental income
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$
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121,624
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$
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118,594
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Other operating income
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9,075
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7,908
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Management and acquisition fee income
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2,395
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1,818
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Total operating revenues
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133,094
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128,320
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Expenses
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Property operations and maintenance
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30,449
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29,796
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Real estate taxes
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15,419
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14,435
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General and administrative
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12,044
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11,436
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Operating leases of storage facilities
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141
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-
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Depreciation and amortization
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24,764
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24,864
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Amortization of in-place customer leases
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-
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12,778
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Total operating expenses
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82,817
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93,309
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Income from operations
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50,277
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35,011
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Other income (expense)
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Interest expense (A)
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(17,204
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(15,210
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Interest income
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4
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3
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Equity in income of joint ventures
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972
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721
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Net income
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34,049
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20,525
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Noncontrolling interests in the Operating Partnership
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(160
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)
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(96
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)
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Net income attributable to common shareholders
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$
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33,889
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$
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20,429
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Earnings per common share attributable to common shareholders -
basic
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$
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0.73
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$
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0.44
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Earnings per common share attributable to common shareholders -
diluted
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$
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0.73
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$
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0.44
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Common shares used in basic
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earnings per share calculation
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46,452,492
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46,304,568
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Common shares used in diluted
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earnings per share calculation
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46,536,672
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46,418,891
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Dividends declared per common share
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$
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1.00
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$
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0.95
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(A) Interest expense for the period ending March 31 consists of
the following
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Interest expense
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$
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16,679
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$
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14,690
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Amortization of debt issuance costs
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525
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520
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Total interest expense
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$
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17,204
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$
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15,210
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Life Storage, Inc.
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Computation of Funds From Operations (FFO) (1)
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(unaudited)
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January 1, 2018
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January 1, 2017
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to
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to
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(dollars in thousands, except share data)
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March 31, 2018
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March 31, 2017
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Net income attributable to common shareholders
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$
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33,889
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$
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20,429
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Noncontrolling interests in the Operating Partnership
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160
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96
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Depreciation of real estate and amortization of intangible
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assets exclusive of debt issuance costs
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24,256
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37,265
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Depreciation and amortization from unconsolidated joint ventures
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1,197
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|
768
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Funds from operations allocable to noncontrolling
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interest in Operating Partnership
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(280
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)
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(273
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)
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Funds from operations available to common shareholders
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59,222
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58,285
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FFO per share - diluted
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$
|
1.27
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$
|
1.26
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Adjustments to FFO
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Board changes and other proxy related expenses
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1,128
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-
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Funds from operations resulting from non-recurring items
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|
|
|
|
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allocable to noncontrolling interest in Operating Partnership
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(5
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)
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|
-
|
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Adjusted funds from operations available to common shareholders
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|
|
|
60,345
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|
|
|
|
58,285
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|
Adjusted FFO per share - diluted
|
|
|
$
|
1.30
|
|
|
|
$
|
1.26
|
|
|
|
|
|
|
|
|
Common shares - diluted
|
|
|
|
46,536,672
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|
|
|
|
46,418,891
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|
|
|
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Life Storage, Inc.
|
Quarterly Same Store Data (3) 535
mature stores owned since 12/31/16
|
(unaudited)
|
|
|
|
January 1, 2018
|
|
|
January 1, 2017
|
|
|
|
|
|
|
|
|
|
to
|
|
|
to
|
|
|
|
|
|
Percentage
|
(dollars in thousands)
|
|
|
March 31, 2018
|
|
|
March 31, 2017
|
|
|
Change
|
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental income
|
|
|
$
|
116,194
|
|
|
$
|
113,466
|
|
|
$
|
2,728
|
|
|
|
2.4
|
%
|
Revenues related to tenant insurance
|
|
|
|
4,653
|
|
|
|
4,388
|
|
|
|
265
|
|
|
|
6.0
|
%
|
Other operating income
|
|
|
|
1,685
|
|
|
|
1,694
|
|
|
|
(9
|
)
|
|
|
-0.5
|
%
|
Total operating revenues
|
|
|
|
122,532
|
|
|
|
119,548
|
|
|
|
2,984
|
|
|
|
2.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Payroll and benefits
|
|
|
|
10,544
|
|
|
|
10,228
|
|
|
|
316
|
|
|
|
3.1
|
%
|
Real estate taxes
|
|
|
|
14,378
|
|
|
|
13,540
|
|
|
|
838
|
|
|
|
6.2
|
%
|
Utilities
|
|
|
|
4,075
|
|
|
|
3,777
|
|
|
|
298
|
|
|
|
7.9
|
%
|
Repairs and maintenance
|
|
|
|
4,703
|
|
|
|
4,940
|
|
|
|
(237
|
)
|
|
|
-4.8
|
%
|
Office and other operating expense
|
|
|
|
4,182
|
|
|
|
4,016
|
|
|
|
166
|
|
|
|
4.1
|
%
|
Insurance
|
|
|
|
1,444
|
|
|
|
1,365
|
|
|
|
79
|
|
|
|
5.8
|
%
|
Advertising
|
|
|
|
331
|
|
|
|
338
|
|
|
|
(7
|
)
|
|
|
-2.1
|
%
|
Internet marketing
|
|
|
|
1,936
|
|
|
|
2,353
|
|
|
|
(417
|
)
|
|
|
-17.7
|
%
|
Total operating expenses
|
|
|
|
41,593
|
|
|
|
40,557
|
|
|
|
1,036
|
|
|
|
2.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net operating income (2)
|
|
|
$
|
80,939
|
|
|
$
|
78,991
|
|
|
$
|
1,948
|
|
|
|
2.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
QTD Same store move ins
|
|
|
|
48,440
|
|
|
|
50,428
|
|
|
|
(1,988
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
QTD Same store move outs
|
|
|
|
46,703
|
|
|
|
46,882
|
|
|
|
(179
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Comparable Quarterly Same Store Data
|
(unaudited)
|
|
|
|
January 1, 2018
|
|
|
January 1, 2017
|
|
|
|
|
|
|
|
|
|
to
|
|
|
to
|
|
|
|
|
|
Percentage
|
|
|
|
March 31, 2018
|
|
|
March 31, 2017
|
|
|
Change
|
|
|
Change
|
Stores owned since 12/31/15 (430 stores)
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
$
|
94,161
|
|
|
$
|
92,489
|
|
|
$
|
1,672
|
|
|
1.8
|
%
|
Expenses
|
|
|
|
31,539
|
|
|
|
30,825
|
|
|
|
714
|
|
|
2.3
|
%
|
Net operating income
|
|
|
$
|
62,622
|
|
|
$
|
61,664
|
|
|
$
|
958
|
|
|
1.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stores owned since 12/31/14 (412 stores)
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
$
|
90,110
|
|
|
$
|
88,475
|
|
|
$
|
1,635
|
|
|
1.8
|
%
|
Expenses
|
|
|
|
30,012
|
|
|
|
29,387
|
|
|
|
625
|
|
|
2.1
|
%
|
Net operating income
|
|
|
$
|
60,098
|
|
|
$
|
59,088
|
|
|
$
|
1,010
|
|
|
1.7
|
%
|
|
|
Life Storage, Inc.
|
Other Data - unaudited
|
|
|
Same Store (3)
|
|
|
All Stores (4)
|
|
|
|
|
2018
|
|
|
|
|
2017
|
|
|
|
|
2018
|
|
|
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average quarterly occupancy
|
|
|
|
91.1
|
%
|
|
|
|
89.6
|
%
|
|
|
|
90.5
|
%
|
|
|
|
88.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Occupancy at March 31
|
|
|
|
91.2
|
%
|
|
|
|
90.1
|
%
|
|
|
|
90.6
|
%
|
|
|
|
89.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rent per occupied square foot
|
|
|
$
|
13.53
|
|
|
|
$
|
13.51
|
|
|
|
$
|
13.51
|
|
|
|
$
|
13.48
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Life Storage, Inc.
|
Other Data - unaudited (continued)
|
|
|
|
|
|
|
|
Investment in Storage Facilities: (unaudited)
|
|
|
|
|
|
|
The following summarizes activity in storage facilities during the
three months ended March 31, 2018:
|
|
|
|
|
|
|
|
|
|
|
Beginning balance
|
|
|
$ 4,321,410
|
|
|
|
Property acquisitions
|
|
|
-
|
|
|
|
Improvements and equipment additions:
|
|
|
|
|
|
|
Expansions
|
|
|
83
|
|
|
|
Roofing, paving, and equipment:
|
|
|
|
|
|
|
Stabilized stores
|
|
|
3,414
|
|
|
|
Change in construction in progress (Total CIP $19.7 million)
|
|
|
5,336
|
|
|
|
Dispositions and Impairments
|
|
|
(1,984)
|
|
|
|
Storage facilities at cost at period end
|
|
|
$ 4,328,259
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparison of Selected G&A Costs (unaudited)
|
|
|
Quarter Ended
|
|
|
|
March 31, 2018
|
|
|
March 31, 2017
|
|
|
|
|
|
|
|
Management and administrative salaries and benefits
|
|
|
6,465
|
|
|
6,409
|
Training
|
|
|
227
|
|
|
258
|
Call center
|
|
|
715
|
|
|
688
|
Life Storage Solutions costs
|
|
|
204
|
|
|
166
|
Income taxes
|
|
|
450
|
|
|
300
|
Legal, accounting and professional
|
|
|
941
|
|
|
1,134
|
Board changes and other proxy related expenses
|
|
|
1,128
|
|
|
-
|
Name change
|
|
|
-
|
|
|
726
|
Other administrative expenses (5)
|
|
|
1,914
|
|
|
1,755
|
|
|
|
$ 12,044
|
|
|
$ 11,436
|
|
|
|
|
|
|
|
Net rentable square feet
|
|
|
March 31, 2018
|
|
|
|
Wholly owned properties
|
|
|
39,811,273
|
|
|
|
Joint venture properties
|
|
|
7,406,977
|
|
|
|
Third party managed properties
|
|
|
2,834,845
|
|
|
|
|
|
|
50,053,095
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2018
|
|
|
March 31, 2017
|
|
|
|
|
|
|
|
Common shares outstanding
|
|
|
46,514,198
|
|
|
46,496,065
|
Operating Partnership Units outstanding
|
|
|
217,481
|
|
|
217,481
|
|
(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.
|
|
|
(2) 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 to investors in evaluating our 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. Additionally, NOI is widely used in the real estate
industry and the self storage industry to measure the performance
and value of real estate assets without regard to various items
included in net income that do not relate to or are not indicative
of operating performance, such as depreciation and amortization,
which can vary depending on accounting methods and book value of
assets. 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.
|
|
|
(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) Does not include unconsolidated joint venture stores or other
stores managed by the Company.
|
|
|
(5) Other administrative expenses include office rent, travel
expense, investor relations and miscellaneous other expenses.
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20180502006558/en/
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