The third quarter of 2013 proved to be a successful one for Self Storage Group with increasing revenues, strong customer demand and acquisition activity booming.
All four public self storage companies, Public Storage, Extra Space Storage, CubeSmart and Sovran Self Storage, saw revenue increases between 5.5% and 9%.
With Net Operating Incomes of each company increasing as well, from 7.2 percent to 10 percent year-over-year.
Strong customer demand encouraged high portfolio occupancy levels ranging from 90.5 percent to 94.4 percent.
The demand supported the success of Public Storage’s largest facility on Gerard Avenue in the Bronx, New York, which impressively rented 1,600 units within the first four months of opening.
And acquisition activity has been on the rise as well, with over $1 billion of properties being acquired or under contract.
On the topic, CEO of Sovran Self Storage David Rogers said, “The acquisition market has come to a rolling boil with just a plethora of deals hitting the market. The recent low cap rate environment has enticed the new group of owners to list their properties, or at least entertain discussions to sell them.” (Via MJ Partners)
The biggest self-storage deal of 2013 came when Public Storage bought all of Stor-All’s 44 facilities for $430 million.