Shurgard Raises Occupancy, Holds Rates

SEATTLE-Shurgard Storage Centers Inc. managed to raise occupancy and hold rates during the first quarter of 2003, according to public documents filed last week.

The Seattle-based storage REIT was to release its earnings on Friday, but instead only released its operating results, explaining that the company’s independent auditor has not completed its review of a hedge transaction. In a conference call with analysts, company Chairman, President and CEO Charles Barbo expressed embarrassment about the situation, but said the earnings would be released “soon.” Instead, the company discussed its operating results, which will not be affected by the review.

Same store NOI after leasehold and indirect expenses decreased 1.2% in the first quarter 2003 compared to first quarter 2002. The good news is that same store average collected rental rates decreased just two cents in the first quarter 2002 to $11.74 per sf, while same store occupancy for the first quarter 2003 increased one percent to 83%. As a result, same store rental revenue increased 1.6% over the first quarter 2002.