SALT LAKE CITY-Locally based Extra Space Storage Inc. recently revealed operating results for the three months and year ended Dec. 31, 2013. And according to Spencer F. Kirk, CEO of the company, "it was an exceptional year" not only for Extra Space Storage, but also for the self-storage industry.
"We saw record high occupancies and strong operational performance," says Kirk. "The inflow of new supply continues to be minimal. We are committed to the fundamentals of our business and our focus on being the best at getting better will drive financial and operational excellence in 2014. "
Same-store revenues for the three months and year ended December 31, 2013 increased due to gains in occupancy, lower discounts to new customers and higher rental rates for both new and existing customers. Expenses were higher for the same periods due to increases in payroll, property taxes and repair and maintenance expenses.
Highlights for the three months ended Dec. 31, 2013:
- Achieved funds from operations ("FFO") of $0.52 per diluted share, including a $0.04 expense related to costs associated with acquisitions and a $0.01 expense related to the Company's exchangeable senior notes. Excluding these items, FFO as adjusted was $0.57 per diluted share representing a 26.7% increase compared to the same period in 2012.
- Increased same-store revenue and net operating income ("NOI") by 6.6% and 8.9%, respectively, compared to the same period in 2012.
- Increased same-store occupancy by 130 basis points to 89.2% at December 31, 2013, compared to 87.9% as of December 31, 2012.
- Acquired 50 properties for approximately $310.4 million.
- Paid a quarterly dividend of $0.40 per share.
The company's major markets with revenue growth above the portfolio average for the three months ended Dec. 31, 2013 included Boston, Chicago, Cincinnati and Denver. Major markets performing below the company's portfolio average included Indianapolis, Sacramento and Seattle.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
