Life Storage, Inc. Reports Third Quarter 2018 Results; Increases FFO Guidance
https://www.bloomberg.com/press-releases/...ts-increases-ffo-guidance
David Rogers, Chief Executive Officer stated, ?We had a busy third quarter, and a good one. The stores are performing well, our asset recycling program is progressing as expected, and our Rent Now and Warehouse Anywhere programs have been launched with great success. Tomorrow, our third-party management division, Life Storage Solutions, takes over operation of 42 stabilized stores for an important new client, and we have a solid book of potential new clients in the pipeline. We expect a strong finish to 2018 and are excited about the prospects for the coming year.?
Highlights for the Third Quarter Included: * Increased same store revenue by 3.6% and same store net operating income (?NOI?)^(2) by 4.2% as compared to the third quarter of 2017. * Added five stores to its third-party management platform and entered into agreements to add 42 stabilized properties effective November 1, 2018; upon conversion of those stabilized properties, the Company will manage 203 properties through its joint venture and third-party management agreements. * Acquired two high-quality properties for its owned portfolio located in the greater Boston, MA metro area and Sacramento, CA. * Opened three high-quality joint venture development properties in Phoenix, AZ, Brooklyn, NY, and Miami, FL. * Sold one property in Austin, TX for a gain of $0.9 million (the property remains under Life Storage management); recorded another gain of $0.7 million on land sale. * Announced the expansion of its Warehouse Anywhere ?Last Mile? delivery solution for corporate customers. * Replaced its current credit facility on more favorable terms and extended the maturity date to March 2023 from December 2019. * Paid a quarterly dividend of $1.00 per share of common stock. OPERATIONS: Total revenues increased 4.4% over last year?s third quarter while operating costs decreased 3.0%, resulting in an NOI increase of 8.3%. Revenues for the 533 stabilized stores wholly owned by the Company since December 31, 2016 increased 3.6% from those in the third quarter of 2017, the result of a 3.9% increase in rental rates, partially offset by a 70-basis point decrease in average occupancy.
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