NEW YORK, Aug. 14 -- Global Self Storage issued the following news release:- Limited COVID-19 Impact to Revenues and Continued to Employ a Disciplined Approach to Controlling Expenses, Driving Strong Same-Store Net Operating Income Growth Global Self Storage, Inc. (NASDAQ: SELF) a real estate investment trust that owns, operates, manages, acquires, develops and redevelops self-storage properties, reported results for the second quarter and first half ended June 30, 2020. All comparisons are to the same period in 2019 unless otherwise noted. Q2 2020 Highlights * Total revenues increased 4.0% to $2.2 million. * Net loss was $22,000 or $(0.00) per share. * Funds from operations (FFO) was $508,000 or $0.05 per diluted share. * Adjusted FFO (AFFO) was $545,000 or $0.06 per diluted share (see definition of FFO and AFFO, both non-GAAP terms, and their reconciliation to GAAP, below). * Same-store revenues decreased 1.3% to $1.8 million. * Same-store cost of operations decreased 14.0% to $711,000, which resulted from a decrease in every major category of same-store level expenses. * Same-store net operating income (NOI) increased 9.1% to $1.1 million, primarily due to the decrease in store-level cost of operations and limiting the decrease in revenues caused by the COVID-19 pandemic, as described below. * Same-store occupancy at June 30, 2020 decreased 110 basis points to 92.9% from 94.0% at June 30, 2019. * Same-store average tenant duration of stay at June 30, 2020 was approximately 3.0 years, up from 2.9 years at June 30, 2019. * Maintained quarterly dividend of $0.065 per share. * Capital resources at June 30, 2020 totaled approximately $9.3 million, comprised of $2.7 million in cash and cash equivalents and restricted cash, $1.5 million in marketable equity securities, and $5.1 million available under a revolving credit line. * Deceleration of general and administrative (G&A) expense growth limited the increase in G&A expense to 3.8%. First Half 2020 Highlights * Total revenues increased 5.1% to $4.5 million. * Net loss was $379,000 or $(0.04) per share. * FFO was $858,000 or $0.09 per diluted share. * AFFO was $933,000 or $0.10 per diluted share. * Same-store revenues increased 0.4% to $3.7 million, despite COVID-19 pandemic and related economic disruption. * Same-store cost of operations decreased 11.1% to $1.5 million, resulting from a decrease in every major category of same-store level expenses. * Same-store NOI increased 9.7% to $2.2 million, primarily due to the decrease in store-level cost of operations and limiting the reduction in revenue growth caused by the COVID-19 pandemic, as described below. * Same-store occupancy at June 30, 2020 decreased 110 basis points to 92.9% from 94.0% at June 30, 2019. * Same-store average tenant duration of stay at June 30, 2020 was approximately 3.0 years, up 3.5%. * Distributed dividends of $0.13 per share of common stock. Update Related to COVID-19 Pandemic * Continued operations and provided tenant access at all stores, as the company continued to protect its tenants and employees by following applicable COVID-19 safety guidelines. * Benefited from contactless technology deployed pre-COVID-19 that provides tenants online leasing and payment options, as well as on-site kiosks that facilitate contactless rentals, lock purchases and payments 24/7. * Total revenue growth was up 4% for the second quarter of 2020, versus the same period last year. * At June 30, 2020, same-store occupancy was 92.9% and combined store occupancy was at 90.5%. * Rent collections during Q2 have remained consistent year over year at greater than 97%, despite the COVID-19 pandemic. * Reduction in same-store revenues was caused by the temporary suspension of the company's existing tenant revenue rate increase program, waiver of certain late fees due to COVID-19 hardship, and delays to the company's auction process-all designed to maintain tenant occupancy and retain brand loyalty during the COVID-19 pandemic. * In light of reduced in-person marketing opportunities due to the COVID-19 pandemic, the company has pivoted to digital and print marketing of its third-party management program, Global MaxManagementSM. * Continuing to explore the possibility of entering into joint-venture relationships with third parties for the acquisition of self-storage facilities; the company believes such third-party interest to conduct business with the company is due to its history of strong same-store performance and proven operational expertise. * Capital resources available at June 30, 2020 totaled approximately $9.3 million, providing operational flexibility for the company to continue to pursue its long-term strategic business plan. The plan includes self-storage property acquisitions, either directly or through joint ventures, and expansions at its existing properties. * Company continues to remain cautious regarding the second half of the year due to the continuing uncertainty related to the impacts of the COVID-19 pandemic, including the potential for future stay-at-home orders, uncertain economic climate, and potential impact on rentals, vacates, pricing, receivables, auctions and existing customer rent increases. Disclaimer: The full PDF release can be found at https://content.equisolve.net/_be24d5840ba82403753da04da4473141/globalselfstorageinc/news/2020-08-14_Global_Self_Storage_Reports_Second_Quarter_2020_105.pdf About Global Self Storage Global Self Storage is a self-administered and self-managed REIT that owns, operates, manages, acquires, develops and redevelops self-storage properties. The company's self-storage properties are designed to offer affordable, easily accessible and secure storage space for residential and commercial customers. Through its wholly owned subsidiaries, the company owns and/or manages 13 self-storage properties in Connecticut, Illinois, Indiana, New York, Ohio, Pennsylvania, South Carolina, and Oklahoma. Source: Global Self Storage |