Sponsored and Facilitated by:
Self Storage Brokers of California
Storage Owners Networking Meeting
Page 1Owners Network Meeting
9:00 to Noon Facilitator – Joe Garvey
• Introductions / Question of the Day
• Collier Valuation Update
Jeff Shouse
• Google, Craiglist, Aggregator
Mark
• Tidbits
Mark
Owners Network Meeting
March 2014
o
Please Check In
o
Verify Contact Info
o
Materials Tables3
Yes. I will need
a 10 by 30 and
a parking space
1
2
3
1-2-3 Theme
1. Make the phone ring
2. Answer the phone
3. Complete the sale
April 16
th5:00 Registration
Wine Tasting with Flora Springs
Meet the wine maker, 2012 wine grower of the year
Hosted by SSBC / SSMC
April 17
th8:00 Registration
9:00 to 3:30 Conference
4:30 to 6:00 Reception
Napa Registration $ 200 for Owner Member
If you join CSSA, fee will be waived
Sponsored and Facilitated by:
Self Storage Brokers of California
Storage Owners Networking Meeting
Page 7Introduction & Opening Discussion
Questions of the day
Last time you reviewed google places?
Do you use a web aggregator? If so who, fee structure, results?
Are you aware of any pending storage development?
Facility / Location
Any keys issues you are facing you would like the
group to discuss?
Sponsored and Facilitated by:
Self Storage Brokers of California
Storage Owners Networking Meeting
Page 8Site Level - Occupancy Survey
Results will be emailed to signin sheet
Overall Site
Occupancy
Less
70%
71 - 80% 81-90% 91-95%
Over
95%
Storage
Containers
Parking
Last increase in standard rate more than 12 months? Yes ____ No ____
Do you look at standard rates on a monthly basis as part of your standard process?
Does your management software have automated rate management capability?
Last increase in a tenant rate less than 6 months? Yes _____ No ________
Sponsored and Facilitated by:
Self Storage Brokers of California
Storage Owners Networking Meeting
Page 9Unit Size – Occupancy
Unit Size
Less
70%
71 - 80% 81-90%
91-95%
Over
95%
5 * 5
5 * 10
10 * 10
10 * 20
10 * 30
Parking - Uncovered
Parking - Covered
Parking - Enclosed
=
Sponsored and Facilitated by:
Self Storage Brokers of California
Storage Owners Networking Meeting
Page 10Unit Size – Rental Survey
Unit Size
Under
$25
$ 26
-$ 40
$41
-$ 60
$61
-$ 80
$81
-$ 100
$101
-$120
$121
-$140
$141
-$160
Over
$ 161
5 * 5
5 * 10
10 * 10
10 * 20
10 * 30
Parking - Uncovered
Parking - Covered
Parking - Enclosed
Sponsored and Facilitated by:
Self Storage Brokers of California
Storage Owners Networking Meeting
Page 12National Cap Rates
Self-Storage 7 .7 5 % 7 .4 0 % 7 .6 5 % 7 .6 5 % 7 .7 5 % 7 .5 5 % 8 .0 0 % 8.5 5 % 8 .7 5 % 8 .4 5 % 7 .7 5 % 7 .5 0 % 7 .3 0 % 7 .0 0 % 6 .7 5 % 6 .5 5 % 6 .2 5 % 4.0% 4.5% 5.0% 5.5% 6.0% 6.5% 7.0% 7.5% 8.0% 8.5% 9.0% 4Q-05 4Q-06 4Q-07 4Q-08 4Q-09 4Q-10 4Q-11 4Q-12 4Q-13
National Capitalization Rate Averages
Self-Storage Source: PriceWaterhouse Coopers
Self-Storage
4Q-05 7.75% 2Q-06 7.40% 4Q-06 7.65% 2Q-07 7.65% 4Q-07 7.75% 2Q-08 7.55% 4Q-08 8.00% 2Q-09 8.55% 4Q-09 8.75% 2Q-10 8.45% 4Q-10 7.75% 2Q-11 7.50% 4Q-11 7.30% 2Q-12 7.00% 4Q-12 6.75% 2Q-13 6.55% 4Q-13 6.25%Sponsored and Facilitated by:
Self Storage Brokers of California
Storage Owners Networking Meeting
Page 13Recent Closings
Actual
Location
Class
Age
Sq Foot
Units % Occ
Price
Cap
Time
Turlock
B
15
37,000
347
80
2,800M
6.5%
Q1-14
Chowchilla
C
20
32,000
430
88
1,450M
8.0%
Q1-14
Online Marketing
Google Places
Select Add a Listing
Select Business and Verify
Wrong phone numbers are not uncommon
•
Multiple numbers for a site
•
Marketing phone number
•
YP.com phone numbers
•
etc
Describe the business
Edit
Note
required
verification
Before
Edit Hours
Add photos – remember a map
Describe your site – why you?
Benefits of Login Account
Previous ads saved
Ads can be reposted
Ads get published directly (rather
than emailed for consent)
Review the ads that are posted (content, frequency, message)
Different message, multiple listings, branded site info
Site name is okay, site name with special is better
Market to the languages spoken in the area
Have 5-10 ads with different message to change
Summary - Aggregator
Can be useful in a crowded market
(ie. Sacramento yes)
Can be used in conjunction with, or instead of other web techniques such as
Google ad words or Search Engine Optimization (SEO)
In a major market, the REITs will dominate internet presence
There are different payment alternatives and methods
By rental (size, dollar)
Percentage
Need to understand average length of stay
Track results and net benefits
An important question to ask – can you win the business cost effectively on
your own initiative
Tidbits
ADA Handle
REIT Performance
Mark Yandow
Yes. I will need
a 10 by 30 and
a parking space
A small and particularly interesting
item of gossip or information
Sponsored and Facilitated by:
Self Storage Brokers of California
Storage Owners Networking Meeting
Page 42General Trends from Observation and Phone Call
Upward trend in occupancy in Central Valley and Northern California
Development has started nationwide
New construction started
Projects going through planning process
Land deals coming back onto market
Building is, and will occur in over saturated markets
Why? Prime locations
3 new sites into Bakersfield in excellent locations. They will control
pricing and new demand, and secondary locations in the vicinity will
get hammered.
Sponsored and Facilitated by:
Self Storage Brokers of California
Storage Owners Networking Meeting
Page 43ADA Handles
5% of 1
st
200 units
Sponsored and Facilitated by:
Self Storage Brokers of California
Storage Owners Networking Meeting
Page 44Sponsored and Facilitated by:
Self Storage Brokers of California
Storage Owners Networking Meeting
Page 45*
*
*
Sponsored and Facilitated by:
Self Storage Brokers of California
Storage Owners Networking Meeting
Page 47Public Storage
Operating Results for the Three Months Ended December 31, 2013
Our self-storage net operating income increased $38.1 million in the three months ended December 31, 2013 as compared to the same period in 2012, including $24.7 million for our Same Store Facilities and $13.4 million for our non-Same Store Facilities. Revenues for the Same Store Facilities increased 5.4% or $22.0 million in the quarter ended December 31, 2013 as compared to the same period in 2012, due to higher realized annual rent per occupied square foot and higher average occupancy. Cost of operations for the Same Store Facilities decreased by 2.6% or $2.7 million in the quarter ended December 31, 2013 as compared to the same period in 2012, due primarily to lower advertising and selling costs offset partially by higher snow removal and
property tax expense. The increase in net operating income for the non-Same Store Facilities is due primarily to the impact of the acquisition of 145 self-storage facilities from third parties since January 2012.
Our self-storage net operating income increased $124.6 million in the year ended December 31, 2013 as compared to the same period in 2012, including $93.0 million for our Same Store Facilities and $31.6 million for our non-Same Store Facilities. Revenues for the Same Store Facilities increased 5.3% or $86.5 million in the year ended December 31, 2013 as compared to the same period in 2012, due to higher realized annual rent per occupied square foot and higher average occupancy. Cost of operations for the Same Store Facilities decreased by 1.3% or $6.5 million in the year ended December 31, 2013 as compared to the same period in 2012, due primarily to lower repairs and maintenance and advertising and selling costs, offset partially by higher snow removal and property tax expense. The increase in net operating income for the non-Same Store Facilities is due primarily to the impact of the acquisition of 145 self-storage facilities from third parties since January 2012
Public Storage, a member of the S&P 500 and FT Global 500, is a fully integrated, self-administered and self-managed real estate investment trust that primarily acquires, develops, owns and operates self-storage facilities. The Company’s headquarters are located in Glendale, California. At March 31, 2013, the Company had interests in 2,080 self-storage facilities located in 38 states with approximately
133 million net rentable square feet in the United States and 188 storage facilities located in seven Western European nations with approximately ten million net rentable square feet operated under the “Shurgard” brand. The Company also owns a 41% common equity interest in PS Business Parks, Inc. (NYSE:PSB) which owned and operated approximately 28.3 million rentable square feet of commercial space, primarily flex, multi-tenant office and industrial space, at March 31, 2013.
Sponsored and Facilitated by:
Self Storage Brokers of California
Storage Owners Networking Meeting
Page 48Extra Space
About Extra Space Storage Inc.
Extra Space Storage Inc.
, headquartered in Salt Lake City, is a fully
integrated, self-administered and self-managed real estate
investment trust. As of June 30, 2013, the Company owned and/or
operated 974 self-storage properties in 35 states, Washington, D.C.
and Puerto Rico. The Company's properties comprise
approximately 649,000 units and approximately 71.0 million square
feet of rentable storage space offering customers conveniently
located and secure storage solutions, including business storage.
Extra Space Storage is the second-largest owner and/or operator of
self-storage properties.
Spencer F. Kirk, CEO of Extra Space Storage Inc., commented: "2013 was an exceptional year for the
self-storage industry and for Extra Space Storage. We saw record high occupancies and strong operational
performance. The inflow of new supply continues to be minimal.
Highlights for the three months ended December 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.
Sponsored and Facilitated by:
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Storage Owners Networking Meeting
Page 49CubeSmart Reports Annual 2013
Key Highlights for the Quarter
•
Increased same-store (298 facilities) net operating income
("NOI") 7.3% year over year, driven by 6.7% revenue
growth and a 5.3% increase in property operating
expenses.
•
Same-store occupancy averaged 89.3% during the quarter,
up 420 basis points year over year; ended the quarter with
same-store occupancy of 88.9%.
•
Closed on six facility acquisitions totaling $56.7 million,
including locations in Florida, Maryland, and Texas.
•
Acquired 35 facilities located in Texas (34) and North
Carolina (1) through a newly formed joint venture for an
aggregate purchase price of $315.7 million.
•
Disposed of 22 facilities in California, Tennessee, and
Texas for combined proceeds of $90.0 million.
CubeSmart is a self-administered and self-managed real
estate investment trust. CubeSmart owns or manages 532
self-storage facilities across the United States. According to
the 2014 Self Storage Almanac, CubeSmart is one of the top
four owners and operators of self-storage facilities in the
U.S.
Uncle Bobs
Sponsored and Facilitated by:
Sponsored and Facilitated by:
Self Storage Brokers of California
Storage Owners Networking Meeting
Page 517,000 units
400 parking spaces
1,100,000 square feet
Web based management software
Financials maintained in the cloud
Owner
Vision
New customers find us on Google? Check
Manger in - check
Money going in the bank? Check
Lets order another round
Rents and leases
24 by 7? check
Phones being answered
100% of the time?
Sponsored and Facilitated by:
Self Storage Brokers of California
