Global Self Storage(SELF) - 2025 Q1 - Quarterly Report

PART I – FINANCIAL INFORMATION Item 1. Financial Statements (Unaudited) Unaudited Q1 2025 financial statements show increased net income and operating cash flow year-over-year Consolidated Balance Sheets Total assets, liabilities, and stockholders' equity all experienced slight reductions as of March 31, 2025 Consolidated Balance Sheet Summary (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Assets | $65,140 | $65,515 | | Real estate assets, net | $53,564 | $53,925 | | Cash and cash equivalents | $7,222 | $7,181 | | Total Liabilities | $17,865 | $18,077 | | Note payable, net | $16,216 | $16,357 | | Total Stockholders' Equity | $47,275 | $47,438 | Consolidated Statements of Operations and Comprehensive Income Q1 2025 revenues grew to $3.13 million, with net income more than doubling to $555,152 Q1 2025 vs. Q1 2024 Statement of Operations (in thousands) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total Revenues | $3,126 | $3,034 | | Total Expenses | $2,403 | $2,443 | | Operating Income | $724 | $591 | | Net Income | $555 | $266 | | Diluted EPS | $0.05 | $0.02 | Consolidated Statements of Cash Flows Net cash from operating activities increased to $1.07 million in Q1 2025, with a net cash increase of $60,000 Q1 2025 vs. Q1 2024 Cash Flow Summary (in thousands) | Cash Flow Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $1,070 | $797 | | Net cash used in investing activities | ($46) | ($10) | | Net cash used in financing activities | ($964) | ($949) | | Net increase (decrease) in cash | $60 | ($162) | Notes to Consolidated Financial Statements Notes detail REIT structure, accounting policies, real estate assets, debt, and a new $15 million At Market Offering Sales Agreement - The company is a self-administered REIT that owned and/or managed thirteen self-storage properties in eight states as of March 31, 2025[28] - The company has a $20 million term loan with a principal balance of $16.5 million as of March 31, 2025, bearing a fixed interest rate of 4.192% and maturing in 2036[70][75] - The company has an undrawn revolving line of credit of up to $15 million, which matures in July 2027[76][79] - Subsequent to the quarter end, on April 4, 2025, the company entered into a new At Market Offering Sales Agreement to sell up to $15 million of its common stock[102] Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses Q1 2025 financial performance, highlighting revenue, operating income, same-store NOI growth, and capital resources Results of Operations Q1 2025 total revenues increased by 3.0% to $3.13 million, expenses decreased, and net income more than doubled Q1 2025 vs. Q1 2024 Performance Summary | Metric | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Total Revenues | $3,126,304 | $3,034,040 | 3.0% | | Total Operating Expenses | $2,402,637 | $2,443,046 | -1.7% | | Operating Income | $723,667 | $590,994 | 22.4% | | Net Income | $555,152 | $266,150 | 108.6% | - The increase in rental income was attributed to higher occupancy and rate increases for existing tenants, partially offset by lower move-in rates[127] Non-GAAP Financial Measures Non-GAAP measures showed strong growth, with FFO up 15.0% and AFFO up 16.8%, reflecting improved operations FFO and AFFO Reconciliation (Q1 2025 vs. Q1 2024) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Income | $555,152 | $266,150 | | FFO attributable to common stockholders | $975,343 | $847,953 | | AFFO attributable to common stockholders | $1,076,079 | $921,232 | | FFO per share - diluted | $0.09 | $0.08 | | AFFO per share - diluted | $0.10 | $0.08 | Same-Store Self Storage Operations Same-store NOI increased by 6.3% in Q1 2025, driven by revenue growth and cost reduction, with occupancy at 92.1% Same-Store Performance (Q1 2025 vs. Q1 2024) | Metric | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Revenues | $3,107,922 | $3,017,311 | 3.0% | | Cost of operations | $1,208,898 | $1,231,116 | -1.8% | | Net operating income (NOI) | $1,899,024 | $1,786,195 | 6.3% | | Overall square foot occupancy | 92.1% | 91.3% | 0.9% | - The decrease in same-store cost of operations was primarily due to lower expenses for employment costs and real estate property taxes[161] Quantitative and Qualitative Disclosures About Market Risk As a smaller reporting company, Global Self Storage, Inc. is not required to provide this information - The company is a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and is not required to provide the information otherwise required by this item[181] Controls and Procedures Management concluded disclosure controls and procedures were effective, with no material changes to internal control - Based on an evaluation, the Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective as of the end of the period covered by this report[184] - There were no changes in internal control over financial reporting during the most recent quarter that have materially affected, or are reasonably likely to materially affect, internal controls[185] PART II – OTHER INFORMATION Legal Proceedings The company reports no material pending legal proceedings - The Company currently does not have any material pending legal proceedings to which it or any of its subsidiaries is a party or of which any of their property is the subject[187] Risk Factors No material changes to risk factors previously disclosed in the Annual Report on Form 10-K for FY2024 - There are no material changes to the risk factors previously disclosed in the Annual Report on Form 10-K for the fiscal year ended December 31, 2024[188] Unregistered Sales of Equity Securities, Defaults Upon Senior Securities, and Mine Safety Disclosures These items are not applicable for the reporting period - Items 2, 3, and 4 are noted as 'Not applicable'[189] Other Information No directors or officers adopted, terminated, or modified Rule 10b5-1 or non-Rule 10b5-1 trading arrangements - No directors or officers adopted, terminated, or modified a 'Rule 10b5-1 trading arrangement' or 'non-Rule 10b5-1 trading arrangement' during the three months ended March 31, 2025[190] Exhibits Index of exhibits filed with Form 10-Q, including CEO/CFO certifications and an At Market Offering Sales Agreement - The exhibit index lists key filings, including CEO/CFO certifications (Exhibits 31.1, 31.2, 32.1, 32.2) and the At Market Offering Sales Agreement with A.G.P./Alliance Global Partners (Exhibit 10.1)[193]