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

Q1 2025 Highlights Global Self Storage reported strong Q1 2025 growth with 3.0% revenue increase, doubled net income, and double-digit FFO/AFFO gains, supported by $24.9 million in capital resources | Metric | Q1 2025 | Change vs. Q1 2024 | | :--- | :--- | :--- | | Total Revenues | $3.1 million | +3.0% | | Net Income | $555,000 | +108.6% | | Diluted EPS | $0.05 | +150% | | Same-Store Revenues | $3.1 million | +3.0% | | Same-Store NOI | $1.9 million | +6.3% | | FFO (non-GAAP) | $975,000 | +15.0% | | AFFO (non-GAAP) | $1.1 million | +16.8% | | Same-Store Occupancy | 92.1% | +80 bps | - The company declared a quarterly dividend of $0.0725 per share, consistent with the prior year and quarter, representing an annualized rate of $0.29 per share[3] - Capital resources at quarter-end totaled approximately $24.9 million, consisting of $7.3 million in cash, $2.6 million in marketable securities, and a fully available $15 million revolving credit facility[4] Management Commentary and Company Strategy Management highlighted peer-leading same-store growth from operational excellence and marketing, aiming to increase stockholder value through acquisitions and expansions - The company's primary objective is to increase long-term stockholder value by executing its strategic business plan, which includes acquisitions and expansion projects[5] - Management attributes strong Q1 results, including peer-leading growth in same-store revenues and NOI, to exceptional operational performance, customer-focused management, and a proprietary revenue rate management program[7] - Innovative marketing strategies have attracted high-quality, long-term tenants, increasing the peer-leading same-store average tenant duration of stay to a record 3.5 years[9] - A strong balance sheet with approximately $24.9 million in capital resources positions the company to execute its growth strategy through acquisitions, joint ventures, and expansion[12] Q1 2025 Financial Performance Q1 2025 financial performance demonstrated robust revenue growth and cost management, leading to a 22.4% operating income increase and strong double-digit FFO/AFFO growth Overall Financial Summary Q1 2025 saw total revenues increase 3.0% to $3.1 million, operating expenses decrease 1.7%, and operating income rise 22.4% to $724,000, with net income more than doubling | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Total Revenues | $3.1 million | $3.0 million | +3.0% | | Total Operating Expenses | $2.40 million | $2.44 million | -1.7% | | Operating Income | $724,000 | $591,000 | +22.4% | | Net Income | $555,000 | $266,000 | +108.6% | Same-Store Results Q1 2025 same-store properties showed strong performance with 3.0% revenue growth to $3.1 million, a 1.8% decrease in operating costs, and a 6.3% increase in NOI to $1.9 million | Same-Store Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Revenues | $3.1 million | $3.0 million | +3.0% | | Cost of Operations | $1.21 million | $1.23 million | -1.8% | | Net Operating Income (NOI) | $1.9 million | $1.8 million | +6.3% | | Occupancy (at March 31) | 92.1% | 91.3% | +80 bps | - The average duration of tenant stay for same-store properties increased to approximately 3.5 years from 3.3 years in the prior year[19] Operating Results and Non-GAAP Measures (FFO & AFFO) The company achieved significant growth in non-GAAP metrics, with FFO increasing 15.0% to $975,000 and AFFO rising 16.8% to $1.1 million, alongside reduced expenses | Metric (per diluted share) | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Net Income (EPS) | $0.05 | $0.02 | +150% | | FFO | $0.09 | $0.08 | +12.5% | | AFFO | $0.10 | $0.08 | +25.0% | FFO & AFFO Reconciliation Summary (in thousands) | | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Income | $555 | $266 | | (+) Depreciation & Amortization | $407 | $407 | | (+) Unrealized loss on securities | $13 | $175 | | FFO | $975 | $848 | | (+) Stock-based compensation | $101 | $71 | | AFFO | $1,076 | $921 | Financial Statements This section presents the unaudited consolidated financial statements for Q1 2025, including Balance Sheets, Statements of Operations, and GAAP Net Income to Same-Store NOI reconciliation Consolidated Balance Sheets As of March 31, 2025, the Consolidated Balance Sheet reported total assets of $65.1 million, total liabilities of $17.9 million, and total stockholders' equity of $47.3 million Consolidated Balance Sheet Summary (as of March 31, 2025) | Category | Amount | | :--- | :--- | | Assets | | | Real estate assets, net | $53,564,202 | | Cash and cash equivalents | $7,221,583 | | Total assets | $65,139,599 | | Liabilities & Equity | | | Note payable, net | $16,216,391 | | Total liabilities | $17,864,760 | | Total stockholders' equity | $47,274,839 | | Total liabilities and stockholders' equity | $65,139,599 | Consolidated Statements of Operations For Q1 2025, the Consolidated Statement of Operations reported total revenues of $3.13 million, total expenses of $2.40 million, operating income of $723,667, and net income of $555,152 Consolidated Statement of Operations Summary (For the Three Months Ended March 31, 2025) | Category | Amount | | :--- | :--- | | Total revenues | $3,126,304 | | Total expenses | $2,402,637 | | Operating income | $723,667 | | Total other expense, net | ($168,515) | | Net income | $555,152 | | Diluted EPS | $0.05 | Reconciliation of GAAP Net Income to Same-Store NOI This table reconciles GAAP Net Income of $555,152 to Total Same-Store NOI, which increased 6.3% to $1,899,024 in Q1 2025 after various adjustments Same-Store NOI Reconciliation | | For the Three Months Ended March 31, | | :--- | :--- | :--- | | | 2025 | 2024 | | Net income | $555,152 | $266,150 | | Adjustments (G&A, D&A, Interest, etc.) | $1,343,872 | $1,520,045 | | Total same-store net operating income | $1,899,024 | $1,786,195 | Definitions and Disclosures This section provides crucial context for financial results, defining non-GAAP measures like FFO, AFFO, and NOI, explaining same-store portfolio calculation, and including forward-looking statement disclaimers Non-GAAP Financial Measures This section defines key non-GAAP financial measures, including FFO, AFFO, and NOI, used to provide a clearer understanding of the company's operating performance and store-level evaluation - FFO (Funds from Operations): Defined by NAREIT as net income, excluding gains/losses from property sales and adding back real estate depreciation and amortization. The company also excludes unrealized gains/losses on marketable equity securities[26][27] - AFFO (Adjusted FFO): Represents FFO excluding effects of stock-based compensation, business development, and other non-recurring items not indicative of ongoing operating results[28] - NOI (Net Operating Income): Defined as net store earnings before general and administrative expenses, interest, taxes, depreciation, and amortization. It is used to measure operating performance and make capital allocation decisions[29] Same-Store Self Storage Operations Definition The same-store portfolio includes stabilized properties owned and operated for comparable periods, with a store considered stabilized after achieving market occupancy for a full year, enabling performance evaluation without acquisition effects - The same-store portfolio includes properties owned and operated on a stabilized basis throughout the entire applicable periods being compared[31] - A store is considered stabilized after achieving a representative market occupancy for a full year, allowing for performance evaluation without the effects of acquisitions or developments. As of Q1 2025, all twelve owned properties were classified as same-store[31][32] Forward-Looking Statements This section provides a standard cautionary note regarding forward-looking statements, highlighting inherent risks and uncertainties that may cause actual results to differ materially from projections - The report contains forward-looking statements about plans, objectives, and future performance which are subject to known and unknown risks and uncertainties. Actual results may differ materially from those expressed[33]