Global Self Storage(SELF) - 2025 Q2 - Quarterly Results

Report Overview & Highlights Q2 2025 Highlights Global Self Storage achieved strong growth in Q2 2025 with increased total and net income, significant growth in same-store revenue, NOI, and occupancy, reaching an industry-leading 94.7% same-store occupancy, while FFO and AFFO saw double-digit growth, maintaining a quarterly dividend of $0.0725 per share and possessing ample capital resources of approximately $25.2 million Q2 2025 Key Financial Metrics | Metric | Q2 2025 | Q2 2024 | Change (%) | | :-------------------------------- | :--------- | :--------- | :------- | | Total Revenue | $3.2 Million | - | 2.7% | | Net Income | $664,000 | $592,000 | 12.16% | | Diluted Net Income Per Share | $0.06 | $0.05 | 20.0% | | Same-Store Revenue | $3.2 Million | - | 2.7% | | Same-Store Operating Costs | $1.2 Million | - | 0.7% | | Same-Store Net Operating Income (NOI) | $2.0 Million | - | 4.0% | | FFO | $1.1 Million | $0.9 Million | 18.9% | | Diluted FFO Per Share | $0.10 | $0.08 | 25.0% | | AFFO | $1.2 Million | $1.0 Million | 17.5% | | Diluted AFFO Per Share | $0.10 | $0.09 | 11.11% | | Quarterly Dividend | $0.0725/share | $0.0725/share | 0.0% | | Capital Resources (as of June 30) | $25.2 Million | - | - | - Same-store occupancy reached 94.7% as of June 30, 2025, an increase of 170 basis points from 93.0% on June 30, 2024, representing an industry-leading level[4] - Same-store average tenant tenure reached a record 3.4 years as of June 30, 2025, up from 3.3 years on June 30, 2024[4] First Half 2025 Highlights In the first half of 2025, Global Self Storage saw growth in total and net income, strong same-store revenue and NOI performance, significant FFO and AFFO increases, and maintained a semi-annual dividend of $0.145 per share First Half 2025 Key Financial Metrics | Metric | H1 2025 | H1 2024 | Change (%) | | :-------------------------------- | :------------- | :------------- | :------- | | Total Revenue | $6.3 Million | - | 2.9% | | Net Income | $1.2 Million | $858,000 | 39.86% | | Diluted Net Income Per Share | $0.11 | $0.08 | 37.5% | | Same-Store Revenue | $6.3 Million | - | 2.9% | | Same-Store Operating Costs | $2.4 Million | - | -0.6% | | Same-Store Net Operating Income (NOI) | $3.9 Million | - | 5.1% | | FFO | $2.1 Million | - | 17.1% | | Diluted FFO Per Share | $0.18 | - | - | | AFFO | $2.2 Million | - | 17.1% | | Diluted AFFO Per Share | $0.20 | - | - | | Semi-Annual Dividend | $0.145/share | - | - | Company Profile & Strategy Company Objective Global Self Storage aims to increase long-term shareholder value by executing its strategic business plan, including acquisitions and property expansions, with the board regularly reviewing capital formation, debt-to-equity ratios, dividend policy, FFO, AFFO, and cash levels - The company aims to increase long-term shareholder value through acquisitions and expansion projects[6] - The strategic business plan encompasses capital formation, debt-to-equity ratios, dividend policy, capital and debt utilization, FFO and AFFO performance, and optimal cash levels[6] - Management believes the company's sustained operating performance and capital resources position it well to execute its strategic business plan[7] About Global Self Storage Global Self Storage is a self-managed and self-operated REIT focused on owning, operating, managing, acquiring, and redeveloping self-storage properties, with 13 properties across eight US states providing affordable, accessible, and secure storage - Global Self Storage is a self-managed and self-operated REIT focused on owning, operating, managing, acquiring, and redeveloping self-storage properties[35] - The company owns and/or manages 13 self-storage properties across eight US states through its wholly-owned subsidiaries, offering affordable, accessible, and secure storage space[35] Management Insights CEO Commentary CEO Mark C. Winmill highlighted that exceptional Q2 operational performance drove industry-leading growth in same-store revenue, occupancy, NOI, and FFO, attributed to targeted marketing and enhanced brand recognition, achieving high conversion rates and record tenant tenure through customer satisfaction and service excellence, with a robust balance sheet supporting growth strategies in differentiated geographic markets - Q2 operational excellence drove industry-leading growth in same-store revenue, occupancy, NOI, and FFO, attributed to targeted marketing initiatives and enhanced brand recognition[8][10] - The company achieved high customer inquiry conversion rates and a record 3.4-year average tenant tenure through high customer satisfaction (average rating over 4.9/5 stars) and exceptional service[9][10][11] - The company possesses strong capital resources of approximately $25.2 million, supporting its strategic business plan for growth through acquisitions, joint ventures, and expansion in US and non-US markets with limited supply growth and less competition[14] - Markets where the company operates exhibit stable demand and limited new supply pressure, with a differentiated geographic strategy, disciplined acquisition approach, and commitment to superior customer experience continuing to create shareholder value[15] Financial Performance Analysis Q2 2025 Financial Summary In Q2 2025, total revenue grew 2.7% to $3.2 million, driven by increased occupancy and revenue rate management, while total operating expenses decreased 4.4% due to reduced general and administrative costs, leading to a 30.4% increase in operating income to $829,000 and net income rising to $664,000 or $0.06 per share, with capital resources totaling approximately $25.2 million as of June 30 Q2 2025 Financial Summary | Metric | Q2 2025 | Q2 2024 | Change (%) | | :-------------------- | :--------- | :--------- | :------- | | Total Revenue | $3.2 Million | $3.1 Million | 2.7% | | Total Operating Expenses | $2.4 Million | $2.5 Million | -4.4% | | Operating Income | $829,000 | $636,000 | 30.4% | | Net Income | $664,000 | $592,000 | 12.16% | | Diluted Net Income Per Share | $0.06 | $0.05 | 20.0% | | Capital Resources (as of June 30) | $25.2 Million | - | - | Q2 2025 Same-Store Results As of June 30, 2025, the company had 12 same-store properties, with Q2 same-store revenue growing 2.7% to $3.2 million, same-store operating costs slightly increasing 0.7% to $1.18 million, and same-store Net Operating Income (NOI) rising 4.0% to $2.0 million, primarily due to revenue growth, while same-store occupancy improved by 170 basis points to 94.7% and average tenant tenure increased to 3.4 years Q2 2025 Same-Store Key Metrics | Metric | Q2 2025 | Q2 2024 | Change (%) | | :----------------------------------- | :--------- | :--------- | :------- | | Same-Store Revenue | $3.2 Million | - | 2.7% | | Same-Store Operating Costs | $1.18 Million | $1.17 Million | 0.7% | | Same-Store Net Operating Income (NOI) | $2.0 Million | $1.9 Million | 4.0% | | Same-Store Occupancy (as of June 30) | 94.7% | 93.0% | +170 bps | | Same-Store Average Tenant Tenure (as of June 30) | 3.4 Years | 3.3 Years | +0.1 Years | | Number of Same-Store Properties (as of June 30) | 12 | - | - | Q2 2025 Operating Results Net income for Q2 2025 was $664,000, or $0.06 per diluted share, with property operating expenses slightly increasing to $1.18 million, general and administrative expenses decreasing to $779,000, and business development costs at zero, while interest expense rose to $214,000 primarily due to unused revolving credit facility fees, and FFO grew 18.9% to $1.1 million ($0.10 per diluted share) and AFFO increased 17.5% to $1.2 million ($0.10 per diluted share) Q2 2025 Operating Results | Metric | Q2 2025 | Q2 2024 | Change (%) | | :-------------------- | :--------- | :--------- | :------- | | Net Income | $664,000 | $592,000 | 12.16% | | Diluted Net Income Per Share | $0.06 | $0.05 | 20.0% | | Property Operating Expenses | $1.18 Million | $1.17 Million | 0.85% | | General and Administrative Expenses | $779,000 | $893,000 | -12.77% | | Business Development Costs | $0 | $0 | 0.0% | | Interest Expense | $214,000 | $211,000 | 1.42% | | FFO | $1.1 Million | $0.9 Million | 18.9% | | Diluted FFO Per Share | $0.10 | $0.08 | 25.0% | | AFFO | $1.2 Million | $1.0 Million | 17.5% | | Diluted AFFO Per Share | $0.10 | $0.09 | 11.11% | First Half 2025 Financial Summary In the first half of 2025, total revenue increased 2.9% to $6.3 million, driven by higher occupancy and existing tenant rate management, while total operating expenses decreased 3.0% to $4.8 million due to reduced store-level and general and administrative costs, resulting in a 26.5% increase in operating income to $1.6 million and net income rising to $1.2 million or $0.11 per diluted share First Half 2025 Financial Summary | Metric | H1 2025 | H1 2024 | Change (%) | | :-------------------- | :------------- | :------------- | :------- | | Total Revenue | $6.3 Million | $6.1 Million | 2.9% | | Total Operating Expenses | $4.8 Million | $4.9 Million | -3.0% | | Operating Income | $1.6 Million | $1.2 Million | 26.5% | | Net Income | $1.2 Million | $0.9 Million | 33.33% | | Diluted Net Income Per Share | $0.11 | $0.08 | 37.5% | First Half 2025 Same-Store Results In the first half of 2025, same-store revenue grew 2.9% to $6.3 million, primarily due to increased occupancy and existing tenant rate management, while same-store operating costs decreased 0.6% to $2.39 million, mainly due to reduced employment costs and real estate taxes, leading to a 5.1% increase in same-store Net Operating Income (NOI) to $3.9 million, driven by revenue growth First Half 2025 Same-Store Key Metrics | Metric | H1 2025 | H1 2024 | Change (%) | | :----------------------------------- | :------------- | :------------- | :------- | | Same-Store Revenue | $6.3 Million | $6.1 Million | 2.9% | | Same-Store Operating Costs | $2.39 Million | $2.40 Million | -0.6% | | Same-Store Net Operating Income (NOI) | $3.9 Million | $3.7 Million | 5.1% | First Half 2025 Operating Results Net income for the first half of 2025 was $1.2 million, or $0.11 per diluted share, with property operating expenses decreasing to $2.39 million, general and administrative expenses decreasing to $1.6 million, and business development costs falling to zero, while interest expense rose to $438,000 primarily due to unused revolving credit facility fees, and FFO grew 17.1% to $2.1 million ($0.18 per diluted share) and AFFO increased 17.1% to $2.2 million ($0.20 per diluted share) First Half 2025 Operating Results | Metric | H1 2025 | H1 2024 | Change (%) | | :-------------------- | :------------- | :------------- | :------- | | Net Income | $1.2 Million | $0.9 Million | 33.33% | | Diluted Net Income Per Share | $0.11 | $0.08 | 37.5% | | Property Operating Expenses | $2.39 Million | $2.40 Million | -0.42% | | General and Administrative Expenses | $1.6 Million | $1.7 Million | -5.88% | | Business Development Costs | $0 | $2,275 | -100.0% | | Interest Expense | $438,000 | $416,000 | 5.29% | | FFO | $2.1 Million | $1.8 Million | 17.1% | | Diluted FFO Per Share | $0.18 | $0.16 | 12.5% | | AFFO | $2.2 Million | $1.9 Million | 17.1% | | Diluted AFFO Per Share | $0.20 | $0.17 | 17.65% | FFO and AFFO Performance In Q2 2025, FFO attributable to common shareholders was $1.1 million ($0.10 per diluted share) and AFFO was $1.17 million ($0.10 per diluted share), while for the first half of 2025, FFO was $2.07 million ($0.18 per diluted share) and AFFO was $2.24 million ($0.20 per diluted share) FFO and AFFO Performance (Unaudited) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :----------------------------------- | :--------- | :--------- | :------------- | :------------- | | Net Income | $664,216 | $591,530 | $1,219,368 | $857,680 | | FFO Attributable to Common Shareholders | $1,095,380 | $921,136 | $2,070,723 | $1,769,092 | | AFFO Attributable to Common Shareholders | $1,167,598 | $994,061 | $2,243,677 | $1,915,296 | | Diluted FFO Per Share | $0.10 | $0.08 | $0.18 | $0.16 | | Diluted AFFO Per Share | $0.10 | $0.09 | $0.20 | $0.17 | | Diluted Weighted Average Shares Outstanding | 11,250,678 | 11,134,894 | 11,212,867 | 11,121,296 | Consolidated Financial Statements Consolidated Balance Sheets As of June 30, 2025, total assets were $64.996 million, slightly down from $65.515 million on December 31, 2024, with a decrease in net real estate assets but an increase in cash and restricted cash, while total liabilities were $17.807 million and total stockholders' equity was $47.189 million Consolidated Balance Sheets (Unaudited) | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------- | :------------- | :--------------- | | Assets | | | | Real Estate Assets, Net | $53,217,941 | $53,925,409 | | Cash and Cash Equivalents | $7,511,571 | $7,180,857 | | Restricted Cash | $67,773 | $29,204 | | Investment Securities | $2,572,195 | $2,608,987 | | Total Assets | $64,996,100 | $65,515,024 | | Liabilities and Equity | | | | Notes Payable, Net | $16,074,555 | $16,356,582 | | Accounts Payable and Accrued Expenses | $1,732,281 | $1,720,765 | | Total Liabilities | $17,806,836 | $18,077,347 | | Common Stock | $113,382 | $112,927 | | Additional Paid-in Capital | $49,732,485 | $49,559,986 | | Accumulated Deficit | ($2,656,603) | ($2,235,236) | | Total Stockholders' Equity | $47,189,264 | $47,437,677 | | Total Liabilities and Stockholders' Equity | $64,996,100 | $65,515,024 | Consolidated Statements of Operations and Comprehensive Income In Q2 2025, total revenue was $3.194 million, operating income was $829,000, and net income was $664,000, while for the first half of 2025, total revenue was $6.321 million, operating income was $1.553 million, and net income was $1.219 million, showing improvements across various income and operating metrics compared to the prior year Consolidated Statements of Operations and Comprehensive Income (Unaudited) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :----------------------------------- | :--------- | :--------- | :------------- | :------------- | | Rental Income | $3,062,588 | $2,983,039 | $6,062,640 | $5,896,500 | | Other Property Related Income | $113,008 | $108,489 | $220,878 | $212,339 | | Management Fees and Other Income | $18,782 | $17,510 | $37,164 | $34,239 | | Total Revenue | $3,194,378 | $3,109,038 | $6,320,682 | $6,143,078 | | Property Operating Expenses | $1,179,041 | $1,171,169 | $2,387,940 | $2,402,285 | | General and Administrative Expenses | $778,695 | $892,822 | $1,565,587 | $1,695,550 | | Depreciation and Amortization | $407,717 | $409,136 | $814,563 | $816,064 | | Business Development | $0 | $0 | $0 | $2,275 | | Total Expenses | $2,365,453 | $2,473,127 | $4,768,090 | $4,916,174 | | Operating Income | $828,925 | $635,911 | $1,552,592 | $1,226,904 | | Dividend and Interest Income | $73,130 | $87,450 | $141,729 | $142,327 | | Unrealized (Loss) Gain on Marketable Equity Securities | ($23,447) | $79,530 | ($36,792) | ($95,348) | | Interest Expense | ($214,392) | ($211,361) | ($438,161) | ($416,203) | | Net Income and Comprehensive Income | $664,216 | $591,530 | $1,219,368 | $857,680 | | Diluted Earnings Per Share | $0.06 | $0.05 | $0.11 | $0.08 | Reconciliation of GAAP Net Income to Same-Store Net Operating Income This reconciliation adjusts GAAP net income to same-store Net Operating Income (NOI) by adding back management fees, general and administrative expenses, depreciation and amortization, business development costs, and interest expense, while subtracting dividend and interest income and adjusting for unrealized gains/losses on marketable equity securities, resulting in same-store NOI of $1.997 million for Q2 2025 and $3.896 million for the first half Reconciliation of GAAP Net Income to Same-Store Net Operating Income (Unaudited) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :----------------------------------- | :--------- | :--------- | :------------- | :------------- | | Net Income | $664,216 | $591,530 | $1,219,368 | $857,680 | | Adjustments: | | | | | | Management Fees and Other Income | ($18,782) | ($17,510) | ($37,164) | ($34,239) | | General and Administrative Expenses | $778,695 | $892,822 | $1,565,587 | $1,695,550 | | Depreciation and Amortization | $407,717 | $409,136 | $814,563 | $816,064 | | Business Development | $0 | $0 | $0 | $2,275 | | Dividend and Interest | ($73,130) | ($87,450) | ($141,729) | ($142,327) | | Unrealized Loss (Gain) on Marketable Equity Securities | $23,447 | ($79,530) | $36,792 | $95,348 | | Interest Expense | $214,392 | $211,361 | $438,161 | $416,203 | | Total Same-Store Net Operating Income | $1,996,555 | $1,920,359 | $3,895,578 | $3,706,554 | | Same-Store Revenue | $3,175,596 | $3,091,528 | $6,283,518 | $6,108,839 | | Same-Store Operating Costs | $1,179,041 | $1,171,169 | $2,387,940 | $2,402,285 | | Total Same-Store Net Operating Income | $1,996,555 | $1,920,359 | $3,895,578 | $3,706,554 | Non-GAAP Financial Measures Funds from Operations (FFO) FFO, a non-GAAP metric defined by NAREIT, is considered useful by REITs and analysts for measuring REIT performance, calculated by adding back real estate depreciation and amortization to net income and excluding gains/losses from property sales and unrealized gains/losses on marketable equity securities, but it is not a substitute for net income, EPS, liquidity, or dividend-paying ability, and may vary among REITs - FFO, a non-GAAP metric defined by NAREIT, is calculated by adding back real estate depreciation and amortization to net income and excluding gains/losses from property sales and unrealized gains/losses on marketable equity securities[37] - FFO is considered a useful metric by REITs and analysts for measuring REIT performance, but it is not a substitute for net income, EPS, liquidity, or the ability to pay dividends[37] Adjusted FFO (AFFO) AFFO is a non-GAAP adjustment to FFO that excludes equity-based compensation, business development, financing and acquisition-related costs, and non-recurring items, which are considered not representative of the company's ongoing operating results, and it is not a substitute for net income, EPS, liquidity, or dividend-paying ability, and may vary among REITs - AFFO is a non-GAAP adjustment to FFO, excluding equity-based compensation, business development, financing and acquisition-related costs, and non-recurring items[39] - The company believes AFFO aids in understanding operating results by excluding items not representative of ongoing operations, and it is considered by the analyst community in evaluating the company[39] Net Operating Income (NOI) NOI is a key metric for operating performance, defined as net store-level income before general and administrative expenses, interest, taxes, depreciation, and amortization, used by the company for capital allocation, store valuation, performance assessment, and period/market comparisons, but it is not a substitute for net income, net cash flow from operations, or other GAAP financial measures - NOI is defined as net store-level income before general and administrative expenses, interest, taxes, depreciation, and amortization[40] - The company uses NOI for capital allocation, store valuation, performance assessment, and period and market comparisons, and the investment community also uses it to evaluate operating performance and real estate value[40] Same-Store Self Storage Operations Definition The same-store portfolio includes properties consistently owned and operated throughout the reporting period, considered stabilized with market-representative occupancy for at least one year and free from significant damage or redevelopment, with same-store results aiding investors in evaluating store-level operational performance by excluding the impact of acquisitions, dispositions, or new developments, but not serving as an indicator of future performance - The same-store portfolio includes properties consistently owned and operated throughout the reporting period, considered stabilized with market-representative occupancy for at least one year and free from significant damage or redevelopment[42] - Same-store results help investors evaluate store-level operational performance by excluding the impact of acquisitions, dispositions, or new developments, but they are not indicative of future same-store or overall company performance[42] Legal & Contact Information Additional Information Further details on the company's Q2 2025 performance, including financial statements and related notes, are available in its Form 10-Q filing with the SEC and on the company's investor relations website - Detailed information on the company's Q2 2025 performance is available in its Form 10-Q filing and on the company's investor relations website[34] Cautionary Note Regarding Forward Looking Statements This press release contains forward-looking statements as defined by federal securities laws, concerning company plans, objectives, future events, and performance, which are not historical facts and involve known and unknown risks, uncertainties, and other factors that could cause actual results to differ materially from expectations, with no obligation to publicly update or revise such statements, and dividend amounts, nature, and frequency are subject to change - This press release contains forward-looking statements, including non-historical information regarding company plans, objectives, future events, and performance[44] - Forward-looking statements involve known and unknown risks, uncertainties, and other factors that could cause actual results to differ materially from expectations[44] - The company undertakes no obligation to publicly update or revise forward-looking statements, and dividend amounts, nature, and frequency are subject to change at any time[44] Company Contact Contact information is provided for Global Self Storage CFO Thomas O'Malley and Investor Relations contact Ron Both, including phone numbers and email - Company contacts include CFO Thomas O'Malley at (212) 785-0900, ext. 267, and Investor Relations contact Ron Both (Encore Investor Relations) at (949) 432-7557[45]