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

Statement on Forward-Looking Information This statement outlines forward-looking information, subject to risks and uncertainties that may cause actual results to differ materially - This report contains forward-looking statements regarding the company's plans, strategies, and future performance. These statements are based on current expectations and are subject to various risks and uncertainties that could cause actual results to differ materially[9] - Key risks and uncertainties identified include those associated with real estate ownership (demand changes, environmental liability), economic downturns, competition, acquisition integration, redevelopment projects, litigation, regulatory changes, maintaining REIT status, financing, and general market volatility[11][12] PART I – FINANCIAL INFORMATION Item 1. Financial Statements (Unaudited) This section presents the unaudited consolidated financial statements, including balance sheets, statements of operations, stockholders' equity, and cash flows, with detailed accounting policy notes Consolidated Balance Sheets Consolidated Balance Sheet Summary (as of June 30, 2025) | Metric | June 30, 2025 ($) | December 31, 2024 ($) | | :--- | :--- | :--- | | Total Assets | $64,996,100 | $65,515,024 | | Real estate assets, net | $53,217,941 | $53,925,409 | | Cash and cash equivalents | $7,511,571 | $7,180,857 | | Total Liabilities | $17,806,836 | $18,077,347 | | Note payable, net | $16,074,555 | $16,356,582 | | Total Stockholders' Equity | $47,189,264 | $47,437,677 | Consolidated Statements of Operations and Comprehensive Income Statement of Operations Summary | Metric | Three Months Ended June 30, 2025 ($) | Three Months Ended June 30, 2024 ($) | Six Months Ended June 30, 2025 ($) | Six Months Ended June 30, 2024 ($) | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $3,194,378 | $3,109,038 | $6,320,682 | $6,143,078 | | Operating Income | $828,925 | $635,911 | $1,552,592 | $1,226,904 | | Net Income | $664,216 | $591,530 | $1,219,368 | $857,680 | | Diluted EPS | $0.06 | $0.05 | $0.11 | $0.08 | Consolidated Statements of Cash Flows Cash Flow Summary (Six Months Ended June 30) | Metric | 2025 ($) | 2024 ($) | | :--- | :--- | :--- | | Net cash provided by operating activities | $2,411,472 | $2,044,481 | | Net cash used in investing activities | ($107,095) | ($62,440) | | Net cash used in financing activities | ($1,935,094) | ($1,908,744) | | Net increase in cash | $369,283 | $73,297 | Notes to Consolidated Financial Statements These notes detail the company's organization as a self-storage REIT, accounting policies, real estate assets, debt instruments, and related party transactions, including its term loan and undrawn revolving credit facility - The company is a self-administered Maryland REIT that owns, operates, and manages thirteen self-storage properties in eight states as of June 30, 2025[28] - The company has a $20 million term loan with a fixed interest rate of 4.192% per annum, maturing on July 1, 2036. As of June 30, 2025, the outstanding principal balance was approximately $16.4 million[68][73] - A revolving line of credit allows borrowing up to $15 million, maturing on July 6, 2027. There was no outstanding balance as of June 30, 2025[74][77] - For the three and six months ended June 30, 2025, the company declared and paid dividends of $0.0725 and $0.1450 per share, respectively, consistent with the prior year[83] Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses financial performance, noting increased revenues, operating income, and Net Operating Income (NOI) for Q2 2025, alongside growth in non-GAAP measures like FFO and AFFO Financial Condition and Liquidity The company's financing strategy aims to maximize stockholder returns, with $25.2 million in capital resources as of June 30, 2025, for acquisitions and growth - The company has total capital resources of approximately $25.2 million, consisting of $7.6 million in cash, $2.6 million in marketable securities, and $15 million available under its credit facility[120] - On July 6, 2024, the company amended its revolving credit facility, which provides for borrowing up to $15 million and matures in July 2027. As of June 30, 2025, no proceeds were withdrawn[115] - The company manages one third-party owned property in Edmond, Oklahoma, under its Global MaxManagement platform, which serves as a source for potential future acquisitions[118] Results of Operations Q2 2025 saw total revenues increase by 2.7% to $3.2 million, operating income rise by 30.4% to $829k, and net income grow to $664k Q2 2025 vs Q2 2024 Performance | Metric | Q2 2025 ($) | Q2 2024 ($) | % Change | | :--- | :--- | :--- | :--- | | Total Revenues | $3,194,378 | $3,109,038 | 2.7% | | Total Operating Expenses | $2,365,453 | $2,473,127 | -4.4% | | Operating Income | $828,925 | $635,911 | 30.4% | | Net Income | $664,216 | $591,530 | 12.3% | Six Months 2025 vs 2024 Performance | Metric | H1 2025 ($) | H1 2024 ($) | % Change | | :--- | :--- | :--- | :--- | | Total Revenues | $6,320,682 | $6,143,078 | 2.9% | | Total Operating Expenses | $4,768,090 | $4,916,174 | -3.0% | | Operating Income | $1,552,592 | $1,226,904 | 26.5% | | Net Income | $1,219,368 | $857,680 | 42.2% | Non-GAAP Financial Measures The company utilizes non-GAAP measures, with Q2 2025 FFO increasing 18.9% to $1.1 million and AFFO rising 17.5% to $1.17 million FFO and AFFO Reconciliation (Three Months Ended June 30) | Metric | 2025 ($) | 2024 ($) | % Change | | :--- | :--- | :--- | :--- | | Net Income | $664,216 | $591,530 | 12.3% | | FFO | $1,095,380 | $921,136 | 18.9% | | AFFO | $1,167,598 | $994,061 | 17.5% | | Diluted FFO per share | $0.10 | $0.08 | 25.0% | | Diluted AFFO per share | $0.10 | $0.09 | 11.1% | Same-Store Self Storage Operations The twelve-property same-store portfolio showed strong performance, with Q2 2025 revenues up 2.7%, costs up 0.7%, and NOI increasing 4.0% - Same-store occupancy increased by 1.7 percentage points to 94.7% at June 30, 2025, from 93.0% at June 30, 2024[156] Same-Store Performance vs. Prior Year | Metric | Three Months Ended June 30, 2025 | Six Months Ended June 30, 2025 | | :--- | :--- | :--- | | Revenue Change | +2.7% | +2.9% | | Cost of Operations Change | +0.7% | -0.6% | | NOI Change | +4.0% | +5.1% | Item 3. Quantitative and Qualitative Disclosures About Market Risk As a smaller reporting company, the company is exempt from providing market risk disclosures - As a smaller reporting company, Global Self Storage, Inc. is exempt from providing quantitative and qualitative disclosures about market risk[196] Item 4. Controls and Procedures Management confirmed the effectiveness of disclosure controls and procedures, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of June 30, 2025[200] - No changes occurred during the most recent quarter that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[201] PART II – OTHER INFORMATION Item 1. Legal Proceedings The company reports no material pending legal proceedings as of the reporting date - As of the reporting date, the company is not a party to any material pending legal proceedings[204] Item 1A. Risk Factors No material changes to risk factors have occurred since the 2024 Annual Report on Form 10-K - The company refers to the risk factors disclosed in its 2024 Form 10-K, stating there are no material changes[205] Other Items (Items 2, 3, 4, 5, 6) This section confirms no unregistered equity sales, senior security defaults, mine safety disclosures, or Rule 10b5-1 trading arrangement modifications by directors or officers - Items 2 (Unregistered Sales of Equity Securities), 3 (Defaults Upon Senior Securities), and 4 (Mine Safety Disclosures) are not applicable[206] - No directors or officers adopted, terminated, or modified a Rule 10b5-1 trading arrangement during the three months ended June 30, 2025[207]