Global Self Storage(US:SELF)2025-11-07 21:00Company Operations - As of September 30, 2025, the company owned and operated thirteen self-storage properties across multiple states, including Connecticut, Illinois, and New York[105]. - The company managed one third-party owned property with 137,318 leasable square feet as of September 30, 2025[120]. - The company operates a total of 7,042 owned and managed stores with an average occupancy of 93.6%[154]. - Same-store occupancy increased by 1.7% to 93.2% as of September 30, 2025, compared to 91.5% in 2024[160]. - The overall square foot occupancy at period end was 93.2%, reflecting a 1.9% increase from the previous year[165]. - The net leased square footage at period end increased by 1.6% to 772,660 square feet compared to the previous year[165]. - As of September 30, 2025, the average tenant duration of stay was approximately 3.5 years, an increase from 3.4 years as of September 30, 2024[173]. Financial Performance - Total revenues increased by 0.8% from $3,200,276 in Q3 2024 to $3,225,671 in Q3 2025, with rental income rising by 0.9% from $3,070,871 to $3,099,499[124]. - Operating income decreased by 16.6% from $873,090 in Q3 2024 to $728,430 in Q3 2025[130]. - Net income for Q3 2025 was $496,259, or $0.04 per fully diluted share, down from $1,181,657, or $0.10 per fully diluted share in Q3 2024[133]. - Total revenues for the nine months ended September 30, 2025 increased by 2.2% to $9,546,353 from $9,343,354 in the same period of 2024[135]. - Operating income for the nine months ended September 30, 2025 increased by 8.6% to $2,281,023 from $2,099,994 in the same period of 2024[142]. Expenses and Costs - Operating expenses rose by 7.3% from $2,327,186 in Q3 2024 to $2,497,241 in Q3 2025, primarily due to increased store operating expenses and one-time general and administrative expenses[127]. - Business development costs surged from $2,012 in Q3 2024 to $22,286 in Q3 2025, reflecting increased activity in capital raising and potential acquisitions[129]. - Employment costs increased by 9.5%, or $32,831, for the three months ended September 30, 2025, primarily due to timing in routine employee hiring and departures[175]. - Administrative expenses rose by 25.5%, or $53,293, for the three months ended September 30, 2025, driven by increased utility and repair costs[177]. - Utilities expenses increased by 55.8%, or $34,631, for the three months ended September 30, 2025, influenced by energy prices and usage levels[179]. Financing and Capital Resources - The company raised approximately $6.7 million through a rights offering by selling 1,601,291 shares at a subscription price of $4.18 per share on December 18, 2019[111]. - On June 25, 2021, the company completed a public offering, raising approximately $6.9 million by selling 1,289,720 shares at a price of $5.35 per share[113]. - The company entered into a second amendment to its credit facility on July 6, 2024, allowing borrowing of up to $15 million, with an effective interest rate of approximately 7.3% as of September 30, 2025[117]. - The company has capital resources totaling approximately $24.8 million, including $7.5 million in cash and $14.8 million available for withdrawal under the credit facility[122]. - The company has a financing strategy focused on minimizing capital costs to maximize returns for stockholders[108]. Market and Securities - The closing market price as of September 30, 2025 was $5.03, down from $5.21 on September 30, 2024[134]. - As of September 30, 2025, the cumulative unrealized gain on marketable equity securities was $1,718,003, with unrealized losses of $98,704 and $135,497 for the three and nine months ended September 30, 2025, respectively[195]. - There were no realized gains or losses for the nine months ended September 30, 2025[195]. - The One Big Beautiful Bill Act (OBBB) enacted on July 4, 2025, relaxed the REIT asset test requirement, allowing up to 25% of a REIT's assets to be represented by securities of taxable REIT subsidiaries, increased from 20%[197]. Strategic Initiatives - The company plans to strategically withdraw proceeds from the second amended credit facility to fund acquisitions and expansions of self-storage properties[117]. - The company is actively reviewing store and portfolio acquisition candidates while also working on redeveloping and expanding current stores[189]. - The Millbrook, NY expansion added approximately 11,800 leasable square feet, with total area occupancy increasing from approximately 88.6% to 95.4% by June 30, 2021[190]. - The McCordsville, IN property conversion resulted in a new total of 535 units and 76,360 leasable square feet, with occupancy increasing from approximately 79.1% to 94.7% by June 30, 2021[191]. - In 2021, the Lima, OH property converted approximately 3,000 leasable square feet, resulting in a total of 756 units and 96,883 leasable square feet with an occupancy rate of approximately 94.8%[193]. - In January 2023, the Lima, OH property completed a conversion of approximately 2,500 leasable square feet, leading to a total of 767 units and 94,928 leasable square feet, with an occupancy rate of approximately 91.1%[194]. Performance Metrics - Same-store revenues rose by 0.8% ($24,921) for the three months and by 2.1% ($199,600) for the nine months ended September 30, 2025, versus the same periods in 2024[167]. - Same-store cost of operations increased by 7.4% for the three months and by 2.0% for the nine months ended September 30, 2025, compared to the same periods in 2024[160]. - Same-store net operating income (NOI) decreased by 3.0% for the three months but increased by 2.2% for the nine months ended September 30, 2025[160]. - The total annualized revenue per leased square foot was $16.60 for the three months ended September 30, 2025, a decrease of 0.8% from the previous year[163]. - The company attributes performance improvements to digital marketing initiatives and customer service efforts, enhancing local brand loyalty[161]. - FFO decreased by 8.0%, or $87,335, for the three months ended September 30, 2025, while it increased by 7.5%, or $214,297, for the nine months ended September 30, 2025[187]. - AFFO decreased by 6.0%, or $70,320, for the three months ended September 30, 2025, but increased by 8.4%, or $258,062, for the nine months ended September 30, 2025[188].