Global Self Storage(US:SELF) ZACKSยท2025-08-13 17:56Core Viewpoint - Global Self Storage, Inc. (SELF) reported a mixed performance in its second quarter of 2025, with revenue growth but underperformance compared to the S&P 500 Index [1][2]. Financial Performance - Total revenues for the second quarter of 2025 reached $3.2 million, a 2.7% increase from $3.1 million in the same period last year [2]. - Net income rose to $0.7 million, or $0.06 per diluted share, reflecting a 12.3% increase from $0.6 million, or $0.05 per diluted share, in the prior year [2]. - Funds from operations (FFO) increased by 18.9% year over year to $1.1 million, or $0.10 per diluted share, compared to $0.9 million, or $0.08 per diluted share, in the previous year [2]. - Adjusted FFO (AFFO) also rose 17.5% to $1.2 million, or $0.10 per diluted share, from $0.9 million, or $0.09 per diluted share, in the year-ago quarter [2]. Operational Metrics - Same-store revenues increased by 2.7% to $3.2 million, driven by higher occupancy rates [3]. - Same-store net operating income (NOI) improved by 3.9% to $1.99 million from $1.92 million [3]. - Same-store occupancy rose by 170 basis points year over year to 94.7% from 93% [3]. - The average tenant duration reached a record-high of 3.4 years compared to 3.3 years as of June 30, 2024 [3]. Cost Management - Operating expenses decreased by 4.4% year over year to $2.4 million, primarily due to a 12.8% reduction in general and administrative costs [4]. - Property operations expenses increased slightly by 0.7% to $1.18 million [4]. - Interest expense rose marginally by 1.4% to $214,392 [4]. Capital Resources - As of June 30, 2025, total capital resources amounted to $25.2 million, including $7.6 million in cash and cash equivalents, $2.6 million in marketable securities, and full availability under a $15 million revolving credit facility [5]. Management Insights - The CEO attributed growth to targeted marketing and brand recognition, leading to improved same-store revenues, occupancy, NOI, and FFO [6]. - High tenant satisfaction, with an average customer rating exceeding 4.9 out of 5 stars, was noted as a key driver for referrals and brand loyalty [6]. - The company maintains a strong balance sheet and focuses on markets with limited supply growth and lower competition [6]. Revenue Drivers - Revenue growth was primarily driven by higher occupancy rates and a proprietary revenue rate management program [7]. - Expense reductions in general and administrative categories contributed to a 30.4% increase in operating income [7]. - The company maintained pricing discipline while attracting long-term tenants through targeted marketing efforts [7]. Future Outlook - While no explicit forward-looking financial guidance was provided, management indicated that move-in rates were stabilizing and demand remained steady in operating markets [8]. - The strategic focus continues to be on acquisitions, joint ventures, and expansions in markets with favorable supply-demand dynamics [8]. Portfolio Overview - As of June 30, 2025, the portfolio consisted of 12 same-store properties and the management of one third-party-owned property, with no non-same-store assets reported [9].