Global Self Storage Stock Up Post Q3 Earnings, Occupancy Solid

Core Viewpoint - Global Self Storage, Inc. reported modest revenue growth but significant declines in earnings for the third quarter of 2025, highlighting a mix of record revenues and increased operational costs [2][10]. Financial Performance - Total revenues for Q3 2025 increased by 0.8% to $3.23 million from $3.20 million, primarily due to higher occupancy and effective revenue rate management [2]. - Net income fell by 58% to $0.5 million, or $0.04 per diluted share, compared to $1.2 million, or $0.10 per diluted share, in the same quarter last year [2]. - Funds from operations (FFO) decreased by 8% to $1 million, or $0.09 per diluted share, while adjusted FFO (AFFO) declined by 6% to $1.1 million, or $0.10 per diluted share [3]. Operational Metrics - Same-store revenues rose by 0.8% to a record $3.21 million, while same-store costs of operations increased by 7.4% to $1.24 million, resulting in a 2.9% decline in same-store net operating income (NOI) to $1.9 million [4]. - Same-store occupancy increased by 170 basis points year over year to 93.2%, with the average tenant duration reaching a record 3.5 years [5]. Year-to-Date Performance - For the first nine months of 2025, total revenues grew by 2.2% year over year to a record $9.5 million, with same-store NOI rising by 2.2% to a record $5.9 million [6]. - FFO increased by 7.5% to $3.1 million, or $0.27 per diluted share, and AFFO rose by 8.4% to $3.3 million, or $0.30 per diluted share [7]. Dividend and Capital Resources - The quarterly dividend was maintained at $0.0725 per share, corresponding to an annualized rate of $0.29 per share, with AFFO covering the dividend [8]. - Capital resources totaled approximately $24.8 million, including $7.5 million in cash and cash equivalents, $2.5 million in marketable securities, and $14.8 million available under the revolving credit facility [9]. Management Commentary - Management characterized the quarter as a blend of record revenues and sector-leading occupancy gains, despite higher costs [10]. - The company emphasized its focus on high-quality, long-term tenants in markets with limited new supply and less professional competition [10]. Strategic Initiatives - Global Self Storage is evaluating acquisition and development opportunities but did not close any during the quarter [16]. - The company maintained access to external growth capital through an at-the-market equity program, allowing it to issue up to $15 million of common stock [17].