World Self Storage Experiences File Second Quarter 2022 Outcomes

Sturdy Pricing Energy, Operational Excellence and Trade Power Continued to Drive File Revenues and Web Working Earnings, and Robust FFO and AFFO Progress Price

MILLBROOK, NY / ACCESSWIRE / August 10, 2022 / World Self Storage, Inc. (NASDAQ:SELF), an actual property funding belief that owns, operates, manages, acquires, and redevelops self-storage properties, reported outcomes for the second quarter ended June 30, 2022. All comparisons are to the identical year-ago interval until in any other case famous.

Q2 2022 Highlights

Whole revenues elevated 15.7% to report $3.0 million.Working earnings elevated 41.6% to $899,000.Web earnings totaled $404,000 or $0.04 per diluted share.Funds from operations (FFO) elevated 43% to $1.1 million or $0.10 per diluted share (see definition of this and different non-GAAP measures and their reconciliation to GAAP, beneath).Adjusted FFO (AFFO), a non-GAAP time period, elevated 41.6% to $1.2 million or $0.11 per diluted share.Similar-store revenues elevated 15.7% to a report $3.0 million.Similar-store internet working earnings (NOI),a non-GAAP time period, elevated 18.7% to a report $2.0 million.Similar-store occupancy at June 30, 2022 decreased to 93.1% from 95.7% at June 30, 2021, as the corporate optimized rental income below its income charge administration program.Similar-store common tenant length of keep at June 30, 2022 was roughly 3.2 years, up from roughly 2.8 years as of June 30, 2021.Maintained quarterly dividend of $0.065 per share.Capital sources at June 30, 2022 totaled roughly $22.9 million. This was comprised of $5.3 million in money, money equivalents and restricted money, $2.7 million in marketable securities, and $15 million out there below a credit score facility.

First Half 2022 Highlights

Whole revenues elevated 15.6% to report $5.8 million.Working earnings elevated 43.2% to $1.6 million.Web earnings totaled $687,000 or $0.06 per diluted share.FFO elevated 46.8% to $2.0 million or $0.19 per diluted share (see definition of this and different non-GAAP measures and their reconciliation to GAAP, beneath).AFFO, a non-GAAP time period, elevated 46.9% to $2.2 million or $0.20 per diluted share.Similar-store revenues elevated 15.7% to a report $5.8 million.Similar-store NOI, a non-GAAP time period, elevated 20.3% to a report $3.7 million.Similar-store occupancy at June 30, 2022 decreased to 93.1% from 95.7% at June 30, 2021, as the corporate optimized rental income below its income charge administration program.Similar-store common tenant length of keep at June 30, 2022 was roughly 3.2 years, up from roughly 2.8 years as of June 30, 2021.

Dividend Enhance

On August 2, 2022, the corporate elevated its dividend by 11.5% and declared a dividend of $0.0725 per widespread share for the third quarter of 2022. The quarterly distribution represents an annualized dividend charge of $0.29 per share, a rise of $0.03 per share from the earlier annual charge of $0.26 per share. The dividend is payable on September 30, 2022 to stockholders of report as of September 16, 2022.

Administration Commentary

“In Q2, we achieved one other quarter of report same-store revenues and NOI whereas persevering with to successfully management prices,” acknowledged World Self Storage president and CEO, Mark C. Winmill. “We additionally continued to profit from our income charge administration program which dynamically manages move-in charges and present tenant lease will increase. It has enabled us to take care of a hedge towards inflation attributable to our means to shortly adapt our pricing to market circumstances on our month-to-month leases.

“Our sturdy pricing energy, operational excellence and income charge administration program has pushed sturdy money move, and this has allowed us to extend our dividend for widespread stockholders by 11.5%.

“Our out there capital sources totaled roughly $22.9 million at quarter finish, which positions us nicely to pursue quite a lot of potential progress alternatives, resembling acquisitions, both as wholly owned or joint ventures. We proceed to judge potential acquisitions of self storage properties in secondary and tertiary markets, the place we count on decrease provide progress and usually much less competitors from different professionally managed self-storage suppliers.

“The target of the corporate is to extend worth over time for the advantage of its stockholders. We are going to proceed to execute our strategic marketing strategy, which incorporates funding acquisitions, both straight or via joint ventures, and growth tasks at our present properties. Our board of administrators repeatedly evaluations our strategic marketing strategy, together with subjects and metrices like capital formation, debt versus fairness ratios, dividend coverage, use of capital and debt, FFO and AFFO efficiency, and optimum money ranges.

“Trying forward, we consider that our emphasis on safe, clear, high-quality properties will proceed to attract prime quality tenants and generate engaging returns for our stockholders.”

Q2 2022 Monetary Abstract

Whole revenues elevated 15.7% to $3.0 million within the second quarter of 2022, as in comparison with $2.6 million in the identical interval final yr. This improve was due primarily to a rise in rental charges.

Whole working bills within the second quarter of 2022 elevated 7.2% to $2.1 million, as in comparison with $1.9 million in the identical interval final yr. The rise was primarily attributable to a rise in retailer working bills, together with utilities, repairs and upkeep, and actual property property taxes.

Working earnings elevated 41.6% to $899,000 within the second quarter of 2022, as in comparison with $635,000 in the identical interval final yr.

Web earnings was $404,000 or $0.04 per diluted share within the second quarter of 2022, as in comparison with $861,000 or $0.09 per diluted share in the identical interval final yr.

As of June 30, 2022, the corporate’s capital sources totaled roughly $22.9 million, comprised of $5.3 million in money, money equivalents and restricted money, $2.7 million of marketable securities, and $15.0 million out there for withdrawal below the corporate’s revolving credit score facility.

Q2 2022 Similar-Retailer Outcomes

As of June 30, 2022, the corporate owned 12 same-store properties and no non-same-store properties, and managed one third-party owned property.

For the second quarter of 2022, same-store revenues elevated 15.7% to $3.0 million in comparison with $2.6 million in the identical interval final yr. This improve was due primarily to constant lease collections and elevated rental charges.

Similar-store price of operations within the second quarter elevated 10.2% to $989,000 in comparison with $897,000 in the identical interval final yr. This improve in same-store price of operations was due primarily to elevated bills for utilities, repairs and upkeep, and actual property property taxes.

Similar-store NOI elevated 18.7% to $2.0 million within the second quarter of 2022, in comparison with $1.7 million in the identical interval final yr. The rise was primarily as a result of improve in same-store revenues.

Similar-store occupancy at June 30, 2022 decreased to 93.1% from 95.7% at June 30, 2021.

Similar-store common length of tenant keep at June 30, 2022 was 3.2 years, up from roughly 2.8 years at June 30, 2021.

For a reconciliation of internet earnings to same-store NOI see, “Reconciliation of GAAP Web Earnings to Similar-Retailer Web Working Earnings,” beneath.

Q2 2022 Working Outcomes

Web earnings within the second quarter of 2022 was $404,000 or $0.04 per diluted share, in comparison with $861,000 or $0.09 per diluted share within the second quarter of 2021.

Property operations expense elevated to $989,000 within the second quarter of 2022, as in comparison with $897,000 in the identical interval final yr.

Common and administrative bills elevated to $653,000 within the second quarter of 2022, as in comparison with $631,000 in the identical interval final yr.

Enterprise improvement prices elevated to $33,300 within the second quarter of 2022 in comparison with $4,800 in the identical interval final yr.

Curiosity expense for the second quarter of 2022 decreased to $220,000 from $287,000 within the year-ago interval. This lower was attributable to the decrease principal stability on excellent debt and the change in truthful worth of the rate of interest cap.

FFO within the second quarter of 2022 elevated 43.0% to $1.1 million or $0.10 per diluted share, in comparison with FFO of $773,000 or $0.08 per diluted share in the identical interval final yr.

AFFO within the second quarter of 2022 elevated 41.6% to $1.2 million or $0.11 per diluted share, in comparison with AFFO of $833,000 or $0.09 per diluted share in the identical interval final yr.

First Half 2022 Monetary Abstract

Whole revenues elevated 15.6% to $5.8 million within the first half of 2022, as in comparison with $5.0 million in the identical interval final yr. The rise was primarily attributable to will increase in rental charges.

Whole working bills within the first half of 2022 elevated 7.9% to $4.2 million, in comparison with $3.9 million in the identical interval final yr. The rise was primarily attributable to will increase in retailer working bills, basic and administrative bills, and enterprise improvement expense partially offset by a lower in depreciation and amortization expense.

Working earnings elevated 43.2% to $1.6 million within the first half of 2022, as in comparison with $1.1 million in the identical interval final yr.

Web earnings was $687,000 or $0.06 per diluted share within the first half of 2022, as in comparison with $1.3 million or $0.13 per diluted share in the identical interval final yr.

First Half 2022 Similar-Retailer Outcomes

For the primary half of 2022, same-store revenues elevated 15.7% to $5.8 million in comparison with $5.0 million in the identical interval final yr. These will increase have been due primarily to elevated rental charges.

Similar-store price of operations within the first half of 2022 elevated 8.0% to $2.0 million, in comparison with $1.9 million in the identical interval final yr. This improve in same-store price of operations was due primarily to elevated bills for utilities, repairs and upkeep, and actual property property taxes.

Similar-store NOI elevated 20.3% to $3.7 million within the first half of 2022, in comparison with $3.1 million in the identical interval final yr. The rise was primarily as a result of improve in revenues.

Similar-store occupancy at June 30, 2022 elevated to 93.1% from 95.7% at June 30, 2021.

Similar-store common length of tenant keep at June 30, 2022 was 3.2 years, up from roughly 2.8 years as of June 30, 2021.

For a reconciliation of internet earnings to same-store NOI see, “Reconciliation of GAAP Web Earnings to Similar-Retailer Web Working Earnings,” beneath.

First Half 2022 Working Outcomes

Web earnings within the first half of 2022 was $687,000 or $0.06 per diluted share, in comparison with $1.3 million or $0.13 per diluted share within the first half of 2021.

Property operations expense elevated to $2.0 million within the first half of 2022, as in comparison with $1.9 million within the first half of 2021.

Common and administrative bills elevated to $1.3 million within the first half of 2022, as in comparison with $1.2 million within the first half of 2021.

Enterprise improvement prices elevated to $42,100 within the first half of 2022 in comparison with $4,800 within the first half of 2021.

Curiosity expense for the primary half of 2022 decreased to $409,000 from $572,000 within the year-ago interval. This lower was attributable to the decrease principal stability on excellent debt and the change in truthful worth of the rate of interest cap.

FFO within the first half of 2022 elevated 46.8% to $2.0 million or $0.19 per diluted share, in comparison with FFO of $1.4 million or $0.15 per diluted share in the identical interval final yr.

AFFO within the first half of 2022 elevated 46.9% to $2.2 million or $0.20 per diluted share, in comparison with AFFO of $1.5 million or $0.16 per diluted share in the identical interval final yr.

Q2 and First Half 2022 FFO and AFFO (Unaudited)

For the Three Months Ended June 30, For the Six Months Ended June 30,

2022 2021 2022 2021

Web earnings

$404,200 $861,299 $687,407 $1,272,546

Remove objects excluded from FFO:

Unrealized loss (acquire) on marketable fairness securities

604,622 (494,461) 830,373 (709,197)

Depreciation and amortization

404,462 406,561 809,383 812,175

Achieve on PPP mortgage forgiveness

(307,210) – (307,210) –

FFO attributable to widespread stockholders

1,106,074 773,399 2,019,953 1,375,524

Changes:

Compensation expense associated to stock-based awards

39,329 54,476 91,933 86,182

Enterprise improvement, capital elevating, retailer acquisition, and third-party administration advertising bills

33,310 4,837 42,110 4,837

AFFO attributable to widespread stockholders

$1,178,713 $832,712 $2,153,996 $1,466,543

Earnings per share attributable to widespread stockholders – primary

$0.04 $0.09 $0.06 $0.14

Earnings per share attributable to widespread stockholders – diluted

$0.04 $0.09 $0.06 $0.13

FFO per share – diluted

$0.10 $0.08 $0.19 $0.15

AFFO per share – diluted

$0.11 $0.09 $0.20 $0.16

Weighted common shares excellent – primary

10,767,619 9,363,981 10,714,565 9,328,432

Weighted common shares excellent – diluted

10,824,760 9,402,479 10,773,643 9,370,935

Extra Data

Extra details about the corporate’s second quarter 2022 outcomes, together with monetary statements and associated notes, is accessible on Kind 10-Q as filed with the U.S. Securities and Alternate Fee and posted to the investor relations part of the corporate’s web site.

About World Self Storage

World Self Storage is a self-administered and self-managed REIT that owns, operates, manages, acquires, and redevelops self-storage properties. The corporate’s self-storage properties are designed to supply reasonably priced, simply accessible and safe space for storing for residential and business prospects. By way of its wholly owned subsidiaries, the corporate owns and/or manages 13 self-storage properties in Connecticut, Illinois, Indiana, New York, Ohio, Pennsylvania, South Carolina, and Oklahoma.

For extra data, go to ir.globalselfstorage.us or go to the corporate’s buyer website at www.globalselfstorage.us. You may also observe World Self Storage on Twitter, LinkedIn and Fb.

Non-GAAP Monetary Measures

Funds from Operations (“FFO”) and FFO per share are non-GAAP measures outlined by the Nationwide Affiliation of Actual Property Funding Trusts (“NAREIT”) and are thought of useful measures of REIT efficiency by REITs and plenty of REIT analysts. NAREIT defines FFO as a REIT’s internet earnings, excluding features or losses from gross sales of property, and including again actual property depreciation and amortization. FFO and FFO per share are usually not an alternative choice to internet earnings or earnings per share. FFO just isn’t an alternative choice to GAAP internet money move in evaluating our liquidity or means to pay dividends, as a result of it excludes financing actions introduced on our statements of money flows. As well as, different REITs might compute these measures in a different way, so comparisons amongst REITs might not be useful. Nevertheless, the Firm believes that to additional perceive the efficiency of its shops, FFO ought to be thought of together with the online earnings and money flows reported in accordance with GAAP and as introduced within the Firm’s monetary statements.

Adjusted FFO (“AFFO”) and AFFO per share are non-GAAP measures that signify FFO and FFO per share excluding the results of enterprise improvement, capital elevating, and acquisition associated prices and non-recurring objects, which we consider are usually not indicative of the Firm’s working outcomes. AFFO and AFFO per share are usually not an alternative choice to internet earnings or earnings per share. AFFO just isn’t an alternative choice to GAAP internet money move in evaluating our liquidity or means to pay dividends, as a result of it excludes financing actions introduced on our statements of money flows. We current AFFO as a result of we consider it’s a useful measure in understanding our outcomes of operations insofar as we consider that the objects famous above which are included in FFO, however excluded from AFFO, are usually not indicative of our ongoing working outcomes. We additionally consider that the analyst neighborhood considers our AFFO (or comparable measures utilizing totally different terminology) when evaluating us. As a result of different REITs or actual property firms might not compute AFFO in the identical method as we do, and should use totally different terminology, our computation of AFFO might not be akin to AFFO reported by different REITs or actual property firms. Nevertheless, the Firm believes that to additional perceive the efficiency of its shops, AFFO ought to be thought of together with the online earnings and money flows reported in accordance with GAAP and as introduced within the Firm’s monetary statements.

We consider internet working earnings or “NOI” is a significant measure of working efficiency as a result of we make the most of NOI in making selections with respect to, amongst different issues, capital allocations, figuring out present retailer values, evaluating retailer efficiency, and in evaluating period-to-period and market-to-market retailer working outcomes. As well as, we consider the funding neighborhood makes use of NOI in figuring out working efficiency and actual property values and doesn’t take into account depreciation expense as a result of it’s based mostly upon historic price. NOI is outlined as internet retailer earnings earlier than basic and administrative bills, curiosity, taxes, depreciation, and amortization.

NOI just isn’t an alternative choice to internet earnings, internet working money move, or different associated GAAP monetary measures, in evaluating our working outcomes.

Similar-Retailer Self Storage Operations Definition

We take into account our same-store portfolio to encompass solely these shops owned and operated on a stabilized foundation initially and on the finish of the relevant intervals introduced. We take into account a retailer to be stabilized as soon as it has achieved an occupancy charge that we consider, based mostly on our evaluation of market-specific knowledge, is consultant of comparable self storage property within the relevant marketplace for a full yr measured as of the newest January 1 and has not been considerably broken by pure catastrophe or undergone important renovation or growth. We consider that same-store outcomes are helpful to traders in evaluating our efficiency as a result of they supply data referring to modifications in store-level working efficiency with out making an allowance for the results of acquisitions, tendencies, or new ground-up developments. At June 30, 2022, we owned twelve same-store properties and nil non same-store properties. The Firm believes that, by offering same-store outcomes from a stabilized pool of shops, with accompanying working metrics together with, however not restricted to, variances in occupancy, rental income, working bills, and NOI, stockholders and potential traders are in a position to consider working efficiency with out the results of non-stabilized occupancy ranges, lease ranges, expense ranges, acquisitions, or accomplished developments. Similar-store outcomes shouldn’t be used as a foundation for future same-store efficiency or for the efficiency of the Firm’s shops as an entire.

Cautionary Notice Concerning Ahead Trying Statements

Sure data introduced on this press launch might include “forward-looking statements” inside the which means of the federal securities legal guidelines together with, however not restricted to, the Non-public Securities Litigation Reform Act of 1995. Ahead wanting statements embody statements regarding the firm’s plans, aims, targets, methods, future occasions, future revenues or efficiency, capital expenditures, financing wants, plans or intentions, and different data that isn’t historic data. In some instances, ahead wanting statements will be recognized by terminology resembling “believes,” “plans,” “intends,” “expects,” “estimates,” “might,” “will,” “ought to,” “anticipates,” or the unfavorable of such phrases or different comparable terminology, or by discussions of technique. All forward-looking statements by the corporate contain identified and unknown dangers, uncertainties and different components, lots of that are past the management of the corporate, which can trigger the corporate’s precise outcomes to be materially totally different from these expressed or implied by such statements, together with the unfavorable impacts from the continued unfold of COVID-19 on the financial system, the self storage business, the broader monetary markets, the corporate’s monetary situation, outcomes of operations and money flows and the power of the corporate’s tenants to pay lease. The corporate might also make further ahead wanting statements occasionally. All such subsequent forward-looking statements, whether or not written or oral, by the corporate or on its behalf, are additionally expressly certified by these cautionary statements. Traders ought to fastidiously take into account the dangers, uncertainties, and different components, along with the entire different data included within the firm’s filings with the Securities and Alternate Fee, and comparable data. All forward-looking statements, together with with out limitation, the corporate’s examination of historic working tendencies and estimates of future earnings, are based mostly upon the corporate’s present expectations and numerous assumptions. The corporate’s expectations, beliefs and projections are expressed in good religion, however there will be no assurance that the corporate’s expectations, beliefs, and projections will outcome or be achieved. All ahead wanting statements apply solely as of the date made. The corporate undertakes no obligation to publicly replace or revise ahead wanting statements which can be made to replicate occasions or circumstances after the date made or to replicate the incidence of unanticipated occasions. The quantity, nature, and/or frequency of dividends paid by the corporate could also be modified at any time with out discover.

Firm Contact:

Thomas O’Malley, Chief Monetary Officer
World Self Storage
1 (212) 785-0900, ext. 267
[email protected]

Investor Relations Contact:

Ron Each or Justin Lumley
CMA Investor Relations
Tel (949) 432-7566
E mail contact

Media Contact:

Tim Randall
CMA Media Relations
Tel (949) 432-7572
E mail Contact

GLOBAL SELF STORAGE, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)

June 30, 2022 December 31, 2021

Property

Actual property property, internet

$57,595,599 $58,390,066

Money and money equivalents

5,164,626 2,899,701

Restricted money

112,845 163,998

Investments in securities

2,652,809 3,483,182

Accounts receivable

144,028 120,641

Pay as you go bills and different property

359,198 543,528

Line of credit score issuance prices, internet

203,203 254,004

Goodwill

694,121 694,121

Whole property

$66,926,429 $66,549,241

Liabilities and fairness

Notice payable, internet

$17,671,618 $17,916,513

Accounts payable and accrued bills

1,581,877 1,514,631

Whole liabilities

19,253,495 19,431,144

Commitments and contingencies

Stockholders’ fairness

Most popular inventory, $0.01 par worth: 50,000,000 shares approved; no shares issued or excellent

– –

Frequent inventory, $0.01 par worth: 450,000,000 shares approved; 10,965,680 shares and 10,708,613 shares issued and excellent at June 30, 2022 and December 31, 2021, respectively

109,657 107,086

Extra paid in capital

48,125,045 46,851,360

Retained earnings (amassed deficit)

(561,768) 159,651

Whole stockholders’ fairness

47,672,934 47,118,097

Whole liabilities and stockholders’ fairness

$66,926,429 $66,549,241

GLOBAL SELF STORAGE, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(Unaudited)

For the Three Months Ended June 30, For the Six Months Ended June 30,

2022 2021 2022 2021

Revenues

Rental earnings

$2,862,561 $2,460,667 $5,571,345 $4,793,905

Different property associated earnings

95,541 95,069 188,072 185,821

Administration charges and different earnings

20,813 18,785 40,311 36,982

Whole revenues

2,978,915 2,574,521 5,799,728 5,016,708

Bills

Property operations

989,251 897,297 2,042,985 1,891,321

Common and administrative

653,053 631,208 1,331,706 1,209,825

Depreciation and amortization

404,462 406,561 809,383 812,175

Enterprise improvement

33,310 4,837 42,110 4,837

Whole bills

2,080,076 1,939,903 4,226,184 3,918,158

Working earnings

898,839 634,618 1,573,544 1,098,550

Different earnings (expense)

Dividend and curiosity earnings

23,029 18,792 46,048 36,863

Unrealized (loss) acquire on marketable fairness securities

(604,622) 494,461 (830,373 709,197

Curiosity expense

(220,256) (286,572 (409,022 (572,064)

Achieve on Paycheck Safety Program (PPP) mortgage forgiveness

307,210 – 307,210 –

Whole different earnings (expense), internet

(494,639) 226,681 (886,137) 173,996

Web earnings and complete earnings

$404,200 $861,299 $687,407 $1,272,546

Earnings per share

Fundamental

$0.04 $0.09 $0.06 $0.14

Diluted

$0.04 $0.09 $0.06 $0.13

Weighted common shares excellent

Fundamental

10,767,619 9,363,981 10,714,565 9,328,432

Diluted

10,824,760 9,402,479 10,773,643 9,370,935

Reconciliation of GAAP Web Earnings to Similar-Retailer Web Working Earnings

The next desk presents a reconciliation of same-store internet working earnings to internet earnings as introduced on the corporate’s consolidated statements of operations for the intervals indicated (unaudited):

For the Three Months Ended June 30, For the Six Months Ended June 30,

2022 2021 2022 2021

Web earnings

$404,200 $861,299 $687,407 $1,272,546

Changes:

Administration charges and different earnings

(20,813) (18,785) (40,311) (36,982)

Common and administrative

653,053 631,208 1,331,706 1,209,825

Depreciation and amortization

404,462 406,561 809,383 812,175

Enterprise improvement