High times, in self-storage

C.I.P.’s note: Self-storages are like multi-families, with the advantage that you have no toilets to fix! 🙂 self storage

December 23, 2012

Please take a moment to look at this chart, which shows the arc of Buffalo-based Sovran Self-Storage’s stock over the past year. It has risen nearly 50 percent. The company has declined offers for Business First features and did not respond to an invitation to comment on this blog, but it’s clearly on an upward trend.

The performance might have something to do with the $18.8 million in income the company reported in the third quarter — up from $2.3 million last year. Or something to do with the fact that it acquired ten premium self-storage facilities during that timeframe and sold 17 of its older properties (Sovran pointed out in its quarterly report that the results reflected a gain on the sale of assets, while 2011 results were impacted by refinancing costs).

Sovran’s annual report, which was released in February, offers some insight on the company’s philosophy:

• Sovran exists in a national environment of 49,400 self-storage facilities (called Uncle Bob’s Self Storage), with less than 11 percent owned by the largest ten operators. That spells opportunity; much of the competition has scarce… Read more…

This entry was posted in Investing, Market outlook, Market trends, Self-storage and tagged , , , . Bookmark the permalink.

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