Sovran Self Storage Inc. (SSS, Financial) filed Quarterly Report for the period ended 2009-09-30.
Sovran Self Storage Inc. is a self-administered and self-managed real estate investment trust which acquires owns and manages self-storage properties. Sovran Self Storage Inc. has a market cap of $695.1 million; its shares were traded at around $29.69 with a P/E ratio of 9.3 and P/S ratio of 3.4. The dividend yield of Sovran Self Storage Inc. stocks is 6.1%. Sovran Self Storage Inc. had an annual average earning growth of 3.6% over the past 10 years.
Interest expense in the third quarter increased from $10.0 million in 2008 to $10.9 million in 2009 due to an increase in interest rates as a result of our debt refinancing in June 2008. In addition, a credit ratings downgrade by Fitch Ratings in May 2009 on our unsecured floating rate notes triggered a 1.75% increase in the interest rate on our $150 million term notes and a 0.375% increase in the interest rate on our $250 million term notes.
We recorded rental revenues of $141.2 million for the nine months ended September 30, 2009, a decrease of $3.8 million or 2.6% when compared to the nine months ended September 30, 2008 rental revenues of $145.0 million. Of the decrease in rental revenue, $4.3 million resulted from a 3.0% decrease in rental revenues at the 354 core properties considered in same store sales (those properties included in the consolidated results of operations since January 1, 2008). The decrease in same store rental revenues was a result of a decrease in average square foot occupancy and a decrease in rental rates. The acquisition of three stores subsequent to January 1, 2008, resulted in a $0.5 million increase in rental income. Other income, which includes merchandise sales, insurance sales, truck rentals, management fees and acquisition fees, was slightly higher in 2009 primarily as a result of insurance sales. In 2009 we generated $0.9 million of management fees from our unconsolidated joint venture entered in May 2008, Sovran HHF Storage Holdings LLC. For the nine months ended September 30, 2008, in addition to the management fees earned of $0.2 million, we also earned an acquisition fee of $0.7 million.
As described in Note 5 to the financial statements, during the nine months ended September 30, 2009 the Operating Partnership sold three non-strategic storage facilities for net cash proceeds of $10.9 million resulting in a loss of $1.0 million. During 2008 the Operating Partnership sold one non-strategic storage facility for net cash proceeds of $7.0 million resulting in a gain of $0.7 million. The 2009 and 2008 operations of these facilities and the loss/gain associated with the disposal are reported in income from discontinued operations for all periods presented.
During the first nine months of 2009 we did not purchase any properties and did not have any properties under contract for purchase. In August and September of 2009 the Operating Partnership sold three non-strategic storage facilities located in Massachusetts and North Carolina for net proceeds of $10.9 million resulting in a net loss on disposal of $1.0 million. In October 2009, the Operating Partnership entered into contracts for the sale of three non-strategic properties in Pennsylvania and Virginia for approximately $8.0 million. The sales of these properties are subject to significant contingencies and there is no assurance that the properties will be sold. Should the sales occur, the Operating Partnership would recognize an aggregate gain of approximately $0.2 million. We may seek to sell additional non-strategic properties in 2009.
In 2009, the Company's board of directors authorized and the Company declared quarterly common stock dividends of $0.64 per share for the first fiscal quarter; the equivalent of an annual rate of $2.56 per share. With respect to the second quarter of 2009, recognizing the need to maintain maximum financial flexibility in light of the current state of the capital markets, the Company's board of directors reduced the quarterly common stock dividend to $0.45 per share, for an annual rate of $1.80 per share. A $0.45 per share quarterly common stock dividend was also declared with respect to the third quarter of 2009. We can provide no assurance that the board will not reduce or eliminate entirely dividend distributions on the Company's common stock in the future.
Read the The complete ReportSSS is in the portfolios of Kenneth Fisher of Fisher Asset Management, LLC.
Sovran Self Storage Inc. is a self-administered and self-managed real estate investment trust which acquires owns and manages self-storage properties. Sovran Self Storage Inc. has a market cap of $695.1 million; its shares were traded at around $29.69 with a P/E ratio of 9.3 and P/S ratio of 3.4. The dividend yield of Sovran Self Storage Inc. stocks is 6.1%. Sovran Self Storage Inc. had an annual average earning growth of 3.6% over the past 10 years.
Highlight of Business Operations:
We recorded rental revenues of $47.7 million for the three months ended September 30, 2009, a decrease of $1.6 million or 3.3% when compared to the three months ended September 30, 2008 rental revenues of $49.4 million. Of the decrease in rental revenue, $1.8 million resulted from a 3.6% decrease in rental revenues at the 356 core properties considered in same store sales (those properties included in the consolidated results of operations since July 1, 2008). The decrease in same store rental revenues was the result of a decrease in average square foot occupancy from 83.4% to 82.4% and a decrease in rental rates of 3.1%. We believe general economic conditions have caused consumers to be more price-sensitive and have led to us offering more upfront concessions resulting in the decrease in our rental rates. The acquisition of one store subsequent to July 1, 2008, resulted in a $0.1 million increase in rental income. Other income, which includes merchandise sales, insurance sales, truck rentals, management fees and acquisition fees, increased in 2009 primarily as a result of $0.6 million of management fees generated from our unconsolidated joint venture entered in May 2008, Sovran HHF Storage Holdings LLC.Interest expense in the third quarter increased from $10.0 million in 2008 to $10.9 million in 2009 due to an increase in interest rates as a result of our debt refinancing in June 2008. In addition, a credit ratings downgrade by Fitch Ratings in May 2009 on our unsecured floating rate notes triggered a 1.75% increase in the interest rate on our $150 million term notes and a 0.375% increase in the interest rate on our $250 million term notes.
We recorded rental revenues of $141.2 million for the nine months ended September 30, 2009, a decrease of $3.8 million or 2.6% when compared to the nine months ended September 30, 2008 rental revenues of $145.0 million. Of the decrease in rental revenue, $4.3 million resulted from a 3.0% decrease in rental revenues at the 354 core properties considered in same store sales (those properties included in the consolidated results of operations since January 1, 2008). The decrease in same store rental revenues was a result of a decrease in average square foot occupancy and a decrease in rental rates. The acquisition of three stores subsequent to January 1, 2008, resulted in a $0.5 million increase in rental income. Other income, which includes merchandise sales, insurance sales, truck rentals, management fees and acquisition fees, was slightly higher in 2009 primarily as a result of insurance sales. In 2009 we generated $0.9 million of management fees from our unconsolidated joint venture entered in May 2008, Sovran HHF Storage Holdings LLC. For the nine months ended September 30, 2008, in addition to the management fees earned of $0.2 million, we also earned an acquisition fee of $0.7 million.
As described in Note 5 to the financial statements, during the nine months ended September 30, 2009 the Operating Partnership sold three non-strategic storage facilities for net cash proceeds of $10.9 million resulting in a loss of $1.0 million. During 2008 the Operating Partnership sold one non-strategic storage facility for net cash proceeds of $7.0 million resulting in a gain of $0.7 million. The 2009 and 2008 operations of these facilities and the loss/gain associated with the disposal are reported in income from discontinued operations for all periods presented.
During the first nine months of 2009 we did not purchase any properties and did not have any properties under contract for purchase. In August and September of 2009 the Operating Partnership sold three non-strategic storage facilities located in Massachusetts and North Carolina for net proceeds of $10.9 million resulting in a net loss on disposal of $1.0 million. In October 2009, the Operating Partnership entered into contracts for the sale of three non-strategic properties in Pennsylvania and Virginia for approximately $8.0 million. The sales of these properties are subject to significant contingencies and there is no assurance that the properties will be sold. Should the sales occur, the Operating Partnership would recognize an aggregate gain of approximately $0.2 million. We may seek to sell additional non-strategic properties in 2009.
In 2009, the Company's board of directors authorized and the Company declared quarterly common stock dividends of $0.64 per share for the first fiscal quarter; the equivalent of an annual rate of $2.56 per share. With respect to the second quarter of 2009, recognizing the need to maintain maximum financial flexibility in light of the current state of the capital markets, the Company's board of directors reduced the quarterly common stock dividend to $0.45 per share, for an annual rate of $1.80 per share. A $0.45 per share quarterly common stock dividend was also declared with respect to the third quarter of 2009. We can provide no assurance that the board will not reduce or eliminate entirely dividend distributions on the Company's common stock in the future.
Read the The complete ReportSSS is in the portfolios of Kenneth Fisher of Fisher Asset Management, LLC.
