Life Storage (Life Storage) Interest Coverage : 3.44 (As of Mar. 2023)

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What is Life Storage Interest Coverage?

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Life Storage's Operating Income for the three months ended in Mar. 2023 was $114 Mil. Life Storage's Interest Expense for the three months ended in Mar. 2023 was $-33 Mil. Life Storage's interest coverage for the quarter that ended in Mar. 2023 was 3.44. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Life Storage's Interest Coverage or its related term are showing as below:

LSI' s Interest Coverage Range Over the Past 10 Years
Min: 2.3 Med: 3.17 Max: 4.2
Current: 4.03

LSI's Interest Coverage is not ranked
in the REITs industry.
Industry Median: 2.98 vs LSI: 4.03

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Life Storage Interest Coverage Historical Data

The historical data trend for Life Storage's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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Life Storage Interest Coverage Chart

Life Storage Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Interest Coverage

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3.07

2.95

2.71

3.83

4.20

Life Storage Quarterly Data
	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23
Interest Coverage	Get a 7-Day Free Trial															4.02	4.55	4.40	3.90	3.44

Competitive Comparison of Life Storage's Interest Coverage

For the REIT - Industrial subindustry, Life Storage's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Life Storage's Interest Coverage Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Life Storage's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Life Storage's Interest Coverage falls into.

Life Storage Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Life Storage's Interest Coverage for the fiscal year that ended in Dec. 2022 is calculated as

Here, for the fiscal year that ended in Dec. 2022, Life Storage's Interest Expense was $-109 Mil. Its Operating Income was $459 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,788 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2022 )	/	Interest Expense (A: Dec. 2022 )
	=	-1	*	459.313	/	-109.24
	=	4.20

Life Storage's Interest Coverage for the quarter that ended in Mar. 2023 is calculated as

Here, for the three months ended in Mar. 2023, Life Storage's Interest Expense was $-33 Mil. Its Operating Income was $114 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,785 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2023 )	/	Interest Expense (Q: Mar. 2023 )
	=	-1	*	114.052	/	-33.113
	=	3.44

The higher the ratio, the stronger the company's Financial Strength is.

Life Storage (NYSE:LSI) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Life Storage Interest Coverage Related Terms

Thank you for viewing the detailed overview of Life Storage's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Life Storage (Life Storage) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » Life Storage Inc (NYSE:LSI) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

6467 Main Street, Williamsville, NY, USA, 14221

Website

https://www.lifestorage.com

Life Storage Inc (which was rebranded from Sovran Self Storage, Inc in 2016) is a fully integrated, real estate investment trust that acquires and manages self-storage properties throughout the United States. The company operates under the brand names Life Storage. Approximately under half of the company's revenue is derived from stores in the states of Texas and Florida. The remainder of sales is distributed across the United States. The company's operations in rental income from customers renting storage space on a month-to-month basis generate a majority of operating revenue. The company also offers storage to both individuals of commercial renters and has special storage units available for vehicles and wine.

Executives

Joseph Saffire	officer: Chief Investment Officer	6467 MAIN STREET, WILLIAMSVILLE NY 14221
Havener Arthur L Jr	director	9825 SUNSET GREENS DRIVE, ST. LOUIS MO 63127
Alexander Gress	officer: CFO	6467 MAIN STREET, C/O LIFE STORAGE, INC., WILLIAMSVILLE NY 14221
Stephen R Rusmisel	director	C/O SOVRAN SELF STORAGE, INC, 6467 MAIN STREET, WILLIAMSVILLE NY 14221
Andrew J Gregoire	officer: CFO	C/O LIFE STORAGE, INC., 6467 MAIN STREET, WILLIAMSVILLE NY 14221
David P. Dodman	officer: COO	C/O LIFE STORAGE, INC, 6467 MAIN STREET, WILLIAMSVILLE NY 14221
Edward F Killeen	officer: EVP Real Estate Management	C/O LIFE STORAGE, INC., 6467 MAIN STREET, WILLIAMSVILLE NY 14221
David L Rogers	officer: CFO	C/O LIFE STORAGE INC, 6467 MAIN STREET, BUFFALO NY 14221
Sue Harnett	director	P.O. BOX 195115, SAN JUAN PR 00919-5115
Mark G Barberio	director	19 WIK STREET, WILLIAMSVILLE NY 14221
Edward J Pettinella	director	C/O HOME PROPERTIES, 850 CLINTON SQUARE, ROCHESTER NY 14604
Charles E Lannon	director	C/O LIFE STORAGE INC, 6467 MAIN STREET, BUFFALO NY 14221
Kenneth F Myszka	director, officer: President, COO	C/O LIFE STORAGE INC, 6467 MAIN STREET, BUFFALO NY 14221
Robert J Attea	director, officer: Chairman of Board, CEO	C/O LIFE STORAGE INC, 6467 MAIN STREET, BUFFALO NY 14221
Dana Hamilton	director	C/O ARCHSTONE-SMITH TRUST, 9200 E. PANORAMA CIRCLE, SUITE 400, ENGLEWOOD CO 80112