Sovran Self Storage Reports Second Quarter Results

Sovran Self Storage, Inc. (NYSE:SSS), a self-storage real estate investment trust (REIT), reported operating results for the quarter ended June 30, 2009.Net income available to common shareholders for the second quarter of 2009 was $6.3 million or $.28 per diluted share. Net income available to common shareholders for the same period in 2008 was $10.5 million or $.48 per diluted share. Funds from operations for the quarter were $.66 per fully diluted common share. One-time costs of almost $1 million associated with a first quarter covenant waiver, higher interest expense associated with the Company’s recent long-term financing, and increased customer move-in incentives were the primary factors leading to lower earnings for 2009’s second quarter.

Occupancy levels at the Company’s 385 storage facilities at June 30 improved to 82.5%, an increase of 360 basis points since March 31. Kenneth Myszka, the Company’s President and Chief Operating Officer stated, “In a very challenging environment, we’re pleased to see our marketing and call center efforts take hold. During the quarter, we had a net gain of 9,400 customers on a same store basis, and while we made heavy use of incentives, this got our summer season off to a solid start.”

In early May, the Company announced it had breached a debt covenant with its lenders. David Rogers, the Company’s Chief Financial Officer commented, “During the quarter, we took the necessary steps to fix this problem and to improve our liquidity position. We became even more prudent regarding acquisitions and expansions, reduced the dividend on our common stock, and raised some equity through our DRIP and Stock Purchase Plans. We’ve gained sufficient room concerning the covenant restriction and, at June 30, we have in excess of $60 million in cash and permissible borrowings remaining on our credit line.”

Add comment August 8th, 2009

CIB Successfully Urges Governor to Veto Self-Storage Insurance Limited License Bill

The Council of Insurance Brokers of Greater New York, Inc. (CIB), the leading professional independent insurance brokers association in the New York Metropolitan area, including Long Island and the Lower Hudson Valley, applauds Governor Paterson’s veto of S.3577 (Breslin) / A.4824 (Morelle), a bill to allow the Superintendent of Insurance to issue limited licenses to self-storage facility operators to sell insurance.In thanking the Governor for his disapproval of the bill, CIB President, Anthony Aquilino, said: “CIB was the only major independent insurance broker & agent organization to oppose this bill. We recognized that having untrained counterpersons sell contents coverage would only benefit the self-storage companies. Signing this bill into law would have adversely affected consumers who may already have such insurance coverage under their homeowners or renters policies.”

CIB Legislative Chair, Anthony Calafiore, added that: “CIB has consistently opposed efforts to expand limited licenses to sell insurance. An insurance professional needs to be properly educated and regulated by the State Insurance Department in order to serve the insurance needs of the public. This bill would fly in the face of such pro-consumer protections and would undermine the trust developed between policyholders and their independent brokers.”

Add comment August 8th, 2009