Strategic Storage Growth Trust, Inc. Reports 2018 First Quarter Results
May 18, 2018 | James Sprow | Blue Vault
In a press release on May 18, Strategic Storage Growth Trust, Inc. (“SSGT”) announced continued growth in total revenues and total net operating income (“NOI”), as well as same-store results, including revenues, NOI and annualized rent per occupied square footage, as part of its overall operating results for the three months ended March 31, 2018.
“We continue to experience solid growth in SSGT’s portfolio, both in our same-store results and in our more recent lease-up acquisitions,” said H. Michael Schwartz, chairman and chief executive officer of SSGT. “Accordingly, we are pleased to announce an increase in distributions to SSGT shareholders, beginning in the 3rd quarter of 2018, of an additional $0.10 per share on an annualized basis, which brings the current distributions of $0.40 per share to $0.50 per share.”
First Quarter 2018 Highlights:
| • | Increased total revenue by approximately $1.7 million, or 61%, when compared to the same period in 2017. |
| • | Increased same-store revenues and NOI by 10.1% and 20.4%, respectively, compared to the same period in 2017. |
| • | Increased same-store annualized rent per occupied square foot by approximately 14.3%, when compared to the same period in 2017 from $11.95 to $13.66. |
| • | Increased modified funds from operations by approximately $0.6 million, or 129%, when compared to the same period in 2017. |
The REIT reported three Q1 2018 acquisitions: newly constructed self-storage facilities in Pembroke Pines, Florida, Riverview, Florida, and Eastlake, California. According to the REIT’s Q1 2018 10-Q, facility acquisitions for the quarter totaled $41.3 million. The Company also showed construction in process that was placed in service for the quarter of $4.0 million.
On April 19, 2018, SSGT’s board of directors declared a daily distribution in the amount of $0.0013698630 per share on outstanding shares of common stock, payable to both Class A and Class T stockholders. This represents an increase to an annualized rate of $0.50 per year for a 5.00% distribution yield for Class A shareholders based upon the original $10.00 offering price or 4.48% based upon the later $11.17 offering price. Class T shareholders are subject to a 1.0% annualized stockholder servicing fee.
On April 19, 2018, the board of directors of SSGT approved an estimated value per share of its common stock of $11.58 for its Class A Shares and Class T Shares based on the estimated value of SSGT’s assets less the estimated value of its liabilities, or net asset value, divided by the number of shares outstanding on a fully diluted basis, calculated as of December 31, 2017. The previous NAV was $11.56 as of December 31, 2016.
Sources: Strategic Storage Growth Trust, Inc. 5/18/2018 Press Release, SEC, Blue Vault
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