Storage Asset Management (SAM) is a privately held self storage management company, with 45 properties managed along the East Coast of the USA. SAM is proud to share the results their managed properties achieved in 2014. As a mid-sized third party management company focused on growth, SAM holds themselves to very high standards and expectations. Each quarter and year, SAM compares their results to those of the 4 publicly traded self storage REITS; CubeSmart, Extra Space Storage, Sovran Self Storage (Uncle Bob’s), and Public Storage.
Those four companies release their “Same Store” operating results to their investors and the public. To understand the results, we need to understand what “Same Store” means in the storage industry. Some companies exhibit growth in revenue by opening new stores. Some companies exhibit growth by making more money from the “mature” stores they already own. The same-store sales information points out the difference. An increase in same-store sales, from mature (no longer in lease up) properties only, may indicate that existing customers are spending more with the company or demand is increasing bringing up occupancy.
For the full year of 2014, SAM increased same store revenue by 7.0%, and net operating income by 9.4%. SAM outperformed three of the 4 public REITs in those categories. Occupancy at SAM same store locations grew 2.1% from 12/31/13 through 12/31/14, outperforming all 4 REITs. SAM was able to hold expense growth at 1.4%, beating all 4 companies in that metric as well.
Since its birth in 2010, SAM outperformed the 4 REITs in both Revenue and NOI growth in 2010, 2011, 2012, and 2013. SAM actually achieved double-digit same store Revenue growth in 2011, 2012, and 2013.
SAM attributes their great results to several things, including; a strong team of Property Managers and Assistant Managers, District Managers’ ability to focus and train, with an average of 9 properties per DM, company-wide focus on training, customized marketing and operating plans for each location, and an ability to build solid local business to business relationships in markets we serve.
Storage Asset Management is a property management & consulting company that specializes in self-storage. Their strategy is to create value for their clients through customized solutions that fit within their budget and allows each property to maintain their identity. SAM currently manages over 40 self-storage facilities on the East Coast. For more information on SAM, visit www.storageassetmanagement.com.