Self Storage REITs – Q1 2015 Results

The Self Storage Industry REITs continue to show great returns during the 1st Quarter 2015.  The group, comprised of Public Storage, ExtraSpace, CubeSmart, and Sovran (Uncle Bobs) posted a combined year-to-date share price gain of 7.29%.

Self Storage REITs- Q1 2015

We believe the future of low interest rates continues to fuel the optimistic investor attitudes towards the sector, combined with low inventory of available storage units (due to new development of properties over the past years because of the economic recession).

Traders Continue to Feel Interest Rates will Be Low

It appears that Traders are expecting the Federal Reserve to raise interest rates later than sooner according to a recent report from BloombergBusiness.  The fact is the Self Storage Industry is very interest rate sensitive.  As long as rates continue to be low, consumers will have more purchasing power – to buy more stuff – and will need a place to put it.  Additionally, low interest rates allow Self Storage Investors to acquire or develop properties at favorable interest rates. The results of which cause prices of land and Building Sales to rise.

Perhaps its time you consider investing in the Self Storage Industry?

Are you in the need of some extra storage space in South Orange County California?  If so, try one of the best storage companies in San Clemente CA– San Clemente Self Storage – and be sure to ask about our 15% Discount. Call today at 949-366-1133.

Self Storage Industry – Still Showing Great Results in Early 2015

Early January 2015 numbers show share prices continue to go up for the Top 4 Self Storage REITs with a stunning 8.61% increase during the 16 days of January 2015.

You would think with the fantastic approximate 30% YTD Self Storage REIT returns per share in 2014 that things would slow down a bit in 2015, particularly given the fact that the overall stock market is down 1.88% (S&P Index), but demand for self storage rental units remains very strong throughout the United States.

Jan 16 2015 Self Storage REIT results

Low interest rates, lack of new development, and high occupancy rates all point to a strong 2015 for the Self Storage Industry.

Now is a good to time to consider renting a self storage unit. The Winter month’s are typically the slow time in the self storage business. With occupancy rates near all time highs, rental rates are expected to rise this Spring and Summer.

If you need storage space in San Clemente CA, call San Clemente Self Storage today at 949-366-1133.


Self Storage REITs Dec 2014 – Great Returns

The recent NGKF Self Storage Bi- Weekly reports shows that the Top 4 Self Storage REITs are posting a year-to-date share price increase of 26.48%!

Dec 2014 Self Storage REIT

Self Storage operators indicate reasons for success are low vacancy, little new product being developed to compete, and the ability to increase rents. Low interest rates are also helping self storage operators who are able to refinance their properties and improve their cash flow.  The Bottom line is the 2014 is turning out to be a Fantastic Year in the self storage industry!

Quick note for those who may need to rent a self storage unit, the Winter months are typically the slow season in self storage industry, making now a good time to rent storage space. Call San Clemente Self Storage today and check out our self storage specials at 949-366-1133.



Self Storage REIT Prices Starting to Fall in Sept 2014

Self Storage REIT prices - Fall Sept 16 2014

As of September 16, 2014 the top 4 Self Storage REITs have a combined 2014 YTD Return of 13.77%. The bad news is just a few weeks ago that combined return was nearly 20%. Perhaps prices are starting to fall due to the fact that 4th Quarter of the year is typically the slow period for most self storage operators.

Clearly, there are fears about increased interest rates in the 1st quarter of next year 2015, which would have a negative impact on prices. However, just yesterday, the Federal Reserve just announced that they will keep interest rates at historic lows and re-evaluate its stance sometime in the middle of next year – click here for more information about the Federal Reserves Recent Stance on Interest Rates.

Perhaps, the fall in prices is nothing more than profit taking, the fact is the self storage operators are seeing historic highs in occupancy rates.  Since the summer is always the busiest time of year for self storage companies, here in the Fall it is a good time to consider renting a storage unit.  If you are interest in renting storage space in South Orange County CA – give San Clemente Self Storage a call at 949-366-1133.

Self Storage REITS – Q2 2014

Self Storage REITs  Q2 Self Storage ResultsThe Self Storage publicly held REITs (Real Estate Investment Trusts) recently announced their financial results for the 2nd Qtr 2014, and they were very impressive. Same Store Results (Compared to Q2 2013) Revenues improved an average of 7.4%, Net Operation Income (NOI) was up 9.1%, and Occupancy Levels surged to an all time high of 92.6% – a 2.01% improvement.

Q2 2014 Self Storage REITs

Q2 2014 Self Storage REITs – Behind the Numbers

Strong demand for self storage rental is the key factor. The lack of new development during the recent economic recession resulted in a lack of new supply in some markets allowing operators to achieve higher occupancy levels and increase rental rates at the same time. The results of which show solid operational performance.

The Self Storage REITs are also benefiting from their improved internet presence in an industry that  has highly fragmented ownership.  Over 80% of the 50,000 self storage facilities in the USA are owned by companies or individuals that could be considered “mom and pop” operators (they own less than 3 facilities).  In an industry that is showing over 50% new rentals being derived from internet searches, the more sophisticated publicly held self storage REITs are taking up high internet rankings for keywords that are critical in generating rental leads.

These trends should continue throughout the 3rd quarter of 2014.  Historically, the summer months are the busiest months for the Self Storage Industry.

If you are in need of self storage space in South Orange County CA, San Clemente Self Storage is one of the top operators in Orange County, offering over 100,000 square feet of space and 700 storage units. Give San Clemente Self Storage a call today at 949-366-1133.


Self Storage Industry – First 6 Months of 2014 Strong

Although most of the top publicly traded Self Storage REITs will not report their final financial results until the end of July 2014, the financial performance of their REIT shares had a very good performance, closing the 2nd QTR effective June 20, 2014 with great results showing an 18.1% return since January 1, 2014.

2nd QTR 2014 Self Storage REIT Results

As you can see from the graphic above, only the Residential Apartment sector of the REITs had a better financial return coming in at 23.47%.

The self storage industry continues to boom due to the fact that USA households have significant demand for storage space, with one out of 10 renting a storage unit.  This demand has grown significantly since 1996 when 1 out of 16 households rented a storage unit.

Self Storage REITs – Growth Opportunities Ahead

There are only 4 publicly-traded self-storage REITs that own around 4,170 properties of the 54,000 facilities in the United States (only 7%). Although the public REITs are very aggressive in acquiring new properties, there clearly is opportunity to grow their asset base.  In fact, of the companies that actively acquiring properties, there are only really 12   (including the 4 self-storage REITs) that only own approximately 7,000 facilities. That leaves a significant amount of potential for purchases of privately owned properties.

Self Storage Occupancy Levels – All Over 90%

2014 is turning into a banner year for the self storage industry, with all 4 Major Self Storage REITs reporting occupancy levels above 90% through the first 6 months of the year.

What does this mean for the average renter of space in South Orange County? 

We are seeing occupancy levels grow in the San Clemente and San Juan Capistrano Markets too. All major self storage facilities are reporting record occupancy levels.  Military deployment being one of the driving factors in occupancy improvement.

If you are in need of self storage space in the San Clemente area, please consider San Clemente Self Storage – please call 949-366-1133.  Ask about our San Clemente Storage Units Rent Special.



Q1 2014 Self Storage REIT Results

Listed below are key First Quarter 2014 Financial results (Same Store Operations) for the top 4 self storage REITs. As a group, substantial growth was seen across the board compared to the same time period in 2013, with occupancy increasing by nearly 3%, same store sales revenues by 7%, and net income by 8%. The companies included in this group are Public Storage, ExtraSpace, Sovran Self Storage (Uncle Bob’s), and CubeSmart.Q1 2014 REIT Self Storage Sector Results

Leading the charge in Sales Improvement was Sovran Self Storage (Uncle Bob’s) with an increase of 8.3%.  Occupancy levels improved the most for CubeSmart, rising by 4.6% to 89.5%. ExtraSpace improved their bottom line Net Income by 9.4%.

As a group, the self storage REITs had a very impressive First Quarter 2014 Financial Results.  Perhaps it is time for you to consider investing in Self Storage. Go here to learn more about current Self Storage REIT opportunities.

This information was compiled by San Clemente Self Storage, the leading provider of storage units rental in the City of San Clemente since 1999. San Clemente Self Storage has over 700 self storage units, with numerous different shapes and sizes, that are perfect for storing personal or business items. If you are interested in getting self storage in San Clemente CA, give them a call today at 949-366-1133.


Self Storage Industry 2014 – Very Strong First 4 Months

The Self Storage Industry REITs numbers are coming in very strong. As of April 28, 2014 the group has shown an 18.04% improvement in share price since the start of the year!

Self  Storage REITs Great 1st 4 months 2014

Reasons for Strong Numbers – Self Storage

1. Lack of New Facilities to Compete – Good news – Bad news about the 2008 – 2012 Recession.  The lack of capital and more stringent lending regulations for new development of commercial real estate projects in the United States that started in 2008 created a significant slow down on new properties to compete with existing facilities (it is still difficult to get financing for new development).

With the turn around in the economy, self storage facilities have increased their occupancies over the past year, allowing them to increase their rents.  As this trend continues, the self storage industry should continue to prosper.

2. Low Interest Rates – It should be noted that the values of self storage facilities have substantially increased over the past few years due to the fact that interest rates remain low.  As long as interest rates remain low, self storage values and profits should remain very strong.

3. Easy For REITs to buy Existing Facilities – Although new development may be limited by tight financial markets and uncooperative local city governments, the Self Storage REITs do have a unique ability to acquire existing facilities and grow their asset base.

a. High Sale Prices – The self storage industry is has highly fragmented ownership, with over 80% of it dominated by “mom and pop” operators, some of which are poised to sell their properties.  Self storage facilities are selling for “all time high prices” due to the low cost of capital.

b. Challenges With Internet Marketing – The fact is the for many self storage facilities, over 50% of their new business is derived from advertising from the internet. Many “mom and pop” operators are having difficulties in properly getting their facilities marketed correctly on the internet.  This is not a problem for the “well financed” Self Storage REIT companies.  As the Self Storage REITs continue to improved their internet marketing presence, this hurts the smaller operators financial positions which can create opportunities for larger companies to buy them.

Self Storage REITs Should have a strong Spring and Summer 

Historically, the spring and summer months are the busiest times of year for self storage rentals.  The result of this fact is that Self Storage REIT companies are in a perfect position to improve their financial numbers.

Are you in the market to rent a self storage unit in South Orange County?  San Clemente Self Storage is the market leader of self storage in the City of San Clemente and offers affordable, clean, and secure storage unit rentals. Give San Clemente Self Storage a call today at 949-366-1133.



Self Storage REITS – 4th Qtr 2013 Final Numbers

Historically, the slowest quarter of operations for the self storage industry is the 4th quarter.  However the 4th quarter of 2013 showed no such slowing, with the major publicly traded Self Storage companies reporting almost no decline in occupancy rates.  Historical 15 year lows of new development, continue to allow existing facilities to improve or maintain high occupancy levels.
Historical Self Storage Occupany Levels








2013 Results – Share Prices Low Growth, but Profits High

2013 Financial Results Self Storage REITs

Although share prices of the publicly traded REITS only rose 4.76%, the companies with in the group showed great financial results with same store sales solidly up. In fact, the Self Storage REITS should be poised for a strong 2014, if interest rates continue to remain low.

2013 Same Store Sales Self Storage REITs









2014 Should Be a Good Year for Self Storage Operators

The low self storage vacancy levels should continue to pressure to increase rental prices. With strong demand for acquisitions of self storage properties, values should also continue to grow. The self storage industry is additionally poised to improve as the overall economy gets better relative to employment, housing, and pressure to keep low interest rates.

If you are in the market to rent a self storage unit in San Clemente, San Clemente Self Storage is here to help.  We are currently offering a 15% rent discount, plus the Free use of our move in truck and driver.  Although storage unit inventory is tight, we still have some great opportunities for you to get a low rental rate and a self storage unit to meet your needs. Call San Clemente Self Storage today at 949-366-1133.

Self Storage REITs – Rebound in February 2014

The self storage industry is starting to have a nice rebound in 2014.  Since the beginning of January 2014, the year to date publicly traded Self Storage REITs have a combine share price increase return 9.16%.  The current leader in the sector is ExtraSpace, showing a 12.25% increase year to date increase as of February 10, 2013.

February 10 2013 REIT  Benchmark

Over the past decade, self storage investments have proven to have the best overall return on investment in the USA publicly traded Commercial Real Estate Real Estate Investment Trusts.

The self storage business is fairly recession proof.  Meaning that in times of transition, which recessions create – people moving due to job displacement etc… self storage meets that intermediate storage solutions created by a recessionary environment.

Storage in San Clemente CA

San Clemente Self Storage is a perfect example of a self storage facility that can help people during times of transition. For example, 15% of the tenants in the San Clemente Self Storage facility are military personnel. San Clemente Self Storage offers military discounts and understands the special self storage needs arising out of a deployment.

San Clemente Self Storage is perfect solution for people or businesses seeking storage in San Clemente CA.  Give us a call today at 949-366-1133.