Inside Self-Storage

OCT 2018

Inside Self-Storage (ISS) is an information source for industry owners, managers, developers and investors covering news, trends, facility operation, finance, real estate, construction, development, marketing, technology, insurance and legality.

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least 30 percent and six others showing increases of at least 20 percent. This appears to have been primarily driven through acquisitions, facility renovation and new development. The bottom quarter of the list is a mix of moderate to modest gains, with several operators remaining static or showing small declines year over year. Among the most impressive gains was Prime Group Holdings LLC, which moved into the eighth spot with 33.7 percent growth. Its owned portfolio sits at 210 facilities comprising 13.5 million square feet. SmartStop Asset Management LLC also showed large gains among those in the top 10, growing its portfolio from 8.3 million to nearly 10 million square feet year over year. Storage Rentals of America (No. 29), Investment Real Estate Management LLC (No. 62), Professional Management Inc. (No. 93) and Storage Masters (No. 96) all posted owned square-footage gains of at least 30 percent. Storage Masters led the group, jumping from 400,000 to 609,000 net rentable square feet, a 52.2 percent gain. Professional Management showed the second-largest gain on the list, growing its owned portfolio from 461,000 to 634,000 square feet, a 37.6 percent increase. Investment Real Estate Management was right behind, leaping from 886,000 to 1.2 million square feet. Among the notable declines was Simply Self Storage, whose owned portfolio of 7.9 million square feet fell 52.1 percent year over year. Those numbers reflect the sale of 112 facilities from a private real estate fund managed by Toronto-based Brookfield Asset Management Inc. to a joint venture led by NSAT. The $1.325 billion deal representing 8.7 million rentable square feet was expected to close in September. While Simply chose to withhold those numbers from its portfolio in anticipation of closing, NSAT also didn't include them in its reporting since the deal was still pending at the time of data collection. Managed Space The largest gains in managed square footage were posted by companies in the top half of the list for the second consecutive year. Among the top 10 companies, six posted square-footage gains of 24 percent or greater, though those surges were modest compared to the five increases of more than 40 percent logged last year. The top 10 management firms are again dominated by the largest operators, with TRACKING THE BIG 6 BY NET RENTABLE SQUARE FEET (Total Portfolio) Company 2016 2017 Increase 2018 Increase % Owned Public Storage Inc. 161M 167M 3.7% 171M 2.4% 100% Extra Space Storage Inc. 86M 110.8M 28.8% 118.5M 6.9% 69.2% CubeSmart 49.1M 160.5M 23.2% 69.5M 14.9% 48.9% U-Haul International Inc. 49.1M 52.6M 7.1% 57M 8.4% 57.3% Life Storage Inc. 45.5M 49M 7.69% 50.5M 3% 78.9% National Storage Affiliates Trust 26.2M 39.7M 51.5% 43.8M 10.3% 77.6% 2018 NOTABLE DOWNSIZING IN FACILITY OWNERS Company 2017 Rank Square Feet Facilities 2018 Rank Square Feet Facilities Square Feet Decrease RHW Capital Management Group LLC 40 2.5M 34 90 671K 7 73.1% Simply Self Storage 7 16.4M 210 12 7.9M 96 52.1% Absolute Storage Management Inc. 56 1.2M 20 76 939K 17 23.5% A-American Storage Management Co. Inc. 55 1.3M 19 75 970K 17 23.1% TRACKING THE BIG 6 BY NUMBER OF FACILITIES (Total Portfolio) Company 2016 2017 Increase 2018 Increase % Owned Public Storage Inc. 2,507 2,574 2.7% 2,615 1.6% 100% Extra Space Storage Inc. 1,412 1,470 4.1% 1,568 6.7% 69.1% U-Haul International Inc. 1,393 1,469 5.5% 1,557 6% 68.9% CubeSmart 741 901 21.6% 1,023 13.5% 47.5% Life Storage Inc. 651 697 7.1% 718 3% 78.8% National Storage Affiliates Trust 433 629 45.3% 705 12.1% 78.2% Note: This table excludes companies making their debut in the Top-Operators List for which ISS has no 2017 data. 2018 NOTABLE INCREASES IN FACILITY OWNERS Company 2017 Rank Square Feet Facilities 2018 Rank Square Feet Facilities Square Feet Decrease Storage Masters 98 400K 5 96 609K 6 52.2% Professional Management Inc. 95 461K 3 93 634K 4 37.6% Investment Real Estate Management LLC 68 886K 19 62 1.2M 27 35% Prime Group Holdings LLC 9 10.1M 175 8 13.5M 210 33.7% Storage Rentals of America 39 2.5M 58 29 3.8M 81 33.1% HAN Capital 93 510K 15 91 658K 24 29% Miami City Self Storage 69 881K 11 67 1.1M 13 26.4% Andover Properties LLC 48 1.7M 27 44 2.1M 32 24.6% Value Store It Management Inc. 67 942K 12 64 1.2M 15 24.2% SmartStop Asset Management LLC 12 8.3M 114 9 9.98M 135 19.9% 42 ISS I October 2018 www.insideselfstorage.com

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