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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H e n s n o t l a y i n g e g g s ? C a l l i n t h e f o x . VISIT LOCKERFOX.COM/OPERATORS OR CALL (704) 251-0644 Online auctions are growing up Our long-term strategy is to continue to grow our platform and size in ways that are beneficial to shareholders. We're not just interested in growth just for growth's sake. It's certainly true that having such a unique structure created challenges for us at the beginning, especially as it related to Wall Street. We had to explain a whole new approach to management, and a whole new approach to growth and delivering shareholder value. Initially, we were penalized for that in terms of our stock price. But as we continued to deliver results, not just on growth but on actual profitability, that kind of performance has come back to the market. They've seen it and, ultimately, we now trade pretty much at the same kind of multiples as all our peers. In fact, because of our high growth rate, we trade even in the higher part of that range, so that penalty we suffered initially as a new stock is gone. That's been very rewarding for us. What's the company's lon g-t erm strategy? What will it look like in three to five years? Our lon g-t erm strategy is to continue to grow our platform and size in ways that are beneficial to shareholders. We're not just interested in growth just for growth's sake. It needs to be growth that delivers value. By that I mean, will this growth allow us to continually increase our dividends per share? Will it allow us to ultimately improve our FFO per share in such a way that the stock price will continue to appreciate? That's really the focus of our strategy. We've stated publicly that we want to increase our FFO per share by an average of 10 percent or more per year for several years. We think we can do that in two ways: by continually improving management and performance of our existing stores through continual new improvements in technology and platform tools for marketing, plus growing the portfolio through acquisitions. Our target is to grow the number of stores we have under our ownership by about 10 percent per year as well. Right now, we're at 550 stores, soon to go to 660. Three years from now, we would anticipate being around 800 stores. Five years from now, we'll probably be in the range of 950 to 1, 000 stores. Most important to us is that the growth is beneficial to our shareholders. We won't just grow to grow. We'll grow to create value for our shareholders and do a better job in managing our properties for our owners and customers. October 2018 I ISS 49

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