PDF
4Q20 supplement Financial Supplement
Q4 · 2020
Table of Contents
Analyst Coverage ............................................................................ 1 Earnings Release Text ...................................................................... 2 Balance Sheet Data ......................................................................... 8 Consolidated Statements of Operations .............................................. 9 Computation of Funds from Operations (FFO) ...................................... 10 Same Store Data (Quarter) ............................................................... 11 Same Store Data (Year) ................................................................... 12 Other Data ..................................................................................... 12 Consolidated Balance Sheet Trailing Five Quarters ............................. 14 Consolidated Statements of Operations Trailing Five Quarters ............. 15 Same Store Data Trailing Five Quarters ........................................... 16 Funds From Operations Trailing Five Quarters ................................... 17 Debt Maturity Schedule, Debt Covenants & Related Data ...................... 18 Same Store Performance by Market and Other Data (Quarter)............... 19 Same Store Performance by Market (Year) ......................................... 20 Certificate of Occupancy & Lease-up Performance................................. 21 Unconsolidated Joint Venture Detail.................................................... 22 Capital Structure ............................................................................. 23 Life Storage Property Locations ......................................................... 24
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Analyst Coverage
Bank of America BMO Capital Markets Citi Evercore ISI Green Street Advisors Jefferies KeyBanc Capital Markets Raymond James Stifel Nicolaus Truist Securities Wells Fargo Securities
Jeffrey Spector Juan Sanabria Michael Bilerman / Smedes Rose Steve Sakwa / Samir Khanal Spenser Allaway Jonathan Petersen Todd Thomas Jonathon Hughes Steve Manaker Ki Bin Kim Todd Stender
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FOR IMMEDIATE RELEASE February 22, 2021
Life Storage, Inc. Reports Fourth Quarter and Full Year 2020 Results
Buffalo, NY, February 22, 2021 Life Storage, Inc. (NYSE:LSI), a leading national owner and operator of self-storage properties, reported operating results for the quarter and year ended December 31, 2020. All share and per share information has been retrospectively adjusted to reflect the January 2021 three-for-two stock split made in the form of a 50% stock dividend.
Highlights for the Fourth Quarter Included:
· Generated net income attributable to common shareholders of $41.6 million, or $0.57 per fully diluted common share.
· Achieved adjusted funds from operations ("FFO")(1) per fully diluted common share of $1.07, an 11.5% increase over the same period in 2019.
· Increased same store revenue by 4.9% and same store net operating income ("NOI")(2) by 6.8%, year-over-year.
· Acquired nine stores for $113.0 million, including one store from one of our unconsolidated joint ventures for $11.5 million.
· Added 21 stores to the Company's third-party management platform. Highlights for the Full Year Included:
· Generated net income attributable to common shareholders of $151.6 million, or $2.13 per fully diluted common share.
· Achieved adjusted funds from operations ("FFO")(1) per fully diluted common share of $3.97, a 5.9% increase over the same period in 2019.
· Increased same store revenue by 1.6% and same store net operating income ("NOI")(2) by 2.3%, year-over-year.
· Acquired 40 stores for $532.6 million, including 32 stores from three of our unconsolidated joint ventures for $431.1 million.
· Added 77 stores to the Company's third-party management platform; the Company grew its third-party management portfolio 11% in 2020 despite acquiring 32 previously managed stores from unconsolidated joint ventures.
· Completed a $400 million offering of 2.2% Senior Unsecured Notes due 2030. · Bolstered Warehouse Anywhere's ecommerce solution through a partnership with
Deliverr, a leading technology-enabled fulfillment organization, with the build-out of a micro-fulfillment center in Las Vegas and a second launched in Chicago in the first quarter of 2021.
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· Launched "Rent Now 2.0," the Company's dynamic pricing, second generation, fullydigital rental platform that allows customers to self-serve and move into their storage unit with no human interaction; the new pricing alternatives allow customers to select a storage unit from one of three convenience and pricing-based tiers according to their individual needs and preferences.
Joe Saffire, the Company's Chief Executive Officer, stated, "I am so proud of what our team accomplished in 2020 despite the challenges of the COVID-19 pandemic. We quickly adapted to operate in a manner designed to keep our teammates and customers safe. Rent Now contributed to differentiated performance as we grew same store occupancy significantly by year end, up more than 300 basis points, year-over-year. We invested more than $500 million in store acquisitions, while growing our total store count by 8.5%. Additionally, we positioned Warehouse Anywhere to capitalize on the significant consumer shift toward ecommerce. I believe we are very well positioned to continue executing on our strategic initiatives to further grow shareholder value in 2021 and beyond."
FINANCIAL RESULTS:
In the fourth quarter of 2020, the Company generated net income attributable to common shareholders of $41.6 million or $0.57 per fully diluted common share, compared to net income attributable to common shareholders of $43.5 million, or $0.62 per fully diluted common share, in the fourth quarter of 2019. Net income in the same quarter last year benefited from a $4.8 million gain on sales of storage facilities and real estate.
For the year ended December 31, 2020, the Company achieved $151.6 million of net income attributable to common shareholders, or $2.13 per fully diluted common share, as compared to $258.7 million, or $3.70 per fully diluted common share, for the year ended December 31, 2019. The decrease in net income was largely attributable to the $104.4 million gain on sale of storage facilities in 2019.
Funds from operations for the quarter were $1.02 per fully diluted common share compared to $0.97 for the same period last year. After adjusting for the $4.0 million impact of a make-whole payment on a repaid note, adjusted FFO per fully diluted common share for the quarter was $1.07, compared to $0.96, after adjusting for $1.1 million for a gain on sale of land and acquisition fees, for the quarter ended December 31, 2019.
For the year ended 2020, FFO per fully diluted common share was $3.90 compared to $3.80 for the same period last year. Absent the $5.0 million impact in 2020 due to the makewhole payment, uninsured damages and customer reinsurance claims (net) resulting from hurricane damage in September 2020, a gain on sale of land and acquisition fees, adjusted FFO per fully diluted common share for the year was $3.97. Adjusted FFO for the year ended 2019 was $3.75, after adjusting for the impact of $3.4 million of a lawsuit settlement, gain on sale of land, acquisition fee income and costs related to an officer's retirement.
OPERATIONS:
Revenues for the 515 stabilized stores wholly owned by the Company since December 31, 2018 increased 4.9% in the fourth quarter of 2020 compared to the same quarter of 2019. The increase largely resulted from the net impact of a 310 basis point increase in average occupancy.
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Same store operating expenses increased 1.0% for the fourth quarter of 2020 compared to the prior year period, the result of increased repair and maintenance, payroll and benefits, office and other operating expense and insurance costs. The increases were offset by decreases in real estate taxes, utilities and marketing expenses. Same store NOI increased 6.8% in the fourth quarter of 2020 as compared to the fourth quarter of 2019.
Same store payroll and benefits included a one-time bonus payment to select store team members totaling $0.3 million in aggregate in recognition of their successful efforts rapidly implementing revised store procedures in response to the COVID-19 pandemic. Had that payment not occurred, same store payroll and benefits would have increased only 0.7%, rather than 3.9%, in the fourth quarter of 2020, compared to the same period last year.
During the fourth quarter of 2020, the Company achieved same store revenue growth in 28 of its 30 major markets. Overall, the markets with the strongest positive revenue impact were New York-Newark-Jersey City, New England-Other, Buffalo-Upstate, Boston and Chicago.
PORTFOLIO TRANSACTIONS:
During the quarter, the Company acquired nine stores in Florida (3), California (2), New Jersey (1), Missouri (1), South Carolina (1) and New York (1) for a total purchase price of $113.0 million.
At December 31, 2020, the Company was under contract to acquire 10 self-storage facilities in California (1), Florida (8) and South Carolina (1) for an aggregate purchase price of $111.3 million. During January 2021, the Company completed the acquisition of the two self-storage facilities in California and South Carolina for an aggregate purchase price of $26.3 million. Subsequent to December 31, 2020, the Company entered into contracts to acquire three self-storage facilities in Washington (2) and New York (1) for an aggregate purchase price of $87.9 million. The purchases of the remaining facilities are subject to customary conditions to closing, and there is no assurance that any of these facilities will be acquired.
THIRD-PARTY MANAGEMENT:
The Company continues to aggressively and profitably grow its third-party management platform. During the quarter, the Company added 21 stores. As of quarter end, the Company managed 330 facilities in total, including those in which it owns a minority interest.
FINANCIAL POSITION:
At December 31, 2020, the Company had approximately $54.4 million of cash on hand, and approximately $499.9 million available on its line of credit.
During the three months ended December 31, 2020, the Company issued 1,877,742 shares of common stock under its continuous equity offering program at a weighted average issue price of $75.60 per share, generating net proceeds after expenses of $140.5 million. The Company filed a new $500 million continuous equity offering program on December 29, 2020, and in early January 2021 issued an additional 1,205,009 shares of common stock under this program at a weighted average issue price of $78.79, generating net proceeds after expenses of $94.0 million.
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Below are key financial ratios at December 31, 2020:
· Debt to Enterprise Value (at $79.59/share) · Debt to Book Cost of Storage Facilities · Debt to Recurring Annualized EBITDA · Debt Service Coverage
27.2% 41.5% 5.4x 4.7x
STOCK SPLIT AND COMMON STOCK DIVIDEND:
Subsequent to quarter end, the Company completed a three-for-two stock split, which was made in the form of a 50% stock dividend. The additional shares were distributed on January 27, 2021 and Life Storage's common stock began trading on a split-adjusted basis on January 28, 2021.
Also subsequent to quarter end, Life Storage's Board of Directors approved a quarterly dividend of $0.74 per share, or $2.96 annualized, on a post-split basis. The dividend was paid on January 27, 2021 to shareholders of record on January 15, 2021.
YEAR 2021 EARNINGS GUIDANCE:
The following assumptions covering operations have been utilized in formulating guidance for 2021:
Year 2021 Earnings Guidance
Same Store Revenue Same Store Operating Costs (excluding property taxes) Same Store Property Taxes Total Same Store Operating Expenses Same Store Net Operating Income General & Administrative
Current Guidance Range
3.75% - 4.75%
2.25% - 3.25% 6.75% - 7.75% 4.00% - 5.00% 3.75% - 4.75%
$56M - $57M
Expansions & Enhancements Capital Expenditures Wholly Owned Acquisitions Joint Venture Investments
$40M - $50M $21M - $26M $350M - $450M $20M - $25M
Adjusted Funds from Operations per Share
$4.18 - $4.28
Reconciliation of Guidance Earnings per share attributable to
common shareholders - diluted Plus: real estate depreciation and
amortization FFO per share
1Q 2021 Range or Value
FY 2021 Range or Value
$0.55 - $0.59
$2.39 - $2.49
0.43 - 0.43 $0.98 - $1.02
1.79 - 1.79 $4.18 - $4.28
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The Company's 2021 same store pool consists of the 531 stabilized stores wholly owned since December 31, 2019. Twenty-two of the stores purchased through December 31, 2020 at certificate of occupancy or that were in the early stages of lease-up are not included, regardless of their current occupancies. The Company believes that occupancy levels achieved during the lease-up period, using discounted rates, are not truly indicative of a new store's performance, and therefore do not result in a meaningful year-over-year comparison in future years. The Company will include such stores in its same store pool in the second year after the stores achieve 80% sustained occupancy using market rates and incentives.
FORWARD LOOKING STATEMENTS:
When used in this news release, the words "intends," "believes," "expects," "anticipates," and similar expressions are intended to identify "forward-looking statements" within the meaning of that term in Section 27A of the Securities Act of 1933 and in Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause our actual results, performance or achievements to be materially different from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to, the effect of competition from new self-storage facilities, which would cause rents and occupancy rates to decline; risks associated with the COVID-19 global health crisis or similar events, including but not limited to (i) the impact to the health of our employees and/or customers, (ii) the negative impacts to the economy and to self-storage customers which could reduce the demand for self-storage or reduce our ability to collect rent, (iii) reducing or eliminating our ability to increase rents charged to our current or future customers, (iv) limiting our ability to collect rent from or evict past due customers, (v) we could see an increase in move-outs of longer-term customers due to the economic uncertainty and significant rise in unemployment resulting from the COVID-19 global health crisis which could lead to lower occupancies and reduced average rental rates as longer-term customers are replaced with new customers at lower rates, and (vi) potential negative impacts on the cost and availability of debt and equity which could have a negative impact on our capital and growth plans; the Company's ability to evaluate, finance and integrate acquired self-storage facilities into the Company's existing business and operations; the Company's ability to effectively compete in the industry in which it does business; the Company's existing indebtedness may mature in an unfavorable credit environment, preventing refinancing or forcing refinancing of the indebtedness on terms that are not as favorable as the existing terms; interest rates may fluctuate, impacting costs associated with the Company's outstanding floating rate debt; the Company's ability to comply with debt covenants; any future ratings on the Company's debt instruments; regional concentration of the Company's business may subject it to economic downturns in the states of Florida and Texas; the Company's reliance on its call center; the Company's cash flow may be insufficient to meet required payments of operating expenses, principal, interest and dividends; and tax law changes that may change the taxability of future income.
CONFERENCE CALL:
Life Storage will hold its Fourth Quarter Earnings Release Conference Call at 9:00 a.m. Eastern Time on Tuesday, February 23, 2021. To help avoid connection delays, participants are encouraged to pre-register using this link. Anyone unable to pre-register may access the conference call at 844-707-6940 (domestic) or 412-317-5702 (international). Management
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will accept questions from registered financial analysts after prepared remarks; all others are encouraged to listen to the call via webcast by accessing the investor relations tab at lifestorage.com. The webcast will be archived for a period of six months.
ABOUT LIFE STORAGE, INC:
Life Storage, Inc. is a self-administered and self-managed equity REIT that is in the business of acquiring and managing self-storage facilities. Located in Buffalo, New York, the Company operates more than 900 storage facilities in 31 states and in the province of Ontario, Canada. The Company serves both residential and commercial storage customers with storage units rented by month. Life Storage consistently provides responsive service to approximately 500,000 customers, making it a leader in the industry. For more information visit http://invest.lifestorage.com. Contact: Life Storage, Inc. David Dodman (716) 229-8284 ddodman@lifestorage.com
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Life Storage, Inc.
Balance Sheet Data
(unaudited)
(dollars in thousands) Assets
Investment in storage facilities: Land Building, equipment and construction in progress
Less: accumulated depreciation Investment in storage facilities, net Cash and cash equivalents Accounts receivable Receivable from joint ventures Investment in joint ventures Prepaid expenses Intangible asset - in-place customer leases Trade name Other assets
Total Assets
Liabilities Line of credit Term notes, net Accounts payable and accrued liabilities Deferred revenue Mortgages payable Total Liabilities
Noncontrolling redeemable Operating Partnership Units at redemption value
Equity Common stock Additional paid-in capital Accumulated deficit Accumulated other comprehensive loss Total Shareholders' Equity Total Liabilities and Shareholders' Equity
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December 31, 2020
December 31, 2019
$
951,813 $
884,235
4,378,510
3,865,238
5,330,323 (873,178)
4,749,473 (756,333)
4,457,145
3,993,140
54,400
17,458
15,464
12,218
1,064
1,302
143,042
154,984
8,326
7,771
5,409
2,910
16,500
16,500
26,498
26,681
$
4,727,848 $
4,232,964
$
-$
65,000
2,155,457 112,654 17,416 37,777
1,858,271 103,942 11,699 34,851
2,323,304
2,073,763
26,446
26,307
495
467
2,671,311
2,376,723
(288,667)
(238,338)
(5,041)
(5,958)
2,378,098
2,132,894
$
4,727,848 $
4,232,964
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Life Storage, Inc.
Consolidated Statements of Operations
(unaudited)
(dollars in thousands, except share data)
Revenues Rental income Other operating income Management and acquisition fee income Total operating revenues
Expenses Property operations and maintenance Real estate taxes General and administrative Payments for rent Depreciation and amortization Amortization of in-place customer leases Total operating expenses
Gain on sale of storage facilities Gain on sale of real estate Income from operations
Other income (expense) Interest expense (A) Interest income Equity in income of joint ventures
October 1, 2020 to
December 31, 2020
October 1, 2019 to
December 31, 2019
January 1, 2020 to
December 31, 2020
January 1, 2019 to
December 31, 2019
$
145,852 $
129,150 $
539,554 $
510,774
16,353 4,300
14,286 4,118
59,811 17,406
49,691 14,274
166,505
147,554
616,771
574,739
36,977 17,550 13,557
30,777
1,812 100,673
65,832
33,294 16,634 12,221
26,638
1,253 90,040
4,131 705
62,350
138,273 70,302 52,055 -
117,302 5,623
383,555
302 233,518
130,103 65,061 46,622 358
104,199 2,931
349,274
104,353 1,781
331,599
(24,959) 4
923
(20,091) 2
1,470
(86,015) 19
4,838
(76,430) 342
4,566
Net income
Net income attributable to noncontrolling interests in the Operating
Partnership
Net income attributable to common shareholders
$
Earnings per common share attributable to common shareholders -
basic
$
Earnings per common share attributable to common shareholders -
diluted
$
41,800 (213)
41,587 $
0.57 $
0.57 $
43,731 (230)
43,501 $
0.62 $
0.62 $
152,360 (789)
151,571 $
2.13 $
2.13 $
260,077 (1,378)
258,699
3.70
3.70
Common shares used in basic earnings per share calculation Common shares used in diluted earnings per share calculation Dividends declared per common share
73,100,672
69,902,115
71,054,907
69,875,445
73,275,641
70,030,851
71,177,763
69,979,595
$
0.7133 $
0.6667 $
2.8533 $
2.6667
(A) Interest expense for the period ending December 31 consists of the following
Interest expense
$
Make-whole payment on repaid note
Amortization of debt issuance costs
Total interest expense
$
20,325 $ 4,030 604
24,959 $
19,477 $ -
614 20,091 $
79,584 $ 4,030 2,401
86,015 $
74,101 -
2,329 76,430
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Life Storage, Inc.
Computation of Funds From Operations (FFO) (1)
(unaudited)
(dollars in thousands, except share data)
Net income attributable to common shareholders Noncontrolling interests in the Operating Partnership Depreciation of real estate and amortization of intangible
assets exclusive of debt issuance costs Depreciation and amortization from unconsolidated joint ventures Gain on sale of storage facilities Funds from operations allocable to noncontrolling
interest in Operating Partnership Funds from operations available to common shareholders FFO per share - diluted
Adjustments to FFO Make-whole payment on repaid note Uninsured damages and customer reinsurance claims, net Lawsuit settlement Gain on sale of land Acquisition fee Costs related to officer's retirement Funds from operations resulting from non-recurring items
allocable to noncontrolling interest in Operating Partnership Adjusted funds from operations available to common shareholders Adjusted FFO per share - diluted
Common shares - diluted
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October 1, 2020 to
December 31, 2020
October 1, 2019 to
December 31, 2019
January 1, 2020 to
December 31, 2020
January 1, 2019 to
December 31, 2019
$
41,587 $
43,501 $
151,571 $
258,699
213
230
789
1,378
31,955 1,311 -
27,310 1,727 (4,131)
120,512 5,814 -
105,107 6,195
(104,353)
(382)
(361)
(1,443)
(1,417)
74,684
68,276
277,243
265,609
$
1.02 $
0.97 $
3.90 $
3.80
$
4,030 $
-
-
-
-
-
-$ (705) (442) -
4,030 $ 1,546
(302) (217)
-
(1,651) (1,781) (442) 443
(21) 78,693
6 67,135
(26) 282,274
18 262,196
$
1.07 $
0.96 $
3.97 $
3.75
73,275,641
70,030,851
71,177,763
69,979,595
Life Storage, Inc.
Computation of Net Operating Income (2)
(unaudited)
(dollars in thousands)
Net Income General and administrative Payments for rent Depreciation and amortization Gain on sale of storage facilities Gain on sale of real estate Interest expense Interest income Equity in income of joint ventures Net operating income
Same store (4) Net operating income related to tenant reinsurance Other stores and management fee income Total net operating income
October 1, 2020 to
December 31, 2020
October 1, 2019 to
December 31, 2019
January 1, 2020 to
December 31, 2020
January 1, 2019 to
December 31, 2019
$
41,800 $
13,557
-
32,589
-
-
24,959
(4) (923)
$
111,978 $
43,731 $ 12,221
27,891 (4,131)
(705) 20,091
(2) (1,470) 97,626 $
152,360 $ 52,055 -
122,925 -
(302) 86,015
(19) (4,838) 408,196 $
260,077 46,622 358
107,130 (104,353)
(1,781) 76,430
(342) (4,566) 379,575
$
88,008 $
7,760 16,210
$
111,978 $
82,426 $ 7,012 8,188
97,626 $
331,556 $ 29,013 47,627
408,196 $
324,020 26,298 29,257
379,575
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Life Storage, Inc.
Quarterly Same Store Data (3) (4) 515 mature stores owned since 12/31/18
(unaudited) (dollars in thousands)
October 1, 2020 to
December 31, 2020
October 1, 2019 to
December 31, 2019
Change
Revenues: Rental income Other operating income
Total operating revenues
$
127,133 $
121,345 $
1,658
1,462
128,791
122,807
5,788 196
5,984
Expenses: Payroll and benefits Real estate taxes Utilities Repairs and maintenance Office and other operating expense Insurance Advertising Internet marketing Total operating expenses
9,881 14,522
3,156 4,778 4,160 1,610
48 2,628 40,783
9,511 15,357
3,499 3,890 3,833 1,478
168 2,645 40,381
370 (835) (343) 888 327 132 (120)
(17) 402
Net operating income (2)
$
88,008 $
82,426 $
5,582
Percentage Change
4.8% 13.4%
4.9%
3.9% -5.4% -9.8% 22.8% 8.5% 8.9% -71.4% -0.6% 1.0%
6.8%
QTD Same store move ins QTD Same store move outs
46,701 46,610
44,112 45,749
2,589 861
Other Comparable Quarterly Same Store Data (4)
(unaudited)
2019 Same store pool (502 stores) Revenues Expenses
Net operating income
October 1, 2020 to
December 31, 2020
October 1, 2019 to
December 31, 2019
Change
$
126,133 $
120,337 $
39,675
39,376
$
86,458 $
80,961 $
5,796 299
5,497
Percentage Change
4.8% 0.8% 6.8%
2018 Same store pool (486 stores) Revenues Expenses
Net operating income
$
121,739 $
116,064 $
38,169
37,559
$
83,570 $
78,505 $
5,675 610
5,065
4.9% 1.6% 6.5%
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Life Storage, Inc.
Year to Date Same Store Data (3) (4) 515 mature stores owned since 12/31/18
(unaudited)
January 1, 2020
January 1, 2019
to
to
(dollars in thousands)
December 31, 2020 December 31, 2019
Change
Revenues: Rental income Other operating income
Total operating revenues
$
490,343 $
482,006 $
6,298
6,617
496,641
488,623
8,337 (319)
8,018
Expenses: Payroll and benefits Real estate taxes Utilities Repairs and maintenance Office and other operating expense Insurance Advertising Internet marketing Total operating expenses
37,761 62,958 13,894 15,579 14,998
6,017 233
13,645 165,085
38,864 61,054 15,199 16,582 15,529
5,909 877
10,589 164,603
(1,103) 1,904 (1,305) (1,003)
(531) 108 (644) 3,056 482
Net operating income (2)
$
331,556 $
324,020 $
7,536
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Percentage Change
1.7% -4.8% 1.6%
-2.8% 3.1% -8.6% -6.0% -3.4% 1.8% -73.4% 28.9% 0.3%
2.3%
YTD Same store move ins YTD Same store move outs
Life Storage, Inc.
Other Data - unaudited
Weighted average quarterly occupancy Occupancy at December 31 Rent per occupied square foot
199,200 182,563
193,099 192,758
Same Store (3) 2020
2019
93.1%
90.0%
92.9%
89.6%
$14.67
$14.66
6,101 (10,195)
All Stores (5) 2020 92.4% 92.2% $14.69
2019 88.7% 88.2% $14.63
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Life Storage, Inc.
Other Data - unaudited (continued)
Investment in Storage Facilities: (unaudited) The following summarizes activity in storage facilities during the twelve months ended December 31, 2020:
Beginning balance Property acquisitions Improvements and equipment additions: Expansions Roofing, paving, and equipment: Stabilized stores Recently acquired stores Change in construction in progress (Total CIP $18.6 million) Dispositions and Impairments
Storage facilities at cost at period end
$
4,749,473
523,922
41,317
24,206
1,546
(9,632) (509)
$
5,330,323
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Comparison of Selected G&A Costs (unaudited)
Quarter Ended December 31, 2020 December 31, 2019
Year Ended December 31, 2020 December 31, 2019
Management and administrative salaries and benefits Training Call center Life Storage Solutions costs Income taxes Legal, accounting and professional Lawsuit settlement Other administrative expenses (6)
$
9,784 $
6,583 $
31,800 $
26,667
320
409
887
1,197
865
702
3,160
2,960
467
405
1,029
1,300
(1,001)
544
1,628
2,249
430
1,293
3,360
4,100
2,692
2,285
10,191
(1,651) 9,800
$
13,557 $
12,221 $
52,055 $
46,622
Net rentable square feet Wholly owned properties Joint venture properties Third party managed properties
December 31, 2020 43,272,425 6,753,232 17,689,773 67,715,430
December 31, 2020 December 31, 2019
Common shares outstanding Operating Partnership Units outstanding
74,211,920 334,149
70,013,900 369,699
(1) We believe that Funds from Operations ("FFO") provides relevant and meaningful information about our operating performance that is necessary, along with net earnings and cash flows, for an understanding of our operating results. FFO adds back historical cost depreciation, which assumes the value of real estate assets diminishes predictably in the future. In fact, real estate asset values increase or decrease with market conditions. Consequently, we believe FFO is a useful supplemental measure in evaluating our operating performance by disregarding (or adding back) historical cost depreciation.
Funds from operations is defined by the National Association of Real Estate Investment Trusts, Inc. ("NAREIT") as net income available to common shareholders computed in accordance with generally accepted accounting principles ("GAAP"), excluding gains or losses on sales of properties, plus impairment of real estate assets, plus depreciation and amortization and after adjustments to record unconsolidated partnerships and joint ventures on the same basis. We believe that to further understand our performance, FFO should be compared with our reported net income and cash flows in accordance with GAAP, as presented in our consolidated financial statements.
Our computation of FFO may not be comparable to FFO reported by other REITs or real estate companies that do not define the term in accordance with the current NAREIT definition or that interpret the current NAREIT definition differently. FFO does not represent cash generated from operating activities determined in accordance with GAAP, and should not be considered as an alternative to net income (determined in accordance with GAAP) as an indication of our performance, as an alternative to net cash flows from operating activities (determined in accordance with GAAP) as a measure of our liquidity, or as an indicator of our ability to make cash distributions.
(2) Net operating income or "NOI" is a non-GAAP (generally accepted accounting principles) financial measure that we define as total continuing revenues less continuing property operating expenses. NOI also can be calculated by adding back to net income: interest expense, impairment and casualty losses, operating lease expenses, depreciation and amortization expense, any losses on sale of real estate, acquisition related costs, general and administrative expense, and deducting from net income: income from discontinued operations, interest income, any gains on sale of real estate, and equity in income of joint ventures. We believe that NOI is a meaningful measure to investors in evaluating our operating performance, because we utilize NOI in making decisions with respect to capital allocations, in determining current property values, and in comparing period-to-period and market-to-market property operating results. Additionally, NOI is widely used in the real estate industry and the self-storage industry to measure the performance and value of real estate assets without regard to various items included in net income that do not relate to or are not indicative of operating performance, such as depreciation and amortization, which can vary depending on accounting methods and book value of assets. NOI should be considered in addition to, but not as a substitute for, other measures of financial performance reported in accordance with GAAP, such as total revenues, operating income and net income.
(3) Includes the stores owned and/or managed by the Company for the entire periods presented that are consolidated in our financial statements. Does not include unconsolidated joint ventures or other stores managed by the Company.
(4) Revenues and expenses do not include items related to tenant reinsurance.
(5) Does not include unconsolidated joint venture stores or other stores managed by the Company.
(6) Other administrative expenses include office rent, travel expense, investor relations and miscellaneous other expenses.
Page 13
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Life Storage, Inc.
Trailing Five Quarter Information Consolidated Balance Sheet
(unaudited)
(dollars in thousands) Assets
Investment in storage facilities: Land Building, equipment and construction in progress
Less: accumulated depreciation Investment in storage facilities, net Cash and cash equivalents Accounts receivable Receivable from joint ventures Investment in joint ventures Prepaid expenses Intangible asset - in-place customer leases Trade name Other assets
Total Assets
December 31, 2020
September 30, 2020
June 30, 2020
March 31, 2020
December 31, 2019
$
951,813 $
937,030 $
904,475 $
904,475 $
884,235
4,378,510
4,263,222
3,993,901
3,979,535
3,865,238
5,330,323 (873,178)
5,200,252 (842,592)
4,898,376 (810,709)
4,884,010 (783,284)
4,749,473 (756,333)
4,457,145
4,357,660
4,087,667
4,100,726
3,993,140
54,400
110,247
9,518
20,720
17,458
15,464
13,970
11,575
11,717
12,218
1,064
3,223
797
918
1,302
143,042 8,326
143,633 10,601
147,749 9,761
147,326 11,823
154,984 7,771
5,409
5,685
1,832
3,282
2,910
16,500 26,498
16,500 27,536
16,500 25,865
16,500 26,277
16,500 26,681
$
4,727,848 $
4,689,055 $
4,311,264 $
4,339,289 $
4,232,964
Liabilities
Line of credit
$
Term notes, net Accounts payable and accrued liabilities Deferred revenue Mortgages payable
Total Liabilities
Noncontrolling redeemable Operating Partnership Units at redemption value
-$ 2,155,457
112,654 17,416 37,777
2,323,304
26,446
-$ 2,254,783
107,980 16,204 34,352
2,413,319
25,848
158,000 $ 1,859,539
89,124 14,433 34,519 2,155,615
22,968
183,000 $ 1,858,918
81,295 13,244 34,685 2,171,142
20,428
65,000 1,858,271
103,942 11,699 34,851
2,073,763
26,307
Equity Common stock Additional paid-in capital Accumulated deficit Accumulated other comprehensive loss Total Shareholders' Equity Total Liabilities and Shareholders' Equity
495
482
469
469
467
2,671,311
2,533,402
2,400,382
2,399,311
2,376,723
(288,667) (5,041)
(278,726) (5,270)
(262,670) (5,500)
(246,332) (5,729)
(238,338) (5,958)
2,378,098
2,249,888
2,132,681
2,147,719
2,132,894
$
4,727,848 $
4,689,055 $
4,311,264 $
4,339,289 $
4,232,964
Page 14
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Life Storage, Inc.
Trailing Five Quarter Information Consolidated Statement of Operations
(unaudited)
(dollars in thousands, except share data)
Revenues Rental income Other operating income Management and acquisition fee income Total operating revenues
Expenses Property operations and maintenance Real estate taxes General and administrative Payments for rent Depreciation and amortization Amortization of in-place customer leases Total operating expenses
Gain on sale of storage facilities Gain on sale of real estate Income from operations
Other income (expense) Interest expense Interest income Equity in income of joint ventures
Net income Noncontrolling interests in the Operating Partnership
Net income attributable to common shareholders
Earnings per common share attributable to common shareholders - basic
Earnings per common share attributable to common shareholders - diluted
Common shares used in basic earnings per share calculation
Common shares used in diluted earnings per share calculation
Dividends declared per common share
October 1, 2020
July 1, 2020
to
to
December 31, 2020 September 30, 2020
April 1, 2020 to
June 30, 2020
January 1, 2020 to
March 31, 2020
October 1, 2019 to
December 31, 2019
$
145,852 $
135,965 $
128,828 $
128,907 $
129,150
16,353 4,300
15,827 4,518
14,009 4,176
13,623 4,413
14,286 4,118
166,505
156,310
147,013
146,943
147,554
36,977 17,550 13,557
30,777
1,812 100,673
65,832
36,199 17,729 13,369
31,960
1,058 100,315
55,995
32,247 17,614 12,223
27,536
1,451 91,071
55,942
32,850 17,408 12,906
27,028
1,302 91,494
302 55,751
33,294 16,634 12,221
26,638
1,253 90,040
4,131 705
62,350
(24,959) 4
923
(20,544) 8
1,829
(20,266) 2
970
(20,246) 4
1,116
(20,091) 2
1,470
41,800
37,288
36,648
36,625
43,731
(213)
(193)
(191)
(192)
(230)
$
41,587 $
37,095 $
36,457 $
36,433 $
43,501
$
0.57 $
0.52 $
0.52 $
0.52 $
0.62
$
0.57 $
0.52 $
0.52 $
0.52 $
0.62
73,100,672
70,835,763
70,267,332
70,015,856
69,902,115
73,275,641
70,949,859
70,359,207
70,126,344
70,030,851
$
0.7133 $
0.7133 $
0.7133 $
0.7133 $
0.6667
Page 15
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Life Storage, Inc.
Trailing Five Quarter Information Quarterly Same Store Data 515 mature stores owned since 12/31/18
(unaudited)
(dollars in thousands)
October 1, 2020
July 1, 2020
to
to
December 31, 2020 September 30, 2020
April 1, 2020 to
June 30, 2020
January 1, 2020 to
March 31, 2020
October 1, 2019 to
December 31, 2019
Revenues: Rental income Other operating income Total operating revenues
$
127,133 $
124,614 $
118,521 $
120,074 $
121,345
1,658
1,781
1,411
1,448
1,462
128,791
126,395
119,932
121,522
122,807
Expenses: Payroll and benefits Real estate taxes Utilities Repairs and maintenance Office and other operating expense Insurance Advertising Internet marketing Total operating expenses
Net operating income (1)
9,881 14,522
3,156 4,778 4,160 1,610
48 2,628
40,783
9,218 16,209
4,085 3,564 3,751 1,466
62 3,737
42,092
9,120 16,113
3,128 3,305 3,391 1,466
62 4,055
40,640
9,540 16,113
3,526 3,932 3,696 1,475
62 3,225
41,569
9,511 15,357
3,499 3,890 3,833 1,478
168 2,645
40,381
$
88,008 $
84,303 $
79,292 $
79,953 $
82,426
Net operating income (1)
Same-store net operating income
$
Net operating income related to tenant reinsurance Other stores and management fee income
Total net operating income
88,008 $ 7,760
16,210 111,978
84,303 $ 7,059
11,020 102,382
79,292 $ 7,319
10,541 97,152
79,953 $ 6,877 9,855
96,685
82,426 7,012 8,188
97,626
General and administrative expense
Depreciation and amortization
Interest expense
Interest income
Gain on sale of storage facilities
Gain on sale of real estate
Equity in income of joint ventures
Net income
$
Same store weighted average quarterly occupancy
Same store period end occupancy
Same store annualized rent per occupied square foot
(13,557) (32,589) (24,959)
4 923 41,800 $
93.1%
92.9%
$14.67
(13,369) (33,018) (20,544)
8 1,829 37,288 $
93.0%
93.2%
$14.43
(12,223) (28,987) (20,266)
2 970 36,648 $
91.0%
91.9%
$14.10
(12,906) (28,330) (20,246)
4 302 1,116 36,625 $
89.3%
89.5%
$14.59
(12,221) (27,891) (20,091)
2 4,131
705 1,470 43,731
90.0%
89.6%
$14.66
(1) Net operating income or "NOI" is a non-GAAP (generally accepted accounting principles) financial measure that we define as total continuing revenues less continuing property operating expenses. NOI also can be calculated by adding back to net income: interest expense, impairment and casualty losses, operating lease expenses, depreciation and amortization expense, any losses on sale of real estate, acquisition related costs, general and administrative expense, and deducting from net income: income from discontinued operations, interest income, any gains on sale of real estate, and equity in income of joint ventures. We believe that NOI is a meaningful measure to investors in evaluating our operating performance, because we utilize NOI in making decisions with respect to capital allocations, in determining current property values, and in comparing period-to-period and market-to-market property operating results. Additionally, NOI is widely used in the real estate industry and the self-storage industry to measure the performance and value of real estate assets without regard to various items included in net income that do not relate to or are not indicative of operating performance, such as depreciation and amortization, which can vary depending on accounting methods and book value of assets. NOI should be considered in addition to, but not as a substitute for, other measures of financial performance reported in accordance with GAAP, such as total revenues, operating income and net income.
Same store revenues and expenses do not include items related to tenant reinsurance.
Page 16
Return to TOC
Life Storage, Inc.
Trailing Five Quarter Information Funds From Operations (FFO) (1)
(unaudited)
(dollars in thousands, except share data)
Net income attributable to common shareholders Noncontrolling interests in the Operating Partnership Depreciation of real estate and amortization of intangible
assets exclusive of debt issuance costs Depreciation and amortization from unconsolidated joint ventures Gain on sale of storage facility Funds from operations allocable to noncontrolling
interest in Operating Partnership Funds from operations available to common shareholders FFO per share - diluted
Adjustments to FFO Make-whole payment on repaid note Unisured damages and customer reinsurance claims, net Gain on sale of land Acquisition fee Funds from operations resulting from non-recurring items
allocable to noncontrolling interest in Operating Partnership Adjusted funds from operations available to common shareholders Adjusted FFO per share - diluted
Common shares - diluted
October 1, 2020 to
December 31, 2020
July 1, 2020 to
September 30, 2020
April 1, 2020 to
June 30, 2020
January 1, 2020 to
March 31, 2020
October 1, 2019 to
December 31, 2019
$
41,587 $
37,095 $
36,457 $
36,433 $
43,501
213
193
191
192
230
31,955 1,311 -
32,417 1,024 -
28,398 1,682 -
27,742 1,795 -
27,310 1,727 (4,131)
(382)
(367)
(348)
(346)
(361)
74,684
70,362
66,380
65,816
68,276
$
1.02 $
0.99 $
0.94 $
0.94 $
0.97
$
4,030 $
-$
-
1,546
-
-
-
-
-$ -
-$ (302) (217)
(705) (442)
(21)
(8)
-
3
6
78,693
71,900
66,380
65,300
67,135
$
1.07 $
1.01 $
0.94 $
0.93 $
0.96
73,275,641
70,949,859
70,359,207
70,126,344
70,030,851
(1) We believe that Funds from Operations ("FFO") provides relevant and meaningful information about our operating performance that is necessary, along with net earnings and cash flows, for an understanding of our operating results. FFO adds back historical cost depreciation, which assumes the value of real estate assets diminishes predictably in the future. In fact, real estate asset values increase or decrease with market conditions. Consequently, we believe FFO is a useful supplemental measure in evaluating our operating performance by disregarding (or adding back) historical cost depreciation.
Funds from operations is defined by the National Association of Real Estate Investment Trusts, Inc. ("NAREIT") as net income available to common shareholders computed in accordance with generally accepted accounting principles ("GAAP"), excluding gains or losses on sales of properties, plus impairment of real estate assets, plus depreciation and amortization and after adjustments to record unconsolidated partnerships and joint ventures on the same basis. We believe that to further understand our performance, FFO should be compared with our reported net income and cash flows in accordance with GAAP, as presented in our consolidated financial statements.
Our computation of FFO may not be comparable to FFO reported by other REITs or real estate companies that do not define the term in accordance with the current NAREIT definition or that interpret the current NAREIT definition differently. FFO does not represent cash generated from operating activities determined in accordance with GAAP, and should not be considered as an alternative to net income (determined in accordance with GAAP) as an indication of our performance, as an alternative to net cash flows from operating activities (determined in accordance with GAAP) as a measure of our liquidity, or as an indicator of our ability to make cash distributions.
Page 17
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Life Storage, Inc.
Debt Maturity Schedule, Debt Covenants and Related Data December 31, 2020
(unaudited)
(dollars in thousands) Line of credit
Maturity Date
Mar-2023
Basis of Rate
Variable
Current Interest Rate (**)
2021
2022
2023
2024
2025
Thereafter
Total
Total Remaining Available Available
1.09% $
-$
-$
-$
-$
-$
-$
- $ 500,000 $ 499,914
Term note Term note Term note Term note Term note Term note Mortgage note Mortgage note Mortgage note Mortgage note Mortgage note
Apr-2024
Fixed
4.53%
-
-
-
175,000
-
-
175,000
Jul-2026
Fixed
3.50%
-
-
-
-
-
600,000
600,000
Dec-2027
Fixed
3.88%
-
-
-
-
-
450,000
450,000
Jul-2028
Fixed
3.67%
-
-
-
-
-
200,000
200,000
Jun-2029
Fixed
4.00%
-
-
-
-
-
350,000
350,000
Oct-2030
Fixed
2.20%
-
-
-
-
-
400,000
400,000
Apr-2023
Fixed
4.07%
104
108
3,620
-
-
-
3,832
Nov-2023
Fixed
5.26%
78
83
3,567
-
-
-
3,728
Dec-2024
Fixed
4.46%
-
-
-
22,684
-
-
22,684
Jul-2025
Fixed
4.44%
119
125
130
136
5,833
-
6,343
May-2026
Fixed
5.99%
192
203
216
229
244
106
1,190
$
493 $
519 $ 7,533 $ 198,049 $ 6,077 $ 2,000,106 $ 2,212,777
(**) Rate as of December 31, 2020 based on existing debt rating. Interest rates shown do not include amortization of debt issuance costs, bond discount, and facility fees which are expected to be $5.0 million on an annual basis.
Senior Unsecured Note Covenants(***) Total Consolidated Debt to Total Assets Total Secured Debt to Total Assets Total Unencumbered Assets to Total Unsecured Debt Consolidated Income Available for Debt Service to Total
Annual Debt Service Charge
(***) Covenants further defined in the Company's Base Indenture dated as of June 20, 2016
Required < 60% < 40% > 150%
Actual 39.3% 0.7% 247.9%
Compliance Yes Yes Yes
> 1.5 : 1
4.7 : 1
Yes
Investment Grade Ratings
Baa2
(Stable)
BBB
(Stable)
Unsecured Debt and Secured Debt Summary Unsecured Debt Secured Debt
Balance $ 2,175,000 $ 37,777 $ 2,212,777
Weighted Weighted
Average
Average
Rate Maturity (Yrs)
3.5%
7.1
4.6%
3.8
3.5%
7.0
Unencumbered Versus Encumbered Assets
Unencumbered Gross Real Estate Assets Encumbered Gross Real Estate Assets
Total
Total Cost $ 5,236,835 $ 93,488 $ 5,330,323
Percent of Total 98.2% 1.8% 100.0%
Q4 2020 Percent of
NOI
Total
$ 110,395
98.6%
$ 1,583
1.4%
$ 111,978
100.0%
Page 18
Life Storage, Inc.
Same Store Performance Summary by Market and Other Data Three Months Ended December 31, 2020
(unaudited)
Return to TOC
Market
Stores
Square Feet
Avg Qtrly Rent per Occupied Square Foot
Avg Qtrly Occupancy for
the Three Months Ended
December 31,
2020
2019
Revenue
for the Three Months
Ended December 31,
2020
2019
% Change
Expenses
for the Three Months
Ended December 31,
2020
2019
% Change
NOI
for the Three Months
Ended December 31,
2020
2019
% Change
Chicago-Naperville-Elgin, IL New York-Newark-Jersey City, NY-NJ-PA Houston-The Woodlands-Sugar Land, TX New England-Other Buffalo-Upstate, NY Dallas-Fort Worth-Arlington, TX Miami-Fort Lauderdale-Pompano Beach, FL Los Angeles-Long Beach-Anaheim, CA Austin-Round Rock, TX Las Vegas-Henderson-Paradise, NV Atlanta-Sandy Springs-Alpharetta, GA Boston-Cambridge-Newton, MA-NH Sacramento-Roseville-Folsom, CA St. Louis, MO San Antonio-New Braunfels, TX Tampa-St. Petersburg-Clearwater, FL Virginia Beach-Norfolk-Newport News, VA Orlando-Kissimmee-Sanford, FL Phoenix-Mesa-Chandler, AZ Space Coast, FL Cleveland-Elyria, OH Jacksonville, FL Beaumont-Port Arthur, TX Pensacola-Ferry Pass-Brent, FL Charlotte-Concord-Gastonia, NC Raleigh-Durham, NC Chattanooga, TN-GA Cape Coral-Fort Myers, FL Montgomery, AL Youngstown-Warren-Boardman, OH-PA Other markets
Same Store Portfolio Total
39
2,964 $
28
1,666
40
3,135
26
1,712
25
1,739
25
1,802
16
1,143
10
940
20
1,614
17
1,294
21
1,469
16
1,027
10
867
14
1,031
15
977
13
824
11
905
12
773
10
691
8
614
9
664
9
610
7
476
7
565
8
490
7
491
6
407
8
441
7
488
5
342
66
5,077
515 37,238 $
15.39 23.92 12.72 18.02 14.38 12.93 18.61 22.96 12.71 15.19 13.17 16.47 15.82 13.27 13.52 15.14 12.06 12.97 13.64 15.53 13.11 13.83 14.34 10.55 12.88 12.28 12.57 11.80
9.62 10.51 13.29
14.67
93.8% 95.3% 93.5% 95.5% 90.5% 93.6% 96.0% 93.6% 92.3% 94.2% 93.6% 95.6% 96.6% 94.3% 90.8% 94.8% 90.0% 90.6% 95.2% 91.6% 92.3% 92.1% 89.2% 97.3% 92.1% 90.2% 96.1% 92.9% 91.8% 88.7% 91.2%
93.1%
90.9% $ 89.6% 91.2% 88.9% 87.3% 93.0% 93.0% 90.6% 89.9% 93.4% 89.4% 89.9% 90.3% 89.0% 91.0% 90.1% 88.7% 86.8% 94.4% 90.3% 90.7% 87.9% 93.4% 90.5% 88.7% 89.3% 91.1% 90.0% 86.9% 85.3% 88.5%
10,826 $ 10,531
9,549
8,742
9,445
9,344
7,454
6,832
5,705
5,189
5,496
5,492
5,183
5,090
5,084
4,904
4,796
4,636
4,736
4,573
4,709
4,549
4,083
3,710
3,363
3,187
3,266
3,033
3,040
2,920
2,982
2,923
2,472
2,250
2,312
2,257
2,252
2,129
2,194
2,008
2,029
1,930
1,961
1,895
1,539
1,574
1,471
1,249
1,464
1,436
1,370
1,290
1,244
1,208
1,240
1,260
1,088
1,063
806
785
15,632
14,818
90.0% $ 128,791 $ 122,807
2.8% $ 4,528 $ 4,817
9.2%
3,098
2,669
1.1%
3,412
3,202
9.1%
1,942
2,146
9.9%
1,909
1,781
0.1%
1,910
1,512
1.8%
1,474
1,549
3.7%
1,455
1,482
3.5%
1,971
2,006
3.6%
1,049
989
3.5%
1,190
1,137
10.1%
1,172
1,118
5.5%
958
976
7.7%
1,102
1,133
4.1%
784
1,115
2.0%
914
852
9.9%
762
698
2.4%
798
804
5.8%
571
595
9.3%
551
481
5.1%
717
609
3.5%
573
572
-2.2%
460
517
17.8%
419
373
1.9%
421
442
6.2%
356
360
3.0%
374
365
-1.6%
548
439
2.4%
338
330
2.7%
225
311
5.5%
4,802
5,001
4.9% $ 40,783 $ 40,381
-6.0% 16.1%
6.6% -9.5% 7.2% 26.3% -4.8% -1.8% -1.7% 6.1% 4.7% 4.8% -1.8% -2.7% -29.7% 7.3% 9.2% -0.7% -4.0% 14.6% 17.7% 0.2% -11.0% 12.3% -4.8% -1.1% 2.5% 24.8% 2.4% -27.7% -4.0%
$ 6,298 $ 6,451 6,033 5,512 3,796 3,586 3,709 3,629 2,825 3,687 3,519 2,911 2,405 2,164 2,256 2,068 1,710 1,514 1,681 1,643 1,312 1,388 1,079 1,052 1,043 1,014 870 692 750 581
10,830
5,714 6,073 6,142 4,686 3,408 3,980 3,541 3,422 2,630 3,584 3,412 2,592 2,211 1,900 1,805 2,071 1,552 1,453 1,534 1,527 1,321 1,323 1,057
876 994 930 843 821 733 474 9,817
1.0% $ 88,008 $ 82,426
10.2% 6.2% -1.8%
17.6% 11.4% -9.9%
4.7% 6.0% 7.4% 2.9% 3.1% 12.3% 8.8% 13.9% 25.0% -0.1% 10.2% 4.2% 9.6% 7.6% -0.7% 4.9% 2.1% 20.1% 4.9% 9.0% 3.2% -15.7% 2.3% 22.6% 10.3%
6.8%
2019 Mature Acquisitions 2020 Mature Acquisitions Stores effected by natural disasters / rebuilt Stores in lease up Tenant insurance Management fees / other / eliminations Stores sold (33)
Total Wholly-Owned Portfolio
Other Same Store Pools 2020 same store pool (detail shown above) 2019 same store pool 2018 same store pool
14
935
39
2,984
6
375
23
1,740
-
-
-
-
-
-
597 43,272 $
17.79 15.55 10.39 12.54
-
14.69
90.4% 93.4% 52.5% 84.3%
-
92.4%
88.4% -
68.7% 62.8%
-
3,807 9,677
522 4,609 12,234 6,865
-
3,361 -
736 3,478 10,955 6,214
3
13.3% N/A
-29.1% 32.5% 11.7% 10.5% -100.0%
1,063 3,629
352 1,991 4,474 2,235
-
1,248 -
455 1,663 3,943 2,201
37
-14.8% N/A
-22.6% 19.7% 13.5%
1.5% -100.0%
2,744 6,048
170 2,618 7,760 4,630
-
2,113 -
281 1,815 7,012 4,013
(34)
29.9% N/A
-39.5% 44.2% 10.7% 15.4% 100.0%
88.7% $ 166,505 $ 147,554
12.8% $ 54,527 $ 49,928
9.2% $ 111,978 $ 97,626
14.7%
515 37,238 502 36,401 486 35,228
14.67 14.69 14.65
93.1% 93.1% 93.1%
90.0% 90.1% 90.0%
128,791 126,133 121,739
122,807 120,337 116,064
4.9% 4.8% 4.9%
40,783 39,675 38,169
40,381 39,376 37,559
1.0% 0.8% 1.6%
88,008 86,458 83,570
82,426 80,961 78,505
6.8% 6.8% 6.5%
· Dollars in thousands except for average quarterly rent per occupied square foot. Square feet in thousands. · List includes markets where the Company has five or more stores. · Revenues and expenses do not include items related to tenant insurance.
Page 19
Return to TOC
Life Storage, Inc.
Same Store Performance Summary by Market Twelve Months Ended December 31, 2020
(unaudited)
Market
Chicago-Naperville-Elgin, IL Houston-The Woodlands-Sugar Land, TX New York-Newark-Jersey City, NY-NJ-PA New England-Other Buffalo-Upstate, NY Dallas-Fort Worth-Arlington, TX Miami-Fort Lauderdale-Pompano Beach, FL Los Angeles-Long Beach-Anaheim, CA Austin-Round Rock, TX Atlanta-Sandy Springs-Alpharetta, GA Las Vegas-Henderson-Paradise, NV Boston-Cambridge-Newton, MA-NH Sacramento-Roseville-Folsom, CA St. Louis, MO San Antonio-New Braunfels, TX Tampa-St. Petersburg-Clearwater, FL Virginia Beach-Norfolk-Newport News, VA Orlando-Kissimmee-Sanford, FL Phoenix-Mesa-Chandler, AZ Space Coast, FL Cleveland-Elyria, OH Jacksonville, FL Beaumont-Port Arthur, TX Charlotte-Concord-Gastonia, NC Raleigh-Durham, NC Pensacola-Ferry Pass-Brent, FL Chattanooga, TN-GA Cape Coral-Fort Myers, FL Montgomery, AL Youngstown-Warren-Boardman, OH-PA Other markets
Same Store Portfolio Total
Square Stores Feet
Revenue
for the Twelve Months
Ended December 31,
2020
2019
% Change
Expenses
for the Twelve Months
Ended December 31,
2020
2019
% Change
NOI
for the Twelve Months
Ended December 31,
2020
2019
% Change
39
2,964 $ 42,115 $ 42,019
40
3,135
36,973
37,479
28
1,666
35,934
34,951
26
1,712
28,176
27,375
25
1,739
21,786
20,542
25
1,802
21,608
21,588
16
1,143
20,125
20,292
10
940
19,752
19,148
20
1,614
18,689
18,252
21
1,469
18,351
18,142
17
1,294
18,291
17,602
16
1,027
15,510
15,016
10
867
12,860
12,687
14
1,031
12,544
11,942
15
977
11,885
11,572
13
824
11,627
11,760
11
905
9,429
8,941
12
773
8,944
9,076
10
691
8,762
8,307
8
614
8,286
8,063
9
664
7,832
7,596
9
610
7,580
7,544
7
476
6,058
6,084
8
490
5,738
5,783
7
491
5,286
5,172
7
565
5,241
4,889
6
407
4,835
4,821
8
441
4,798
5,151
7
488
4,252
4,350
5
342
3,087
3,151
66
5,077
60,287
59,328
0.2% $ -1.4% 2.8% 2.9% 6.1% 0.1% -0.8% 3.2% 2.4% 1.2% 3.9% 3.3% 1.4% 5.0% 2.7% -1.1% 5.5% -1.5% 5.5% 2.8% 3.1% 0.5% -0.4% -0.8% 2.2% 7.2% 0.3% -6.9% -2.3% -2.0% 1.6%
17,713 $ 14,464 11,775
8,212 7,131 7,822 6,223 6,028 7,926 4,787 4,152 4,592 3,615 4,500 4,826 3,622 2,934 3,227 2,330 2,072 2,599 2,383 2,010 1,661 1,618 1,615 1,554 1,878 1,406 1,040 19,370
17,435 14,547 11,702
8,576 6,994 7,867 6,111 6,274 7,792 4,755 4,012 4,722 3,501 4,488 5,131 3,550 2,800 3,221 2,366 1,972 2,531 2,383 1,977 1,666 1,573 1,547 1,583 1,749 1,380 1,082 19,316
1.6% $ -0.6% 0.6% -4.2% 2.0% -0.6% 1.8% -3.9% 1.7% 0.7% 3.5% -2.8% 3.3% 0.3% -5.9% 2.0% 4.8% 0.2% -1.5% 5.1% 2.7% 0.0% 1.7% -0.3% 2.9% 4.4% -1.8% 7.4% 1.9% -3.9% 0.3%
24,402 $ 22,509 24,159 19,964 14,655 13,786 13,902 13,724 10,763 13,564 14,139 10,918
9,245 8,044 7,059 8,005 6,495 5,717 6,432 6,214 5,233 5,197 4,048 4,077 3,668 3,626 3,281 2,920 2,846 2,047 40,917
24,584 22,932 23,249 18,799 13,548 13,721 14,181 12,874 10,460 13,387 13,590 10,294
9,186 7,454 6,441 8,210 6,141 5,855 5,941 6,091 5,065 5,161 4,107 4,117 3,599 3,342 3,238 3,402 2,970 2,069 40,012
-0.7% -1.8% 3.9% 6.2% 8.2% 0.5% -2.0% 6.6% 2.9% 1.3% 4.0% 6.1% 0.6% 7.9% 9.6% -2.5% 5.8% -2.4% 8.3% 2.0% 3.3% 0.7% -1.4% -1.0% 1.9% 8.5% 1.3% -14.2% -4.2% -1.1% 2.3%
515 37,238 $ 496,641 $ 488,623
1.6% $ 165,085 $ 164,603
0.3% $ 331,556 $ 324,020
2.3%
· Dollars and square feet in thousands. · List includes markets where the Company has five or more stores. · Revenues and expenses do not include items related to tenant insurance.
Page 20
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Life Storage, Inc.
Certificate of Occupancy/Lease Up Performance Summary December 31, 2020
(unaudited)
Market Charleston, SC Chicago, IL Charlotte, NC Sacramento, CA Atlanta, GA Sacramento, CA St. Louis, MO New York, NY Tampa, FL Jacksonville, FL Raleigh, NC Washington, DC Chattanooga, TN Tampa, FL Charleston, SC Washington, DC Greenville, SC Atlanta, GA Richmond, VA Tampa, FL Richmond, VA Richmond, VA Miami, FL
Acquired Jul-2016 Feb-2017 Dec-2017 Sep-2018 Nov-2018 Dec-2018 Dec-2018 Jan-2019 Mar-2019 Jun-2019 Jul-2019 Jul-2019 Jul-2019 Jul-2019 Jul-2019 Jul-2019 Jul-2019 Jul-2019 Jul-2019 Jul-2019 Jul-2019 Jul-2019 Nov-2020
# of Stores
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
Cost $ 8,620
10,089 12,549 13,846 14,234
9,547 9,301 57,298 9,302 9,955 11,874 15,163 9,604 10,479 7,685 13,566 8,658 11,871 10,666 15,424 11,831 8,507 11,492
Net Rentable Square Feet
70,165 78,023 70,068 79,795 81,789 57,095 78,300 114,927 59,855 72,434 79,339 76,230 71,640 75,420 71,835 75,585 67,749 87,425 86,017 83,860 80,455 73,096 48,832
23 $ 301,561
1,739,934
· Dollars and square feet in thousands. · Revenues and expenses do not include items related to tenant reinsurance.
Occupancy at December 31,
2020
2019
88.3%
68.2%
97.3%
84.3%
91.8%
68.8%
96.4%
85.1%
92.4%
70.0%
96.0%
90.2%
80.9%
54.9%
89.2%
72.7%
91.0%
66.3%
87.6%
50.4%
73.5%
60.4%
80.6%
59.1%
85.7%
62.1%
93.9%
67.7%
80.5%
49.8%
72.8%
46.7%
73.2%
49.7%
95.5%
78.0%
76.5%
52.1%
61.8%
44.7%
64.3%
43.5%
81.6%
60.0%
77.7%
0.0%
Revenue
for the Three Months
Ended December 31,
2020
2019
$
216 $
175
200
163
177
160
271
212
249
187
197
162
160
122
665
475
207
169
189
116
163
151
210
163
150
109
230
188
124
99
180
123
105
84
201
178
175
124
166
126
129
79
172
113
73
-
$ 4,609 $ 3,478
Expenses
for the Three Months
Ended December 31,
2020
2019
$
82 $
77
195
143
64
52
135
82
61
130
77
79
51
43
164
152
40
50
78
81
117
68
91
68
56
76
120
78
72
54
76
74
83
76
112
64
62
50
110
83
34
32
75
51
36
-
$ 1,991 $ 1,663
NOI
for the Three Months
Ended December 31,
2020
2019
$
134 $
98
5
20
113
108
136
130
188
57
120
83
109
79
501
323
167
119
111
35
46
83
119
95
94
33
110
110
52
45
104
49
22
8
89
114
113
74
56
43
95
47
97
62
37
-
$ 2,618 $ 1,815
Page 21
Return to TOC
Life Storage, Inc.
Unconsolidated Joint Venture Detail December 31, 2020 (unaudited)
Joint Ventures Sovran HHF Storage Holdings LLC Same store
LSI Ownership
Carrying Value of LSI Investment
Joint Ventures Investment in Storage Facilities
at Cost
Joint Ventures Outstanding
Debt
Avg Qtrly Occupancy for
the Three Months Ended
December 31,
Stores 2020
2019
Revenue
for the Three Months
Ended December 31,
2020
2019
% Change
Expenses
for the Three Months
Ended December 31,
2020
2019
% Change
NOI
for the Three Months Ended
December 31,
2020
2019
% Change
20% $ 60,533 $
542,018 $ 184,312
36
94.3%
90.3% $ 11,960 $ 11,472
4.3% $ 2,937 $ 2,833
3.7% $
9,023 $
8,639
4.4%
Sovran HHF Storage Holdings II LLC Same store
15%
27,341
166,498
85,098
22
93.9%
89.0%
6,666
6,262
6.5%
1,987
1,850
7.4%
4,679
4,412
6.1%
Life Storage-SERS Storage LLC Same store
20%
3,037
40,054
21,224
3
95.5%
86.2%
861
813
5.9%
225
237
-5.1%
636
576
10.4%
Life Storage-HIERS Storage LLC 2018 acquisitions 2019 acquisitions Total
20%
14,294
147,728
12
92.6%
88.8%
5
95.8%
90.0%
72,039
17
93.6%
89.0%
2,247 1,269 3,516
2,260 547
2,807
-0.6% 132.0%
25.3%
781 364 1,145
604
29.3%
137 165.7%
741
54.5%
1,466 905
2,371
1,656 410
2,066
-11.5% 120.7%
14.8%
SNL Orix Merrick, LLC 2017 acquisition
5%
2,494
19,902
12,813
1
80.1%
68.9%
467
339
37.8%
163
106
53.8%
304
233
30.5%
SNL/Orix 1200 McDonald Ave., LLC 2018 acquisition
5%
2,737
22,034
12,200
1
73.3%
49.9%
292
186
57.0%
166
100
66%
126
86
47%
N 32nd Street Self Storage, LLC 2018 acquisition
46%
1,273
8,089
5,849
1
94.0%
70.2%
329
229
43.7%
151
65 132.3%
178
164
8.5%
NYX Don Mills Storage LP 2020 acquisition
15%
913
27,650
21,049
1
10.9%
NA
41
-
NA
210
-
NA
(169)
-
NA
NYX Sheridan Storage LP Development stage
15%
783
11,389
4,743
1
NA
NA
-
-
-
-
-
-
-
-
-
NYX Appleby Storage LP 2020 acquisition
15%
533
14,051
10,208
1
13.5%
NA
17
-
NA
112
-
NA
(95)
-
NA
Bluebird Sanford Storage LP 2019 acquisition
15%
299
5,862
3,192
1
91.3%
91.9%
157
103
52.4%
113
55 105.5%
44
48
-8.3%
Bluebird Ingram Storage LP 2019 acquisition
15%
1,045
23,126
14,419
1
80.0%
85.6%
336
341
-1.5%
156
108
44.4%
180
233
-22.7%
Life Storage Spacemax, LLC 2019 acquisition
40%
16,659
86,607
41,528
6
87.0%
84.0%
1,777
1,594
11.5%
440
390
12.8%
1,337
1,204
11.0%
HSRE-BB Canada JV I, LP Development stage
10%
673
12,336
4,945
1
NA
NA
-
-
-
-
-
-
-
-
-
Life Storage Virtus, LLC 2020 acquisition
20%
1,449
22,144
14,463
1
25.0%
NA
98
-
NA
84
-
NA
14
-
NA
Staten SNL LLC Development stage
18.75%
1,702
12,712
1,530
1
NA
NA
-
-
-
-
-
-
-
-
-
SNL XIX LLC Development stage
16.67%
1,331
11,327
3,118
1
NA
NA
-
-
-
-
-
-
-
-
-
SNL XXII LLC Development stage
24.995%
3,788
22,068
8,500
1
NA
NA
-
-
-
-
-
-
-
-
-
SNL East Meadow LLC Development stage
45.00%
2,158
2,584
-
1
NA
NA
-
-
-
-
-
-
-
-
-
Total
$ 143,042 $
1,198,179 $ 521,230
98
NA
NA $ 26,517 $ 24,146
9.8% $ 7,889 $ 6,485
21.6% $ 18,628 $ 17,661
5.5%
Life Storage Proportional Share of Outstanding Debt
$ 103,191
· Dollars in thousands.
Page 22
Capital Structure
Return to TOC
2024 Note
2026 Note
2027 Note 2028 Note 2029 Note
Common Stock
2030 Notes
Mortgages OP Units
As of December 31, 2020
49.7 Million Shares & OP Units Price = $119.39 per Share
Equity Market Cap = $5.9 Billion Enterprise Value = $8.1 Billion Debt to Enterprise Value = 27.2% Cash on Hand = $54.4 Million Credit Available = $500 Million
Investment Grade Ratings
Moody's: Baa2 S&P: BBB
Page 23
Life Storage Locations as of December 31, 2020
Return to TOC
Major Market Four or fewer locations
Portfolio at a Glance
Life Storage Joint Ventures Life Storage Solutions Total
597 92
238 927
Q4 2020 Changes
Life Storage LP Acquisitions
9
Joint Ventures (sold to LS LP) -1
Life Storage Solutions
14
Total
22
Page 24
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