Real estate investment trust Sovran Self Storage Inc. reported operating results for the quarter and year ended Dec. 31, 2010.

Net income available to common shareholders for the quarter was $8.5 million, or $0.31 per fully diluted share. For the same period in 2009, there was a net loss to common shareholders of $1.5 million, or $0.06 per fully diluted common share. Funds from operations (FFO) for the quarter were $0.62 per fully diluted common share compared to $0.28 for the same period last year. Had the company not recorded charges of $0.8 million related to a late-December acquisition, FFO would have been $0.65 per fully diluted common share for the fourth quarter of 2010.

During the quarter, the Sovran also acquired seven new stores: four in Charlotte and three in Raleigh, N.C. The combined purchase price was $34.7 million.

Were seeing positive trends on many fronts. Revenues are strengthening, costs are contained, investment opportunities are available, and were well positioned to grow from here, said Robert J. Attea, chairman and CEO.

Revenue for the 344 stores wholly owned by the company for the entire quarter of each year increased 2.6 percent from those of the fourth quarter of 2009, the result of a 90 basis point increase in rental rates and strong growth in other revenue. We achieved solid gains in rental rates this quarter, and we saw revenues increase in 23 of 24 states, said Kenneth F. Myszka, president and chief operating officer. Were encouraged by improving demand in our markets.

Same-store operating expenses decreased 1.9 percent for the fourth quarter of 2010 compared to the prior year period, the result of a net property tax decrease of 12.1 percent offset by increases in healthcare, workers compensation and property-maintenance costs. The property-tax expense was achieved by reductions won at several locations as a result of successful challenges to assessed values, and also due to conservatively estimated accruals during the first three quarters at the companys

Florida, Texas and Gulf Coast properties.

Consequently, same-store net operating income increased 5.2 percent this period over the fourth quarter of 2009 as a result of increased revenues, controlled costs, and a significant decrease in property taxes.

General and administrative expenses grew by about $1.4 million over the same period in 2009. More than half of this increase was attributable to $0.8 million of acquisition costs expensed in conjunction with the purchase of the Carolina stores. The balance was primarily due to increased income taxes associated with operations of the companys taxable REIT subsidiary, incentive compensation, and marketing and Internet advertising costs.

During the fourth quarter of 2010, all states save one achieved same store sales equal to or greater than the same period in 2009. For the first time since the hurricanes of 2005 and 2006, the Florida stores reported revenues greater than the prior years quarter, a sign that recovery may be on the horizon. The stores with the strongest revenue growth include most in New England, Louisiana, New York and Tennessee.

To read the complete financial report, visit www.unclebobs.com/downloads/11-02-23.pdf#zoom=100.

Todays self-storage managers grapple with tough challenges including falling occupancy, rate stagnation, lien sales and problem tenants. New managers and veterans will get insight and useful tools to help them cope and succeed at the Inside Self-Storage World Expo, March 14-16, at the Paris Hotel & Resort in Las Vegas. The show includes educational seminars, workshops and networking opportunities specifically for managers and operators who work in the self-storage trenches.

The Day-to-Day Operation & Facility Management Track of seminars features topics such as rate discounting and increases, updating rental agreements, lien sales, facility curb appeal, staff evaluation and training, and much more. Attendees can also choose to attend the Management Workshop, taught by Mel Holsinger, president and CEO of Professional Self Storage Management LLC. The four-hour practicum delves deep into a managers daily responsibilities, covering issues from marketing to maintenance and everything in-between.

Several networking opportunities, included for free with all registration packages, provide additional education and peer-to-peer guidance. During the interactive Self-Storage Q&A, to be held on March 14, attendees can ask candid questions and get honest answers from industry experts and colleagues. Several prizes will be given away to participants during this lively event. The Roundtable Discussions that follow will cover a wide array of topics including cost-saving strategies, low-cost marketing ideas, green solutions, website dos and donts, and more.

More details about the industrys largest conference and tradeshow can be found at www.insideselfstorageworldexpo.com. Registration can be completed online or by calling 800.230.2311 through March 11.

The purchase price for RV Storage of Saskatoon by StorageVault Canada Inc. has been amended. The aggregate purchase price has been reduced by $81,250 to $1.5 million. StorageVault Canada Inc. entered into an acquisition agreement to acquire the facility in Saskatoon, Saskatchewan, in January.

In addition, the due-diligence condition date has been extended to March 15. All other terms of the acquisition agreement remain the same.

RV Storage of Saskatoon comprises of 180,000 square feet of rentable storage area on 5.5 acres of land. The facility can store up to 700 vehicles. StorageVault intends to relocate and combine its PUPS portable-storage business presently operating out of a leased location in Saskatoon with RV Storage of Saskatoon.

StorageVault owns and operates Canadian PUPS portable storage in Saskatoon, Trans Can Mini-Stor in Regina, and Kenaston Self Storage in Winnipeg. The company intends to grow through the acquisition of self-storage properties and the development of portable-storage facilities in Canada. Its common shares are listed on the TSX Venture Exchange.

By Dallas Dogger

Thirty people lost their lives in December and January during Australias floods, the worst the country has seen in decades. More than 27,000 homes were flooded in Brisbane alone, and countless businesses were affected. To put the flood into perspective, imagine Nevada, Texas and California under water.

Self-storage sites in some areas of South Brisbane were hit hard, with Melco Storage in Oxley, Storage King Rocklea and Kennards Self Storage in Milton all affected. Melco was completely engulfed, with water over the roofline.

Many other sites suffered power loss and road closures. A number of facilities operated on generator power until services could be resumed. National Storage, one of Australias largest self-storage operators, had to be evacuated from Brisbanes central business district. It was more than two weeks before power was restored and workers could return. Nationals self-storage call center was also shut down and relocated to an alternative site.

We had very little notice that we would need to evacuate, which did not give us much time to pick up gear and relocate. We just shut the door and left, said Mike Berry, director of finance for National Storage.

The City of Toowoomba, 120 miles west of Brisbane, was hit hard by a torrential storm in January. The intense storm dumped more than 10 inches of rain in an hour, turning the central business district into a raging torrent never before seen. Though Toowoomba is on top of a range some 1,900 feet above sea level, cars and containers were washed down the main street. The wall of water then cascaded at high speed down the range toward Brisbane, taking out complete towns like Lowood, killing many in its path. Residents had no warning.

The waters travelled all the way to the Bremer River, which joins the Brisbane River on the outskirts of the city. At this stage, authorities could not control the flow. Floodwaters surged on Jan. 12 into Brisbane and flooded more than 25,000 homes and businesses.

Getting the Word Out

A suggestion from one of our customers led us to compile a list of dry and secure self-storage sites around flood-affected areas. We had a number of great responses from facility managers, who gave us details such as location and units available so flood victims could easily find them. We posted the list on the Centreforce IT website and updated it several times a day. Within an hour of the posting, more than 100 people had viewed the page.

We also updated our Facebook and Twitter pages and gave the information to local authorities. Our tweets were reposted by others, and this in turn made the list go viralhundreds and hundreds viewed it. One flood victim saw the list and contacted us directly from the United States. We helped him rent three spaces and determine how to get his wine collection to safety. The power of good Web contact and social media in a crisis cannot be overstated.

In times of major disaster, self-storage facility operators can be counted on to help. There are 25,000 homes in Brisbane alone that need major repairs. Many may have to be rebuilt, and homeowners will need to store the goods they have left while the work is done.

At a recent meeting of fellow IT companies in Brisbane, we discussed the preparedness of businesses for impending disaster. Its surprising how many didnt have plans for the flood, especially bigger businesses. Many believed the Wivenhoe Dam, which lies across the Brisbane River, would prevent flooding. It didnt. The key is to have a planeven if you dont think youll be affected. 

Dallas Dogger is the CEO of Brisbane, Australia-based Centreforce IT, an installer of self-storage access-control, CCTV and door-alarm systems throughout Australasia. For more information, visit www.centreforceit.com.au.

Earlier this month, House Bill 1384 was introduced to the Arkansas Legislature, proposing improvements to the states self-storage lien law. Today the bill was reviewed by the Senate Committee on Insurance and Commerce and returned to the Senate with a recommendation that it do pass. A third reading of the bill is scheduled for Feb. 28.

HB1384, An Act to Improve the Process for Notice for Notice of Sale of Property in Default of Self-Storage Payments, proposes lien-law modernization similar to that being enacted in other states. The changes, if passed, will help self-storage operators in Arkansas save time in money during the lien-notification process with tenants. Proposed modifications include replacing the required Certified Mail return receipt requested with First Class Mail with a certificate of mailing.

The bill is sponsored by Democrat Fred Allen and co-sponsored by Republican Allen Kerr, both of Little Rock, Ark. Detailed information can be found at www.arkleg.state.ar.us/assembly/2011/2011R/Pages/BillInformation.aspx?measureno=HB1384.

Two dirt bikes were stolen from a Braselton, Ga., self-storage facility after someone cut a fence around the property line, according to the source's account of the Jackson County Sheriffs Office report.

An assistant manager at Jackson Self Storage told the source the stolen dirt bikes being stored inside a trailer parked at the facility. The suspect reportedly entered the property by cutting the barbed wire on top of a chain-link fence. The suspect then climbed over the fence, using a ladder attached to an R.V., which was parked next to the fence. The suspect broke into one customers trailer and cut off a lock on another customers tool box before prying open the doors to another trailer, which was owned by a third customer, containing the dirt bikes.

Finally, the suspect reportedly cut a section of the chain-link fence and rolled the dirt bikes to the open area, where they were loaded onto another vehicle.

Braselton is about 50 miles northeast of Atlanta.

A Brinnon, Wash., self-storage owner was killed and his wife was injured in a one-car crash at about 5:46 a.m. PST Sunday near the town of Hamma Hamma.

Stanley Johnston, 66, owned and operated Brinnon Mini Storage as part of his Johnston Realty portfolio. His other holdings included Jefferson County Escrow, Olympic Drilling and Brinnon General Contracting.

Johnston was a passenger in the vehicle while his wife, Candis, was driving, Washington State Patrol told the source. His wife was in serious condition at the time of the report at Harborview Medical Center in Seattle, a nursing supervisor told the source.

The cause of the crash is still under investigation. No charges or citations have been filed.

Brinnon Mini Storage is located at 40 Brinnon Lane in the center of Brinnon, which is a 70-mile drive from Seattle, across Puget Sound from the Seattle metropolitan area.

Moishe's Self Storage has introduced a bedbug-prevention program to protect its customers stored good. Bedbugs have become a major problem in many large cities including New York City and Chicago, in stores, hotels and residences.

Moishe's Self Storage has implemented a policy to prevent bedbugs in its self-storage facilities. The policy states all furniture be wrapped with plastic. Blankets are not permitted. Storage facilities will be fumigated on a regular schedule, and the company has hired Bed Bug Hunters, a bedbug dog-sniffing service, to periodically to conduct an inspection.

Our industry has never faced such a pervasive pest problem, said Alon Levine, general manager of Moishe's Self Storage New York. We have consulted with professional exterminators to take aggressive action to prevent bedbugs from getting into our buildings.

Moishe's Self Storage has self-storage locations in New York City and Chicago.

The California Self Storage Association is hosting Morning Coffee March 10 from 7:30 a.m. to 9:00 a.m. The open discussion will be at the Courtyard by Marriott, 5059 Hopyard Road in Pleasanton, Calif.

Self-storage owners and managers and other industry professionals are invited to discuss operational issues, local trends, money-saving tips and more. Participants will be able to purchase beverages.

Attendees do not need to be a member of the California Self Storage Association to participate, but should register on the associations website.

Extra Space Storage Inc., a self-storage real estate investment trust, released its operating results for the three months and year ending Dec. 31, 2010.

Highlights include:  

• Achieved funds from operations (FFO) of $0.26 per diluted share including development dilution of $0.03 per share.
• Grew same-store occupancy by 190 basis points to 84.8 percent, compared to 82.9 percent during the same period in 2009.
• Increased same-store revenue and net operating income (NOI) by 3.3 percent and 5.3 percent, respectively, as compared to the same period in 2009. Same-store revenue and NOI include tenant reinsurance income and expenses.
• Acquired eight properties for approximately $42 million.
• Added six properties to the company's third-party management platform.

"Our operating and technology platform delivered solid top-line growth and expense containment resulting in excellent NOI growth, said CEO Spencer F. Kirk We believe our occupancy is approaching an optimal level, giving us pricing power as we head into 2011. We continue to invest in technology initiatives that will enable us to capture more business and increase our efficiencies. With property level growth trending toward historical levels and increased acquisition activity, we are looking forward to a successful 2011."

Headquartered in Salt Lake City, Extra Space owns or operates more than 800 self-storage properties in 34 states and Washington, D.C. The companys properties comprise approximately 540,000 units and more than 58 million square feet of rentable space.