Sovran Self Storage has been on a buying spree, and reported strong third-quarter results to go with it.
The Amherst-based company recorded funds from operations, which is the main measure of a real estate investment trust’s earnings, of $37.3 million, up 20 percent from a year ago. Sovran had diluted earnings per share $1.12, compared to 98 cents a year ago.
Sovran runs self-storage properties under the Uncle Bob’s name, and continued to bulk up its roster in the third quarter. Sovran spent about $46 million to acquire five self-storage facilities in five markets during the three-month period. And since the end of the third quarter, Sovran has spent $41 million to acquire three additional facilities. The company said it assumes it will make $10 million in additional acquisitions this year, excluding investments in joint ventures.
“We are pleased with another quarter of solid earnings,” said Andrew Gregoire, the chief financial officer, in a statement. Company executives were scheduled to discuss the results Thursday with analysts in a conference call.
For the 385 properties Sovran has owned since the start of 2013, the average occupancy rate during the third quarter was 91.3 percent, up from 89.9 percent a year ago, bolstered by a 4.4 percent increase in rental rates. The company’s same-store operating expenses rose 2.4 percent from a year ago, mainly due to increased repair and maintenance costs stemming from Pacific storms that affected Arizona early in the quarter.
The business news you need
With a weekly newsletter looking back at local history.