UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(b) of The Securities Exchange
Act of 1934
Date of Report (Date of earliest event reported)
November 1, 1996 (October 30, 1996)
Storage USA, Inc.
(Exact name of registrant as specified in its charter)
Tennessee 001-12910 62-1251239
(State or other (Commission (IRS Employer
jurisdiction File Number) Identification No.)
of incorporation)
10440 Little Patuxent Parkway, Suite 1100, 21044
Columbia, Maryland
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (410) 730-9500
<PAGE>
Item 5: Other Events
In a press release dated October 30, 1996, the Company
announced its results of operations for the third quarter ended
September 30, 1996. Revenues for the third quarter of 1996 were
$29,435,000, an increase of $10,768,000 or 57.7%, compared to
the $18,667,000 for the third quarter of 1995. Net income for
the third quarter of 1996 was $11,650,000 an increase of
$3,122,000 or 36.6%, compared to the $8,528,000 for the third
quarter of 1995. Net income per share was $0.55 for the third
quarter of 1996, a 12.2% increase over the $0.49 per share for
the same period of 1995.
Revenues for the nine months ended September 30, 1996 were
$75,126,000 an increase of $27,700,000 or 58.4%, compared to the
$47,426,000 for the nine months ended September 30, 1995. Net
income for the nine months ended September 30, 1996 was
$30,181,000 an increase of $9,169 or 43.6%, compared to the
$21,012,000 for the nine months ended September 30, 1995. Net
income per share was $1.54 for the nine months ended September
30, 1996, a 10.0% increase over the $1.40 per share for the same
period of 1995.
Funds from operations for the third quarter of 1996 were
$14,430,000, versus $10,456,000 for the third quarter of 1995.
For the nine months ended September 30, 1996, funds from
operations were $37,806,000 versus $26,025,000 for the first nine
months of 1995.
At September 30, 1996, the average occupancy of the 215
facilities owned by the Company was 89% physical and 83% economic
with an average rent per square foot of $9.46. For the 146
facilities owned by the Company since September 30, 1995, average
occupancy was 89% physical and 83% economic compared to 90%
physical and 84% economic a year ago. Average rent per square
foot for the 146 facilities increased 6.9%, rising to $9.60 from
$8.98 a year ago.
During the quarter, the Company acquired 22 facilities
totaling 1,574,000 square feet for a cost of $81,000,000,
including the issuance of 18,282 operating partnership units
valued at $611,990. Subsequent to the end of the quarter
Storage USA has acquired four facilities totaling 233,000 square
feet at a cost of $11,300,000. The Company currently has
contracts, not previously announced, to acquire 22 facilities at
an aggregate cost of $86,775,000.
In addition to its acquisitions during the quarter, Storage
USA opened a newly constructed 35,000 square foot expansion in
Memphis, TN and a 30,000 square foot expansion in Albuquerque,
NM. The Company currently has plans to develop 21 new
facilities, primarily in the Washington, DC and Memphis, TN
areas. Of these, nine projects are under construction or in
construction planning, with expected costs totaling $30,000,000
and completion dates anticipated to be in the third quarter of
1997. Expansions are planned for 19 existing facilities, and of
these, 13 are under way with planned completion dates ranging
from the first to the third quarters of 1997. Estimated costs of
the 13 expansions under way are $10,150,000.
<PAGE>
Item 7: Financial Statements and Exhibits
(c)Exhibits
Exhibit Description
99.0 Summary consolidated financial information
for the quarter ended September 30, 1996
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned thereunto duly authorized.
DATED: November 1, 1996
STORAGE USA, INC.
By: /s/ Thomas E. Robinson
Thomas E. Robinson
President and
Chief Financial Officer
<TABLE>
STORAGE USA, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(unaudited)
(in thousands, except per share data)
<CAPTION>
Three Three Nine Nine
months months months months
ended ended ended ended
Sept. 30, Sept. 30, Sept.30, Sept.30,
1996 1995 1996 1995
<S> <C> <C> <C> <C>
Property Revenue:
Rental income $27,806 $18,281 $73,396 $46,276
Management
income 113 224 560 808
Other income 516 162 1,170 342
Total Property
Revenues 29,435 18,667 75,126 47,426
Property
Expenses:
Cost of property
operations and
maint. 7,816 4,865 19,993 12,854
Taxes 2,419 1,376 6,163 3,356
General &
administrative 1,318 697 3,067 1,806
Depreciation/
amortization 3,380 2,273 8,813 5,677
Total Property
Expenses 14,933 9,211 37,976 23,693
Income from
Property
Operations 14,502 9,456 37,150 23,733
Other income
(expenses)
Interest
expense (2,626) (454) (5,848) (1,667)
Interest
income 176 21 506 58
Income before
minority interest
and gain on
investment 12,052 9,023 31,808 22,124
Gain on
investment 288 288
Income before
minority
interest 12,340 32,096
Minority
interest (690) (495) (1,915) (1,112)
Net income $11,650 $8,528 $30,181 $21,012
Net income
per share $0.55 $0.49 $1.54 $1.40
Weighted average
shares
outstanding 21,364 17,331 19,588 15,001
</TABLE>
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<PAGE>
STORAGE USA, INC.
FUNDS FROM OPERATIONS COMPUTED UNDER THE AMENDED DEFINITION (in
thousands, except per share data)
<TABLE>
<CAPTION>
Revised Revised
Three Three Nine Nine
Months Months Months months
Sept. 30, Sept. 30, Sept.30, Sept.30,
1996 1995 1996 1995
<F1> <F1> <F1> <F1>
<S> <C> <C> <C> <C>
Funds from
Operations
Attributable
to Company
Shareholders:
Net income $11,362 $8,528 $29,885 $21,000
Depreciation of
revenue producing
property 3,224 1,945 8,235 4,726
Amortization of
lease guarantees 2 22 70 313
Amortization of
non-compete 0 63 83 189
Consolidated FFO 14,588 10,558 38,273 26,228
Minority interest
share of
depreciation
and amortization (158) (102) (467) (203)
FFO available
to Company
shareholders $14,430 $10,456 $37,806 $26,025
<FN>
<F1>
The impact of conforming to the amended definition of Funds from
operations (FFO) published by the National Association of Real
Estate Investment Trusts and effective in 1996 was to reduce FFO
available to Company shareholders by approximately $154,000 and
$425,000, and $246,000 and $333,000 for the three and nine
months ended September 30, 1996 and 1995, respectively. The
reductions relate to amortization of loan fees and depreciation
of non-revenue producing assets.
</FN>
</TABLE>
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<PAGE>
STORAGE USA, INC.
FINANCIAL AND OPERATIONAL HIGHLIGHTS
(in thousands)
<TABLE>
<CAPTION>
Nine Nine
Same Quarter Quarter Months Months
Store ended ended ended ended
results Sept. 30, Sept. 30, Sept. 30, Sept. 30,
(% growth): 1996 1995 1995 1995
<S> <C> <C> <C> <C>
Revenues $18,792(7.1%) $17,551 $39,537(7.2%) $36,878
NOI $13,114(6.1%) $12,363 $27,407(5.6%) $26,958
<CAPTION>
Selected As of As of As of
Financial September 30, December 31, September 30,
Data: 1996 1995 1995
<S> <C> <C> <C>
Investment
in storage
facilities
at cost $727,529 $509,297 $471,058
Total assets $719,651 $509,525 $469,882
Line of
credit
borrowings $66,138 $107,605 $60,900
Mortgages
payable $17,972 $6,670 $6,880
Total
liabilities $144,634 $151,338 $110,924
Total
shareholders
= equity $575,017 $358,187 $358,958
Shares
outstanding 24,639 17,562 17,331
Operating
partnership
units
outstanding 1,289 1,025 914
Total
shares and
units
outstanding
at end of
period 25,928 18,587 17,245
Total
weighted
average
shares
outstanding
(quarter
ended) 21,364 15,612 17,331
Total
weighted
average
units
outstanding 1,271 720 889
</TABLE>
