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)
February 18, 1997 (December 31, 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 January 29, 1997, the Company
announced its results of operations for the fourth quarter and
year ended December 31, 1996. Revenues for the fourth quarter of
1996, were $32,391,000, an increase of $11,820,000 or 57.5%,
compared to $20,571,000 for the fourth quarter of 1995. Net
income for the fourth quarter of 1996 was $13,344,000, an
increase of 5,199,000 or 63.8%, compared to $8,145,000 for the
fourth quarter of 1995. Net income per share was $0.54 for the
fourth quarter of 1996, a 17.4% increase over the $0.46 per share
for the same period of 1995.
Revenues for the year ended December 31, 1996, were
$107,517,000, an increase of $39,510,000, or 58.1%, compared to
the $68,007,000 for the year ended December 31, 1995. Net income
for the year ended December 31, 1996, was $43,526,000, an
increase of $14,373,000, or 49.3%, compared to the net income of
$29,153,000 for the year ended December 31, 1995. Net income per
share was $2.09 for the year ended December 31, 1996, an 11.8%
increase over the $1.87 per share for 1995.
Funds from operations for the fourth quarter of 1996 were
$16,742,000 versus $10,453,000 for the fourth quarter of 1995.
For the year ended December 31, 1996, funds from operations were
$54,572,000 versus $36,452,000 for 1995.
At December 31, 1996, the average occupancy of the 242
facilities owned by the Company was 86% physical and 79% economic
with an average rent per square foot of $9.73. For the 153 comparable
facilities owned by the Company since December 31, 1995, average
occupancy was 87% physical and 80% economic compared to 88%
physical and 81% economic a year ago. Average rent per square
foot for the 153 facilities increased 7.5%, rising to $9.61 from
$8.94 a year ago.
During the year, the Company acquired 82 facilities
totalling 5,401,000 square feet for a cost of approximately $304,000,000,
including the issuance of 901,374 operating partnership units
valued at $30,728,000. Subsequent to the end of the year,
Storage USA has acquired two facilities totalling 143,000 square
feet at a cost of $5,100,000. The Company currently has
contracts not previously announced to acquire two facilities at an
aggregate cost $5,000,000.
In addition to its acquisitions during the year, Storage USA
opened two newly constructed facilities in northern Virginia
totalling 123,000 square feet for a cost of $9,268,000. During
the year the Company completed five expansions to exisiting
facilities in Sarasota and North Lauderdale, FL, Memphis, TN,
Albuquerque, NM, and Wethersfield, CT, totaling 129,000 square
feet. The Company currently has plans to develop 21 new
facilities containing 1,650,000 square feet, primarily in the
Washington, DC, San Francisco, CA and Memphis, TN areas. Of
these, 12 projects are under construction or in construction
planning, with expected costs totaling $46,000,000 and completion
dates anticipated to range from the second quarter of 1997
through the first quarter of 1998. Expansions are planned for 23
existing facilities, and of these, 18 are under way with planned
completion dates ranging from the second to fourth quarters of
1997. Estimated costs and square feet of the 18 expansions under
way are $12,800,000 and 320,000, respectively.
Item 7: Financial Statements and Exhibits
(c)Exhibits
Exhibit Description
99.0 Summary consolidated financial informatiom for
the year ended December 31, 1997
<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: February 18, 1997
STORAGE USA, INC.
By: /s/ Christopher P. Marr
Christopher P. Marr
Vice President-Financial
Reporting and Controller
<TABLE>
STORAGE USA, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(unaudited)
(in thousands, except per share data)
<CAPTION>
Three months Three months
Ended Ended Year Ended Year Ended
Dec. 31 Dec. 31 Dec. 31 Dec. 31
1996 1995 1996 1995
<S> <C> <C> <C> <C>
Property Revenue:
Rental Income $31,695 $20,168 $105,091 $66,455
Management Income 141 264 701 1,072
Other Income 555 139 1,725 480
Total Property
Revenues 32,391 20,571 107,517 68,007
Property Expenses:
Cost of property
operations 8,296 5,593 28,235 18,471
Taxes 2,740 1,567 8,903 4,900
General & administ-
rative 1,055 762 4,122 2,568
Depreciation/
amortization 3,807 2,895 12,620 8,586
Total Property
Expenses 15,898 10,817 53,880 34,525
Income from Property
Operations 16,493 9,754 53,637 33,482
Other Income
(expenses)
Interest expense (2,402) (1,338) (8,244) (3,004)
Interest income 180 108 687 166
Income before
minority interest
and gain on
investment 14,271 8,524 46,080 30,644
Gain on Investment 288
Income before
minority interest 14,271 8,524 46,368 30,644
Minority interest (927) (379) (2,842) (1,491)
Net income $13,344 $8,145 $43,526 $29,153
Net income per share $0.54 $0.46 $2.09 $1.87
Weighted average
shares outstanding 24,654 17,562 20,861 15,612
</TABLE>
<PAGE>
<TABLE>
STORAGE USA, INC.
FUNDS FROM OPERATIONS COMPUTED UNDER THE AMENDED DEFINITION
(unaudited)
(in thousands)
<CAPTION>
Revised Three
Three Months Months Revised Year
Ended Ended Year Ended Ended
Dec. 31, 1996 Dec. 31, 1995 Dec. 31, 1996 Dec. 31, 1995
<F1> <F1> <F1> <F1>
<S> <C> <C> <C> <C>
Funds from
Operations
Attributable
to Company
Shareholders:
Net Income $13,344 $8,145 $43,238 $29,153
Depreciation of
revenue
producing
property 3,629 2,304 11,865 6,996
Amortization
of lease
guarantees 0 72 70 385
Amortization of
non-compete 0 63 83 252
Consolidated FFO 16,973 10,584 55,256 36,786
Minority interest
share of
depreciation
and
amortization (231) (131) (684) (334)
FFO available to
Company
shareholders $16,742 $10,453 $54,572 $36,452
<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 $178,000 and $601,000, and $456,000 and $953,000
for the three months and year ended December 31, 1996 and 1995, respectively.
The reductions relate to amortization of loan fees and depreciation of non-
revenue producing assets.
</FN>
</TABLE>
<PAGE>
<TABLE>
STORAGE USA, INC.
FINANCIAL AND OPERATIONAL HIGHLIGHTS
(in thousands)
<CAPTION>
Quarter Quarter Year Year
Same Store ended ended ended ended
Results Dec. 31, Dec. 31, Dec. 31, Dec. 31,
(% growth): 1996 1995 1996 1995
<S> <C> <C> <C> <C>
Revenues $20,630 (6.6%) $19,348 $52,963 (7.7%) $49,190
NOI $14,420 (7.1%) $13,463 $36,606 (5.7%) $34,630
<CAPTION>
Selected As of As of
Financial Dec. 31, Dec. 31,
Data: 1996 1995
<S> <C> <C>
Investment
in storage
facilities
at cost $855,855 $509,297
Total assets $845,384 $509,525
Line of credit
borrowings $ 52,730 $107,605
7.125% Notes, 2003 $100,000
Mortgages payable $ 45,724 $ 6,670
Total liabilities $270,257 $151,338
Total shareholders'
equity $575,127 $358,187
Shares outstanding 24,723 17,562
Operating partnership
units outstanding 1,904 1,025
Total shares and units
outstanding at end
of period 26,627 18,587
Total weighted average
shares outstanding
(year ended) 20,861 15,612
Total weighted average
units outstanding 1,290 720
</TABLE>
