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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: October 14, 1997
(Date of earliest event reported: October 14, 1997)
STORAGE TRUST REALTY
(Exact name of registrant as specified in its charter)
Maryland 1-13462 43-1689825
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
2407 Rangeline Street
Columbia, Missouri 65202
(Address and zip code of principal executive offices)
Registrant's telephone number, including area code:(573)499-4799
Not Applicable
(Former name or former address, if changed since last report)
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ITEM 5: EARNINGS AND DIVIDEND PRESS RELEASE
Storage Trust Realty (the "Company") sent out the following press
release for the results of operations for the three months and nine
months ended September 30, 1997 and for the quarterly dividend for
the fourth quarter of 1997.
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Storage Trust Realty For additional information contact
2407 Rangeline Street Steve Dulle, Chief Financial\Officer
Columbia, MO 65202 Telephone: 573.499.4799
Press Release
STORAGE TRUST REPORTS 9.6% INCREASE IN FFO PER SHARE FOR Q3 1997
SAME STORE REVENUES INCREASE 4.8% AND SAME STORE NOI INCREASE 5.7%
FOR THE FIRST 9 MONTHS OF 1997
COLUMBIA, Missouri (October 14, 1997) Storage Trust Realty (NYSE-SEA)
today released results of operations for the third quarter of 1997. Funds from
operations for the third quarter of 1997 were $7.9 million or $.57 per share
which exceeded consensus estimates. This represents an increase of 9.6% on a per
share basis compared to $7.0 million or $.52 per share for the third quarter of
1996. For the nine months ended September 30, 1997 as compared with the same
period in 1996, funds from operations increased 10.1% to $1.63 per share.
For the entire portfolio, revenues were $16.0 million for the third
quarter, an increase of 29.8% over the same period in 1996. Average revenue per
occupied square foot for the quarter increased 9.1% to $7.69 for 1997 as
compared to $7.05 for 1996. Square footage occupancy was 85% as of September
30, 1997 as compared to 87% as of September 30, 1996.
For the 106 facilities owned by the Company during the first nine months
of 1997 and 1996, revenues and net operating income increased 4.8% and 5.7%,
respectively. For the 135 facilities owned by the Company during the third
quarter of 1997 and 1996, revenues and net operating income increased 3.7% and
5.0%, respectively.
The Board of Trustees announced a dividend increase of 5.7% to $.46 per
Common Share for the fourth quarter of 1997. The dividend will be paid on
December 29, 1997 to shareholders of record as of December 15, 1997.
In the third quarter, the Company continued its focus on existing markets
by acquiring six facilities comprising 366,000 net rentable square feet for
$21.8 million. The facilities were located in Houston, TX; Dallas, TX; Fort
Worth, TX; Durham, NC; and Columbus, OH. These purchases were funded by
borrowing on the Company's revolving line of credit and the exchange of eight
facilities containing 344,200 net rentable square feet and valued at $11.165
million. For the nine months ended September 30, 1997, the Company has acquired
a total of 32 facilities containing 1.7 million net rentable square feet for
$84.5 million.
Mike Burnam, Chief Executive Officer, commented on the results,
"This was a fine quarter as evidenced by our exceeding consensus estimates.
Operationally, rental rate increases became effective while our acquisitions
continued to be focused in certain key markets to capitalize on economies of
scale. Acquisitions and exchanges in this quarter show our continued commitment
to growing market share in metropolitan areas. We will continue to look for
additional opportunities to shape our portfolio."
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Press Release
Storage Trust Realty
The following table summarizes operating information for the
Company:
<TABLE>
<CAPTION>
Three Months Ended
September 30, 1997 Three Months Ended
Amount Change September 30, 1996
<S> <C> <C> <C>
PORTFOLIO DATA:
Average revenue per
occupied square foot $7.69 9.1% $7.05
Square foot occupancy
at end of period 85% 87%
SAME STORE DATA (135 Facilities):
Revenues $11,158,094 3.7% $ 10,756,383
Expenses 3,226,034 0.7% 3,204,916
Net operating income $ 7,932,060 5.0% $ 7,551,467
Average revenue per
occupied square foot $7.47 4.6% $7.14
Square foot occupancy
at end of period 84% 86%
</TABLE>
<TABLE>
Nine Months Ended
September 30, 1997 Nine Months Ended
Amount Change September 30, 1996
<S> <C> <C> <C>
PORTFOLIO DATA:
Average revenue per
occupied square foot $7.47 8.3% $6.90
SAME STORE DATA (106 Facilities):
Revenues $24,071,426 4.8% $22,961,955
Expenses 7,194,042 2.9% $ 6,988,312
Net operating income $16,877,384 5.7% $15,973,643
Average revenue per
occupied square foot $7.34 4.1% $7.05
Square foot occupancy
at end of period 84% 86%
</TABLE>
Storage Trust Realty is a fully integrated, self-managed and self-
administered real estate investment trust headquartered in Columbia, Missouri,
engaged in the management and ownership of 193 self-storage facilities located
in 16 states totaling approximately 10.1 million net rentable square feet and
87,000 units.
Additional information on the Company can be obtained at our Web
site at http://www.storagetrust.com.
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STORAGE TRUST REALTY
FOR THE THREE MONTHS AND NINE MONTHS ENDED SEPTEMBER 30, 1997 AND 1996
(amounts in thousands, except for share information)
(unaudited)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
1997 1996 1997 1996
<S> <C> <C> <C> <C>
OPERATING DATA:
Revenues:
Rental income $15,477 $12,055 $42,623 $29,781
Management income 80 32 193 134
Equity in earnings
of joint ventures 30 17 69 86
Other income 377 199 927 462
Total revenues 15,964 12,303 43,812 30,463
Expenses:
Property operations 3,286 2,670 9,025 6,758
Real estate taxes 1,568 986 3,995 2,641
General and
administrative 879 715 2,302 1,783
Interest 2,196 827 5,596 3,241
Depreciation 2,487 1,660 6,812 4,225
Amortization 161 72 467 216
Total expenses 10,577 6,930 28,197 18,864
Net income before
minority interest 5,387 5,373 15,615 11,599
Minority interest (358) (327) (1,011) (726)
Net income $ 5,029 $ 5,046 $14,604 $10,873
Net income per share $ 0.39 $ 0.39 $ 1.13 $ 1.08
Weighted-average
number of shares 12,909,775 12,827,375 12,901,434 10,108,639
FUNDS FROM OPERATIONS:
Net income before
minority interest $ 5,387 $ 5,373 $15,615 $11,599
Depreciation of
revenue-producing assets2,462 1,660 6,747 4,225
Company share of
joint venture
depreciation 4 4 12 17
Funds from operations$ 7,853 $ 7,037 $22,374 $15,841
Funds from operations
per share $ 0.57 $ 0.52 $ 1.63 $ 1.48
Weighted-average number
of shares and units 13,772,459 13,552,741 13,762,612 10,733,513
</TABLE>
<TABLE>
<CAPTION>
September 30, December 31,
1997 1996
<S> <C> <C>
BALANCE SHEET DATA:
Investment in storage facilities, net $363,427 $304,114
Total assets $371,349 $308,725
Mortgages and notes payable $123,820 $ 63,255
Total liabilities $140,718 $ 76,559
Shareholders' equity $214,142 $215,696
</TABLE>
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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.
STORAGE TRUST REALTY
October 14, 1997 /s/ Michael G. Burnam
(Date) Michael G. Burnam
Chief Executive Officer
October 14, 1997 /s/ Stephen M. Dulle
(Date) Stephen M. Dulle
Chief Financial Officer
