Fourth Quarter 2021 and Year-End Review
February 9, 2022 in Management News
Absolute Storage Management (ASM), a leading private, third-party management company for self-storage facilities in the United States, announced operating results for the three months and year ended December 31, 2021.
2021 Highlights for Three Months Ended December 31, 2021:
- Increased same-store revenue by 18.6% compared to the same period in 2020.
- Reported same-store square foot occupancy of 93% as of December 31, 2021 compared to 92% as of December 31, 2020.
- Acquired seven (7) management contracts: six (6) operating facilities and one (1) facility after construction.
2021 Highlights Year Ended December 31, 2021:
- Increased same-store revenue by 14.9% compared to the same period in 2020.
- Acquired nineteen (19) management contracts: thirteen (13) operating facilities and six (6) facilities after construction.
- Achieved 18.1% same- store NOI for the year, driven by Absolute’s increase in revenue.
- Increased GPI by 33% compared to the same period in 2020.
Over the three months ending December 31, 2021, ASM added seven (7) total management contracts in the United States. These properties include Absolute Storage of Conway in Conway, AR; The Storage Inn in Lynn Haven, FL; Crestview Storage in Crestview, FL; Hillcrest Storage in Mableton, GA; Steward Boat & RV Storage in O’Fallon, MO; Store It Spring Hill in Spring Hill, TN; and Tech Secured Storage in Tomball, TX. As of quarter end, December 31, 2021, ASM actively manages 124 properties in 16 states.
With industry occupancies at a record high, Absolute has used this time to improve its revenue management program by rolling out an integrated revenue management program, combining automation, technology, and human review. This improved program uses property-specific pressure sensors to determine daily rates for unit types. In addition, it has added value to Absolute’s revenue management program by adding value-based pricing for specific units within a unit type. Improvements to this program are the driving source behind the 33% year-over-year Gross Potential Income growth that ASM had in 2021.
Looking into 2022, Absolute plans to focus on team member growth and development, building on the company’s “We Care” culture and improving other processes and vendors to replicate the success seen in revenue management.
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