Thirty years ago, there were no storage units Bristol and people certainly have no idea what self-storage meant. Today, the self-storage industry is the biggest in Europe. It is a business that yields annual revenues of almost £500 million. People have a strong need for storage units Bristol because they own 6 times more stuff than the previous generation. Age-old hoarding instincts are also the perfect conditions for the boom in self-storage industry.
Nobody certainly expected the staggering growth of self-storage industry because people have the habit to store their stuff in garages. However, many pioneers in the industry have amassed a fortune by storing other people’s belongings.
In New York, Sovran Self Storage Inc. reported a key measure of profitability in second quarter surpassing Wall Street expectations. Sovran Self Storage is a New York-based real estate investment trust. The company runs more than 500 Uncle Bobs self-storage facilities in 25 states primarily in the eastern half of the country.
Rising occupancy levels and higher rents have helped Sovran Self Storage gain the second quarter earnings increase of 31%. The company now expects its profits to rise by 19% for 2015 better than the 18% forecast in April to exceed the growth that analysts are now predicting.
According to Sovran, the improvement was due to the more than 1% point increase in occupancy levels that averaged 92.1% during the quarter at the stores that have been open for at least a year. Strong demand has allowed Sovran to increase its rents by an average of 4% to $12.16 per square foot of space.
As a result, Sovran earned $43.4 million or $1.22 per share during the quarter which was up from $33.1 million or $1 per share last year. If you will exclude acquisition expenses and other costs, the profits of Sovran have improved to $44.2 million or $1.24 per share from the $35.6 million or $1.08 per share a year earlier. This was 2% better than the $1.22 that analysts have forecasted.
For a full year, Sovran expects earnings at $4.83 or $4.89 per share that is 19% up from last year and better than the $4.76 per share that is being forecasted.