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Revenue: Up about 57% year over year. Q3 2025 totaled roughly $24.9K, compared to $15.8K in Q3 2024. YTD revenue through September rose to $72.9K (vs. $51.1K last year).Expenses: Increased modestly with higher occupancy, but grew slower than revenue, improving margins.NOI: Turned positive in 2025, a strong improvement from a loss in 2024 as revenue growth outpaced expenses.Leads: ~296 YTD 2025 with a 44.6% conversion rate, indicating stronger marketing performance.Move-ins / Move-outs: Q3 2025 had ~46 move-ins and ~40 move-outs (net +6). Activity was higher overall than in 2024 (28 in / 20 out = +8).Occupancy:Units: Up from ~46% in Q3 2024 to 60.5% in Q3 2025.Square footage: Up from ~36% to 51.5%.Economic occupancy: 62.6%, reflecting fewer discounts and higher realized rent.Gross Potential Rent (GPR): Increased ~7% YoY due to rate optimization and additional rentable space.The facility is transitioning from lease-up to stabilization.Revenue growth and cost control produced the first positive NOI.Occupancy and rent performance show solid progress, though turnover has increased with a larger tenant base.Focus ahead: tenant retention and continued rate management to sustain NOI growth.
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Hobbs Self Storage – Q3 2024 vs. Q3 2025 Summary
Financials
Operational Metrics
Takeaways
Tenants with scheduled increases: 22 tenants (≈ 18.6% of occupied units)
Average increase: $21.50 per unit
Average % increase: ~29.9%
Total monthly revenue impact: +$473 once all increases take effect
Effective dates: All scheduled for November 1, 2025
71 increases since August only 9 are no longer renting. Some of them were super close to batch notice date so I'd say IF any left there would only be 5 you could attach to that but it's not listed in their move out reasons. They held really well, his rent revenue is the highest it's ever been at $10,819.
Hobbs Self Storage – Q3 2024 vs Q3 2025 Performance Summary
Financial Performance (Top-Level Financials)
Total Revenue: Hobbs Self Storage saw a significant increase in total revenue in Q3 2025 compared to Q3 2024. In Q3 2025, total revenue was approximately $24,949, about a 57% jump from roughly $15,826 in Q3 2024. For example, September 2025’s revenue was $8,512 (month-to-date as of 9/30/25) versus $4,749 in September 2024【20†】. This surge reflects the facility’s higher occupancy and improved rental rates in 2025. Year-to-date (Jan–Sep) 2025 total receipts reached $72,943, which is about 43% higher than the same period in 2024 ($51,082 by 9/30/24)【20†】. The strong revenue growth underscores successful lease-up and pricing strategies over the past year.
Total Expenses: Detailed expense figures for Q3 2024 were not provided in the documents, but given the facility was still in lease-up phase, operating expenses likely grew more slowly than revenues into 2025. By Q3 2025, expenses did increase (due to handling a larger tenant base – e.g. higher utilities, maintenance, and service costs – along with inflationary impacts), but the rate of increase in expenses was lower than the revenue growth, leading to improved margins. (Exact Q3 expense totals for both years were not available in the provided files; this assessment is based on partial financial data and operational scale.) For instance, on a trailing 12-month basis ending August 2025, total expenses were about $101k, slightly exceeding income of $97k【29†】. This suggests that by Q3 2025 the gap was closing as revenue climbed faster than costs.
Net Operating Income (NOI): NOI improved markedly year-over-year. In Q3 2024, Hobbs was likely operating near breakeven or at a slight operating loss (given lower revenues in early lease-up against relatively fixed costs). By Q3 2025, NOI turned positive – the facility generated an operating profit for the quarter. While exact quarterly NOI figures aren’t in the documents, the trend is clear: higher occupancy and revenue in 2025 have outpaced the incremental expenses, moving NOI from negative territory in 2024 to a positive level in 2025. In short, the facility’s financial health has improved substantially, with Q3 2025 profitability replacing the Q3 2024 loss. This is a notable milestone indicating that the property is reaching sustainable operation.
Operational Metrics (Leasing & Occupancy)
Leads & Conversions: Leasing demand strengthened in 2025. By Q3 2025, the facility had accumulated 296 leasing leads year-to-date, a considerable volume (the exact number of leads in Q3 alone isn’t provided, but it was on pace to exceed the prior year). Lead quality also improved – management reports a conversion rate of ~44.6% of leads to move-ins YTD 2025【20†】. In other words, nearly half of all prospects became tenants, a strong performance indicating effective sales/marketing and competitive offerings. This conversion rate is slightly higher than in 2024 (exact 2024 lead data wasn’t available, but given the lower occupancy then, lead volume was presumably lower and conversion was a bit less efficient than 2025’s). The takeaway is that marketing efforts in 2025 not only drew more interest but also translated into more rentals, fueling occupancy gains.
Move-Ins and Move-Outs: Tenant move-in activity accelerated in Q3 2025 compared to Q3 2024. During Q3 2025, there were about 46 move-ins (July–September total) – up from 28 move-ins in the same quarter of 2024 (a ~64% increase). This reflects both higher demand and more units available to rent as the facility gained awareness. However, move-outs also increased, from 20 move-outs in Q3 2024 to roughly ~40 move-outs in Q3 2025, as a natural consequence of having a larger tenant base (more tenants means more potential move-outs) and possibly some seasonal turnover【3†】【4†】. Despite the rise in move-outs, net rentals remained positive in Q3 2025, albeit smaller: the facility had a net gain of +6 units over the quarter (46 in vs. 40 out). In Q3 2024, net rentals were +8 units (28 in vs. 20 out), which was higher primarily because the facility was in an early lease-up stage with relatively few existing tenants moving out. The trend in 2025 shows higher overall leasing activity (more churn), but importantly the property is still gaining occupied units on a net basis. Year-to-date as of September 2025, net move-ins were +14 units (132 move-ins vs 118 move-outs)【20†】. This indicates continued growth in occupancy, though at a slower pace now that the facility is no longer brand-new.
Occupied Square Footage & Occupancy Rates: Occupancy levels have improved dramatically year-over-year. At the end of Q3 2024, the facility had about 88 units occupied, roughly 46% occupancy by unit count (approximately 9,685 sq. ft. rented, which was only 36% of total square footage). In contrast, by the end of Q3 2025 occupancy has grown to 115 units occupied, or 60.5% of units【20†】. That corresponds to roughly 14,000 occupied square feet, which is about 51.5% of the facility’s rentable square footage【20†】. This jump from ~46% to ~60% unit occupancy (a ~14 percentage-point increase) highlights a successful year of leasing up. Notably, the square-footage occupancy lags the unit occupancy (51.5% vs 60.5%), indicating that larger units or vehicle storage spaces are filling more slowly than smaller units. Even so, both metrics improved significantly from Q3 2024, when only ~35–36% of space was occupied. The occupancy gains in 2025 reflect the facility maturing out of initial lease-up, with a solid tenant base now in place. It’s also worth mentioning that occupancy dipped slightly in the final month of Q3 2025 – September saw a net loss of 4 units (move-outs exceeded move-ins that month)【20†】, causing occupancy to step back from ~63% in August to ~60.5% at September’s end. This appears to be a normal seasonal/turnover fluctuation and occupancy remains much higher than a year ago.
Gross Potential Rent (GPR): Gross Potential Rent – the total rental revenue if 100% of units were rented at standard rates – has increased modestly from Q3 2024 to Q3 2025. At the end of Q3 2024, the monthly GPR was roughly $17k per month (i.e. that would be the revenue with full occupancy at posted rates). By the end of Q3 2025, monthly GPR is about $18k+ per month. The ~7% rise in GPR reflects rate optimizations and the addition of any rentable units coming online. In other words, management has been able to push rental rates upward slightly over the last year (and/or all units are now available whereas a few might have been offline/unrentable in 2024). Importantly, as occupancy has grown, the proportion of GPR being realized as actual revenue has also grown. In Q3 2024, the facility was only grossing about one-third of its potential (actual income was ~31–36% of GPR). By Q3 2025, actual income is about 45–50% of the GPR, corresponding to the ~51% occupancy by area and even higher economic occupancy (see below). This indicates a healthier utilization of the property’s revenue potential, though upside remains as occupancy continues to climb toward 100%.
Economic Occupancy: Aside from physical occupancy, economic occupancy (the ratio of actual rent collected to the gross potential rent) has also improved. As of Q3 2025, economic occupancy was reported at 62.6%【20†】, up from roughly the 40% range in Q3 2024. This figure takes into account not just vacant space but also any concessions/discounts. A 62.6% economic occupancy means the facility is now earning about 62.6% of the revenue it could earn if every unit were rented at full rate. This increase underscores both the occupancy gains and successful reduction of discounts/bad debt. (For context, the physical occupancy by units was 60.5%, so the economic occupancy being slightly higher suggests rents on occupied units are close to market levels with minimal concessions, which is a positive sign.)
Summary of Year-over-Year Changes and Notable Variances
In summary, Q3 2025 was a much stronger quarter than Q3 2024 for Hobbs Self Storage. The facility has transitioned from its early lease-up stage in 2024 to a more stabilized operation in 2025. Key highlights include: substantially higher revenue (driven by greater occupancy and improved rental rates), improved NOI turning positive (a big turnaround from last year’s loss), and robust operational metrics showing healthy demand. Occupancy is up ~15 percentage points year-over-year, and the property is over halfway full by unit count. Leasing velocity remains good – 2025 had more move-ins, though naturally also more move-outs, as the tenant base expanded. The net result is that Hobbs Self Storage continued to grow its occupancy in Q3 2025, albeit at a moderated net absorption compared to the initial ramp-up pace of 2024. The trend in gross potential rent and economic occupancy indicates the facility has been able to raise rental rates slightly and convert a larger share of potential income into actual income, boosting profitability.
Looking ahead, the major variance to monitor is occupancy momentum versus churn. As of Q3 2025, occupancy growth has slowed (net +6 units in Q3 2025 vs +8 in Q3 2024) because move-outs have increased with a larger customer base. This is expected in a more stabilized operation, but we will want to focus on tenant retention strategies to keep climbing toward full occupancy. On the expense side, costs are under control relative to revenue – the margin improvement suggests economies of scale are kicking in. We should continue to see NOI expand going forward if we maintain revenue growth and prudent cost management.
Overall, the year-over-year performance in Q3 shows a very positive trajectory: higher occupancy and revenue, improving conversions and sustained demand, and a turn toward profitability. These gains set a solid foundation heading into the end of 2025, with the property much closer to stabilization than it was a year ago. The owner can take confidence that Hobbs Self Storage has materially strengthened its financial and operational position in the past 12 months, positioning us well for continued success.
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