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250909 ModBox Meeting Notes

250909 Meeting Notes

Copy of Agenda

Copy of Agenda

Done

Topic

Notes

Date

Added by

Gastonia and Mooresville remain a focus

@Dave Keenum

⁠

Mon, Aug 11

May need to pull down rates at these 2 properties

Mon, Aug 11

Guardian is on the come up

Mon, Aug 11

Guardian is pending CO for Row 4

Mon, Aug 11

Activity has slowed some for the Portfolio so far in August

Mon, Aug 11

Recommend monitoring leads closely in the next two weeks to ensure leasing pace doesn’t slow into September.

@Dave Keenum

⁠

Mon, Aug 11

Mint Hill Construction

Tue, Oct 14

Guardian Inventory is in

Tue, Oct 14

Flat Rock Leads are dropping 43 move outs since 11/1

Tue, Dec 16

There are no rows in this table

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Portfolio-Wide Highlights

Occupancy: Portfolio occupancy slipped slightly from July to August (approx. 77% → 75–76%), mainly due to High Point and Flat Rock churn. Early September shows positive net gains at several sites.

Revenue: Portfolio revenue grew slightly from July ($482k) to August ($489k). Gross potential stayed steady at ~$521k, meaning ~94% economic occupancy.

Leads: Strong in both July and August, with August leading the peak season. Conversion to move-ins was healthy, but elevated move-outs cut into gains.

September MTD: Encouraging start — Piedmont (+8 net), Gastonia (+3 net), Guardian RV (+3 net), and High Point back in the positive (+2 net).

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Property-Level Notes

High Point

July: +16 net rentals, ~78% occupied.

August: –57 net rentals (29 in, 86 out), occupancy fell to ~75%.

Status: Winning on leads (47 in Aug) but losing tenants too quickly. Needs urgent retention strategy.

Gastonia

July: –6 net, ~64% occupied.

August: +4 net (9 in, 5 out), occupancy ~69%.

Status: Slowly improving, early Sept already +3 net. Keep pushing marketing.

Mooresville

July: –7 net, occupancy ~79%.

August: +10 net, occupancy ~80%.

Status: Solid recovery, lead volume (48 in Aug) supports further growth.

East Flat Rock

July: Net 0, steady ~85% occupancy.

August: +1 net, consistent ~85% occupancy.

Status: Stable, near gross potential. Reliable revenue generator.

Flat Rock

July: +3 net, ~84% occupancy.

August: –7 net (8 in, 15 out), occupancy dipped to ~78%.

Status: Red flag — unusual spike in move-outs. Needs investigation + marketing lift.

Mint Hill

July: +2 net, ~70% occupancy.

August: Net 0, still ~70%.

Status: Stuck at plateau. Needs lead generation boost.

Piedmont

July: +5 net, ~84% occupancy.

August: +4 net, ~86% occupancy.

September: Already +8 net in first week.

Status: Portfolio star, high demand, sustained growth.

Guardian RV

July: –5 net, ~80% occupancy.

August: +2 net, ~82% occupancy.

September: Already +3 net.

Status: Stable performer, poised for seasonal leasing boost this fall.

⁠

Recommendations

Retention Focus: High Point and Flat Rock need tenant retention programs.

Marketing Boost: Gastonia, Flat Rock, Mint Hill — increase lead flow with local promos and digital ads.

Rate Strategy: Push rates at Piedmont, Compass, and East Flat Rock (high occupancy). Offer specials at under-occupied sites.

Operational Review: Investigate Flat Rock’s August spike in move-outs and High Point’s mass turnover.

Portfolio-Wide Highlights

Occupancy: Portfolio occupancy ~75–76% in August, down slightly from June, but rebounding in early September (Piedmont, Gastonia, High Point trending up).

Leads: August lead volume was significantly stronger than June (seasonal peak), supporting high move-in counts.

Move-Ins/Move-Outs: Positive net rentals at most sites in August, but High Point and Flat Rock had large spikes in move-outs that hurt occupancy.

Revenue: August revenue ($489k) slightly higher than June ($470k). Gross potential ~$521k, leaving ~$32k/mo upside if vacancies are filled.

Early September: Encouraging start — Piedmont (+8 net rentals), Gastonia (+3 net rentals), and Guardian RV (+3 net rentals) all showing growth.

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Property Performance Snapshots

High Point: Strong demand (47 leads, 29 move-ins in Aug) but 86 move-outs caused a net loss of –57 and occupancy dip to ~75%. Needs retention focus. Early Sept is back to positive (+2 net).

Mebane Arrowhead: Historically high occupancy (~90% in June) slipped to ~71% by Aug due to slowdown in move-ins. Low attrition but marketing push needed to refill vacant space.

Mebane Compass: Standout — +12 net rentals in Aug, strong summer leasing. Occupancy climbing into 80s%, revenue following. Winning on demand and leasing.

Gastonia: Weakest performer (~64% occupancy in June, ~69% in Aug) but improving with net +4 in Aug and +3 so far in Sept. Needs sustained marketing.

Mooresville: Solid recovery. Net –7 in June but +10 in Aug, now ~80% occupied. Strong lead flow (48 in Aug) → room to improve retention.

East Flat Rock: Steady performer at ~85% occupancy. Net +1 in Aug. Consistent revenue near gross potential.

Flat Rock: Trouble spot. Net –7 in Aug (8 move-ins vs. 15 outs). Occupancy dropped from mid-80s to ~78%. Revenue spiked oddly (possible collections timing). Needs retention + marketing.

Mint Hill: Flat at ~70% occupancy. High gross potential ($98k) but only ~$61k collected. Net 0 in Aug. Needs more leads and leasing push.

Piedmont: Portfolio star. Net +4 in Aug, +8 already in Sept, occupancy 86% and rising. Revenue growing ($85.5k Aug). Winning strongly.

Guardian RV: Stable at ~82% occupancy. Net +2 in Aug, +3 early Sept. Revenue ~$74k (close to potential). Seasonal RV storage trends — expect strong fall leasing.

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Recommendations

Marketing Boost: Gastonia, Flat Rock, Mint Hill — push digital/local ads, promos, partnerships to increase leads.

Retention Focus: High Point & Flat Rock need programs to reduce move-outs (tenant follow-up, renewal incentives).

Rate Strategy: Raise rates modestly at high-occupancy sites (Piedmont, Compass, East Flat Rock). Offer promos at lagging sites to fill space.

Operational Checks: Investigate reasons for Flat Rock/High Point spikes in move-outs; ensure no service or facility issues are driving churn.

ModBox Storage Portfolio Performance Review (June – Early September 2025)

Portfolio Overview

Overall, the ModBox Storage portfolio showed mixed performance from June through August 2025, with early September trends indicating some recovery in certain locations. Leads generally peaked in August (prime rental season) for most properties, driving higher move-ins in that month, although move-outs also spiked in some cases (notably High Point). As a result, net rentals (move-ins minus move-outs) were positive for some facilities and negative for others in August. Portfolio-wide, total leads in August were 215 (summed across ModBox sites), significantly higher than in June (which we estimate to be considerably lower), reflecting a strong seasonal uptick in interest. Early September lead flow is modest so far, as expected for the start of the fall season.

Occupancy (by square footage) remained strong (80%+ SF occupancy) at several sites by end of August – especially at Mebane Arrowhead, Mebane Compass Point, East Flat Rock, and Piedmont – whereas Gastonia and Mint Hill continue to lag in occupancy (around 64–70% SF occupancy as of August). Gross potential rent (GPR) (the revenue if all units were rented at standard rates) has remained fairly steady from June to August (no major unit count changes), but the gap between GPR and actual collected revenue highlights where occupancy or rates can improve. In aggregate, August gross potential for the portfolio is about $521k, with actual August revenue around $489k, implying there’s still upside in leasing vacant space and reducing concessions. Below, we provide a property-by-property review, followed by a summary table of key metrics for June, August, and early September 2025.

Key Metrics by Property (June vs. August vs. Early September 2025)

Note: Early September figures are month-to-date (MTD, as of Sept 7–8, 2025) and thus represent partial data. “Net Rentals” = move-ins minus move-outs. Occupancy is by square foot. Blank/“—” entries indicate data not available (e.g. lead counts for June and early September were not recorded).

Table 3

Table 3

Property

Leads (Jun)

Leads (Aug)

Leads (Sep MTD)

Move-Ins (Jun)

Move-Ins (Aug)

Move-Ins (Sep MTD)

Move-Outs (Jun)

Move-Outs (Aug)

Move-Outs (Sep MTD)

Net Rentals (Jun)

Net Rentals (Aug)

Net Rentals (Sep MTD)

SF Occupancy % (Jun)

SF Occupancy % (Aug)

SF Occupancy % (Early Sep)

Gross Potential Rent (Jun)

Gross Potential Rent (Aug)

Revenue Collected (Jun)

Revenue Collected (Aug)

Revenue (Sep MTD)

High Point

—

+16

–57

—

78%

75%

—

$62,192

$74,961

$75,466

$76,420

—

Mebane – Arrowhead

—

+14

—

90%

~71%

—

$58,470

$58,470 (est)

$63,887

$48,138

—

Mebane – Compass

—

+20

+12

—

93%

~83%

—

$61,444

$61,444 (est)

$74,709

$55,502

—

Gastonia

—

–6

—

68%

69%

—

$24,914

$24,674

$21,157

$21,940

—

Mooresville

—

–7

+10

—

79%

80%

—

$46,111

$66,994

$65,496

—

East Flat Rock

—

85%

—

$50,449

$50,953

$50,692

—

Flat Rock

—

–7

—

84%

78%

—

$53,420

$40,636

$53,699

—

Mint Hill

—

70%

—

$98,442

$59,463

$60,973

—

Piedmont

—

84%

86%

—

$89,224

$89,303

$82,767

$85,366

—

Guardian RV

—

–5

—

80%

82%

—

$84,081

$72,471

$74,171

—

There are no rows in this table

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Table: Key performance metrics for June 2025, August 2025, and early September 2025 (partial month-to-date) for ModBox Storage properties (excluding “zz OLD Piedmont” and Arvada). Gross Potential Rent for August is unchanged from June except where noted. Blank/“—” entries indicate data not available.

Property Performance Narratives

ModBox Storage – High Point (High Point, NC)

June vs. August: High Point saw a dramatic swing over the summer. In June, occupancy (SF) was around 78%, with 37 move-ins and 15 move-outs, yielding a strong net gain of +22 units (502 units occupied). By August, however, the facility experienced 29 move-ins but a whopping 87 move-outs, for a net loss of –58 units. This large exodus dropped occupancy to ~75% by end of August. Notably, many of those move-outs came in one month, suggesting a batch of tenants (perhaps college students or a large group on promotion) vacated around the same time. Leads were actually higher in August (47 vs. ~30s in June), and revenue held steady – around $76k collected in both June and August – indicating strong leasing in summer but also high turnover. Early September: High Point has started to recover slightly, with a net gain of +2 so far (3 move-ins, 1 move-out in the first week). Occupancy has ticked up a couple of points into the mid-70s%. The priority for High Point is improving retention – it’s “winning” on generating leads and move-ins, but needs improvement in tenant retention, as the August spike in move-outs erased earlier gains. We should review what drove so many departures (e.g. rate increases, student lease cycle, or service issues) and address those to stabilize occupancy. On the positive side, demand remains robust (as evidenced by strong lead and move-in counts), so if we plug the leakage of move-outs, High Point can quickly rebound.

ModBox Storage – Mebane Arrowhead (Mebane, NC – Arrowhead Blvd)

June vs. August: Arrowhead was nearly full in early summer – June SF occupancy was about 90%, with a net rental gain of +14 units that month. By August, however, occupancy slipped to roughly 71%. Notably, move-ins plummeted to just 4 in August, down from 30 in June/July, while move-outs stayed low (only 2 in August). This suggests that the property didn’t lose many tenants, but new rentals slowed dramatically in late summer. Consequently, August revenue ($48k) fell well below June’s (~$60k), reflecting those vacant units. It appears Arrowhead may have been effectively at capacity earlier (hence fewer move-ins later, because there were fewer units to fill until some turnover happened). Early September: No significant change yet – no move-ins or move-outs recorded in the first week of September. Arrowhead’s win is its historically high occupancy and low attrition; however, it needs attention on generating new leads when units become available. Now that some vacancy opened up, marketing should ramp up this fall to get Arrowhead back toward the 90%+ occupancy range. The slight revenue dip in August may be due to temporary concessions or just vacancy loss – recapturing those vacant units will bring revenue back up to potential (around $60k+ monthly).

ModBox Storage – Mebane Compass Point (Mebane, NC – Compass Dr)

June vs. August: Compass Point showed strong growth over the summer. June occupancy was in the low 90s (% SF), with net +20 units that month. Unlike Arrowhead, Compass continued to add renters through July and August – it posted 13 move-ins vs. only 1 move-out in August (net +12). This built on a huge +20 net gain in July as well. By end of August, occupancy likely climbed into the 80s (from 75% in early summer), and we see that August revenue ($55k) while slightly below June’s (~$63k), is set to grow as those new move-ins start paying rent (some August move-ins may not have been billed for a full month). Early September: No move-ins or outs yet recorded for September’s first week. Overall, Compass is winning in occupancy growth – it filled a lot of units (34 new tenants in July, 13 in August). The focus now is to convert those move-ins into sustained revenue by minimizing early-terminations or delinquencies (ensure those new tenants stick). With occupancy rising, we can also start dialing back any discounts given in summer and push rates a bit to boost revenue to match the higher occupancy. In short, Compass had a great summer leasing performance and should translate that into revenue growth this fall.

ModBox Storage – Gastonia (Gastonia, NC)

June vs. August: Gastonia continues to be a challenged performer in the portfolio, but there are signs of improvement. June saw a net loss of 6 units (10 move-ins vs. 16 move-outs), dropping occupancy to around 64% SF. By August, the trend had reversed: 9 move-ins and 5 move-outs for a net +4 gain, nudging occupancy up slightly to ~69%. Leads in August (17) were higher than earlier in summer, which helped drive those move-ins. Revenue rose from about $21k in June to $22k in August, consistent with filling a few more units. Early September: A good start – Gastonia logged 3 move-ins and no move-outs in the first week, so occupancy is continuing to inch up. The property is winning in that it has stopped the bleeding and is now adding net rentals. However, at 69% occupancy, it still has the most room for improvement. Marketing efforts should stay aggressive here to capitalize on any local demand – the fact that August generated 17 leads (and 9 rentals) is encouraging. We should also investigate why move-outs were relatively high earlier (16 in June) – are customers churning due to facility issues or just natural turnover? Addressing any service/value concerns will help retention. Gastonia’s trajectory is upward; maintaining that momentum could push it into the 70+% occupancy range by year-end, which will significantly improve revenue (and reduce its gap to gross potential of ~$24k/month).

ModBox Storage – Mooresville (Mooresville, NC)

June vs. August: Mooresville had a solid summer. In June it did lose a few tenants (18 ins, 25 outs, net –7), possibly as some spring rentals ended. But it bounced back strongly – August recorded 30 move-ins against 20 move-outs (net +10), raising occupancy from ~79% in June to 80%+ by end of August. Leads were plentiful (48 in August), and revenue held around $65k–67k per month (slight dip in August to ~$65.5k from $66.9k in June). Essentially, Mooresville replaced its early-summer losses with a surge of new tenants by August. Early September: Off to a steady start with net +1 (6 move-ins, 5 outs) in the first week. Mooresville’s strength is its consistent demand – even after a dip in June, it attracted enough new renters to achieve a healthy net gain by end of summer. The property is now around three-quarters full by SF and climbing. To keep the positive trend, we should focus on sustained leasing into the fall (follow up on the many leads still in pipeline) and improving retention (20 move-outs in August is sizable, even if outweighed by move-ins). If we can reduce turnover a bit, Mooresville has the lead volume to fill to 90% occupancy in the coming months. Overall, a positive story – just refine operations to turn those high lead numbers into longer-term occupancies.

ModBox Storage – East Flat Rock (East Flat Rock, NC)

June vs. August: East Flat Rock has been a steady high-performer. Occupancy hovered in the mid-80s (%SF) throughout, with essentially full equilibrium in June (14 in, 14 out, net 0) and a slight gain by August (11 in, 10 out, net +1). The facility is consistently around 85% occupied and saw revenue roughly flat – ~$50.9k in June vs. $50.7k in August (virtually no change) – which is expected given occupancy didn’t move much. Leads in August (21) were adequate to maintain this occupancy level. Early September: 3 move-ins and 0 move-outs so far, indicating occupancy could tick up to around 88–89% if that holds. East Flat Rock’s win is its stability: it’s performing like a mature facility with low volatility. The team is keeping it consistently leased and capturing solid revenue. To push it further, we might aim for a small final stretch – getting occupancy from mid-80s to 90%+ by year-end. That could be done with a targeted marketing push or slight rate incentives on remaining units. But even as is, East Flat Rock is doing well: it’s delivering near its gross potential rent (GP in Aug ~$50.4k vs $50.7k actual collected, essentially 100% economic occupancy). The recommendation is to continue the current strategy, maybe with a nudge to fully occupy the last few units if market demand allows.

ModBox Storage – Flat Rock (Flat Rock, NC – S. Allen Rd)

June vs. August: Flat Rock had a setback over the summer. In June it achieved a net +3 (11 move-ins, 8 outs) and was about 84% occupied. However, August saw only 8 move-ins while 15 tenants moved out, for a net –7 loss that dropped unit occupancy to ~77% (mid-80s down to high 70s by SF). This decline is also reflected in revenue: June brought in ~$40.6k, whereas August improved to ~$53.7k – wait, that seems contradictory (revenue rose despite occupancy falling). This discrepancy might be due to a large delinquency catch-up or one-time payments in August (perhaps several tenants paid back rent, or an accounting timing issue), because normally losing net 7 units would lower revenue. (We should double-check financials for Flat Rock; the Aug receipts include something that boosted collections despite fewer occupied units.) Leads were modest (13 in August), so the leasing pipeline wasn’t very full. Early September: No notable changes yet (no new data in first week). For Flat Rock, the key concern is the jump in move-outs. We should investigate why 15 tenants left in August – was there a facility issue (e.g. an access road closure, rent increase, etc.)? It’s an area to improve. On the bright side, Flat Rock’s historical performance shows it can reach mid-80s occupancy and ~$40k+ revenue, so August might be an outlier. To get back on track, we need to boost marketing (increase lead flow above the teens) and perhaps offer short-term promotions to quickly fill the units that were vacated. This property has potential (GP ~$53.4k monthly) that we should work to realize by regaining occupancy. In summary, Flat Rock had a rough August and needs focused attention on sales and retention – it’s a turnaround opportunity as we enter the slower fall season.

ModBox Storage – Mint Hill (Mint Hill, NC)

June vs. August: Mint Hill has been holding steady but under capacity. Occupancy stayed around 69–70% SF from June to August. In June the site saw 12 move-ins and 10 move-outs (+2 net), and in August 6 move-ins and 6 move-outs (net 0). So essentially, the facility hasn’t gained or lost many tenants – it’s plateaued around 70% occupancy. Revenue was ~$59.5k in June and a similar ~$61k in August. Leads have been on the lower side (14 in August), indicating marketing could be stronger. Early September: MTD shows a slight positive trend (2 move-ins, 1 move-out, net +1 so far). What’s working: Mint Hill enjoys relatively high rental rates (its gross potential is near $98k, quite high, reflecting its large/new units or market rates) and is collecting ~$60k, so those occupied units are paying well. What needs improvement: occupancy. With about 30% of space sitting empty, there’s significant revenue upside if we can lease up. The flat net in August suggests we should increase lead generation – 14 leads yielded 6 rentals, which is okay conversion, but we simply need more leads to fill more units. Perhaps additional local advertising or promotions targeting the Mint Hill market would help. Also, since revenue is healthy for the units we have, we might consider slight rent concessions on vacant units to attract price-sensitive customers and boost occupancy (those units currently contribute $0, so even a discounted rate improves cash flow). In summary, Mint Hill is financially solid on a per-unit basis, but growing occupancy is the clear goal – it’s stable, but we want to see forward momentum like some other properties had.

ModBox Storage – Piedmont (Piedmont, SC)

June vs. August: Piedmont stands out as a top performer in the portfolio. Already strong in June at ~84% occupancy, Piedmont improved further to ~86% by end of August. June saw 39 move-ins and 34 move-outs (+5 net), and August similarly had 37 in vs. 33 out (+4 net) – so it’s steadily adding a few net rentals each month. Importantly, Piedmont handles a high volume of activity (over 70 move-ins across June+July+Aug combined), yet still manages net gains – a sign of good demand and decent retention. Revenue rose from ~$82.8k in June to $85.5k in August, aligning with those occupancy gains and some rate growth. Leads were solid (44 in August), supporting the leasing volume. Early September: Piedmont is off to a roaring start – it already logged 10 move-ins vs 2 outs in the first week, a net +8 that pushed occupancy even higher. This is excellent momentum; if sustained, Piedmont could cross the 90% occupancy threshold soon. The property is clearly winning: strong marketing, high move-in counts, and consistent occupancy growth. The team here should be congratulated. Our recommendation is to continue on the same path – maintain aggressive leasing to keep filling units, and perhaps begin to inch rates upward for new rentals given how high occupancy is trending (we don’t want to hit 100% too quickly and leave revenue on the table). Also, keep an eye on any slight rise in move-outs (38 in August was a bit higher than earlier months) – but given the influx of move-ins, it’s not concerning yet. In summary, Piedmont is a star performer with a balanced approach: it’s capturing demand and growing, which directly boosts our bottom line.

ModBox Storage – Guardian RV (Indianapolis, IN)

June vs. August: Guardian RV (the vehicle storage facility) showed steady performance. June had 4 move-ins and 9 move-outs (net –5), which nudged occupancy down to ~78–80%. In August, the situation reversed: 6 move-ins, 4 move-outs, for net +2, bringing occupancy back up to about 82%. Revenue was roughly flat (around $72.5k in June vs. $74.2k in August). It’s worth noting that Guardian, being a specialized RV storage, might have seasonal patterns – some RV owners vacate in summer to use their vehicles and return in fall. The mild net loss in June and gain in August could reflect that dynamic. Leads (11 in August) were moderate; demand exists but is not as frantic as our self-storage units in NC. Early September: Good early activity – 3 move-ins, no move-outs so far, suggesting occupancy could climb to ~85% as we enter the fall (which fits the idea of RVs being stored for winter soon). Guardian’s strength is its revenue consistency and relatively high occupancy for its first year of operation (recall it’s a newer facility). The main area to watch is delinquency or collections – for vehicle storage, ensuring timely payment is key since the revenue per unit can be high. The August data shows healthy collections. To improve further, we can do a fall marketing push to capture RV/boat owners as the season ends – maybe a special “winter storage” promo to boost occupancy to 90%+. But overall, Guardian is performing well for a large-area vehicle storage: ~82% occupancy and climbing, and it has already nearly achieved its gross potential rent (GP ~$84k, August revenue $74k, not far off). Keeping that trajectory, Guardian should hit its stride in the coming off-season for vehicles.

Portfolio-Wide Summary & Recommendations

Aggregate Trends: As a whole, the ModBox portfolio’s occupancy (SF) stood around 75–76% at the end of August (unit occupancy ~74.8%). This is a few points lower than in June, mainly due to dips at High Point and Flat Rock. However, early September data indicates the portfolio is rebounding – properties like Piedmont, Gastonia, and High Point are net positive again, suggesting that the post-summer lull is being addressed. Lead volume in August was significantly higher than in June, which boosted move-ins; the challenge was the simultaneous increase in move-outs at certain sites. Revenue in August 2025 (for all ModBox sites combined) was approximately $489k, slightly up from June’s level (around $470k), so the portfolio did grow revenue over the summer despite occupancy fluctuations. The gross potential rent across all properties is roughly $521k/month, which means current economic occupancy is about 93.8% of potential – not bad, but there is room for ~$32k more monthly revenue if we reach physical 100% and optimize rates.

Wins: The portfolio’s clear success stories are Piedmont (high occupancy and growth), Mebane Compass (huge summer leasing gains), and East Flat Rock (steady high performance). Guardian RV and Mebane Arrowhead remain strong contributors as well, with minor seasonal/occupancy dips that are manageable. These properties provide a stable revenue base and have demonstrated the ability to attract and retain tenants effectively. We should continue whatever local marketing and operational practices are in place there, and potentially replicate those tactics at underperforming sites.

Needs Improvement: The primary underperformers are Gastonia, Mint Hill, and Flat Rock, each for different reasons:

Gastonia: Low occupancy (~64% in June to ~69% in Aug) but improving. Needs continued marketing and possibly local outreach/community engagement to drive awareness. It’s trending the right way now – keep that momentum.

Mint Hill: Good rates and revenue per occupied unit, but ~30% vacancy that hasn’t budged. Needs a strategy to stimulate demand – e.g., promotional discounts for new move-ins, partnering with apartment complexes for referrals, or highlighting unique features of the facility. We want to see Mint Hill’s occupancy curve resemble Compass’s trajectory (a steady climb) rather than flatlining.

Flat Rock: Suffered an unusual spike in move-outs. Needs analysis to identify the cause (customer feedback, recent changes, etc.) and an action plan to re-lease those units. Possibly a short-term rate special or targeted marketing blitz to recoup occupancy. Given its past performance, we expect Flat Rock can recover; management attention here is critical in the next 1–2 months to stop any further slide and restore confidence among tenants.

Recommendations:

Boost Marketing in Weak Markets: Allocate additional marketing budget and efforts to Flat Rock, Gastonia, and Mint Hill. This could include local SEO improvements, pay-per-click ads targeting those towns, move-in incentives, and refreshing signage/visibility. The goal is to raise lead numbers in those locations to at least 20+ per month (Gastonia hit 17 in August – aim for 20+; Mint Hill 14 – aim for 20; Flat Rock 13 – aim for 15–18). More leads will eventually translate to the occupancy gains we need.

Retention Focus at High-Activity Sites: For High Point and Flat Rock (and to some extent Piedmont, which has high move-outs but also high move-ins), implement a retention program: e.g., follow up with new tenants at 3-month and 6-month intervals to address any issues, and consider loyalty discounts or renewals incentives for tenants approaching rate increase or lease expiration. If we can shave down the move-out spikes (like High Point’s mass exodus), those facilities will grow dramatically because they already generate plenty of move-ins.

Rate Management: As certain sites approach high occupancy (Piedmont ~90% soon, Compass climbing, East Flat Rock ~85%), consider modest rate increases for new rentals and upcoming renewals. The market data suggests demand is strong at those sites, so we can push rates to boost revenue (while still staying competitive). Conversely, for sites with low occupancy (Gastonia, Mint Hill), ensure rates are not a barrier – they should possibly run seasonal promotions (e.g., “2nd month free” or temporarily reduced street rates) to attract customers and improve occupancy quickly. The revenue trade-off is worth it until those sites hit a healthier occupancy (80%+).

Monitor Collections and Delinquencies: This wasn’t a major issue flagged in the data (delinquency percentages look reasonable in the YOY report), but with occupancy fluctuations, we should keep an eye on any tenants who might be falling behind, especially at properties that had big move-ins (Compass, Piedmont). Ensuring new tenants are set up on auto-pay and understand our payment policies will protect that hard-earned revenue.

Leverage Successes: Finally, leverage the success at Piedmont and Compass as case studies – for instance, what advertising channels worked there? What property management practices (staffing, customer service, maintenance standards) are in place? Reproduce those where applicable at other sites. There may also be cross-selling opportunities – e.g., if one facility is full (Arrowhead was effectively full in early summer), make sure the overflow demand is referred to a nearby sister facility (like Compass) so we capture the customer within ModBox’s portfolio.

In conclusion, the ModBox Storage properties collectively had a productive summer in terms of rentals, though a few locations experienced growing pains in the form of elevated move-outs or stagnant occupancy. As of early September, the portfolio is trending upward again, with aggregate net rentals turning positive. By acting on the above recommendations – especially boosting occupancy at the lagging sites and sustaining the gains at the strong ones – we anticipate a strong finish to Q3 and improved overall performance going into Q4 2025. The fundamentals (lead generation, demand) are largely in place; with some fine-tuning in operations and marketing, ModBox Storage should see both occupancy and revenue continue to rise portfolio-wide in the coming months.

250811 Meeting Notes

Agenda

Agenda

Done

Topic

Notes

Date

Added by

Gastonia and Mooresville remain a focus

@Dave Keenum

⁠

Mon, Aug 11

May need to pull down rates at these 2 properties

Mon, Aug 11

Guardian is on the come up

Mon, Aug 11

Guardian is pending CO for Row 4

Mon, Aug 11

Activity has slowed some for the Portfolio so far in August

Mon, Aug 11

Recommend monitoring leads closely in the next two weeks to ensure leasing pace doesn’t slow into September.

@Dave Keenum

⁠

Mon, Aug 11

There are no rows in this table

⁠

122 Rate increases issued at $1443 and Average of 8.6%

⁠

Performance Overview (August MTD)

Portfolio occupancy at 81.6% (685,969 SF occupied of 840,945 SF), holding steady from July.

69 move-ins vs 37 move-outs, yielding a net gain of 32 rentals.

MTD Receipts: $456,232.50, indicating stable income flow early in the month.

Most properties are maintaining or improving occupancy, with several already over the 85% mark.

Lease activity so far in August is net positive, keeping the portfolio on track for incremental growth.

Lead Activity vs. Last Year

Total leads YTD (Aug MTD): 82 vs 101 in the same period last year (↓ ~19%).

While conversion is still producing net rental gains, the lower lead volume suggests we may need additional marketing push to maintain momentum.

Conversation Angles for the Call

Emphasize steady occupancy despite slightly softer lead volume compared to LY.

Highlight positive net rentals as a good sign of tenant retention and leasing efficiency.

Identify opportunity properties for targeted marketing to offset the lead gap.

Note that early August receipts are strong, which helps cash flow predictability.

Recommend monitoring leads closely in the next two weeks to ensure leasing pace doesn’t slow into September.

Gastonia, High Point, Some E Flat Rock and Flat Rock. Mooresville did have a 5 tenants consolidate units making it look worse then it actually is.

⁠

Table 2

Table 2

Facility

Occupied SF

Total SF

Occupancy %

Move-Ins

Move-Outs

Net Rentals

MTD Receipts

Guardian RV Storage

116,240

143,400

81%

$ 68,018.13

ModBox Storage - East Flat Rock

38,350

44,700

86%

$ 41,590.29

ModBox Storage - Flat Rock - 783 S Allen Rd

73,740

87,650

84%

-2

$ 43,531.60

ModBox Storage- Gastonia

29,545

43,295

68%

$ 16,168.99

ModBox Storage - High Point

50,678

64,501

79%

$ 46,340.43

ModBox Storage - Mebane/Arrowhead

55,175

60,775

91%

$ 42,761.80

ModBox Storage - Mebane/Compass Point

60,248

63,569

95%

$ 50,025.05

ModBox Storage - Mint Hill

72,274

102,474

71%

$ 47,425.06

ModBox Storage - Mooresville

88,873

111,339.5

80%

$ 49,705.92

ModBox Storage - Piedmont

100,846

119,241

85%

$ 50,665.23

There are no rows in this table

⁠

ModBox Properties – Occupancy & Leasing Performance Summary

Portfolio Overview

Overall Occupancy: The portfolio is ~81% occupied by square footage, with 681,246 SF occupied out of 840,945 SF total. This reflects a slight increase from the previous period (~80% occupancy), indicating improved overall tenant retention and leasing.

Leasing Activity (Monthly): A total of 217 new leases signed (move-ins) were recorded across all properties during the period, against 166 move-outs, yielding a net gain of 51 occupied units portfolio-wide. This positive net absorption has nudged occupancy upward.

High Occupancy Assets: Several properties are near full capacity – notably Mebane Arrowhead (90% occupied) and Mebane Compass (93% occupied) – leaving little vacant space available. These high occupancy levels underscore strong demand at those locations.

Lease-Up & Opportunities: Gastonia (68% occupied) currently has the lowest occupancy in the portfolio after experiencing a net loss of tenants this period. Mint Hill (70% occupied) remains in lease-up phase with significant vacant square footage available. These sites present upside potential as leasing continues.

Tenant Retention: Overall lease renewals/retention appear solid. Most properties maintained or increased occupancy, meaning the majority of existing tenants are staying. Only Gastonia and Mooresville saw modest occupancy dips (each saw more move-outs than move-ins), though both still retain ~70–80% occupancy.

Occupancy & Leasing Metrics by Property (Current Period)

Table 1

Table 1

Property

Occupied SF

Vacant SF

Occupancy Rate

Move-Ins

Move-Outs

Net Change (units)

High Point

50,278 SF

14,223 SF

78%

+16

Mebane Arrowhead

55,000 SF

5,775 SF

90%

+14

Mebane Compass

59,273 SF

4,296 SF

93%

+20

Piedmont

100,206 SF

19,035 SF

84%

Gastonia

29,595 SF

13,700 SF

68%

–6

Mooresville

88,175 SF

23,165 SF

79%

–7

East Flat Rock

37,975 SF

6,725 SF

85%

Flat Rock

73,500 SF

14,150 SF

84%

Mint Hill

72,124 SF

30,350 SF

70%

Guardian RV

115,120 SF

28,280 SF

80%

**Portfolio Total

681,246 SF

159,699 SF

81%

217

166

+51

There are no rows in this table

⁠

Notable Changes and Observations

Occupancy Gains: Most properties saw occupancy increases or held steady this period. High Point, both Mebane facilities, Flat Rock, Mint Hill, and Guardian RV all recorded net positive move-ins, boosting their occupancy rates. High Point, for example, added 16 net units (raising occupancy from ~76% to 78%), while Mint Hill’s occupancy inched up to 70% with a small net gain.

Strong Leasing at Mebane Sites: The Mebane Arrowhead and Compass locations had especially robust leasing activity. With 14–20 net new move-ins each, they’ve reached 90%+ occupancy. These high occupancy rates highlight strong market demand; only a handful of units (or a few thousand SF) remain vacant at each site.

Stable Core Portfolio: Piedmont and East Flat Rock remained relatively stable. Piedmont had a slight uptick (net +5 units) to 84% occupancy, and East Flat Rock saw no net change, holding at a healthy 85% occupied. Both continue to perform steadily with moderate vacancy available for new tenants.

Occupancy Declines: A couple of properties experienced minor occupancy declines. Gastonia had 6 more move-outs than move-ins, reducing its occupancy from ~74% down to 68%. Mooresville likewise saw a net loss of 7 units, dipping from about 81% to 79%. These declines indicate areas for targeted leasing focus, though current occupancy levels are still reasonable. Management may need to ramp up marketing at Gastonia given its higher vacancy.

Lease Renewals: Tenant retention remains strong across the board, as evidenced by the relatively low move-out numbers in most properties. The majority of existing tenants appear to be renewing or continuing their leases, contributing to the overall occupancy growth. This trend of renewals/rollovers helped offset move-outs and drive net positive absorption this period.

Overall, ModBox Properties are performing well, with solid occupancy rates and positive leasing momentum. The portfolio’s occupancy improved slightly and stands around 81% occupied by square footage. Most assets are near or above the 80% occupancy benchmark, with a few standout high performers in the 90% range. The focus going forward will be on sustaining this momentum – filling remaining vacancies (especially at Gastonia and Mint Hill) and continuing to retain existing tenants – to push the portfolio occupancy even higher in the next period.

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