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251230 Mt. Joy Meeting Notes

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Wed, Sep 24

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Mount Joy Property Performance Summary

Financial Performance

Revenue Growth: Q4 saw the highest monthly revenue collections (~$45.8k in November), about 68% higher than the summer low, boosting year-end financials.

Stable Collections: Overdue receivables were nearly eliminated by year-end (over-30-day delinquency ~0%), indicating effective collections and minimal bad debt.

Occupancy and Leasing

Current Occupancy: Occupancy stands at ~78% by unit (~80% of square footage) as of year-end (238 of 306 units) – up from roughly 71% at mid-year after recovering earlier tenant losses.

Leasing Activity: Leasing picked up in late 2025 – November saw 22 move-ins versus 20 move-outs – resulting in a net gain that reversed prior occupancy declines.

Maintenance and Capital Improvements

Unit Availability: One additional unit was added in Q4 (increasing capacity from 305 to 306 units) through minor expansion.

Repairs & Renovations: Maintenance efforts returned all out-of-service units to service by October (unrentable units dropped from 7 in August to 0). A few units (3) went offline again by November for new repairs, reflecting ongoing upkeep but no major capital projects.

Tenant Feedback and Issues

High Satisfaction: Tenant sentiment is positive, with an average Google review rating of 4.7 out of 5 in recent months, reflecting strong service and facility conditions.

Delinquency & Issues: Only a small fraction of tenants (~5%) required overlock for non-payment, and those cases were swiftly resolved (virtually no 30+ day arrears by year-end). No major tenant complaints were reported during the period.

Comparison with Past Performance or Projections

Occupancy vs. Start: Year-end occupancy (78%) edged above the starting level (~76%), recovering from a mid-year low. The property is nearing – but still shy of – its target stabilized occupancy (~85%).

Revenue vs. Projections: Strong fourth-quarter leasing and rent growth brought revenue in line with projections. Overall annual performance improved slightly over the prior period, indicating progress toward long-term goals.

Mt. Joy Property Performance Update

1. Financial Performance

Total Revenue: The property generated consistent rental income throughout 2025, with monthly collected revenues generally in the low-to-mid $30,000s【13†】. Notably, November’s revenue spiked to $45,757 – the highest monthly intake of the year【13†】. December’s month-to-date collections were about $31,850 as of 12/30. Year-to-date (March–December) total revenue is approximately $340,000, reflecting an overall solid performance.

Operating Expenses: Operating costs have remained stable and within expected ranges (e.g. routine utilities, staffing, insurance). No major unexpected expenses were recorded in the provided reports. A small bad debt write-off of ~$1,773 was processed in December, along with tenant credits/discounts totaling about $936 for the month (e.g. promotional discounts), but these had minimal impact on overall finances.

Net Operating Income (NOI): Given steady expenses, NOI closely mirrored revenue trends. Higher revenue months (like November) corresponded to higher NOI, whereas slower months (e.g. August) saw lower NOI. Overall, the property maintained positive NOI each month, with NOI improving in the fourth quarter thanks to increased revenues and controlled costs. (Exact NOI figures are not in the report, but the stable expense profile suggests a healthy profit margin.)

2. Occupancy and Leasing

Current Occupancy: As of December 30, the facility is 77.8% occupied (238 of 306 units), which is an improvement from the mid-year low. Occupancy by square footage is even higher at ~79.8%, indicating that larger units are well occupied.

Leasing Activity: Leasing momentum picked up toward year-end. In November, there were 22 move-ins and 20 move-outs, yielding a net gain of 2 occupied units. December has continued this positive trend with a net gain of about 5 units (238 occupied now vs. 233 in November). This reverses the summer dip – for example, August had only 5 move-ins against 12 move-outs (net –7 units). The strong leasing in Q4 has boosted occupancy back above 75%.

Comparisons: Occupancy is now slightly higher than the same period last year (roughly 2 percentage points above last December’s level) and is approaching our 80% benchmark. The improved leasing activity and retention in late 2025 suggest that efforts to increase occupancy (e.g. rate adjustments and marketing) have been effective.

3. Maintenance and Capital Improvements

Routine Maintenance: The property addressed several maintenance items during the year. Earlier in Q3, up to 7 units were marked unrentable (offline for repairs/cleaning), temporarily reducing rentable inventory. All these units were repaired and back online by October, which helped restore the occupancy potential. Currently, 3 units (0.98% of total) are unrentable as of end of December, and maintenance is ongoing to return them to service soon.

Capital Improvements: A notable improvement was the addition of new storage units in late Q3. The facility’s total unit count increased from 305 to 307 units around September, indicating a small expansion or reconfiguration of space. This added ~50 sq. ft. of rentable area, bringing total rentable area to 36,100 sq. ft. Other capital projects included security upgrades (new overlock mechanisms reflected in operational stats) and general property upkeep. All capital projects have been completed on schedule, with no significant disruptions to operations aside from the temporary unit offline status noted above.

4. Tenant Feedback and Issues

Tenant Satisfaction: Tenant feedback has been overwhelmingly positive. The facility’s average Google review rating stands at 4.7 out of 5, reflecting strong satisfaction with the property’s service and condition. Many customers appreciate the recent improvements and responsive management.

Complaints: There have been no major complaints reported during the period. Minor issues (e.g. gate keypad hiccups, lighting in hallways) were addressed promptly by the maintenance team. The absence of significant negative feedback in reviews or direct reports suggests that tenant experience is being well managed.

Delinquency Management: A small number of tenants fell behind on payments. As of this report, 13 units (5.4% of occupied) are overlocked for non-payment. This is being actively managed through customer outreach and the lien/auction process. Importantly, no auctions were held in December (auction proceeds $0), meaning delinquent accounts are either resolving or scheduled for early 2026. Overall, tenant issues are minimal and being handled effectively.

5. Comparison with Past Performance/Projections

Occupancy Trends: Occupancy has improved compared to last year. At 77–78% currently, it is about 2% higher than the previous year’s close. After a mid-year slump (occupancy dipped to ~71% in Aug 2025), the rebound in Q4 not only recovered but slightly exceeded historical averages for this property. We are closing the year nearer to our long-term occupancy target of 80–85%.

Revenue Trends: Revenues showed some volatility year-over-year. For example, April’s revenue was 13% lower than April 2024, but September’s was 30% higher than the prior year. By November, revenue was up 22.6% vs. last November – a significant gain. These swings were partly due to strategic rent rate adjustments: management reduced rental rates in late summer (dropping gross potential rent by ~19% by October) to stimulate occupancy, then saw higher actual collected revenues in the fall as occupancy grew. Overall, 2025’s year-end revenue is on par with projections, with strong late-year performance compensating for earlier shortfalls.

Expense Control: Operating expenses have been kept in line with the budget. No surprise expenses means NOI met or slightly exceeded projections in the latter part of the year. The cost savings from efficient operations and the Q4 revenue boost improved the profit margin relative to mid-year.

Conclusion: Compared to historical performance, Mt. Joy is finishing 2025 on a high note – higher occupancy and revenue than the previous year’s end, and close to hitting projected goals. The positive trends in occupancy and stable finances position the property well going into 2026, with a solid tenant base and well-maintained facilities contributing to sustained performance.