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260109 Year End Review

View 4 of Agenda

View 4 of Agenda

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Topic

Notes

Date

Added by

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@Andrew Aue

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Review rates at Conway/Granville/Trimble/Magee

@Larissa Fincher

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Fri, Aug 8

Conway and Granville are College Properties. Is Marion?

Fri, Aug 8

Update on Benton drainage issues

Fri, Aug 8

All properties receipts are up to LY except Trimble

Fri, Aug 8

18% increases for 151 customer at $2272 for September

Fri, Aug 8

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@Larissa Fincher

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to dive into focus properties

Fri, Aug 8

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@Larissa Fincher

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check mansfield, OH for new comps

Fri, Aug 8

Menards is building storage on land

Fri, Aug 8

lower rates significantly at Trimble Road, get the property back on track and turn off veritec.

@Andrew Aue

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@Larissa Fincher

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Fri, Oct 10

Check on signage at Benton

@Larissa Fincher

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Fri, Oct 10

Benton 2 months free promo

@Larissa Fincher

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Fri, Oct 10

There are no rows in this table

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January 2026 MTD – Property-by-Property Summary

Prem 512 US 64 Posted negative net rentals (–3) driven by higher move-outs than move-ins. Occupancy is hovering around the portfolio average, with economic occupancy slightly below physical, indicating some rate leakage. Autopay and insurance penetration are solid where tracked, but demand has been soft early in the month.

Prem 560 US 64 Generated positive net rentals (+2) and remains relatively stable for January. Occupancy is holding, and churn appears manageable. Performance is modest but trending in the right direction.

Prem Benton One of the stronger performers with +4 net rentals. Physical occupancy is near 50%, with economic occupancy trailing slightly. Autopay penetration is strong at roughly 73%, and insurance adoption is very high, supporting revenue stability.

Prem Conway The weakest performer month-to-date with –10 net rentals driven by heavy move-outs. While physical occupancy remains near average, economic occupancy is materially lower, pointing to pricing pressure, delinquency, or tenant quality issues. This site needs near-term operational attention.

Prem Granville Recorded –5 net rentals. Occupancy is stable but declining, and economic occupancy trails physical. Performance reflects typical seasonal softness but bears monitoring.

Prem Greenbrier Nearly flat performance with –1 net rental. Occupancy is steady, and demand appears balanced, though not strong enough yet to offset churn.

Prem Greenbrier 277 Posted –2 net rentals. Occupancy and economic performance are in line with expectations, but demand remains muted.

Prem Hot Springs Finished slightly positive with +1 net rental. Activity is balanced, and the property is holding occupancy reasonably well for January.

Prem Laurel 12th The top performer in the portfolio with +6 net rentals. Strong move-in volume is outpacing churn, and occupancy and revenue metrics remain healthy.

Prem Laurel MS-15 Delivered +3 net rentals. Performance is solid, with stable occupancy and manageable churn.

Prem Little Rock Another strong site with +5 net rentals. Move-ins are strong and move-outs are limited, making this one of the most consistent performers entering Q1.

Prem MaGee Experienced –7 net rentals due to elevated move-outs despite solid move-in activity. Indicates high churn and possible sensitivity to pricing or collections.

Prem Main Street Posted –6 net rentals with very low move-in activity. This site is underperforming relative to the portfolio and should be reviewed for demand and pricing alignment.

Prem Marengo 1095 Recorded –3 net rentals. Occupancy is slipping modestly, with economic occupancy lagging physical.

Prem Marion High activity but negative results, with –6 net rentals. Strong move-ins are being overwhelmed by even higher move-outs, suggesting tenant quality or rate pressure issues.

Prem New Albany Also posted –6 net rentals. Demand exists, but churn is elevated, keeping occupancy under pressure.

Prem Newark Rd One of the softer performers with –5 net rentals and very low move-in volume. Economic occupancy trails physical, highlighting revenue opportunity but also risk.

Prem Orrville Delivered –3 net rentals. Performance is slightly negative but not materially out of line with seasonal expectations.

Prem Richards Near breakeven with –2 net rentals. Stable but lacking sufficient move-in velocity to offset churn.

Prem Trimble High transaction volume but still –2 net rentals. Indicates an active market with turnover rather than sustained absorption.

Prem Vilonia S Posted +2 net rentals on relatively low activity. Small but positive momentum heading into the remainder of the month.

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Overall Takeaway

January performance is being driven primarily by churn rather than demand, with a clear divide between strong performers (Laurel 12th, Little Rock, Benton) and properties under pressure (Conway, MaGee, Main Street, Marion). Physical occupancy remains relatively stable across the portfolio, but economic occupancy lagging physical is a consistent theme and represents the primary near-term revenue opportunity.

January MTD – Needs Attention Properties

High Priority (Immediate Review Recommended)

Prem Conway 🔴

Net rentals: –10 (worst in portfolio)

Move-outs are significantly outpacing demand.

Economic occupancy materially below physical, indicating rate erosion, delinquency, or aggressive discounting. Focus:

Review recent rate increases and concessions

Audit delinquency and auction pipeline

Confirm street rates vs competitors

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Prem MaGee 🔴

Net rentals: –7 despite healthy move-in volume

Churn is the primary issue, not demand

Likely tenant quality or price sensitivity Focus:

Analyze move-out reasons

Tighten screening and reduce short-term discounting

Review delinquency and fee waivers

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Prem Main Street 🔴

Net rentals: –6 with extremely low move-in activity

Indicates weak demand or pricing misalignment Focus:

Verify online visibility and lead conversion

Reassess unit mix and street pricing

Consider short-term demand stimulation (targeted promos)

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Medium Priority (Watch Closely)

Prem Marion 🟠

Net rentals: –6 with high overall activity

Strong move-ins being offset by even stronger move-outs Focus:

Examine tenant tenure and rate increase cadence

Evaluate collections and auction timing

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Prem New Albany 🟠

Net rentals: –6

Demand present but churn remains elevated Focus:

Review competitor pricing and concessions

Push autopay adoption at move-in and renewal

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Prem Newark Rd 🟠

Net rentals: –5 with minimal move-in volume

Economic occupancy lags physical Focus:

Reprice underperforming unit sizes

Audit insurance attachment and ancillary capture

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Prem Granville 🟠

Net rentals: –5

Performance consistent with seasonal softness but trending down Focus:

Monitor churn closely

Hold the line on discounting unless demand deteriorates further

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Low Priority (Monitor, No Immediate Action)

Prem 512 US 64 🟡

Net rentals: –3

Performance slightly negative but within normal January variance Focus:

Maintain pricing discipline

Continue pushing autopay and insurance

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Prem Marengo 1095 🟡

Net rentals: –3

Occupancy slipping modestly Focus:

Review rent roll for below-market legacy tenants

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Prem Orrville 🟡

Net rentals: –3

Slightly negative but stable Focus:

Monitor move-out trends; no immediate correction needed

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Prem Richards 🟡

Net rentals: –2

Near breakeven Focus:

Incremental pricing optimization

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Prem Trimble 🟡

Net rentals: –2 with high turnover Focus:

Improve tenant stickiness (autopay, insurance, longer tenure)

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Portfolio-Level Attention Themes

Churn > demand is the dominant issue this month

Economic occupancy trailing physical at most flagged sites

Autopay and insurance penetration remain the fastest, lowest-risk levers to stabilize NOI

January softness is normal, but Conway, MaGee, and Main Street are outside normal seasonal variance

Summary

Portfolio growth: Expanded from 14 → 20 properties in 2025, adding several Arkansas assets (Little Rock, Conway 512/560, Main St, Vilonia) plus Conway (AR) earlier in the year.

Occupancy (same-store): Improved from ~60% in January to 68% in December (positive leasing trend).

Occupancy (total portfolio): Ended around ~67% when including new acquisitions (most came in already well-leased).

Revenue: Core portfolio monthly revenue increased from about $275k (Jan) → $330k (Dec) (~+20%).

Annual revenue: Portfolio collected roughly $3.7M in 2025.

Rates: Mixed performance by property—lease-ups often held rates flat/used promos, while stronger sites pushed increases (example: Magee ~$0.98/SF → ~$1.05/SF). No uniform portfolio-wide rate hike.

Move-ins/outs: Net positive tenant growth overall; move-ins generally outpaced move-outs. Some near-full facilities had normal churn (e.g., Orrville) but stayed healthy.

AR / delinquency trend: AR >30 days increased across many properties by year-end. Most stayed manageable (single digits), but a few were high and need focus.

Examples: Richards Rd ~59%, Marion ~32%

New Q4 acquisitions showed very high inherited AR ratios (e.g., Main St ~360%, Conway 512 ~245%) → priority collections/clean-up in 2026.

Google reviews: Generally strong—most properties are 4.5–5.0 stars.

Improvements noted (example: Marion ~4.2 → 4.5)

Lower-rated standouts: Conway and Marengo (~4.3) → focus on service + review generation.

Property quick hits (from the excerpt you provided):

Benton: Big lease-up (6.5% → 38.0%); revenue $1.3k → $9.9k; AR >30 12%; Google 5.0.

Conway (AR): Occupancy strong but softened (76.1% → 72.8%, peaked mid-year); revenue ramped post-takeover $2.7k → $20.8k; AR >30 stayed low (2–5%); Google 4.4 → 4.3.

Granville: Occupancy up (78.9% → 84.5%) but revenue down ($46.2k → $40.1k) → worth investigating rate/discount mix; AR >30 ~5%; Google 4.6.

Greenbrier 277: Occupancy up (64.5% → 71.2%); revenue up $12.1k → $17.1k; AR >30 4% → 13%; Google 4.7.

Greenbrier 508: Occupancy flat/slightly down (66.4% → 65.1%); revenue up $9.0k → $9.9k; AR >30 3% → 22%; Google 4.9 → 4.8.

Marengo: Occupancy up (69.0% → 75.3%); revenue slightly up $13.8k → $14.8k; AR >30 5% → 19%; Google 4.3 (needs attention).

Marion: Occupancy up (53.7% → 61.0%); revenue up $24.2k → $31.0k; AR >30 8% → 32%; Google 4.2 → 4.5.

New Albany: Major gain (43.9% → 66.0%); revenue up $23.0k → $31.9k; AR >30 2% → 14%; Google 4.9.

Orrville: Occupancy down from near-full (95.6% → 86.2%) but revenue flat (~$25k); AR >30 steady 2%; Google 4.8 → 4.7.

Richards Rd: Occupancy down (85.6% → 77.2%); revenue down $13.0k → $11.3k; AR >30 jumped 10% → 59% (major issue); Google improved 4.3 → 4.5.

Trimble: Occupancy down (83.6% → 73.5%) but revenue flat (~$22.4k); AR >30 14% → 23%; Google 4.4 → 4.5.

Zanesville/Newa: Occupancy steady (84.2% → 83.0%) with revenue up $18.4k → $21.2k; AR >30 improved 7% → 4%; Google 4.3 → 4.5.

Laurel: Strong lease-up (26.6% → 43.9%) and revenue $7.8k → $14.5k; AR >30 6% → 23%; Google 5.0.

Laurel MS15: Occupancy flat (~80%); revenue up $32.3k → $35.0k; AR >30 low 2% → 4%; Google 4.9.

Magee: Occupancy up (61.3% → 78.2%); revenue up $10.6k → $16.3k; AR >30 8% → 24%; Google 4.9.

Little Rock: Early lease-up (ended 17.4%); low revenue ($569); AR clean (0%); Google 5.0.

Conway 512 / 560 / Main St / Vilonia: Entered late-year with solid occupancy, but AR >30 is the big story (high inherited delinquency), requiring immediate clean-up in 2026.

2025 Year-End Review: Premier Portfolio Performance

Portfolio Overview

In 2025, the Premier Storage portfolio expanded from 14 to 20 properties, including several new acquisitions in Arkansas (Little Rock, Conway 512 & 560, Main St, Vilonia) and one in Conway, AR early in the year. Overall occupancy across the same-store portfolio (the 14 properties active from January) improved from about 60% in January to 68% by December, reflecting a positive leasing trend. Including the new facilities, the portfolio ended the year at an aggregate occupancy of roughly 67%, as most new acquisitions were already well-leased upon takeover. Monthly revenue collection grew in tandem with occupancy gains – the core properties’ combined monthly revenue increased from approximately $275k in January to $330k in December (around a 20% rise). Total annual revenue collected for the portfolio was about $3.7 million in 2025. This revenue growth was driven by both higher rental incomes at stabilized sites and the addition of new revenue streams from acquisitions.

Rates: The average rental rates (per square foot) saw mixed changes. Properties that were leasing up (filling vacant units) often had to offer competitive rates, so their in-place rent per square foot stayed flat or even dipped slightly as occupancy rose (for example, Benton’s average rate per SF fell as lower-priced units were filled). In contrast, some highly occupied properties implemented rate increases – e.g. Magee’s average rate rose from about $0.98/SF to $1.05/SF – helping boost revenue despite stable occupancy. Overall, rate adjustments were property-specific, with no across-the-board increase, but most facilities maintained rates in line with market conditions while focusing on occupancy growth.

Move-Ins/Outs: Leasing activity was strong. Across the portfolio, there were more move-ins than move-outs, resulting in a net gain of tenants at most locations. In total, the core properties saw hundreds of move-ins which outweighed move-outs, yielding a net positive absorption of units and higher occupied counts by year-end. Notably, Benton had 100+ net move-ins during the year (starting with only 17 occupied units and ending with 98). Some already-full sites (e.g. Orrville) inevitably had more move-outs than move-ins (due to high initial occupancy), but their occupancy remained healthy. The new acquisitions contributed additional occupied units upon joining the portfolio – for example, Conway 512 and 560 brought in nearly 200 occupied units combined at takeover. Overall, tenant growth was a highlight of 2025, with steady move-ins each month driving occupancy gains.

Accounts Receivable (AR): One area of concern is accounts receivable over 30 days past due. Many properties saw an uptick in delinquent payments by year-end. For most, the percentage of AR overdue >30 days stayed in the single digits, indicating manageable levels (e.g. Granville ended the year with only ~5% of AR over 30 days). However, a few properties had significant AR spikes: Richards Road’s 30+ day delinquent amount rose to about 59% of its AR by year-end, and Marion’s to 32%, suggesting concentrated delinquencies at those sites. The newly acquired facilities in Q4 show especially high AR ratios (e.g. Main St ~360%, Conway 512 ~245%) – likely inherited receivables that need aggressive collection. Addressing these delinquencies will be a priority to improve cash flow in 2026. Overall, while most properties kept AR under control, the portfolio’s average AR >30 days crept up and will require focused attention on collections and tenant payment plans.

Google Reviews: The portfolio’s Google ratings are strong, reflecting positive customer satisfaction in general. By December, the majority of properties boast an average rating around 4.5 to 5.0 stars out of 5. Many facilities maintained excellent reputations (e.g. both Laurel locations and Magee are at ~5.0). A few properties started the year with lower ratings but improved after operational changes – for instance, Premier Marion rose from ~4.2 to 4.5. Only two locations have ratings in the low 4’s: Premier Storage Conway and Marengo (each around 4.3 stars). These may have had some negative feedback during the year, so management might focus on customer service and soliciting positive reviews there. Overall, the portfolio’s high ratings should continue to be a competitive advantage in attracting customers.

In summary, 2025 was a year of growth for Premier Storage. Occupancy increased significantly, driving revenue upward, and the company’s expansion added new assets with strong occupancy. While a few mature facilities saw slight occupancy declines from very high levels, and some delinquency issues emerged, the general trend was positive. Next, we provide property-specific performance reviews, including key metrics month-over-month and trend highlights for each facility.