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SDU October 2025 YoY

📦 Occupancy & Rentals

Portfolio Occupancy: 80.7% (flat YoY).

Layton rose to 84.7% (↑7.6 pp YoY).

West Valley fell to 78.0% (↓4.9 pp YoY).

October Rentals: 16 move-ins vs. 33 move-outs (net -17).

West Valley: 13 ins, 28 outs (net -15).

Layton: 3 ins, 5 outs (net -2).

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📈 Leads & Conversions

Total Leads: 27 (West Valley: 22, Layton: 5).

Conversion Rate: 59% (↑ from ~45% YoY).

Top Lead Sources: Phone/call center (~65%), website (Storagely), and SpareFoot.

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💰 Revenue & Potential

October Revenue: $55.2K (↑5.5% YoY).

Layton: $24.9K (↑10.4%).

West Valley: $30.2K (↑1.8%).

Gross Potential Income: $60.3K in 2025 vs. $80.6K in 2024 (2024 GPI inflated by early lease-up pricing).

Economic Occupancy: ~91.5% (↑ from ~65%).

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📤 Move-Out Reasons

Top reasons:

No longer needed: 11 (33%)

Vacated w/o notice: 6 (18%)

Auction: 5 (15%)

Only 1 cited dissatisfaction.

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📊 Rate Increases

Customers Affected: ~85 (≈26% of tenants).

Avg Increase: +8–9% (~$15/month).

Total Monthly Uplift: ~$1.3K.

Impact: No measurable increase in move-outs due to rate hikes.

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Storage Depot (SDU) October Performance Update – October 2025 vs. October 2024

Occupancy & Net Rentals

Occupancy: As of October 31, 2025, the SDU portfolio’s unit occupancy was 80.7%, essentially flat from 80.5% a year prior. This overall stability masks divergent trends at the two facilities. Layton ended October 2025 at 84.7% occupancy (144 of 170 units), up from 77.1% on 10/31/2024 – a YoY increase of ~7.6 percentage points as the site filled more units. In contrast, West Valley closed October 2025 at 78.0% occupancy (191 of 245 units), down from 82.9% a year ago (203 units) due to elevated move-out activity in 2025. The chart below illustrates the occupancy rates by facility, highlighting Layton’s improvement and West Valley’s slight decline YoY.

Unit Occupancy on Oct 31, 2024 vs. 2025 (by facility and portfolio total). Layton’s occupancy rose ~7.6 pp YoY, while West Valley’s fell ~4.9 pp, keeping overall portfolio occupancy roughly flat.

Move-Ins/Move-Outs: October 2025 saw 16 move-ins and 33 move-outs portfolio-wide, yielding net -17 units (a net loss larger than the net -10 in October 2024). Layton had only 3 move-ins vs 5 move-outs (net -2) in Oct 2025, compared to 7 ins vs 13 outs (net -6) in Oct 2024. West Valley experienced 13 move-ins but 28 move-outs in Oct 2025 – a significant jump in departures (net -15) versus 6 ins and 10 outs (net -4) the prior October. The elevated move-outs at West Valley drove the portfolio’s higher net loss this year. The charts below compare move-in and move-out counts by year for each facility:

October Move-Ins vs. Move-Outs for each facility, comparing 2025 to 2024. West Valley saw a sharp increase in move-outs in 2025 (28 vs 10 last year), contributing to a larger net loss of occupied units.

These trends suggest Layton’s occupancy gains were sustained despite fewer move-ins in 2025, while West Valley experienced unusual churn in October 2025 that eroded occupancy. We will monitor whether West Valley’s move-out spike is an outlier or indicates a broader issue (e.g. competition or tenant behavior changes).

Lead Activity & Conversion Rate

Lead Volume: The SDU portfolio recorded a total of 27 new leads in October 2025 (22 for West Valley and 5 for Layton), comparable to the lead volume in October 2024 (which had 16 at West Valley and 16 at Layton, 32 total – noting that 2024’s figure was elevated by initial lease-up marketing activity). West Valley generated the majority of inquiries this year, reflecting its larger size and more competitive market.

Conversion Rate: Overall lead-to-rental conversion was strong. Approximately 59% of October 2025’s leads converted into move-ins (16 of 27 leads became rentals), up from roughly 40–45% last October. By facility, West Valley converted about 59% of its leads (13 of 22) into move-ins, and Layton converted 60% (3 of 5). This improved conversion rate suggests more efficient sales handling and/or higher-quality leads. It’s worth noting that several October 2025 move-ins were true “walk-in” customers not captured as formal leads in the system – if those are factored, the effective inquiry conversion is even higher.

Lead Sources: October’s marketing mix was dominated by phone and web channels. The call center/phone inquiries were the largest source, accounting for roughly 60–70% of leads (including many walk-in prospects who first phoned or were entered via the call center). Online channels contributed about 30% of leads: the company’s website (Storagely platform) drove several reservations (with some prospects booking directly online and others assisted by the call center), and the SpareFoot online aggregator contributed a couple of leads as well. A handful of leads came from existing customers (either tenant referrals or existing tenants taking an additional unit). In-person walk-in traffic that did not engage ahead of time was minimal, as most walk-ins were funneled through the call center or captured as phone leads. This source breakdown indicates our digital marketing (website and aggregator listings) is generating a healthy share of prospects, but live assistance (call center) remains crucial in converting inquiries to rentals.

Financial Performance (Revenue & Gross Potential Income)

Monthly Rental Revenue: The portfolio’s rental income for October 2025 totaled $55.2k, a +5.5% YoY increase from $52.3k in October 2024. Both facilities contributed to the growth, with Layton’s revenue up ~10.4% YoY (from $22.6k in Oct 2024 to $24.9k in Oct 2025) and West Valley essentially flat (edging up from $29.7k to $30.2k, about +1.8% YoY). Layton’s revenue improvement reflects its higher occupancy and reduced free rent discounts compared to the prior year’s lease-up period, while West Valley’s revenue held steady despite occupancy loss, aided by rate increases on remaining tenants.

Gross Potential Income (GPI): Gross potential (theoretical rent if all units were fully occupied at standard rates) was $60.3k for the portfolio in Oct 2025, compared to approximately $80.6k a year ago. The unusually high GPI in Oct 2024 was influenced by initial rate-card assumptions during lease-up – for example, Layton’s GPI was ~$50.1k last year (when many units were vacant or on promotional rates) versus $27.3k in Oct 2025 after rate schedules were adjusted to market norms. West Valley’s GPI rose modestly from ~$30.6k in Oct 2024 to $33.0k in Oct 2025, due to implemented rate hikes on standard rates. The gap between actual revenue and GPI gives our economic occupancy: in Oct 2025 the portfolio’s economic occupancy was ~91.5% (i.e. $55.2k out of $60.3k potential), up from about 65% a year prior when aggressive discounts were in effect.

The charts below illustrate actual revenue vs. GPI for each facility, highlighting West Valley’s stability and Layton’s post-lease-up normalization:

Monthly Actual Rent Revenue vs. Gross Potential Income (GPI) for October 2024 and 2025, by facility. Layton’s GPI fell as initial standard rates were adjusted downward after lease-up (while actual revenue grew), closing much of the gap between actual and potential in 2025. West Valley saw a slight increase in both actual and potential, maintaining a smaller gap.

Move-Out Reasons (October 2025)

We tracked 33 move-outs in October 2025 and recorded the reasons where provided. The primary causes were:

No Longer Needed Storage: By far the most common reason – 11 tenants (≈33% of move-outs) left because they simply didn’t need storage anymore (e.g. they finished moving or cleared out their belongings).

Vacated Without Notice: 6 move-outs (18%) left without giving notice. These unannounced departures can include defaults/abandonments that did not go through the proper move-out process.

Auctioned Units: 5 units (15%) were vacated via auction due to tenant default. These represent involuntary move-outs where delinquent accounts were cleared【22†】.

Dissatisfaction: Only 1 tenant cited being unhappy with service as their reason for leaving (~3% of move-outs).

Unspecified: The remaining 10 move-outs (~30%) did not provide a reason (blank responses). It’s likely many of these were routine move-outs with no survey response.

Overall, the data suggests most October departures were routine (end of need or no notice) or credit-related (auctions), with very few due to service issues. We will continue focusing on customer service to keep “unhappy” departures minimal.

Rate Management (Existing Tenant Rate Increases)

In October 2025, we continued our revenue management strategy by raising rates on select long-term tenants. Approximately 85 customers (primarily those with longer lengths of stay and below-market rates) received rent increases effective during the month (mostly on October 1st). This represents roughly 26% of occupied tenants portfolio-wide. The average increase was about 8–9% on affected tenants’ monthly rent. In dollar terms, the typical increase was around +$15 per month for a standard unit (e.g. a tenant at $180/month was raised to about $195). In total, these October adjustments are adding roughly $1.3k in additional monthly rent going forward across the portfolio.

These rate increases have significantly improved revenue without materially impacting occupancy – notably, despite 85 tenants seeing a rent hike, move-out volume attributable to rate increases was minimal (no spike in move-outs specifically blaming “rate increase” was observed in October’s move-out reasons). We plan to continue strategic rate adjustments on a rolling basis to gradually move long-term tenants closer to market rates while balancing occupancy. The efficacy is evident in the narrowing gap between actual revenue and GPI, as discussed above, and the strong economic occupancy achieved in October.

Overall, the SDU portfolio showed positive YoY financial momentum in October 2025 (higher revenue and stable occupancy), even as we managed a one-time surge in move-outs at West Valley. Leasing demand remains solid with improved lead conversion, and our revenue management via rate increases is contributing to growth without driving abnormal attrition. We will keep a close eye on West Valley’s occupancy dip and continue proactive marketing and rate optimization into the next quarter.