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Total Income: $127.0k vs. $143.6k budget → –$16.6k (88% of budget)Rental Income: $110.1k vs. $128.2k budget → –$18.1kParking Income: $12.3k (not budgeted, helps offset shortfall)Total Expenses: $46.1k vs. $41.6k budget → +$4.6k over budget (111%)Office Expenses: $4.5k vs. $1.05k budget → + $3.5kSoftware: $3.6k vs. $2.0k budget → + $1.6kAuctions: $916 (not budgeted)Net Operating Income (NOI): $80.9k vs. $102.1k budget → –$21.2k (79% of budget)
Total Income: $238.2k vs. $227.1k budget → + $11.1k (105% of budget)Rental Income: $230.4k vs. $203.4k budget → + $27.0kU-Haul: $630 (not budgeted, adds upside)Late Fees: $3.3k vs. $12.2k budget → –$9.0kTotal Expenses: $79.6k vs. $55.2k budget → +$24.4k over budget (144%)Payroll: $9.7k vs. $5.0k budget → + $4.7kAuctions: $907 (not budgeted)Net Operating Income (NOI): $158.6k vs. $171.9k budget → –$13.3k (92% of budget)
Income: ~$365k actual vs. $370.7k budget → essentially on target.Expenses: ~$126k actual vs. $96.8k budget → ~$29k over budget.NOI: ~$239.5k actual vs. $273.9k budget → –$34k (87% of budget).
Demand growth: Leads up 4× year-over-year (60 vs 14). Both sites converting more leads into move-ins.Revenue surge: Portfolio collected ~$158k in Q3 2025, more than 3× Q3 2024. Each site had record revenues.Pricing power: Economic occupancy near or above 100%—tenants are paying strong rates. October rent increases (average ~26%) will add ~$3.7k/month if retained.Market support: Butler County (Portersville & Zelienople area) continues to grow, bringing in new residents and businesses to fuel storage demand.
Occupancy slipped: Portfolio occupancy down to ~90% vs ~94% a year ago. Both sites lost ground due to higher move-outs.Move-outs rising: ~75 in Q3 2025 vs 24 last year. Net rentals negative (more move-outs than move-ins).Retention risk: October’s aggressive rent hikes could trigger further vacancies if not managed carefully.Industry headwinds: National storage demand is softening, with customers more price-sensitive.
Focus on retention: Understand why tenants are moving out and strengthen customer service/loyalty efforts.Stay competitive: Maintain strong marketing and promotions to keep units filled in a cooling market.Leverage local growth: Continue targeting new households and businesses in Butler County’s expanding corridor.
Customers impacted: 163Total monthly increase: +$3,700 (~$44,400 annually)Average increase per customer: +$22.70Average % increase: +26.4%
Customers impacted: 99Total monthly increase: +$2,279Average increase per customer: +$23.02Average % increase: +26.8%
Customers impacted: 64Total monthly increase: +$1,421Average increase per customer: +$22.20Average % increase: +25.7%
Portersville: 99 tenants are slated for increases on 10/1/25, with a total monthly rent boost of $2,279 across those customers. This is an average increase of ~$23 per tenant, equating to an average +26.8% rent hike for those units (i.e. their rents will jump about 27% on average).Zelienople: 64 tenants will receive increases, totaling $1,421 more per month. The average increase is ~$22 per tenant, about +25.7% on their current rates.Portfolio Total: 163 customers (roughly the combined count above) will see rate adjustments, adding $3,700 in monthly rental revenue. On average, that’s a ~$22.7 increase per affected tenant, or ~26.4% uplift. Put another way, the portfolio’s in-place rents for those tenants are set to rise from an average of ~$86 to ~$109 per month after the adjustment.
Explosive Demand Growth: Marketing efforts and market demand have dramatically increased lead flow to both sites. A 4× rise in inquiries year-over-year indicates strong interest in our storage offerings, positioning the facilities well for high occupancy moving forward. Conversion from leads to move-ins has also been robust, keeping move-in volumes high.Revenue Tripled YOY: The portfolio’s revenue performance is a clear highlight. Through a combination of higher occupancy (for most of the year), optimized rental rates, and ancillary sales (e.g. insurance), Q3 2025 revenue is roughly three times greater than Q3 2024. Even adjusting for the facilities’ first-year ramp-up in 2024, this growth far outpaces inflation and indicates excellent revenue management and leasing momentum.High Economic Occupancy & Pricing Power: Both Portersville and Zelienople are achieving very high economic occupancy levels (near or above 100% of standard GPR). This means we are effectively maximizing revenue from the occupied units through dynamic pricing. The planned October increases further demonstrate pricing power, as significant rent lifts are being implemented to push yields. The fact that occupancy remains ~88–90% despite prior increases suggests the market can bear these rates – a positive sign for revenue sustainability.Market Position in Growing Region: The facilities benefit from being in Butler County, PA, which has seen consistent growth while many Western PA areas have declined. Butler County’s population grew from 198,665 in 2023 to 199,341 in 2024, and local officials anticipate surpassing 200,000 by the end of 2025. This growth, especially in the southwest part of the county (Cranberry Township/Zelienople area), is fueled by booming housing developments and new businesses along the I-79 and Route 228 corridors. Our properties are well-positioned to serve this expanding community, and the demand surge we’re experiencing likely reflects these favorable demographics. In short, our customer base is growing, and we are capturing that demand.
Occupancy Dip & Move-Out Volume: A key concern is the decline in occupancy and net negative rentals in Q3 2025. While some softening is natural after the initial lease-up, both sites lost occupied units over the quarter. Move-outs (75 combined) outpaced move-ins (60), which directly caused occupancy to fall ~4–6% YOY. High exit volume in August (Zelienople had 23 move-outs in August alone) suggests possible customer dissatisfaction or price sensitivity. Improving tenant retention is critical. Management should investigate why so many tenants left – for example, were they reacting to rent increases, or was it due to service issues, competition, or life events? Proactively reaching out to at-risk tenants (e.g. those facing big rate hikes or those who have been renting ~1 year, when many move-outs occur) and offering promotions to stay could help reduce churn. Additionally, ensuring excellent customer service and facility upkeep can turn more renters into long-term customers.Balancing Rate Increases with Occupancy: While the revenue management strategy of raising rates aggressively has paid off in higher income, it likely contributed to the uptick in move-outs. The planned ~26% October increase, while financially attractive, could exacerbate move-out rates if not managed carefully. We need to balance rental rate growth with occupancy goals. It may be worthwhile to analyze elasticity – for instance, if even 10–15% of the 163 tenants cancel in response, the lost revenue (and cost to re-lease units) could offset some of the gains from those who stay and pay more. Close tracking of October/November occupancy and perhaps a contingency to offer “rent rollback” or smaller increases to save certain customers might be prudent if we see a wave of exits. In essence, revenue maximization should be tempered with retention efforts for a stable growth trajectory.Market Competition & Softening Demand: The self-storage market nationally in 2025 has cooled from its pandemic-era peak. Operators are feeling softening demand and rising price sensitivity, with occupancy down slightly from 2021–22 highs. In our local area, new competitors or expansions could also be a factor. It’s possible that some move-outs are moving to competitors or that we’ve saturated the immediate demand at our current pricing. We should keep an eye on any new storage facilities or expansions around Portersville/Zelienople. Additionally, national trends show Google search demand for storage is at a 5-year low and competition for every tenant has increased. This means we can’t rely solely on general demand growth; we must actively market and differentiate (e.g. via promotions, superior service, online visibility) to maintain high occupancy. The good news is that our region’s growth and our initial leasing success indicate a strong foundation – but continued vigilance is needed as the market normalizes.Economic Factors: Broader economic conditions could influence our performance in the coming quarters. Interest rates remain high (the Fed held rates at ~5.25–5.5% through mid-2025), which has cooled housing sales and may reduce the frequency of residential moves (a key driver of storage demand). If fewer people are moving homes, we might see fewer new storage tenants in the short term. On the flip side, high interest rates and housing costs can encourage people to stay in smaller or existing homes and use storage as a “reliever” for space – a potential positive. Inflation and financial pressure on consumers have made tenants more price-sensitive, which reinforces the need to be cautious with drastic rate hikes. Locally, Butler County’s economic health appears solid (low unemployment, new jobs in the corridor), but if a recession or slowdown occurs, discretionary storage spending could be impacted. We should be prepared with flexible, possibly discounted, options to retain cost-conscious customers if the economy softens.
250917 Storage Point Meeting Notes
Portersville
📉 Drivers: Under-collected rent, plus higher-than-budget office and software expenses. Parking income is a bright spot.
Zelienople
📈 Drivers: Rent income well above budget, but expenses (especially payroll) ran much higher, pulling NOI below plan.
Portfolio Summary
⚡ Takeaway: Revenue is largely in line with budget (Zelienople strength offset Portersville softness). The main drag is expenses running high, especially payroll, office, and software, leading to NOI underperformance.
Key Wins
Challenges
Recommendations
⚡ Bottom line: Q3 2025 delivered excellent revenue growth and shows strong demand potential, but retention and occupancy stabilization are now critical to sustaining momentum.
Overall Portfolio
By Site
Portersville
Zelienople
⚡ Key Takeaway: Both facilities are implementing ~25–27% rent increases across 163 tenants, boosting recurring monthly revenue by ~$3.7k if fully retained. Portersville drives the majority of the increase.
Q3 2025 Year-Over-Year Performance Report – Storage Point Portersville & Zelienople
Overview
From July 1 to September 16, 2025 (“Q3 2025 YTD”), Storage Point’s Portersville and Zelienople facilities showed dramatic growth in demand and revenue compared to the same period in 2024. Leads and new move-ins surged, and total revenue roughly tripled year-over-year. However, occupancy rates dipped slightly versus Q3 2024, as move-outs increased, resulting in net negative rentals for the quarter. The portfolio (both sites combined) remained at a healthy high-80s occupancy by square footage, but retention challenges emerged with more tenants moving out than moving in during Q3 2025.
Looking ahead, an October 2025 rate increase program targeting existing customers is poised to further boost revenue, with an average ~26% rent hike planned for over 160 tenants. This report details the key performance metrics for each site and the combined portfolio, highlights major wins (e.g. demand and revenue growth) and areas for improvement (e.g. occupancy/retention), and provides relevant economic context for Portersville and Zelienople, PA to contextualize these trends.
YOY Performance by Key Metrics
Leads and New Rentals
Customer inquiries (“Leads”) rose exponentially in Q3 2025. Portersville generated 22 leads (vs only 5 in Q3 2024) and Zelienople 38 leads (vs 9 last year), indicating successful marketing and growing local demand. The combined portfolio saw 60 leads up to Sep 16, 2025, a 4× increase over the 14 leads in the same period of 2024. This surge in leads translated into higher move-ins: Portersville had 23 move-ins (vs 3 in 2024) and Zelienople 37 (vs 8 in 2024) from July 1–Sep 16. In total, 60 new tenants moved in, up from 11 in the period last year – a testament to improved conversion and pent-up demand as the facilities moved from initial lease-up in 2024 to more stabilized operations in 2025.
Figure 1: Year-over-year comparison of lead volume for Q3 (Jul 1–Sep 16) at Portersville, Zelienople, and combined portfolio. 2025 saw a dramatic increase in inquiries at both sites, reflecting higher demand and effective marketing.
Figure 2: Year-over-year comparison of move-ins during Q3 (Jul 1–Sep 16). Both facilities significantly increased new tenant move-ins in 2025, consistent with the rise in leads.
Move-outs also climbed in 2025, partly as a function of having more tenants overall. Portersville recorded 32 move-outs in Q3 2025 (vs ~10 in Q3 2024), and Zelienople saw 43 move-outs (vs ~14 last year). Combined, move-outs increased to ~75, up from 24 in the period in 2024. This elevated turnover led to net negative rentals (move-ins minus move-outs) for the quarter at each site. Portersville had about 9 more move-outs than move-ins in Q3 2025 (23 in vs 32 out), and Zelienople about 6 more outs than ins. In Q3 2024, by contrast, Zelienople was roughly breakeven (+1 net) and Portersville saw a small net loss (approximately –3) in its first months. The higher 2025 turnover suggests retention is a concern, even as demand remains strong.
Figure 3: Year-over-year comparison of move-outs during Q3. Tenant move-outs increased significantly in 2025 at both locations, contributing to net negative rentals (move-outs exceeded move-ins) during the period.
Key insight: While the facilities successfully attracted far more new customers in 2025, many existing customers also left, resulting in occupancy softening (discussed below). Some of these move-outs may be attributable to rental rate increases or normal churn as the facilities transitioned from initial lease-up (when many new tenants moved in during 2024) to a more stabilized tenant base in 2025. It will be important to monitor reasons for move-outs (e.g. price sensitivity, customer service issues, or relocation) and address retention to capitalize fully on the increased lead flow.
Occupancy (Square Footage) and Rental Rates
Despite strong leasing activity, physical occupancy by square footage was slightly lower in September 2025 than a year prior. As of mid-September 2025, Portersville’s unit occupancy was 86.5% (88.7% of square footage), down from roughly 92% of square feet occupied in September 2024. Zelienople was ~90% occupied by area (271 of 305 units rented) as of Sep 2025, down from an exceptionally high ~96% a year earlier. The combined portfolio occupancy stands at ~89.7% by square footage, a few points drop from ~94% in Sep 2024. In short, both facilities remain nearly 90%+ full in terms of space, but year-over-year occupancy has slipped ~4–6 percentage points due to the net move-out activity in 2025.
Figure 4: Occupancy rate (percent of total square footage occupied) at each site, Sep 2024 vs Sep 2025. Both facilities maintained high occupancy (>88%), though each saw a modest decline year-over-year.
It is notable that economic occupancy (rent collected as a percentage of potential) remains very robust. At Portersville, for example, the current occupied units are generating 100.8% economic occupancy – meaning collected rent is slightly above the standard-rate “potential” for the occupied square footage. This is possible through rate optimization, premiums on certain units, and ancillary revenue. It indicates that while physical occupancy is down, revenue efficiency per occupied unit is up. In effect, fewer tenants are paying more on average, cushioning the revenue impact of the occupancy dip.
Gross Potential Rent (GPR) – the theoretical monthly rent if each facility were 100% occupied at standard rates – has increased slightly. As of September 2025, Portersville’s GPR is about $16.6k per month and Zelienople’s about $37.7k per month (for all units) based on current rate cards. These figures are up an estimated 5–8% from September 2024 (when GPR was roughly $15.8k and $35.0k, respectively), reflecting street rate increases over the past year. In other words, the “size of the prize” in revenue has grown, even aside from occupancy changes. Maintaining high occupancy will be key to realizing this potential. Currently, Portersville is earning $14.7k of its $16.6k potential (88.6% physical economic occupancy) and Zelienople ~$31.3k of $37.7k potential (~83% of potential), leaving room to grow revenue by filling vacant units.
Total Revenue
Total rental and ancillary revenue for Q3 (July 1–Sept 16) soared year-over-year, thanks to improved occupancy for most of the period and higher rental rates. In Q3 2024, the two sites were newly acquired and ramping up; Portersville collected only about $18.1k (Aug–Sep 2024) and Zelienople about $32.6k in that period. In Q3 2025, by contrast, Portersville generated approximately $62.3k (Jul–mid Sep) and Zelienople about $96.0k. Combined portfolio revenue for the period was roughly $158k, over 3× the revenue of the same timeframe in 2024. Even accounting for the partial month of September, the growth is striking. This jump reflects both the increase in occupied square footage during early 2025 (on average more space was rented than in the startup phase of 2024) and higher rental income per unit (fewer free promotions, higher rates, and more tenant insurance/fees).
Figure 5: Total revenue collected in Q3 (July 1–Sept 16), comparing 2024 vs 2025. Revenues approximately tripled at each site and overall, as the facilities moved from initial lease-up in 2024 to higher stabilized income in 2025.
Notably, Zelienople’s revenue surpasses Portersville’s given its larger size (306 units vs 215) and slightly higher rates. For example, Zelienople’s August 2025 revenue was $34.5k compared to Portersville’s $20.8k. However, both sites show the same general trend of major YOY revenue growth. It’s also worth mentioning that 2024’s Q3 revenue was limited to essentially August–September since operations began mid-year – making the YOY comparison somewhat inflated. Even so, by late 2024 (Q4), monthly revenues at Zelienople were around $27–28k and Portersville ~$10–12k, so the 2025 figures still represent a substantial increase over late 2024 run rates.
Bottom line: The portfolio’s ability to generate revenue has improved dramatically, thanks to higher occupancy for most of the past year and effective rate management. The slight recent softening in occupancy has not prevented overall Q3 revenue from hitting record levels in 2025. Moving forward, protecting occupancy (to avoid eroding these gains) will be crucial, especially as further rate increases are implemented.
October 2025 Rate Increase Plan – Impact Analysis
The provided production report on occupied units details scheduled rent increases effective October 1, 2025 for existing customers. Analyzing this data:
These rent increase plans are quite aggressive (~25–27% jumps), reflecting a strategy to capitalize on high occupancy and push revenue per square foot. If successfully implemented (and assuming tenants remain post-increase), the additional ~$3.7k/month would directly improve the revenue run-rate (equivalent to +$44k annually). Gross Potential Rent will correspondingly increase as street rates for existing tenants catch up to current standard levels. For context, Portersville’s current occupied rent is about $16.8k/mo vs $16.6k potential – after increases, the occupied rent could surpass $18k if all tenants accept the new rates, raising economic occupancy further above 100%.
However, tenant retention risk must be noted. Such large increases may prompt some move-outs or pushback from price-sensitive renters. Historically, self-storage operators see some percentage of tenants vacate or negotiate down when faced with steep rate hikes. Given that we already observed higher move-outs in Q3, the management team should be prepared for an uptick in October move-outs following the notices. Mitigation could include phased increases, value communication, or customer loyalty incentives. Monitoring October’s occupancy and feedback will be critical.
In summary, the October 2025 rate adjustments offer a significant revenue opportunity (a one-time ~2.5% boost to total portfolio GPR), but they need to be executed carefully to avoid undermining occupancy gains. So far, 85–90% occupancy suggests demand is sufficient to refill any vacancies if some tenants leave, but re-leasing costs and downtime should be weighed against the rent upside.
Wins and Strengths in Q3 2025
Areas for Improvement and Concerns
Economic Context – Portersville & Zelienople, PA
Portersville and Zelienople are situated in a growing suburban/rural corridor north of Pittsburgh. Butler County, where these facilities operate, has stood out as a regional growth area. It was the only Western Pennsylvania county to gain population every year since 2020, thanks in large part to development in the southern part of the county. Zelienople, along with nearby Jackson and Cranberry Townships, lies in this growth belt. Housing developments, new employers, and infrastructure improvements (such as the ongoing Route 228 expansion) have brought more residents and businesses to the area. This population influx has likely bolstered demand for self-storage, as new households often need storage during moves or as they settle in. Additionally, median incomes in the area are healthy (Zelienople’s median household income is around $65k), meaning many residents can afford storage even as a discretionary expense.
However, population growth in the immediate towns has been modest. Zelienople Borough’s population is small (~3,800) and relatively flat or slightly declining. Portersville is even smaller (population ~268 in the borough, though drawing from a wider rural area). Thus, our customer base is not just the town populations but the broader region and transient populations (e.g. people moving along the I-79 corridor, students at nearby Slippery Rock University, etc.). Economic stability in the region is good – unemployment in Butler County has been low (~3–4%), and job growth in logistics, manufacturing, and retail distribution is happening nearby (FedEx, Westinghouse, etc., per local reports). These trends support storage demand (business storage needs, people relocating for jobs, etc.).
One economic factor to watch is the housing market. Butler County has a relatively affordable housing stock, which attracts new residents, but if interest rates remain high, housing turnover may slow. Fewer home sales can mean fewer short-term storage rentals (often people use storage when buying/selling homes). On the other hand, high home prices and construction costs might push people to maximize use of existing homes – potentially renting storage instead of upsizing their house, as 1 in 5 Americans report using 500+ sq ft of their home for storage already. In summary, the local economy is favorable for our business, with population and income trends providing a growing market. Yet, national economic headwinds (rates, inflation) require that we remain customer-focused and competitive in pricing to sustain our recent gains.
Conclusion & Recommendations
Year-over-year, Storage Point Portersville and Zelienople have made huge strides. Q3 2025’s performance shows strong leasing demand and revenue optimization that have elevated the portfolio’s financial results to a new level. Key successes include significantly higher lead generation, effective lease-up of units (especially through early 2025), and strategic rent increases driving revenue per unit. The facilities are benefitting from a growing local market and have so far outperformed the broader industry’s trends in demand.
Going forward, the focus should shift to sustaining these gains and addressing the challenges that have emerged: chiefly, the slight downturn in occupancy due to increased move-outs. By concentrating on tenant retention – through outstanding service, facility quality, and judicious pricing policies – we can aim to stabilize or even re-grow occupancy while still enjoying improved revenues. The October 2025 rate increases will be a pivotal test of our ability to boost income without sacrificing too many tenants; careful monitoring and agile response (for example, offering save incentives to tenants who call to cancel) will be important in October/November.
Overall, the portfolio’s outlook is positive. Even at ~89% occupancy, we are in a healthy position with upside potential if we refill vacated units (each percentage point of occupancy gained is roughly +$500–$600 in monthly revenue per site, given the GPR). The local economic context remains a tailwind – Butler County’s growth and the communities around Portersville and Zelienople should continue to generate new demand for storage. The national self-storage market has cooled slightly, which means we must not become complacent. Now is the time to double down on operational excellence (“Stability – not just growth – is the play,” as industry advisors note). This means keeping units rented through proactive marketing and swift lead follow-up, pricing units intelligently (perhaps using promotions on units that have been vacant longer), and ensuring rate increases are strategic rather than across-the-board.
In summary, Q3 2025 delivered excellent top-line results and demonstrated the effectiveness of our growth strategy. By addressing the noted areas for improvement, Storage Point Portersville and Zelienople can finish 2025 strong and enter 2026 with both high occupancy and maximized revenue, solidifying their position as leading facilities in the region. The attached charts and data provide a clear picture of the year-over-year trajectory, and we will continue to update these trends as we implement the October rate changes and beyond.
Attachments: Q3 2025 vs Q3 2024 performance charts (leads, move-ins, move-outs, occupancy, revenue), supporting data tables (Excel), and detailed production report excerpts for October 2025 rate increases (Excel/CSV). Please refer to these for further detail and for any additional analysis or presentation needs.
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