15 Nov 2022

The Public REITs Q3 Earnings

James McLean

Union Realtime

The Public REITs have finished reporting Q3 earnings for 2022 providing us some valuable feedback on how the industry has performed in the past few months, with increasingly difficult economic conditions. We analyzed the earnings from Public Storage (PSA), CubeSmart (CUBE), Extra Space Storage (EXR), Life Storage (LSI), and National Storage Affiliates (NSA).

Same store occupancy dropped for all the REITs from Q2 to Q3 of 2022 except for EXR and NSA in line with seasonal trends.

PSA had an average same store occupancy of 94.5% with a Same Store Occupancy YoY change of -2.3%.

CUBE had an average same store occupancy of 94.4% with a Same Store Occupancy YoY change of -1.2%.

EXR had an average same store occupancy of 95.5% with a Same Store Occupancy YoY change of -1.3%.

LSI had an average same store occupancy of 94.0% with a Same Store Occupancy YoY change of -1.1%.

NSA had an average same store occupancy of 94.1% with a Same Store Occupancy YoY change of -2.4

With occupancy numbers decreasing slightly, it is important to note that same store ASP is still maintaining high percentages. PSA had a same store ASP 17.2% higher than Q3 2021. CUBE had a same store ASP 12.8% higher than the year before. EXR same store ASP increased 16.8% higher year over year. LSI’s same store ASP was 17.1% higher year over year. NSA’s same store ASP was 13.6% higher year over year.

By looking at these numbers we can see that while occupancy has dropped slightly for many of the REITs from last quarter to this one, and year over year, same store ASP has maintained high percentage increases YoY across the board. With the recession bringing forward drivers for self storage, only time will tell if the industry will finish with a strong Q4.