Global Self Storage Inc

Previous wording

The following discussion and analysis should be read in conjunction with our unaudited “Condensed Consolidated Financial Statements” and the “Notes to Consolidated Financial Statements (unaudited)” appearing elsewhere in this report. We make statements in this section that may be forward looking statements within the meaning of the federal securities laws. For a complete discussion of forward looking statements, see the section in this report entitled “Statement on Forward Looking Information.” References to the “Company,” “we,” “us,” or “our company” refer to Global Self Storage, Inc., a Maryland corporation, including, as the context requires, its direct and indirect subsidiaries.

Current wording

The following discussion and analysis should be read in conjunction with our unaudited “Consolidated Financial Statements” and the “Notes to Consolidated Financial Statements (unaudited)” appearing elsewhere in this report. We make statements in this section that may be forward-looking statements within the meaning of the federal securities laws. For a complete discussion of forward-looking statements, see the section in this report entitled “Statement on Forward-Looking Information.” References to the “Company,” “we,” “us,” or “our company” refer to Global Self Storage, Inc., a Maryland corporation, including, as the context requires, its direct and indirect subsidiaries.

Previous wording

Our discussion and analysis of our financial condition and results of operations are based on our unaudited condensed consolidated financial statements contained elsewhere in this report, which have been prepared in accordance with GAAP. Our notes to the unaudited condensed consolidated financial statements contained elsewhere in this report describe the significant accounting policies essential to our unaudited condensed consolidated financial statements. Preparation of our financial statements requires estimates, judgments, and assumptions. We believe that the estimates, judgments, and assumptions that we have used are appropriate and correct based on information available at the time they were made. These estimates, judgments, and assumptions can affect our reported assets and liabilities as of the date of the financial statements, as well as the reported revenues and expenses during the period presented. If there are material differences between these estimates, judgments, and assumptions and actual facts, our financial statements may be affected.

Current wording

Our discussion and analysis of our financial condition and results of operations are based on our unaudited consolidated financial statements contained elsewhere in this report, which have been prepared in accordance with GAAP. Our notes to the unaudited consolidated financial statements contained elsewhere in this report describe the significant accounting policies essential to our unaudited consolidated financial statements. Preparation of our financial statements requires estimates, judgments, and assumptions. We believe that the estimates, judgments, and assumptions that we have used are appropriate and correct based on information available at the time they were made. These estimates, judgments, and assumptions can affect our reported assets and liabilities as of the date of the financial statements, as well as the reported revenues and expenses during the period presented. If there are material differences between these estimates, judgments, and assumptions and actual facts, our financial statements may be affected.

Previous wording

In many cases, the accounting treatment of a particular transaction is specifically dictated by GAAP and does not require our judgment in its application. There are areas in which our judgment in selecting among available alternatives would not produce a materially different result, but there are some areas in which our judgment in selecting among available alternatives would produce a materially different result. Please refer to the notes to the unaudited condensed consolidated financial statements that contain additional information regarding our critical accounting policies and other disclosures.

Current wording

In many cases, the accounting treatment of a particular transaction is specifically dictated by GAAP and does not require our judgment in its application. There are areas in which our judgment in selecting among available alternatives would not produce a materially different result, but there are some areas in which our judgment in selecting among available alternatives would produce a materially different result. Please refer to the notes to the unaudited consolidated financial statements that contain additional information regarding our critical accounting policies and other disclosures.

Previous wording

On January 14, 2022, the Company entered into an At Market Offering Sales Agreement (the “Sales Agreement”) with B. Riley Securities, Inc. (the “Agent”) pursuant to which the Company may sell, from time to time, shares of common stock having an aggregate offering price of up to $15,000,000, through the Agent. During the twelve months ended December 31, 2022, under the Sales Agreement, the Company sold and issued an aggregate of 373,833 shares of common stock and raised aggregate gross proceeds of approximately $2,272,628, less sales commissions of approximately $45,491 and other offering costs resulting in net proceeds of $2,008,436. There were no shares of common stock sold during the three and nine months ended September 30, 2024 and September 30, 2023 under the Sales Agreement.

Current wording

On January 14, 2022, the Company entered into an At Market Offering Sales Agreement (the “Prior Sales Agreement”) with B. Riley Securities, Inc. (the “Prior Sales Agent”) pursuant to which the Company may sell, from time to time, shares of common stock, par value $0.01 per share, having an aggregate offering price of up to $15,000,000, through the Prior Sales Agent. During the twelve months ended December 31, 2022, under the Prior Sales Agreement, the Company sold and issued an aggregate of 373,833 shares of common stock and raised aggregate gross proceeds of approximately $2,272,628, less sales commissions of approximately $45,491 and other offering costs resulting in net proceeds of $2,008,436. There were no shares of common stock sold during the three months ended March 31, 2025 and March 31, 2024 under the Prior Sales Agreement. Effective April 4, 2025, the Company delivered written notice to the Prior Sales Agent terminating the Prior Sales Agreement.

Previous wording

We continue to actively review a number of store and store portfolio acquisition opportunities and have been working to further develop and expand our current stores. We did not complete any acquisitions in the three and nine months ended September 30, 2024. In addition, we may pursue third-party management opportunities of properties owned by certain affiliates or joint venture partners for a fee, and utilize such relationships with third-party owners as a source for future acquisitions and investment opportunities. As of September 30, 2024, under our third-party management platform, Global MaxManagement SM, we managed one third-party owned property, which was previously rebranded as “Global Self Storage,” had 137,318-leasable square feet and was comprised of 619 climate-controlled and non-climate-controlled units located in Edmond, Oklahoma.

Current wording

We continue to actively review a number of store and store portfolio acquisition opportunities and have been working to further develop and expand our current stores. We did not complete any acquisitions in the three months ended March 31, 2025. In addition, we may pursue third-party management opportunities of properties owned by certain affiliates or joint venture partners for a fee, and utilize such relationships with third-party owners as a source for future acquisitions and investment opportunities. As of March 31, 2025, under our third-party management platform, Global MaxManagement SM, we managed one third-party owned property, which was previously rebranded as “Global Self Storage,” had 137,318-leasable square feet and was comprised of 619 climate-controlled and non-climate-controlled units located in Edmond, Oklahoma.

Previous wording

The Company currently has capital resources totaling approximately $25.1 million, comprised of $6.9 million of cash, cash equivalents, and restricted cash and $3.2 million of marketable securities as of September 30, 2024, and $15 million available for withdrawal under the Second Amended Credit Facility Loan Agreement which matures on July 6, 2027. Capital resources derived from retained cash flow have been and are currently expected to continue to be negligible. Retained operating cash flow represents our expected cash flow provided by operating activities, less stockholder distributions and capital expenditures to maintain stores. These capital resources allow us to continue to execute our strategic business plan, which includes funding acquisitions, either directly or through joint ventures; expansion projects at our existing properties; and broadening our revenue base and pipeline of potential acquisitions through developing Global MaxManagement SM, our third-party management platform. Our board of directors regularly reviews our strategic business plan, including topics and metrices like capital formation, debt versus equity ratios, dividend policy, use of capital and debt, funds from operations (“FFO”) and adjusted funds from operations (“AFFO”) performance, and optimal cash levels. See the section titled "Non-GAAP Financial Measures" for the definition and use of FFO and AFFO.

Current wording

The Company currently has capital resources totaling approximately $24.9 million, comprised of $7.3 million of cash, cash equivalents, and restricted cash and $2.6 million of marketable securities as of March 31, 2025, and $15 million available for withdrawal under the Second Amended Credit Facility Loan Agreement which matures on July 6, 2027. Capital resources derived from retained cash flow have been and are currently expected to continue to be negligible. Retained operating cash flow represents our expected cash flow provided by operating activities, less stockholder distributions and capital expenditures to maintain stores. These capital resources allow us to continue to execute our strategic business plan, which includes funding acquisitions, either directly or through joint ventures; expansion projects at our existing properties; and broadening our revenue base and pipeline of potential acquisitions through developing Global MaxManagement SM, our third-party management platform. Our board of directors regularly reviews our strategic business plan, including topics and metrices like capital formation, debt versus equity ratios, dividend policy, use of capital and debt, funds from operations (“FFO”) and adjusted funds from operations (“AFFO”) performance, and optimal cash levels. See the section titled "Non-GAAP Financial Measures" for the definition and use of FFO and AFFO.

Previous wording

Total revenues increased from $3,090,374 during the three months ended September 30, 2023 to $3,200,276 during the three months ended September 30, 2024, an increase of 3.6%, or $109,902. Rental income increased from $2,968,263 during the three months ended September 30, 2023 to $3,070,871 during the three months ended September 30, 2024, an increase of 3.5%, or $102,608. The increase was primarily attributable to increases in occupancy and existing tenant rates under our proprietary revenue rate management program, which was partially offset by lower move-in rental rates year-over-year across the United States and in the markets that we operate.

Current wording

Total revenues increased from $3,034,040 during the three months ended March 31, 2024 to $3,126,304 during the three months ended March 31, 2025, an increase of 3.0%, or $92,264. Rental income increased from $2,913,461 during the three months ended March 31, 2024 to $3,000,052 during the three months ended March 31, 2025, an increase of 3.0%, or $86,591. The increase was primarily attributable to increases in occupancy and existing tenant rates under our proprietary revenue rate management program, which was partially offset by lower move-in rental rates year-over-year across the United States and in the markets that we operate.

Previous wording

Other property related income consists of tenant insurance fees, sales of storage supplies, and other ancillary revenues. Other property related income increased from $103,676 during the three months ended September 30, 2023 to $111,618 during the three months ended September 30, 2024, an increase of 7.7%, or $7,942. The increase was primarily attributable to additional tenants subscribing to tenant insurance.

Current wording

Other property related income consists of tenant insurance fees, sales of storage supplies, and other ancillary revenues. Other property related income increased from $103,850 during the three months ended March 31, 2024 to $107,870 during the three months ended March 31, 2025, an increase of 3.9%, or $4,020. The increase was primarily attributable to additional tenants subscribing to tenant insurance.

Previous wording

Income from our third-party management platform consists of management fees and customer insurance fees. Management fees and other income decreased from $18,435 during the three months ended September 30, 2023 to $17,787 during the three months ended September 30, 2024. The decrease was primarily attributable to the adjustment of fees for our third-party management services in accordance with current market rates.

Current wording

Income from our third-party management platform consists of management fees and customer insurance fees. Management fees and other income increased from $16,729 during the three months ended March 31, 2024 to $18,382 during the three months ended March 31, 2025. The increase was primarily attributable to an increase in revenues at the third-party managed property.

Previous wording

Total operating expenses increased from $2,261,841 during the three months ended September 30, 2023 to $2,327,186 during the three months ended September 30, 2024, an increase of 2.9%, or $65,345, which was attributable to an increase in general and administrative expenses. Store operating expenses decreased from $1,163,064 during the three months ended September 30, 2023 to $1,153,947 during the three months ended September 30, 2024, a decrease of 0.8%, or $9,117.

Current wording

Total operating expenses decreased from $2,443,046 during the three months ended March 31, 2024 to $2,402,637 during the three months ended March 31, 2025, a decrease of 1.7%, or $40,409, which was attributable to a decrease in store-level operating expenses and general and administrative expenses. Store operating expenses decreased from $1,231,116 during the three months ended March 31, 2024 to $1,208,898 during the three months ended March 31, 2025, a decrease of 1.8%, or $22,218.

Previous wording

General and administrative expenses increased from $683,629 during the three months ended September 30, 2023 to $762,000 during the three months ended September 30, 2024, an increase of 11.5%, or $78,371. The increase in general and administrative expenses during this period are primarily attributable to increased professional fees and employment costs.

Current wording

General and administrative expenses decreased from $802,730 during the three months ended March 31, 2024 to $786,893 during the three months ended March 31, 2025, a decrease of 2.0%, or $15,837. The decrease in general and administrative expenses during this period are primarily attributable to decreased professional fees.

Previous wording

Depreciation and amortization decreased from $409,245 during the three months ended September 30, 2023 to $409,227 during the three months ended September 30, 2024.

Current wording

Depreciation and amortization decreased from $406,925 during the three months ended March 31, 2024 to $406,846 during the three months ended March 31, 2025.

Previous wording

Business development which includes capital raising, store acquisition, and third-party management marketing expenses decreased from $5,903 during the three months ended September 30, 2023 to $2,012 during the three months ended September 30, 2024, a decrease of 65.9%, or $3,891. These costs primarily consist of costs incurred in connection with business development, capital raising, and future potential store acquisitions, and third-party management marketing expenses. Business development costs are typically non-recurring and fluctuate based on periodic business development and acquisition activity.

Current wording

Business development which includes capital raising, store acquisition, and third-party management marketing expenses decreased from $2,275 during the three months ended March 31, 2024 to $0 during the three months ended March 31, 2025. These costs primarily consist of costs incurred in connection with business development, capital raising, and future potential store acquisitions, and third-party management marketing expenses. Business development costs are typically non-recurring and fluctuate based on periodic business development and acquisition activity.

Previous wording

As a result of the operating effects noted above, operating income increased from $828,533 during the three months ended September 30, 2023 to $873,090 during the three months ended September 30, 2024, an increase of 5.4%, or $44,557.

Current wording

As a result of the operating effects noted above, operating income increased from $590,994 during the three months ended March 31, 2024 to $723,667 during the three months ended March 31, 2025, an increase of 22.4%, or $132,673.

Previous wording

Interest expense on debt increased from $212,712 during the three months ended September 30, 2023 to $259,419 during the three months ended September 30, 2024. This increase was attributable to the change in fair value of the interest rate cap and the decrease in cash settlements under the interest rate cap. The cash payments for the $20 million Term Loan Agreement remain the same every month until June 2036 and are $107,699 per month.

Current wording

Interest expense on debt increased from $204,843 during the three months ended March 31, 2024 to $223,769 during the three months ended March 31, 2025. This increase was primarily attributable to the decrease in cash settlements under the interest rate cap. The cash payments for the $20 million Term Loan Agreement remain the same every month until June 2036 and are $107,699 per month.

Previous wording

Dividend, interest, and other income was $66,906 during the three months ended September 30, 2023 and $68,703 during the three months ended September 30, 2024.

Current wording

Dividend, interest, and other income was $54,877 during the three months ended March 31, 2024 and $68,599 during the three months ended March 31, 2025.

Previous wording

Unrealized loss on marketable equity securities was $411,969 during the three months ended September 30, 2023 and the unrealized gain on marketable equity securities was $499,283 during the three months ended September 30, 2024.

Current wording

Unrealized loss on marketable equity securities was $174,878 during the three months ended March 31, 2024 and the unrealized loss on marketable equity securities was $13,345 during the three months ended March 31, 2025.

Previous wording

For the three months ended September 30, 2023, net income was $270,758, or $0.02 per fully diluted share. For the three months ended September 30, 2024, net income was $1,181,657, or $0.10 per fully diluted share.

Current wording

For the three months ended March 31, 2024, net income was $266,150, or $0.02 per fully diluted share. For the three months ended March 31, 2025, net income was $555,152, or $0.05 per fully diluted share.

Previous wording

Distributions for each of the three months ended September 30, 2024 and 2023 were $0.0725 per share. The Company’s closing market price as of September 30, 2024 and September 30, 2023 was $5.21 and $4.86, respectively. Past market price performance and distribution levels do not guarantee similar results in the future.

Current wording

Distributions for each of the three months ended March 31, 2025 and 2024 were $0.0725 per share. The Company’s closing market price as of March 31, 2025 and March 31, 2024 was $5.04 and $4.45, respectively. Past market price performance and distribution levels do not guarantee similar results in the future.

Previous wording

The following discussion and analysis of our same-store self storage operations are presented on a comparative basis for the nine months ended September 30, 2024.

Current wording

The following discussion and analysis of our same-store self storage operations are presented on a comparative basis for the three months ended March 31, 2025.

Previous wording

SSG Dolton LLC; 2,100 square feet at SSG Merrillville LLC; 3,800 square feet at SSG Summerville I LLC; 8,000 square feet at SSG Summerville II LLC and 8,800 square feet at SSG Clinton LLC. For SSG Lima LLC, included is approximately 3,800 square feet of non-storage commercial and student housing space. For SSG Millbrook LLC, included is approximately 1,300 square feet of wine storage and non-storage office space. For SSG Fishers LLC, included is approximately 300 square feet of storage locker space. Approximately 33% of our total available units are climate-controlled, 59% are traditional drive-up storage, and 8% are outdoor parking storage for boats, cars and recreational vehicles.

Current wording

Certain stores’ leasable square feet in the chart above includes outside auto/RV/boat storage space: approximately 12,800 square feet at SSG Sadsbury LLC; 6,300 square feet at SSG Fishers LLC; 16,000 square feet at SSG Bolingbrook LLC; 8,900 square feet at SSG Dolton LLC; 2,100 square feet at SSG Merrillville LLC; 3,800 square feet at SSG Summerville I LLC; 7,800 square feet at SSG Summerville II LLC and 7,600 square feet at SSG Clinton LLC. For SSG Lima LLC, included is approximately 3,800 square feet of non-storage commercial and student housing space. For SSG Millbrook LLC, included is approximately 1,300 square feet of wine storage and non-storage office space. For SSG Fishers LLC, included is approximately 300 square feet of storage locker space. Approximately 33% of our total available units are climate-controlled, 59% are traditional drive-up storage, and 8% are outdoor parking storage for boats, cars and recreational vehicles.

Previous wording

Same-store occupancy at September 30, 2024 increased by 1.7% to 91.5% from 89.8% at September 30, 2023.

Current wording

Same-store occupancy at March 31, 2025 increased by 0.8% to 92.1% from 91.3% at March 31, 2024.

Previous wording

Same-store revenues increased by 3.6% and 1.5% for the three and nine months ended September 30, 2024 versus the same periods in 2023. Same-store cost of operations decreased by 0.8% and increased 5.4% for the three and nine months ended September 30, 2024 versus the same periods in 2023. Same-store NOI increased by 6.3% and decreased 0.7% for the three and nine months ended September 30, 2024 versus the same periods in 2023. The increase in same-store NOI during the three months ended September 30, 2024 was due primarily to an increase in revenues and decrease in cost of operations.

Current wording

Same-store revenues increased by 3.0% for the three months ended March 31, 2025 versus the same period in 2024. Same-store cost of operations decreased by 1.8% for the three months ended March 31, 2025 versus the same period in 2024. Same-store NOI increased by 6.3% for the three months ended March 31, 2025 versus the same period in 2024. The increase in same-store NOI during the three months ended March 31, 2025 was due primarily to an increase in revenues and decrease in cost of operations.

Previous wording

For the three and nine months ended September 30, 2024, same-store revenue increased 3.6%, or $110,550, and 1.5%, or $139,695, respectively, versus the same periods in 2023. Same-store average overall square foot occupancy for all of the Company’s same-store properties increased to 91.5% at September 30, 2024, up from 89.8% at September 30, 2023.

Current wording

For the three months ended March 31, 2025, same-store revenue increased 3.0%, or $90,611, versus the same period in 2024. Same-store average overall square foot occupancy for all of the Company’s same-store properties increased to 92.1% at March 31, 2025, up from 91.3% at March 31, 2024.

Previous wording

Importantly, we continue to refine our ongoing revenue rate management program which includes regular internet data scraping of local competitors’ prices. We do this in seeking to maintain our competitive market price advantage for our various sized storage units at our stores. This program helps us in seeking to maximize each store’s occupancies and our self storage revenue and NOI. We believe that, through our various marketing initiatives, we can continue to attract high quality, long term tenants who we expect will be storing with us for years. As of September 30, 2024, our average tenant duration of stay was approximately 3.4 years, which was up from 3.3 years as of September 30, 2023.

Current wording

Importantly, we continue to refine our ongoing revenue rate management program which includes regular internet data scraping of local competitors’ prices. We do this in seeking to maintain our competitive market price advantage for our various sized storage units at our stores. This program helps us in seeking to optimize each store’s occupancies and maximize our self storage revenue and NOI. We believe that, through our various marketing initiatives, we can continue to attract high quality, long term tenants who we expect will be storing with us for years. As of March 31, 2025, our average tenant duration of stay was approximately 3.5 years, which was up from approximately 3.3 years as of March 31, 2024.

Previous wording

For the three and nine months ended September 30, 2024, same-store cost of operations decreased 0.8%, or $9,117, and increased 5.4%, or $181,853, respectively, versus the same periods in 2023. This decrease in same-store cost of operations for the three months ended September 30, 2024 was due primarily to decreased expenses for real estate property taxes.

Current wording

For the three months ended March 31, 2025, same-store cost of operations decreased 1.8%, or $22,218, versus the same period in 2024. This decrease in same-store cost of operations for the three months ended March 31, 2025 was due primarily to decreased expenses for employment costs and real estate property taxes.

Previous wording

Employment. On-site store manager, regional manager, and district manager payroll expense increased 3.8%, or $12,601, and 9.1%, or $89,437, for the three and nine months ended September 30, 2024, respectively, versus the same periods in 2023. The increase was due primarily to routine employee hiring and inflationary increases in compensation rates for existing employees. We currently expect inflationary increases in compensation rates for existing employees and other increases in compensation costs as we potentially add new stores.

Current wording

Employment. On-site store manager, regional manager, and district manager payroll expense decreased 9.4%, or $35,893, for the three months ended March 31, 2025, versus the same period in 2024. The decrease was due primarily to routine employee departures which was partially offset by inflationary increases in compensation rates for existing employees. We currently expect inflationary increases in compensation rates for existing employees and other increases in compensation costs as we potentially add new stores.

Previous wording

Real Estate Property Tax. Store property tax expense decreased 6.4%, or $27,165, and increased 0.4%, or $4,693, for the three and nine months ended September 30, 2024, respectively, versus the same periods in 2023. When compared to store property tax expense for the three months ended September 30, 2024, we currently expect store property tax expense to be consistent during the rest of 2024. See the section titled “Property Tax Expenses at Dolton, IL” for additional detail regarding property tax relief obtained for our Dolton, IL property in 2024, which will partially offset our increased real estate property taxes.

Current wording

Real Estate Property Tax. Store property tax expense decreased 10.9%, or $45,424, for the three months ended March 31, 2025, versus the same period in 2024. When compared to store property tax expense for the three months ended March 31, 2025, we currently expect store property tax expense to be consistent during the rest of 2025. See the section titled “Property Tax Expenses at Dolton, IL” for additional detail regarding property tax relief obtained for our Dolton, IL property in 2024.

Previous wording

Administrative. We classify administrative expenses as bank charges related to processing the stores’ cash receipts, credit card fees, repairs and maintenance, utilities, landscaping, alarm monitoring and trash removal. Administrative expenses decreased 2.2%, or $4,727, and increased 1.5%, or $9,439, in the three and nine months ended September 30, 2024, respectively, versus the same periods in 2023. We experienced a decrease in administrative expenses for the three months ended September 30, 2024 due primarily to decreased repairs and maintenance expenses. We currently expect moderate increases in other direct store costs in 2024.

Current wording

Administrative. We classify administrative expenses as bank charges related to processing the stores’ cash receipts, credit card fees, repairs and maintenance, utilities, landscaping, alarm monitoring and trash removal. Administrative expenses increased 22.5%, or $49,869, in the three months ended March 31, 2025, versus the same period in 2024. We experienced an increase in administrative expenses for the three months ended March 31, 2025 due primarily to increased expenses for utilities, repairs and maintenance, and landscaping. We currently expect moderate increases in other direct store costs in 2025.

Previous wording

Repairs and Maintenance. Repairs and maintenance expense decreased 19.8%, or $10,883, and 8.2%, or $11,998, for the three and nine months ended September 30, 2024, respectively, versus the same periods in 2023. These expenses decreased during the three months ended September 30, 2024 versus the same period in 2023 primarily due to one-off repairs and maintenance completed in the three months ended September 30, 2023.

Current wording

Repairs and Maintenance. Repairs and maintenance expense increased 45.2%, or $14,437, for the three months ended March 31, 2025, versus the same period in 2024. These expenses increased during the three months ended March 31, 2025 versus the same period in 2024 primarily due to one-off repairs and maintenance completed in the three months ended March 31, 2025.

Previous wording

Utilities. Our utility expenses are currently comprised of electricity, oil, and gas costs, which vary by store and are dependent upon energy prices and usage levels. Changes in usage levels are driven primarily by weather and temperature. Also, affecting our utilities expenses over time is our ongoing LED light replacement program at all of our stores which has already resulted in lower electricity usage. Utilities expense decreased 2.2%, or $1,370, and 4.8%, or $10,032, for the three and nine months ended September 30, 2024, respectively, versus the same periods in 2023. It is difficult to estimate future utility costs because weather, temperature, and energy prices are volatile and unpredictable. However, based upon current trends and expectations regarding commercial electricity rates, we currently expect inflationary increases in rates combined with lower usage resulting in similar utility costs for the remainder of 2024.

Current wording

Utilities. Our utility expenses are currently comprised of electricity, oil, and gas costs, which vary by store and are dependent upon energy prices and usage levels. Changes in usage levels are driven primarily by weather and temperature. Also, affecting our utilities expenses over time is our ongoing LED light replacement program at all of our stores which has already resulted in lower electricity usage. Utilities expense increased 21.6%, or $18,800, for the three months ended March 31, 2025, versus the same period in 2024. It is difficult to estimate future utility costs because weather, temperature, and energy prices are volatile and unpredictable. However, based upon current trends and expectations regarding commercial electricity rates, we currently expect inflationary increases in rates partially offset by lower usage resulting in higher utility costs for the remainder of 2025.

Previous wording

Landscaping. Landscaping expenses, which include snow removal costs, increased 2.2%, or $571, and 15.8%, or $11,880, for the three and nine months ended September 30, 2024, respectively, versus the same periods in 2023. The increase in landscaping expense during the three and nine months ended September 30, 2024 versus the same periods in 2023 was primarily due to an increase of one-off snow removal and inflationary increases during the nine months ended September 30, 2024. Landscaping expense levels are dependent upon many factors such as weather conditions, which can impact landscaping needs including, among other things, snow removal, inflation in material and labor costs, and random events. We currently expect inflationary increases in landscaping expense for the remainder of 2024, excluding snow removal expense, which is primarily weather dependent and unpredictable.

Current wording

Landscaping. Landscaping expenses, which include snow removal costs, increased 45.8%, or $13,975, for the three months ended March 31, 2025, versus the same period in 2024. The increase in landscaping expense during the three months ended March 31, 2025 versus the same period in 2024 was primarily due to one-off snow removal costs and inflationary increases during the three months ended March 31, 2025. Landscaping expense levels are dependent upon many factors such as weather conditions, which can impact landscaping needs including, among other things, snow removal, inflation in material and labor costs, and random events. We currently expect inflationary increases in landscaping expense for the remainder of 2025, excluding snow removal expense, which is primarily weather dependent and unpredictable.

Previous wording

Marketing. Marketing expense is comprised principally of internet advertising and the operating costs of our 24/7 kiosk and telephone call and reservation center. Marketing expense varies based upon demand, occupancy levels, and other factors. Internet advertising, in particular, can increase or decrease significantly in the short term in response to these factors. Marketing expense decreased 5.4%, or $4,604, and 1.3%, or $3,420, for the three and nine months ended September 30, 2024, respectively, versus the same periods in 2023. Marketing expense decreased during the three months ended September 30, 2024 primarily due to decreased spending on digital advertising. Based upon current trends in move-ins, move-outs, and occupancies, we currently expect marketing expense to increase at a nominal rate for the remainder of 2024.

Current wording

Marketing. Marketing expense is comprised principally of internet advertising and the operating costs of our 24/7 kiosk and telephone call and reservation center. Marketing expense varies based upon demand, occupancy levels, and other factors. Internet advertising, in particular, can increase or decrease significantly in the short term in response to these factors. Marketing expense decreased 1.6%, or $1,382, for the three months ended March 31, 2025, versus the same period in 2024. Based upon current trends in move-ins, move-outs, and occupancies, we currently expect marketing expense to increase at a nominal rate for the remainder of 2025.

Previous wording

General. Other direct store costs include general and administrative expenses incurred at the stores. General expenses include items such as store insurance, business license costs, and the cost of operating each store’s rental office including supplies and telephone and data communication lines. General expenses increased 20.7%, or $19,112, and 38.4%, or $92,729, for the three and nine months ended September 30, 2024, respectively, versus the same periods in 2023, primarily due to increased expense for property insurance, recruitment and training, uniforms, and branded merchandise to support our customer loyalty program. We currently expect moderate increases in direct store costs during the remainder of 2024.

Current wording

General. Other direct store costs include general and administrative expenses incurred at the stores. General expenses include items such as store insurance, business license costs, and the cost of operating each store’s rental office including supplies and telephone and data communication lines. General expenses increased 8.7%, or $10,001, for the three months ended March 31, 2025, versus the same period in 2024, primarily due to the addition of cloud-based accounting software that is expected to improve efficiency and increased expense for property insurance, which was partially offset by lower costs for recruitment and training. We currently expect moderate increases in direct store costs during the remainder of 2025.

Previous wording

Lien Administration. Lien administration expenses increased 21.0%, or $1,142, and 6.6%, or $955, in the three and nine months ended September 30, 2024, respectively, versus the same periods in 2023.

Current wording

Lien Administration. Lien administration expenses increased 11.6%, or $611, in the three months ended March 31, 2025, versus the same period in 2024.

Previous wording

FFO decreased 0.0%, or $371, and 11.5%, or $370,567, for the three and nine months ended September 30, 2024, respectively, versus the same periods in 2023. FFO per diluted share was the same at $0.10 per share, and decreased from $0.29 per share to $0.26 per share, for the three and nine months ended September 30, 2024, respectively, versus the same periods in 2023. AFFO increased 2.2%, or $25,225, and decreased 8.5%, or $285,724, for the three and nine months ended September 30, 2024, respectively, versus the same periods in 2023. AFFO per diluted share was the same at $0.10 per share, and decreased from $0.30 per share to $0.28 per share, for the three and nine months ended September 30, 2024, respectively, versus the same periods in 2023.

Current wording

FFO increased 15.0%, or $127,390, for the three months ended March 31, 2025, versus the same period in 2024. FFO per diluted share increased from $0.08 per share to $0.09 per share, for the three months ended March 31, 2025, versus the same period in 2024. AFFO increased 16.8%, or $154,847, for the three months ended March 31, 2025, versus the same period in 2024. AFFO per diluted share increased from $0.08 per share to $0.10 per share, for the three months ended March 31, 2025, versus the same period in 2024.

Previous wording

Unrealized gains and losses on the Company’s investment in marketable equity securities for the nine months ended September 30, 2024 and 2023 were a gain of $403,935 and a loss of $165,266, respectively. As we continue to acquire and/or develop additional stores, as part of the funding for such activities, we may liquidate our investment in marketable equity securities and potentially realize gains or losses. As of September 30, 2024, our cumulative unrealized gain on marketable equity securities was $2,423,477. There were no realized gains or losses for the nine months ended September 30, 2024.

Current wording

Unrealized gains and losses on the Company’s investment in marketable equity securities for the three months ended March 31, 2025 and 2024 were a loss of $13,345 and $174,878, respectively. As we continue to acquire and/or develop additional stores, as part of the funding for such activities, we may liquidate our investment in marketable equity securities and potentially realize gains or losses. As of March 31, 2025, our cumulative unrealized gain on marketable equity securities was $1,840,155. There were no realized gains or losses for the three months ended March 31, 2025.