Global Self Storage, Inc.

Previous wording

Our store operations generated most of our net income for all periods presented herein. Accordingly, a significant portion of management’s time is devoted to seeking to maximize cash flows from our existing stores, as well as seeking investments in additional stores. The Company expects to continue to earn a majority of its gross income from its store operations as its current store operations continue to develop and as it makes additional store acquisitions. Over time, the Company expects to divest its remaining portfolio of investment securities and use the proceeds to acquire and operate additional stores. The Company expects its income from investment securities to continue to decrease as it continues to divest its holdings of investment securities.

Current wording

Our store operations generated most of our net income for all periods presented herein. Accordingly, a significant portion of management’s time is devoted to seeking to maximize cash flows from our existing stores, as well as seeking investments in additional stores. The Company expects to continue to earn a majority of its gross income from its store operations as our current store operations continue to develop and as we make additional store acquisitions. Over time, the Company expects to divest its remaining portfolio of investment securities and use the proceeds to acquire and operate additional stores. The Company expects its income from investment securities to continue to decrease as it continues to divest its holdings of investment securities.

Previous wording

On December 20, 2018, certain of our wholly owned subsidiaries (“Credit Facility Secured Subsidiaries”) entered into a revolving credit loan agreement (collectively, the “Credit Facility Loan Agreement”) between the Credit Facility Secured Subsidiaries and TCF National Bank (“Credit Facility Lender”). Under the Credit Facility Loan Agreement, the Credit Facility Secured Subsidiaries may borrow from the Credit Facility Lender in the principal amount of up to $10 million pursuant to a promissory note (the “Credit Facility Promissory Note”). The Credit Facility Promissory Note bears an interest rate equal to 3.00% over the One Month U.S. Dollar London Inter-Bank Offered Rate and was due to mature on December 20, 2021. The obligations under the Credit Facility Loan Agreement are secured by certain real estate assets owned by the Credit Facility Secured Subsidiaries. We entered into a guaranty of payment on December 20, 2018 (the “Credit Facility Guaranty,” and together with the Credit Facility Loan Agreement, the Credit Facility Promissory Note and related instruments, the “Credit Facility Loan Documents”) to guarantee the payment to the Credit Facility Lender of certain obligations of the Credit Facility Secured Subsidiaries under the Credit Facility Loan Agreement. As described in more detail below, the Credit Facility Loan Agreement has been replaced in its entirety by the Amended Credit Facility Loan Agreement on July 6, 2021.

Current wording

On December 20, 2018, certain of our wholly owned subsidiaries (“Credit Facility Secured Subsidiaries”) entered into a revolving credit loan agreement (collectively, the “Credit Facility Loan Agreement”) between the Credit Facility Secured Subsidiaries and TCF National Bank (“Credit Facility Lender”). Under the Credit Facility Loan Agreement, the Credit Facility Secured Subsidiaries may borrow from the Credit Facility Lender in the principal amount of up to $10 million pursuant to a promissory note (the “Credit Facility Promissory Note”). The Credit Facility Promissory Note bears an interest rate equal to 3.00% over the One Month U.S. Dollar London Inter-Bank Offered Rate and was due to mature on December 20, 2021. The obligations under the Credit Facility Loan Agreement are secured by certain real estate assets owned by the Credit Facility Secured Subsidiaries. We entered into a guaranty of payment on December 20, 2018 (the “Credit Facility Guaranty,” and together with the Credit Facility Loan Agreement, the Credit Facility Promissory Note and related instruments, the “Credit Facility Loan Documents”) to guarantee the payment to the Credit Facility Lender of certain obligations of the Credit Facility Secured Subsidiaries under the Credit Facility Loan Agreement. As described in more detail below, the Credit Facility Loan Agreement has been replaced in its entirety by the Amended Credit Facility Loan Agreement on July 6, 2021, which was further amended on July 6, 2024.

Previous wording

On July 6, 2021, certain wholly owned subsidiaries (“Amended Credit Facility Secured Subsidiaries”) of the Company entered into a first amendment to the Credit Facility Loan Agreement (collectively, the “Amended Credit Facility Loan Agreement”) between the Amended Credit Facility Secured Subsidiaries and The Huntington National Bank, successor by merger to TCF National Bank (“Amended Credit Facility Lender”). Under the Amended Credit Facility Loan Agreement, the Amended Credit Facility Secured Subsidiaries were able to borrow from the Amended Credit Facility Lender in the principal amount of up to $15 million, reduced to $14.75 million and $14.5 million in years 2 and 3, respectively, pursuant to a promissory note (the “Amended Credit Facility Promissory Note”). The Amended Credit Facility Promissory Note bore an interest rate equal to 3% plus the greater of the One Month U.S. Dollar London Inter-Bank Offered Rate or 0.25% and was due to mature on July 6, 2024. As of March 31, 2025, the effective interest rate was 8.44%. The publication of LIBOR ceased after June 30, 2023. The Amended Credit Facility Loan Agreement provided for a replacement index based on the Secured Overnight Financing Rate (“SOFR”). The interest rate on the Amended Credit Facility Promissory Note subsequent to June 30, 2023, was equal to 3% plus the greater of SOFR plus 0.11448% or 0.25%. The obligations under the Amended Credit Facility Loan Agreement were secured by certain real estate assets owned by the Amended Credit Facility Secured Subsidiaries. The Company entered into an amended and restated guaranty of payment on July 6, 2021 (“Amended Credit Facility Guaranty,” and together with the Amended Credit Facility Loan Agreement, the Amended Credit Facility Promissory Note and related instruments, the “Amended Credit Facility Loan Documents”) to guarantee the payment to the Amended Credit Facility Lender of certain obligations of the Amended Credit Facility Secured Subsidiaries under the Amended Credit Facility Loan Agreement. The Company and the Amended Credit Facility Secured Subsidiaries paid customary fees and expenses in connection with their entry into the Amended Credit Facility Loan Documents. As described in more detail below, the Amended Credit Facility Loan Agreement has been replaced in its entirety by the Second Amended Credit Facility Loan Agreement on July 6, 2024.

Current wording

On July 6, 2021, certain wholly owned subsidiaries (“Amended Credit Facility Secured Subsidiaries”) of the Company entered into a first amendment to the Credit Facility Loan Agreement (collectively, the “Amended Credit Facility Loan Agreement”) between the Amended Credit Facility Secured Subsidiaries and The Huntington National Bank, successor by merger to TCF National Bank (“Amended Credit Facility Lender”). Under the Amended Credit Facility Loan Agreement, the Amended Credit Facility Secured Subsidiaries were able to borrow from the Amended Credit Facility Lender in the principal amount of up to $15 million, reduced to $14.75 million and $14.5 million in years 2 and 3, respectively, pursuant to a promissory note (the “Amended Credit Facility Promissory Note”). The Amended Credit Facility Promissory Note bore an interest rate equal to 3% plus the greater of the One Month U.S. Dollar London Inter-Bank Offered Rate or 0.25% and was due to mature on July 6, 2024. The publication of LIBOR ceased after June 30, 2023. The Amended Credit Facility Loan Agreement provided for a replacement index based on the Secured Overnight Financing Rate (“SOFR”). The interest rate on the Amended Credit Facility Promissory Note subsequent to June 30, 2023, was equal to 3% plus the greater of SOFR plus 0.11448% or 0.25%. The obligations under the Amended Credit Facility Loan Agreement were secured by certain real estate assets owned by the Amended Credit Facility Secured Subsidiaries. The Company entered into an amended and restated guaranty of payment on July 6, 2021 (“Amended Credit Facility Guaranty,” and together with the Amended Credit Facility Loan Agreement, the Amended Credit Facility Promissory Note and related instruments, the “Amended Credit Facility Loan Documents”) to guarantee the payment to the Amended Credit Facility Lender of certain obligations of the Amended Credit Facility Secured Subsidiaries under the Amended Credit Facility Loan Agreement. The Company and the Amended Credit Facility Secured Subsidiaries paid customary fees and expenses in connection with their entry into the Amended Credit Facility Loan Documents. As described in more detail below, the Amended Credit Facility Loan Agreement has been replaced in its entirety by the Second Amended Credit Facility Loan Agreement on July 6, 2024.

Previous 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.

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 and six months ended June 30, 2025 and June 30, 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 and entered into a new at market offering sales agreement with another sales agent.

Previous wording

On July 6, 2024, certain wholly owned subsidiaries (“Second Amended Credit Facility Secured Subsidiaries”) of the Company entered into a second amendment to the Credit Facility Loan Agreement (collectively, the “Second Amended Credit Facility Loan Agreement”) between the Second Amended Credit Facility Secured Subsidiaries and The Huntington National Bank, successor by merger to TCF National Bank (“Second Amended Credit Facility Lender”). Under the Second Amended Credit Facility Loan Agreement, the Second Amended Credit Facility Secured Subsidiaries may borrow from the Second Amended Credit Facility Lender in the principal amount of up to $15 million, reduced to $14.75 million and $14.5 million in years 2 and 3, respectively, pursuant to a promissory note (the “Second Amended Credit Facility Promissory Note”). The Second Amended Credit Facility Promissory Note bears an interest rate equal to 3% plus the greater of the One Month SOFR or 0.25% and is due to mature on July 6, 2027, with an option to extend the maturity to July 6, 2028. An annual unused facility fee is charged based on the daily average of the unadvanced amount of the Second Amended Credit Facility Loan Agreement during the trailing twelve month period ending each June 30. The fee will be calculated at 0.25% per annum if the daily average of the unadvanced amount of the Second Amended Credit Facility Loan Agreement during such trailing twelve month period was greater than fifty percent, and will be calculated at 0.15% if the daily average of the unadvanced amount of the Second Amended Credit Facility Loan Agreement during such trailing twelve month period was less than or equal to fifty percent. The obligations under the Second Amended Credit Facility Loan Agreement are secured by certain real estate assets owned by the Second Amended Credit Facility Secured Subsidiaries. The Company entered into a second amended and restated guaranty of payment as of July 6, 2024 (“Second Amended Credit Facility Guaranty,” and together with the Second Amended Credit Facility Loan Agreement, the Second Amended Credit Facility Promissory Note and related instruments, the “Second Amended Credit Facility Loan Documents”) to guarantee the payment to the Second Amended Credit Facility Lender of certain obligations of the Second Amended Credit Facility Secured Subsidiaries under the Second Amended Credit Facility Loan Agreement. The Company and the Second Amended Credit Facility Secured Subsidiaries paid customary fees and expenses in connection with their entry into the Second Amended Credit Facility Loan Documents. The Company also maintains a bank account at the Second Amended Credit Facility Lender. As of March 31, 2025, we have no withdrawn proceeds under the Second Amended Credit Facility Loan Agreement. We currently intend to strategically withdraw proceeds available under the Second Amended Credit Facility Loan Agreement to fund: (i) the acquisition of additional self storage properties, (ii) expans…

Excerpt shortened here; the source contains the full paragraph.

Current wording

On July 6, 2024, certain wholly owned subsidiaries (“Second Amended Credit Facility Secured Subsidiaries”) of the Company entered into a second amendment to the Credit Facility Loan Agreement (collectively, the “Second Amended Credit Facility Loan Agreement”) between the Second Amended Credit Facility Secured Subsidiaries and The Huntington National Bank, successor by merger to TCF National Bank (“Second Amended Credit Facility Lender”). Under the Second Amended Credit Facility Loan Agreement, the Second Amended Credit Facility Secured Subsidiaries may borrow from the Second Amended Credit Facility Lender in the principal amount of up to $15 million, reduced to $14.75 million and $14.5 million in years 2 and 3, respectively, pursuant to a promissory note (the “Second Amended Credit Facility Promissory Note”). The Second Amended Credit Facility Promissory Note bears an interest rate equal to 3% plus the greater of the One Month SOFR or 0.25% and is due to mature on July 6, 2027, with an option to extend the maturity to July 6, 2028. As of June 30, 2025, the effective interest rate was approximately 7.3%. An annual unused facility fee is charged based on the daily average of the unadvanced amount of the Second Amended Credit Facility Loan Agreement during the trailing twelve month period ending each June 30. The fee will be calculated at 0.25% per annum if the daily average of the unadvanced amount of the Second Amended Credit Facility Loan Agreement during such trailing twelve month period was greater than fifty percent, and will be calculated at 0.15% if the daily average of the unadvanced amount of the Second Amended Credit Facility Loan Agreement during such trailing twelve month period was less than or equal to fifty percent. The obligations under the Second Amended Credit Facility Loan Agreement are secured by certain real estate assets owned by the Second Amended Credit Facility Secured Subsidiaries. The Company entered into a second amended and restated guaranty of payment as of July 6, 2024 (“Second Amended Credit Facility Guaranty,” and together with the Second Amended Credit Facility Loan Agreement, the Second Amended Credit Facility Promissory Note and related instruments, the “Second Amended Credit Facility Loan Documents”) to guarantee the payment to the Second Amended Credit Facility Lender of certain obligations of the Second Amended Credit Facility Secured Subsidiaries under the Second Amended Credit Facility Loan Agreement. The Company and the Second Amended Credit Facility Secured Subsidiaries paid customary fees and expenses in connection with their entry into the Second Amended Credit Facility Loan Documents. The Company also maintains a bank account at the Second Amended Credit Facility Lender. As of June 30, 2025, we have no withdrawn proceeds under the Second Amended Credit Facility Loan Agreement. We currently intend to strategically withdraw proceeds available under the Second Amended Credit Facility Loan Agreement to fund…

Excerpt shortened here; the source contains the full paragraph.

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 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.

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 and six months ended June 30, 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 June 30, 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 $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.

Current wording

The Company currently has capital resources totaling approximately $25.2 million, comprised of $7.6 million of cash, cash equivalents, and restricted cash and $2.6 million of marketable securities as of June 30, 2025, and $15 million available for withdrawal under the Second Amended Credit Facility Loan Agreement. 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

We expect that the results of our operations will be affected by a number of factors. Many of the factors that will affect our operating results are beyond our control. The Company and its properties could be materially and adversely affected by the risks, or the public perception of the risks, related to, among other things, public health crises, natural disasters and geopolitical events, including the ongoing conflict between Russia, Belarus and Ukraine, the ongoing conflict between Israel and Hamas, financial and credit market volatility and disruptions, inflationary pressures, rising interest rate fluctuations, supply chain issues, labor shortages and recessionary concerns.

Current wording

We expect that the results of our operations will be affected by a number of factors. Many of the factors that will affect our operating results are beyond our control. The Company and its properties could be materially and adversely affected by the risks, or the public perception of the risks, related to, among other things, public health crises, natural disasters and geopolitical events, including the ongoing conflict between Russia, Belarus and Ukraine, the ongoing conflict between Israel and Hamas, financial and credit market volatility and disruptions, inflationary pressures, rising interest rate fluctuations, supply chain issues, tariff and international trade, labor shortages and recessionary concerns.

Previous 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.

Current wording

Total revenues increased from $3,109,038 during the three months ended June 30, 2024 to $3,194,378 during the three months ended June 30, 2025, an increase of 2.7%, or $85,340. Rental income increased from $2,983,039 during the three months ended June 30, 2024 to $3,062,588 during the three months ended June 30, 2025, an increase of 2.7%, or $79,549. The increase was primarily attributable to increases in occupancy and existing tenant rates under our proprietary revenue rate management program.

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 $103,850 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.

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 $108,489 during the three months ended June 30, 2024 to $113,008 during the three months ended June 30, 2025, an increase of 4.2%, or $4,519. 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 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.

Current wording

Income from our third-party management platform consists of management fees and customer insurance fees. Management fees and other income increased from $17,510 during the three months ended June 30, 2024 to $18,782 during the three months ended June 30, 2025. The increase was primarily attributable to an increase in revenues at the third-party managed property.

Previous 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.

Current wording

General and administrative expenses decreased from $892,822 during the three months ended June 30, 2024 to $778,695 during the three months ended June 30, 2025, a decrease of 12.8%, or $114,127. The decrease in general and administrative expenses during this period are primarily attributable to decreased professional fees.

Previous 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.

Current wording

Depreciation and amortization decreased from $409,136 during the three months ended June 30, 2024 to $407,717 during the three months ended June 30, 2025.

Previous 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.

Current wording

As a result of the operating effects noted above, operating income increased from $635,911 during the three months ended June 30, 2024 to $828,925 during the three months ended June 30, 2025, an increase of 30.4%, or $193,014.

Previous 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.

Current wording

Dividend, interest, and other income was $87,450 during the three months ended June 30, 2024 and $73,130 during the three months ended June 30, 2025.

Previous 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.

Current wording

Unrealized gains on marketable equity securities was $79,530 during the three months ended June 30, 2024 and the unrealized losses on marketable equity securities was $23,447 during the three months ended June 30, 2025.

Previous 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.

Current wording

For the three months ended June 30, 2024, net income was $591,530, or $0.05 per fully diluted share, and for the three months ended June 30, 2025, net income was $664,216, or $0.06 per fully diluted share.

Previous 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.

Current wording

Distributions for each of the three months ended June 30, 2025 and 2024 were $0.0725 per share. The Company’s closing market price as of June 30, 2025 and June 30, 2024 was $5.34 and $4.86, respectively. Past market price performance and distribution levels do not guarantee similar results in the future.

Previous 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.

Current wording

Total operating expenses decreased from $4,916,174 during the six months ended June 30, 2024 to $4,768,090 during the six months ended June 30, 2025, a decrease of 3.0%, or $148,084, which was attributable to a decrease in store-level operating expenses and general and administrative expenses. Store operating expenses decreased from $2,402,285 during the six months ended June 30, 2024 to $2,387,940 during the six months ended June 30, 2025, an decrease of 0.6%, or $14,345.

Previous 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.

Current wording

Business development which includes capital raising, store acquisition, and third-party management marketing expenses decreased from $2,275 during the six months ended June 30, 2024 to $0 during the six months ended June 30, 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

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.

Current wording

Interest expense on debt increased from $416,203 during the six months ended June 30, 2024 to $438,161 during the six months ended June 30, 2025. This increase was primarily attributable to the unused fee on the revolving credit facility. 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

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.

Current wording

The following discussion and analysis of our same-store self storage operations are presented on a comparative basis for the six months ended June 30, 2025.

Previous 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.

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; 7,500 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 March 31, 2025 increased by 0.8% to 92.1% from 91.3% at March 31, 2024.

Current wording

Same-store occupancy at June 30, 2025 increased by 1.7% to 94.7% from 93.0% at June 30, 2024.

Previous 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.

Current wording

Same-store revenues increased by 2.7% and 2.9% for the three and six months ended June 30, 2025 versus the same periods in 2024. Same-store cost of operations increased by 0.7% for the three months ended June 30, 2025 versus the same period in 2024 and decreased 0.6% for the six months ended June 30, 2025 versus the same period in 2024. Same-store NOI increased by 4.0% and 5.1% for the three and six months ended June 30, 2025 versus the same periods in 2024. The increase in same-store NOI during the three and six months ended June 30, 2025 was due primarily to an increase in revenues.

Previous wording

We believe that our results were driven by, among other things, our internet and digital marketing initiatives which helped maintain our overall average same-store occupancy of approximately 92% as of March 31, 2025. Also, contributing to our results were our customer service efforts which we believe were essential in building local brand loyalty, resulting in strong referral and word-of-mouth market demand for our storage units and services. Another contributing factor to our results was our competitor move-in rate metrics analysis which employs internet data scraping and other methods to help keep our storage unit move-in rates “in the market,” and our revenue rate management program which helped increase existing tenant rates while optimizing store occupancy.

Current wording

We believe that our results were driven by, among other things, our internet and digital marketing initiatives which helped maintain our overall average same-store occupancy of approximately 95% as of June 30, 2025. Also, contributing to our results were our customer service efforts which we believe were essential in building local brand loyalty, resulting in strong referral and word-of-mouth market demand for our storage units and services. Another contributing factor to our results was our competitor move-in rate metrics analysis which employs internet data scraping and other methods to help keep our storage unit move-in rates “in the market,” and our revenue rate management program which helped increase existing tenant rates while optimizing store occupancy.

Previous 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.

Current wording

For the three and six months ended June 30, 2025, same-store revenue increased 2.7%, or $84,068, and 2.9%, or $174,679 versus the same periods in 2024. Same-store average overall square foot occupancy for all of the Company’s same-store properties increased to 94.7% at June 30, 2025, up from 93.0% at June 30, 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 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.

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 June 30, 2025, our average tenant duration of stay was approximately 3.4 years, which was up from approximately 3.3 years as of June 30, 2024.

Previous 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.

Current wording

For the three months ended June 30, 2025 same-store cost of operations increased 0.7%, or $7,872, versus the same periods in 2024. This increase in same-store cost of operations for the three months ended June 30, 2025 was due primarily to increased expenses for utilities, lien administration, employment costs and the addition of cloud-based accounting software that is expected to improve efficiency. For the six months ended June 30, 2025 same-store cost of operations decreased 0.6%, or $14,345, versus the same period in 2024. This decrease in same-store cost of operations for the six months ended June 30, 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 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.

Current wording

Employment. On-site store manager, regional manager, and district manager payroll expense increased 1.7%, or $5,841, for the three months ended June 30, 2025 versus the same periods in 2024. The increase was due primarily to routine increases in compensation rates for existing employees. For the six months ended June 30, 2025 those payroll expenses decreased 4.1%, or $30,052 versus the same period in 2024. The decrease was due primarily to timing in employee departures and the hiring of those open positions. 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 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.

Current wording

Real Estate Property Tax. Store property tax expense decreased 12.3%, or $50,772, and 11.6%, or $96,196, for the three and six months ended June 30, 2025, versus the same periods in 2024. 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 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.

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 9.0%, or $19,352, and 15.9%, or $69,221, in the three and six months ended June 30, 2025, versus the same periods in 2024. We experienced an increase in administrative expenses for the 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 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.

Current wording

Repairs and Maintenance. Repairs and maintenance expense increased 8.7%, or $5,022, and 21.7%, or $19,459 for the three and six months ended June 30, 2025, versus the same periods in 2024. These expenses increased during the three months ended June 30, 2025 versus the same periods in 2024 primarily due to one-off repairs and maintenance.

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 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.

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 29.2%, or $14,508, and 24.4%, or $33,308, for the three and six months ended June 30,

Previous 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.

Current wording

Landscaping. Landscaping expenses, which include snow removal costs, decreased 15.2%, or $4,525, for the three months ended June 30, 2025, versus the same period in 2024 and increased 15.7%, or $9,450, for the six months ended June 30, 2025, versus the same period in 2024. The decrease in landscaping expense during the three months ended June 30, 2025 versus the same period in 2024 was primarily due to lower maintenance activity and the increase in landscaping expense during the six months ended June 30, 2025 versus the same period in 2024 was primarily due to one-off snow removal costs and inflationary increases during the six months ended June 30, 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 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.

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 2.0%, or $1,639, and 0.2%, or $260, for the three and six months ended June 30, 2025, versus the same periods 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 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.

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 18.6%, or $19,967, and 13.5%, or $29,968,, for the three and six months ended June 30, 2025, versus the same periods in 2024, primarily due to the addition of cloud-based accounting software that is expected to improve efficiency and increased expense for property insurance. We currently expect moderate increases in direct store costs during the remainder of 2025.

Previous 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.

Current wording

Lien Administration. Lien administration expenses increased $11,844 and $12,455, in the three and six months ended June 30, 2025, versus the same periods in 2024. The increase was attributable to one-off legal matters.

Previous 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.

Current wording

FFO increased 18.9%, or $174,244, and 17.1%, or $301,631, for the three and six months ended June 30, 2025, respectively, versus the same period in 2024. FFO per diluted share increased from $0.08 per share to $0.10 per share, and from $0.16 per share to $0.18 per share, for the three and six months ended June 30, 2025, respectively, versus the same period in 2024. AFFO increased 17.5%, or $173,537, and 17.1%, or $328,381, for the three and six months ended June 30, 2025, respectively, versus the same period in 2024. AFFO per diluted share increased from $0.09 per share to $0.10 per share, and from $0.17 per share to $0.20 per share for the three and six months ended June 30, 2025, respectively, versus the same period in 2024.

Previous 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.

Current wording

Unrealized gains and losses on the Company’s investment in marketable equity securities for the three and six months ended June 30, 2025 were a decrease in unrealized gains of $23,447 and $36,792, 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 June 30, 2025, our cumulative unrealized gain on marketable equity securities was $1,816,708. There were no realized gains or losses for the six months ended June 30, 2025.