Global Self Storage, Inc.

Previous 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.

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 Consolidated Financial Statements (Unaudited) 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

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 nine months ended September 30, 2025 and September 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.

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, 2026 and March 31, 2025 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 on the first and second anniversary, 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 September 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 September 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 Fa…

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 on the first and second anniversary, 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 March 31, 2026, the effective interest rate was approximately 6.7%. 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, 2026, 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 L…

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 and nine months ended September 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 September 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.

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, 2026. 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, 2026, 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 $24.8 million, comprised of $7.5 million of cash, cash equivalents, and restricted cash and $2.5 million of marketable securities as of September 30, 2025, and $14.8 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.

Current wording

The Company currently has capital resources totaling approximately $24.5 million, comprised of $7.4 million of cash, cash equivalents, and restricted cash and $2.3 million of marketable securities as of March 31, 2026, and $14.8 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

Total revenues increased from $3,200,276 during the three months ended September 30, 2024 to $3,225,671 during the three months ended September 30, 2025, an increase of 0.8%, or $25,395. Rental income increased from $3,070,871 during the three months ended September 30, 2024 to $3,099,499 during the three months ended September 30, 2025, an increase of 0.9%, or $28,628. The increase was primarily attributable to increases in occupancy and existing tenant rates under our proprietary revenue rate management program.

Current wording

Total revenues increased from $3,126,304 during the three months ended March 31, 2025 to $3,173,754 during the three months ended March 31, 2026, an increase of 1.5%, or $47,450. Rental income increased from $3,000,052 during the three months ended March 31, 2025 to $3,050,304 during the three months ended March 31, 2026, an increase of 1.7%, or $50,252. 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 decreased from $111,618 during the three months ended September 30, 2024 to $107,911 during the three months ended September 30, 2025, a decrease of 3.3%, or $3,707. The decrease was primarily attributable to lower merchandise sales as a result of our complimentary high security lock with new rentals marketing promotion.

Current wording

Other property related income consists of tenant insurance fees, sales of storage supplies, and other ancillary revenues. Other property related income decreased from $107,870 during the three months ended March 31, 2025 to $104,831 during the three months ended March 31, 2026, a decrease of 2.8%, or $3,039. The decrease was primarily attributable to lower merchandise sales as a result of our complimentary high security lock with new rentals marketing promotion.

Previous wording

Income from our third-party management platform consists of management fees and customer insurance fees. Management fees and other income increased from $17,787 during the three months ended September 30, 2024 to $18,261 during the three months ended September 30, 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 $18,382 during the three months ended March 31, 2025 to $18,619 during the three months ended March 31, 2026. The increase was primarily attributable to an increase in revenues at the third-party managed property.

Previous wording

Total operating expenses increased from $2,327,186 during the three months ended September 30, 2024 to $2,497,241 during the three months ended September 30, 2025, an increase of 7.3%, or $170,055, which was attributable primarily to an increase to store operating expenses and an increase in one-time general and administrative expenses. Store operating expenses increased from $1,153,947 during the three months ended September 30, 2024 to $1,239,432 during the three months ended September 30, 2025, an increase of 7.4%, or $85,485. We experienced an increase in store operating expenses for the three months ended September 30, 2025, versus the same period in 2024, due primarily to increased expenses for utilities, employment costs, and one-time repairs and maintenance.

Current wording

Total operating expenses increased from $2,402,637 during the three months ended March 31, 2025 to $2,601,978 during the three months ended March 31, 2026, an increase of 8.3%, or $199,341, which was attributable primarily to an increase to store operating expenses and an increase in general and administrative expenses. Store operating expenses increased from $1,208,898 during the three months ended March 31, 2025 to $1,330,343 during the three months ended March 31, 2026, an increase of 10.0%, or $121,445. We experienced an increase in store operating expenses for the three months ended March 31, 2026, versus the same period in 2025, due primarily to increased expenses for employment costs and real estate property taxes.

Previous wording

General and administrative expenses increased from $762,000 during the three months ended September 30, 2024 to $826,220 during the three months ended September 30, 2025, an increase of 8.4%, or $64,220. The increase in general and administrative expenses during this period are primarily attributable to an increase to one-time professional fees.

Current wording

General and administrative expenses increased from $786,893 during the three months ended March 31, 2025 to $859,220 during the three months ended March 31, 2026, an increase of 9.2%, or $72,327. The increase in general and administrative expenses during this period are primarily attributable to an increase to employment costs, and one-time professional fees related to the amendment and restatement of our equity incentive plan.

Previous wording

Depreciation and amortization increased from $409,227 during the three months ended September 30, 2024 to $409,303 during the three months ended September 30, 2025.

Current wording

Depreciation and amortization increased from $406,846 during the three months ended March 31, 2025 to $412,415 during the three months ended March 31, 2026.

Previous wording

As a result of the operating effects noted above, operating income decreased from $873,090 during the three months ended September 30, 2024 to $728,430 during the three months ended September 30, 2025, a decrease of 16.6%, or $144,660.

Current wording

As a result of the operating effects noted above, operating income decreased from $723,667 during the three months ended March 31, 2025 to $571,776 during the three months ended March 31, 2026, a decrease of 21.0%, or $151,891.

Previous wording

Dividend, interest, and other income was $68,703 during the three months ended September 30, 2024 and $75,675 during the three months ended September 30, 2025.

Current wording

Dividend, interest, and other income was $68,599 during the three months ended March 31, 2025 and $72,250 during the three months ended March 31, 2026.

Previous wording

Unrealized gains on marketable equity securities was $499,283 during the three months ended September 30, 2024 and the unrealized losses on marketable equity securities was $98,704 during the three months ended September 30, 2025.

Current wording

Unrealized losses on marketable equity securities was $13,345 during the three months ended March 31, 2025 and the unrealized gains on marketable equity securities was $36,871 during the three months ended March 31, 2026.

Previous wording

For the three months ended September 30, 2024, net income was $1,181,657, or $0.10 per fully diluted share, and for the three months ended September 30, 2025, net income was $496,259, or $0.04 per fully diluted share.

Current wording

For the three months ended March 31, 2025, net income was $555,152, or $0.05 per fully diluted share, and for the three months ended March 31, 2026, net income was $477,019, or $0.04 per fully diluted share.

Previous wording

Distributions for each of the three months ended September 30, 2025 and 2024 were $0.0725 per share. The Company’s closing market price as of September 30, 2025 and September 30, 2024 was $5.03 and $5.21, 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, 2026 and 2025 were $0.0725 per share. The Company’s closing market price as of March 31, 2026 and March 31, 2025 was $5.11 and $5.04, 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, 2025.

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, 2026.

Previous wording

We consider our same-store portfolio to consist of only those stores owned and operated on a stabilized basis at the beginning and at the end of the applicable periods presented. We consider a store to be stabilized once it has achieved an occupancy rate that we believe, based on our assessment of market-specific data, is representative of similar self storage assets in the applicable market for a full year measured as of the most recent January 1 and has not been significantly damaged by natural disaster or undergone significant renovation or expansion. We believe that same-store results are useful to investors in evaluating our performance because they provide information relating to changes in store-level operating performance without taking into account the effects of acquisitions, dispositions, or new ground-up developments. At September 30, 2025, we owned twelve same-store properties and zero non same-store properties. The

Current wording

We consider our same-store portfolio to consist of only those stores owned and operated on a stabilized basis at the beginning and at the end of the applicable periods presented. We consider a store to be stabilized once it has achieved an occupancy rate that we believe, based on our assessment of market-specific data, is representative of similar self storage assets in the applicable market for a full year measured as of the most recent January 1 and has not been significantly damaged by natural disaster or undergone significant renovation or expansion. We believe that same-store results are useful to investors in evaluating our performance because they provide information relating to changes in store-level operating performance without taking into account the effects of acquisitions, dispositions, or new ground-up developments. As of March 31, 2026, we owned twelve same-store properties and zero non same-store properties. The Company believes that by providing same-store results from a stabilized pool of stores, with accompanying operating metrics including, but not limited to, variances in occupancy, rental revenue, operating expenses, and NOI, stockholders and potential investors are able to evaluate operating performance without the effects of non-stabilized occupancy levels, rent levels, expense levels, acquisitions, or completed developments. Same-store results should not be used as a basis for future same-store performance or for the performance of the Company’s stores as a whole.

Previous wording

Same-store occupancy at September 30, 2025 increased by 1.7% to 93.2% from 91.5% at September 30, 2024.

Current wording

Same-store occupancy as of March 31, 2026 increased by 1.0% to 93.1% from 92.1% as of March 31, 2025.

Previous wording

Same-store revenues increased by 0.8% and 2.1% for the three and nine months ended September 30, 2025 versus the same periods in 2024. Same-store cost of operations increased by 7.4% for the three months ended September 30, 2025 versus the same period in 2024 and increased 2.0% for the nine months ended September 30, 2025 versus the same period in 2024. Same-store NOI decreased by 3.0% for the three months ended September 30, 2025 versus an increase of 2.2% for the nine months ended September 30, 2025. The decrease in same-store NOI during the three months ended September 30, 2025 was due primarily to an increase in store operating expenses. The increase in same-store NOI during the nine months ended September 30, 2025 was due primarily to an increase in revenues.

Current wording

Same-store revenues increased by 1.5% for the three months ended March 31, 2026 versus the same period in 2025. Same-store cost of operations increased by 10.0% for the three months ended March 31, 2026 versus the same period in 2025. Same-store NOI decreased by 3.9% for the three months ended March 31, 2026 versus the same period in 2025. The decrease in same-store NOI during the three months ended March 31, 2026 was due primarily to an increase in store operating expenses.

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 93% as of September 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.

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 93% as of March 31, 2026. 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 proprietary revenue rate management program which helped increase existing tenant rates while optimizing store occupancy.

Previous wording

For the three and nine months ended September 30, 2025, same-store revenue increased 0.8%, or $24,921, and 2.2%, or $199,600 versus the same periods in 2024. Same-store average overall square foot occupancy for all of the Company’s same-store properties increased to 93.2% at September 30, 2025, up from 91.5% at September 30, 2024.

Current wording

For the three months ended March 31, 2026, same-store revenue increased 1.5%, or $47,213 versus the same period in 2025. Same-store average overall square foot occupancy for all of the Company’s same-store properties increased to 93.1% as of March 31, 2026, up from 92.1% as of March 31, 2025.

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 September 30, 2025, our average tenant duration of stay was approximately 3.5 years, which was up from approximately 3.4 years as of September 30, 2024.

Current wording

Importantly, we continue to refine our proprietary 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, 2026, our average tenant duration of stay was approximately 3.6 years, which was up from approximately 3.5 years as of March 31, 2025.

Previous wording

For the three months ended September 30, 2025 same-store cost of operations increased 7.4%, or $85,485, versus the same period in 2024. This increase in same-store cost of operations for the three months ended September 30, 2025 was due primarily to increased expenses for utilities, employment costs, and one-time repairs and maintenance. For the nine months ended September 30, 2025 same-store cost of operations increased 2.0%, or $71,140, versus the same period in 2024. This increase in same-store cost of operations for the nine months ended September 30, 2025 was due primarily to increased expenses for utilities and one-time repairs and maintenance.

Current wording

For the three months ended March 31, 2026 same-store cost of operations increased 10.0%, or $121,445, versus the same period in 2025. This increase in same-store cost of operations for the three months ended March 31, 2026 was due primarily to increased expenses for employment costs and real estate property taxes.

Previous wording

Employment. On-site store manager, regional manager, and district manager payroll expense increased 9.5%, or $32,831, for the three months ended September 30, 2025 versus the same period in 2024. The increase was due primarily to timing in routine employee hiring and departures. For the nine months ended September 30, 2025 employment costs increased 0.3%, or $2,779 versus the same period in 2024. 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 21.5%, or $74,371, for the three months ended March 31, 2026 versus the same period in 2025. The increase was due primarily to timing in routine employee hiring and departures and increased medical insurance expenses. We currently expect growth of store-level employment costs related to employee headcount to return to lower historic levels, which will be partially offset by inflationary increases in compensation rates for existing employees and other increases in compensation costs as we potentially add new stores.

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 25.5%, or $53,293, and 19.0%, or $122,514, in the three and nine months ended September 30, 2025, versus the same periods in 2024. We experienced an increase in administrative expenses for the three and nine months ended September 30, 2025, versus the same periods in 2024, due primarily to increased expenses for utilities and repairs and maintenance. 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 0.8%, or $2,087, in the three months ended March 31, 2026, versus the same period in 2025. We currently expect moderate increases in other direct store costs in 2026.

Previous wording

Repairs and Maintenance. Repairs and maintenance expense increased 44.0%, or $19,367, and 29.1%, or $38,826 for the three and nine months ended September 30, 2025, versus the same periods in 2024. These expenses increased during the three and nine months ended September 30, 2025, versus the same periods in 2024 primarily due to one-time repairs and maintenance.

Current wording

Repairs and Maintenance. Repairs and maintenance expense decreased 2.8%, or $1,317, for the three months ended March 31, 2026, versus the same period in 2025. These expenses decreased during the three months ended March 31, 2026, versus the same period in 2025 primarily due to one-time 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 resulted in lower electricity usage. Utilities expense increased 55.8%, or $34,631, and 34.2%, or $67,939, for the three and nine months ended September 30, 2025, versus the same periods 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 resulted in lower electricity usage. Utilities expense increased 0.5%, or $542, for the three months ended March 31, 2026, versus the same period in 2025. 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 2026.

Previous wording

Landscaping. Landscaping expenses, which include snow removal costs, decreased 6.3%, or $1,717, for the three months ended September 30, 2025, versus the same period in 2024 and increased 8.9%, or $7,733, for the nine months ended September 30, 2025, versus the same period in 2024. The decrease in landscaping expense during the three months ended September 30, 2025 versus the same period in 2024 was primarily due to lower maintenance activity and the increase in landscaping expense during the nine months ended September 30, 2025 versus the same period in 2024 was primarily due to one-off snow removal costs and inflationary increases during the nine months ended September 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.

Current wording

Landscaping. Landscaping expenses, which include snow removal costs, increased 10.8%, or $4,791, for the three months ended March 31, 2026, versus the same period in 2025. The increase in landscaping expense during the three months ended March 31, 2026 versus the same period in 2025 was primarily due to one-off snow removal costs and inflationary increases during the three months ended March 31, 2026. 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 2026, 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 increased 14.7%, or $11,967, and 4.8%, or $12,225, for the three and nine months ended September 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.

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 increased 7.3%, or $6,389, for the three months ended March 31, 2026, versus the same period in 2025. 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 2026.

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 decreased 6.1%, or $6,830, and increased 6.9%, or $23,138, for the three and nine months ended September 30, 2025, versus the same periods in 2024. 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 decreased 16.9%, or $21,163, for the three months ended March 31, 2026, versus the same period in 2025. The decrease in general expenses during the three months ended March 31, 2026 versus the same period in 2025 was primarily due to one-off cloud-based software expenses during the three months ended March 31, 2025. We currently expect moderate increases in direct store costs during the remainder of 2026.

Previous wording

Lien Administration. Lien administration expenses increased $898 and $3,259, in the three and nine months ended September 30, 2025, versus the same periods in 2024.

Current wording

Lien Administration. Lien administration expenses increased $1,282, in the three months ended March 31, 2026, versus the same period in 2025.

Previous wording

FFO decreased 8.0%, or $87,335, and increased 7.5%, or $214,297, for the three and nine months ended September 30, 2025, respectively, versus the same periods in 2024. FFO per diluted share decreased from $0.10 per share to $0.09 per share, and increased from $0.26 per share to $0.27 per share, for the three and nine months ended September 30, 2025, respectively, versus the same periods in 2024. AFFO decreased 6.0%, or $70,320, and increased 8.4%, or $258,062, for the three and nine months ended September 30, 2025, respectively, versus the same periods in 2024. AFFO per diluted share remained the same at $0.10 per share, and increased from $0.28 per share to $0.30 per share for the three and nine months ended September 30, 2025, respectively, versus the same periods in 2024.

Current wording

FFO decreased 12.6%, or $122,780, for the three months ended March 31, 2026, versus the same period in 2025. FFO per diluted share decreased from $0.09 per share to $0.08 per share, for the three months ended March 31, 2026, versus the same period in 2025. AFFO decreased 11.0%, or $118,145, for the three months ended March 31, 2026, versus the same period in 2025. AFFO per diluted share decreased from $0.10 per share to $0.08 per share, for the three months ended March 31, 2026, versus the same period in 2025.

Previous wording

Unrealized gains and losses on the Company’s investment in marketable equity securities for the three and nine months ended September 30, 2025 were a decrease in unrealized gains of $98,704 and $135,497, 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, 2025, our cumulative unrealized gain on marketable equity securities was $1,718,003. There were no realized gains or losses for the nine months ended September 30, 2025.

Current wording

Unrealized gains and losses on the Company’s investment in marketable equity securities for the three months ended March 31, 2026 was a gain of 36,871. 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, 2026, our cumulative unrealized gain on marketable equity securities was $1,532,950. There were no realized gains or losses for the three months ended March 31, 2026.