MJ Partners First Quarter 2017 Results

Posted: 5/18/2017
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Moderating Growth Continues

  • Deceleration of growth reverting back to the mean may be expected after several years of outsized revenue and net operating income growth.
  • The self storage REITs generated same-store revenue growth in the first quarter of 2017 ranging from 3.2% to 6.6%. Revenue growth unevenly spread across specific markets. With occupancies plateauing in the first quarter in comparison to last year, rental rate increases had greatest impact on revenue growth.
  • Net Operating Income in the first quarter 2017 range from 3.2% to 9.2%.
  • The bid-ask spread between buyers and sellers remains wide driving lower acquisition volume for operating properties and certificate of occupancy transactions during the first quarter of 2017. An uptick in transactions anticipated in the second half of the year as the gap between buyers and sellers narrows, and impact of new supply pipeline defined.
  • A flight to quality persists as cap rates for the best assets remains stable.

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