Outlook:
The following table outlines the Company’s prior period and revised Core FFO estimates and annual assumptions for the year ending December 31, 20231, INCLUDING THE IMPACT OF THE LIFE STORAGE MERGER.
|
Ranges for 2023 Annual Assumptions |
Prior Ranges for 2023 Annual Assumptions |
Notes | |||||||
| (November 7, 2023) | (August 3, 2023) | ||||||||
| Low | High | Low | High | ||||||
| Core FFO | $8.05 | $8.20 | $8.00 | $8.25 | Includes dilutive impact of Life Storage Merger | ||||
| Dilution per share from C of O and value add acquisitions | $0.23 | $0.23 | $0.23 | $0.23 | |||||
| Same-store revenue growth | 2.75 % | 3.50 % | 2.50 % | 3.50 % | Same-store pool of 914 stores | ||||
| Same-store expense growth | 4.00 % | 5.00 % | 3.50 % | 4.50 % | Same-store pool of 914 stores | ||||
| Same-store NOI growth | 2.25 % | 3.25 % | 2.00 % | 3.50 % | Same-store pool of 914 stores | ||||
| Weighted average one-month SOFR | 5.02 % | 5.02 % | 5.05 % | 5.05 % | |||||
| Net tenant reinsurance income | $178,000,000 | $180,000,000 | $158,500,000 | $159,500,000 | |||||
| Management fees and other income | $102,000,000 | $103,000,000 | $89,000,000 | $90,000,000 | |||||
| Interest income | $84,000,000 | $85,000,000 | $83,000,000 | $84,000,000 | Includes interest from bridge loans and dividends from NexPoint preferred investment | ||||
| General and administrative expenses | $149,500,000 | $151,000,000 | $138,500,000 | $139,500,000 | Includes non-cash compensation | ||||
| Average monthly cash balance | $118,000,000 | $118,000,000 | $50,000,000 | $50,000,000 | |||||
| Equity in earnings of real estate ventures | $54,500,000 | $55,500,000 | $53,000,000 | $54,000,000 | Includes dividends from SmartStop preferred investments | ||||
| Interest expense | $418,500,000 | $421,000,000 | $339,500,000 | $342,500,000 | Excludes non-cash interest expense shown below | ||||
| Non-cash interest expense related to amortization of discount on Life Storage unsecured senior notes | $18,500,000 | $19,000,000 | N/A | N/A | Amortization of LSI debt mark-to-market; excluded from Core FFO | ||||
| Income Tax Expense | $21,500,000 | $22,500,000 | $23,000,000 | $24,000,000 | Taxes associated with the Company’s taxable REIT subsidiary | ||||
| Acquisitions | $185,000,000 | $185,000,000 | $200,000,000 | $200,000,000 | Represents the Company’s investment and excludes Life Storage Merger | ||||
| Bridge loans outstanding | $550,000,000 | $550,000,000 | $600,000,000 | $600,000,000 | Represents the Company’s average retained loan balances for 2023 | ||||
| Weighted average share count | 179,000,000 | 179,000,000 | 144,000,000 | 144,000,000 | Assumes redemption of all OP units for common stock | ||||
| (1) | A reconciliation of net income outlook to same-store net operating income outlook is provided later in this release entitled “Reconciliation of Estimated GAAP Net Income to Estimated Same-Store Net Operating Income.” The reconciliation includes details related to same-store revenue and same-store expense outlooks. A reconciliation of net income per share outlook to funds from operations per share outlook is provided later in this release entitled “Reconciliation of the Range of Estimated GAAP Fully Diluted Earnings Per Share to Estimated Fully Diluted FFO Per Share.” |
FFO estimates for the year are fully diluted for an estimated average number of shares and OP units outstanding during the year. The Company’s estimates are forward-looking and based on management’s view of current and future market conditions. The Company’s actual results may differ materially from these estimates.
