10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended March 31, 2024

☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from ____________________ to ____________________

Commission File Number: 001-12681

GLOBAL SELF STORAGE, INC.

(Exact name of registrant as specified in its charter)

    Maryland

    13-3926714

    (State or other jurisdiction of
incorporation or organization)

    (I.R.S. Employer
Identification Number)

Global Self Storage, Inc.

3814 Route 44

Millbrook, NY 12545

(212) 785-0900

(Address, including zip code, and telephone number, including area code, of Company’s principal executive offices)

Securities registered pursuant to Section 12(b) of the Act:

    Title of each class

    Trading
Symbol(s)

    Name of each exchange on which registered

    Common shares, $0.01 par value per share

    SELF

    NASDAQ

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒
		Smaller reporting company	☒
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ☒ No

The number of shares outstanding of the registrant’s common stock, par value $0.01 per share, as of April 19, 2024 was 11,259,870.

Table of Contents


STATEMENT ON FORWARD LOOKING INFORMATION			3
PART I – FINANCIAL INFORMATION			5
	Item 1.	Financial Statements (Unaudited).	5
	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations.	20
	Item 3.	Quantitative and Qualitative Disclosures About Market Risk.	30
	Item 4.	Controls and Procedures.	30
PART II – OTHER INFORMATION			32
	Item 1.	Legal Proceedings.	32
	Item 1A.	Risk Factors.	32
	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds.	32
	Item 3.	Defaults Upon Senior Securities.	32
	Item 4.	Mine Safety Disclosures.	32
	Item 5.	Other Information.	32
	Item 6.	Exhibits.	32
Exhibit Index			33
SIGNATURES			34

STATEMENT ON FORWARD LOOKING INFORMATION

Certain information presented in this report may contain “forward-looking statements” within the meaning of the federal securities laws including the Private Securities Litigation Reform Act of 1995. Forward looking statements include statements concerning our plans, objectives, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, plans or intentions relating to acquisitions and other information that is not historical information. In some cases, forward looking statements can be identified by terminology such as “believes,” “plans,” “intends,” “expects,” “estimates,” “may,” “will,” “should,” or “anticipates” or the negative of such terms or other comparable terminology, or by discussions of strategy. All forward-looking statements made by the Company involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of the Company, which may cause the Company’s actual results to be materially different from those expressed or implied by such statements. We may also make additional forward looking statements from time to time. All such subsequent forward-looking statements, whether written or oral, by us or on our behalf, are also expressly qualified by these cautionary statements. All forward-looking statements, including without limitation, management’s examination of historical operating trends and estimates of future earnings, are based upon our current expectations and various assumptions. Our expectations, beliefs and projections are expressed in good faith and we believe there is a reasonable basis for them, but there can be no assurance that management’s expectations, beliefs and projections will result or be achieved.

All forward looking statements apply only as of the date made. Except as required by law, we undertake no obligation to publicly update or revise forward looking statements which may be made to reflect events or circumstances after the date made or to reflect the occurrence of unanticipated events.

There are a number of risks and uncertainties that could cause our actual results to differ materially from the forward-looking statements contained in or contemplated by this report. Any forward-looking statements should be considered in light of the risks referenced in “Item 1A. Risk Factors” included in our most recent annual report on Form 10-K and in other subsequent filings with the Securities and Exchange Commission (the “SEC”). Such factors include, but are not limited to:

•

general risks associated with the ownership and operation of real estate, including changes in demand, risks related to redevelopment (including expansion) of self storage properties, potential liability for environmental contamination, natural disasters and adverse changes in tax, real estate and zoning laws and regulations;

•

risks associated with downturns in the national and local economies in the markets in which we operate, including risks related to current economic conditions and the economic health of our customers;

•

the impact of competition from new and existing self storage and commercial properties and other storage alternatives;

•

difficulties in our ability to successfully evaluate, finance, integrate into our existing operations, and manage acquired and redeveloped properties;

•

risks related to our redevelopment of properties and expansions and related lease up at our existing properties and/or participation in joint ventures;

•

risks of ongoing litigation and other legal and regulatory actions, which may divert management’s time and attention, require us to pay damages and expenses or restrict the operation of our business;

•

the impact of the regulatory environment as well as national, state, and local laws and regulations including, without limitation, those governing the environment, taxes and our tenant reinsurance business and real estate investment trusts (“REITs”), and risks related to the impact of new laws and regulations;

•

risk of increased tax expense associated either with a possible failure by us to qualify as a REIT, or with challenges to intercompany transactions with our taxable REIT subsidiaries;

•

changes in federal or state tax laws related to the taxation of REITs, which could impact our status as a REIT;

•

increases in taxes, fees and assessments from state and local jurisdictions;

•

security breaches or a failure of our networks, systems or technology;

•

our ability to obtain and maintain financing arrangements on favorable terms;

•

market trends in our industry, interest rates, the debt and lending markets or the general economy;

•

the timing of acquisitions and our ability to execute on our acquisition pipeline;

•

general volatility of the securities markets in which we participate;

•

changes in the value of our assets;

•

changes in interest rates and the degree to which our hedging strategies may or may not protect us from interest rate volatility;

•

increasing inflation;

•

our ability to continue to qualify and maintain our qualification as a REIT for U.S. federal income tax purposes;

•

availability of qualified personnel;

•

difficulties in raising capital at a reasonable cost;

•

fiscal policies or inaction at the U.S. federal government level, which may lead to federal government shutdowns or negative impacts on the U.S economy;

•

estimates relating to our ability to make distributions to our stockholders in the future; and

•

economic uncertainty due to the impact of terrorism, infectious or contagious diseases or pandemics, or war.

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements.

GLOBAL SELF STORAGE, INC.

CONSOLIDATED BALANCE SHEETS

(Unaudited)


	March 31, 2024			December 31, 2023
Assets
Real estate assets, net	$	55,084,366		$	55,481,220
Cash and cash equivalents		6,740,078			6,921,779
Restricted cash		126,162			106,767
Investments in securities		2,600,151			2,775,029
Accounts receivable		152,666			169,410
Prepaid expenses and other assets		630,375			629,196
Line of credit issuance costs, net		25,400			50,801
Interest rate cap		30,200			50,881
Goodwill		694,121			694,121
Total assets	$	66,083,519		$	66,879,204
Liabilities and equity
Note payable, net	$	16,767,445		$	16,901,219
Accounts payable and accrued expenses		1,541,461			1,731,958
Total liabilities		18,308,906			18,633,177
Commitments and contingencies
Stockholders' equity
Preferred stock, $0.01 par value: 50,000,000 shares authorized; no shares outstanding		—			—
Common stock, $0.01 par value: 450,000,000 shares authorized; 11,267,048 shares and 11,153,513 shares issued and outstanding at March 31, 2024 and December 31, 2023, respectively		112,671			111,535
Additional paid in capital		49,298,888			49,229,020
Accumulated deficit		(1,636,946	)		(1,094,528	)
Total stockholders' equity		47,774,613			48,246,027
Total liabilities and stockholders' equity	$	66,083,519		$	66,879,204

See notes to unaudited consolidated financial statements.

GLOBAL SELF STORAGE, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS and COMPREHENSIVE INCOME

(Unaudited)




	For the Three Months Ended March 31,
	2024			2023
Revenues
Rental income	$	2,913,461		$	2,924,404
Other property related income		103,850			91,737
Management fees and other income		16,729			21,811
Total revenues		3,034,040			3,037,952
Expenses
Property operations		1,231,116			1,121,337
General and administrative		802,730			679,712
Depreciation and amortization		406,925			406,841
Business development		2,275			5,249
Total expenses		2,443,046			2,213,139
Operating income		590,994			824,813
Other income (expense)
Dividend and interest income		54,877			41,566
Unrealized (loss) gain on marketable equity securities		(174,878	)		362,050
Interest expense		(204,843	)		(235,888	)
Total other income (expense), net		(324,844	)		167,728
Net income and comprehensive income	$	266,150		$	992,541
Earnings per share
Basic	$	0.02		$	0.09
Diluted	$	0.02		$	0.09
Weighted average shares outstanding
Basic		11,073,439			11,034,193
Diluted		11,110,963			11,080,511

See notes to unaudited consolidated financial statements.

GLOBAL SELF STORAGE, INC.

CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY

(Unaudited)




													Total
	Common stock						Additional paid in			Accumulated			stockholders'
	Shares			Par value			capital			deficit			equity
Balances at December 31, 2023		11,153,513		$	111,535		$	49,229,020		$	(1,094,528	)	$	48,246,027
Restricted stock grants issued		114,378			1,144			(1,144	)	—			—
Restricted stock grant forfeiture		(843	)		(8	)		8		—			—
Stock-based compensation	—			—				71,004		—				71,004
Net income	—			—			—				266,150			266,150
Dividends	—			—			—				(808,568	)		(808,568	)
Balances at March 31, 2024		11,267,048		$	112,671		$	49,298,888		$	(1,636,946	)	$	47,774,613

See notes to unaudited consolidated financial statements.

GLOBAL SELF STORAGE, INC.

CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY

(Unaudited)

SEC Form 10-Q filed by Global Self Storage Inc.