Global Self Storage, Inc. (NASDAQ:SELF) reported mixed operating results for the third quarter ended September 30, 2026. Revenue, funds from operations (FFO) and adjusted funds from operations (AFFO) increased from the same year-ago period, while net income, occupancy and same-store net operating income (NOI) declined.
#Third-quarter financial performance
Total revenue rose 0.6% to $3.2 million. Operating expenses fell 1.2% to $2.47 million, helped by lower general and administrative costs, although property operating expenses increased.
Operating income increased 6.7% to $777,000. Net income, however, decreased 16.0% to $417,000, or $0.04 per diluted share, compared with $496,000, or $0.04 per diluted share, in the same period last year.
FFO, a non-GAAP measure, increased 5.8% to $1.1 million, or $0.09 per diluted share. AFFO rose 4.7% to $1.1 million, or $0.10 per diluted share. The company says these measures should be considered alongside GAAP net income and cash flow, and notes that other REITs may calculate them differently.
#Same-store occupancy and tenant duration
Global Self Storage reported a 0.6% increase in third-quarter same-store revenue to $3.2 million. Same-store operating costs increased 2.5% to $1.3 million, primarily because of higher employment costs and real estate property taxes. Lower marketing expenses partly offset those increases.
Same-store NOI decreased 0.6% to $1.96 million from $1.97 million. Occupancy stood at 92.9% on September 30, 2026, compared with 93.2% on September 30, 2025.
Average tenant duration of stay reached approximately 3.7 years at the end of the quarter, up from approximately 3.5 years a year earlier. The company owned 12 same-store properties as of September 30, 2026.
#First nine months of 2026
For the first nine months of 2026, total revenue increased 0.9% to $9.6 million. Net income increased 0.4% to $1.7 million, or $0.15 per diluted share.
Performance measures were weaker over the longer period. Same-store NOI declined 2.8% to $5.7 million, while FFO decreased 5.9% to $2.9 million, or $0.26 per diluted share. AFFO fell 5.1% to $3.2 million, or $0.28 per diluted share.
Total operating expenses for the nine-month period increased 4.5% to $7.6 million, contributing to a 10.4% decline in operating income to $2.0 million. The company attributed the higher costs primarily to store operating expenses and general and administrative expenses.
#Dividend and capital resources
Global Self Storage declared a quarterly dividend of $0.0725 per common share on September 1, 2026. The company said the distribution was consistent with the year-ago quarter and the previous quarter. Dividends for the first nine months totaled $0.2175 per common share.
Capital resources totaled approximately $24.3 million at September 30, 2026. This included $7.5 million in cash, cash equivalents and restricted cash, $2.3 million in marketable securities and $14.5 million available through the company’s revolving credit facility.
#Management comments and operating plans
Chief executive officer and president Mark C. Winmill said the company used competitor move-in rate analysis and its revenue rate management programme to adjust rates and manage occupancy. He also said the company’s digital marketing and customer service activity supported tenant demand.
The company said it was nearing completion of a change from kiosks to a QR code-based rental access page. It also moved from a live-agent call centre to an AI-based virtual-agent call centre in the second quarter. Management currently expects marketing expenses to decrease for the remainder of 2026, while also expecting inflationary increases in administrative costs.
At the company’s Lima, Ohio property, certain student housing space was converted into approximately 2,400 leasable square feet of climate-controlled units in Q1 2026. Occupancy at the property was approximately 94.1% on September 30, 2026, compared with approximately 90.6% after the conversion.
Management said store-level employment costs increased during the quarter and that property taxes remained a factor. The company continues to appeal property tax reassessments, but said there is no guarantee that assessments will be reduced.
#Strategic plans and forward-looking statements
Global Self Storage said its strategic business plan includes acquisitions, either directly or through joint ventures, and expansion projects at existing properties. Management said the company continues to review store and portfolio acquisition opportunities and may pursue additional third-party management relationships through Global MaxManagement.
Management currently expects rental income growth to come from existing tenant rent increases, higher move-in rental rates, lower promotional discounts and higher occupancy. The company said existing tenant rent increases for the remainder of 2026 are anticipated to be similar to those in the prior year. These statements are forward-looking and remain subject to the risks and uncertainties identified by the company, including the possibility that actual results may differ from expectations.
#Key Takeaways
- Third-quarter revenue increased 0.6% to $3.2 million, while net income fell 16.0% to $417,000.
- Quarterly FFO rose 5.8% to $1.1 million and AFFO increased 4.7% to $1.1 million.
- Same-store occupancy was 92.9%, while average tenant duration reached approximately 3.7 years.
- First-nine-month FFO and AFFO declined 5.9% and 5.1%, respectively.
- Capital resources were approximately $24.3 million at September 30, 2026.
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