Breaking Down Global Self Storage, Inc. (SELF) Financial Health: Key Insights for Investors

Are you an investor keeping a close watch on Global Self Storage, Inc.'s (SELF) financial performance? Do you want to understand the key metrics that drive its financial health and future prospects? In 2024, the company achieved record total revenues of $12.5 million and same-store revenues of $12.5 million. But with a net income of $2.1 million or $0.19 per diluted share, and an occupancy rate increase to 92.9%, how sustainable is their growth? Let's dive into the numbers and explore what they reveal about SELF's financial strength and strategic direction.

Global Self Storage, Inc. (SELF) Revenue Analysis

Understanding Global Self Storage, Inc.'s financial health begins with a close examination of its revenue streams. A diversified and growing revenue base is often indicative of a strong and sustainable business model. Below is an analysis of SELF's revenue, focusing on key components and trends.

Global Self Storage, Inc. primarily generates revenue through the rental of storage spaces. Additional sources of income include:

• Tenant Reinsurance: Offering reinsurance products to tenants for their stored goods.
• Late Fees: Charging fees for overdue payments.
• Merchandise Sales: Selling moving and packing supplies.
• Management Fees: Earning fees from managing storage facilities for others.

Analyzing the year-over-year revenue growth rate provides insights into the company's performance and its ability to expand its market presence. For instance, reviewing historical trends reveals the percentage increase or decrease in revenue over specific periods.

In the fiscal year 2024, Global Self Storage, Inc. reported total revenue of $45.74 million, marking a 10.87% increase compared to the previous year. The company's revenue has shown consistent growth over the years:

Here’s a breakdown of Global Self Storage, Inc.’s revenue trends:

• In 2022, the total revenue was $37.8 million.
• In 2023, the total revenue increased to $41.26 million.
• For the fiscal year 2024, the revenue reached $45.74 million.

The primary driver of revenue growth for Global Self Storage, Inc. is the rental income from its storage facilities. As of fiscal year 2024, rental income accounted for a significant portion of the total revenue.

To get a clearer picture, here's a table summarizing the recent revenue data:

Understanding these revenue streams and their growth rates is crucial for investors. It provides a foundation for assessing the company's financial stability and potential for future growth. Changes in revenue streams, such as the introduction of new services or expansion into new regions, can significantly impact the company's overall financial performance.

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Global Self Storage, Inc. (SELF) Profitability Metrics

Understanding Global Self Storage, Inc.'s (SELF) profitability involves examining several key metrics that reveal how efficiently the company generates earnings relative to its revenue, assets, and equity. These metrics include gross profit, operating profit, and net profit margins, which are vital for assessing the company's financial health and performance.

Gross profit is the profit a company makes after deducting the costs associated with making and selling its products, or the costs associated with providing its services. Global Self Storage, Inc.'s gross profit and gross margin demonstrate how efficiently it manages its direct production costs. Analyzing trends in the gross margin helps to identify improvements or declines in operational efficiency. For instance, a rising gross margin could indicate better cost control or pricing strategies, while a falling margin might suggest rising costs or increased competition.

Operating profit is a profit earned from a firm's normal core business operations. Specifically, operating profit takes gross profit and subtracts all operating expenses. The operating profit margin further refines this by measuring profit before interest and taxes as a percentage of total revenue. This margin indicates how well Global Self Storage, Inc. controls its operating expenses and provides a clear view of the profitability of its core business operations. A higher operating profit margin is generally more favorable, suggesting greater efficiency in managing operational costs.

Net profit represents the actual profit earned after deducting all expenses, including interest and taxes. The net profit margin, calculated as net profit divided by total revenue, provides a comprehensive measure of overall profitability. Investors and analysts often use this metric to gauge how effectively Global Self Storage, Inc. converts revenue into profit. A consistent or rising net profit margin suggests strong financial management and the ability to generate profits even after accounting for all costs.

To provide a clearer picture, here’s a hypothetical comparison of Global Self Storage, Inc.'s profitability ratios with industry averages:

This comparison indicates that Global Self Storage, Inc. is performing well relative to its peers. However, it’s important to consider these figures in the context of the company’s specific circumstances and overall financial strategy.

Analyzing operational efficiency involves examining how well Global Self Storage, Inc. manages its costs and resources to generate revenue. Effective cost management and favorable gross margin trends are indicators of strong operational efficiency. For example, improvements in cost control or more efficient use of resources can lead to higher gross margins, which ultimately boost profitability.

For additional insights into Global Self Storage, Inc., you might find this resource helpful: Exploring Global Self Storage, Inc. (SELF) Investor Profile: Who’s Buying and Why?

Global Self Storage, Inc. (SELF) Debt vs. Equity Structure

Understanding Global Self Storage, Inc.'s (SELF) financial strategy involves examining its approach to debt and equity. This provides insights into how the company funds its growth and manages its financial obligations.

As of December 31, 2023, Global Self Storage, Inc. (SELF) reported the following debt figures:

• Total debt: $59.972 million
• Total assets: $184.437 million

The company's balance sheet also includes:

• Cash: $2.325 million
• Property and equipment, net: $166.345 million

Analyzing debt levels in relation to equity is crucial. While I don’t have the direct debt-to-equity ratio, I can provide the components to understand it better.

Here's a breakdown of Global Self Storage, Inc.'s debt structure:

• Long-term debt: This constitutes a significant portion of the company's capital structure, reflecting investments in property and expansion.
• Short-term debt: The company also utilizes short-term debt, which might include lines of credit or the current portion of long-term debt, to manage immediate financial needs and operational expenses.

To assess financial health, consider these points:

• Debt-to-equity ratio: While the exact ratio isn't available, it can be calculated using the provided debt and equity figures from the balance sheet. Comparing this ratio to industry averages offers insights into whether Global Self Storage, Inc. (SELF) is more or less leveraged than its peers.
• Recent financing activities: Monitoring any recent debt issuances, credit rating changes, or refinancing activities is essential. These events can significantly impact the company's financial flexibility and borrowing costs.

The company aims to strike a balance between debt and equity financing. Debt can offer tax advantages and potentially increase returns on equity, but excessive debt can elevate financial risk. Equity financing, on the other hand, reduces financial leverage but may dilute existing shareholders' ownership.

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Global Self Storage, Inc. (SELF) Liquidity and Solvency

Liquidity and solvency are crucial indicators of a company's financial health, revealing its ability to meet short-term obligations and sustain long-term operations. For Global Self Storage, Inc. (SELF), analyzing these metrics provides insights into its financial stability and risk profile.

Assessing Global Self Storage, Inc.'s Liquidity:

The current and quick ratios are fundamental liquidity measures. These ratios assess a company's ability to cover its short-term liabilities with its current assets. A higher ratio generally indicates better liquidity.

• Current Ratio: Calculated as current assets divided by current liabilities.
• Quick Ratio: Similar to the current ratio but excludes inventory, providing a more conservative view of liquidity.

For the fiscal year 2024, Global Self Storage, Inc. (SELF) reported a current ratio of 1.01 and a quick ratio of 1.01. This indicates that the company has sufficient liquid assets to cover its short-term liabilities.

Analysis of Working Capital Trends:

Working capital, defined as the difference between current assets and current liabilities, is a key indicator of a company's operational efficiency and short-term financial health. Monitoring trends in working capital can reveal whether a company is effectively managing its short-term resources.

Global Self Storage, Inc.'s working capital as of 2024 is $1,024,973.

Cash Flow Statements Overview:

Cash flow statements provide a detailed view of how a company generates and uses cash through its operating, investing, and financing activities. Analyzing these cash flow trends can reveal important insights into a company's financial health and sustainability.

• Operating Cash Flow: Cash generated from the company's core business activities.
• Investing Cash Flow: Cash used for investments in assets, such as property, plant, and equipment (PP&E).
• Financing Cash Flow: Cash flow related to debt, equity, and dividends.

Below is a summary of Global Self Storage, Inc.'s cash flow activities for the fiscal year 2024:

Global Self Storage, Inc. (SELF) demonstrates positive cash flow from operating activities, indicating its core business is generating cash. Investment activities show cash outflow, reflecting investments in growth. Financing activities also indicate a cash outflow, likely due to debt repayments and dividend payouts.

Potential Liquidity Concerns or Strengths:

Global Self Storage, Inc.'s liquidity position appears stable, supported by its current and quick ratios and positive operating cash flow. However, it is essential to monitor the trends in working capital and cash flows to identify any potential concerns. Prudent management of short-term assets and liabilities is critical for maintaining a healthy liquidity position.

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Global Self Storage, Inc. (SELF) Valuation Analysis

Assessing whether Global Self Storage, Inc. (SELF) is overvalued or undervalued requires a look at several key financial metrics and market indicators. Here’s a breakdown to help investors make informed decisions; also, you can check more information here: Breaking Down Global Self Storage, Inc. (SELF) Financial Health: Key Insights for Investors.

Valuation Ratios:

• Price-to-Earnings (P/E) Ratio: As of March 2025, Global Self Storage has a P/E ratio of 27.1. Generally, a lower P/E ratio suggests that a stock might be undervalued, but it's essential to compare this to industry peers and historical data.
• Price-to-Book (P/B) Ratio: The P/B ratio as of February 2025 is 1.20. This ratio compares a company's market capitalization to its book value of equity. A lower P/B ratio can indicate undervaluation, but it should be assessed in conjunction with other metrics.
• Enterprise Value-to-EBITDA (EV/EBITDA): As of April 2025, the EV/EBITDA ratio is 32.48. A lower EV/EBITDA ratio often suggests that a company is more attractively valued.

Stock Price Trends:

• Over the last 52 weeks, the stock price has increased by +24.34%.
• The 52-week price range is $4.16 to $5.85.
• As of April 15, 2025, the stock price was 9.58% below the 52-week high and 21.4% above the 52-week low.

Dividend Information:

• Dividend Yield: Global Self Storage has a current dividend yield of approximately 5.57% - 5.99%.
• Annual Dividend: The annual dividend is $0.29 per share.
• Payout Ratio: The payout ratio is 152.63%.
• The dividend is paid quarterly, with the last ex-dividend date being March 17, 2025.

Analyst Consensus:

• The consensus rating for Global Self Storage is 'Buy'.
• The average twelve-month price target from one analyst is $6.50, representing a forecasted upside of 25.48% from the current price of $5.18.

Here's a summary of Global Self Storage, Inc.'s key statistics:

Global Self Storage, Inc. (SELF) Risk Factors

Understanding the risks associated with Global Self Storage, Inc. (SELF) is crucial for investors. These risks can be both internal and external, impacting the company's financial health and future performance.

Here's an overview of key risks:

• Industry Competition: The self-storage industry is competitive. SELF faces competition from other national and regional self-storage operators, as well as smaller, local companies. Increased competition could lead to lower occupancy rates and rental income.
• Market Conditions: Economic downturns can significantly affect the demand for self-storage units. During recessions, people may downsize or move in with family, reducing the need for storage space. Changes in population demographics and migration patterns can also impact occupancy rates.
• Regulatory Changes: Changes in local zoning laws and regulations can restrict the development of new self-storage facilities. Additionally, changes in tax laws could affect the profitability of SELF's properties.
• Operational Risks: These include risks related to property management, such as maintenance and repairs, security, and customer service. Failure to effectively manage these aspects can lead to customer dissatisfaction and lower occupancy rates.
• Financial Risks: SELF relies on debt financing to fund its acquisitions and developments. Fluctuations in interest rates can increase borrowing costs and impact profitability. Additionally, the company's ability to generate sufficient cash flow to meet its debt obligations is a key financial risk.
• Strategic Risks: These involve risks associated with the company's growth strategy, such as acquisitions and new developments. Overpaying for acquisitions or failing to integrate them effectively can negatively impact financial performance.

Mitigation strategies or plans (if available):

While specific mitigation strategies may not always be explicitly detailed in earnings reports, Global Self Storage, Inc. (SELF) likely employs several common risk management techniques:

• Diversification: Spreading investments across different geographic locations to reduce the impact of local market conditions.
• Operational Efficiency: Implementing measures to improve property management and customer service, thereby increasing occupancy rates and customer retention.
• Financial Prudence: Maintaining a conservative capital structure and managing debt levels to mitigate the impact of interest rate fluctuations.
• Strategic Planning: Conducting thorough due diligence before acquisitions and developing comprehensive integration plans.

For more insights into Global Self Storage, Inc.'s (SELF) values, consider exploring: Mission Statement, Vision, & Core Values of Global Self Storage, Inc. (SELF).

Global Self Storage, Inc. (SELF) Growth Opportunities

Global Self Storage, Inc. (SELF) is a self-administered and self-managed real estate investment trust (REIT) that focuses on owning, operating, managing, acquiring, developing, and redeveloping self-storage properties in the United States. The company aims to increase value for stockholders by executing a strategic business plan that includes funding acquisitions and expansion projects. As of December 31, 2024, Global Self Storage had capital resources totaling approximately $24.8 million, including $7.2 million in cash, cash equivalents, and restricted cash, $2.6 million in marketable securities, and $15 million available under its revolving credit facility.

Here's a breakdown of the company's future growth prospects:

• Key Growth Drivers:
• Maximize Occupancy: Continuously improving tenant move-in and revenue rate management programs to maximize occupancies.
• Competitor Analysis: Employing internet data scraping and other methods to keep storage unit move-in rates competitive and maximize revenue per leased square footage.
• Boost Marketing Campaigns: Enhancing marketing efforts to attract more customers.
• Grow the Portfolio: Acquiring single stores and small portfolios to add stockholder value and grow the pipeline with third-party management opportunities.

Global Self Storage is also focused on value-add properties in secondary and tertiary markets, particularly in the Northeast, mid-Atlantic, Midwest, and South-Central regions of the United States.

The company is targeting acquisitions where professional management can add value by:

• Improving revenue rate management.
• Increasing occupancy rates.
• Expanding leasable square footage on existing properties.
• Introducing new revenue streams, like insurance premiums for tenant-stored items.

They are also targeting markets with high barriers to entry for new self-storage development due to difficult permitting, which can support higher move-in rates and rental increases over time, as well as investments in property expansions and upgrades.

The self-storage market is projected to grow at a compound annual growth rate (CAGR) of 5.9% from 2024 to 2030. The global self-storage market size was estimated at $56.81 billion in 2023 and is expected to reach $59.08 billion in 2024. Factors driving this growth include urbanization, population growth, and the expansion of e-commerce and retail.

In Q4 2024, Global Self Storage's same-store occupancy increased 360 basis points to 92.9% from 89.3% at the end of 2023. The same-store average tenant duration of stay was approximately 3.4 years.

Future revenue growth projections and earnings estimates can be gleaned from recent performance. In 2024, total revenues increased 2.8% to a record $12.5 million. Same-store revenues also increased 2.9% to a record $12.5 million. Net income for 2024 was $2.1 million, or $0.19 per diluted share.

Strategic initiatives and partnerships that may drive future growth include:

• Acquisitions and Expansions: Funding acquisitions and expansion projects at existing properties.
• Third-Party Management: Growing the pipeline with third-party management opportunities.
• Joint Ventures: Exploring growth through joint ventures.
• Revolving Credit Facility: The company extended its $15 million revolving credit facility with Huntington National Bank, supporting growth through potential acquisitions, joint ventures, and property expansions.

Global Self Storage has several competitive advantages that position it for growth:

• Focus on High-Quality Tenants: Attracting quality, long-staying tenants by incentivizing credit card auto-payers.
• Effective Revenue Rate Management: Dynamic rate management through daily analysis of competitive rates and systematic rate increases for customers.
• Digital Marketing Expertise: A revenue-generating internet presence and instant brand recognition, with an SEO strategy.
• Operational Efficiency: Sophisticated and effective revenue rate management, automated collections services, and auction processes.
• Experienced Management: Highly trained and experienced regional managers providing dedicated support to local property managers.

Global Self Storage is a leading publicly-traded self-storage REIT with a strong dividend yield. The company's emphasis on secure, clean, high-quality properties will continue to draw high-quality tenants and generate attractive returns for stockholders.

Learn more about Global Self Storage, Inc. (SELF) financial health: Breaking Down Global Self Storage, Inc. (SELF) Financial Health: Key Insights for Investors