Global Self Storage extends $15 million credit line

MILLBROOK, NY - Global Self Storage, Inc. (NASDAQ:SELF), a real estate investment trust specializing in self-storage facilities, has renewed its $15 million revolving credit facility with The Huntington National Bank.

The arrangement, which is backed by the company's properties in New York, Ohio, Indiana, and Connecticut, will now extend for an additional three years, with the option for a one-year extension following the initial term.

The credit line's interest rate on withdrawn funds is set at the one-month SOFR plus 3.00%. This financial maneuver is part of Global Self Storage's broader strategy to strengthen its balance sheet and support growth initiatives, including acquisitions and expansions.

Mark C. Winmill, president and CEO of Global Self Storage, stated that the company aims to capitalize on opportunities in U.S. regions where there is limited supply growth and less competition from other professionally managed operators.

Winmill emphasized the company's focus on leveraging professional management techniques to enhance occupancy, revenue, and net operating income (NOI), which he believes positions the company well for long-term value creation for stockholders.

The company's management team is confident in their ability to continue executing their strategic business plan, which is regularly reviewed by the board of directors. This plan encompasses capital formation, debt and equity management, dividend policy, and maintaining optimal cash levels to support financial performance measures like funds from operations (FFO) and adjusted funds from operations (AFFO).

Global Self Storage owns and manages a portfolio of 13 self-storage properties across several states, offering secure and accessible storage options for both residential and commercial customers.

Investors can find additional details of the credit facility in the company's current report on Form 8-K filed with the U.S. Securities and Exchange Commission. This news is based on a press release statement from Global Self Storage.

In other recent news, Global Self Storage, Inc., a real estate investment trust, has rejected a buyout offer from Etude Storage Partners LLC. The proposal, dated May 7, 2024, suggested purchasing all outstanding shares of Global Self Storage for $6.15 each in cash, but was unanimously deemed insufficient by the company's Board of Directors.

The board believes that executing the company's strategic business plan will yield greater long-term value for shareholders than the proposed acquisition.

Etude Storage Partners, a self-storage investment firm, had publicly announced this proposal after two previous offers were also rejected by Global Self Storage's board. The firm, a shareholder of Global Self Storage for over five years, believed the acquisition would offer immediate liquidity and full value for shareholders' shares, exceeding the company's historical share price levels and prospects.

Global Self Storage's strategic plan includes funding acquisitions and expanding existing properties, with a focus on metrics such as capital formation, debt-to-equity ratios, dividend policy, and performance indicators like funds from operations and adjusted funds from operations. These recent developments highlight the company's commitment to its strategic initiatives over a sale.

InvestingPro Insights

As Global Self Storage, Inc. (NASDAQ:SELF) secures its financial flexibility with a renewed credit facility, the company's metrics provide a mixed bag for investors looking at its current valuation and growth trajectory.

With a market capitalization of $55 million USD and a P/E ratio of 24.49, the company sits at a valuation that suggests a modest premium relative to earnings. The revenue for the last twelve months as of Q1 2024 stands at $12.19 million USD, showing a slight uptick of 0.2%, indicating stable, albeit slow, top-line growth.

On the profitability front, Global Self Storage has managed to maintain a robust gross profit margin of 61.77% over the last twelve months as of Q1 2024. This is indicative of the company's ability to control costs and optimize operations within the competitive self-storage market. Moreover, the dividend yield as of mid-2024 is substantial at 5.94%, which could be attractive to income-focused investors.

An InvestingPro Tip points out that Global Self Storage operates with a moderate level of debt, which aligns with the company's strategic use of a revolving credit facility to maintain liquidity and fund growth initiatives. Moreover, the company's liquid assets exceed its short-term obligations, providing further reassurance of financial stability. For those looking for positive price momentum, Global Self Storage has delivered a strong return over the last three months, with a price total return of 16.81%.

For investors interested in a deeper dive into Global Self Storage's financial health and potential, there are additional InvestingPro Tips available. Discover more about the company's performance and strategies by visiting https://www.investing.com/pro/SELF. Plus, take advantage of our special offer using the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription. With this subscription, you'll gain access to a comprehensive list of InvestingPro Tips that can further inform your investment decisions.

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