Global Self Storage Reports Second Quarter and Six-Month 2018 Results

"Q2 marked a pivotal moment in Global Self Storage's history, as we achieved full dividend coverage from FFO and AFFO for both the second quarter and first six months of 2018," said President and Chief Executive Officer of the Company, Mark C. Winmill. "This milestone result was largely driven by continued strong topline growth coupled with our success in keeping operating expenses relatively low, which is enabling us to scale the business gradually. Our same-store revenues and NOI are continuing to show impressive growth, up 8.6% and 5.7% for the second quarter and up 10.4% and 6.1% for the first six months of 2018. This is largely due to the continuation of our business strategy of focusing on secondary and tertiary markets in the Midwest, Northeast, and Mid-Atlantic that have traditionally been underserved by self storage and have muted new development activity as well as high barriers to entry. This quarter's positive results were also driven by the successful lease-up activity from our Bolingbrook and Merrillville expansions, which have both experienced substantial increases in square foot occupancy just months after their completion, in addition to higher rental rates per leased square foot across all of our properties due to our focused revenue rate management programs."

"We are still in the early stages of the Company's growth, but our results for the past few quarters suggest that we're making steady progress toward our objective of scaling the business through FFO growth. Along with driving continued revenue and NOI growth in our current portfolio through our revenue rate management program and disciplined cost approach, we will also be looking to acquire underperforming but attractive properties that we can improve and ultimately generate higher FFO. Our proven platform of strong cash-flow generating properties shows that we can continue to take advantage of the ownership fragmentation in this market, where nearly 75% of all operators only manage one or two properties and lack the proper management and resources to grow their portfolios."

"So, in summary, our results for the quarter and six-month period represent a solid milestone in the Company's roadmap for higher FFO and AFFO growth, as well as achieving and maintaining continued dividend coverage. By continuing to execute on our strategy of focusing on underserved markets with high barriers to entry and high quality tenants, we believe we can meaningfully scale the business over the long run and drive more accretive returns for our shareholders."

The Company's second quarter total revenues increased 9.4%, total expenses increased 1.0%, and operating income increased 70.4%. The significant increase in operating income was driven primarily by the expansion of the Company's Bolingbrook, IL and Merrillville, IN properties, as well as higher rental and occupancy rates. For the second quarter of 2018, net income totaled $395,000 compared to net income of $18,000 for the second quarter of 2017.

Same-Store Results for the Second Quarter of 2018 (1)

The Company's same-store portfolio for the second quarter of 2018 included ten of its eleven stores, representing 87.4% of store NOI for the quarter.

For the second quarter of 2018, same-store revenues increased 8.6% to $1.8 million compared with $1.7 million for the second quarter in 2017. The increase was driven primarily by additional income from rental income growth and increased insurance participation, as well as the successful lease-up of the Company's Bolingbrook expansion.

Same-store operating expenses in the second quarter of 2018 totaled $762,000 compared with $676,000 in the second quarter of 2017. The increase was primarily driven by higher store level employment costs, property taxes, and administrative expenses, which were partially offset by reduced advertising and marketing costs.

For the second quarter of 2018, same-store NOI increased 5.7% to $1.0 million compared with $992,000 for the second quarter of 2017. The increase was due primarily to an increase in same-store revenues which were partially offset by an increase in same-store operating expenses.

Same-store occupancy at June 30, 2018 decreased 80 basis points to 92.7% from 93.5% at June 30, 2017.

Same-store occupancy at June 30, 2018 decreased 80 basis points to 92.7% from 93.5% at June 30, 2017.

(1) A reconciliation of net income to same-store net operating income is provided later in this release, entitled "Reconciliation of GAAP Net Income to Same-Store Net Operating Income."

Combined Same-Store and Non Same-Store Results for the Second Quarter of 2018 (2)

For the second quarter of 2018, Combined store revenues increased 9.4% to $2.0 million compared with $1.8 million for the second quarter of 2017. The increase was driven primarily by a 0.9% increase in net leased square footage and by the results of the Company's revenue rate management program of raising existing tenant rates. The increase in net leased square footage, as a result of the Company's Merrillville store expansion, is currently expected to positively affect Combined store revenues for the remainder of 2018.

Combined store operating expenses in the second quarter of 2018 totaled $821,000 compared with $721,000 in the second quarter of 2017. The increase was driven primarily by higher store level employment costs, property taxes, and administrative expenses, which were partially offset by reduced advertising and marketing costs.

For the second quarter of 2018, Combined store NOI increased 6.6% to $1.2 million compared with $1.1 million for the second quarter of 2017. The increase was due primarily to an increase in Combined store revenues which were partially offset by an increase in Combined store operating expenses.

(2) A reconciliation of net income to combined same-store and non same-store net operating income is provided later in this release, entitled "Reconciliation of GAAP Net Income to Combined Same-Store and Non Same-Store Net Operating Income."

Company Operating Results for the Second Quarter of 2018

Net income totaled approximately $395,000, or $0.05 per share, in the second quarter of 2018 compared to a net income of $18,000, or $0.00 per share, for the second quarter of 2017.

General and administrative expenses totaled $456,000 in the second quarter of 2018 compared with $465,000 in the prior quarter and $438,000 in the second quarter of 2017. The year-over-year increase was primarily driven by increased expenses related to the establishment and ongoing administration of the Company's 2017 Equity Incentive Plan, in addition to higher employment costs.

Business development costs for the second quarter of 2018 totaled $10,000 compared with $8,000 for the second quarter of 2017.

Interest expense for the second quarter of 2018 was $220,000, which was consistent with the amount reported for the second quarter of 2017.

FFO and AFFO for the Second Quarter of 2018

Six Months Ended June 30, 2018

The Company's total revenues for the six months ended June 30, 2018 increased 10.7%, total expenses increased 3.9%, and operating income increased 62.4%. The significant increase in operating income was driven primarily by the expansion of the Company's Bolingbrook, IL and Merrillville, IN properties, as well as higher rental and occupancy rates. For the six months ended June 30, 2018, net income totaled $455,000 compared to net income of $4,000 for the same year-ago period.

Same-Store Results for the Six Months Ended June 30, 2018

The Company's same-store portfolio for the six months ended June 30, 2018 included ten of its eleven stores, representing 88.8% of store NOI for the period.

For the six months ended June 30, 2018, same-store revenues increased 10.4% to $3.6 million compared with $3.2 million for the six months ended June 30, 2017. The increase was driven primarily by additional income from rental income growth and increased insurance participation, as well as the successful lease-up of the Company's Bolingbrook store expansion.

Same-store operating expenses for the six months ended June 30, 2018 totaled $1.5 million compared with $1.3 million for the six months ended June 30, 2017. The increase was primarily driven by higher store level employment costs, property taxes, and administrative expenses, which were partially offset by reduced advertising and marketing costs.

For the six months ended June 30, 2018, same-store NOI increased 6.1% to $2.1 million compared with $1.9 million for the six months ended June 30, 2017. The increase was due primarily to an increase in same-store revenues which were partially offset by an increase in same-store operating expenses.

Same-store occupancy for the six months ended June 30, 2018 decreased 80 basis points to 92.7% from 93.5% for the six months ended June 30, 2017.

Combined Same-Store and Non Same-Store Results for the Six Months Ended June 30, 2018

For the first six months ended June 30, 2018, Combined store revenues increased 10.7% to $4.0 million compared with $3.6 million for the first six months ended June 30, 2017. The increase was driven primarily by a 0.9% increase in net leased square footage and by the results of the Company's revenue rate management program of raising existing tenant rates. The increase in net leased square footage, as a result of the Company's Merrillville store expansion, is currently expected to positively affect Combined store revenues for the remainder of 2018.

Combined store operating expenses for the six months ended June 30, 2018 totaled $1.7 million compared with $1.4 million for the six months ended June 30, 2017. The increase was driven primarily by higher store level employment costs, property taxes, and administrative expenses, which were partially offset by reduced advertising and marketing costs.

For the six months ended June 30, 2018, Combined store NOI increased 5.7% to $2.3 million compared with $2.2 million for the six months ended June 30, 2017. The increase was due primarily to an increase in Combined store revenues which were partially offset by an increase in Combined store operating expenses.

Company Operating Results for the Six Months Ended June 30, 2018

Net income totaled approximately $455,000, or $0.06 per fully diluted share, for the six months ended June 30, 2018 compared to a net income of $4,000, or $0.00 per fully diluted share, for the six months ended June 30, 2017.

General and administrative expenses totaled $922,000 in the six months ended June 30, 2018 compared with $849,000 in the six months ended June 30, 2017. The year-over-year increase was primarily driven by increased expenses related to the establishment and ongoing administration of the Company's 2017 Equity Incentive Plan, in addition to higher employment costs.

Business development costs for the six months ended June 30, 2018 totaled $10,000 compared with $14,000 for the six months ended June 30, 2017.

"Q2 marked a pivotal moment in Global Self Storage's history, as we achieved full dividend coverage from FFO and AFFO for both the second quarter and first six months of 2018," said President and Chief Executive Officer of the Company, Mark C. Winmill. "This milestone result was largely driven by continued strong topline growth coupled with our success in keeping operating expenses relatively low, which is enabling us to scale the business gradually. Our same-store revenues and NOI are continuing to show impressive growth, up 8.6% and 5.7% for the second quarter and up 10.4% and 6.1% for the first six months of 2018. This is largely due to the continuation of our business strategy of focusing on secondary and tertiary markets in the Midwest, Northeast, and Mid-Atlantic that have traditionally been underserved by self storage and have muted new development activity as well as high barriers to entry. This quarter's positive results were also driven by the successful lease-up activity from our Bolingbrook and Merrillville expansions, which have both experienced substantial increases in square foot occupancy just months after their completion, in addition to higher rental rates per leased square foot across all of our properties due to our focused revenue rate management programs."

"We are still in the early stages of the Company's growth, but our results for the past few quarters suggest that we're making steady progress toward our objective of scaling the business through FFO growth. Along with driving continued revenue and NOI growth in our current portfolio through our revenue rate management program and disciplined cost approach, we will also be looking to acquire underperforming but attractive properties that we can improve and ultimately generate higher FFO. Our proven platform of strong cash-flow generating properties shows that we can continue to take advantage of the ownership fragmentation in this market, where nearly 75% of all operators only manage one or two properties and lack the proper management and resources to grow their portfolios."

"So, in summary, our results for the quarter and six-month period represent a solid milestone in the Company's roadmap for higher FFO and AFFO growth, as well as achieving and maintaining continued dividend coverage. By continuing to execute on our strategy of focusing on underserved markets with high barriers to entry and high quality tenants, we believe we can meaningfully scale the business over the long run and drive more accretive returns for our shareholders."

The Company's second quarter total revenues increased 9.4%, total expenses increased 1.0%, and operating income increased 70.4%. The significant increase in operating income was driven primarily by the expansion of the Company's Bolingbrook, IL and Merrillville, IN properties, as well as higher rental and occupancy rates. For the second quarter of 2018, net income totaled $395,000 compared to net income of $18,000 for the second quarter of 2017.

Same-Store Results for the Second Quarter of 2018 (1)

The Company's same-store portfolio for the second quarter of 2018 included ten of its eleven stores, representing 87.4% of store NOI for the quarter.

For the second quarter of 2018, same-store revenues increased 8.6% to $1.8 million compared with $1.7 million for the second quarter in 2017. The increase was driven primarily by additional income from rental income growth and increased insurance participation, as well as the successful lease-up of the Company's Bolingbrook expansion.

Same-store operating expenses in the second quarter of 2018 totaled $762,000 compared with $676,000 in the second quarter of 2017. The increase was primarily driven by higher store level employment costs, property taxes, and administrative expenses, which were partially offset by reduced advertising and marketing costs.

For the second quarter of 2018, same-store NOI increased 5.7% to $1.0 million compared with $992,000 for the second quarter of 2017. The increase was due primarily to an increase in same-store revenues which were partially offset by an increase in same-store operating expenses.

Same-store occupancy at June 30, 2018 decreased 80 basis points to 92.7% from 93.5% at June 30, 2017.

Same-store occupancy at June 30, 2018 decreased 80 basis points to 92.7% from 93.5% at June 30, 2017.

(1) A reconciliation of net income to same-store net operating income is provided later in this release, entitled "Reconciliation of GAAP Net Income to Same-Store Net Operating Income."

Combined Same-Store and Non Same-Store Results for the Second Quarter of 2018 (2)

For the second quarter of 2018, Combined store revenues increased 9.4% to $2.0 million compared with $1.8 million for the second quarter of 2017. The increase was driven primarily by a 0.9% increase in net leased square footage and by the results of the Company's revenue rate management program of raising existing tenant rates. The increase in net leased square footage, as a result of the Company's Merrillville store expansion, is currently expected to positively affect Combined store revenues for the remainder of 2018.

Combined store operating expenses in the second quarter of 2018 totaled $821,000 compared with $721,000 in the second quarter of 2017. The increase was driven primarily by higher store level employment costs, property taxes, and administrative expenses, which were partially offset by reduced advertising and marketing costs.

For the second quarter of 2018, Combined store NOI increased 6.6% to $1.2 million compared with $1.1 million for the second quarter of 2017. The increase was due primarily to an increase in Combined store revenues which were partially offset by an increase in Combined store operating expenses.

(2) A reconciliation of net income to combined same-store and non same-store net operating income is provided later in this release, entitled "Reconciliation of GAAP Net Income to Combined Same-Store and Non Same-Store Net Operating Income."

Company Operating Results for the Second Quarter of 2018

Net income totaled approximately $395,000, or $0.05 per share, in the second quarter of 2018 compared to a net income of $18,000, or $0.00 per share, for the second quarter of 2017.

General and administrative expenses totaled $456,000 in the second quarter of 2018 compared with $465,000 in the prior quarter and $438,000 in the second quarter of 2017. The year-over-year increase was primarily driven by increased expenses related to the establishment and ongoing administration of the Company's 2017 Equity Incentive Plan, in addition to higher employment costs.

Business development costs for the second quarter of 2018 totaled $10,000 compared with $8,000 for the second quarter of 2017.

Interest expense for the second quarter of 2018 was $220,000, which was consistent with the amount reported for the second quarter of 2017.

FFO and AFFO for the Second Quarter of 2018

Six Months Ended June 30, 2018

The Company's total revenues for the six months ended June 30, 2018 increased 10.7%, total expenses increased 3.9%, and operating income increased 62.4%. The significant increase in operating income was driven primarily by the expansion of the Company's Bolingbrook, IL and Merrillville, IN properties, as well as higher rental and occupancy rates. For the six months ended June 30, 2018, net income totaled $455,000 compared to net income of $4,000 for the same year-ago period.

Same-Store Results for the Six Months Ended June 30, 2018

The Company's same-store portfolio for the six months ended June 30, 2018 included ten of its eleven stores, representing 88.8% of store NOI for the period.

For the six months ended June 30, 2018, same-store revenues increased 10.4% to $3.6 million compared with $3.2 million for the six months ended June 30, 2017. The increase was driven primarily by additional income from rental income growth and increased insurance participation, as well as the successful lease-up of the Company's Bolingbrook store expansion.

Same-store operating expenses for the six months ended June 30, 2018 totaled $1.5 million compared with $1.3 million for the six months ended June 30, 2017. The increase was primarily driven by higher store level employment costs, property taxes, and administrative expenses, which were partially offset by reduced advertising and marketing costs.

For the six months ended June 30, 2018, same-store NOI increased 6.1% to $2.1 million compared with $1.9 million for the six months ended June 30, 2017. The increase was due primarily to an increase in same-store revenues which were partially offset by an increase in same-store operating expenses.

Same-store occupancy for the six months ended June 30, 2018 decreased 80 basis points to 92.7% from 93.5% for the six months ended June 30, 2017.

Combined Same-Store and Non Same-Store Results for the Six Months Ended June 30, 2018

For the first six months ended June 30, 2018, Combined store revenues increased 10.7% to $4.0 million compared with $3.6 million for the first six months ended June 30, 2017. The increase was driven primarily by a 0.9% increase in net leased square footage and by the results of the Company's revenue rate management program of raising existing tenant rates. The increase in net leased square footage, as a result of the Company's Merrillville store expansion, is currently expected to positively affect Combined store revenues for the remainder of 2018.

Combined store operating expenses for the six months ended June 30, 2018 totaled $1.7 million compared with $1.4 million for the six months ended June 30, 2017. The increase was driven primarily by higher store level employment costs, property taxes, and administrative expenses, which were partially offset by reduced advertising and marketing costs.

For the six months ended June 30, 2018, Combined store NOI increased 5.7% to $2.3 million compared with $2.2 million for the six months ended June 30, 2017. The increase was due primarily to an increase in Combined store revenues which were partially offset by an increase in Combined store operating expenses.

Company Operating Results for the Six Months Ended June 30, 2018

Net income totaled approximately $455,000, or $0.06 per fully diluted share, for the six months ended June 30, 2018 compared to a net income of $4,000, or $0.00 per fully diluted share, for the six months ended June 30, 2017.

General and administrative expenses totaled $922,000 in the six months ended June 30, 2018 compared with $849,000 in the six months ended June 30, 2017. The year-over-year increase was primarily driven by increased expenses related to the establishment and ongoing administration of the Company's 2017 Equity Incentive Plan, in addition to higher employment costs.

Business development costs for the six months ended June 30, 2018 totaled $10,000 compared with $14,000 for the six months ended June 30, 2017.

Interest expense for the six months ended June 30, 2018 was $440,000, which was consistent with the amount reported for the six months ended June 30, 2017.

FFO totaled approximately $977,000, or $0.13 per share, while AFFO totaled approximately $1.0 million, or $0.13 per share, for the six months ended June 30, 2018. This represents total FFO and AFFO growth of 7.9% and 10.3%, respectively, for the six months ended June 30, 2018 versus the same time period in 2017.

FFO and AFFO for the Six Months Ended June 30, 2018

On June 1, 2018, the Company declared a quarterly dividend of $0.065 per share, consistent with the quarterly dividend from a year ago and last quarter.

At June 30, 2018, cash, cash equivalents, and marketable equity securities totaled $3.9 million compared with $3.7 million at December 31, 2017.

For more information on the Company's quarterly results, including financial tables, please refer to the Company's Quarterly Report on Form 10-Q for the second quarter of 2018 filed with the Securities and Exchange Commission today.

Global Self Storage, Inc. is a self-administered and self-managed REIT that owns, operates, manages, acquires, develops and redevelops self storage properties in the United States. The Company's self storage properties are designed to offer affordable, easily accessible and secure storage space for residential and commercial customers. It currently owns and operates, through its wholly owned subsidiaries, eleven self storage properties located in Connecticut, Illinois, Indiana, New York, Ohio, Pennsylvania, and South Carolina. For more information, go to http://ir.globalselfstorage.us/ or visit our self storage customer site at www.globalselfstorage.us.

This press release contains certain non-GAAP financial measures. FFO and FFO per share are non-GAAP measures defined by the National Association of Real Estate Investment Trusts ("NAREIT") and are considered helpful measures of REIT performance by REITs and many REIT analysts. NAREIT defines FFO as a REIT's net income, excluding gains or losses from sales of property, and adding back real estate depreciation and amortization. FFO and FFO per share are not a substitute for net income or earnings per share. FFO is not a substitute for GAAP net cash flow in evaluating our liquidity or ability to pay dividends, because it excludes financing activities presented on our statements of cash flows. In addition, other REITs may compute these measures differently, so comparisons among REITs may not be helpful. However, the Company believes that to further understand the performance of its stores, FFO should be considered along with the net income and cash flows reported in accordance with GAAP and as presented in the Company's financial statements.

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