#self-storage #United States #Raleigh #Q1 2025 #10 Federal

10 Federal Achieves Record Q1 2025 Results and Expands Financial Capacity

In a significant reveal on May 7, 2025, 10 Federal, a trailblazer in the self-storage industry, showcased its exceptional performance for the first quarter of 2025. The company, known for its tech-driven approach, reported record-breaking results across its self-storage investment platforms: Self-Storage Acquisition Companies 3 and 4 (10FSSAC3 and 10FSSAC4). The company also secured a $100 million credit facility from First Horizon Bank to bolster its growth and acquisition strategies.

Key Performance Highlights

1. Impressive Revenue Growth

10FSSAC3 recorded a 9.0% increase in same-store revenue year-over-year, along with a remarkable 45.1% increase in Net Operating Income (NOI). This growth can be attributed to a strategic 12.8% reduction in operating expenses across its holdings of 15 self-storage facilities.

Meanwhile, 10FSSAC4 saw an even more significant 11.9% year-over-year revenue boost, alongside a 42.9% rise in NOI. The fund has effectively managed to reduce its operating expenses by 1.5%, demonstrating effective cost management across its 21 facilities, which encompass approximately 1.19 million net rentable square feet (NRSF). With continued capital deployment within its investment timeframe, 10 Federal is poised for sustained growth.

2. Strategic Development and Expansion Plans

10 Federal has ambitious development initiatives on the table. The company is executing its latest development offering on schedule and within budget. Over the past year, four new permit-ready sites were secured, of which three are under construction, and one is in pre-construction stages. These projects, consisting of Class A, multi-story, climate-controlled facilities, are strategically located in rapidly growing metropolitan areas, including:

• - Austin, TX
• - Savannah, GA
• - Charlotte, NC
• - Suburban Atlanta, GA

The first facility is expected to reach completion in Q4 2025, positioning 10 Federal advantageously to address the increasing demand for self-storage in these burgeoning markets.

3. Successful Expansion Projects

Additionally, 10 Federal recently concluded several significant expansion projects. Notable completions include the enhancements in Magnolia and Montgomery, TX, which collectively added over 100,000 sq. ft. and 650 new storage units to the region. These new units have begun leasing operations, thereby contributing positively to the fund's long-term performance.

4. Capital Management and Acquisitions

The recent $100 million credit facility from First Horizon Bank marks an important financial milestone for 10 Federal, enhancing its ability to fund ongoing expansion projects and new acquisitions related to 10FSSAC4. This substantial credit availability underscores the company's solid access to equity and debt markets, reflecting the confidence stakeholders have in its strategic direction.

5. Noteworthy Acquisition

In its ongoing strategic investment pursuits, 10 Federal successfully acquired a three-property self-storage portfolio in Keller, TX, featuring 177,353 NRSF. The strategic acquisition was consummated at a price significantly below the replacement value, bolstering 10 Federal's foothold in the Texas market and exemplifying its calculated investment strategy.

Leadership Insights

Andrew Capranos, the President of 10 Federal, shared, “Our impressive financial results stem from relentless optimization efforts leveraging automation and predictive data analytics, coupled with strict operational discipline. Our proprietary technology allows us to achieve substantial NOI growth while outpacing market trends even during period of economic challenges.”
Cliff Brad Minsley, Co-Founder of 10 Federal, reiterated the company’s commitment to a disciplined capital strategy that complements its technological advantages, positioning the company for continued growth and enhanced long-term value.

About 10 Federal

As one of the nation's largest owners and operators of fully automated self-storage facilities, 10 Federal operates over 95 sites across 10 states. By leveraging cutting-edge AI-driven technology, the company offers highly efficient management, reducing operating costs while providing 24/7 customer self-service options. Recognized as an Inc. 5000 fastest-growing American company and a Top 100 Operator by Inside Self-Storage (ISS), 10 Federal is dedicated to improving customer experience and generating strong returns for its investors through innovative solutions and real-time data analytics.

For further details, please visit 10 Federal.