#10 Federal Storage #self-storage #United States #Raleigh #Automated Operations

10 Federal Storage Expands Its Reach

10 Federal Storage is making waves in the self-storage industry with promising results for 2024. The company has added a total of 27 new properties to its portfolio, which includes seven acquired locations and 20 under third-party management. Amidst a market where many self-storage operators are experiencing flat or negative growth, 10 Federal has reported exceptional same-store net operating income (NOI) which is significantly higher than industry averages.

Navigating a Challenging Market

The self-storage sector has seen some turbulence recently, yet 10 Federal Storage has demonstrated resilience and growth. While other publicly traded self-storage Real Estate Investment Trusts (REITs) faced stagnant performance, 10 Federal used a technology-driven model to achieve a remarkable year of growth. In particular, their normalized same-store NOI experienced a surge of 29.9% year-over-year, showcasing the efficacy of their operations.

By utilizing advanced technology, 10 Federal has set itself apart from traditional competitors. The company employs a strategic blend of automation and data analytics to optimize their business operations.

A Closer Look at Performance Metrics

In the fourth quarter of 2024, the Self-Storage Offering 4 (10FSSAC4) reported a strong 10.4% increase in year-over-year total revenue. While this offering is still in the deployment phase, it has shown promising results that are indicative of successful management practices across their assets. Additionally, the Self-Storage Opportunistic Offering 1 (10FOppCo1) has been a noteworthy contributor, raising over $35 million in funding just within the last four months of 2024. All signs point to a robust capital deployment strategy, with developments currently underway in key markets like Dripping Springs, TX, and Charlotte, NC.

The Power of Predictive Analytics

What truly sets 10 Federal apart is their integration of data science into their operational framework. With enhanced predictive analytics, the company can identify lucrative submarkets and optimize pricing strategies accordingly. According to Brad Minsley, Co-Founder, “10 Federal has built a proprietary system that identifies the best submarkets, optimizes pricing, and ensures maximum efficiency at every facility.” This data-centric approach not only allows for smarter acquisitions but also a significant enhancement in overall portfolio performance.

Expansion and Development Initiatives

10 Federal shows no sign of slowing down as plans for strategic growth persist. In addition to the properties acquired in North Carolina and Texas, expansion projects spanning over 105,000 net rentable square feet (NRSF) in Magnolia and Montgomery, TX, are on track for completion in early 2025. This adds significant capacity in advance of what is anticipated to be a peak leasing season.

The company has further indicated that its third-party management platform experienced substantial growth, onboarding nine new properties in January 2025. This surge illustrates increasing demand from property owners looking for more efficient management solutions.

Emphasis on Operational Efficiencies

10 Federal's growth is not solely attributed to property expansion; considerable focus has been directed towards improving operational efficiencies. Through effective marketing strategies, the company has driven down costs associated with customer acquisition and improved occupancy rates, enhancing financial performance without increased marketing expenditure.

Recent restructuring of their call center operations led to reduced staffing costs while maintaining an excellent customer experience. Furthermore, through centralized operations, 10 Federal has significantly bettered payroll efficiency, achieving lower per-property labor costs as they scale.

Conclusion

In summary, 10 Federal Storage stands out as a leader in the self-storage domain, showcasing impressive growth amid industry challenges. By leveraging technology, data analytics, and a commitment to operational excellence, the company is not only expanding its physical footprint but also setting new efficiency benchmarks in the self-storage market. Recognized for its innovative approach, 10 Federal is poised for an impressive trajectory in 2025 and beyond, making it an intriguing player to watch in the realm of self-storage.