Shares of Global Self Storage, Inc. (SELF Quick QuoteSELF - Free Report) have lost 1.7% since the company reported earnings for the quarter ended March 31, 2026, against the S&P 500 Index’s 1.4% gain over the same period. Over the past month, the stock lost 0.8%, underperforming the S&P 500’s 6.8% gain.

Global Self Storage’s Earnings Snapshot

Global Self Storage reported first-quarter 2026 total revenues of $3.2 million, up 1.5% year over year from $3.1 million, driven primarily by higher occupancy levels and increases in existing tenant rental rates. Net income declined 14.1% to $0.5 million, or $0.04 per diluted share, from $0.6 million, or $0.05 per diluted share, in the year-ago quarter.

Same-store revenues rose 1.5% to $3.2 million from $3.1 million, while same-store net operating income (NOI) fell 3.9% to $1.8 million from $1.9 million as operating expenses climbed. Funds from operations (FFO) decreased 12.6% to $852,563, or $0.08 per diluted share, from $975,343, or $0.09 per diluted share. Adjusted FFO (AFFO) fell 11% to $0.9 million, or $0.08 per diluted share, from $1.1 million, or $0.10 per diluted share.

SELF’s Occupancy and Tenant Metrics Remain Strong

SELF highlighted sector-leading occupancy trends during the quarter. Same-store occupancy increased 100 basis points year over year to 93.1% as of March 31, 2026, from 92.1% as of March 31, 2025, while average tenant duration of stay reached a record 3.6 years, up from 3.5 years a year earlier. Management said these trends reflected strong customer retention, digital marketing initiatives and pricing optimization efforts.

Across the owned portfolio, several properties posted occupancy above 90%, including Rochester, NY, at 97.6%, Millbrook, NY, at 97%, and Dolton, IL, at 94.6%. The company’s managed property in Edmond, OK, recorded occupancy of 96.8%, up from 93.5% in the prior-year period.

Global Self Storage also reported that its average customer review rating exceeded 4.9 out of 5 stars at quarter-end, up from 4.8 stars in the prior-year period. CEO Mark C. Winmill said customer service initiatives and referral-driven demand contributed to strong occupancy performance.

Expenses Pressure Global Self Storage’s Operating Performance

Despite higher revenues and occupancy, profitability was pressured by rising costs. Total operating expenses increased 8.3% year over year to $2.6 million from $2.4 million. Property operating expenses climbed 10% to $1.3 million from $1.2 million, mainly due to higher employment costs and rising real estate property taxes. General and administrative expenses rose 9.2% to $0.9 million from $0.8 million, partly due to one-time professional fees related to amendments to Global Self Storage’s equity incentive plan.

Operating income declined 20.9% to $0.6 million from $0.7 million in the prior-year quarter. Interest expense decreased to $203,878 from $223,769 due to a lower principal loan balance outstanding.

Management noted that employment expenses increased because of the timing of routine hiring and departures, though SELF expects growth in these costs to return to lower historical levels. Property tax expenses rose due to higher assessment valuations across portions of its portfolio, reflecting broader industry trends.

SELF’s Revenue Management and Marketing Efforts

Management credited Global Self Storage’s proprietary revenue rate management program and competitor pricing analysis tools for helping maintain strong occupancy while increasing rates for existing tenants. The company said its digital marketing strategy and Internet data-scraping tools enabled it to keep move-in pricing competitive and maximize store-level revenue.

Same-store annualized revenue per leased square foot increased 0.5% to $16.35 from $16.27 a year earlier. The number of leased storage units rose 1.2% year over year to 5,852 from 5,780.

Global Self Storage said it continues to expect future rental income growth to come from a combination of tenant rent increases, higher move-in rental rates, lower promotional discounts and occupancy gains. However, management cautioned that inflationary pressures, economic uncertainty and changing customer move-out patterns could affect demand trends going forward.

Global Self Storage’s Balance Sheet and Capital Resources

As of March 31, 2026, SELF had $24.5 million in capital resources, including $7.4 million in cash, cash equivalents and restricted cash, $2.3 million in marketable securities and $14.8 million available under its revolving credit facility.

Global Self Storage maintained its quarterly dividend at $0.0725 per share, representing an annualized dividend rate of $0.29 per share. Management said the balance sheet remains well-positioned to support acquisitions, joint ventures and expansion projects in markets with limited supply growth and less professional competition.

SELF’s Other Developments

During January, Global Self Storage completed the conversion of certain student housing space into approximately 2,400 leasable square feet of climate-controlled storage units at its Lima, OH, property. Following the conversion, the property totaled 763 units and 94,931 leasable square feet. Occupancy at the property improved to 91.1% by quarter-end from approximately 90.6% immediately following completion of the project.