Amerco, the parent company of U-Haul, continues to see growth in its self-storage business.

Self-storage revenue totaled $53.5 million during the last three months of 2014, the company’s third fiscal quarter. That was up 16 percent compared with the same period a year earlier.

Revenue from the company’s self-storage operations made up 7.5 percent of Amerco’s consolidated revenue of $706.4 million. Sixty-eight percent of its revenue comes from rental of trucks and moving equipment.

The Phoenix, AZ-based company posted net profit of $303.2 million during the quarter.

Expanding storage

U-Haul continued to bolster its self-storage portfolio through acquisition and conversion. The company added about 5,000 storage units during the quarter, or about 300,000 square feet of rentable space.

As of Dec. 31, the company owned 19.6 million square feet of self-storage, more than 10 percent above the same time a year earlier. U-Haul’s average monthly occupancy rate at the end of the third quarter was 81.1 percent, up 1.1 percent from a year earlier.

Joe Shoen, chairman, president and CEO of Amerco, told Wall Street analysts that the company likely would decrease acquisition activity and instead focus on conversions and ground-up development at sites it already owns.

Build and convert

“We have a bunch of build-and-convert in the pipeline right now,” Shoen said.

The company spent $268.3 million on real estate acquisitions, construction and renovations during the first nine months of its current fiscal year.

“Honestly, it takes nearly two years from when you make a decision and when you really open,” Shoen said.

Photo courtesy of Flickr/Greg Brock

Alexander Harris