U-Haul continues to grow its self-storage segment, with revenues climbing 17 percent during the second quarter.
Parent company Amerco reported total self-storage revenue of $62 million during its second fiscal quarter ended September 30. That is up $9.1 million from the same period last year.
Storage revenue made up 6.4 percent of the company’s total revenue of $962.9 million—the majority, $698 million, comes from the rental of self-moving equipment like trucks and trailers.
Over the last year U-Haul has added 2.7 million square feet of self-storage space through acquisition and development, growing to a total of 22 million square feet.
The operator reported an average monthly occupancy rate of 84 percent, down one basis point from the same time last year.
Jason Berg, principal financial officer of Amerco, pointed out during the company’s recent conference call that 60 percent of its new self-storage space was sourced from acquisitions that had an existing occupancy of about 68 percent at the time of sale.
“The other 40 percent of the new storage growth came from our own development and that was added into the system at 0 percent occupancy,” Berg said, “These new additions serve to dilute our reported occupancy results.”