Occupancy (Rentable Basis)
80.0%
43,351 SF occupied of 54,166 rentable SF | budget 90.0%
Occupancy Trend
-2.4 pts
82.4% (Jul) → 80.0% (Aug) — first monthly decline after nine straight months of gains
Net Absorption
-27 / +21
August / fiscal YTD units | -1,355 SF in August, +2,342 SF fiscal YTD
Rent / Occupied SF
$0.94
vs $1.26 budget — pricing to drive lease-up
August Revenue
$44,195
vs $68,863 budget (-35.8%)
August NOI
$7,674
vs $34,116 budget (-77.5%)
YTD NOI
$70,706
Budget $190,452 | -62.9%
YTD Net Cash Flow
-$48,991
NOI $70,706 minus debt service (interest) $119,697
YTD Controllable Expenses
3.9% under
$112,615 vs $117,166 budget — costs still well managed
Receivables
Clean
$2,748 total past due; nothing aged past 90 days
Manager Commentary (Westport)
Occupancy pulled back to 80.0% of rentable area in August, down from July's 82.4% peak — the first monthly decline after nine consecutive months of gains. The move was driven almost entirely by move-out volume: 44 units moved out in August against 17 move-ins, a net loss of 27 units and the largest single-month move-out count in the trailing 13 months. Rent per square foot improved slightly to $0.94 against a $1.26 budget as the 2026 budget continues to assume the property is already near full lease-up. No new competitive supply has entered the Corpus Christi market. Team stability continues to hold. Sponsor has asked Westport for the specific driver behind August's move-out spike (large-tenant departure, seasonal pattern, or rate-sensitivity) before drawing conclusions about the broader lease-up trajectory.
Highlights & Priorities
WATCH
August broke the lease-up streak: after nine straight months of occupancy gains (Nov 2025 through Jul 2026), August posted a net loss of 27 units (17 move-ins vs. 44 move-outs) — the largest single-month reversal since the October 2025 low. Fiscal-YTD absorption is still positive (+21 units / +2,342 SF), but sponsor is asking Westport to confirm whether this is a one-month event or an emerging trend before the H2 reforecast is finalized.
ACTION
Net cash flow after debt service is negative $48,991 YTD and the shortfall widened again this month (August alone was -$6,857). NOI has not yet caught up to the fixed interest expense on this loan while the property leases up. Sponsor is monitoring the shortfall against reserves and will revisit distribution timing once occupancy and NOI stabilize.
WATCH
Revenue and NOI remain well below the annual budget: the 2026 plan assumed 90%+ occupancy at $1.26/SF by August; the property is at 80.0% and $0.94. YTD NOI is $119,745 below budget as a result. Sponsor is finishing a realistic H2 reforecast with Westport.
FOCUS
Electricity is running 49.6% over YTD budget ($36,528 vs $24,412). A line-by-line usage and rate review is underway with Westport.
August Performance vs Budget
| Line Item | August Actual | August Budget | YTD Actual | YTD Budget | Status |
|---|
| Total Revenue | $44,195 | $68,863 | $336,475 | $447,655 | BELOW |
| Total Controllable OpEx | $15,630 | $14,498 | $112,615 | $117,166 | MIXED |
| — Repairs & Maintenance | $4,035 | $1,667 | $13,977 | $13,333 | OVER |
| Total Uncontrollable OpEx | $20,891 | $20,249 | $153,154 | $140,037 | OVER |
| Total Operating Expenses | $36,522 | $34,747 | $265,769 | $257,204 | OVER |
| Net Operating Income | $7,674 | $34,116 | $70,706 | $190,452 | BELOW |
| Debt Service (Interest) | $14,531 | $15,104 | $119,697 | $116,814 | — |
| Net Cash Flow (NOI − Debt Service) | -$6,857 | $19,012 | -$48,991 | $73,638 | NEGATIVE |
Full quarterly financial detail, including the balance sheet and loan schedule, will follow in the Q3 2026 investor report.
Trailing 12-Month Performance
| Month | Revenue | Rev Budget | NOI | NOI Budget | Occupancy (Area) |
|---|
| Sep 2025 | $26,882 | $40,350 | $9,246 | $12,988 | 68.5% |
| Oct 2025 | $32,498 | $42,118 | -$30,457 | $21,620 | 66.8% |
| Nov 2025 | $30,829 | $44,246 | $5,853 | $20,509 | 71.0% |
| Dec 2025 | $35,368 | $47,398 | -$80,849 | $25,693 | 74.9% |
| Jan 2026 | $33,539 | $38,546 | -$14,999 | $8,028 | 75.5% |
| Feb 2026 | $38,428 | $43,476 | $12,281 | $12,896 | 76.7% |
| Mar 2026 | $40,355 | $48,398 | $10,566 | $18,041 | 76.9% |
| Apr 2026 | $42,175 | $53,873 | $11,691 | $23,370 | 78.4% |
| May 2026 | $46,062 | $60,865 | $16,403 | $29,848 | 78.4% |
| Jun 2026 | $44,655 | $65,189 | $13,826 | $32,852 | 79.2% |
| Jul 2026 | $47,065 | $68,445 | $13,266 | $31,300 | 81.4% |
| Aug 2026 | $44,195 | $68,863 | $7,674 | $34,116 | 78.9% |
Dec 2025 NOI reflects an annual property tax accrual timing item, not a recurring operating loss. Occupancy shown on an all-in (total area) basis. August's occupancy dip reversed a nine-month upward trend — see commentary above.
Rent Roll by Unit Type — August 31, 2026
Unit-type detail as reported by SiteLink; the property manager does not report individual tenant records to ownership. 130 vacant units and 20 unrentable units are shown by size above, not folded into a single total. 2 complimentary units (100 SF) are excluded from this table.
Upcoming Lease Expirations
Not applicable — self-storage tenants rent month-to-month with no lease expiration schedule. Unit turnover for August: 17 move-ins, 44 move-outs, net -27 units (-1,355 SF). Fiscal YTD: 208 move-ins, 187 move-outs, net +21 units (+2,342 SF).
Delinquency & Collections
| Total past-due charges (current tenants) | $2,748 across 13 accounts |
| Delinquent >30 days | $561 across 4 accounts |
| Aged past 90 days | $0 — none |
| Units overlocked | 9 |
Aggregate figures only — full aging detail and account-level collections activity are covered in the quarterly report.
Cash Position
| Cash & cash equivalents (8/31/2026) | $445,493 |
| Distributions — current month | $0 |
| Distributions — year to date | $0 |
Full balance sheet and loan schedule detail will be included in the Q3 2026 investor report.