Self-Storage Assets | Institutional Portfolio View
Period Ending: December 31, 2025
| Property | Location | Units | Rentable SF | Occ % | NOI (Dec) | YTD NOI |
|---|---|---|---|---|---|---|
| 906 Southmore | Pasadena, TX | 767 | 99,034 | 41.1% | ($115,403) | ($269,907) |
| Portfolio Total | 99,034 | 41.1% | ($115,403) | ($269,907) | ||
Current Portfolio: Single self-storage asset (906 Southmore Avenue, Pasadena TX) representing 100% of portfolio metrics.
Asset Status: Lease-up property opened January 2025, currently 12 months into operations.
Key Milestone: Achieved 41% occupancy in first year, exceeding budgeted stabilization curve of 32% by 9 percentage points.
| Property | Metric | Actual | Budget | Variance ($) | Variance (%) | Severity |
|---|---|---|---|---|---|---|
| 906 Southmore | NOI (Dec) | ($115,403) | ($10,226) | -$105,177 | -1,029% | HIGH |
| Real Property Taxes | $90,604 | $1,093 | +$89,511 | +8,190% | HIGH | |
| Package Insurance | $23,248 | $8,333 | +$14,915 | +179% | HIGH |
Primary Driver: December NOI variance driven by annual billing of real property taxes ($90,604) and insurance ($23,248) captured in single month. Combined impact: +$104,426 vs budget.
YTD Context: Year-to-date NOI variance is only -$5,321 (-2.0%), demonstrating monthly timing issue rather than structural underperformance.
Revenue Overperformance: Total revenue exceeded budget by +$5,005 (+20.1%), partially offsetting uncontrollable expense overruns.
| Property | Risk Factor | Current Status | Risk Level |
|---|---|---|---|
| 906 Southmore | NOI vs Budget | OFF TRACK (Dec: -1,029% var) | HIGH |
| DSCR | Negative T12 DSCR: (0.74) | HIGH | |
| Occupancy | 41% in lease-up (Year 1) | MODERATE |
Lease-Up Phase: All "high risk" indicators are typical for lease-up properties. Asset is performing ahead of budgeted stabilization curve (41% actual vs 32% budgeted occupancy).
Debt Service: Interest-only loan extended through January 2027 at 7.25% provides runway for continued lease-up without principal amortization pressure.
Equity Support: 2026 cash call of $338,096 planned to fund operations through stabilization.
Positive Indicators: Revenue exceeding budget (+20.1%), controllable OPEX below budget (-13.0% YTD), occupancy ahead of plan (+9 percentage points).
| Property | Total Units | Occ % (Units) | Occ % (SF) | MoM Change | Net Absorption (Dec) |
|---|---|---|---|---|---|
| 906 Southmore | 767 | 40.8% | 41.1% | +2.3% units / +1.6% SF | +18 units (YTD) |
| Portfolio Weighted Avg | 767 | 40.8% | 41.1% | +2.3% / +1.6% | +18 units |
December Activity: Move-ins: 3 | Move-outs: 6 | Net absorption (MTD): -3 units
Rented Area Increase: +1,550 SF in December, indicating favorable unit mix shift toward larger units despite negative unit net absorption.
Year 1 Performance: 41% occupancy achieved in 12 months (Jan 2025 opening), representing strong lease-up velocity in competitive Pasadena market.
2026 Strategy: Additional 10x10 unit conversions planned to expand rentable unit count and capture demand.
| Property | Receipts (Dec) | 30d+ Delinquency | % of GPR | Status |
|---|---|---|---|---|
| 906 Southmore | $33,080 | $273 | 0.4% | NORMAL |
| Portfolio Total | $33,080 | $273 | 0.4% | NORMAL |
Low Delinquency Risk: 30-day+ delinquency of $273 is well below both red-flag thresholds (< $1,000 AND < 2% of GPR).
Total Delinquency Breakdown: $2,687 total (3.8% of GPR), with 81% in 11-30 day bucket (lower risk).
Receipts Collected (Dec): $33,080 including rent ($25,601), fees ($2,281), insurance ($3,994), and merchandise ($713).
| Property | Cash | Debt Balance | Rate | Maturity | T12 DSCR |
|---|---|---|---|---|---|
| 906 Southmore | $32,290 | $5,000,000 | 7.25% | Jan 2027 | (0.74) |
| Portfolio Total | $32,290 | $5,000,000 | — | — | (0.74) |
| Metric | Portfolio Total |
|---|---|
| T12 NOI | ($269,907) |
| T12 Interest Expense | ($281,194) |
| T12 Principal Payments | $0 |
| T12 Total Debt Service | ($281,194) |
| T12 DSCR | (0.74) |
| T12 Levered Cash Flow (after debt & admin) | ($528,635) |
| T12 Equity Contributions | $560,925 |
| Net Cash After Equity | $32,290 |
Loan Structure: $5M interest-only loan at 7.25%, extended 12 months through January 2027. New monthly payment: $30,208.
2026 Cash Call: $338,096 equity contribution planned to support continued lease-up operations and bridge to stabilization.
DSCR Context: Negative DSCR expected during lease-up. Asset is performing ahead of underwritten stabilization curve (41% vs 32% budgeted occupancy).
Liquidity Runway: Current cash of $32,290 plus planned 2026 equity provides adequate runway through stabilization target of 85-90% occupancy.