Investor update for the 906 Southmore lease-up. February showed continued traction in revenue, leasing, and customer demand, with the property making tangible progress toward stabilization even as reported NOI continues to reflect the normal overhead and debt load of an asset still in ramp-up mode.
| Line Item | Actual | Budget | Variance | Read |
|---|---|---|---|---|
| Total Revenue | $34,580.73 | $33,635.16 | +$945.57 | Ahead |
| Self-Storage Revenue | $32,685.05 | $30,687.12 | +$1,997.93 | Ahead |
| Ancillary Revenue | $1,895.68 | $2,948.04 | ($1,052.36) | Soft |
| Controllable OPEX | $16,216.88 | $17,641.46 | $1,424.58 favorable | Below budget |
| Uncontrollable OPEX | $28,503.88 | $25,255.64 | +$3,248.24 | Above budget |
| Total OPEX | $44,720.76 | $42,897.10 | +$1,823.66 | Above budget |
| NOI | ($10,140.03) | ($9,261.94) | ($878.09) | Near plan |
| Interest Expense | $26,875.00 | $30,208.33 | $3,333.33 favorable | Below budget |
| Net Income (Loss) | ($43,382.09) | ($44,157.27) | $775.18 favorable | Still negative |
The property continues to build occupancy from a very low starting point, with the performance report citing 44.8% occupancy versus 6.9% a year earlier. The owner-statement package separately references 57.68% occupancy on a financial-report basis, which likely reflects a different occupancy definition or reporting basis. For investor communication, it is most helpful to use the operating performance report for the leasing narrative and the owner statement as the accounting source.
| Metric | February 2026 | Comment |
|---|---|---|
| Collections | $35,177 | +238% YoY |
| Move-ins | 32 | Strong leasing month |
| Move-outs | 22 | Net growth remained positive |
| Net absorption | +10 units | Positive |
| Effective rate | $0.63/SF | +43% YoY |
| Rent increases | 51 | $30.10 average increase |
| Retained increase | $1,098 | Embedded pricing traction |
| Attrition | 17.6% | Normal lease-up watch item |
Cash on hand ended February at $32,761.89. While liquidity is still being built, the balance sheet profile remains consistent with a property in active lease-up, and improving occupancy should continue to support a stronger cash position over time.
| T12 Metric | Value | Interpretation |
|---|---|---|
| NOI | ($242,937.59) | Reflects pre-stabilization lease-up period |
| Interest Expense | $291,756.89 | Debt carry remains meaningful during ramp-up |
| Cash Flow Before Equity | ($402,018.80) | Consistent with an asset still absorbing fixed costs |
| Equity Contributions | $236,548.76 | Provided support through lease-up |
| Total Cash Flow | ($165,470.04) | Improvement opportunity as occupancy grows |
| T12 DSCR (NOI / Interest) | (0.83x) | Early-stage lease-up profile |
Pasadena Southmore continued to make meaningful lease-up progress in February, with revenue modestly ahead of budget and operating momentum supported by strong collections, positive net absorption, and improving achieved rates. While reported NOI is still reflecting the normal cost structure of a property in ramp-up, management’s operating report indicates leasing velocity is on track and building into the stronger seasonal demand window. Because the company moved from cash to accrual accounting in 2026, January included some carry-over items from 2025; accordingly, February offers a cleaner and more encouraging view of current run-rate performance.