Strong Revenue Growth Driven by Higher Rental Rates and Utility Rebilling Programs
Segments of Revenue
The revenue for the latest quarter was $7.9 million, up from the previous year. This was driven by various segments such as revenues from acquisitions ($1.3 million), non-same store stabilized properties ($4.6 million), development and lease-up properties ($1.3 million), and other sources ($0.7 million).
The company's strength lies in its ability to increase rental revenues, which contributed to a $11.8 million increase in same store property revenues. This was achieved through a 5.1% increase in average rental rates and higher other rental income. Additionally, the company also saw an increase of approximately $0.8 million related to income from bulk internet and other utility rebilling programs.
Despite the strong revenue growth, the company faced challenges in the form of increased property expenses. The same store property expenses increased by $5.6 million, primarily due to higher property insurance expense.
The company's dispositions/other property NOI decreased by approximately $2.4 million and $6.9 million for the three and nine months respectively, primarily due to an increase in same store property revenues which was partially offset by an increase in property expenses.
The company has demonstrated strong financial performance in the latest quarter, with significant growth in revenue driven by higher rental rates and utility rebilling programs. However, increased property expenses pose a challenge to the company's profitability. The decrease in dispositions/other property NOI is also a noteworthy aspect of the company's performance.