Global Self Storage Net Income Plunges 58% Amid Rising Costs, Market Losses

TL;DR

**SELF's Q3 earnings are a red flag; net income cratered 58% due to higher costs and market losses, making it a risky bet.**

AI Summary

Global Self Storage, Inc. (SELF) reported a significant decline in net income for the three and nine months ended September 30, 2025, despite a slight increase in total revenues. For the three months, net income dropped to $496,259 from $1,181,657 in the prior year, a decrease of 58%. For the nine months, net income fell to $1,715,627 from $2,039,337, a 15.9% reduction. Total revenues saw a modest increase, reaching $3,225,671 for the three months (up 0.8%) and $9,546,353 for the nine months (up 2.2%). This revenue growth was primarily driven by rental income, which rose to $3,099,499 for the quarter. Operating income decreased by 16.5% to $728,430 for the quarter, largely due to a 7.4% increase in property operations expenses to $1,239,432 and a 8.4% rise in general and administrative expenses to $826,220. A substantial unrealized loss on marketable equity securities of $98,704 for the quarter, compared to a gain of $499,283 in the prior year, significantly impacted the net income. The company's real estate assets, net, decreased to $52,910,114 from $53,925,409 at December 31, 2024, while cash and cash equivalents increased to $7,457,490 from $7,180,857.

Why It Matters

This filing reveals a concerning trend for Global Self Storage, Inc., with net income sharply declining despite revenue growth. For investors, the 58% drop in quarterly net income and the negative unrealized gain on marketable securities signal potential volatility and reduced profitability, impacting dividend sustainability and stock performance. Employees might face pressure if cost controls intensify, while customers could see rental rate adjustments as the company seeks to improve its bottom line. In the competitive self-storage market, where larger REITs like Public Storage and Extra Space Storage dominate, SELF's struggles could make it a less attractive investment, potentially leading to underperformance compared to peers.

Risk Assessment

Risk Level: high — The risk level is high due to the significant 58% decrease in net income for the three months ended September 30, 2025, falling to $496,259 from $1,181,657 in the prior year. This decline is exacerbated by a $98,704 unrealized loss on marketable equity securities, a stark reversal from a $499,283 gain in the same period last year, indicating market volatility exposure. Additionally, property operations expenses increased by 7.4% to $1,239,432, and general and administrative expenses rose by 8.4% to $826,220, signaling escalating operational costs.

Analyst Insight

Investors should exercise caution and consider reducing exposure to SELF given the sharp decline in net income and rising operational costs. A deeper dive into the company's strategy for mitigating market risk and controlling expenses is warranted before making further investment decisions.

Financial Highlights

debt To Equity

N/A

revenue

$9,546,353

operating Margin

N/A

total Assets

N/A

total Debt

N/A

net Income

$1,715,627

eps

N/A

gross Margin

N/A

cash Position

$7,457,490

revenue Growth

+2.2%

Revenue Breakdown

Key Numbers

• $496,259 — Net Income (Q3 2025) (58% decrease from Q3 2024)
• $1,181,657 — Net Income (Q3 2024) (Prior year's net income for comparison)
• $9,546,353 — Total Revenues (9M 2025) (2.2% increase from 9M 2024)
• $98,704 — Unrealized Loss on Securities (Q3 2025) (Significant negative swing from prior year's gain)
• $1,239,432 — Property Operations Expenses (Q3 2025) (7.4% increase from Q3 2024)
• $826,220 — General and Administrative Expenses (Q3 2025) (8.4% increase from Q3 2024)
• $52,910,114 — Real Estate Assets, Net (Sep 30, 2025) (Decrease from $53,925,409 at Dec 31, 2024)
• 11,337,720 — Shares Outstanding (Nov 6, 2025) (Slight increase from 11,292,772 at Dec 31, 2024)

Key Players & Entities

• Global Self Storage, Inc. (company) — registrant of the 10-Q filing
• NASDAQ (regulator) — exchange where SELF common stock is registered
• SEC (regulator) — Securities and Exchange Commission
• $496,259 (dollar_amount) — net income for three months ended September 30, 2025
• $1,181,657 (dollar_amount) — net income for three months ended September 30, 2024
• $1,715,627 (dollar_amount) — net income for nine months ended September 30, 2025
• $2,039,337 (dollar_amount) — net income for nine months ended September 30, 2024
• $98,704 (dollar_amount) — unrealized loss on marketable equity securities for three months ended September 30, 2025
• $499,283 (dollar_amount) — unrealized gain on marketable equity securities for three months ended September 30, 2024
• $1,239,432 (dollar_amount) — property operations expenses for three months ended September 30, 2025

FAQ

Risk Factors

• Unrealized Losses on Marketable Securities [medium — financial]: The company experienced a significant unrealized loss of $98,704 on marketable equity securities in Q3 2025, a sharp reversal from a gain of $499,283 in the prior year. This volatility directly impacted net income, contributing to the substantial decrease.
• Rising Property Operations Expenses [medium — operational]: Property operations expenses increased by 7.4% to $1,239,432 in Q3 2025 compared to the prior year. This rise in operational costs, without a commensurate increase in revenue, pressured operating income.
• Increasing General and Administrative Expenses [medium — operational]: General and administrative expenses rose by 8.4% to $826,220 in Q3 2025. This increase, coupled with higher property operations expenses, contributed to a 16.5% decline in operating income.
• Declining Net Income Despite Revenue Growth [high — financial]: Net income for Q3 2025 plummeted by 58% to $496,259, while nine-month net income fell 15.9% to $1,715,627. This occurred despite modest revenue increases, indicating margin compression and/or increased non-operating expenses.
• Decrease in Net Real Estate Assets [low — financial]: Net real estate assets decreased to $52,910,114 as of September 30, 2025, from $53,925,409 at December 31, 2024. While not a drastic change, it warrants monitoring for potential asset disposition or depreciation trends.

Industry Context

The self-storage industry generally exhibits resilience, often performing well during economic downturns as individuals and businesses downsize. However, it is also subject to competition from new entrants and existing operators expanding their footprints. Trends include technology adoption for customer convenience and operational efficiency.

Regulatory Implications

As a REIT, Global Self Storage, Inc. must adhere to specific IRS regulations to maintain its tax-advantaged status. Changes in real estate or tax laws could impact its operations and profitability. Compliance with state and local zoning and operational regulations for storage facilities is also critical.

What Investors Should Do

1. Monitor expense growth closely.
2. Analyze the impact of investment portfolio volatility.
3. Evaluate the sustainability of revenue growth.

Glossary

REIT

Real Estate Investment Trust. A company that owns, operates, or finances income-generating real estate. REITs provide a way for individual investors to earn dividends from real estate investments. (Global Self Storage, Inc. operates as a REIT, which has specific regulatory and tax implications.)

Accrual Basis of Accounting

A method of accounting where revenues are recognized when earned and expenses are recognized when incurred, regardless of when cash is exchanged. (This is the standard accounting method used by the company, ensuring revenues and expenses are recorded in the period they relate to, not necessarily when cash changes hands.)

Marketable Equity Securities

Securities such as stocks that are easily bought or sold on a public exchange and are held by a company as investments. (Fluctuations in the value of these securities, as seen with the unrealized loss in Q3 2025, can significantly impact the company's net income.)

Unrealized Loss

A loss that has been incurred on an investment but has not yet been realized because the investment has not been sold. (This directly impacted the company's net income in Q3 2025, highlighting the risk associated with its investment portfolio.)

Year-Over-Year Comparison

Compared to the prior year's comparable periods, Global Self Storage, Inc. has seen a modest increase in total revenues (2.2% for nine months) driven by rental income. However, this top-line growth has been overshadowed by a significant decline in net income, down 58% for the quarter and 15.9% for the nine months. This is largely attributable to increased operating expenses (property operations up 7.4%, G&A up 8.4%) and a substantial negative swing in unrealized gains on marketable securities, which turned a gain into a loss.

Key Financial Figures

• $0.01 — nge on which registered Common Stock, $0.01 par value per share SELF NASDAQ I

Filing Documents

• self-20250930.htm (10-Q) — 2093KB
• self-ex19_1.htm (EX-19.1) — 66KB
• self-ex31_1.htm (EX-31.1) — 15KB
• self-ex31_2.htm (EX-31.2) — 15KB
• self-ex32_1.htm (EX-32.1) — 9KB
• self-ex32_2.htm (EX-32.2) — 9KB
• 0001193125-25-272274.txt ( ) — 7204KB
• self-20250930.xsd (EX-101.SCH) — 871KB
• self-20250930_htm.xml (XML) — 1088KB

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION 5 Item 1.

Financial Statements (Unaudited)

Financial Statements (Unaudited). 5 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations. 21 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk. 34 Item 4.

Controls and Procedures

Controls and Procedures. 34

– OTHER INFORMATION

PART II – OTHER INFORMATION 35 Item 1. Legal Proceedings. 35 Item 1A. Risk Factors. 35 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds. 35 Item 3. Defaults Upon Senior Securities. 35 Item 4. Mine Safety Disclosures. 35 Item 5. Other Information. 35 Item 6. Exhibits. 35 Exhibit Index 36

SIGNATURES

SIGNATURES 37 2 Certain information presented in this report may contain "forward-looking statements" within the meaning of the federal securities laws including the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning our plans, objectives, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, plans or intentions relating to acquisitions and other information that is not historical information. In some cases, forward-looking statements can be identified by terminology such as "believes," "plans," "intends," "expects," "estimates," "may," "will," "should," or "anticipates" or the negative of such terms or other comparable terminology, or by discussions of strategy. All forward-looking statements made by the Company involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of the Company, which may cause the Company's actual results to be materially different from those expressed or implied by such statements. We may also make additional forward-looking statements from time to time. All such subsequent forward-looking statements, whether written or oral, by us or on our behalf, are also expressly qualified by these cautionary statements. All forward-looking statements, including without limitation, management's examination of historical operating trends and estimates of future earnings, are based upon our current expectations and various assumptions. Our expectations, beliefs and projections are expressed in good faith and we believe there is a reasonable basis for them, but there can be no assurance that management's expectations, beliefs and projections will result or be achieved. All forward-looking statements apply only as of the date made. Except as required by law, we undertake no obligation to publicly update or revise forward-looking statements which may be ma

– FINANC IAL INFORMATION

PART I – FINANC IAL INFORMATION

Financi al Statements

Item 1. Financi al Statements. GLOBAL SELF STORAGE, INC. CONSOLIDATED BALANCE SHEETS (Unaudited) September 30, 2025 December 31, 2024 Assets Real estate assets, net $ 52,910,114 $ 53,925,409 Cash and cash equivalents 7,457,490 7,180,857 Restricted cash 87,095 29,204 Investments in securities 2,473,490 2,608,987 Accounts receivable 119,509 142,408 Prepaid expenses and other assets 956,898 719,351 Line of credit issuance costs, net 137,179 195,970 Interest rate cap 441 18,717 Goodwill 694,121 694,121 Total assets $ 64,836,337 $ 65,515,024 Liabilities and equity Note payable, net $ 15,931,055 $ 16,356,582 Accounts payable and accrued expenses 1,970,796 1,720,765 Total liabilities 17,901,851 18,077,347 Commitments and contingencies Stockholders' equity Preferred stock, $ 0.01 par value: 50,000,000 shares authorized; no shares outstanding — — Common stock, $ 0.01 par value: 450,000,000 shares authorized; 11,337,720 shares and 11,292,772 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively 113,377 112,927 Additional paid in capital 49,803,438 49,559,986 Accumulated deficit ( 2,982,329 ) ( 2,235,236 ) Total stockholders' equity 46,934,486 47,437,677 Total liabilities and stockholders' equity $ 64,836,337 $ 65,515,024 See notes to unaudited consolidated financial statements. 5 GLOBAL SELF STORAGE, INC. CONSOLIDATED STATEMENTS OF OPERATIONS and COMPREHENSIVE INCOME (Unaudited) For the Three Months Ended September 30, For the Nine Months Ended September 30, 2025 2024 2025 2024 Revenues Rental income $ 3,099,499 $ 3,070,871 $ 9,162,139 $ 8,967,371 Other property related income 107,911 111,618 328,789 323,957 Management fees and other income 18,261 17,787 55,425 52,026 Total revenues 3,225,671 3,200,276 9,546,353 9,343,354

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 1. ORGANIZATION Global Self Storage, Inc. (the "Company," "we," "our," "us") is a self-administered and self-managed Maryland real estate investment trust ("REIT") that owns, operates, manages, acquires, and redevelops self-storage properties ("stores" or "properties") in the United States. As of September 30, 2025 , through its wholly owned subsidiaries, the Company owned and/or managed thirteen self-storage properties in Connecticut, Illinois, Indiana, New York, Ohio, Pennsylvania, South Carolina, and Oklahoma. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited consolidated financial statements of the Company are presented on the accrual basis of accounting in accordance with accounting standards generally accepted in the United States of America ("GAAP") for interim financial information, and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they may not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (including normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the nine months ended September 30, 2025 are not necessarily indicative of the results that may be expected for the year ending December 31, 2025. The consolidated balance sheet as of December 31, 2024 has been derived from the Company's audited financial statements as of that date, but does not include all of the information and footnotes required by GAAP for complete financial statements. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2024 . Cash, Cash Equivalents, and Restricted Cash The Company's cash is deposited with financial institutions located throughout

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