U-Haul Investors Watch: Why Capacity Vs. Occupancy Metrics Are Crucial in Self-Storage Finance

On January 6, 2026, U-Haul Holding Company announced its participation in the KeyBanc Capital Markets Self-Storage Investor Forum scheduled for January 8 in New York City. The company is clearly positioning its self-storage business in front of capital market participants, which signals its intent to highlight that segment’s growing importance within its portfolio.

Recent financial disclosures show U-Haul’s self-storage portfolio has expanded materially. As of September 30, 2025, the company owned 831 storage stores across North America with approximately 71,167 thousand rentable square feet, growing from 758 stores and ~64.5 million square feet a year earlier. However, occupancy rates have declined: the average monthly unit-occupancy rate dropped to ~77.2 % from ~80.5 % year-over-year and end-period occupancy dropped to ~74.4 %. The year to fiscal March 31, 2025 data similarly show occupancy dropping to ~79.2 % average monthly (vs. 82.1 % prior year) and end-of-period occupancy at ~77.0 %. These occupancy declines coincide with capacity expansion: in fiscal 2024 U-Haul added ~4.3 million square feet via new development and ~1.2 million via acquisitions, with the pipeline for active and pending projects now ~7.8 + 9.2 million square feet, respectively.

Revenue growth in the self-storage segment has been positive (~11-12 %) in fiscal 2024, and trailing nine-month revenue in the most recent reporting period reached ~$667 million. Geographic variation is notable: states such as California command high revenue per rentable square foot (e.g., over $21/ft²), while Texas and others are materially lower (e.g., $14-15/ft²). Occupancy by state varies from ~70 % in Pennsylvania to mid-80s in states like Georgia, Michigan, etc.

From a strategic investor perspective, U-Haul faces three major tensions. First, growth versus utilization: expansion is boosting capacity but occupancy is under pressure, potentially hurting margins. Second, depreciation and capital intensity: increasing fleet (trucks, trailers) and real estate investments are adding depreciation, which has already dampened net earnings. Third, pricing/rate discipline: in high-cost states with high revenue per square foot, U-Haul may have levers to raise rates; in low-rate markets, competition and supply may cap rate growth.

Open questions going into the investor forum include: What is management’s forecast for occupancy trends? Will rate growth offset the occupancy pressure? What is the expected contribution (incremental NOI / EBITDA) from the active and pending development pipeline? Also, how will rising interest rates, supply increases, and macro headwinds shape capex, depreciation, and free cash flow for the self-storage segment?