Global Self Storage, Inc.
Annual Report 2015

Plain-text annual report

W W W . G L O B A L S E L F S T O R A G E I N C . C O M 2015 A N N U A L R E P O R T • D E C E M B E R 3 1 , 2 0 1 5 PORTFOLIO ANALYSIS December 31, 2015 December 31, 2015 TOP TEN HOLDINGS 1 2 3 4 5 6 7 8 9 SSG Bolingbrook LLC SSG Rochester LLC SSG Dolton LLC SSG Merrillville LLC SSG Sadsbury LLC SSG Summerville I LLC SSG Summerville II LLC Extra Space Storage, Inc. CubeSmart 10 Public Storage Top ten holdings comprise approximately 87% of total assets. Holdings are subject to change. The above portfolio information should not be considered as a recommendation to purchase or sell a particular security and there is no assurance whether or not any securities will be retained. 1 Annual Report 2015 GLOBAL SELF STORAGE, INC. TO OUR STOCKHOLDERS February 15, 2016 Dear Fellow Stockholders: It is a pleasure to welcome the new stockholders who have made their investment in Global Self Storage, Inc. (NASDAQ: SELF) (the “Company”), formerly Self Storage Group, Inc., since our last report. The Company is a self-administered and self- managed real estate investment trust (“REIT”) focused on the ownership, operation, acquisition, development and redevel- opment of self storage facilities. Our self storage facilities are designed to offer affordable, easily accessible and secure stor- age space for residential and commercial customers. The Com- pany currently owns and operates seven self storage properties located in New York, Pennsylvania, Illinois, Indiana, and South Carolina. As previously reported in our press release on January 19, 2016, the Company changed its name to Global Self Storage, Inc., changed its Securities and Exchange Commission (“SEC”) registration from an investment company to an operating com- pany, and uplisted to the NASDAQ Capital Market (“NASDAQ”). Global Self Storage Financial Update We grew our top-line results by increasing same-store revenues by 11.6% for the year ended December 31, 2015 versus the year ended December 31, 2014. Same-store cost of opera- tions was relatively flat and decreased slightly by 0.2% over the same periods. Same-store funds from operations in- creased by 21.3% over the same periods as a result of the in- crease in year over year revenues and steady hold on operating expenses. Corporate overhead decreased by 9.1% over the same periods. Going forward, although we expect some cor- porate overhead expense reductions associated with our dis- continued registration as an investment company, we expect to gain a number of new expenses related to, among other things, the Company’s new reporting requirements and com- pliance with the Sarbanes-Oxley Act of 2002. Our results were driven by, among other things, our internet marketing initiatives which helped our overall average occu- pancy approach the 90% mark. Also contributing to our strong results were our customer service efforts which were essential in building local brand loyalty resulting in powerful referral and word-of-mouth market demand for our storage units and serv- ices. Another major contributing factor to our results was our revenue rate management program which helped increase our total annualized revenue per leased square foot by 15% year over year. All of the Company’s employees contributed to the results, which are summarized below. Revenues Costs of Operations Funds from Operations Sq. ft. occupancy (cid:24)(cid:22)(cid:1)(cid:26)(cid:23)(cid:6)(cid:23)(cid:24)(cid:25)(cid:20)(cid:18)(cid:26)(cid:23)(cid:12)(cid:18)(cid:20)(cid:12)(cid:26)(cid:18)(cid:25)(cid:19)(cid:26)(cid:24)(1) Year ended December 31, 2015 2015 2014 $4,439,407 $3,979,492 1,800,982 2,638,425 1,804,818 2,174,674 Variance $459,915 (3,836) 463,751 87.9% 87.7% 0.2% Revenue per Leased Sq Ft $ 10.40 $ 9.04 $ 1.36 Percentage Difference 11.6% (0.2%) 21.3% 0.3% 15.0% (1) The table above is not a full and complete financial presentation of the Company’s results in accordance with U.S. generally accepted accounting principles (“GAAP”), but is rather a Non-GAAP summary of certain of its self storage properties’ financial highlights. For example, certain expense and income items such as “Corporate overhead expense”, “Securities dividends and interest income” and “Realized gain (or losses) on securities” are not included, presented or discussed in this table. Funds From Operations (“FFO”) is a Non-GAAP financial metric and is defined by the National Association of Real Estate Investment Trusts, Inc. as net income com- puted in accordance with GAAP, excluding gains or losses on sales of operating properties and impairment write downs of depreciable real estate assets, plus de- preciation and amortization and after adjustments to record unconsolidated partnerships and joint ventures on the same basis. The Company believes that to further understand the Company’s performance of its self storage properties, FFO should be considered along with the reported net income and cash flows in accordance with GAAP, as presented in the Company’s financial statements. FFO does not represent cash generated from operating activities determined in accordance with GAAP, and should not be considered as an alternative to net income as an indication of the Company’s performance, as an alternative to net cash flow from operating ac- tivities as a measure of liquidity, or as an indicator of the Company’s ability to make cash distributions. Revenues and revenues per leased sq. ft. include rental revenue from climate-controlled and traditional units and outside parking. GLOBAL SELF STORAGE, INC. Annual Report 2015 2 We have been actively reviewing a number of property and portfolio acquisition candidates and have been working to fur- ther develop and expand our current properties. Importantly, at our Sadsburyville, PA facility in 2015, we completed con- struction of a state-of-the-art, all climate-controlled two story storage building adding 16,756 leasable square feet featur- ing a number of unique drive-up, climate-controlled units. This expansion has been well received by the local community. As of December 31, 2015, 82% of the first floor and 50% of the entire building have been leased, since the completion of con- struction. As previously reported, we are moving forward with site work and construction of the expansion project in Boling- brook, IL which, when completed, will add a little over 45,000 leasable square feet of climate-controlled and traditional stor- age units. The project has a budget of $2,200,000, which equates to an all-in projected cost of approximately $49 per square foot and a completion date of mid-2016. Global Self Storage Operational Progress As of December 31, 2015, the Company’s ownership of its self President’s Letter storage facilities comprised more than 80% of its net assets, with the balance of net assets comprised of investment secu- rities and a money market fund. All together, these facilities total 485,579 net rentable square feet and offer 3,813 storage units. In addition to traditional and climate-controlled units, many of the facilities feature both covered and outside auto/RV/boat storage. As of December 31, 2015, the average overall square foot oc- cupancy for all of the Company’s facilities combined was 87.9%, up from 87.7% on December 31, 2014, and up from 79.3% on December 31, 2013. During 2015, our self storage properties experienced the usual late spring and early sum- mer seasonal boost in overall occupancy along with a slight occupancy decrease during late fall and early winter. We be- lieve that through our various marketing initiatives, we are con- tinuing to attract high quality, long term tenants who we expect will be storing with us for years. Currently, our average tenant duration of stay is over two years. (cid:15)(cid:21)(cid:20)(cid:3)(cid:22)(cid:21)(cid:23)(cid:24)(cid:26)(cid:21)(cid:14)(cid:23)(cid:24)(cid:25)(cid:20)(cid:18)(cid:22)(cid:15)(cid:26)(cid:23)(cid:14)(cid:22)(cid:2)(cid:19)(cid:21)(cid:19)(cid:25)(cid:19)(cid:26)(cid:24) Year ended December 31, 2015 Property Address Year Opened Number of Units Net Leasable Square Feet (1) Dec. 31, 2015 Square Foot Occupancy % Dec. 31, 2014 Square Foot Occupancy % SSG BOLINGBROOK LLC SSG DOLTON LLC SSG MERRILLVILLE LLC SSG ROCHESTER LLC SSG SADSBURY LLC SSG SUMMERVILLE I LLC SSG SUMMERVILLE II LLC (cid:25)(cid:20)(cid:25)(cid:22)(cid:21) 296 North Weber Road Bolingbrook, IL 60440 14900 Woodlawn Avenue Dolton, IL 60419 6590 Broadway Merrillville, IN 46410 2255 Buffalo Road Rochester, NY 14624 21 Aim Boulevard Sadsburyville, PA 19369 1713 Old Trolley Road Summerville, SC 29485 900 North Gum Street Summerville, SC 29483 1997 2007 2005 2010 2006 1990 1997 497 649 507 650 699 557 254 66,250 86,725 71,420 68,022 79,004 72,700 41,458 93.9% 93.2% 95.6% 87.1% 80.2% 77.9% 88.2% 85.5% 92.2% 92.5% 88.3% 94.8% 71.2% 92.5% (cid:8)(cid:9)(cid:17)(cid:5)(cid:8) (cid:4)(cid:17)(cid:10)(cid:9)(cid:10)(cid:16)(cid:11) (cid:17)(cid:16)(cid:7)(cid:11)(cid:13) (cid:17)(cid:16)(cid:7)(cid:16)(cid:13) (1) Includes outside auto/RV/boat storage space of approximately 13,000 square feet at SSG Sadsbury LLC, 9,900 square feet at SG Dolton LLC, 11,170 square feet at SSG Merrillville LLC and 5,300 square feet at SSG Summerville II LLC. During the first half of 2015, SSG Sadsbury LLC added 219 all-climate controlled storage units comprising 16,756 leasable square feet. Also during the first half of 2015, SSG Bolingbrook LLC eliminated 98 parking spaces (32,700 square feet) to accommodate the new buildings construction project which, when complete, will add some 320 climate-controlled and traditional storage units total- ing 45,000 leasable square feet to the facility. Approximately 42% of our total available units are climate-controlled, 54% are traditional and 4% are parking. 3 Annual Report 2015 GLOBAL SELF STORAGE, INC. Global Self Storage Marketing and Customer Service Our storage facilities in the Northeast, Mid-Atlantic and Mid- West are located in densely populated and high traffic areas near major roads and highways. All of our properties display prominent road signage and most feature LED marquee boards describing the property features and move-in rent spe- cials. Our facilities are located in areas with strong zoning laws and attentive planning boards which make it difficult for our competition to develop new facilities near ours. As we evaluate potential self-storage facilities, we seek properties in areas with these high barriers to entry. From a marketing perspective, we have developed the brand, “Global Self Storage,” and now use it in all of our on-site sig- nage, online advertising and other marketing materials. We have also launched our new corporate website www.Global- SelfStorage.us, where prospective customers can learn about the features of each facility and view high resolution images. The site also allows customers to pay their rent online. We continue to develop the Global Self Storage online pres- ence through advertising and search engine optimization. We solicit customer reviews for posting to the “Testimonials” sec- tion of our website and encourage others to view these testi- monials, as most customers give us the top rating of 5 stars. We have found that our most reliable source of new tenants is through referrals of current tenants. Attracting high quality, long-term tenants is the top priority for our company, and we strongly believe in tenant quality over tenant quantity. In our marketing efforts, we have seen tremen- dous success in our referral marketing program, as nothing seems to be as productive as asking our satisfied customers to recommend Global Self Storage to their family, friends, and colleagues. We also believe our property managers’ attention to detail – maintaining security, cleanliness and attentive cus- tomer service – is essential to attracting high quality tenants. Each of our Global Self Storage facilities features a rental and payment center kiosk available 24 hours a day, seven days a week, where prospective tenants can rent a unit and current tenants can pay their rent. All of our facilities have on-site prop- erty managers who are committed to delivering the finest cus- tomer service. Our customer call center handles telephone inquiries from current and prospective tenants whenever our property managers are not available. They can respond to ques- tions about our facilities and storage features, and book reser- vations. Our top priorities are delivering convenience and high quality customer service to our storage customers, as well as maintaining clean and secure self storage facilities at all times. Also of importance, we have implemented an ongoing revenue management program which includes regular internet data scraping of local competitors’ prices. We do this in order to maintain our competitive market price advantage for our var- ious sized storage units at all of our Global Self Storage prop- erties. This program helps us maximize our occupancy rates, which improves our revenue and net operating income. Self Storage Market Report Throughout 2015 and into 2016, the self storage industry con- tinued to enjoy positive trends, which included: • All time high occupancies reported by the public REITs • Pricing power leading to rental rate growth • Reduced move-in discounting • New development completion increasing local competition in select markets • Per capita usage of storage is growing • Continued ownership consolidation • Growing difference in operational management expertise between the larger and more sophisticated operators and the rest of the field Demand for self storage space was sustained by the recover- ing job and housing markets. All-time high occupancy rates led to higher asking rental rates in many markets. Rental rate dis- counting (ex. “$1 Move-In”, “First Month Free”) was widely re- ported to be reduced due to higher occupancies. Permits for the new development of self storage facilities have increased considerably over previous years even though there continued to be a relatively low number of newly developed self storage properties coming on line. Over time this new supply of com- petition may have a significant impact on the industry. How- ever, for the foreseeable future we expect that the aforementioned positive trends, especially the rise in per capita demand for storage space, should continue to support positive absorption across most markets. We have noted a strong trend towards ownership consolidation led by the REITs and other well-capitalized owner/operators. This has been accompanied by a greater gulf developing between the more sophisticated operators [large and small] and those without the resources or interest in utilizing the various technology advantages available GLOBAL SELF STORAGE, INC. Annual Report 2015 4 to maximize occupancies and revenues, control expenses and maximize net operating income. Positive operational trends continued to attract new investors into the self storage real property market. Capitalization rates have compressed for high quality Class A institutional size properties, traditionally in demand by REITs and private equity groups. This phenomenon of many players seeking and bid- ding up relatively few available Class A assets has sent yield seeking investors down the quality scale to capture higher re- turns in stabilized assets in one-off markets and Class B and Class C assets located in secondary and tertiary markets. We expect these trends to continue through 2016. As such, we in- tend to continue seeking acquisition opportunities in these secondary and tertiary markets and to apply our strict stan- dards in evaluating all new opportunities. Also, as previously mentioned, we intend to expand some of our self storage fa- cilities with new construction where economically feasible. In addition to the completed expansion at Global Self Storage in Sadsburyville, PA and the new construction project at Global Self Storage in Bolingbrook, IL, we intend to explore the feasi- bility of profitable expansion at the Merrillville facility. Risk Factors Stockholders and potential investors should note that there are a number of risks related to the Company’s business. These include, but are not limited to, risks related to the op- erating performance of the Company’s self storage facilities and risks associated with the Company’s real estate invest- ments. There are also risks related to the Company’s organi- zation and structure and risks related to the Company’s tax status as a REIT. The foregoing is qualified by reference to a more complete statement of applicable risks contained in this report under “Policies and Risks-Risk Factors” and in the Company’s Form 10 filed with the SEC on December 14, 2015, which is avail- able at www.globalselfstorageinc.com. Strategy and Returns The Company’s strategy in 2015 continued to be to own and operate self storage facilities and seek self storage facility ac- quisition opportunities. The Company’s strategy resulted in a total return for the year ended December 31, 2015 based on net asset value of 19.00% and a total return based on market price value of 10.86%. Distributions for the year ended De- President’s Letter cember 31, 2015 totaled $0.26 per share. The Company’s net asset value per share was $5.70 and its share closing market price was $3.75. Investment return and value will vary and shares of the Company may subsequently be worth more or less than original cost. Distribution Policy and Tax Treatment The current distribution policy is to provide investors with a stable quarterly distribution out of current income, supple- mented by realized capital gains, and to the extent necessary, paid in capital. As noted above for the year ended December 31, 2015, distributions paid totaled $0.26 per share. The ma- jority of these distributions were comprised of net investment income and net capital gains and the remainder return of cap- ital. The estimated components of each quarterly distribution, which may include a return of capital, were provided to stock- holders of record in a notice accompanying these distributions. Stockholder Rights Plan On January 28, 2016, the Company announced that its Board of Directors, after careful consideration and based on the rec- ommendation of a special committee comprised solely of the independent directors, by the unanimous vote of the directors present, adopted a stockholder rights plan (the “Rights Plan”). The Rights Plan is designed to ensure that all Company stock- holders receive fair and equal treatment in the event of an un- solicited attempt to acquire the Company. The adoption of the Rights Plan is intended to deter partial and “two step” tender offers or other coercive takeover tactics, and to prevent an ac- quirer from gaining control of the Company without offering a fair price to all of the Company’s stockholders. The Rights Plan was not adopted in response to any known offers for the Com- pany and is similar to stockholder rights plans adopted by many other companies. To implement the Rights Plan, the Board of Directors declared a dividend distribution of one right for each outstanding share of Company common stock, par value $.01 per share, to hold- ers of record of the shares of common stock at the close of business on January 29, 2016. Each right entitles the regis- tered holder to purchase from the Company one one-thou- sandth of a share of preferred stock, par value $.01 per share. The rights will be distributed as a non-taxable dividend and will expire on January 29, 2026. The rights will be evidenced by the underlying Company common stock, and no separate preferred 5 Annual Report 2015 GLOBAL SELF STORAGE, INC. President’s Letter Company Website The Company’s website, www.GlobalSelfStorageInc.com, pro- vides investors with investment information, news, and other material regarding the Company. You are invited to use this re- source to learn more about the Company. Information about the Company’s self storage facilities can be found at www.GlobalSelfStorage.us. As always, we are grateful to the Company’s long standing stockholders for their continuing support. Sincerely, Mark C. Winmill President stock purchase rights certificates will presently be distributed. The rights to acquire preferred stock are not immediately ex- ercisable and will become exercisable only if a person or group, other than certain exempt persons, acquires or com- mences a tender offer for 9.8% or more of the Company’s common stock. If a person or group, other than an Exempt Person (as defined in the Rights Plan agreement), acquires or commences a ten- der offer for 9.8% or more of the Company’s common stock, each holder of a right, except the acquirer, will be entitled, sub- ject to the Company’s right to redeem or exchange the right, to exercise, at an exercise price of $12, the right for one one- thousandth of a share of the Company’s newly-created Series A Participating Preferred Stock, or the number of shares of Company common stock equal to the holder's number of rights multiplied by the exercise price and divided by 50% of the mar- ket price of the Company’s common stock on the date of the occurrence of such an event. The Company’s Board of Direc- tors may terminate the Rights Plan at any time or redeem the rights, for $0.01 per right, at any time before a person acquires 9.8% or more of the Company’s common stock. A summary of the Rights Plan is available on the Company’s website at www.globalselfstorageinc.com and a copy of the Rights Plan agreement was filed with the SEC as an exhibit to a current report on Form 8-K dated January 29, 2016. GLOBAL SELF STORAGE, INC. Annual Report 2015 6 SCHEDULE OF PORTFOLIO INVESTMENTS Member Equity Interest 100% 100% 100% 100% 100% 100% 100% WHOLLY OWNED SUBSIDIARIES (81.88%) Real Estate Owned (81.82%) Self Storage Properties (81.82%) SSG Bolingbrook LLC (a) (b) SSG Dolton LLC (a) (b) SSG Merrillville LLC (a) (b) SSG Rochester LLC (a) (b) SSG Sadsbury LLC (a) (b) SSG Summerville I LLC (a) (b) SSG Summerville II LLC (a) (b) Total real estate owned (Cost $27,725,000) 100% Other (0.06%) SSG Operations LLC (a) (b) (Cost $24,573) Total wholly owned subsidiaries (Cost $27,749,573) Shares 2,700 24,000 12,000 6,000 15,000 15,000 15,000 COMMON STOCKS (7.34%) Real Estate Investment Trusts (7.34%) Diversified (1.58%) Public Storage Industrial (5.76%) CubeSmart Extra Space Storage, Inc. Sovran Self Storage, Inc. Total common stocks (Cost $ 1,360,102) PREFERRED STOCKS (2.79%) Real Estate Investment Trusts (2.79%) Industrial (0.93%) CubeSmart 7.75%, Series A Retail (1.86%) Pennsylvania Real Estate Investment Trust, 8.25%, Series A Realty Income Corp., 6.625%, Series F Total preferred stocks (Cost $1,087,753) OTHER (0%) RMR Asia Pacific Fund Fractional shares (b) (Cost $ 0) 2 December 31, 2015 Financial Statements June 30, 2014 Value $ 6,100,000 5,900,000 5,700,000 5,950,000 5,700,000 3,400,000 1,850,000 34,600,000 24,573 34,624,573 668,790 734,880 1,058,520 643,860 2,437,260 3,106,050 392,250 387,150 397,350 784,500 1,176,750 0 See notes to financial statements. 7 Annual Report 2015 GLOBAL SELF STORAGE, INC. SCHEDULE OF PORTFOLIO INVESTMENTS Shares SHORT TERM INVESTMENT (8.34%) Financial Statements Value 3,526,337 SSgA Money Market Fund, 7 day annualized yield 0.01% (Cost $3,526,337) $ 3,526,337 Total investments (Cost $33,723,765) (100.35%) Liabilities in excess of other assets (-0.35%) Net assets (100.00%) (a) Controlled affiliate. (b) Illiquid and/or restricted security that has been fair valued. LLC Limited Liability Company 42,433,710 (147,188) $ 42,286,522 See notes to financial statements. GLOBAL SELF STORAGE, INC. Annual Report 2015 8 STATEMENT OF ASSETS AND LIABILITIES Assets Investments, at value Wholly owned subsidiaries (cost $27,749,573) Unaffiliated issuers (cost $5,974,192) Cash Dividends receivable Other assets Total assets Liabilities Accounts payable and accrued expenses Due to affiliates Total liabilities Net Assets Net Asset Value Per Share Financial Statements Financial Statements December 31, 2015 $ 34,624,573 7,809,137 42,433,710 29,763 14,403 12,320 42,490,196 139,025 64,649 203,674 $ 42,286,522 (applicable to 7,416,766 shares outstanding: 20,000,000 shares of $.01 par value authorized) $ 5.70 Net Assets Consist of Paid in capital Undistributed net investment income Net unrealized appreciation on investments $ 32,983,056 593,521 8,709,945 $ 42,286,522 See notes to financial statements. 9 Annual Report 2015 GLOBAL SELF STORAGE, INC. STATEMENT OF OPERATIONS Investment Income Dividends Wholly owned subsidiaries Unaffiliated issuers Total investment income Expenses Compensation and benefits Occupancy and other office expenses Bookkeeping and pricing Registration Auditing Directors Stockholder communications Legal Custodian Insurance Transfer agent Other Total expenses Net investment income Realized and Unrealized Gain Net realized gain on investments in unaffiliated issuers Net unrealized appreciation Wholly owned subsidiaries Unaffiliated issuers Net realized and unrealized gain Financial Statements Year Ended December 31, 2015 $ 2,600,000 131,431 2,731,431 757,213 125,259 79,005 62,956 48,140 38,505 21,992 19,600 12,080 11,790 11,430 3,798 1,191,768 1,539,663 903,061 3,320,002 351,247 4,574,310 Net increase in net assets resulting from operations $ 6,113,973 See notes to financial statements. GLOBAL SELF STORAGE, INC. Annual Report 2015 10 STATEMENTS OF CHANGES IN NET ASSETS For the Years Ended December 31, 2015 and 2014 Operations Net investment income Net realized gain Unrealized appreciation Financial Statements (Unaudited) 2015 2014 $ 1,539,663 903,061 3,671,249 $ 1,126,343 1,459,315 3,503,130 Net increase in net assets resulting from operations 6,113,973 6,088,788 Distributions to Stockholders Net investment income Net realized gains Return of capital Total distributions Total increase in net assets Net Assets Beginning of period End of period (848,415) (903,061) (176,883) (450,425) (1,477,934) - (1,928,359) (1,928,359) 4,185,614 4,160,429 38,100,908 33,940,479 $ 42,286,522 $ 38,100,908 End of period net assets include undistributed net investment income (loss) $ 593,521 $ (97,728) See notes to financial statements. 11 Annual Report 2015 GLOBAL SELF STORAGE, INC. STATEMENT OF CASH FLOWS Cash Flows From Operating Activities Net increase in net assets resulting from operations Adjustments to reconcile increase in net assets resulting from operations to net cash provided by (used in) operating activities: Unrealized appreciation of investments Net realized gain on sales of investment securities Capital invested in wholly owned subsidiaries Proceeds from sales of investment securities Net purchases of short term investments Decrease in due from subsidiaries Increase in dividends receivable Increase in other assets Increase in accounts payable and accrued expenses Increase in due to affiliates Net cash provided by operating activities Cash Flows from Financing Activities Cash distributions paid Net cash used in financing activities Net change in cash Cash Beginning of period End of period Financial Statements Financial Statements Year Ended December 31, 2015 $ 6,113,973 (3,671,249) (903,061) (474,573) 933,999 (105,144) 3,372 (1,201) (2,125) 13,802 20,575 1,928,368 (1,928,359) (1,928,359) 9 29,754 $ 29,763 See notes to financial statements. GLOBAL SELF STORAGE, INC. Annual Report 2015 12 NOTES TO FINANCIAL STATEMENTS 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES Global Self Storage, Inc. (formerly Self Storage Group, Inc.) (the “Company”), a Maryland corporation registered under the Invest- ment Company Act of 1940, as amended (the “Act”) is a non-diver- sified, closed end management investment company. The Securities and Exchange Commission (“SEC”) effective order ap- proving the Company’s application with the Securities and Exchange Commission (“SEC”) to deregister from the Act was granted on Jan- uary 19, 2016. Accordingly, effective January 19, 2016, the Com- pany changed its name to Global Self Storage, Inc., changed its SEC registration to a reporting company under the Securities Exchange Act of 1934, as amended (from an investment company under the Act), and listed its common stock on the Nasdaq Capital Market under the symbol “SELF”. The Company, a real estate investment trust (“REIT”), owns and operates self storage facilities. Prior to deregistration as an investment company, the Company’s primary investment objective under the Act was to provide a high level of in- come, with capital appreciation as a secondary objective. The financial statements have been prepared in conformity with ac- counting principles generally accepted in the United States of Amer- ica (“GAAP”), which require management to make certain estimates and assumptions at the date of the financial statements. Actual re- sults could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Com- pany: Valuation of Investments – Portfolio securities are valued by various methods depending on the primary market or exchange on which they trade. Most equity securities for which the primary market is in the United States are valued at the official closing price, last sale price or, if no sale has occurred, at the closing bid price. Most equity securities for which the primary market is outside the United States are valued using the official closing price or the last sale price in the principal market in which they are traded. If the last sale price on the local exchange is unavailable, the last evaluated quote or closing bid price normally is used. Certain debt securities may be priced through pricing services that may utilize a matrix pricing sys- tem which takes into consideration factors such as yields, prices, maturities, call features, and ratings on comparable securities. Open end investment companies are valued at their net asset value. For- eign securities markets may be open on days when the U.S. mar- kets are closed. For this reason, the value of any foreign securities owned by the Company could change on a day when stockholders cannot buy or sell shares of the Company. Securities for which mar- December 31, 2015 Financial Statements Financial Statements Financial Statements ket quotations are not readily available or reliable and other assets may be valued as determined in good faith by the Valuation Com- mittee (“VC”) of the Company under the direction of or pursuant to procedures approved by the Company’s Board of Directors. Due to the inherent uncertainty of valuation, such fair value pricing values may differ from the values that would have been used had a readily available market for the securities existed. These differences in val- uation could be material. A security’s valuation may differ depend- ing on the method used for determining value. The use of fair value pricing by the Company may cause the net asset value of its shares to differ from the net asset value that would be calculated using market prices. A fair value price is an estimate and there is no as- surance that such price will be at or close to the price at which a se- curity is next quoted or next trades. Investments in Other Investment Companies – The Company may invest in shares of other investment companies (the “Acquired Fund”) in accordance with the Act and related rules. Stockholders in the Company bear the pro rata portion of the fees and expenses of an Acquired Fund in addition to the Company’s expenses. Expenses incurred by the Company that are disclosed in the statement of op- erations do not include fees and expenses incurred of an Acquired Fund. The fees and expenses of an Acquired Fund are reflected in such Acquired Fund’s total returns. Investments in Real Estate Investment Trusts – Dividend income is recorded based on the income included in distributions received from the REIT investments using published REIT reclassifications in- cluding some management estimates when actual amounts are not available. Distributions received in excess of this estimated amount are recorded as a reduction of the cost of investments or reclassi- fied to capital gains. The actual amounts of income, return of capi- tal, and capital gains are only determined by each REIT after its fiscal year end, and may differ from the estimated amounts. Real Estate Owned - Self Storage Properties – The Company owns and operates self storage properties through wholly owned sub- sidiaries. Short Sales – The Company may sell a security short it does not own in anticipation of a decline in the market value of the security. When the Company sells a security short, it must borrow the secu- rity sold short and deliver it to the broker/dealer through which it made the short sale. The Company is liable for any dividends or in- terest paid on securities sold short. A gain, limited to the price at which the Company sold the security short, or a loss, unlimited in size, will be recognized upon the termination of the short sale. Se- curities sold short result in off balance sheet risk as the Company’s 13 Annual Report 2015 GLOBAL SELF STORAGE, INC. NOTES TO FINANCIAL STATEMENTS continued Financial Statements ultimate obligation to satisfy the terms of the sale of securities sold short may exceed the amount recognized in the Statement of As- sets and Liabilities. taxation. Foreign taxes, if any, are recorded based on the tax regu- lations and rates that exist in the foreign markets in which the Com- pany invests. Investment Transactions – Investment transactions are accounted for on the trade date (the date the order to buy or sell is executed). Realized gains or losses are determined by specifically identifying the cost basis of the investment sold. Investment Income – Interest income is recorded on the accrual basis. Amortization of premium and accretion of discount on debt securities are included in interest income. Dividend income is recorded on the ex-dividend date or, in the case of foreign securities, as soon as practicable after the Company is notified. Taxes withheld on income from foreign securities have been provided for in accor- dance with the Company’s understanding of the applicable coun- try’s tax rules and rates. Expenses – Expenses deemed by the Company to have been in- curred solely by the Company are borne by the Company. Expenses deemed by the Company to have been incurred jointly by the Com- pany and one or more of the other investment companies for which its affiliates serve as investment manager or other related entities are allocated on the basis of relative net assets, except where a more appropriate allocation can be made fairly in the judgment of the Company. Expense Reduction Arrangement – Through arrangements with the Company’s custodian, credits realized as a result of uninvested cash balances are used to reduce custodian expenses. No credits were realized by the Company during the periods covered by this report. Distributions to Stockholders – Distributions to stockholders are determined in accordance with income tax regulations and are recorded on the ex-dividend date. Income Taxes – The Company has elected to be treated as a REIT under the Internal Revenue Code of 1986, as amended (“IRC”). In order to maintain its qualification as a REIT, among other things, the Company is required to distribute at least 90% of its REIT taxable income to its stockholders and meet certain tests regarding the na- ture of its income and assets. As a REIT, the Company is not subject to federal income tax with respect to that portion of its income which meets certain criteria and is distributed annually to stockholders. The Company plans to continue to operate so that it meets the re- quirements for taxation as a REIT. Many of these requirements, how- ever, are highly technical and complex. If the Company were to fail to meet these requirements, it would be subject to federal income tax. The Company is subject to certain state and local taxes. Foreign securities held by the Company may be subject to foreign The Company recognizes the tax benefits of uncertain tax positions only where the position is “more likely than not” to be sustained as- suming examination by tax authorities. The Company has reviewed its tax positions and has concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken on federal, state, and local income tax returns for open tax years (2012 – 2014), or expected to be taken in the Company’s 2015 tax returns. 2. RELATED PARTY TRANSACTIONS Certain officers and directors of the Company also serve as officers and directors of Winmill & Co. Incorporated (“Winco”), Bexil Corporation, Tuxis Corporation (“Tuxis”), and their affiliates (collectively with the Company, the “Af- filiates”). As of December 31, 2015, certain of the Affiliates owned approximately 2% of the Company’s outstanding common stock. Pur- suant to an arrangement between a professional employer organi- zation (“PEO”) and the Affiliates, the PEO provides payroll, benefits, compliance, and related services for employees of the Affiliates in accordance with applicable rules and regulations under the IRC and, in connection therewith, Midas Management Corporation (“MMC”), a subsidiary of Winco, acts as a conduit payer of compensation and benefits to the Affiliates’ employees including those who are con- currently employed by the Company and its Affiliates. Rent expense of concurrently used office space and overhead expenses for various concurrently used administrative and support functions incurred by the Affiliates are allocated at cost among them. The Affiliates par- ticipate in a 401(k) retirement savings plan for substantially all qual- ified employees. A matching expense based upon a percentage of contributions to the plan by eligible employees is incurred and allo- cated among the Affiliates. The matching expense is accrued and funded on a current basis and may not exceed the amount permit- ted as a deductible expense under the IRC. The aggregate compen- sation and benefits accrued and paid by the Company for the year ended December 31, 2015 was $747,523. The aggregate rent and overhead accrued and paid by the Company for the year ended De- cember 31, 2015 was $62,403. As of December 31, 2015, the Com- pany had reimbursements payable to MMC and Winco for compensation and benefits and rent and overhead of $64,649. Under the terms of the Company’s employment agreement with its President, Mark C. Winmill, the maximum monthly automobile al- lowance is $1,000 per month. To the extent that the monthly maxi- mum payment under the Company’s automobile lease exceeds the monthly allowance, Mr. Winmill must reimburse the Company for the excess amount. In this regard, Mr. Winmill has reimbursed the Com- pany $1,878 for the automobile payments paid and due in 2015. GLOBAL SELF STORAGE, INC. Annual Report 2015 14 NOTES TO FINANCIAL STATEMENTS continued Financial Statements The Company leases office space from Tuxis under a rental agreement. The terms of occupancy are month to month and automatically renew unless terminated by either party on ten days written notice. The monthly rental charges are $1,000 per month due and payable on the first day of each month. For the year ended December 31, 2015, the total rent paid by the Company to Tuxis was $14,000. 3. DISTRIBUTIONS TO STOCKHOLDERS AND DISTRIBUTABLE EARNINGS The tax character of distributions paid by the Company for the years ended December 31, 2015 and 2014 are summarized as follows: Distributions paid from: Net investment income Net realized gains Return of capital Total distributions 2015 $ 848,811 902,665 176,883 2014 $ 450,425 1,477,934 - $ 1,928,359 $ 1,928,359 As of December 31, 2015, distributable earnings on a tax basis was comprised of $9,303,466 of unrealized appreciation. The difference between book and tax unrealized appreciation is attributable to income of the Company’s wholly owned unconsolidated sub- sidiaries. Federal income tax regulations permit post-October net capital losses, if any, to be deferred and recognized on the tax return of the next succeeding taxable year. Federal income tax regulations permit post-October net capital losses, if any, to be deferred and recognized on the tax return of the next suc- ceeding taxable year. GAAP requires certain components related to permanent differences of net assets to be classified differently for financial reporting than for tax reporting purposes. These differences have no effect on net assets or net asset value per share. These differences which may result in distribution reclassifications, are primarily due to differences in, return of capital dividends, recharacterization of capital gain income, and timing of distributions. As of December 31, 2015, the Company recorded the following financial reporting reclassifications to the net asset accounts to reflect those differences: Increase in Undistributed Net Investment Income $1,079,944 Decrease in Net Realized Gain on Investments $(903,061) Decrease in Paid in Capital $(176,883) 4. VALUE MEASUREMENT GAAP establishes a hierarchy that prioritizes inputs to valuation methods. The three levels of inputs are: • Level 1 – unadjusted quoted prices in active markets for identical assets or liabilities including securities actively traded on a securities exchange. • Level 2 – observable inputs other than quoted prices included in level 1 that are observable for the asset or liability which may include quoted prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates, and similar data. • Level 3 – unobservable inputs for the asset or liability including the Company’s own assumptions about the assumptions a market partic- ipant would use in valuing the asset or liability. The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets for the security, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for investments categorized in level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based 15 Annual Report 2015 GLOBAL SELF STORAGE, INC. NOTES TO FINANCIAL STATEMENTS continued Financial Statements on the lowest level input that is significant to the fair value measurement in its entirety. The inputs or methodology used for valuing invest- ments are not necessarily an indication of the risk associated with investing in those securities. The following is a description of the valuation techniques applied to the Company’s major categories of assets and liabilities measured at fair value on a recurring basis: Real estate assets – Real estate assets, including self storage facilities held indirectly through one or more wholly owned and controlled sub- sidiaries, are valued using fair value pricing as determined in good faith by the VC under the direction of or pursuant to procedures approved by the Company’s Board of Directors. Real estate assets may be valued by reference to, among other things, quarterly appraisals by an in- dependent third party and additional factors which may include assessment of comparable recent acquisitions, changes in cash flows from the operation of the subject property, and material events affecting the operation of the property. Equity securities (common and preferred stock) – Most publicly traded equity securities are valued normally at the most recent official clos- ing price, last sale price, evaluated quote, or closing bid price. To the extent these securities are actively traded and valuation adjustments are not applied, they may be categorized in level 1 of the fair value hierarchy. Equities on inactive markets or valued by reference to similar instruments may be categorized in level 2. Restricted and/or illiquid securities – Restricted and/or illiquid securities for which quotations are not readily available or reliable may be valued with fair value pricing as determined in good faith by the VC under the direction of and pursuant to procedures approved by the Com- pany’s Board of Directors. Restricted securities issued by publicly traded companies are generally valued at a discount to similar publicly traded securities. Restricted or illiquid securities issued by nonpublic entities may be valued by reference to comparable public entities or funda- mental data relating to the issuer or both similar inputs. Depending on the relative significance of valuation inputs, these instruments may be categorized in either level 2 or level 3 of the fair value hierarchy. The following is a summary of the inputs used as of December 31, 2015 in valuing the Company’s assets. Refer to the Schedule of Portfolio Investments for detailed information on specific investments. ASSETS Investments, at value Wholly owned subsidiaries Self storage properties Other Common stocks Preferred stocks Other Short term investments Total investments, at value Level 1 Level 2 Level 3 Total $ - $ - $ 34,600,000 $ 34,600,000 - 3,106,050 1,176,750 - 3,526,337 $ 7,809,137 $ - - - - - - 24,573 - - 0 - 24,573 3,106,050 1,176,750 0 3,526,337 $ 34,624,573 $ 42,433,710 There were no securities transferred from level 1 at December 31, 2014 to level 2 at December 31, 2015. GLOBAL SELF STORAGE, INC. Annual Report 2015 16 NOTES TO FINANCIAL STATEMENTS continued Financial Statements The following is a reconciliation of level 3 assets including securities valued at zero: Balance at December 31, 2014 Cost of purchases Proceeds from sales Realized gain Transfers into (out of) level 3 Change in unrealized appreciation Balance at December 31, 2015 Net change in unrealized appreciation attributable to assets still held as level 3 at December 31, 2015 Wholly Owned Subsidiaries Other Total $ 30,830,000 474,573 - - - 3,320,000 $ 34,624,573 $ 3,320,000 $ 519,765 $ 31,349,765 - (900,368) 900,368 - (519,765) $ $ 0 0 474,573 (900,368) 900,368 - 2,800,235 $ 34,624,573 $ 3,320,000 Unrealized gains (losses) are included in the related amounts on investments in the Statement of Operations. The VC, under the direction of the Company’s Board of Directors, considers various valuation approaches for valuing assets categorized within level 3 of the fair value hierarchy. The factors used in determining the value of such assets may include, but are not limited to: mar- ketability, professional appraisals of portfolio companies, company and industry results and outlooks, and general market conditions. The VC then recommends a value for each asset in light of all the information available. The determination of fair value involves subjective judgments. As a result, using fair value to price an investment may result in a price materially different from the price used by other investors or the price that may be realized upon the actual sale of the asset. Significant changes in any of those inputs in isolation may result in a significantly lower or higher value measurement. The pricing of all fair value assets is reported to the Company’s Board of Directors. In valuing the self storage properties owned through the Company’s wholly owned subsidiaries as of December 31, 2015, the VC used a num- ber of significant unobservable inputs to develop a range of possible values for the properties. It used a sales comparison approach which looks at recent sales of self storage properties considered similar to the subject property, an income capitalization approach which looks at discounted cash flow analysis based on certain assumptions regarding the property’s trend in income and expenses, and a cost approach which looks at recent comparable land sales in the subject area and the estimated replacement value of the existing buildings and site improvements. The values obtained from weighting the three methods described above, with greater weight given to the sales comparison approach, were then dis- counted for the lack of marketability of the Company’s membership interest in each subsidiary, which represents the range of rates the VC believes market participants may apply. The resulting range of values, together with the underlying support, other information about each underlying property’s financial condition and results of operations and its industry outlook, were considered by the VC, which recommended a value for each subsidiary. The following table presents additional information about valuation methodologies and inputs used for investments that are measured at fair value and categorized as level 3 as of December 31, 2015: Fair Value Valuation Technique Unobservable Input Range WHOLLY OWNED SUBSIDIARIES Self Storage Properties $ 34,600,000 Income capitalization approach Capitalization rates 5.3% - 9.6% Other OTHER $ 24,573 Replacement cost $ 0 Liquidating value Lack of marketability Discount rate for lack of marketability 0% 100% 17 Annual Report 2015 GLOBAL SELF STORAGE, INC. NOTES TO FINANCIAL STATEMENTS continued Financial Statements 5. INVESTMENTS IN WHOLLY OWNED SUBSIDIARIES The following summary sets forth the Company’s membership equity ownership in- cluding membership equity capital additions and reductions, cash dividends received by the Company, and the value of each wholly owned subsidiary as recorded in the schedule of portfolio investments as of and for the year ended December 31, 2015. Beginning Equity Interest Percentage Membership Equity Gross Gross Additions Reductions Ending Equity Interest Percentage Dividend Income Value December 31, 2015 SSG Bolingbrook LLC SSG Dolton LLC SSG Merrillville LLC SSG Rochester LLC SSG Sadsbury LLC SSG Summerville I LLC SSG Summerville II LLC SSG Operations LLC 100% $ - $ - 100% $ - $ - 100% 100% $ $ - $ - - $ - 100% $ 450,000 $ - 100% 100% $ $ - $ - - $ - 0% $ 24,573 $ - 100% 100% 100% 100% 100% 100% 100% 100% $ 390,000 $ 6,100,000 $ 542,000 $ 5,900,000 $ 431,000 $ 5,700,000 $ 587,000 $ 5,950,000 $ 265,000 $ 5,700,000 $ 250,000 $ 3,400,000 $ 135,000 $ 1,850,000 $ - $ 24,753 The Company’s wholly owned subsidiaries are each a controlled affiliate as defined under the Act. A controlled affiliate is an issuer in which the Company’s holdings represent 25% or more of the outstanding voting securities of such issuer. 6. SUMMARIZED FINANCIAL INFORMATION OF WHOLLY OWNED SUBSIDIARIES Each of the Company’s wholly owned subsidiaries, except for SSG Operations LLC, owns and operates a self storage facility business. The following sets forth unaudited summarized information as to assets, liabilities, and selected operating information for each wholly owned subsidiary as of and for the year ended December 31, 2015: SSG Bolingbrook LLC SSG Dolton LLC SSG Merrillville LLC SSG Rochester LLC SSG Sadsbury LLC SSG Summerville I LLC SSG Summerville II LLC SSG Operations LLC Dollars in thousands OPERATING DATA Year ended Dec. 31, 2015 Rental revenues $ 653 $ 775 $ 627 $ 1,009 $ 648 $ 477 $ 250 $ Costs of operations 268 Income from operations $ 385 Depreciation and amoritization Net income (loss) $ 129 $ 256 235 540 117 423 $ $ $ $ $ $ 212 415 113 433 576 86 $ $ 349 202 94 $ 299 $ 275 $ 156 $ 105 $ 55 $ 31 258 $ 490 $ 194 $ 216 $ 119 $ $ $ - 8 (8) - (8) BALANCE SHEET DATA Dec. 31, 2015 Real estate assets, net $ 5,511 $ 4,881 $ 4,599 $ 3,471 $ 4,521 $ 2,205 $ 1,240 $ - Total assets Total liabilities $ 5,599 $ 136 $ 5,015 $ 106 $ 4,644 $ 3,599 $ 4,591 $ 2,237 $ 1,263 $ 76 $ 33 $ 20 $ 21 $ 11 $ $ 17 - GLOBAL SELF STORAGE, INC. Annual Report 2015 18 NOTES TO FINANCIAL STATEMENTS continued Financial Statements 7. ILLIQUID AND RESTRICTED INVESTMENTS The Company holds investments that have a limited trading market and/or certain restrictions on trading and, therefore, may be illiquid and/or restricted. These investment holdings have been valued at fair value. Due to the inherent uncertainty of valuation, fair value pricing values may differ from the values that would have been used had a readily available market for the securities existed. These differences in valuation could be material. Illiquid and/or restricted investment holdings owned at December 31, 2015, were as follows: Acquisition Date Cost Value SSG Bolingbrook LLC SSG Dolton LLC SSG Merrillville LLC SSG Rochester LLC SSG Sadsbury LLC SSG Summerville I LLC SSG Summerville II LLC SSG Operations LLC RMR Asia Pacific Fund Fractional shares Total Percent of net assets 6/27/13 6/27/13 6/27/13 12/5/12 12/24/12 7/12/13 8/20/13 8/11/15 2010 $ 5,700,000 $ 6,100,000 5,100,000 4,825,000 3,750,000 4,750,000 2,300,000 1,300,000 24,573 0 5,900,000 5,700,000 5,950,000 5,700,000 3,400,000 1,850,000 24,573 0 $ 27,749,573 $ 34,624,573 66% 82% 8. INVESTMENT TRANSACTIONS Purchases and proceeds of investments, excluding short term investments, were $474,573 and $900,368, respectively, for the year ended December 31, 2015. As of December 31, 2015, for federal income tax purposes, the aggregate cost of in- vestments was $33,158,473 and net unrealized appreciation was $9,275,237, comprised of gross unrealized appreciation of $9,275,237 and gross unrealized depreciation of $0. 9. BORROWING AND SECURITIES LENDING The Company has entered into a Committed Facility Agreement (the “CFA”) with BNP Paribas Prime Brokerage, Inc. (“BNP”) that allows the Company to adjust its credit facility amount up to $20,000,000, and a Lending Agreement, as defined below. Borrowings under the CFA are secured by assets of the Company that are held with the Company’s custodian in a separate account (the “pledged collateral”). Interest is charged at the 1 month LIBOR (London Inter-bank Offered Rate) plus 0.95% on the amount bor- rowed and 0.50% on the undrawn balance. Because the Company adjusts the facility amount each day to equal borrowing drawn that day, the 0.50% annualized rate charge on undrawn facility amounts provided for by the CFA has not been incurred. As of December 31, 2015, there was no outstanding loan balance or assets pledged as collateral and there was no borrowing activity during the year ended December 31, 2015. The Lending Agreement provides that BNP may borrow a portion of the pledged collateral (the “Lent Securities”) in an amount not to exceed the outstanding borrowings owed by the Company to BNP under the CFA. BNP may re-register the Lent Securities in its own name or in an- other name other than the Company and may pledge, re-pledge, sell, lend, or otherwise transfer or use the Lent Securities with all attendant rights of ownership. The Company may designate any security within the pledge collateral as ineligible to be a Lent Security, provided there are eligible securities within the pledged collateral in an amount equal to the outstanding borrowing owed by the Company. BNP must remit payment to the Company equal to the amount of all dividends, interest, or other distributions earned or made by the Lent Securities. 19 Annual Report 2015 GLOBAL SELF STORAGE, INC. NOTES TO FINANCIAL STATEMENTS Under the Lending Agreement, Lent Securities are marked to market daily and, if the value of the Lent Securities exceeds the value of the then-outstanding borrowings owed by the Company to BNP under the CFA (the “Current Borrowings”), BNP must, on that day, either (1) return Lent Securities to the Company’s custodian in an amount sufficient to cause the value of the outstanding Lent Securities to equal the Current Borrowings; or (2) post cash collateral with the Company’s custodian equal to the difference between the value of the Lent Securities and the value of the Current Borrowings. If BNP fails to perform either of these actions as required, the Company will recall securities, as discussed below, in an amount sufficient to cause the value of the outstanding Lent Securities to equal the Cur- rent Borrowings. The Company can recall any of the Lent Securities and BNP is obligated, to the extent commercially possible, to return such security or equivalent security to the Company’s custodian no later than three business days after such request. If the Company re- calls a Lent Security pursuant to the Lending Agreement, and BNP fails to return the Lent Securities or equivalent securities in a timely fashion, BNP shall remain liable to the Company’s custodian for the ultimate delivery of such Lent Securities, or equivalent securities, and for any buy-in costs that the executing broker for the sales trans- action may impose with respect to the failure to deliver. The Com- pany shall also have the right to apply and set-off an amount equal to one hundred percent (100%) of the then-current fair value of such Lent Securities against the Current Borrowings. The Company earns securities lending income consisting of payments received from BNP for lending certain securities, less any rebates paid to borrowers and lending agent fees associated with the loan. As of and for the year ended December 31, 2015, there were no Lent Securities. 10. INVESTMENT AND SECURITIES RISK Foreign securities risk. Investments in the securities of foreign is- suers involve special risks, including changes in foreign exchange rates and the possibility of future adverse political and economic developments, which could adversely affect the value of such se- curities. Moreover, securities of foreign issuers and traded in for- eign markets may be less liquid and their prices more volatile than those of U.S. issuers and markets. Non-diversification risk. The Company is considered non-diversified and can invest a greater portion of assets in securities of individual issuers than a diversified company. As a result, changes in the mar- ket value of a single investment could cause greater fluctuations in share price than would occur in a diversified company. Equity securities risk. The prices of equity securities change in re- sponse to many factors including the historical and prospective earnings of the issuer, the value of its assets, general economic con- ditions, interest rates, investor perceptions and market liquidity. continued Financial Statements Concentration risk. The Company’s assets are concentrated in in- vestments in the real estate industry and, as a result, the value of the Company’s common stock may be subject to greater volatility than an investment company with a portfolio that is less concen- trated by industry. If the securities of the real estate industry or self storage companies as a group fall out of favor with investors, the Company could underperform other companies that have greater in- dustry diversification. A more concentrated portfolio may cause the Company’s net asset value to be more volatile and thus may sub- ject stockholders to more risk. As of December 31, 2015, the Com- pany held approximately 82% of its assets in self storage properties. Thus, the volatility of the Company’s net asset value, and its per- formance in general, depends disproportionately more on the perform- ance of a single industry than that of a more diversified company. REIT risk. The Company’s investments in securities of real estate companies involve risks. The REITs in which the Company invests are subject to risks inherent in the direct ownership of real estate. These risks include, but are not limited to, the risk of a possible lack of mortgage funds and associated interest rate risks, overbuilding, property vacancies, increases in property taxes and operating ex- penses, changes in zoning laws, losses due to environmental dam- ages and changes in neighborhood values and appeal to purchasers. 11. CAPITAL STOCK The Company is authorized to issue 20,000,000 shares of $0.01 par value common stock. There were no transac- tions in common stock during 2015 or 2014. 12. STOCKHOLDER RIGHTS PLAN On November 25, 2015, the Company’s Board of Directors adopted a stockholder rights plan (the “Plan”) dated November 25, 2015. To implement the Plan, the Board of Directors declared a special dividend distribution of one non- transferable right for each outstanding share of the Company’s com- mon stock, par value $.01 per share, to stockholders of record at the close of business on November 25, 2015. Each right entitles the registered holder to purchase from the Company one share of its common stock, par value $.01 per share, subject to adjustment. The rights will be distributed as a non-taxable dividend and will expire at the close of business on March 24, 2016, unless earlier redeemed or exchanged by the Company. The rights will be evidenced by the underlying Company common stock and no separate rights certifi- cates will presently be distributed. Subject to certain exceptions in the rights agreement, (“Rights Agreement”) the rights will become exercisable 10 days following a public announcement that a “per- son” (as defined in the Rights Agreement) or a group of affiliated or associated persons have acquired “beneficial ownership” (as de- fined in the Rights Agreement) of 15% or more of the outstanding shares of the Company’s common stock. In this event, however, any GLOBAL SELF STORAGE, INC. Annual Report 2015 20 NOTES TO FINANCIAL STATEMENTS person who “beneficially owns” (as defined in the Rights Agreement) more than 15% of the outstanding common shares of the Com- pany’s common stock will not be permitted to exercise any rights as- sociated with common shares beneficially owned in excess of 15% of the outstanding common shares of the Company, and those ad- ditional rights will be deemed null and void. The Board of Directors may terminate the Plan at any time or redeem the rights, for $.01 per right, at any time before a person or a group of affiliated or as- sociated persons beneficially owns 15% or more of the Company’s common stock. Under certain circumstances, as set forth in the Rights Agreement, certain rights owned by any person who is or be- comes an acquiring person (as defined in the Rights Agreement) shall become null and void. A copy of the Rights Agreement speci- fying the terms and conditions of the rights is available on the Com- pany’s website at www.GlobalSelfStorageInc.com. 13. COMMITMENTS AND CONTINGENCIES The Company indemni- fies its officers and directors from certain liabilities that might arise from their performance of their duties for the Company. Addition- ally, in the normal course of business, the Company enters into con- tracts that contain a variety of representations and warranties and which may provide general indemnifications. The Company’s maxi- mum exposure under these arrangements is unknown as it involves future claims that may be made against the Company under cir- cumstances that have not occurred. The Company leases an automobile under a lease expiring on Feb- ruary 25, 2017. The future minimum lease payments under the lease in aggregate are $15,035 comprised of annual payments of $13,878 and $1,157 for the years ending December 31, 2016 and 2017, respectively. 14. UNAUDITED PROFORMA BALANCE SHEET Upon receiving the deregistration order from the SEC under the Act granted on January 19, 2016 the Company will prepare financial statements on a con- solidated basis to include the financial position, results of opera- tions, and cash flows of the Company and its wholly owned subsidiaries, rather than by the current investment company fair val- uation approach. The following table presents the Company’s unaudited pro forma balance sheet and has been prepared as if the deregistration order was effective on December 31, 2015. The unaudited pro forma bal- ance sheet is based upon available information and upon certain assumptions that the Company believes are reasonable under the circumstances. The unaudited pro forma balance sheet presents the Company’s change in status from an investment company to an operating company no longer regulated as an investment company under the Act. This unaudited pro forma balance sheet does not- purport to represent what the Company’s financial position would continued Financial Statements actually have been if the deregistration order in fact had occurred on such date or the Company’s financial position for any future dates or periods. Assets Property, plant and equipment Cash and cash equivalents Available-for-sale securities Other assets Total assets Liabilities Stockholders’ equity Total liabilities and stockholders’ equity $ 34,503,666 3,854,104 4,282,800 253,029 $ 42,893,599 $ 607,077 42,286,522 $ 42,893,599 15. SUBSEQUENT EVENTS Effective January 19, 2016, the Com- pany changed its name to Global Self Storage, Inc., changed its SEC registration to an operating company from an investment company, and listed its common stock on the Nasdaq Capital Market under the symbol “SELF”. Following deregistration as an investment com- pany, the Company terminated its agreements with BNP, its custo- dian, and net asset value fund accountant. On January 28, 2016 the Company announced that its Board of Di- rectors has adopted a stockholders rights plan (the “Rights Plan”). To implement the Rights Plan, the Board of Directors declared a div- idend distribution of one right for each outstanding share of Com- pany common stock, par value $.01 per share, to holders of record of the shares of common stock at the close of business on January 29, 2016. Each right entitles the registered holder to purchase from the Company one one-thousandth of a share of preferred stock, par value $.01 per share. The rights will be distributed as a non-tax- able dividend and will expire on January 29, 2026. The rights will be evidenced by the underlying Company common stock, and no separate preferred stock purchase rights certificates will presently be distributed. The rights to acquire preferred stock are not imme- diately exercisable and will become exercisable only if a person or group, other than certain exempt persons, acquires or commences a tender offer for 9.8% or more of the Company’s common stock. If a person or group, other than an Exempt Person (as defined in the Rights Plan agreement), acquires or commences a tender offer for 9.8% or more of the Company’s common stock, each holder of a right, except the acquirer, will be entitled, subject to the Company’s right to redeem or exchange the right, to exercise, at an exercise price of $12, the right for one one-thousandth of a share of the Com- pany’s newly created Series A Participating Preferred Stock, or the number of shares of Company common stock equal to the holder’s number of rights multiplied by the exercise price and divided by 50% of the market price of the Company’s common stock on the date of 21 Annual Report 2015 GLOBAL SELF STORAGE, INC. NOTES TO FINANCIAL STATEMENTS the occurrence of such an event. The Company’s Board of Directors may terminate the Rights Plan at any time or redeem the rights, for $0.01 per right, at any time before a person acquires 9.8% or more of the Company’s common stock. The Rights Plan is intended to re- place the Plan dated November 25, 2015, which will expire on its own terms on March 24, 2016. Effective January 29, 2016, the Board of Directors reclassified 100,000 unissued shares of the Company’s common stock into 100,000 shares of Series A Participating Preferred Stock, par value $.01 per share. concluded Financial Statements A summary of the Rights Plan is available on the Company’s website at www.globalselfstorageinc.com and a copy of the Rights Plan agreement was filed with the SEC as an exhibit to a current report on Form 8-K dated January 29, 2016. GLOBAL SELF STORAGE, INC. Annual Report 2015 22 FINANCIAL HIGHLIGHTS Per Share Operating Performance (for a share outstanding throughout each period) Net asset value, beginning of period Income from investment operations: Net investment income (loss) (1) Net realized and unrealized gain (loss) on investments Total income from investment operations . Less distributions: Net investment income Net realized gains Return of capital Total distributions Net asset value, end of period Market value, end of period Total Return (2) Based on net asset value Based on market price Ratios/Supplemental Data (3) Net assets at end of period (000s omitted) Ratio of total expenses to average net assets Ratio of net expenses excluding loan interest and fees to average net assets Ratio of net investment income (loss) to average net assets Portfolio turnover rate December 31, 2015 Financial Statements Year Ended December 31, 2015 2014 2013 2012 2011 $5.14 $4.58 $4.74 $4.60 $5.00 .21 .61 .82 (.12) (.12) (.02) (.26) $5.70 $3.75 19.00% 10.86% .15 .67 .82 (.06) (.20) - (.26) $5.14 $3.63 (.09) .28 .19 (.06) (.29) - (.35) $4.58 $3.59 .01 .60 .61 (.02) (.45) - (.47) $4.74 $3.69 .19 (.33) (.14) (.26) - - (.26) $4.60 $3.78 20.67% 8.72% 5.70% 6.43% 16.22% 10.10% (1.86)% (3.30)% $42,287 $38,101 $33,940 $35,155 $34,102 3.02% 3.72% 3.14% 2.60% 2.31% 3.02% 3.90% 1% 3.71% 3.19% 1% 3.14% (1.88)% 57% 2.60% 0.25% 115% 2.30% 4.31% 22% (1) The per share amounts were calculated using the average number of common shares outstanding during the period. (2) Total return on a market value basis is calculated assuming a purchase of common stock on the opening of the first day and a sale on the closing of the last day of each period reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Companyʼs dividend reinvestment plan if in effect or, if there is no plan in effect, at the lower of the per share net asset value or the closing market price of the Companyʼs shares on the dividend/distribution date. Generally, total return on a net asset value basis will be higher than total return on a market value basis in periods where there is an increase in the discount or a decrease in the premium of the market value to the net asset value from the beginning to the end of such periods. Conversely, total return on a net asset value basis will be lower than total return on a market value basis in periods where there is a decrease in the discount or an increase in the premium of the market value to the net asset value from the beginning to the end of such periods. The calculation does not reflect brokerage commissions, if any. (3) Expenses and income ratios do not include expenses incurred by an Acquired Fund in which the Company invests. See notes to financial statements. 23 Annual Report 2015 GLOBAL SELF STORAGE, INC. REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM December 31, 2015 Financial Statements To the Board of Directors and Stockholders of Global Self Storage, Inc. We have audited the accompanying statement of assets and liabili- ties of Global Self Storage, Inc., including the schedule of portfolio in- vestments as of December 31, 2015 and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the fi- nancial highlights for each of the five years indicated thereon. These financial statements and financial highlights are the responsibility of the Company’s management. Our responsibility is to express an opin- ion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with auditing standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain rea- sonable assurance about whether the financial statements and fi- nancial highlights are free of material misstatement. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consid- eration of internal control over financial reporting as a basis for de- signing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the finan- cial statements. Our procedures included confirmation of securities owned as of December 31, 2015, by correspondence with the custo- dian. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our au- dits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Global Self Storage, Inc. as of December 31, 2015, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the five years indicated thereon, in conformity with accounting principles generally accepted in the United States of America. TAIT, WELLER & BAKER LLP Philadelphia, Pennsylvania February 23, 2016 GLOBAL SELF STORAGE, INC. Annual Report 2015 24 POLICIES AND RISKS (Unaudited) Financial Statements Investment Objectives and Policies Prior to January 19, 2016, the Company’s primary investment objec- tive was to provide a high level of income. This objective under the Act was fundamental and could not be changed without stockholder ap- proval. The Company was also subject to certain investment restric- tions, set forth in its most recently effective Statement of Additional Information, that were fundamental and could not be changed without stockholder approval. The Company’s secondary investment objective of capital appreciation was not fundamental and could be changed by the Board of Directors without stockholder approval. Risk Factors Stockholders should note that there are a number of risks related to the Company’s business. Additionally, there are risks related to the operating performance of the Company’s self storage facilities and the Company’s performance will be subject to risks associated with the real estate industry. There are also risks related to the Company’s organization and structure and risks related to the Company’s tax status as a REIT. The summary of risk factors below is qualified by reference to a more complete statement of applicable risks con- tained in the Company’s Form 10 filed with the SEC on December 14, 2015, which is available at www.globalselfstorageinc.com. There are a number of risks related to the Company’s business and they should be noted: • The Company is pursuing a business in which it has limited operat- ing history. • The Company’s investments are subject to concentration risk. • The Company’s performance is subject to risks associated with operation of self storage facilities. The following factors, among others, may adversely affect the oper- ating performance of the Company’s self storage facilities: • Perceptions by prospective tenants of the Company’s self storage properties of the safety, convenience, and attractiveness of such properties and the areas in which they are located. the real estate industry. Some of these risks include: • The Company expects to invest in a limited number of self storage facilities. • Prevailing economic conditions may adversely affect the Company’s business, financial condition and results of operations. • The Company may be unable to complete acquisitions that would grow its business. • The inability to achieve satisfactory completion of due diligence investigations and other customary closing conditions. • The consideration paid for properties may exceed their value. • The Company may acquire properties subject to liabilities. • The Company’s investments in development and redevelopment projects may not yield anticipated returns. • The Company may not complete development projects on schedule or within projected budgeted amounts. • The Company may encounter delays or refusals in obtaining all necessary zoning, land use, building, occupancy and other required governmental permits and authorizations. • The Company may be unable to increase occupancy at a newly acquired property as quickly as expected or at all. • The Company may be unable to obtain financing for these projects on favorable terms or at all. • The Company may fail to successfully integrate and operate acquired properties. • Regulatory compliance costs will reduce the Company’s income. • The Company may incur liability from tenant and employment- related claims and litigation. • Uninsured losses or losses in excess of the Company’s insurance coverage could adversely affect its financial condition and cash flow. • A general decline in rental rates or an increase in tenant defaults. • Perceptions of the self storage industry. • Vacancies or inability to rent storage space on favorable terms. • The Company’s investments will be relatively illiquid. • Increases in operating costs. • The Company’s performance may be subject to the risks of invest- • Actual or perceived oversupply or declining demand of self storage ment in publicly traded REITs. in a particular area. • Delays in acquisitions of self storage facilities may adversely affect • Difficulties in hiring, training and maintaining skilled field personnel. your investment. • Competition from other self storage facilities which may adversely impact the markets in which the Company invests and in which the Company’s self storage companies operate. • The Company may be unable to maintain its current level of distri- butions or increase distributions over time. There are risks related to the Company’s organization and structure: The Company’s performance may be subject to risks associated with • Management has limited experience operating a REIT. 25 Annual Report 2015 GLOBAL SELF STORAGE, INC. POLICIES AND RISKS • The Board may revoke the Company’s REIT election at any time. • The Company’s business could be harmed if key personnel with business experience in the self storage industry terminate their employment with the Company. • There may be conflicts of interest resulting from the relationships among the Company and its affiliates and other related parties. • The Company may sell its common stock at a price below book value without stockholder approval. • Certain provisions of Maryland law and the Company’s Charter and By-laws may prevent changes in control or otherwise discourage takeover attempts that may be beneficial to stockholders. There are risks related to the Company’s tax status as a REIT: • Even though the Company currently qualifies for federal tax treat- ment as a REIT, it may face tax liabilities that will reduce its cash flow. • Complying with the REIT requirements may cause the Company to forego, or to liquidate, otherwise attractive opportunities. • Failure to continue to qualify for treatment as a REIT may have adverse tax consequences. • The Company’s REIT taxable income may exceed its cash flow for a year, which could necessitate its borrowing funds and/or subject it to tax, thus reducing the cash available for distribution to its stockholders. • Distributions or gain on sale of shares may be treated as unrelated business taxable income to tax-exempt investors. • Dividends payable by the Company will not qualify for the reduced tax rates available for “qualified dividend income.” • REIT restrictions on ownership of shares may delay or prevent its acquisition by a third party. • The Company may be subject to adverse legislative or regulatory tax changes. (Unaudited) Financial Statements Proxy Voting The Company’s Proxy Voting Guidelines, which describe the policies and procedures the Fund uses to determine how to vote proxies re- lating to portfolio securities, as well as its proxy voting record for the most recent 12 months ended June 30, are available without charge by calling the Company collect at 1-212-785-0900, on the SEC’s web- site at www.sec.gov, and on the Company’s website at www.SelfStor- ageGroupInc.com. Quarterly Schedule Of Portfolio Holdings Prior to January 19, 2016, the Company filed its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Company’s Forms N-Q are available on the SEC’s website at www.sec.gov. The Company’s Forms N-Q may be re- viewed and copied at the SEC’s Public Reference Room in Washington, DC, and information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. Distributions The Company’s current distribution policy is to provide stockholders with a relatively stable cash flow. The distributions are paid from ordi- nary income and any net capital gains, with the balance representing return of capital. The policy may be changed or discontinued without notice. The Company’s distributions are not tied to its net income and do not represent yield or investment return. The Company is subject to U.S. corporate, tax, and securities laws. Under U.S. tax accounting rules, the amount of distributable net income is determined on an an- nual basis. Therefore, the exact amount of distributable income can only be determined as of the end of the Company’s fiscal year. In Jan- uary, the Company sends stockholders a Form 1099-DIV for the prior calendar year stating the amount and composition of distributions and providing information about their appropriate tax treatment. GLOBAL SELF STORAGE, INC. Annual Report 2015 26 DIVIDENDS (Unaudited) Additional Information HISTORICAL DISTRIBUTION SUMMARY PERIOD Investment Income Return of Capital Capital Gains 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 6 months ended 12/31/99 12 months ended 6/30/99 From June 29, 1998 to November 30, 1998 $ 0.120 $ 0.060 $ 0.060 $ 0.020 $ 0.260 $ 0.220 $ 0.235 $ 0.240 $ 0.170 $ 0.130 $ 0.200 $ 0.245 $ 0.220 $ 0.280 $ 0.360 $ 0.420 $ 0.230 $ 0.550 $ 0.520 $ 0.020 $ 0.000 $ 0.000 $ 0.000 $ 0.000 $ 0.000 $ 0.000 $ 0.000 $ 0.050 $ 0.150 $ 0.080 $ 0.090 $ 0.140 $ 0.220 $ 0.200 $ 0.160 $ 0.070 $ 0.130 $ 0.320 $ 0.120 $ 0.200 $ 0.290 $ 0.450 $ 0.000 $ 0.000 $ 0.000 $ 0.000 $ 0.000 $ 0.000 $ 0.000 $ 0.000 $ 0.000 $ 0.000 $ 0.000 $ 0.000 $ 0.000 $ 0.000 $ 0.000 Total $ 0.260 $ 0.260 $ 0.350 $ 0.470 $ 0.260 $ 0.220 $ 0.235 $ 0.240 $ 0.220 $ 0.280 $ 0.280 $ 0.335 $ 0.360 $ 0.500 $ 0.560 $ 0.580 $ 0.300 $ 0.680 $ 0.840 27 Annual Report 2015 GLOBAL SELF STORAGE, INC. DIRECTORS AND OFFICERS (Unaudited) Additional Information The following table sets forth certain information concerning the directors currently serving on the Board of Directors of the Company, as of Jan- uary 19, 2016. The term of the Class I director shall last until the annual meeting of stockholders held in 2017 and until his successor is elected and qualifies. The term of the Class II directors shall last until the annual meeting of stockholders held in 2018 and until their successors are elected and qualify. The term of the Class III directors shall last until the annual meeting of stockholders held in 2019 and until their successors are elected and qualify. At each annual meeting of the stockholders of the Company, the successors to the class of directors whose term expires at that meeting shall be elected to hold office for a term continuing until the annual meeting of stockholders held in the third year following the year of their election and until their successors are elected and qualify. Unless otherwise noted, the address of record for the directors and officers is 11 Hanover Square, New York, New York 10005. INTERESTED DIRECTORS Name, Address, and Date of Birth Position(s) Held with the Company MARK C. WINMILL(3) November 26, 1957 Class III Director Director Since 2012 Class II Director 1997 THOMAS B.WINMILL, ESQ.(3) PO Box 4 Walpole, NH 03608 June 25, 1959 INDEPENDENT DIRECTORS* Number of Portfolios in Fund Complex Overseen by Director (1) Other Directorships Held by Director (2) None None 5 None Principal Occupation(s) for the Past Five Years President, Chief Executive Officer, and a Director or Manager of the Company, and its subsidiaries and Tuxis Corporation (a real estate company) and its subsidiaries (“Tuxis”). He is Vice President of the Fund Complex and Chief Investment Strategist of Bexil Advisers LLC and Midas Management Corporation (registered investment advisers and, collectively, the “Advisers”). He is Executive Vice President and a Director of Winmill & Co. Incorporated (a holding company) (“Winco”). He is a principal of Bexil Securities LLC and Midas Secu- rities Group, Inc. (registered broker-dealers and, collectively, the “Broker-Dealers”). He is Vice President of Bexil Corporation (a hold- ing company). He is the brother of Thomas B. Winmill. Vice President and a Director of the Company. He is Vice President of Tuxis. He is President, Chief Executive Officer, and a Di- rector or Trustee of the Fund Complex. He is President, Chief Exec- utive Officer, General Counsel, and a Director or Manager of the Advisers, the Broker-Dealers, Bexil Corporation, and Winco. He is a Director of Bexil American Mortgage Inc. He is a member of the New York State Bar and the SEC Rules Committee of the Investment Company Institute. He is the brother of Mark C. Winmill. Russell E. Burke III August 23, 1946 Class III Director 2016 He is President of Ninigret Trading Corporation, an art investment and appraisal company, and a Director of Tuxis. He is also a Board Member of the New Britain Museum of American Art. None None George B. Langa August 31, 1962 Class II Director 2016 He is Executive Vice President of Millbrook Real Estate, LLC, licensed real estate brokers in NY and CT.  He specializes  in  premium  Es- tates, Development, Land, Commercial and Agricultural Properties. None None William C. Zachary December 9, 1964 Class I Director 2016 Since 2011, he has been Director of Municipal Finance at Sun- Light General Capital, an owner and developer of solar energy systems located at schools, municipal buildings, and other small, institutional users. Prior to that, he was the head of Municipal Fi- nance at Société Générale. He is also a Director of Tuxis. None None (1) As of January 19, 2016, the “Fund Complex” is comprised of Dividend and Income Fund, Foxby Corp., and Midas Series Trust. Dividend and Income Fund, Foxby Corp., and Midas Series Trust are managed by affiliates of the Company. (2) Refers to directorships held by a director in any company with a class of securities registered pursuant to Section 12 of the Securities Exchange Act of 1934 or any company registered as an investment company under the Act, excluding those within the Fund Complex. (3) He is an “interested per- son” of the Company as defined in the Act due to his role as an officer of the Company. Messrs. Burke, Langa, and Zachary also serve on the Audit, Nominating, and Compensation Committees of the Board. Mr. Mark Winmill also serves on the Executive Committee of the Board. Each of the directors serves on the Continuing Directors Committee of the Board. *Effective January 19, 2016, Messrs. Burke, Langa, and Zachary were elected to serve as independent directors on the Board of Directors. Effective upon the election of Messrs. Burke, Langa, and Zachary, Messrs. Bruce B. Huber, James E. Hunt, and Peter K. Werner resigned as independent directors from the Board. GLOBAL SELF STORAGE, INC. Annual Report 2015 28 DIRECTORS AND OFFICERS (Unaudited) Additional Information The executive officers, other than those who serve as directors, and their relevant biographical information are set forth below. EXECUTIVE OFFICERS Name and Date of Birth Russell Kamerman, Esq. July 8, 1982 Officer Since* 2014 Position(s) Held with the Company Chief Compliance Officer, AML Officer, Associate General Counsel, Vice President and Assistant Secretary Principal Occupation(s) for the Past Five Years Chief Compliance Officer, Anti-money laundering Officer, Associate General Counsel, Vice President and Assistant Secretary of Tuxis, the Fund Complex, the Advisers, the Broker-Dealers, Bexil Corporation and Winco. He is a member of the New York State Bar and the Chief Compliance Officer Committee of the Investment Company Institute. Previously, he was an attorney in private practice focusing on regulatory, compliance and other general corporate matters relating to the structure, formation and operation of investment funds and investment advisers. Heidi Keating March 28, 1959 Robert J. Mathers May 5, 1967 Thomas O’Malley July 22, 1958 John F. Ramirez, Esq. April 29, 1977 Vice President Vice President, Operations Chief Financial Officer, Treasurer, Vice President General Counsel, Chief Legal Officer, Secretary, Vice President 1997 Vice President of Tuxis, the Fund Complex, the Advisers, the Broker-Dealers, Bexil Corporation, and Winco. 2012 Vice President, Operations of Tuxis. 2005 2005 Chief Financial Officer, Treasurer, and Vice President of Tuxis, the Fund Complex, the Ad- visers, the Broker-Dealers, Bexil Corporation, and Winco. He is a certified public ac- countant. General Counsel, Chief Legal Officer, Vice President, and Secretary of the Fund Complex and Tuxis. He is Vice President, Senior Associate General Counsel, and Secretary of the Advisers, the Broker-Dealers, Bexil Corporation, and Winco. He also is a member of the New York State Bar and the Investment Advisers Committee, Small Funds Committee, and Compliance Advisory Committee of the Investment Company Institute. *Officers hold their positions with the Company until a successor has been duly elected and qualifies. Officers are generally elected annually. The officers were last elected on December 9, 2015. 29 Annual Report 2015 GLOBAL SELF STORAGE, INC. (Unaudited) Additional Information GENERAL INFORMATION STOCK DATA Ticker Symbol CUSIP Number SELF 37955N106 2016 QUARTERLY DISTRIBUTION DATES Declaration March 1 June 1 September 1 December 1 Record March 15 June 17 September 16 December 15 Payment March 31 June 30 September 30 December 29 COMPANY INFORMATION Stock Transfer Agent and Registrar American Stock Transfer & Trust Company, LLC 6201 15th Avenue Brooklyn, NY 11219 www.amstock.com 1-800-278-4353 GLOBALSELFSTORAGEINC.COM Visit us on the web at www.GlobalSelfStorageInc.com. The site provides information about the Company, including market per- formance, dividends, press releases, and stockholder reports. For further information, please email us at info@GlobalSelfStorageInc.com. Cautionary Note Regarding Forward Looking Statements - This report contains certain “forward looking statements” as defined under the U.S. federal securities laws. Gen- erally, the words “believe,” “expect,” “intend,” “estimate,” “anticipate,” “project,” “will,” and similar expressions identify forward looking statements, which generally are not historical in nature. Forward looking statements are subject to certain risks and uncertainties that could cause actual results to materially differ from the Company’s histor- ical experience and its current expectations or projections indicated in any forward looking statements. These risks include, but are not limited to, real estate risk, leverage and borrowing risk, management risk, and other risks discussed in the Company’s filings with the Securities and Exchange Commission. You should not place undue reliance on forward looking statements, which speak only as of the date they are made. The Company undertakes no obligation to update or revise any forward looking statements made herein. Company Information - This report, including the financial statements herein, is transmitted to the stockholders of the Company for their information. This is not a prospec- tus, circular, or representation intended for use in the purchase of shares of the Company or any securities mentioned in this report. This communication shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of, these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state, or an exemption therefrom. GLOBAL SELF STORAGE, INC. Annual Report 2015 30 GENERAL INFORMATION (Unaudited) Additional Information 31 Annual Report 2015 GLOBAL SELF STORAGE, INC. GENERAL INFORMATION (Unaudited) Additional Information SELF STORAGE GROUP, INC. Semi-Annual Report 2014 32 BACK COVER Printed on Recycled Paper WWW.GLOBALSELFSTORAGEINC.COM SELF TICKER Printed on Recycled Paper 

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