Welcome to Hudson Industrial Equities

February 19, 2016

The Company reported record breaking operating results for the year ending 12/31/15. Net Operating Income rose 14.6% year over year and overall economic occupancy averaged 95.2% for the year. The Company also completed a successful cash-out refinancing in July 2015. The new first mortgage has a 10 year term, a fixed interest rate equal to 4.4 % interest only for two years converting to a partially amortizing loan for the balance of the term.

2016 will likely see an increase in new self storage construction in the Bay Area due to the low vacancy rates and rising rents we have experienced since 2012. The Company has recently become aware of several potentially competitive developments within our trade area, perhaps the most significant being the expansion of the former All Season self storage located ½ mile north of our facility on Osgood Road. This property was recently purchased by Storage Solutions and is in Planning for a significant (+/-80,000 sf) expansion. There are also several large facilities in planning in Milpitas which represent the very southern edge of our competitive market area. Management will keep close tabs on these developments in order to respond quickly and decisively when the time arises.

All and all we expect the current trend in strong occupancy and rising rents to continue through 2016 with the possibility of added competition creating pressure on rents and occupancy in 2017.

February 18, 2016

The Company is pleased to report that it has received a construction loan commitment from Comerica Bank for the Oakland Road Self Storage project. The general terms and conditions of the credit facility offered are consistent with earlier projections with an even lower rate of interest than was initially estimated. Pending receipt of the PD and Building Permits, the Company plans to start construction in April of 2016.

December 9, 2015

Last night, by unanimous vote, the San Jose City Council approved the Company’s proposed rezoning of its 1785 Oakland Road development venture. The approval clears the way for the Company to move forward with its plans to develop a 75,000 square foot self storage facility on the property. The next step in the process is to obtain a PD Permit followed by a Building Permit. The Company is projecting a start of construction date on or about 2 April, 2016. Additional information on the project may be found under the tab “Current Projects”.