Eyeing a Potential NYSE Listing, SmartStop Suspends Share Redemption, Distribution Reinvestment Plans
SmartStop Self Storage REIT Inc. – a self-managed and non-traded real estate investment trust focused on self-storage assets – announced in a letter to stockholders that the company’s board of directors has elected to suspend its share redemption program and distribution reinvestment plan, or DRP, as it considers “alternatives for stockholder liquidity,” which may take the form of a listing on a national securities exchange.
As a result of the suspensions, the REIT will not process any of the redemption requests in its queue, nor any future requests it receives unless the board resumes the share redemption program, if ever. Additionally, the distribution payments for the month of November, payable in mid-December, will be made in cash, as will any future distributions declared by the board barring a resumption of the DRP.
As The DI Wire previously reported, in April 2022, SmartStop filed a registration statement with the U.S. Securities and Exchange Commission for a proposed underwritten public offering in conjunction with the listing of its common stock on the New York Stock Exchange under the ticker symbol “SMST.” That registration statement has never been declared effective.
Should SmartStop now move forward with the listing, it would join American Healthcare REIT (NYSE: AHR) and Sila Realty Trust (NYSE: SILA), two formerly non-traded REITs that listed on the NYSE in 2024. AR Global’s Healthcare Trust, now known as National Healthcare Properties Inc., has also declared its intention to pursue a listing. Earlier this year National Healthcare internalized management in preparation for such an event.
SmartStop Self Storage REIT Inc. is a self-managed REIT with a fully integrated operations team of approximately 525 self-storage professionals. As of Nov. 13, 2024, SmartStop has an owned or managed portfolio of 203 operating properties in 22 states and Canada, comprising approximately 144,000 units and 16.2 million rentable square feet. Its most recent estimated net asset value per share of common stock was $15.25 as of Sept. 30, 2023.
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