Home Alts News SmartStop REIT Reinstates DRIP and Partially Reinstates Share Redemptions

SmartStop REIT Reinstates DRIP and Partially Reinstates Share Redemptions

SmartStop Self Storage REIT Inc., a publicly registered non-traded real estate investment trust, announced the board’s decision to reinstate the company’s distribution reinvestment plan and partially reinstate the share redemption program.

As The DI Wire previously reported in March 2022, the board of SmartStop approved the suspension of the company’s distribution reinvestment plan and share redemption program “in connection with its process for reviewing alternatives in order to provide liquidity to its stockholders.”

The company announced that while it continues to review alternatives for stockholder liquidity, it would “be in the best interests of the company” to reinstate the DRP at this time.

SmartStop says distributions for the month of March, which will be paid in April, will be invested in shares of the company’s common stock for those stockholders that had previously elected to participate in the DRP. The board approved a per share DRP price of $15.21, which is the most recently published estimated net asset value per share.

The board also determined to partially reinstate the SRP, solely for redemptions sought in connection with a stockholder’s death, “qualifying disability,” confinement to a long-term care facility or other exigent circumstances. SmartStop says all other redemptions will remain suspended at this time.

In connection with the partial SRP reinstatement, the company intends to honor redemption requests previously made, and not subsequently revoked, while the SRP was fully suspended so long as the requests are subsequently reconfirmed by its transfer agent and meet their eligibility criteria. Smartstop says that under the terms of the SRP, the redemption price per share will also be the NAV.

In April 2022, the company filed a registration statement with the Securities and Exchange Commission for a proposed underwritten public offering in conjunction with the listing of its common stock on a national securities exchange.

SmartStop is a self-managed REIT with an owned or managed portfolio of 153 properties in 19 states and Ontario, Canada, comprising approximately 103,000 units and 11.8 million rentable square feet, as of Dec. 31, 2022.

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