SmartStop Self Storage REIT Inc., a publicly registered non-traded real estate investment trust formerly known as Strategic Storage Trust II, has approved an estimated per share net asset value of $10.40 for its Class A and Class T common stock, as of December 31, 2019. Previously, the board approved an estimated NAV of $10.66 per share, as of March 31, 2019.
The estimated per share NAV is based on the estimated value of the company’s assets less the estimated value of its liabilities, or net asset value, divided by the number of shares outstanding on an adjusted fully diluted basis, calculated as of December 31, 2019. Robert A. Stanger & Co. Inc., an independent third-party valuation firm, assisted with the valuation process.
The REIT acquired its 114 real estate assets for approximately $1.2 billion and invested approximately $26.6 million subsequent to purchase. The total estimated value of the properties was approximately $1.5 billion, representing an approximate 16.5 percent increase in the total value over the total purchase price.
SmartStop Self Storage REIT’s total assets increased from approximately $1.4 billion in the March 2019 valuation to $1.6 billion as of December 31, 2019, while its total liabilities decreased from $801.8 million to $756.2 million for the same period.
Another factor in the NAV calculation was a preferred stock purchase agreement with Extra Space Storage LP to purchase up to $200 million in shares of Series A Convertible Preferred Stock. The initial closing in the amount of $150 million occurred in October 2019, as noted in the valuation.
The NAV per share was calculated prior to the emergence of coronavirus (COVID-19) in the United States.
“While the company is continuously monitoring the effect of the COVID-19 pandemic on the global economy and the self-storage industry in general, the company is not able to quantify the potential impact on its estimated per share NAV until it has greater visibility into how the spread of the disease may affect the company’s operations or the broader economic environment,” the company said in a filing with the Securities and Exchange Commission.
SmartStop Self Storage REIT is a self-managed REIT that also sponsors other self-storage programs through its indirect subsidiary SmartStop REIT Advisors LLC, including Strategic Storage Trust IV Inc., a non-traded REIT.
The company launched its initial public offering in January 2014 and raised $556 million in investor equity prior to closing in January 2017. The company continues to raise equity through its distribution reinvestment plan, and as of the fourth quarter of 2019, raised $48.1 million in DRP proceeds.
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