The board of SmartStop Self Storage REIT Inc., a publicly registered non-traded real estate investment trust formerly known as Strategic Storage Trust II Inc., has partially reinstated the company’s share redemption program, according to a filing with the Securities and Exchange Commission.
The board partially suspended the share redemption program on September 27, 2019, except with requests made in connection with a stockholder’s death, disability, confinement to a long-term care facility, or other exigent circumstances.
The board then fully suspended the program on April 29, 2020, citing the need to preserve cash in light of the uncertainty relating to COVID-19 and its potential impact on the company’s overall financial results. Due to the full suspension, the company was unable to honor redemption requests made during the first or second quarters of 2020.
The board has now partially reinstated the share redemption program, effective September 23, 2020, solely for redemptions sought in connection with a stockholder’s death, qualifying disability, or confinement to a long-term care facility.
All other redemptions will remain suspended at this time. However, the company said that it will honor “redemption requests made pursuant to exigent circumstances in connection with the partial suspension that were pending at the time of the full suspension and that have not since been revoked.”
The board also revised the redemption price per share for all redemptions under the program to be equal to the most recently published estimated net asset value per share. The most recent NAV per share is $10.40 for Class A and Class T shares, as of December 31, 2019.
SmartStop launched its initial public offering in January 2014 and raised $566 million in investor equity prior to closing in January 2017. The REIT has $1.6 billion of real estate assets under management, including an owned and managed portfolio of 144 properties in 19 states and Toronto.