SmartStop Self Storage REIT Recommends Shareholders Reject CMG Tender Offer
CMG Partners LLC and its affiliates have launched an unsolicited tender offer to purchase shares of SmartStop Self Storage REIT.
CMG Partners LLC and its affiliates have launched an unsolicited tender offer to purchase up to 200,000 Class A shares of SmartStop Self Storage REIT Inc., a publicly registered non-traded real estate investment trust, for $7.70 each.
SmartStop recently reported an estimated net asset value per share of $15.08 for its Class A and Class T shares, as of June 30, 2021. CMG’s offering price of $7.70 per share is nearly half of the current NAV.
In a letter to REIT shareholders, SmartStop recommended that investors “reject” the CMG tender offer and not sell their shares.
“We believe the CMG tender offer is an attempt to capitalize on the partial suspension of our share redemption program,” the letter stated. “Presently, our SRP is partially suspended (other than in certain cases such as death, disability, confinement to a long-term care facility or other exigent circumstances) in order to maintain operating flexibility, continue to invest in future business initiatives, and prepare for strategic alternatives.”
In other recent company news, SmartStop Self Storage REIT has released its third quarter 2021 financial results, as reported by The DI Wire.
SmartStop has approximately $1.8 billion of real estate assets under management, including an owned and managed portfolio of 158 properties in 19 states and Ontario, Canada comprising approximately 107,000 units and 12.2 million rentable square feet.
