Comrit Investments 1 and its affiliates have launched an unsolicited tender offer to purchase up to 316,600 Class A shares and 35,180 Class T shares of SmartStop Self Storage REIT Inc., a publicly registered non-traded real estate investment trust, for $11.37 each.
SmartStop’s most recent estimated net asset value per share was $15.08 for its Class A and Class T shares, as of June 30, 2021. CMG’s offering price of $11.37 per share is 25 percent less 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 Comrit tender offer is an attempt to capitalize on the partial suspension of our share redemption program,” the REIT stated. “Presently, our [share redemption program] 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.”
Comrit has made four prior tender offers for the REIT’s shares – in the second quarter of 2021 at $8.53 per share, in the first quarter of 2021 at $7.22 per share, in the first quarter of 2020 at $7.73 per share, and in the fourth quarter of 2019 at $7.84 per share.
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.