SmartStop Self Storage REIT Reports Mixed Results in Q2 2024, Continues Canadian Expansion
SmartStop Self Storage REIT, Inc., a self-managed and non-traded real estate investment trust focused on self-storage assets, announced its second quarter results for 2024.
“We are pleased with our second quarter operating results, with sector leading same-store revenue growth,” said H. Michael Schwartz, chairman and chief executive officer of SmartStop. “We saw improving customer demand throughout our peak rental season and achieved a strong quarter-end same-store occupancy of 92.9%. Our [Greater Toronto Area] portfolio continues to outperform, with same-store revenue and [net operating income] growth of 4.3% and 6% on a constant currency basis, respectively.”
The company’s net loss attributable to common stockholders was approximately $3.8 million. This represented a decrease in the company’s earnings of approximately $4.2 million when compared to the same period in 2023. Net loss per Class A and Class T shares (basic and diluted) was $0.04, an increase in net loss per share of $0.04 as compared to the same period in 2023.
“The recovery in the U.S. single-family home market activity did not come to fruition during the quarter, leading to a challenging move-in rate environment and continued sector-wide competition. I’m proud of the efforts of the SmartStop team, and for our continued focus on enhancing our technology, as a differentiated factor of our ability to compete in a competitive U.S. storage market,” said Schwartz.
During the quarter, the company acquired a self-storage property in Colorado Springs, Colo., its second property in that market. The property comprises 480 storage units and approximately 100 RV parking spaces, as well as additional land available for expansion.
SmartStop also opened a 95,000-square-foot, 930-unit storage facility in the Town of Markham in the Greater Toronto Area of Ontario. The facility was developed in partnership with SmartCentres. This is SmartStop’s 33rd owned or managed operating location in the Greater Toronto Area and 35th in Canada, as of quarter end.
The company also declared June and July 2024 gross distributions of $0.0508 per share versus $0.0492 in April and May.
Total self-storage-related revenues were approximately $55 million at the end of June 2024, an increase of approximately $1.1 million when compared to the same period in 2023. Funds from operations as adjusted (attributable to common stockholders and operating partnership unit holders), was approximately $12.4 million, a decrease of approximately $3.8 million when compared to the same period in 2023. FFO, as adjusted per share and OP unit outstanding – diluted was $0.11, a decrease of approximately $0.04 when compared to the same period in 2023.
Same-store revenues and expenses increased by 1.3% and 5.3%, respectively, while same-store net operating income NOI decreased by 0.6% compared to the same period in 2023.
Same-store average physical occupancy decreased by 1.1% to 92.5% compared to the same period in 2023. Same-store annualized rent per occupied square foot was approximately $20.15, an increase of approximately $0.36 when compared to the same period in 2023.
SmartStop is a self-managed REIT with an owned or managed portfolio managing 200 operating properties in 26 states and Canada, comprising 16 million rentable square feet. Shares of SmartStop Self Storage REIT most recently traded on LODAS Markets, previously known as Realto, for $9.90.
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