Skip to content
The DI Wire
Click Here to Subscribe to Our Free Daily News Updates

SmartStop Self Storage Reports Results for Q2 of 2023

SmartStop Self Storage REIT Inc., a self-managed and fully integrated non-traded real estate investment trust, announced its overall results for the second quarter of 2023.

“In the face of difficult year over year comparables, normalization of pandemic-related demand drivers, and a slowdown in the housing market, our performance in the second quarter demonstrated both the power of the SmartStop platform as well as the benefits of the strategic diversification of our North American portfolio,” said H. Michael Schwartz, chairman and chief executive officer of SmartStop.

SmartStop reported that net income attributable to common stockholders was approximately $0.4 million. This represents a decrease in the company’s earnings of approximately $8.7 million when compared to the same period in 2022. The net income per Class A and Class T shares (diluted) was $0.00, a decrease per share of $0.10 when compared to the same period in 2022.

The company says total self-storage-related revenues were approximately $53.9 million, an increase of approximately $5.3 million when compared to the same period in 2022.

FFO, as adjusted was approximately $15.5 million, a decrease of approximately $1.9 million when compared to the same period in 2022. FFO, as adjusted per share and OP unit outstanding – diluted was $0.14, a decrease of $0.03 when compared to the same period in 2022.

Same-store revenues, expenses and net operating income increased by 5.3%, 13.7% and 1.9%, respectively, compared to the same period in 2022.

Same-store average physical occupancy decreased by 1.8% to 93.7% compared to the same period in 2022.

Same-store annualized rent per occupied square foot was approximately $19.99, an increase of approximately $1.49 when compared to the same period in 2022.

SmartStop also serves as the sponsor of Strategic Storage Growth Trust III Inc. and Strategic Storage Trust VI Inc. During the quarter, assets under management for the managed REITs increased by $259.7 million to approximately $698.6 million.

Additionally, the company has made investments in the managed REITs in the form of mezzanine loans, notes and preferred limited partnership interests in the operating partnerships of the respective managed REITs. During the quarter, SST VI fully repaid the outstanding principal, plus all applicable accrued interest due on the SST VI Mezzanine Loan for a total amount of approximately $51.7 million.

SST VI also fully redeemed SmartStop’s preferred investment of 600,000 Series A Cumulative Redeemable Preferred units of limited partnership interest in Strategic Storage Operating Partnership VI L.P., the operating partnership for SST VI, and repaid accrued distributions due as of the date of redemption for a total amount of approximately $15.1 million.

SmartStop is a self-managed REIT with an owned or managed portfolio managing 192 operating properties in 22 states and Canada, comprising approximately 135,000 units and 15.2 million rentable square feet.

For more SmartStop news, please visit their directory page.