Sponsor of Strategic Storage Trust VI to Front Sales Expenses

Strategic Storage Trust VI Inc., a publicly registered non-traded real estate investment trust sponsored by an affiliate of SmartStop Self Storage REIT Inc., announced in a letter to stockholders that the company’s sponsor will begin paying all of the up-front sales expenses related to its ongoing public offering of stock beginning Nov. 1, 2023.

As a result, the company will cease the sale of Class A, Class T, and Class W shares in its primary offering and will instead begin issuing Class Y and Class Z shares priced at $9.30 each.

In exchange for assuming payment of the sales load, the sponsor will receive Series C convertible subordinated units of their operating partnership equal to the dollar amount of such funding divided by the then-current offering price (initially $9.30 per share) for the Class Y and Class Z shares sold in the offering. The Series C units will initially have no distribution, voting or other rights to participate in the operating partnership unless and until such Series C units are converted into Class A units of the operating partnership. The Series C units will automatically convert into Class A units on a one-to-one basis upon the disclosure of an estimated net asset value per share equal to at least $10.00 per share for all other shares (inclusive of the Series C units being converted).

Strategic Storage Trust VI says that this change will result in more subscription funds being invested in property acquisitions, which will potentially allow the company to acquire a larger and more diversified portfolio, which they “believe will be beneficial to all of our stockholders.”

The company says that if they begin selling Class Y and Class Z shares on Nov. 1, the last day to purchase Class A, Class T or Class W shares in their primary offering will be Oct. 31, 2023.

Stockholders who own Class A shares will receive a one-time stock dividend equivalent to approximately 0.11075 shares of Class A common stock for every Class A share owned; stockholders who own Class T shares will receive a one-time stock dividend equivalent to approximately 0.07526 shares of Class T common stock for every Class T share owned; and stockholders who own Class W shares will receive a one-time stock dividend equivalent to approximately 0.01075 shares of Class W common stock for every Class W share owned. The record date for such dividend is expected to be Nov. 15, 2023.

Effective with redemption requests made in the fourth quarter of 2023, Class A, Class T and Class W stockholders may redeem their shares at 93% of the then-current offering price of the new Class Y and Class Z shares (initially $9.30 per share) until the company conducts its first NAV per share calculation. Thereafter, the redemption price per share will be equal to 93% of the then-current NAV per share.

As of June 30, 2023, Strategic Storage Trust VI Inc. owned 24 operating self-storage facilities in seven states and three Canadian provinces, joint venture interests in three development properties in Canada, as well as two wholly owned development properties in the U.S. acquired for an aggregate purchase price of approximately $502 million.

The company launched a private offering of up to $200 million in shares of its common stock on Feb. 26, 2021. The private offering was terminated on March 17, 2022 after raising approximately $100.7 million of equity. A subsequent public offering of up to $1 billion was declared effective that same day. As of June 30, 2023, the public offering has raised gross proceeds of approximately $70.3 million.

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