The board of Strategic Storage Trust II Inc., a publicly registered non-traded real estate investment trust sponsored by SmartStop Asset Management, has approved an estimated per share net asset value of $10.66 for its Class A and Class T common stock, as of March 31, 2019. Previously, the board approved an estimated NAV of $10.65 per share, as of December 31, 2017.
“We are pleased to announce the updated net asset valuation of Strategic Storage Trust II, Inc., inclusive of the Strategic Storage Growth Trust acquisition,” said Michael McClure, president of SST II. “The institutional quality of our self-storage portfolio, paired with the growth potential of the SSGT properties, has maintained NAV while also growing revenues and operating income.”
The estimated per share NAV is based on the estimated value of the company’s assets less the estimated value of its liabilities, or net asset value, divided by the number of shares outstanding on an adjusted fully diluted basis, calculated as of March 31, 2019.
Robert A. Stanger & Co. Inc., an independent third-party valuation firm, assisted with the valuation process.
The REIT acquired its 113 real estate assets for approximately $1.2 billion and invested approximately $19.5 million subsequent to purchase. The total estimated value of the properties was approximately $1.4 billion, representing an approximate 15.3 percent increase in the total value over the aggregate purchase price.
Stanger’s appraisals were performed in accordance with the Uniform Standards of Professional Appraisal Practice, the real estate appraisal industry standards created by The Appraisal Institute, as well as the requirements of the state where each real property is located.
The valuation was performed in accordance with practice guidelines set by the Institute for Portfolio Alternatives (formerly the Investment Program Association).
Strategic Storage Trust II invests in stabilized self-storage properties and oversees a portfolio of 112 properties located in 17 states and Ontario, Canada. The offering was declared effective by the SEC in January 2014 and closed three years later after raising $570 million in investor equity.
SmartStop sponsors four public non-traded REITs: Strategic Storage Trust IV Inc., Strategic Storage Trust II Inc., and Strategic Storage Growth Trust Inc., all focused on self-storage assets, and Strategic Student & Senior Housing Trust Inc., focused on student and senior housing assets. SmartStop is also a national sponsor of Section 1031 exchange offerings using the Delaware statutory trust structure.