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 $10.65 for its Class A and Class T common stock, as of December 31, 2017.
The current net asset value per share is an increase of 4.2 percent compared to last year’s estimated NAV of $10.22 per share.
“We are very pleased with the increase in valuation of the Strategic Storage Trust II Inc. portfolio,” said H. Michael Schwartz, chairman and chief executive officer of SST II. “The increase in our estimated per share net asset value validates our investment thesis of acquiring stabilized self storage properties, as well as the expertise of our management team, which continues to drive long-term value for our investors.”
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 December 31, 2017.
The company engaged Duff & Phelps LLC, an independent third-party real estate valuation and advisory firm, to provide valuation services of its assets and liabilities.
After reviewing Duff & Phelps’ valuation report, the REIT’s nominating and corporate governance committees concluded that the valuation range of $9.98 to $11.35 per share, with an approximate mid-range value per share of $10.65, was reasonable and recommended that the board adopt $10.65 as the estimated value per share.
The valuation included 83 self storage properties and two vacant land parcels that were originally purchased for approximately $838 million. The total appraised value of the properties at the midpoint was approximately $1 billion, representing a roughly 19.3 percent increase in the total value over the aggregate purchase price.
The 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 focuses on stabilized self storage properties and oversees a portfolio of 83 self storage facilities located in 14 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.