Strategic Storage Trust VI Refinances Loans for Four Canadian Properties

Strategic Storage Trust VI Inc. – a publicly registered non-traded real estate investment trust sponsored by an affiliate of SmartStop Self Storage REIT Inc. – has refinanced loans for four of its Canadian properties for CAD $64 million. This activity addresses the loans’ upcoming 2025 maturities and will effectively reduce SST VI’s interest rate by approximately 100 basis points as compared to the previous loans.
The refinancing includes three properties in the Greater Toronto Area, Ontario, and one in Edmonton, Alberta, which are, according to SST VI, integral to its portfolio. They were acquired in various stages of lease-up with an average occupancy of approximately 57% at acquisition, which has increased to an average occupancy of approximately 87% as of Dec. 31, 2024. By securing more favorable terms, SST VI said it continues to demonstrate “its commitment to financial prudence and enhancing shareholder value.”
SST VI’s primary investment strategy is to invest in income-producing and growth self-storage facilities and related self-storage real estate investments in the United States and Canada.
“We are thrilled to have completed this refinancing, which not only addresses our near-term maturities but also significantly reduces our interest expenses,” said H. Michael Schwartz, chairman and chief executive officer of SST VI. “This achievement underscores our proactive approach to managing our balance sheet and our dedication to driving long-term growth.”
National Bank of Canada served as the Lead Arranger and Sole Bookrunner for the completed loan. The REIT said the new financing arrangements reflect its strong credit profile and the continued confidence of its lending partners.
As of Jan. 14, 2025, SST VI had a portfolio of 13 operating properties in the United States comprising approximately 9,050 units and 1.08 million rentable square feet (including parking); 11 properties with approximately 10,200 units and approximately 1.04 million (including parking) in Canada, joint venture interests in one operational and four development properties in two Canadian provinces (Ontario and Québec) – one of these a self-storage facility in the Stoney Creek neighborhood of Hamilton in Ontario – and one wholly owned development property in Ontario.
In related activity, the REIT provided a third quarter 2024 update last month. It reported revenues of $7.28 million as of Sept. 30, 2024, a 15.8% increase year-over-year.
SST VI is an affiliate of SmartStop Self Storage REIT Inc., a self-managed real estate investment trust. As of Jan. 14, 2025, SmartStop has an owned or managed portfolio of 211 operating properties in 22 states, the District of Columbia, and Canada, comprising approximately 151,000 units and 16.9 million rentable square feet. SmartStop and its affiliates own or manage 38 operating self-storage properties in Canada, which total approximately 32,900 units and 3.4 million rentable square feet.
For more SmartStop news, please visit their directory page.