Strategic Student & Senior Housing Trust Inc., a publicly registered non-traded real estate investment trust sponsored by SmartStop Asset Management LLC, has suspended its primary public offering and share redemption program, as well as distributions to shareholders, citing the coronavirus (COVID-19) pandemic and its potential financial impact on the company.
“There is no way to predict the extent to which COVID-19 will impact our overall financial results,” the company said in a letter to shareholders. “In light of such, we believe it is prudent to retain cash and preserve financial flexibility.”
Last month, the REIT’s public offering was extended until May 1, 2021, however, due to recent events, the board approved the suspension of the offering effective immediately.
The board also suspended the share redemption program, effective May 3, 2020. Redemption requests made for the first quarter of 2020 will not be honored, nor will future requests, until further notice.
Strategic Student & Senior Housing Trust invests in Class A student housing and senior housing communities and owns two student housing properties and four senior housing properties. The REIT raised approximately $93 million from its private offering which ended in March 2018, and its public offering was declared effective in May 2018. As of March 16, 2020, the company raised $17 million in investor equity in its primary public offering.
For more SmartStop news, please visit their directory page here.