Strategic Storage Growth Trust Inc. (SSGT), a public, non-traded real estate investment trust (REIT) focused on self-storage acquisition and development, has released its financial statement for the fourth quarter of 2017, which ended Dec. 31. Total revenue increased 66 percent to $1.7 million, while same-store revenue and net operating income increased 10 percent and 14.9 percent, respectively, compared to the same period in 2016.
Same-store occupancy was 92.5 percent at the end of the year, up from 89.3 percent the previous year. The REIT also reported growth in same-store annualized rent per occupied square foot, showing an increase of 5.5 percent ($12.75) year over year.
Cash flow from operation increased 257 percent ($1.3 million) during the quarter, while modified funds from operation grew 292 percent ($1.2 million).
“With the seven acquisitions completed during 2017, as well as three additional properties acquired in the first quarter of 2018, we have deployed the capital raised during the closedown of our public offering into assets that we believe have positioned the company for continued growth as these properties stabilize” said H. Michael Schwartz, chairman and CEO. “We are excited to report continued double-digit growth in revenue and NOI for our same-store year-over-year comparisons in both the fourth quarter and fiscal year 2017.”
After factoring operating and other income expenses, SSGT reported a net loss for the year of about $3.95 million, up from a loss of $5.4 million in 2016. The REIT took in more than $13.6 million in self-storage rental revenue and $145,000 in ancillary operating revenue during the fiscal year.
SSGT focuses on the acquisition, development, redevelopment and lease-up of self-storage properties. Its portfolio currently consists of 25 storage facilities in 10 states comprising approximately 1.8 million net rentable square feet in 16,600 storage units. The company is sponsored by SmartStop Asset Management LLC, a diversified real estate company with a managed portfolio of 113 self-storage facilities in Canada and the United States. Its managed properties comprise approximately 8.2 million rentable square feet.