Strategic Storage Trust II Inc. (SST II), a public, non-traded, self-storage real estate investment trust (REIT) sponsored by SmartStop Asset Management LLC, has released its financial statement for the fourth quarter of 2017, which ended Dec. 31. Total revenue increased 30 percent to $4.4 million, while same-store revenue and net operating income increased 5.7 percent and 9.3 percent, respectively, compared to the same period in 2016.
Average physical occupancy was 91.6 percent at the end of the year, down from 92.5 percent the previous year. The REIT also reported growth in same-store annualized rent per occupied square foot, showing an increase of 6.8 percent ($15.01) year over year. Modified funds from operation grew 44 percent ($1.5 million) compared to the same period in 2016.
“2017 was a solid year for SST II, specifically strong same-store growth and the re-introduction of the SmartStop Self Storage brand to our facilities in the United States,” said H. Michael Schwartz, chairman and CEO. “We believe our professional management and industry experience will continue to drive same-store growth as our portfolio matures.”
After factoring operating and other income expenses, SST II reported a net loss for the year of about $15 million, up from a loss of $26.1 million in 2016. The REIT took in more than $74.4 million in self-storage rental revenue and $700,600 in ancillary operating revenue during the fiscal year.
The SST II portfolio includes 83 self-storage facilities in Canada and the United States. It comprises approximately 51,300 self-storage units and about 6 million rentable square feet of storage space. 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.