Affiliate real estate investment trusts (REITs) sponsored by SmartStop Asset Management LLC, a diversified real estate company specializing in self-storage, have released their financial statements for the quarter that ended June 30, 2016. During the second quarter, Strategic Storage Trust II Inc. (SST II) and Strategic Storage Growth Trust Inc. (SSGT)—both public, non-traded REITs—increased same-store revenue 11 percent and 18.3 percent, respectively, with net operating income (NOI) growing 7.8 percent and 28 percent, respectively, compared to the same period in 2015.
Same-store occupancy for SST II was 90.7 percent as of June 30. SSGT reported same-store occupancy of 89.3 percent. Both figures increased from a year ago. Similarly, both REITs reported positive growth in same-store annualized rent per occupied square foot, with SST II showing 7.2 percent growth ($13.29) and SSGT increasing 7.1 percent ($10.23) year over year.
“We are pleased to report our second-quarter results,” said H. Michael Schwartz, CEO. “We are also particularly pleased with our year-over-year same-store occupancy and revenue growth. These results validate the upside we saw in these properties, and we look forward to similar continued operational improvements.”
SST II acquired 23 self-storage properties during the quarter for approximately $368 million, while SSGT purchased two assets for about $9.5 million. The combined assets comprise more than 2.1 million rentable square feet.
After factoring operating and other income expenses, SST II reported a net loss for the quarter of $10.7 million, while SSGT tallied a net loss of about $1.3 million.
SST II focuses on stabilized self-storage properties. Its portfolio includes more than 60 facilities in 14 states and the Toronto market, comprising approximately 4.8 million rentable square feet. SSGT focuses on the acquisition, development and lease-up of self-storage properties. Its portfolio includes 14 facilities in seven states comprising approximately1.1 million net rentable square feet.
SmartStop Asset Management has a managed portfolio of 89 self-storage facilities comprising 6.7 million rentable square feet in Canada and the United States.