Strategic Storage Growth Trust Inc. (SSGT), a public, non-traded, self-storage real estate investment trust (REIT) sponsored by SmartStop Asset Management LLC, has released its financial statement for the quarter that ended Sept. 30. In general, the company showed gains in revenue, net operating income (NOI) and occupancy.
SSGT increased same-store revenue by 14.7 percent, with NOI growing 19.3 percent, compared to the same period in 2016. Same-store occupancy was 94.9 percent as of Sept. 30, up from 91.3 percent the previous year. The REIT also reported growth in same-store annualized rent per occupied square foot, showing an increase of 11 percent ($12.69) year over year. Modified funds from operations grew approximately $1 million from a $100,000 loss during the same period last year.
Total revenue was $1.4 million during the quarter, a 56 percent increase compared to 2016, though the company reported a net loss of nearly $1.8 million for the period.
During the quarter, SSGT closed on two self-storage acquisitions—one in in Mount Pleasant, S.C., and the other in Nantucket, Mass.—for approximately $43.2 million. Combined, the assets comprise 141,000 net rentable square feet in about 1,340 units.
“Our same-store growth in revenue and NOI was largely driven by an increase in occupancy and rental rates over the past 12 months, while the portfolio grew with the acquisition of an existing operating property in Nantucket and a lease-up property in Mount Pleasant,” said H. Michael Schwartz, CEO. “The combination of same-store results and strategic acquisitions exemplifies the portfolio’s growth-oriented objectives.”
SSGT focuses on the acquisition, development, redevelopment and lease-up of self-storage properties. Its portfolio consists of 21 storage facilities in 10 states comprising approximately 1.6 million net rentable square feet in 13,700 storage units.
The REIT is sponsored by SmartStop Asset Management, a diversified real estate company with a managed portfolio of 108 self-storage facilities in Canada and the United States. Its managed properties comprise approximately 7.9 million rentable square feet.