Strategic Storage Trust II Inc. (SST II), a public, non-traded, self-storage real estate investment trusts (REIT) sponsored by SmartStop Asset Management LLC, has released its financial statement for the third quarter of 2018, which ended Sept. 30. In general, the company showed year-over-year gains in total revenue, same-store revenue and net operating income (NOI).
SST II increased total revenue 1.9 percent to $400,000, while same-store revenue and NOI grew 1 percent and 1.4 percent, respectively, compared to the same period in 2017.
Same-store occupancy was 89.3 percent at the end of the quarter, down from 93.7 percent the previous year. The REIT reported growth in same-store annualized rent per occupied square foot, showing an increase of 6.2 percent ($16.01) year over year. Modified funds from operation increased 12.5 percent to $600,000 compared to the same period last year.
“Our results for 2018 kept pace with our expectations, with strong performance from the Southern California and Las Vegas markets,” said H. Michael Schwartz, CEO and chairman. “Additionally, we are excited for the opportunity to consolidate Strategic Storage Growth Trust, Inc. with SST II in early 2019. The SSGT portfolio will infuse SST II with a key growth driver, along with adding assets in strategic SST II markets for further economies of scale. The combined entities will create a portfolio of over 100 properties with combined value well in excess of $1 billion.”
After factoring operating and other expenses, SST II reported a net loss for the quarter of about $457,278, an improvement from a loss of nearly $3.9 million from the same period a year ago. The REIT took in more than $19.7 million in self-storage rental revenue and $516,930 in ancillary operating revenue during the quarter.
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. Both companies are sponsored by SmartStop Asset Management, a diversified real estate company with a managed portfolio of 126 self-storage facilities in Canada and the United States. Its managed properties comprise approximately 9.3 million rentable square feet.