Strategic Storage Growth Trust Inc. (SSGT) and Strategic Storage Trust II Inc. (SST II), both public, non-traded, self-storage real estate investment trusts (REIT) sponsored by SmartStop Asset Management LLC, have released their financial statements for the first quarter of 2018, which ended March 31. In general, the companies showed year-over-year gains in total revenue, same-store revenue and net operating income (NOI).

SSGT increased total revenue 61 percent percent to $1.7 million, while same-store revenue and NOI grew 10.1 percent and 20.4 percent, respectively, compared to the same period in 2017.

Average physical occupancy was 71.8 percent at the end of the quarter, down from 80.1 percent the previous year. The REIT reported growth in same-store annualized rent per occupied square foot, showing an increase of 14.3 percent ($13.66) year over year. Modified funds from operation grew 129 percent ($600,000) compared to the same period in 2017.

SSGT acquired two Florida self-storage facilities and one in California during the quarter for a combined $40.5 million. All three newly constructed properties were Certificate of Occupancy transactions.

“We continue to experience solid growth in SSGT’s portfolio, both in our same-store results and in our more recent lease-up acquisitions,” said H. Michael Schwartz, chairman and CEO.

After factoring operating and other income expenses, SSGT reported a net loss for the quarter of about $623,000, an improvement from a loss of $1.09 million from the same period a year ago. The REIT took in more than $4.2 million in self-storage rental revenue and $114,364 in ancillary operating revenue during the quarter.

SST II increased total revenue 12 percent to $2.2 million, while same-store revenue and NOI grew 7.9 percent and 13.9 percent, respectively, compared to the same period in 2017.

Average physical occupancy was 88.5 percent at the end of the quarter, down from 90.1 percent the previous year. The REIT reported growth in same-store annualized rent per occupied square foot, showing an increase of 12.8 percent ($15.64) year over year. Modified funds from operation grew 45 percent ($1.6 million) compared to the same period in last year.

“Our first quarter same-store growth continues to be strong, following the re-branding of our properties in the United States under the SmartStop Self Storage brand,” Schwartz said. “The increase in the first quarter of 2018 was primarily driven by an increase in rental rates, which demonstrates the institutional quality of the portfolio in conjunction with a solid property-management team and platform.”

After factoring operating and other income expenses, SST II reported a net loss for the quarter of about $667,000, an improvement from a loss of $5.2 million from the same period a year ago. The REIT took in more than $19.4 million in self-storage rental revenue and $434,042 in ancillary operating revenue during the quarter.

The SSGT portfolio includes 26 self-storage facilities in 10 states comprising approximately 1.9 million net rentable square feet in 17,300 units. 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 115 self-storage facilities in Canada and the United States. Its managed properties comprise approximately 8.4 million rentable square feet.