SmartStop Self Storage REIT Inc., which operates facilities in 19 U.S. states and Toronto, is in talks with underwriters about potentially listing an initial public offering (IPO). Though no decisions have been made, an IPO could occur sometime this year. The company could also decide to remain a self-managed real estate investment trust. If it pursues an IPO, proceeds would most likely be used to fund future growth, according to a report from Bloomberg.
SmartStop officials haven’t commented publicly. The company reported second-quarter earnings on Tuesday, indicating record occupancy and an active pursuit of acquisition opportunities. “Our acquisition pipeline remains healthy,” said H. Michael Schwartz, chairman and CEO.
In June, the company acquired Full House Self Storage in Las Vegas and Super Storage in Riverside, California. The former transaction was made by Strategic Storage Trust VI Inc. (SST VI), a private REIT sponsored by a SmartStop affiliate. In April, SmartStop purchased Access Storage in Oakville, Ontario, Canada, while SST VI announced its intention to develop a six-story facility in the Weston neighborhood of Toronto.
SmartStop ranked No. 11 on the 2021 Inside Self-Storage Top-Operators Lists, reporting an owned portfolio of 166 facilities comprising more than 12.7 million rentable square feet.
Publicly traded U.S. self-storage REITs CubeSmart, Extra Space Storage Inc., Life Storge Inc., National Storage Affiliates Trust and Public Storage Inc. are all trading at or near 52-week highs, Bloomberg reported.
SmartStop is headquartered in Ladera Ranch, California. Through its indirect subsidiary SmartStop REIT Advisors LLC, it sponsors other self-storage programs, including SST VI. It has approximately $1.7 billion of real estate assets under management.
Regina Leader-Post, SmartStop Self Storage REIT Is Considering an IPO