SmartStop Self Storage REIT Inc., a self-managed real estate investment trust (REIT), has released its financial statement for the second quarter, which ended June 30. In general, the company showed modest year-over-year gains in total revenue, same-store revenue and net operating income (NOI), which it attributed to impact from the coronavirus pandemic.
The company increased total self-storage revenue by .9 percent, or $200,000, compared to the same period in 2019. Same-store revenue fell .3 percent, though same-store NOI grew 7.2 percent. Adjusted funds from operation (FFO) grew approximately $700,000, or 131 percent, compared to the second quarter last year.
Same-store average occupancy was 89.7 percent for the quarter, up slightly from 89.5 percent in 2019. The REIT reported same-store annualized rent per occupied square foot of $15.30 for the quarter, which was a .7 percent decline.
“While there is no doubt that COVID-19 had an impact on all businesses, self storage has remained relatively stable in the midst of this pandemic,” said H. Michael Schwartz, executive chair. “It speaks to the power of the SmartStop platform and the investments made in technology over the years that we were able to continue to grow occupancy and revenues during the second quarter. Additionally, the transformation of SmartStop Self Storage REIT into a self-managed company last year is continuing to bear fruit in the form of FFO, as adjusted growth, despite macroeconomic headwinds.”
After factoring in operating expenses and other costs, SmartStop reported a net loss for the quarter of about $7 million, compared to a loss of $2.2 million in 2019. The REIT took in more than $24.9 million in self-storage rental revenue and more than $1.1 million in ancillary operating revenue during the three months.
The company opened a facility in Greater Toronto during the quarter. It comprises 85,000 rentable square feet in 840 units.
Through its indirect subsidiary SmartStop REIT Advisors LLC, SmartStop sponsors other self-storage programs, including Strategic Storage Trust IV Inc., a public non-traded REIT. It has approximately $1.6 billion of real estate assets under management, including an owned and managed portfolio of 144 self-storage properties in 19 states and Toronto that comprises 10.9 million rentable square feet.
PR Newswire, SmartStop Self Storage REIT Inc. Reports 2020 Second Quarter Results and Highlights