SmartStop Self Storage REIT Inc., a self-managed real estate investment trust that operates the SmartStop Self Storage brand, has released its financial statement for the third quarter, which ended Sept. 30. In general, the company showed year-over-year gains in total revenue, same-store revenue and net operating income (NOI).
The company increased total revenue 46 percent to $9.3 million during the quarter, while same-store revenue and NOI grew 2.1 percent and 9.3 percent, respectively, compared to the same period in 2018. Adjusted funds from operation (FFO) fell about $3.5 million, or 67 percent, compared to the same quarter in 2018. The large fluctuations in revenue and FFO were attributed primarily to the company’s January merger with Strategic Storage Growth Trust Inc. (SSGT).
Same-store average occupancy was 89.4 percent for the quarter, up slightly from 89.2 percent in 2018. The REIT reported growth in same-store annualized rent per occupied square foot, showing an increase of 1.7 percent ($16.22).
“The third quarter was the first full quarter for SmartStop operating as a self-managed company, and we grew revenue 46 percent while expanding our self-storage platform,” said Michael McClure, CEO. “During the quarter, we completed the acquisition of a Certificate-of-Occupancy property and continued to lease up the SSGT portfolio. In October, we completed the issuance of a new class of preferred stock to Extra Space Storage Inc. for up to $200 million, a transaction that solidified our balance sheet, reduced our leverage, and provides us flexibility to grow in the future.”
After factoring operating and other expenses, SmartStop reported a net loss for the quarter of about $9.5 million, up from a loss of $457,278 in 2018. The REIT took in more than $25.6 million in self-storage rental revenue and nearly $1.2 million in ancillary operating revenue during the three months.
The SmartStop portfolio includes 112 self-storage facilities in Canada and the United States. It comprises approximately 91,000 units and about 10.4 million rentable square feet. Through its indirect subsidiary SmartStop REIT Advisors LLC, it also sponsors Strategic Storage Trust IV Inc., a public non-traded REIT specializing in self-storage, and other private programs.