SmartStop Self Storage Inc., which operates 169 facilities in 21 states and Canada, has released its financial statement for the quarter that ended June 30, 2015. During the second quarter, the company increased same-store revenue 7.5 percent and net operating income (NOI) 15.9 percent compared to the same period in 2014.
Company officials attributed the favorable numbers, in part, to SmartStop’s self-administration and investment-management transaction last fall with Strategic Storage Holdings LLC and Strategic Storage Advisor LLC, which enabled it to become a self-managed entity. The financial report is also SmartStop’s first since announcing it is being acquired by self-storage real estate investment trust Extra Space Storage Inc. The Extra Space deal is expected to be finalized before the end of the year.
"We had a very exciting quarter, and we are happy to report that we have achieved our 14th consecutive quarter of year-over-year, same-store revenue and net operating income growth," said H. Michael Schwartz, CEO of SmartStop. “As previously announced, we have entered into a definitive merger agreement pursuant to which we will be acquired by Extra Space Storage Inc., and our stockholders will receive $13.75 per share in cash, representing a total purchase price of approximately $1.4 billion and a premium of approximately 27 percent over our most recently announced net asset value. Prior to consummating the merger, we will continue to provide investors with a regular cash distribution, and in short, we believe our operational results and the merger are a validation of our investment strategy."
Funds from operations (FFO) for the quarter grew 28 percent to $9.7 million year over year. Same-store average occupancy for the quarter increased to 89.3 percent compared to 87 percent during the same period in 2014.
Same-store annualized rent per occupied square foot was $11.36 for the second quarter, compared to $10.82 for the same period in 2014. Cash flow from operations increased 44 percent to $12.2 million year over year.
Formerly Strategic Storage Trust Inc., SmartStop Self Storage is a diversified real estate company that focuses on acquisition, advisory, asset-management and property-management services for self-storage properties. The company is also the sponsor, adviser and property manager for Strategic Storage Trust II Inc., a public, non-traded real estate investment trust (REIT) specializing in stabilized properties, and Strategic Storage Growth Trust Inc., a public, non-traded REIT focusing on self-storage acquisition and development.
- Digital Journal: SmartStop Self Storage, Inc. Reports Second Quarter 2015 Results