SmartStop Self Storage Inc., a fully integrated and self-administered real estate investment trust (REIT), has released its financial results for the quarter that ended Sept. 30. The company reported year-over-year same-store revenue and net operating income (NOI) increases of 7.8 percent and 14.9 percent, respectively, for the third quarter. Same-store average occupancy increased 3.3 percent to 87.8 percent compared to the same period in 2013.
"We ended the third quarter with strong results, driven by continued increases in same-store revenues and net operating income," said H. Michael Schwartz, CEO.
The company also decreased its property operating expenses as a percentage of revenue to 30.9 percent during the quarter from 34 percent during the same quarter in 2013.
For the first nine months of 2014, SmartStop posted an 8 percent increase in same-store revenue and a gain of 12.8 percent in NOI, compared to the first nine months last year. Same-store average occupancy for the nine months increased 3.2 percent year over year to 85.9 percent.
The company’s board of directors declared a fourth-quarter distribution of $0.001917808 per day per share on the outstanding shares of common stock. It’s equivalent to an annual distribution rate of 7 percent, assuming the share was purchased for $10, and approximately 6.5 percent, assuming the share was purchased for $10.79.
During the third quarter, SmartStop completed its self-administration and investment-management transaction, formally changing its name from Strategic Storage Trust Inc. “These changes have reduced our cost structure, aligned management more closely with our shareholders, and we are now self-administered with more than 300 self-storage employees and other professionals,” Schwartz said.
SmartStop is a fully integrated, self-administered REIT that operates 136 properties in 17 states and Canada. It also serves as the sponsor, adviser and property manager for two recently launched self-storage REITs: Strategic Storage Trust II Inc. (SSTI-II) and Strategic Storage Growth Trust Inc. (SSGT). SSTI-II is a public, non-traded REIT specializing in “stabilized” self-storage properties, and SSGT is a private REIT focusing on the acquisition and development of self-storage properties.