SmartStop Self Storage Reports Record Revenue and NOI Growth for Q2 2021

August 17, 2021 | SmartStop Self Storage REIT, Inc.

SmartStop Self Storage REIT, Inc. (“SmartStop”), a self-managed and fully integrated self storage company with approximately $1.8 billion of self storage assets under management, announced its overall results for the three and six months ended June 30, 2021.

“SmartStop had an exceptionally strong second quarter, with our highest ever recorded same-store occupancy of 96.3% at quarter end and strong rental rate growth. This resulted in same-store revenue and NOI growth of 21.5% and 28.7% for the quarter, respectively, both higher than all of our publicly-traded peers,” said H. Michael Schwartz, Chairman and Chief Executive Officer of SmartStop. “Our best-in-class portfolio posted strong results in all of our markets throughout North America. Specifically, the Greater Toronto Area (“the GTA”) was our best performing market this quarter with same-store revenue and NOI growth of 33.6% and 45.0%, respectively. The GTA continues to be a high performing market, a key differentiator between SmartStop and our peer group and a primary piece of our Company’s growth initiatives. On the external growth front, we continue to find accretive acquisitions, acquiring two wholly-owned properties for $31 million during the quarter and our acquisition pipeline remains healthy. With ample attractively priced capital, a strong acquisitions pipeline and a robust operating environment, we believe the company is well positioned to execute both our internal and external growth initiatives, driving stockholder value in 2021 and beyond.”

Three Months Ended June 30, 2021 Financial Highlights:

• Net loss attributable to common stockholders decreased by approximately $4.6 million when compared to the same period in 2020. Net loss per Class A and Class T shares (basic and diluted) decreased $0.09 when compared to the same period in 2020.
• Total self storage-related revenues increased by approximately $14.0 million, or 53.6%, when compared to the same period in 2020.
• FFO, as adjusted (attributable to common stockholders and Operating Partnership (“OP”) unit holders), increased by approximately $7.7 million, or 445%, when compared to the same period in 2020.
• FFO, as adjusted per share and OP unit outstanding – diluted was $0.10, an increase of $0.07, or 233%, when compared to the same period in 2020.
• Same-store revenues increased by 21.5% compared to the same period in 2020.
• Same-store expenses increased by 7.2% compared to the same period in 2020.
• Same-store NOI increased by 28.7% compared to the same period in 2020.
• Same-store average physical occupancy increased by 6.1% to 95.8% for the three months ended June 30, 2021, compared to 89.7% during the same period in 2020.
• Same-store annualized rent per occupied square foot was approximately $16.50 for the three months ended June 30, 2021, which represented an increase of approximately 14.7% when compared to the same period in 2020.

Six Months Ended June 30, 2021 Financial Highlights:

• Net loss attributable to common stockholders decreased by approximately $25.8 million when compared to the same period in 2020. Net loss per Class A and Class T shares (basic and diluted) decreased $0.50 when compared to the same period in 2020.
• Total self storage-related revenues increased by approximately $18.3 million, or 34.7%, when compared to the same period in 2020.
• Same-store revenues increased by 15.5% compared to the same period in 2020.
• Same-store expenses increased by 4.1% compared to the same period in 2020.
• Same-store NOI increased by 21.4% compared to the same period in 2020.
• Same-store average physical occupancy increased by 5.3% to 94.5% for the six months ended June 30, 2021, compared to 89.2% during the same period in 2020.
• Same-store annualized rent per occupied square foot was approximately $15.93 for the six months ended June 30, 2021, which represented an increase of approximately 8.9% when compared to the same period in 2020.

External Growth

In April, SmartStop acquired a recently built, six-story self storage facility in Oakville, Ontario, Canada. The property was completed in April 2020 and was approximately 40% occupied at acquisition. The property’s 1,070 units are 100% climate-controlled across approximately 81,500 square feet. The property offers customers a variety of amenities including state-of-the-art security systems, elevators, keypad access, a gated drive-in loading area and more. The facility is our third in Oakville, establishing SmartStop as a dominant player in the submarket. This was SmartStop’s 17th owned or managed operating property in the GTA.

In May, SmartStop acquired a self storage facility in Riverside, CA, the most populous city in Southern California’s “Inland Empire.” This prime location has great visibility from Van Buren Boulevard and provides easy access from the Riverside Freeway. The facility serves the communities of La Sierra, Corona, East Vale, Ramona, and Jurupa Valley and is located next to Riverside Municipal Airport. The property’s 379 units and 71 RV parking spaces span across approximately 68,700 square feet. The property offers customers a variety of amenities including a gated drive-in loading area, state-of-the-art security systems, keypad access and large truck accessibility. With an RV parking component, this new facility offers customers a complimentary product type from our two neighboring SmartStop facilities, one of which is directly adjacent. The facility is the Company’s third in the submarket and 29th owned or managed location in California.

Declared Distributions

On June 23, 2021, SmartStop’s board of directors declared a distribution rate for the third quarter of 2021, of approximately $0.00164 per day per share on the outstanding shares of common stock payable to both Class A and Class T stockholders. In connection with these distributions, after the stockholder servicing fee is paid, approximately $0.0014 per day will be paid per Class T share. Such distributions payable to each stockholder of record during a month will be paid the following month.