LADERA RANCH, Calif., August 05, 2026--( BUSINESS WIRE )--SmartStop Self Storage REIT, Inc. ("SmartStop" or "the Company"), a self-managed and fully-integrated self storage company, announced its overall results for the three and six months ended June 30, 2026.
"We posted a strong quarter of growth, highlighted by 17.6% year over year increase in our Funds from Operations as Adjusted per share," said H. Michael Schwartz, Chairman and Chief Executive Officer of SmartStop. "Our strong same-store results were driven by our revenue management platform, talented operations and store level teams, growing efficiencies from scale, and effective expense control. Further, our same-store operating margins were 67.3% this quarter, up 150 basis points year over year. These improvements in our core operations led us to increase our 2026 same store NOI guidance and FFOa per share guidance."
"Additionally, we deployed over $46 million this quarter into accretive on balance sheet acquisitions and bridge capital investments, while also organically reducing our cash flow leverage from the prior quarter," continued Mr. Schwartz. "These accomplishments are emblematic of our recently introduced Deca Initiative, the framework that will guide our Company's growth over the coming years."
Three Months Ended June 30, 2026 Financial Highlights:
-
Net income attributable to common stockholders was approximately $11.2 million. This represents an increase of approximately $19.6 million when compared to the same period in 2025. Net income per share of Common Stock, (basic and diluted) was $0.20. This represents an increase of approximately $0.36 per share when compared to the same period in 2025.
-
Total self storage-related revenues were approximately $65.8 million, an increase of approximately $4.9 million when compared to the same period in 2025.
-
FFO, as adjusted (attributable to common stockholders and Operating Partnership ("OP") unit holders), was approximately $29.3 million, an increase of approximately $4.9 million when compared to the same period in 2025.
-
FFO, as adjusted per share and OP unit outstanding – diluted was $0.49, an increase of approximately $0.07 per share when compared to the same period in 2025.
-
Same-store revenues increased by 1.3%, same-store property operating expenses decreased by 3.4%, and same-store net operating income ("NOI") increased by 3.7% compared to the same period in 2025.
-
On a constant currency basis for SmartStop's Canadian properties included in its wholly-owned same-store pool, its aggregate same-store revenues for all properties included in the pool increased by 1.3%, same-store expenses decreased by 3.4%, and same-store NOI increased by 3.7% compared to the same period in 2025.
-
Same-store average physical occupancy was 92.5%, a decrease of approximately 0.6% compared to the same period in 2025.
-
Same-store annualized rent per occupied square foot was approximately $20.33, an increase of approximately 1.9% when compared to the same period in 2025.
Six Months Ended June 30, 2026 Financial Highlights:
-
Net income attributable to common stockholders was approximately $20.8 million. This represents an increase of approximately $37.6 million when compared to the same period in 2025. Net income per share of Common Stock, (basic and diluted) was $0.37. This represents an increase of approximately $0.80 per share when compared to the same period in 2025.
-
Total self storage-related revenues were approximately $130.7 million, an increase of approximately $10.6 million when compared to the same period in 2025.
-
FFO, as adjusted (attributable to common stockholders and OP unit holders), was approximately $58.1 million, an increase of approximately $22.5 million when compared to the same period in 2025.
-
FFO, as adjusted per share and OP unit outstanding – diluted was $0.98, an increase of approximately $0.15 per share when compared to the same period in 2025.
-
Same-store revenues increased by 1.4%, same-store property operating expenses decreased by 1.4%, and same-store NOI increased by 2.9% compared to the same period in 2025.
-
On a constant currency basis for SmartStop's Canadian properties included in its wholly-owned same-store pool, its aggregate same-store revenues for all properties included in the pool increased by 1.2%, same-store expenses decreased by 1.6%, and same-store NOI increased by 2.6% compared to the same period in 2025.
-
Same-store average physical occupancy was 92.5%, a decrease of approximately 0.2% compared to the same period in 2025.
-
Same-store annualized rent per occupied square foot was approximately $20.22, an increase of approximately 1.5% when compared to the same period in 2025.
Acquisitions and Dispositions
In June, SmartStop closed on the acquisition of three self storage facilities located in the greater area of Spartanburg, South Carolina from certain indirect DST subsidiaries of SSGT III, (the "Spartanburg Three Properties"). The total consideration for the Spartanburg Three Properties was approximately $29.7 million. In connection with the sale of the Spartanburg Three Properties to SmartStop, the indirect DST subsidiaries of SSGT III (defined below) repaid their mortgage loans in full, including accrued interest. This transaction was approved by the nominating and corporate governance committees of both SmartStop's board of directors and SSGT III's board of directors.
Third Party Management
As of the quarter ended June 30, 2026, SmartStop managed approximately 220 stores, representing approximately 15.7 million net rentable square feet on its third-party platform.
Bridge Lending and Preferred Investment Platform
In June, SmartStop closed a preferred investment totaling approximately $16.3 million and became the property manager of the associated self storage facility. In August, the Company closed its first preferred investment with joint venture partner AXCS; SmartStop's portion of this preferred investment is approximately $3.1 million. The weighted average yield between the two investments is approximately 10.9%.
Managed REIT Platform Update
SmartStop, through an indirect subsidiary, serves as the sponsor of Strategic Storage Growth Trust III, Inc. ("SSGT III"), Strategic Storage Trust VI, Inc. ("SST VI"), and Strategic Storage Trust X ("SST X" together with SSGT III and SST VI, the "Managed REITs"). SmartStop receives asset management fees, property management fees, acquisition fees, and other fees, as applicable and receives substantially all of the tenant protection program revenue earned by the Managed REITs, which had a combined portfolio of 52 operating properties and approximately 43,000 units and 4.6 million rentable square feet at quarter end. Assets under management for the Managed REITs was approximately $1.0 billion at quarter end.
On July 14, 2026, SST VI and SSGT III announced the signing of an Agreement and Plan of Merger in which SSGT III will merge (the "Managed REIT Merger") with and into a subsidiary of SST VI. In connection with the Managed REIT Merger, SS Growth Advisor III, LLC (the "SSGT III Advisor"), an indirect subsidiary of SmartStop, entered into a Termination Agreement with SSGT III to terminate the SSGT III advisory agreement, at the effective time of the Managed REIT Merger. While SmartStop will receive a $2.0 million negotiated payment, payable in units of limited partnership interest in the SSGT III operating partnership, under the Termination Agreement immediately prior to the effective time of the Managed REIT Merger, SmartStop will continue to serve as the advisor and property manager to SST VI as the survivor of the Managed REIT Merger and, accordingly, will continue to advise and manage the combined company following the anticipated closing in the fourth quarter of 2026.
Eminent Domain Update
On April 27, 2026, the North Carolina Department of Transportation (the "NC DOT") took the majority of the Asheville III property in an eminent domain proceeding. SmartStop recognized a gain on disposition of approximately $0.5 million in connection with this taking. Subsequent to quarter end, on July 27, 2026, the NC DOT also took a small portion of the Asheville IV property. Both of these properties were removed from the 2026 same-store pool during the second quarter of 2026.
Declared Distributions
For the months of June, July and August 2026, SmartStop's board of directors approved a distribution amount such that all holders of its outstanding common stock will receive a distribution equivalent to an annualized distribution of $1.60 per share. Each monthly distribution was paid, or will be paid, on or about July 15, 2026, August 14, 2026 and September 15, 2026, respectively.
Webcast & Conference Call
Management will host a conference call and webcast to discuss the results on Thursday, August 6, 2026, at 12:00 p.m. Eastern Time. During the call, company officers will review operating performance, discuss recent events, and conduct a question-and-answer period. The question-and-answer period will be limited to registered financial analysts. All other participants will have listen-only capability.
A live webcast of the call will be available in the Investor Relations section of the Company's website at investors.smartstopselfstorage.com . To access the live webcast, participants are encouraged to visit the site at least 15 minutes before the start time to register and download any necessary software.
SMARTSTOP SELF STORAGE REIT, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except share and per share data)
June 30,
December 31,
2026
2025
(unaudited)
ASSETS
Real estate facilities:
Land
$
539,029
$
541,330
Buildings
1,798,700
1,782,894
Site improvements
105,987
103,139
2,443,716
2,427,363
Accumulated depreciation
(395,724
)
(366,447
)
2,047,992
2,060,916
Construction in process
8,400
6,443
Real estate facilities, net
2,056,392
2,067,359
Cash and cash equivalents
38,185
54,224
Restricted cash
6,008
5,144
Investments in unconsolidated real estate ventures
37,458
36,694
Investments in and advances to Managed REITs
152,283
130,961
Deferred tax assets
2,944
3,182
Other assets, net
40,795
27,188
Intangible assets, net
12,757
18,358
Trademarks, net
15,700
15,700
Goodwill
69,974
69,974
Debt issuance costs, net
5,376
3,388
Total assets
$
2,437,872
$
2,432,172
LIABILITIES AND EQUITY
Debt, net
$
1,119,645
$
1,098,248
Accounts payable and accrued liabilities
44,335
38,646
Distributions payable
8,442
8,796
Deferred tax liabilities
6,434
6,559
Total liabilities
1,178,856
1,152,249
Commitments and contingencies
Equity:
SmartStop Self Storage REIT, Inc.:
Common Stock, $0.001 par value; 175,000,000 and 141,250,000 shares authorized at June 30, 2026 and December 31, 2025, respectively; 55,368,903 shares and 55,359,250 shares issued and outstanding at June 30, 2026 and December 31, 2025, respectively
55
55
Additional paid-in capital
1,837,467
1,837,194
Distributions
(507,097
)
(463,165
)
Accumulated deficit
(173,585
)
(194,407
)
Accumulated other comprehensive (loss) income
(383
)
733
Total SmartStop Self Storage REIT, Inc. equity
1,156,457
1,180,410
Noncontrolling interests in our Operating Partnership
102,559
99,513
Total noncontrolling interests
102,559
99,513
Total equity
1,259,016
1,279,923
Total liabilities and equity
$
2,437,872
$
2,432,172
SMARTSTOP SELF STORAGE REIT, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Amounts in thousands, except share and per share data)
Three Months Ended June 30,
Six Months Ended June 30,
2026
2025
2026
2025
Revenues:
Self storage rental revenue
$
62,880
$
58,156
$
124,794
$
114,741
Ancillary operating revenue
2,957
2,728
5,860
5,335
Managed Platform revenue
6,747
4,036
13,359
8,149
Reimbursable costs from Managed Platform
6,692
1,896
13,573
4,039
Total revenues
79,276
66,816
157,586
132,264
Operating expenses:
Property operating expenses
21,226
22,050
43,435
42,137
Managed Platform expenses
3,711
3,250
8,050
4,484
Reimbursable costs from Managed Platform
6,692
1,896
13,573
4,039
General and administrative
9,893
11,695
19,033
19,545
Depreciation
16,505
15,374
33,080
30,468
Intangible amortization expense
3,245
1,929
6,698
3,527
Acquisition expenses
219
359
298
561
Contingent earnout adjustment
399
—
1,043
—
Total operating expenses
61,890
56,553
125,210
104,761
Gain on disposition of real estate
489
—
1,726
—
Income from operations
17,875
10,263
34,102
27,503
Other income (expense):
Equity in losses from investments in unconsolidated real estate ventures
(154
)
(119
)
(290
)
(361
)
Equity in losses from investments in Managed REITs
(444
)
(157
)
(629
)
(372
)
Investment income, net
2,107
723
4,078
1,448
Other, net
6,409
(1,416
)
12,477
(964
)
Interest expense
(13,339
)
(12,030
)
(26,476
)
(34,052
)
Loss on debt extinguishment
—
(1,745
)
(262
)
(2,533
)
Income tax expense
(379
)
(318
)
(710
)
(924
)
Net income (loss)
12,075
(4,799
)
22,290
(10,255
)
Net (income) loss attributable to noncontrolling interests
(829
)
196
(1,468
)
699
Less: Distributions to preferred stockholders
—
(115
)
—
(3,567
)
Less: Accretion - preferred equity costs
—
(3,644
)
—
(3,644
)
Net income (loss) attributable to SmartStop Self Storage REIT, Inc. common stockholders
$
11,246
$
(8,362
)
$
20,822
$
(16,767
)
Net income (loss) per Common Stock, Class A & Class T share:
Basic
$
0.20
$
(0.16
)
$
0.37
$
(0.43
)
Diluted
$
0.20
$
(0.16
)
$
0.37
$
(0.43
)
Weighted average Common Stock, Class A & Class T shares outstanding:
Basic
55,255,522
54,419,801
55,246,492
39,303,159
Diluted
55,454,084
54,419,801
55,450,403
39,303,159
SMARTSTOP SELF STORAGE REIT, INC. AND SUBSIDIARIES NON-GAAP MEASURE –
COMPUTATION OF FUNDS FROM OPERATIONS, AS ADJUSTED
(Unaudited)
(Amounts in thousands, except share and per share data)
Three Months Ended June 30,
Six Months Ended June 30,
...
