SmartStop Self Storage REIT, Inc. Reports 2019 Third Quarter Results and Highlights
December 3, 2019
LADERA RANCH, Calif., Dec. 3, 2019 /PRNewswire/ — SmartStop Self Storage REIT, Inc. (“SmartStop”) announced continued growth in operations for the three and nine months ended September 30, 2019, coupled with its first full quarter as a self-managed and fully-integrated self storage company.
“The third quarter was the first full quarter for SmartStop operating as a self-managed company, and we grew revenues 46 percent while expanding our self storage platform,” commented Michael McClure, Chief Executive Officer of SmartStop. “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 for up to $200 million, a transaction that solidified our balance sheet, reduced our leverage, and provides us flexibility to grow in the future.”
Preferred Stock Purchase by Extra Space Storage
Subsequent to quarter end, SmartStop entered into a preferred stock purchase agreement with Extra Space Storage LP, a subsidiary of Extra Space Storage, Inc. (“EXR”,NYSE: EXR) in which EXR committed to purchase up to $200 million in a new Series A Convertible Preferred Stock (“Series A Preferred”). On October 29, 2019, EXR purchased $150 million of the Series A Preferred, of which a majority of the proceeds were used to pay off two higher-interest loans for a total of approximately $95.4 million. SmartStop has the ability to draw the remaining $50 million prior to October 29, 2020.
