Strategic Storage Trust IV Files $1.0 Billion Follow-On Offering
February 5, 2020
In an SEC filing on February 4 for a follow-on offering, Strategic Storage Trust IV, Inc. will be offering up to $1.0 billion in shares of common stock, consisting of three classes of shares: Class A shares for $24.89 per share (up to $450 million in shares), Class T shares for $24.10 per share (up to $450 million in shares), and Class W shares for $22.65 per share (up to $100 million in shares). The REIT’s initial offering which was effective on March 17, 2017, has been extended to continue under the original registration statement until mid-September 2020 when the follow-on offering will commence.
The share classes are designed for and available to different categories of investors. All investors can choose to purchase Class A shares or Class T shares in the offering, while Class W shares are only available to investors purchasing through certain fee-based programs or registered investment advisers. The share classes have differing sales commissions; there is an ongoing stockholder servicing fee with respect to Class T shares and there is an ongoing dealer manager servicing fee with respect to Class W shares. There are discounts available for certain categories of purchasers of Class A shares. The REIT is also offering up to $95,000,000 in shares of common stock pursuant to its distribution reinvestment plan at $22.65 per share for Class A shares, $22.65 per share for Class T shares and $22.65 per share for Class W shares.
As of January 17, 2020, the REIT had sold approximately $223.7 million in shares, consisting of approximately $111.4 million from the sale of approximately 4.5 million Class A shares, approximately $89.2 million from the sale of approximately 3.7 million Class T shares, and approximately $23.1 million from the sale of approximately 1.0 million Class W shares pursuant to the initial public offering.
The REIT will offer these shares until 2022, or two years after the effective date of the offering, unless further extended by the board of directors as permitted under applicable law, or extended with respect to shares offered pursuant to the distribution reinvestment plan. Some jurisdictions require the REIT to renew this registration annually. The REIT reserves the right to reallocate shares offered among classes of shares and between the primary offering and the distribution reinvestment plan. It also reserves the right to terminate the offering in its sole discretion.
Strategic Storage Trust IV, Inc. is a Maryland corporation that elected to qualify as a real estate investment trust, or REIT, for federal income tax purposes for the taxable year ended December 31, 2017. The REIT expects to use a substantial amount of the net proceeds from this offering to primarily invest in income-producing and growth self storage properties and related self storage real estate investments. At the end of its acquisition phase, it anticipates that its portfolio will consist of approximately 75% income-producing properties and 25% growth properties.
As of January 17, 2020, the REIT’s self storage portfolio was comprised of 23 properties with a total of 17,020 units and approximately 1,935,000 square feet, that were 89% occupied as of January 17, 2020. The properties were in Texas (8), Florida (4), and seven other states in the U.S.
Source: SEC
