SmartStop Self Storage REIT, Inc. Reports Strong Third Quarter 2021 Results with Best in Class Same-Store Revenue and NOI Growth
November 8, 2021 | SmartStop Self Storage REIT, Inc
SmartStop Self Storage REIT, Inc. (“SmartStop”), a self[1]managed and fully-integrated self storage company, announced its overall results for the three and nine months ended September 30, 2021.
“This was a truly exciting quarter for SmartStop. We posted year-over-year same-store revenue and NOI growth of 19.4% and 28.1% for the quarter, respectively, both higher than all of our publicly-traded peers,” said H. Michael Schwartz, Chairman and Chief Executive Officer of SmartStop. “Gross margins on our same-store pool improved to 71.4%, a year-over-year increase of 480 basis points, and the highest in our Company’s history. Our exceptional property performance, coupled with our disciplined investment strategy, led to year-over-year growth of FFO, as adjusted per share of approximately 125% in the quarter. With ample attractively priced capital, a strong balance sheet and a robust operating environment, we believe SmartStop is well positioned to continue executing our growth initiatives, driving stockholder value in 2021 and beyond.”
Three Months Ended September 30, 2021 Financial Highlights:
• Net loss attributable to common stockholders was approximately $2.2 million for the three months ended September 30, 2021. This represents a decrease of approximately $4.0 million when compared to the same period in 2020. Net loss per Class A and Class T shares (basic and diluted) was $0.03, a decrease of $0.07, or 70%, when compared to the same period in 2020.
• Total self storage-related revenues increased by approximately $14.6 million, or 51.8%, when compared to the same period in 2020.
• FFO, as adjusted (attributable to common stockholders and Operating Partnership (“OP”) unit holders), was approximately $13.6 million. This represents an increase of approximately $9.2 million, or 209%, when compared to the same period in 2020.
• FFO, as adjusted per share and OP unit outstanding – diluted was $0.14, an increase of $0.08, or 124.7%, when compared to the same period in 2020.
• Same-store revenues, expenses and NOI increased by 19.4%, 2.3% and 28.1%, respectively compared to the same period in 2020.
• Same-store average physical occupancy increased by 4.2% to 95.9% compared to 91.7% during the same period in 2020.
• Same-store annualized rent per occupied square foot was approximately $16.92, which represented an increase of approximately 15.3% when compared to the same period in 2020.
Nine Months Ended September 30, 2021 Financial Highlights:
• Net loss attributable to common stockholders was approximately $20.0 million for the nine months ended September 30, 2021. This represents a decrease of approximately $29.8 million when compared to the same period in 2020. Net loss per Class A and Class T shares (basic and diluted) was $0.26, a decrease of $0.58, or 69.0%, when compared to the same period in 2020.
• Total self storage-related revenues increased by approximately $32.9 million, or 40.6%, when compared to the same period in 2020.
• Same-store revenues, expenses and NOI increased by 16.9%, 3.5% and 23.7%, respectively compared to the same period in 2020.
• Same-store average physical occupancy increased by 4.8% to 94.9%, compared to 90.1% during the same period in 2020.
• Same-store annualized rent per occupied square foot was approximately $16.11, which represented an increase of approximately 9.9% when compared to the same period in 2020.
External Growth
In August, the Company opened a newly constructed four story self storage facility in Oshawa, Ontario, Canada in partnership with SmartCentres (TSX: SRU.UN). This facility serves the communities of Vanier, Mclaughlin, Whitby, Eastdale, Stevenson, and Farewell and is conveniently located adjacent to the SmartCentres Oshawa South shopping center, the Walmart Supercenter and Lowe’s Home Improvement. The property’s 950 units are 100% climate-controlled across approximately 95,000 square feet. This is SmartStop’s 18th owned or managed location in the Greater Toronto Area (GTA).
Subsequent to quarter end, the Company acquired a self storage facility in Lakewood, CO. The facility serves the communities of Green Mountain, Foothills, Briarwood Hills, West Lochwood and Chateau Ridge Estates. The property’s 770 units span across approximately 87,000 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. This is SmartStop’s seventh owned or managed location in the Denver market.
Capital Markets Activity
Subsequent to quarter end, the Company exercised $200 million of its accordion (the “Accordion”) under its existing multi-currency credit facility (the “Credit Facility”) with a syndicate of banks led by KeyBank National Association, Wells Fargo, N.A., Citibank, N.A. and Bank of Montreal. The increased commitment was entirely on the revolving portion of the Credit Facility (the “Revolver”). The Credit Facility now consists of a $450 million Revolver and a $250 million term loan (the “Term Loan”) for a total commitment of $700 million. The Accordion was also amended to permit expansion up to $1.05 billion, subject to certain conditions. The other terms and conditions of the Credit Facility remain unchanged.
Net Asset Value
Subsequent to quarter end, the Company announced that its board of directors has declared an updated estimated Net Asset Value (“NAV”) per share of $15.08 for its Class A and Class T shares, as of June 30, 2021. SmartStop’s previous estimated NAV per share was $10.40 as of December 31, 2019. Please see SmartStop’s Form 8-K filed on October 20, 2021 for a description of the methodologies and assumptions used to determine, and the limitations of, the estimates NAV per share.
Declared Distributions
On September 23, 2021, SmartStop’s board of directors declared a distribution rate for the fourth 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.
Contact:
David Corak
VP of Corporate Finance
SmartStop Self Storage REIT, Inc.
949-542-3331
ir@smartstop.com
