SmartStop Self Storage REIT Outperforms Publicly-Traded Peers

May 20, 2021 | James Sprow | Blue Vault

In an unusual year, to say the least, for nontraded REITs generally, SmartStop Self Storage REIT provides a shining example of how management expertise in the self storage sector can outperform.  Across all meaningful metrics, including occupancy, revenues, NOI, and revenues per square foot, year-over-year performance comparisons were positive as of March 31, 2021.  And when compared to publicly listed peers in the self storage sector, SmartStop excelled. 

“SmartStop posted tremendous results this quarter with same store revenue and NOI growth of 9.7% and 14.2%, 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 record same store occupancy of 94.1% at quarter end, an increase of 540 basis points year-over-year. These performance metrics are a testament to the power of the SmartStop^® Self Storage platform, the fantastic team operating this portfolio, and the robust self storage operating environment. With our unprecedented level of occupancy, we are entering the busy summer rental season from a position of great strength and are increasing asking rates while decreasing concessions, resulting in increasing net effective rental rates and total revenues. With this encouraging start to 2021, we believe the company is well positioned to grow stockholder value in 2021 and beyond.”

Three Months Ended March 31, 2021, Financial Highlights:

• Total self storage-related revenues increased by approximately $4.3 million, or 16.2%, when compared to the same period in 2020.

• FFO, as adjusted, increased by approximately $3.2 million, or 195%, when compared to the same period in 2020. 

• Same-store revenues increased by 9.7% compared to the same period in 2020.

• Same-store NOI increased by 14.2% compared to the same period in 2020.

• Same-store average physical occupancy increased by 4.4% to 93.1% for the three months ended March 31, 2021, compared to 88.7% during the same period in 2020.

• Same-store annualized rent per occupied square foot was approximately $15.43 for the three months ended March 31, 2021, which represented an increase of approximately 3.6% when compared to the same period in 2020.

• Managed REIT Platform revenue of approximately $2.3 million for the three months ended March 31, 2021, up 28.3% from the same period in 2020.

For the full press release with First Quarter 2021 results, click here.

Sources:  SEC, SmartStop Asset Management