SmartStop Self Storage REIT Updates Distribution Policy
September 29, 2020 | Luke Schmidt | Blue Vault
The board of directors of SmartStop Self Storage REIT, Inc. (“SSSR”) announced on September 28 a change to the Company’s distribution authorization policy. Beginning in the fourth quarter and continuing for the foreseeable future, the Company will authorize its distributions on a quarterly basis. SSSR previously authorized its distributions on a monthly basis, but this announcement reverts the distribution authorization policy to its pre-COVID-19 status. On March 30, 2020, SSSR changed its distribution authorization from quarterly to monthly in order to give it maximum flexibility to monitor and evaluate the potential financial impact of COVID-19.
On September 25, 2020, the board of directors authorized a daily distribution rate of approximately $0.00164 per day per share on the outstanding shares of common stock payable to Class A and Class T stockholders commencing on October 1, 2020, and ending on December 31, 2020. In connection with this distribution, for the stockholders of Class T shares, the daily distribution will equal approximately $0.0014 per day after the stockholder servicing fee is paid.
These distribution rates represent no change compared to previously authorized and paid distributions. Each distribution payable during any given month will be paid the following month.
As of June 30, 2020, SSSR reported total assets of $1,237.9 million with real estate assets of $1,086.4 million. Its investment portfolio consisted of 112 self-storage facilities with a total of 71,705 units. The Company had raised gross capital of approximately $566.0 in its public offering, which closed in early 2017. The Company’s quarterly distribution rates were 6.00% for Class A shares and 5.34% for Class T shares.
Sources: SEC, Blue Vault
