SmartStop Self Storage Reports Year-End Financials

Company highlights expansion, financial performance, and strategic initiatives in latest annual report.

March 13, 2025

SmartStop Self Storage REIT, Inc. has released its latest financial report, detailing a year of expansion, acquisitions, and operational developments. The company remains focused on strengthening its presence in the U.S. and Canadian self-storage markets while navigating financial challenges and shifting market conditions.

Expanding the Portfolio

SmartStop continues to build its footprint in high-demand markets. As of December 31, 2024, the company owned and operated 161 self-storage properties across 19 states, the District of Columbia, and Canada, totaling 110,000 storage units and 12.6 million rentable square feet. Beyond direct ownership, SmartStop holds a 50% equity interest in eleven real estate ventures in Canada, including ten operational storage properties and one development project.

Through its Managed REIT Platform, SmartStop oversees an additional 37 properties, generating management fees and tenant protection revenue. These assets add to the company’s broader strategy of increasing its market share and optimizing operational efficiencies.

New Acquisitions and Joint Ventures

SmartStop remained active on the acquisition front in 2024, closing several key transactions. The company expanded its long-standing partnership with SmartCentres Real Estate Investment Trust, focusing on self-storage development opportunities in Canada. Two new projects—one in Burnaby, British Columbia, and another in Whitby, Ontario —are now in the pipeline.

In the U.S., SmartStop entered a joint venture in Nantucket, Massachusetts, marking a strategic move into a high-barrier-to-entry market. These acquisitions align with the company’s focus on securing assets in metropolitan areas where demand remains strong and institutional competition is lower.

Financial Performance and Capital Strategy

While SmartStop continued to grow its portfolio, the company reported a net loss of $18.4 million for 2024, bringing its accumulated deficit to $185.6 million. Despite this, rental income and fee-based revenue helped offset challenges, and the company remains focused on maintaining financial flexibility.

In 2024, SmartStop secured $175 million in acquisition financing and extended its revolving credit facility with KeyBank through 2027. These moves provide liquidity for future investments while ensuring access to capital for ongoing operations.

The company also adjusted its estimated net asset value (NAV) per share, which declined from $15.25 to $14.50 over the year. The shift reflects property valuation changes and broader market conditions.

Dividend Policy and Investor Considerations

SmartStop suspended its distribution reinvestment plan (DRP) in late 2024 but reinstated it in early 2025, allowing investors to continue reinvesting dividends based on their preferences.

The company’s Series A Convertible Preferred Stock agreement with Extra Space Storage LP remains a key part of its capital structure. The preferred stock, which carries a cumulative dividend obligation, takes priority over common stock distributions, which may impact returns for common shareholders.

Navigating Market Risks

SmartStop faces industry-wide challenges, including:

Economic shifts affecting consumer demand and rental rates

Rising property taxes increasing operational costs

Intensifying competition from institutional self-storage operators

With a large portion of its portfolio concentrated in Florida, California, and the Greater Toronto Area, localized downturns in these markets could affect rental income and occupancy rates.

Regulatory factors also play a role. In Canada, zoning laws and environmental regulations may impact future development projects. Additionally, currency exchange fluctuations between the U.S. and Canadian dollars introduce financial variability.

Looking Ahead

SmartStop is positioning itself for continued growth, balancing acquisitions with capital discipline. The company has identified potential liquidity events, including a public listing or a merger, as long-term strategies to create value for shareholders.

With a focus on high-growth markets and operational efficiencies, SmartStop remains committed to expanding its presence while navigating financial headwinds. Investors will be watching closely as the company executes on its strategy and explores pathways for future growth.