SmartStop Self Storage REIT, Inc. Reports Strong Second Quarter 2021 Results With Record Same-Store Revenue and NOI Growth
LADERA RANCH, Calif.–(BUSINESS WIRE)–SmartStop Self Storage REIT, Inc. (“SmartStop”), a self-managed and fully-integrated self storage company with approximately $1.8 billion of self storage assets under management, announced its overall results for the three and six months ended June 30, 2021.
“SmartStop had an exceptionally strong second quarter, with our highest ever recorded same-store occupancy of 96.3% at quarter end and strong rental rate growth. This resulted in same-store revenue and NOI growth of 21.5% and 28.7% for the quarter, 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 strong results in all of our markets throughout North America. Specifically, the Greater Toronto Area (“the GTA”) was our best performing market this quarter with same-store revenue and NOI growth of 33.6% and 45.0%, respectively. The GTA continues to be a high performing market, a key differentiator between SmartStop and our peer group and a primary piece of our Company’s growth initiatives. On the external growth front, we continue to find accretive acquisitions, acquiring two wholly-owned properties for $31 million during the quarter and our acquisition pipeline remains healthy. With ample attractively priced capital, a strong acquisitions pipeline and a robust operating environment, we believe the company is well positioned to execute both our internal and external growth initiatives, driving stockholder value in 2021 and beyond.”
Three Months Ended June 30, 2021 Financial Highlights:
- Net loss attributable to common stockholders decreased by approximately $4.6 million when compared to the same period in 2020. Net loss per Class A and Class T shares (basic and diluted) decreased $0.09 when compared to the same period in 2020.
- Total self storage-related revenues increased by approximately $14.0 million, or 53.6%, when compared to the same period in 2020.
- FFO, as adjusted (attributable to common stockholders and Operating Partnership (“OP”) unit holders), increased by approximately $7.7 million, or 445%, when compared to the same period in 2020.
- FFO, as adjusted per share and OP unit outstanding – diluted was $0.10, an increase of $0.07, or 233%, when compared to the same period in 2020.
- Same-store revenues increased by 21.5% compared to the same period in 2020.
- Same-store expenses increased by 7.2% compared to the same period in 2020.
- Same-store NOI increased by 28.7% compared to the same period in 2020.
- Same-store average physical occupancy increased by 6.1% to 95.8% for the three months ended June 30, 2021, compared to 89.7% during the same period in 2020.
- Same-store annualized rent per occupied square foot was approximately $16.50 for the three months ended June 30, 2021, which represented an increase of approximately 14.7% when compared to the same period in 2020.
Six Months Ended June 30, 2021 Financial Highlights:
- Net loss attributable to common stockholders decreased by approximately $25.8 million when compared to the same period in 2020. Net loss per Class A and Class T shares (basic and diluted) decreased $0.50 when compared to the same period in 2020.
- Total self storage-related revenues increased by approximately $18.3 million, or 34.7%, when compared to the same period in 2020.
- Same-store revenues increased by 15.5% compared to the same period in 2020.
- Same-store expenses increased by 4.1% compared to the same period in 2020.
- Same-store NOI increased by 21.4% compared to the same period in 2020.
- Same-store average physical occupancy increased by 5.3% to 94.5% for the six months ended June 30, 2021, compared to 89.2% during the same period in 2020.
- Same-store annualized rent per occupied square foot was approximately $15.93 for the six months ended June 30, 2021, which represented an increase of approximately 8.9% when compared to the same period in 2020.
External Growth
In April, SmartStop acquired a recently built, six-story self storage facility in Oakville, Ontario, Canada. The property was completed in April 2020 and was approximately 40% occupied at acquisition. The property’s 1,070 units are 100% climate-controlled across approximately 81,500 square feet. The property offers customers a variety of amenities including state-of-the-art security systems, elevators, keypad access, a gated drive-in loading area and more. The facility is our third in Oakville, establishing SmartStop as a dominant player in the submarket. This was SmartStop’s 17th owned or managed operating property in the GTA.
In May, SmartStop acquired a self storage facility in Riverside, CA, the most populous city in Southern California’s “Inland Empire.” This prime location has great visibility from Van Buren Boulevard and provides easy access from the Riverside Freeway. The facility serves the communities of La Sierra, Corona, East Vale, Ramona, and Jurupa Valley and is located next to Riverside Municipal Airport. The property’s 379 units and 71 RV parking spaces span across approximately 68,700 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. With an RV parking component, this new facility offers customers a complimentary product type from our two neighboring SmartStop facilities, one of which is directly adjacent. The facility is the Company’s third in the submarket and 29th owned or managed location in California.
Declared Distributions
On June 23, 2021, SmartStop’s board of directors declared a distribution rate for the third 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.
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SMARTSTOP SELF STORAGE REIT, INC. AND SUBSIDIARIES |
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CONSOLIDATED BALANCE SHEETS |
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June 30, 2021 (Unaudited) |
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December 31, 2020 |
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ASSETS |
|
|
|
|
|
|
||
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Real estate facilities: |
|
|
|
|
|
|
||
|
Land |
|
$ |
396,430,618 |
|
|
$ |
335,800,354 |
|
|
Buildings |
|
|
1,101,336,919 |
|
|
|
810,480,845 |
|
|
Site improvements |
|
|
77,553,126 |
|
|
|
63,821,383 |
|
|
|
|
|
1,575,320,663 |
|
|
|
1,210,102,582 |
|
|
Accumulated depreciation |
|
|
(135,187,165 |
) |
|
|
(115,903,045 |
) |
|
|
|
|
1,440,133,498 |
|
|
|
1,094,199,537 |
|
|
Construction in process |
|
|
1,857,047 |
|
|
|
1,761,303 |
|
|
Real estate facilities, net |
|
|
1,441,990,545 |
|
|
|
1,095,960,840 |
|
|
Cash and cash equivalents |
|
|
26,580,765 |
|
|
|
72,705,624 |
|
|
Restricted cash |
|
|
7,276,448 |
|
|
|
7,952,052 |
|
|
Investments in unconsolidated real estate ventures |
|
|
20,682,690 |
|
|
|
— |
|
|
Investments in and advances to Managed REITs |
|
|
12,033,750 |
|
|
|
15,624,389 |
|
|
Other assets, net |
|
|
14,087,618 |
|
|
|
7,734,276 |
|
|
Intangible assets, net of accumulated amortization |
|
|
21,190,218 |
|
|
|
12,406,427 |
|
|
Trademarks, net of accumulated amortization |
|
|
16,123,529 |
|
|
|
16,194,118 |
|
|
Goodwill |
|
|
53,643,331 |
|
|
|
53,643,331 |
|
|
Debt issuance costs, net of accumulated amortization |
|
|
2,258,004 |
|
|
|
— |
|
|
Total assets |
|
$ |
1,615,866,898 |
|
|
$ |
1,282,221,057 |
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LIABILITIES AND EQUITY |
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|
|
|
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Debt, net |
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$ |
849,209,991 |
|
|
$ |
717,952,233 |
|
|
Accounts payable and accrued liabilities |
|
|
24,971,528 |
|
|
|
23,038,976 |
|
|
Due to affiliates |
|
|
694,739 |
|
|
|
667,429 |
|
|
Distributions payable |
|
|
8,088,854 |
|
|
|
6,650,317 |
|
|
Contingent earnout |
|
|
19,900,000 |
|
|
|
28,600,000 |
|
|
Deferred tax liabilities |
|
|
7,704,673 |
|
|
|
8,380,215 |
|
|
Total liabilities |
|
|
910,569,785 |
|
|
|
785,289,170 |
|
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Commitments and contingencies |
|
|
|
|
|
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Redeemable common stock |
|
|
64,028,104 |
|
|
|
57,335,575 |
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Preferred stock, $0.001 par value; 200,000,000 shares authorized: |
|
|
|
|
|
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Series A Convertible Preferred Stock, $0.001 par value; 200,000 shares authorized; 200,000 and 200,000 shares issued and outstanding at June 30, 2021 and December 31, 2020, respectively, with aggregate liquidation preferences of $203,116,438 and $202,928,620 at June 30, 2021 and December 31, 2020, respectively |
|
|
196,356,107 |
|
|
|
196,356,107 |
|
|
Equity: |
|
|
|
|
|
|
||
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SmartStop Self Storage REIT, Inc. equity: |
|
|
|
|
|
|
||
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Class A common stock, $0.001 par value; 350,000,000 shares authorized; 76,516,281 and 52,660,402 shares issued and outstanding at June 30, 2021 and December 31, 2020, respectively |
|
|
76,517 |
|
|
|
52,661 |
|
|
Class T common stock, $0.001 par value; 350,000,000 shares authorized; 7,978,951 and 7,903,911 shares issued and outstanding at June 30, 2021 and December 31, 2020, respectively |
|
|
7,979 |
|
|
|
7,904 |
|
|
Additional paid-in capital |
|
|
724,292,971 |
|
|
|
492,408,006 |
|
|
Distributions |
|
|
(185,799,706 |
) |
|
|
(163,953,169 |
) |
|
Accumulated deficit |
|
|
(159,234,728 |
) |
|
|
(141,444,880 |
) |
|
Accumulated other comprehensive loss |
|
|
(1,882,006 |
) |
|
|
(3,834,228 |
) |
|
Total SmartStop Self Storage REIT, Inc. equity |
|
|
377,461,027 |
|
|
|
183,236,294 |
|
|
Noncontrolling interests in our Operating Partnership |
|
|
67,440,975 |
|
|
|
59,982,111 |
|
|
Other noncontrolling interests |
|
|
10,900 |
|
|
|
21,800 |
|
|
Total noncontrolling interests |
|
|
67,451,875 |
|
|
|
60,003,911 |
|
|
Total equity |
|
|
444,912,902 |
|
|
|
243,240,205 |
|
|
Total liabilities and equity |
|
$ |
1,615,866,898 |
|
|
$ |
1,282,221,057 |
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SMARTSTOP SELF STORAGE REIT, INC. AND SUBSIDIARIES |
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CONSOLIDATED STATEMENTS OF OPERATIONS |
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(Unaudited) |
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Three Months Ended June 30, |
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Six Months Ended June 30, |
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2021 |
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2020 |
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2021 |
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2020 |
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Revenues: |
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|
|
|
|
|
|
|
|
|
|
|
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Self storage rental revenue |
|
$ |
38,104,699 |
|
|
$ |
24,946,793 |
|
|
$ |
67,608,141 |
|
|
$ |
50,514,812 |
|
|
Ancillary operating revenue |
|
|
2,027,041 |
|
|
|
1,183,418 |
|
|
|
3,584,471 |
|
|
|
2,336,261 |
|
|
Managed REIT Platform revenue |
|
|
1,058,291 |
|
|
|
1,852,893 |
|
|
|
3,346,031 |
|
|
|
3,636,680 |
|
|
Reimbursable costs from Managed REITs |
|
|
1,061,619 |
|
|
|
1,486,441 |
|
|
|
2,277,662 |
|
|
|
3,279,915 |
|
|
Total revenues |
|
|
42,251,650 |
|
|
|
29,469,545 |
|
|
|
76,816,305 |
|
|
|
59,767,668 |
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Property operating expenses |
|
|
12,479,969 |
|
|
|
9,195,043 |
|
|
|
22,823,250 |
|
|
|
18,870,069 |
|
|
Managed REIT Platform expenses |
|
|
316,142 |
|
|
|
1,008,014 |
|
|
|
636,032 |
|
|
|
2,182,823 |
|
|
Reimbursable costs from Managed REITs |
|
|
1,061,619 |
|
|
|
1,486,441 |
|
|
|
2,277,662 |
|
|
|
3,279,915 |
|
|
General and administrative |
|
|
6,811,313 |
|
|
|
4,149,713 |
|
|
|
11,564,302 |
|
|
|
7,817,660 |
|
|
Depreciation |
|
|
10,742,801 |
|
|
|
7,842,443 |
|
|
|
19,286,728 |
|
|
|
15,559,114 |
|
|
Intangible amortization expense |
|
|
3,653,681 |
|
|
|
3,218,152 |
|
|
|
4,913,228 |
|
|
|
6,887,783 |
|
|
Acquisition expenses |
|
|
30,448 |
|
|
|
97,221 |
|
|
|
336,098 |
|
|
|
125,326 |
|
|
Contingent earnout adjustment |
|
|
400,000 |
|
|
|
500,000 |
|
|
|
2,519,744 |
|
|
|
(6,700,000 |
) |
|
Impairment of goodwill and intangible assets |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
36,465,732 |
|
|
Impairment of investments in Managed REITs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4,376,879 |
|
|
Write-off of equity interest and preexisting relationships in SST IV upon acquisition of control |
|
|
— |
|
|
|
— |
|
|
|
8,389,573 |
|
|
|
— |
|
|
Total operating expenses |
|
|
35,495,973 |
|
|
|
27,497,027 |
|
|
|
72,746,617 |
|
|
|
88,865,301 |
|
|
Gain on sale of real estate |
|
|
178,631 |
|
|
|
— |
|
|
|
178,631 |
|
|
|
— |
|
|
Operating income (loss) |
|
|
6,934,308 |
|
|
|
1,972,518 |
|
|
|
4,248,319 |
|
|
|
(29,097,633 |
) |
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Interest expense |
|
|
(7,950,702 |
) |
|
|
(8,284,429 |
) |
|
|
(15,926,166 |
) |
|
|
(16,623,732 |
) |
|
Interest expense – accretion of fair market value of secured debt |
|
|
31,250 |
|
|
|
32,892 |
|
|
|
63,116 |
|
|
|
65,549 |
|
|
Interest expense – debt issuance costs |
|
|
(496,897 |
) |
|
|
(936,278 |
) |
|
|
(1,169,370 |
) |
|
|
(1,879,761 |
) |
|
Net loss on extinguishment of debt |
|
|
— |
|
|
|
— |
|
|
|
(2,444,788 |
) |
|
|
— |
|
|
Other |
|
|
171,203 |
|
|
|
152,456 |
|
|
|
1,614,585 |
|
|
|
2,729,155 |
|
|
Net loss |
|
|
(1,310,838 |
) |
|
|
(7,062,841 |
) |
|
|
(13,614,304 |
) |
|
|
(44,806,422 |
) |
|
Net loss attributable to the noncontrolling interests in our Operating Partnership |
|
|
546,092 |
|
|
|
933,443 |
|
|
|
2,023,086 |
|
|
|
5,965,095 |
|
|
Less: Distributions to preferred stockholders |
|
|
(3,116,438 |
) |
|
|
(2,362,023 |
) |
|
|
(6,198,630 |
) |
|
|
(4,724,045 |
) |
|
Net loss attributable to SmartStop Self Storage REIT, Inc. common stockholders |
|
$ |
(3,881,184 |
) |
|
$ |
(8,491,421 |
) |
|
$ |
(17,789,848 |
) |
|
$ |
(43,565,372 |
) |
|
Net loss per Class A share – basic and diluted |
|
$ |
(0.05 |
) |
|
$ |
(0.14 |
) |
|
$ |
(0.24 |
) |
|
$ |
(0.74 |
) |
|
Net loss per Class T share – basic and diluted |
|
$ |
(0.05 |
) |
|
$ |
(0.14 |
) |
|
$ |
(0.24 |
) |
|
$ |
(0.74 |
) |
|
Weighted average Class A shares outstanding – basic and diluted |
|
|
75,994,754 |
|
|
|
51,622,509 |
|
|
|
66,252,067 |
|
|
|
51,469,807 |
|
|
Weighted average Class T shares outstanding – basic and diluted |
|
|
7,960,999 |
|
|
|
7,776,128 |
|
|
|
7,944,502 |
|
|
|
7,764,393 |
|
|
SMARTSTOP SELF STORAGE REIT, INC. AND SUBSIDIARIES |
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NON-GAAP MEASURE – COMPUTATION OF ADJUSTED FUNDS FROM OPERATIONS |
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|
(Unaudited) |
||||||||||||||||
|
|
|
Three Months Ended June 30, 2021 |
|
Three Months Ended June 30, 2020 |
|
Six Months Ended June 30, 2021 |
|
Six Months Ended June 30, 2020 |
||||||||
|
Net loss (attributable to common stockholders) |
|
$ |
(3,881,184 |
) |
|
$ |
(8,491,421 |
) |
|
$ |
(17,789,848 |
) |
|
$ |
(43,565,372 |
) |
|
Add: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Depreciation of real estate |
|
|
10,521,283 |
|
|
|
7,705,792 |
|
|
|
18,898,768 |
|
|
|
15,293,130 |
|
|
Depreciation and amortization of real estate and intangible assets from unconsolidated entities |
|
|
213,959 |
|
|
|
— |
|
|
|
230,996 |
|
|
|
— |
|
|
Amortization of real estate related intangible assets |
|
|
3,441,144 |
|
|
|
2,170,465 |
|
|
|
4,003,229 |
|
|
|
4,343,030 |
|
|
Gain on deconsolidation |
|
|
(169,533 |
) |
|
|
— |
|
|
|
(169,533 |
) |
|
|
— |
|
|
Gain on sale of real estate |
|
|
(178,631 |
) |
|
|
— |
|
|
|
(178,631 |
) |
|
|
— |
|
|
Deduct: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Adjustment for noncontrolling interests |
|
|
(1,500,869 |
) |
|
|
(1,305,577 |
) |
|
|
(2,616,924 |
) |
|
|
(2,603,208 |
) |
|
FFO (attributable to common stockholders) |
|
|
8,446,169 |
|
|
|
79,259 |
|
|
|
2,378,057 |
|
|
|
(26,532,420 |
) |
|
Other Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Intangible amortization expense – contracts(1) |
|
|
212,537 |
|
|
|
1,047,687 |
|
|
|
909,999 |
|
|
|
2,544,753 |
|
|
Acquisition expenses(2) |
|
|
30,448 |
|
|
|
97,221 |
|
|
|
336,098 |
|
|
|
125,326 |
|
|
Acquisition expenses and foreign currency (gains) losses, net from unconsolidated entities |
|
|
107,388 |
|
|
|
— |
|
|
|
107,388 |
|
|
|
— |
|
|
Contingent earnout adjustment(3) |
|
|
400,000 |
|
|
|
500,000 |
|
|
|
2,519,744 |
|
|
|
(6,700,000 |
) |
|
Impairment of goodwill and intangible assets(4) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
36,465,732 |
|
|
Impairment of investments in Managed REITs(4) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4,376,879 |
|
|
Write-off of equity interest and preexisting relationships in SST IV upon acquisition of control |
|
|
— |
|
|
|
— |
|
|
|
8,389,573 |
|
|
|
— |
|
|
Accretion of fair market value of secured debt(5) |
|
|
(31,250 |
) |
|
|
(32,892 |
) |
|
|
(63,116 |
) |
|
|
(65,549 |
) |
|
Net loss on extinguishment of debt(6) |
|
|
— |
|
|
|
— |
|
|
|
2,444,788 |
|
|
|
— |
|
|
Foreign currency and interest rate derivative (gains) losses, net(7) |
|
|
(643,547 |
) |
|
|
(57,676 |
) |
|
|
(425,549 |
) |
|
|
109,843 |
|
|
Adjustment of deferred tax liabilities(1) |
|
|
(56,880 |
) |
|
|
(276,216 |
) |
|
|
(1,929,746 |
) |
|
|
(3,023,113 |
) |
|
Adjustment for noncontrolling interests |
|
|
(1,784 |
) |
|
|
(168,680 |
) |
|
|
(1,435,079 |
) |
|
|
(4,488,613 |
) |
|
FFO, as adjusted (attributable to common stockholders) |
|
|
8,463,081 |
|
|
|
1,188,703 |
|
|
|
13,232,157 |
|
|
|
2,812,838 |
|
|
Net loss attributable to the noncontrolling interests in our Operating Partnership |
|
|
(546,092 |
) |
|
|
(933,443 |
) |
|
|
(2,023,086 |
) |
|
|
(5,965,095 |
) |
|
Adjustment for noncontrolling interests |
|
|
1,502,653 |
|
|
|
1,474,257 |
|
|
|
4,052,003 |
|
|
|
7,091,820 |
|
|
FFO, as adjusted (attributable to common Stockholders and OP unit holders) |
|
$ |
9,419,642 |
|
|
$ |
1,729,517 |
|
|
$ |
15,261,074 |
|
|
$ |
3,939,563 |
|
|
(1) |
|
These items represent the amortization, accretion, or adjustment of intangible assets or deferred tax liabilities. As these items are non-cash and not primary drivers in SmartStop’s decision-making process, FFO is adjusted for their effect to arrive at FFO, as adjusted, as a means of determining a comparable sustainable operating performance metric to other real estate companies. |
|
(2) |
|
In evaluating investments in real estate, SmartStop differentiates the costs to acquire the investment from the operations derived from the investment. Such information would be comparable only for publicly registered, non-traded REITs that have generally completed their acquisition activity and have other similar operating characteristics. |
|
(3) |
|
The contingent earnout adjustment represents the adjustment to the fair value of the Class A-2 Units issued in connection with the Self Administration Transaction. FFO is adjusted to arrive at FFO, as adjusted, as this acquisition related item is not a primary driver in SmartStop’s decision-making process and excluding this provides investors a view of SmartStop’s continuing operating portfolio performance over time. |
|
(4) |
|
The impairment charges relate to SmartStop’s goodwill, intangible assets and investments in the Managed REIT Platform acquired in the Self Administration Transaction. SmartStop believes that adjusting for such non-recurring items provides useful supplemental information because such expenses may not be reflective of on-going operations and is consistent with management’s analysis of SmartStop’s operating performance and provides for a means of determining a comparable sustainable operating performance metric. |
|
(5) |
|
This represents the difference between the stated interest rate and the estimated market interest rate on assumed notes as of the date of acquisition. Such amounts have been excluded from FFO, as adjusted, because SmartStop believes FFO, as adjusted, provides useful supplementary information by focusing on operating fundamentals, rather than events not related to SmartStop’s normal operations. SmartStop is responsible for managing interest rate risk and do not rely on another party to manage such risk. |
|
(6) |
|
The net loss associated with the extinguishment of debt includes prepayment penalties, the write-off of unamortized deferred financing fees, and other fees incurred. SmartStop believes that adjusting for such non-recurring items provides useful supplemental information because such losses may not be reflective of on-going transactions and operations and is consistent with management’s analysis of SmartStop’s operating performance. |
|
(7) |
|
This represents the mark-to-market adjustment for SmartStop’s derivative instruments not designated for hedge accounting and the ineffective portion of the change in fair value of derivatives recognized in earnings, as well as changes in foreign currency related to SmartStop’s foreign equity investments not classified as long term. These derivative contracts are intended to manage the Company’s exposure to interest rate and foreign currency risk which may not be reflective of SmartStop’s ongoing performance and may reflect unrealized impacts on SmartStop’s operating performance. Such amounts are recorded in “Other” within SmartStop’s consolidated statements of operations. |
SMARTSTOP SELF STORAGE REIT, INC. AND SUBSIDIARIES
NON-GAAP MEASURE – COMPUTATION OF SAME-STORE OPERATING RESULTS
(Unaudited)
The following table sets forth operating data for SmartStop’s same-store facilities (those properties included in the consolidated results of operations since January 1, 2020, excluding nine lease-up properties SmartStop owned as of January 1, 2020) for the three months ended June 30, 2021 and 2020. SmartStop considers the following data to be meaningful as this allows for the comparison of results without the effects of acquisition, lease up, or development activity.
|
|
|
Same-Store Facilities |
|
|
Non Same-Store Facilities |
|
Total |
|
||||||||||||||||||||||||||
|
|
|
2021 |
|
|
2020 |
|
|
% Change |
|
|
2021 |
|
|
2020 |
|
|
% Change |
|
2021 |
|
|
2020 |
|
|
% Change |
|
||||||||
|
Revenue (1) |
|
$ |
30,011,041 |
|
|
$ |
24,702,072 |
|
|
|
21.5 |
% |
|
$ |
10,120,699 |
|
|
$ |
1,428,139 |
|
|
N/M |
|
$ |
40,131,740 |
|
|
$ |
26,130,211 |
|
|
|
53.6 |
% |
|
Property operating expenses (2) |
|
|
8,878,839 |
|
|
|
8,279,464 |
|
|
|
7.2 |
% |
|
|
3,601,130 |
|
|
|
915,579 |
|
|
N/M |
|
|
12,479,969 |
|
|
|
9,195,043 |
|
|
|
35.7 |
% |
|
Property operating income |
|
$ |
21,132,202 |
|
|
$ |
16,422,608 |
|
|
|
28.7 |
% |
|
$ |
6,519,569 |
|
|
$ |
512,560 |
|
|
N/M |
|
$ |
27,651,771 |
|
|
$ |
16,935,168 |
|
|
|
63.3 |
% |
|
Number of facilities |
|
|
103 |
|
|
|
103 |
|
|
|
|
|
|
|
36 |
|
(6) |
|
9 |
|
|
|
|
|
139 |
|
(6) |
|
112 |
|
|
|
|
|
|
Rentable square feet (3) |
|
|
7,595,600 |
|
|
|
7,557,300 |
|
|
|
|
|
|
|
2,982,400 |
|
|
|
680,300 |
|
|
|
|
|
10,578,000 |
|
(6) |
|
8,237,600 |
|
|
|
|
|
|
Average physical occupancy (4) |
|
|
95.8 |
% |
|
|
89.7 |
% |
|
|
|
|
|
N/M |
|
|
N/M |
|
|
|
|
|
94.6 |
% |
|
|
88.1 |
% |
|
|
|
|
||
|
Annualized rent per occupied square foot (5) |
|
$ |
16.50 |
|
|
$ |
14.38 |
|
|
|
|
|
|
N/M |
|
|
N/M |
|
|
|
|
$ |
16.18 |
|
|
$ |
14.12 |
|
|
|
|
|
||
N/M Not meaningful
|
(1) |
|
Revenue includes rental revenue, Tenant Programs revenue, ancillary revenue, and administrative and late fees. |
|
(2) |
|
Property operating expenses excludes corporate general and administrative expenses, interest expense, depreciation, amortization expense, and acquisition expenses. |
|
(3) |
|
Of the total rentable square feet, parking represented approximately 937,000 square feet and 678,000 square feet as of June 30, 2021 and 2020, respectively. On a same-store basis, for the same periods, parking represented approximately 678,000 square feet. |
|
(4) |
|
Determined by dividing the sum of the month-end occupied square feet for the applicable group of facilities for each applicable period by the sum of their month-end rentable square feet for the period. |
|
(5) |
|
Determined by dividing the aggregate realized rental income for each applicable period by the aggregate of the month-end occupied square feet for the period. Properties are included in the respective calculations in their first full month of operations, as appropriate. SmartStop has excluded the realized rental revenue and occupied square feet related to parking herein for the purpose of calculating annualized rent per occupied square foot. |
|
(6) |
|
Included in the non same-store data is a self storage facility consisting of approximately 84,000 square feet owned by SST VI OP for the period during which SmartStop consolidated their financial statements. As of June 30, 2021, SmartStop was no longer required to consolidate their financial statements. |
SmartStop’s same-store revenue increased by approximately $5.3 million for the three months ended June 30, 2021 compared to the three months ended June 30, 2020 due to higher annualized rent per occupied square foot and increased occupancy.
The following table presents a reconciliation of net loss as presented on SmartStop’s consolidated statements of operations to property operating income, as stated above, for the periods indicated:
|
|
|
For the Three Months Ended June 30, |
||||||
|
|
|
2021 |
|
2020 |
||||
|
Net loss |
|
$ |
(1,310,838 |
) |
|
$ |
(7,062,841 |
) |
|
Adjusted to exclude: |
|
|
|
|
|
|
||
|
Managed REIT Platform revenue |
|
|
(1,058,291 |
) |
|
|
(1,852,893 |
) |
|
Managed REIT Platform expenses |
|
|
316,142 |
|
|
|
1,008,014 |
|
|
General and administrative |
|
|
6,811,313 |
|
|
|
4,149,713 |
|
|
Depreciation |
|
|
10,742,801 |
|
|
|
7,842,443 |
|
|
Intangible amortization expense |
|
|
3,653,681 |
|
|
|
3,218,152 |
|
|
Acquisition expenses |
|
|
30,448 |
|
|
|
97,221 |
|
|
Contingent earnout adjustment |
|
|
400,000 |
|
|
|
500,000 |
|
|
Gain on sale of real estate |
|
|
(178,631 |
) |
|
|
— |
|
|
Interest expense |
|
|
7,950,702 |
|
|
|
8,284,429 |
|
|
Interest expense – accretion of fair market value of secured debt |
|
|
(31,250 |
) |
|
|
(32,892 |
) |
|
Interest expense – debt issuance costs |
|
|
496,897 |
|
|
|
936,278 |
|
|
Other |
|
|
(171,203 |
) |
|
|
(152,456 |
) |
|
Total property operating income |
|
$ |
27,651,771 |
|
|
$ |
16,935,168 |
|
The following table presents a reconciliation of same-store metrics by Metropolitan Statistical Area (“MSA”) or Census Metropolitan Areas (“CMA”), for the periods indicated:
|
|
|
% of |
|
|
# of |
|
|
Net Rentable |
|
|
|
|
|
Net Rent per |
|
|
Avg. |
|
|
% |
|
|
Revenue for the Three |
|
|
% |
|
|
Expenses for the Three |
|
|
% |
|
|
NOI for the Three Months |
|
|
% |
|
|||||||||||||||
|
MSA/CMA |
|
NOI |
|
|
Stores |
|
|
Sq. Ft. |
|
|
Units |
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
Change |
|
|
2021 |
|
|
2020 |
|
|
Change |
|
|
2021 |
|
|
2020 |
|
|
Change |
|
|
2021 |
|
|
2020 |
|
|
Change |
|
|
Miami – Fort Lauderdale |
|
15.8 |
% |
|
9 |
|
|
941,400 |
|
|
7,750 |
|
$ |
20.65 |
|
$ |
18.70 |
|
|
94.8 |
% |
|
88.8 |
% |
|
6.0 |
% |
$ |
4,429,592 |
|
$ |
3,790,280 |
|
|
16.9 |
% |
$ |
1,087,089 |
|
$ |
1,009,228 |
|
|
7.7 |
% |
$ |
3,342,503 |
|
$ |
2,781,052 |
|
|
20.2 |
% |
|
Toronto (2) |
|
14.7 |
% |
|
10 |
|
|
849,600 |
|
|
7,800 |
|
|
20.20 |
|
|
15.13 |
|
|
95.5 |
% |
|
92.5 |
% |
|
3.0 |
% |
|
4,222,800 |
|
|
3,159,757 |
|
|
33.6 |
% |
|
1,107,797 |
|
|
1,011,978 |
|
|
9.5 |
% |
|
3,115,003 |
|
|
2,147,779 |
|
|
45.0 |
% |
|
Los Angeles |
|
11.4 |
% |
|
10 |
|
|
660,400 |
|
|
6,200 |
|
|
19.78 |
|
|
17.75 |
|
|
96.8 |
% |
|
90.8 |
% |
|
5.9 |
% |
|
3,201,084 |
|
|
2,640,544 |
|
|
21.2 |
% |
|
794,447 |
|
|
750,095 |
|
|
5.9 |
% |
|
2,406,637 |
|
|
1,890,449 |
|
|
27.3 |
% |
|
Asheville |
|
7.6 |
% |
|
13 |
|
|
780,200 |
|
|
5,530 |
|
|
12.79 |
|
|
11.35 |
|
|
95.4 |
% |
|
89.3 |
% |
|
6.1 |
% |
|
2,243,269 |
|
|
1,941,617 |
|
|
15.5 |
% |
|
645,575 |
|
|
579,851 |
|
|
11.3 |
% |
|
1,597,694 |
|
|
1,361,766 |
|
|
17.3 |
% |
|
Las Vegas |
|
7.2 |
% |
|
5 |
|
|
552,500 |
|
|
4,380 |
|
|
15.30 |
|
|
13.35 |
|
|
96.3 |
% |
|
91.3 |
% |
|
5.0 |
% |
|
1,871,000 |
|
|
1,523,832 |
|
|
22.8 |
% |
|
355,546 |
|
|
344,191 |
|
|
3.3 |
% |
|
1,515,454 |
|
|
1,179,641 |
|
|
28.5 |
% |
|
San Francisco – Oakland |
|
6.2 |
% |
|
4 |
|
|
322,600 |
|
|
2,920 |
|
|
21.93 |
|
|
19.66 |
|
|
95.5 |
% |
|
88.5 |
% |
|
7.1 |
% |
|
1,748,144 |
|
|
1,436,514 |
|
|
21.7 |
% |
|
445,084 |
|
|
421,353 |
|
|
5.6 |
% |
|
1,303,060 |
|
|
1,015,161 |
|
|
28.4 |
% |
|
Detroit |
|
3.1 |
% |
|
4 |
|
|
266,100 |
|
|
2,220 |
|
|
13.05 |
|
|
11.93 |
|
|
96.8 |
% |
|
87.8 |
% |
|
8.9 |
% |
|
874,187 |
|
|
724,116 |
|
|
20.7 |
% |
|
212,137 |
|
|
200,405 |
|
|
5.9 |
% |
|
662,050 |
|
|
523,711 |
|
|
26.4 |
% |
|
Riverside – SB |
|
3.0 |
% |
|
3 |
|
|
180,700 |
|
|
1,770 |
|
|
17.58 |
|
|
14.50 |
|
|
98.8 |
% |
|
92.8 |
% |
|
6.0 |
% |
|
828,481 |
|
|
643,495 |
|
|
28.7 |
% |
|
192,051 |
|
|
186,064 |
|
|
3.2 |
% |
|
636,430 |
|
|
457,431 |
|
|
39.1 |
% |
|
Dayton |
|
2.8 |
% |
|
7 |
|
|
392,400 |
|
|
3,340 |
|
|
10.58 |
|
|
8.89 |
|
|
95.5 |
% |
|
92.9 |
% |
|
2.6 |
% |
|
1,035,962 |
|
|
857,345 |
|
|
20.8 |
% |
|
441,251 |
|
|
361,157 |
|
|
22.2 |
% |
|
594,711 |
|
|
496,188 |
|
|
19.9 |
% |
|
Port St. Lucie |
|
2.7 |
% |
|
3 |
|
|
251,600 |
|
|
2,010 |
|
|
15.46 |
|
|
13.49 |
|
|
96.6 |
% |
|
86.9 |
% |
|
9.7 |
% |
|
896,173 |
|
|
707,321 |
|
|
26.7 |
% |
|
333,659 |
|
|
344,826 |
|
|
-3.2 |
% |
|
562,514 |
|
|
362,495 |
|
|
55.2 |
% |
|
Denver |
|
2.6 |
% |
|
5 |
|
|
290,700 |
|
|
2,550 |
|
|
12.73 |
|
|
11.66 |
|
|
96.3 |
% |
|
86.7 |
% |
|
9.6 |
% |
|
945,909 |
|
|
779,657 |
|
|
21.3 |
% |
|
401,721 |
|
|
375,148 |
|
|
7.1 |
% |
|
544,188 |
|
|
404,509 |
|
|
34.5 |
% |
|
Chicago |
|
2.4 |
% |
|
5 |
|
|
315,600 |
|
|
2,880 |
|
|
11.97 |
|
|
10.82 |
|
|
95.8 |
% |
|
87.7 |
% |
|
8.1 |
% |
|
959,511 |
|
|
785,361 |
|
|
22.2 |
% |
|
459,223 |
|
|
416,239 |
|
|
10.3 |
% |
|
500,288 |
|
|
369,122 |
|
|
35.5 |
% |
|
Myrtle Beach |
|
2.1 |
% |
|
2 |
|
|
197,800 |
|
|
1,450 |
|
|
12.51 |
|
|
11.86 |
|
|
93.7 |
% |
|
88.0 |
% |
|
5.8 |
% |
|
572,286 |
|
|
501,239 |
|
|
14.2 |
% |
|
133,829 |
|
|
127,569 |
|
|
4.9 |
% |
|
438,457 |
|
|
373,670 |
|
|
17.3 |
% |
|
Raleigh – Cary |
|
1.4 |
% |
|
3 |
|
|
163,800 |
|
|
1,090 |
|
|
11.02 |
|
|
10.17 |
|
|
96.6 |
% |
|
89.6 |
% |
|
7.0 |
% |
|
436,942 |
|
|
369,200 |
|
|
18.3 |
% |
|
151,057 |
|
|
159,630 |
|
|
-5.4 |
% |
|
285,885 |
|
|
209,570 |
|
|
36.4 |
% |
|
Other |
|
17.2 |
% |
|
20 |
|
|
1,430,200 |
|
|
12,780 |
|
|
16.42 |
|
|
14.53 |
|
|
95.9 |
% |
|
89.1 |
% |
|
6.7 |
% |
|
5,745,701 |
|
|
4,841,794 |
|
|
18.7 |
% |
|
2,118,373 |
|
|
1,991,730 |
|
|
6.4 |
% |
|
3,627,328 |
|
|
2,850,064 |
|
|
27.3 |
% |
|
Total Same-Store |
|
100.0 |
% |
|
103 |
|
|
7,595,600 |
|
|
64,670 |
|
$ |
16.50 |
|
$ |
14.38 |
|
|
95.8 |
% |
|
89.7 |
% |
|
6.1 |
% |
$ |
30,011,041 |
|
$ |
24,702,072 |
|
|
21.5 |
% |
$ |
8,878,839 |
|
$ |
8,279,464 |
|
|
7.2 |
% |
$ |
21,132,202 |
|
$ |
16,422,608 |
|
|
28.7 |
% |
Contacts
David Corak
VP of Corporate Finance
SmartStop Self Storage REIT, Inc.
949-542-3331
ir@smartstop.com