SmartStop Self Storage REIT, Inc. Reports Strong Fourth Quarter 2021 Results with Best in Class Same-Store Revenue & NOI Growth
LADERA RANCH, Calif.–(BUSINESS WIRE)–SmartStop Self Storage REIT, Inc. (“SmartStop”), a self-managed and fully-integrated self storage company, announced its overall results for the three and twelve months ended December 31, 2021.
“The fourth quarter capped off a truly exceptional year for SmartStop, and we are grateful for the remarkable team that’s worked tirelessly to build SmartStop to the company it is today,” said H. Michael Schwartz, Chairman and Chief Executive Officer of SmartStop. “In addition to posting best in class same-store revenue and NOI growth every quarter this year and for the full year, our fourth quarter FFO, as adjusted grew approximately 182% over the prior year. We are particularly proud that during the quarter, we declared an updated estimated Net Asset Value (‘NAV’) per share of $15.08 calculated as of June 30, 2021, approximately 45% higher than the prior NAV valued as of December 31, 2019, which values the Company at an enterprise value of over $2.5 billion. This value creation substantiates the investments we’ve made in our platform, technology and people. Having closed the $375 million Strategic Storage Trust IV, Inc. (‘SST IV’) merger along with a new $700 million multi-currency credit facility, we are poised to deliver strong risk-adjusted returns and grow stockholder value in 2022 and beyond.”
Three Months Ended December 31, 2021 Financial Highlights:
-
Net loss attributable to common stockholders was approximately $9.4 million for the three months ended December 31, 2021. This represents an increase of approximately $4.9 million when compared to the same period in 2020. Net loss per Class A and Class T shares (basic and diluted) was $0.11, an increase of $0.04, or 47%, when compared to the same period in 2020.
-
Total self storage-related revenues increased by approximately $15.1 million, or 51.7%, when compared to the same period in 2020.
-
FFO, as adjusted (attributable to common stockholders and Operating Partnership (“OP”) unit holders), was approximately $14.9 million. This represents an increase of approximately $9.2 million, or 159.3%, when compared to the same period in 2020.
-
FFO, as adjusted per share and OP unit outstanding – diluted was $0.16, an increase of $0.08, or 100.0%, when compared to the same period in 2020.
-
Same-store revenues, expenses and NOI increased by 19.0%, 2.9% and 26.6%, respectively, compared to the same period in 2020.
-
Same-store average physical occupancy increased by 3.2% to 95.4% compared to 92.2% during the same period in 2020.
- Same-store annualized rent per occupied square foot was approximately $17.68, which represented an increase of approximately 16.0% when compared to the same period in 2020.
Twelve Months Ended December 31, 2021 Financial Highlights:
-
Net loss attributable to common stockholders was approximately $29.4 million for the twelve months ended December 31, 2021. This represents a decrease of approximately $25.0 million when compared to the same period in 2020. Net loss per Class A and Class T shares (basic and diluted) was $0.37, a decrease of $0.54, or 59.0%, when compared to the same period in 2020.
-
Total self storage-related revenues increased by approximately $48.0 million, or 43.6%, when compared to the same period in 2020.
-
Same-store revenues, expenses and NOI increased by 17.4%, 3.3% and 24.5%, respectively, compared to the same period in 2020.
-
Same-store average physical occupancy increased by 4.5% to 95.1%, compared to 90.6% during the same period in 2020.
- Same-store annualized rent per occupied square foot was approximately $16.51, which represented an increase of approximately 11.5% when compared to the same period in 2020.
External Growth
In October, 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.
In November, the Company announced the opening of a newly constructed self storage facility in Scarborough, Ontario, Canada. The property’s 970 units are 100% climate-controlled across approximately 97,000 square feet. The property offers customers a variety of amenities including state-of-the-art security systems, elevators, keypad access, a gated loading area and more. This is SmartStop’s 19th owned or managed operating location in the Greater Toronto Area (GTA).
Subsequent to quarter end, the Company announced the acquisition of a self storage facility in Algonquin, IL. The property’s 900 units span across approximately 114,000 square feet, and offer customers a blend of interior, climate controlled and non-climate, drive-up product. The facility is located in a dense and high-end suburban pocket of Chicago serving the communities of Cary, Carpentersville, Lake in the Hills, Lake Zurich, Trout Valley and West Dundee. This is SmartStop’s sixth owned or managed location in the Chicago market and 163rd in North America.
Strategic Storage Growth Trust II, Inc. Merger
Subsequent to quarter end, SmartStop and Strategic Storage Growth Trust II, Inc. (“SSGT II”), a private REIT sponsored by an indirect subsidiary of SmartStop, announced that the companies have entered into a definitive agreement to merge in an all-stock transaction, in which SSGT II will merge into a newly-formed subsidiary of SmartStop. Per the merger agreement, SmartStop will acquire all of the real estate owned by SSGT II, consisting of 10 wholly-owned operating self storage facilities located across seven states, an interest in one operating property held through an unconsolidated joint venture with an unaffiliated third party and two properties in various stages of development that are held through an unconsolidated joint venture with an unaffiliated third party. The total SSGT II operating portfolio, including the operating joint venture property, currently represents approximately 8,500 self storage units and 900,000 net rentable square feet. Additionally, the Company will obtain SSGT II’s rights to acquire a property located in Southern California.
Under the terms of the agreement, SSGT II stockholders will receive 0.9118 shares of SmartStop Class A common stock for each share of SSGT II common stock they own. This exchange ratio represents an increase of 37 percent above SSGT II’s most recent offering price, when using SmartStop’s most recent estimated NAV of $15.08 per share. The transaction values SSGT II’s real estate assets at approximately $280 million, based on September 30, 2021 share counts and debt principal balances outstanding, and using the agreed exchange ratio and SmartStop’s estimated NAV per share of $15.08. The merger is expected to close during the first half of 2022. Additional information regarding the merger and the merger agreement can be found in the Form 8-K filed by SmartStop with the Securities and Exchange Commission on February 24, 2022.
Capital Markets Activity
In October, 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 remains materially unchanged.
Net Asset Value
During the quarter, the Company announced that its board of directors declared an updated estimated Net Asset Value (“NAV”) per share of $15.08 for its Class A and Class T shares, valued as of June 30, 2021. SmartStop’s previous estimated NAV per share was $10.40 valued 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 estimated NAV per share.
Declared Distributions
On December 20, 2021, SmartStop’s board of directors declared a distribution rate for the first quarter of 2022, 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 CONSOLIDATED BALANCE SHEETS |
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December 31, |
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2021 |
|
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2020 |
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|
ASSETS |
|
|
|
|
|
|
||
|
Real estate facilities: |
|
|
|
|
|
|
||
|
Land |
|
$ |
397,508,081 |
|
|
$ |
335,800,354 |
|
|
Buildings |
|
|
1,117,204,944 |
|
|
|
810,480,845 |
|
|
Site improvements |
|
|
78,910,603 |
|
|
|
63,821,383 |
|
|
|
|
|
1,593,623,628 |
|
|
|
1,210,102,582 |
|
|
Accumulated depreciation |
|
|
(155,926,875 |
) |
|
|
(115,903,045 |
) |
|
|
|
|
1,437,696,753 |
|
|
|
1,094,199,537 |
|
|
Construction in process |
|
|
1,799,004 |
|
|
|
1,761,303 |
|
|
Real estate facilities, net |
|
|
1,439,495,757 |
|
|
|
1,095,960,840 |
|
|
Cash and cash equivalents |
|
|
37,254,226 |
|
|
|
72,705,624 |
|
|
Restricted cash |
|
|
7,432,135 |
|
|
|
7,952,052 |
|
|
Investments in unconsolidated real estate ventures |
|
|
18,943,284 |
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|
|
— |
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|
Investments in and advances to Managed REITs |
|
|
12,404,380 |
|
|
|
15,624,389 |
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Other assets, net |
|
|
15,423,508 |
|
|
|
7,734,276 |
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|
Intangible assets, net of accumulated amortization |
|
|
14,337,820 |
|
|
|
12,406,427 |
|
|
Trademarks, net of accumulated amortization |
|
|
16,052,941 |
|
|
|
16,194,118 |
|
|
Goodwill |
|
|
53,643,331 |
|
|
|
53,643,331 |
|
|
Debt issuance costs, net of accumulated amortization |
|
|
3,305,394 |
|
|
|
— |
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|
Total assets |
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$ |
1,618,292,776 |
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|
$ |
1,282,221,057 |
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LIABILITIES AND EQUITY |
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|
|
|
|
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|
Debt, net |
|
$ |
873,866,855 |
|
|
$ |
717,952,233 |
|
|
Accounts payable and accrued liabilities |
|
|
22,693,941 |
|
|
|
23,038,976 |
|
|
Due to affiliates |
|
|
584,291 |
|
|
|
667,429 |
|
|
Distributions payable |
|
|
8,360,420 |
|
|
|
6,650,317 |
|
|
Contingent earnout |
|
|
30,000,000 |
|
|
|
28,600,000 |
|
|
Deferred tax liability |
|
|
7,719,098 |
|
|
|
8,380,215 |
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|
Total liabilities |
|
|
943,224,605 |
|
|
|
785,289,170 |
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|
Commitments and contingencies |
|
|
|
|
|
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Redeemable common stock |
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|
71,334,675 |
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|
|
57,335,575 |
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Preferred stock, $0.001 par value; 200,000,000 shares authorized: |
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|
|
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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 December 31, 2021 and 2020, respectively, with aggregate liquidation preferences of $203,150,685, and $202,928,620 at December 31, 2021 and 2020, respectively |
|
|
196,356,107 |
|
|
|
196,356,107 |
|
|
Equity: |
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|
|
|
|
|
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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; 77,057,743 and 52,660,402 shares issued and outstanding at December 31, 2021 and 2020, respectively |
|
|
77,058 |
|
|
|
52,661 |
|
|
Class T common stock, $0.001 par value; 350,000,000 shares authorized; 8,056,198 and 7,903,911 shares issued and outstanding at December 31, 2021 and 2020 respectively |
|
|
8,056 |
|
|
|
7,904 |
|
|
Additional paid-in capital |
|
|
724,739,872 |
|
|
|
492,408,006 |
|
|
Distributions |
|
|
(210,964,464 |
) |
|
|
(163,953,169 |
) |
|
Accumulated deficit |
|
|
(170,846,475 |
) |
|
|
(141,444,880 |
) |
|
Accumulated other comprehensive loss |
|
|
(279,975 |
) |
|
|
(3,834,228 |
) |
|
Total SmartStop Self Storage REIT, Inc. equity |
|
|
342,734,072 |
|
|
|
183,236,294 |
|
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Noncontrolling interests in our Operating Partnership |
|
|
64,632,417 |
|
|
|
59,982,111 |
|
|
Other noncontrolling interests |
|
|
10,900 |
|
|
|
21,800 |
|
|
Total noncontrolling interests |
|
|
64,643,317 |
|
|
|
60,003,911 |
|
|
Total equity |
|
|
407,377,389 |
|
|
|
243,240,205 |
|
|
Total liabilities and equity |
|
$ |
1,618,292,776 |
|
|
$ |
1,282,221,057 |
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SMARTSTOP SELF STORAGE REIT, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS |
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Three Months Ended December 31, |
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Twelve Months Ended December 31, |
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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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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Self storage rental revenue |
|
$ |
42,306,574 |
|
|
$ |
27,667,870 |
|
|
$ |
150,610,337 |
|
|
$ |
104,888,883 |
|
|
Ancillary operating revenue |
|
|
1,960,715 |
|
|
|
1,517,829 |
|
|
|
7,552,597 |
|
|
|
5,286,042 |
|
|
Managed REIT Platform revenue |
|
|
1,713,910 |
|
|
|
2,360,929 |
|
|
|
6,322,970 |
|
|
|
8,048,630 |
|
|
Reimbursable costs from Managed REITs |
|
|
1,028,454 |
|
|
|
1,346,945 |
|
|
|
4,278,667 |
|
|
|
5,800,808 |
|
|
Total revenues |
|
|
47,009,653 |
|
|
|
32,893,573 |
|
|
|
168,764,571 |
|
|
|
124,024,363 |
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property operating expenses |
|
|
12,711,216 |
|
|
|
9,618,356 |
|
|
|
48,127,657 |
|
|
|
38,305,199 |
|
|
Managed REIT Platform expenses |
|
|
227,430 |
|
|
|
294,818 |
|
|
|
1,451,166 |
|
|
|
2,806,921 |
|
|
Reimbursable costs from Managed REITs |
|
|
1,028,454 |
|
|
|
1,346,945 |
|
|
|
4,278,667 |
|
|
|
5,800,808 |
|
|
General and administrative |
|
|
6,467,944 |
|
|
|
4,641,467 |
|
|
|
23,265,196 |
|
|
|
16,471,199 |
|
|
Depreciation |
|
|
10,911,341 |
|
|
|
8,731,926 |
|
|
|
40,946,406 |
|
|
|
32,294,627 |
|
|
Intangible amortization expense |
|
|
3,798,241 |
|
|
|
1,301,434 |
|
|
|
12,422,205 |
|
|
|
9,777,116 |
|
|
Acquisition expenses |
|
|
386,755 |
|
|
|
772,189 |
|
|
|
934,838 |
|
|
|
1,366,092 |
|
|
Contingent earnout adjustment |
|
|
9,400,000 |
|
|
|
2,600,000 |
|
|
|
12,619,744 |
|
|
|
(2,500,000 |
) |
|
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 |
|
|
44,931,381 |
|
|
|
29,307,135 |
|
|
|
152,435,452 |
|
|
|
145,164,573 |
|
|
Gain on sale of real estate |
|
|
— |
|
|
|
— |
|
|
|
178,631 |
|
|
|
— |
|
|
Income (loss) from operations |
|
|
2,078,272 |
|
|
|
3,586,438 |
|
|
|
16,507,750 |
|
|
|
(21,140,210 |
) |
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
(8,073,760 |
) |
|
|
(7,880,405 |
) |
|
|
(31,818,237 |
) |
|
|
(32,597,613 |
) |
|
Interest expense – accretion of fair market value of secured debt |
|
|
18,598 |
|
|
|
32,345 |
|
|
|
110,942 |
|
|
|
130,682 |
|
|
Interest expense – debt issuance costs |
|
|
(7,807 |
) |
|
|
(754,141 |
) |
|
|
(1,676,309 |
) |
|
|
(3,586,381 |
) |
|
Net loss on extinguishment of debt |
|
|
— |
|
|
|
— |
|
|
|
(2,444,788 |
) |
|
|
— |
|
|
Other |
|
|
(1,024,959 |
) |
|
|
3,071,879 |
|
|
|
(244,076 |
) |
|
|
5,986,719 |
|
|
Net loss |
|
|
(7,009,656 |
) |
|
|
(1,943,884 |
) |
|
|
(19,564,718 |
) |
|
|
(51,206,803 |
) |
|
Net loss attributable to the noncontrolling interests in our Operating Partnership |
|
|
759,715 |
|
|
|
351,476 |
|
|
|
2,663,123 |
|
|
|
6,901,931 |
|
|
Less: Distributions to preferred stockholders |
|
|
(3,150,685 |
) |
|
|
(2,937,500 |
) |
|
|
(12,500,000 |
) |
|
|
(10,049,522 |
) |
|
Net loss attributable to SmartStop Self Storage REIT, Inc. common stockholders |
|
$ |
(9,400,626 |
) |
|
$ |
(4,529,908 |
) |
|
$ |
(29,401,595 |
) |
|
$ |
(54,354,394 |
) |
|
Net loss per Class A share – basic and diluted |
|
$ |
(0.11 |
) |
|
$ |
(0.08 |
) |
|
$ |
(0.37 |
) |
|
$ |
(0.91 |
) |
|
Net loss per Class T share – basic and diluted |
|
$ |
(0.11 |
) |
|
$ |
(0.08 |
) |
|
$ |
(0.37 |
) |
|
$ |
(0.91 |
) |
|
Weighted average Class A shares outstanding – basic and diluted |
|
|
76,707,037 |
|
|
|
52,288,033 |
|
|
|
71,454,798 |
|
|
|
51,813,718 |
|
|
Weighted average Class T shares outstanding – basic and diluted |
|
|
8,040,965 |
|
|
|
7,879,469 |
|
|
|
7,983,576 |
|
|
|
7,802,689 |
|
|
SMARTSTOP SELF STORAGE REIT, INC. AND SUBSIDIARIES NON-GAAP MEASURE – COMPUTATION OF FUNDS FROM OPERATIONS, AS ADJUSTED |
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|
Three Months Ended December 31, 2021 |
|
|
Three Months Ended December 31, 2020 |
|
|
Twelve Months Ended December 31, 2021 |
|
|
Twelve Months Ended December 31, 2020 |
|
||||
|
Net loss (attributable to common stockholders) |
|
$ |
(9,400,626 |
) |
|
$ |
(4,529,908 |
) |
|
$ |
(29,401,595 |
) |
|
$ |
(54,354,394 |
) |
|
Add: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation of real estate |
|
|
10,703,195 |
|
|
|
8,574,735 |
|
|
|
40,158,233 |
|
|
|
31,711,102 |
|
|
Amortization of real estate related intangible assets |
|
|
3,557,310 |
|
|
|
229,998 |
|
|
|
11,030,316 |
|
|
|
5,110,207 |
|
|
Depreciation and amortization of real estate and intangible assets from unconsolidated entities |
|
|
267,602 |
|
|
|
— |
|
|
|
754,831 |
|
|
|
— |
|
|
Deduct: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on deconsolidation |
|
|
— |
|
|
|
— |
|
|
|
(169,533 |
) |
|
|
— |
|
|
Gain on sale of real estate |
|
|
— |
|
|
|
— |
|
|
|
(178,631 |
) |
|
|
— |
|
|
Adjustment for noncontrolling interests |
|
|
(1,565,512 |
) |
|
|
(1,051,900 |
) |
|
|
(5,727,520 |
) |
|
|
(4,756,580 |
) |
|
FFO (attributable to common stockholders) |
|
|
3,561,969 |
|
|
|
3,222,925 |
|
|
|
16,466,101 |
|
|
|
(22,289,665 |
) |
|
Other Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intangible amortization expense – contracts(1) |
|
|
240,931 |
|
|
|
1,071,436 |
|
|
|
1,391,889 |
|
|
|
4,666,909 |
|
|
Acquisition expenses(2) |
|
|
386,755 |
|
|
|
772,189 |
|
|
|
934,838 |
|
|
|
1,366,092 |
|
|
Acquisition expenses and foreign currency (gains) losses, net from unconsolidated entities |
|
|
75,222 |
|
|
|
— |
|
|
|
210,377 |
|
|
|
— |
|
|
Contingent earnout adjustment(3) |
|
|
9,400,000 |
|
|
|
2,600,000 |
|
|
|
12,619,744 |
|
|
|
(2,500,000 |
) |
|
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 consolidation |
|
|
— |
|
|
|
— |
|
|
|
8,389,573 |
|
|
|
— |
|
|
Accretion of fair market value of secured debt(5) |
|
|
(18,598 |
) |
|
|
(32,345 |
) |
|
|
(110,942 |
) |
|
|
(130,682 |
) |
|
Net loss on extinguishment of debt(6) |
|
|
— |
|
|
|
— |
|
|
|
2,444,788 |
|
|
|
— |
|
|
Foreign currency and interest rate derivative losses, net(7) |
|
|
255,970 |
|
|
|
40,649 |
|
|
|
366,849 |
|
|
|
203,995 |
|
|
Adjustment of deferred tax liabilities(1) |
|
|
194,819 |
|
|
|
(2,627,403 |
) |
|
|
(2,025,869 |
) |
|
|
(5,926,732 |
) |
|
Adjustment for noncontrolling interests |
|
|
(1,134,148 |
) |
|
|
(457,271 |
) |
|
|
(2,720,691 |
) |
|
|
(5,321,725 |
) |
|
FFO, as adjusted (attributable to common stockholders) |
|
$ |
12,962,920 |
|
|
$ |
4,590,180 |
|
|
$ |
37,966,657 |
|
|
$ |
10,910,803 |
|
|
(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 FUNDS FROM OPERATIONS, AS ADJUSTED PER SHARE AND OP UNIT OUTSTANDING |
||||||||||||||||
|
|
Three Months Ended December 31, 2021 |
|
|
Three Months Ended December 31, 2020 |
|
|
Twelve Months Ended December 31, 2021 |
|
|
Twelve Months Ended December 31, 2020 |
|
|||||
|
FFO, as adjusted (attributable to common stockholders) |
|
$ |
12,962,920 |
|
|
$ |
4,590,180 |
|
|
$ |
37,966,657 |
|
|
$ |
10,910,803 |
|
|
Net loss attributable to noncontrolling interests in our OP |
|
|
(759,715 |
) |
|
|
(351,476 |
) |
|
|
(2,663,123 |
) |
|
|
(6,901,931 |
) |
|
Adjustment for noncontrolling interests |
|
|
2,699,660 |
|
|
|
1,509,171 |
|
|
|
8,448,211 |
|
|
|
10,078,305 |
|
|
FFO, as adjusted (attributable to common stockholders and OP unit holders) |
|
$ |
14,902,865 |
|
|
$ |
5,747,875 |
|
|
$ |
43,751,745 |
|
|
$ |
14,087,177 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average Class A & T shares outstanding |
|
|
84,748,002 |
|
|
|
60,167,502 |
|
|
|
79,438,374 |
|
|
|
59,616,407 |
|
|
Weighted average OP units outstanding |
|
|
10,271,642 |
|
|
|
9,095,029 |
|
|
|
10,097,549 |
|
|
|
9,095,029 |
|
|
Weighted average other dilutive securities |
|
|
489,477 |
|
|
|
174,636 |
|
|
|
284,820 |
|
|
|
127,739 |
|
|
Weighted average shares & OP units outstanding – diluted(1) |
|
|
95,509,121 |
|
|
|
69,437,167 |
|
|
|
89,820,743 |
|
|
|
68,839,175 |
|
|
FFO, as adjusted per share & OP unit outstanding – diluted |
|
$ |
0.16 |
|
|
$ |
0.08 |
|
|
$ |
0.49 |
|
|
$ |
0.20 |
|
|
(1) |
|
Includes all Class A Shares, Class T Shares and OP Units, as well as the dilutive effect of both unvested restricted stock and long term incentive plan units (both time-based units and performance based-units). The outstanding convertible preferred stock was excluded as the conversion of such shares was antidilutive. |
SMARTSTOP SELF STORAGE REIT, INC. AND SUBSIDIARIES
COMPUTATION OF SAME-STORE OPERATING RESULTS
(Unaudited)
Same-Store Facility Results – Three Months Ended December 31, 2021 and 2020
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 December 31, 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) |
|
$ |
32,420,617 |
|
|
$ |
27,238,620 |
|
|
|
19.0 |
% |
|
$ |
11,846,672 |
|
|
$ |
1,947,079 |
|
|
N/M |
|
$ |
44,267,289 |
|
|
$ |
29,185,699 |
|
|
|
51.7 |
% |
|
Property operating expenses (2) |
|
$ |
8,953,313 |
|
|
|
8,699,157 |
|
|
|
2.9 |
% |
|
$ |
3,757,903 |
|
|
|
919,199 |
|
|
N/M |
|
|
12,711,216 |
|
|
|
9,618,356 |
|
|
|
32.2 |
% |
|
Net operating income |
$ |
23,467,304 |
|
|
$ |
18,539,463 |
|
|
|
26.6 |
% |
|
$ |
8,088,769 |
|
|
$ |
1,027,880 |
|
|
N/M |
|
$ |
31,556,073 |
|
|
$ |
19,567,343 |
|
|
|
61.3 |
% |
|
|
Number of facilities |
|
|
103 |
|
|
|
103 |
|
|
|
|
|
|
|
36 |
|
|
|
9 |
|
|
|
|
|
139 |
|
|
|
112 |
|
|
|
|
|
|
Rentable square feet (3) |
|
|
7,595,600 |
|
|
|
7,557,300 |
|
|
|
|
|
|
|
2,985,200 |
|
|
|
680,300 |
|
|
|
|
|
10,580,800 |
|
|
|
8,237,600 |
|
|
|
|
|
|
Average physical occupancy (4) |
|
|
95.4 |
% |
|
|
92.2 |
% |
|
|
|
|
|
N/M |
|
|
N/M |
|
|
|
|
|
95.0 |
% |
|
|
91.6 |
% |
|
|
|
|
||
|
Annualized rent per occupied square foot (5) |
|
$ |
17.68 |
|
|
$ |
15.25 |
|
|
|
|
|
|
N/M |
|
|
N/M |
|
|
|
|
$ |
17.46 |
|
|
$ |
14.99 |
|
|
|
|
|
||
Contacts
David Corak
VP of Corporate Finance
SmartStop Self Storage REIT, Inc.
949-542-3331
www.investors.smartstopselfstorage.com
ir@smartstop.com