SmartStop Self Storage REIT, Inc. Reports Second Quarter 2022 Results
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 six months ended June 30, 2022.
“The second quarter was another strong period of growth, both organically and externally, culminating with the closing of the previously announced SSGT II merger at the beginning of June,” said H. Michael Schwartz, Chairman and CEO of SmartStop. “Prior to the closing of the SSGT II merger, we launched a new private REIT within our Managed REIT Platform, Strategic Storage Growth Trust III. Storage fundamentals remain robust in our busy summer rental season, as we were able to continue to increase rental rates throughout our owned portfolio. Additionally, we transformed the right side of our balance sheet with the closing of SmartStop’s inaugural private placement notes and the receipt of a BBB- investment grade credit rating. With our healthy balance sheet and Managed REIT Platform, we believe that we have ample levers to continue to execute on our overall growth strategies.”
Three Months Ended June 30, 2022 Financial Highlights:
- Net income attributable to common stockholders was approximately $9.1 million. This represents an improvement of approximately $13.0 million when compared to the same period in 2021. Net income per Class A and Class T shares (diluted) was $0.10, an improvement of $0.15 when compared to the same period in 2021.
- Total self storage-related revenues were approximately $48.6 million, an increase of approximately $8.4 million when compared to the same period in 2021.
- FFO, as adjusted (attributable to common stockholders and Operating Partnership (“OP”) unit holders), was approximately $17.4 million, an increase of approximately $8.0 million when compared to the same period in 2021.
- FFO, as adjusted per share and OP unit outstanding – diluted was $0.17, an increase of $0.07 when compared to the same period in 2021.
- Same-store revenues, expenses and NOI increased by 14.1%, 0.6% and 20.3%, respectively compared to the same period in 2021.
- Same-store average physical occupancy decreased by 0.3% to 95.5% compared to the same period in 2021.
- Same-store annualized rent per occupied square foot was approximately $18.47, an increase of approximately 15.3% when compared to the same period in 2021.
Six Months Ended June 30, 2022 Financial Highlights:
- Net income attributable to common stockholders was approximately $8.9 million. This represents an improvement of approximately $26.7 million when compared to the same period in 2021. Net income per Class A and Class T shares (diluted) was $0.10, an improvement of $0.34, when compared to the same period in 2021.
- Total self storage-related revenues were approximately $93.6 million, an increase of approximately $22.4 million when compared to the same period in 2021.
- Same-store revenues, expenses and NOI increased by 16.2%, 2.1% and 22.9%, respectively compared to the same period in 2021.
- Same-store average physical occupancy increased by 0.8% to 95.3%, compared to the same period in 2021.
- Same-store annualized rent per occupied square foot was approximately $18.12, which represented an increase of approximately 15.8% when compared to the same period in 2021.
External Growth
In May, the Company announced the acquisition of two self storage facilities, one in Sacramento, California (the “Sacramento Property”) and one in the Jacksonville, Florida market (the “Jacksonville Property”). The Sacramento Property’s 860 storage units encompass approximately 79,800 square feet and are 100% climate controlled, and the facility also offers over 60 spaces for boat and RV storage. The Jacksonville Property’s facility was constructed in 2017 and features a standalone three-story building. The Jacksonville Property’s 480 units are 100% climate controlled and span across approximately 55,400 square feet.
In June, the Company announced the acquisition of a self storage facility in Aurora, Colorado. The 55,000 square-foot facility was built in 2018 and features one single-story and one three-story building with 540 storage units.
Subsequent to quarter end, the Company completed an expansion project at its Mill Creek, Washington property located in the Seattle metropolitan area. The project added approximately 36,000 rentable square feet to the existing facility.
Strategic Storage Growth Trust II, Inc. Merger
On June 1, 2022, SmartStop and Strategic Storage Growth Trust II, Inc. (“SSGT II”) announced that the companies closed their previously announced merger, in which SSGT II merged into a newly-formed subsidiary of SmartStop (the “Merger”) in a stock-for-stock transaction that valued SSGT II’s real estate portfolio at approximately $260 million.
As a result of the Merger, SmartStop acquired 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 unconsolidated joint ventures 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 obtained SSGT II’s rights to acquire (a) one parcel of land being developed into a self storage facility in an unconsolidated joint venture with an unaffiliated third party, and (b) a property located in Southern California.
Managed REIT Platform Update
During the quarter, SmartStop closed the previously announced merger with SSGT II, and launched a new private REIT named Strategic Storage Growth Trust III, Inc. (“SSGT III”). As of quarter end, SmartStop serves as the sponsor of SSGT III and Strategic Storage Trust VI, Inc., a publicly-registered non-traded REIT (“SST VI” and together with SSGT III, our “Managed REITs”). We receive advisory fees and property management fees from our Managed REITs, which had a combined portfolio of 11 properties and approximately 7,600 units and 900,000 rentable square feet at quarter end. During the quarter, assets under management for SST VI increased by $66.6 million to approximately $206.0 million.
Capital Markets Activities
In April 2022, SmartStop was assigned an investment grade credit rating from Kroll Bond Rating Agency, Inc. (“KBRA”) of BBB- with a Stable Outlook. In connection with the rating announcement, SmartStop announced that its operating partnership issued $150 million of 4.530% senior notes due April 2032 (the “Notes”). The Notes issuance occurred in two funding tranches, with the first $75 million tranche having occurred on April 19, 2022 and the second $75 million having occurred on May 25, 2022. With proceeds from the Notes, the Company defeased and paid off the SST IV TCF loan and the Midland North Carolina CMBS Loan. SmartStop used the remaining proceeds from the Notes to pay off SSGT II’s existing debt at the close of the Merger.
Declared Distributions
On June 23, 2022, SmartStop’s board of directors declared a distribution rate for the month of July 2022 of approximately $0.00164 per day per share on the outstanding shares of common stock payable to Class A and Class T stockholders of record of such shares as shown on SmartStop’s books at the close of business on each day of the period commencing on July 1, 2022 and ending July 31, 2022. On July 21, 2022, SmartStop’s board of directors declared a distribution rate for the month of August 2022 of approximately $0.00164 per day per share on the outstanding shares of common stock payable to Class A and Class T stockholders of record of such shares as shown on our books at the close of business on each day of the period commencing on August 1, 2022 and ending August 31, 2022. Such distributions payable to each stockholder of record during a month will be paid the following month.
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SMARTSTOP SELF STORAGE REIT, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS |
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June 30, |
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December 31, |
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ASSETS |
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Real estate facilities: |
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Land |
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$ |
422,592,268 |
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|
$ |
397,508,081 |
|
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Buildings |
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|
1,379,838,788 |
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|
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1,117,204,944 |
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Site improvements |
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|
88,382,218 |
|
|
|
78,910,603 |
|
|
|
|
|
1,890,813,274 |
|
|
|
1,593,623,628 |
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Accumulated depreciation |
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|
(178,029,203 |
) |
|
|
(155,926,875 |
) |
|
|
|
|
1,712,784,071 |
|
|
|
1,437,696,753 |
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Construction in process |
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|
4,210,552 |
|
|
|
1,799,004 |
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Real estate facilities, net |
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|
1,716,994,623 |
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|
1,439,495,757 |
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Cash and cash equivalents |
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45,894,264 |
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37,254,226 |
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Restricted cash |
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7,444,707 |
|
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|
7,432,135 |
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Investments in unconsolidated real estate ventures |
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|
28,868,557 |
|
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|
18,943,284 |
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Investments in and advances to Managed REITs |
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11,271,875 |
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12,404,380 |
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Other assets, net |
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20,944,488 |
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15,423,508 |
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Intangible assets, net of accumulated amortization |
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22,373,984 |
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|
14,337,820 |
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Trademarks, net of accumulated amortization |
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15,982,353 |
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|
16,052,941 |
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Goodwill |
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53,643,331 |
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|
53,643,331 |
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Debt issuance costs, net of accumulated amortization |
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2,871,677 |
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3,305,394 |
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Total assets |
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$ |
1,926,289,859 |
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$ |
1,618,292,776 |
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LIABILITIES AND EQUITY |
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Debt, net |
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$ |
1,022,748,112 |
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$ |
873,866,855 |
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Accounts payable and accrued liabilities |
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21,977,212 |
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22,693,941 |
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Due to affiliates |
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|
410,334 |
|
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|
584,291 |
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Distributions payable |
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|
8,940,680 |
|
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|
8,360,420 |
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Contingent earnout |
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15,800,000 |
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30,000,000 |
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Deferred tax liabilities |
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|
6,809,790 |
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|
7,719,098 |
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Total liabilities |
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1,076,686,128 |
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943,224,605 |
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Commitments and contingencies |
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Redeemable common stock |
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76,578,073 |
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71,334,675 |
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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, 2022 and December 31, 2021, respectively, with aggregate liquidation preferences of $203,116,438 and $203,150,685 at June 30, 2022 and December 31, 2021, respectively |
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196,356,107 |
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|
196,356,107 |
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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; 88,857,061 and 77,057,743 shares issued and outstanding at June 30, 2022 and December 31, 2021, respectively |
|
|
88,857 |
|
|
|
77,058 |
|
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Class T common stock, $0.001 par value; 350,000,000 shares authorized; 8,085,550 and 8,056,198 shares issued and outstanding at June 30, 2022 and December 31, 2021, respectively |
|
|
8,085 |
|
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|
8,056 |
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Additional paid-in capital |
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893,713,908 |
|
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|
724,739,872 |
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Distributions |
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(236,750,901 |
) |
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|
(210,964,464 |
) |
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Accumulated deficit |
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|
(161,924,488 |
) |
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(170,846,475 |
) |
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Accumulated other comprehensive income (loss) |
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1,261,504 |
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(279,975 |
) |
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Total SmartStop Self Storage REIT, Inc. equity |
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496,396,965 |
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|
342,734,072 |
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Noncontrolling interests in our Operating Partnership |
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80,248,548 |
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64,632,417 |
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Other noncontrolling interests |
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|
24,038 |
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|
10,900 |
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Total noncontrolling interests |
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80,272,586 |
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|
64,643,317 |
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Total equity |
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576,669,551 |
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|
407,377,389 |
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Total liabilities and equity |
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$ |
1,926,289,859 |
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$ |
1,618,292,776 |
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SMARTSTOP SELF STORAGE REIT, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS |
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Three Months Ended |
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Six Months Ended |
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2022 |
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2021 |
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2022 |
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2021 |
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Revenues: |
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Self storage rental revenue |
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$ |
46,471,360 |
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$ |
38,104,699 |
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$ |
89,528,232 |
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$ |
67,608,141 |
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Ancillary operating revenue |
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|
2,098,835 |
|
|
|
2,027,041 |
|
|
|
4,073,155 |
|
|
|
3,584,471 |
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Managed REIT Platform revenue |
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|
2,013,134 |
|
|
|
1,058,291 |
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|
|
3,822,230 |
|
|
|
3,346,031 |
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Reimbursable costs from Managed REITs |
|
|
1,204,919 |
|
|
|
1,061,619 |
|
|
|
2,348,492 |
|
|
|
2,277,662 |
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Total revenues |
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|
51,788,248 |
|
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|
42,251,650 |
|
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|
99,772,109 |
|
|
|
76,816,305 |
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Operating expenses: |
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Property operating expenses |
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13,637,231 |
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|
12,479,969 |
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|
26,742,556 |
|
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|
22,823,250 |
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Managed REIT Platform expenses |
|
|
617,846 |
|
|
|
316,142 |
|
|
|
1,007,111 |
|
|
|
636,032 |
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Reimbursable costs from Managed REITs |
|
|
1,204,919 |
|
|
|
1,061,619 |
|
|
|
2,348,492 |
|
|
|
2,277,662 |
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General and administrative |
|
|
7,946,583 |
|
|
|
6,811,313 |
|
|
|
13,784,230 |
|
|
|
11,564,302 |
|
|
Depreciation |
|
|
11,826,106 |
|
|
|
10,742,801 |
|
|
|
22,934,092 |
|
|
|
19,286,728 |
|
|
Intangible amortization expense |
|
|
4,471,973 |
|
|
|
3,653,681 |
|
|
|
8,372,857 |
|
|
|
4,913,228 |
|
|
Acquisition expenses |
|
|
285,097 |
|
|
|
30,448 |
|
|
|
702,871 |
|
|
|
336,098 |
|
|
Contingent earnout adjustment |
|
|
800,000 |
|
|
|
400,000 |
|
|
|
1,313,821 |
|
|
|
2,519,744 |
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|
Write-off of equity interest and preexisting relationships upon acquisition of control |
|
|
2,049,682 |
|
|
|
— |
|
|
|
2,049,682 |
|
|
|
8,389,573 |
|
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Total operating expenses |
|
|
42,839,437 |
|
|
|
35,495,973 |
|
|
|
79,255,712 |
|
|
|
72,746,617 |
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Gain on equity interests upon acquisition |
|
|
16,101,237 |
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|
|
— |
|
|
|
16,101,237 |
|
|
|
— |
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|
Gain on sale of real estate |
|
|
— |
|
|
|
178,631 |
|
|
|
— |
|
|
|
178,631 |
|
|
Income from operations |
|
|
25,050,048 |
|
|
|
6,934,308 |
|
|
|
36,617,634 |
|
|
|
4,248,319 |
|
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
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||||
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Interest expense |
|
|
(8,852,586 |
) |
|
|
(8,416,349 |
) |
|
|
(16,428,370 |
) |
|
|
(17,032,420 |
) |
|
Net loss on extinguishment of debt |
|
|
(2,393,475 |
) |
|
|
— |
|
|
|
(2,393,475 |
) |
|
|
(2,444,788 |
) |
|
Other, net |
|
|
209,135 |
|
|
|
171,203 |
|
|
|
(513,208 |
) |
|
|
1,614,585 |
|
|
Net income (loss) |
|
|
14,013,122 |
|
|
|
(1,310,838 |
) |
|
|
17,282,581 |
|
|
|
(13,614,304 |
) |
|
Net (income) loss attributable to noncontrolling interests |
|
|
(1,758,141 |
) |
|
|
546,092 |
|
|
|
(2,161,963 |
) |
|
|
2,023,086 |
|
|
Less: Distributions to preferred stockholders |
|
|
(3,116,439 |
) |
|
|
(3,116,438 |
) |
|
|
(6,198,631 |
) |
|
|
(6,198,630 |
) |
|
Net income (loss) attributable to SmartStop Self Storage REIT, Inc. common stockholders |
|
$ |
9,138,542 |
|
|
$ |
(3,881,184 |
) |
|
$ |
8,921,987 |
|
|
$ |
(17,789,848 |
) |
|
Net income (loss) per Class A & Class T share – basic |
|
$ |
0.10 |
|
|
$ |
(0.05 |
) |
|
$ |
0.10 |
|
|
$ |
(0.24 |
) |
|
Net income (loss) per Class A & Class T share – diluted |
|
$ |
0.10 |
|
|
$ |
(0.05 |
) |
|
$ |
0.10 |
|
|
$ |
(0.24 |
) |
|
Weighted average Class A shares outstanding – basic |
|
|
80,896,716 |
|
|
|
75,994,754 |
|
|
|
78,932,668 |
|
|
|
66,252,067 |
|
|
Weighted average Class A shares outstanding – diluted |
|
|
81,422,623 |
|
|
|
75,994,754 |
|
|
|
79,411,284 |
|
|
|
66,252,067 |
|
|
Weighted average Class T shares outstanding – basic |
|
|
8,085,550 |
|
|
|
7,960,999 |
|
|
|
8,078,290 |
|
|
|
7,944,502 |
|
|
Weighted average Class T shares outstanding – diluted |
|
|
8,085,550 |
|
|
|
7,960,999 |
|
|
|
8,078,290 |
|
|
|
7,944,502 |
|
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SMARTSTOP SELF STORAGE REIT, INC. AND SUBSIDIARIES NON-GAAP MEASURE – COMPUTATION OF FUNDS FROM OPERATIONS, AS ADJUSTED |
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Three Months |
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Three Months |
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Six Months |
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Six Months |
|
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Net income (loss) (attributable to common stockholders) |
|
$ |
9,138,542 |
|
|
$ |
(3,881,184 |
) |
|
$ |
8,921,987 |
|
|
$ |
(17,789,848 |
) |
|
Add: |
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|
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|
|
|
|
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|
|
|
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Depreciation of real estate |
|
|
11,619,040 |
|
|
|
10,521,283 |
|
|
|
22,481,157 |
|
|
|
18,898,768 |
|
|
Amortization of real estate related intangible assets |
|
|
4,286,753 |
|
|
|
3,441,144 |
|
|
|
7,946,836 |
|
|
|
4,003,229 |
|
|
Depreciation and amortization of real estate and intangible assets from unconsolidated entities |
|
|
358,716 |
|
|
|
213,959 |
|
|
|
658,729 |
|
|
|
230,996 |
|
|
Deduct: |
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|
|
|
|
|
|
|
|
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|
||||
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Gain on deconsolidation |
|
|
— |
|
|
|
(169,533 |
) |
|
|
— |
|
|
|
(169,533 |
) |
|
Gain on sale of real estate |
|
|
— |
|
|
|
(178,631 |
) |
|
|
— |
|
|
|
(178,631 |
) |
|
Gain on equity interests upon acquisition (7) |
|
|
(16,101,237 |
) |
|
|
— |
|
|
|
(16,101,237 |
) |
|
|
— |
|
|
Adjustment for noncontrolling interests (6) |
|
|
58,107 |
|
|
|
(1,500,869 |
) |
|
|
(1,540,958 |
) |
|
|
(2,616,924 |
) |
|
FFO (attributable to common stockholders) |
|
|
9,359,921 |
|
|
|
8,446,169 |
|
|
|
22,366,514 |
|
|
|
2,378,057 |
|
|
Other Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Intangible amortization expense – contracts (1) |
|
|
185,220 |
|
|
|
212,537 |
|
|
|
426,021 |
|
|
|
909,999 |
|
|
Acquisition expenses (2) |
|
|
285,097 |
|
|
|
30,448 |
|
|
|
702,871 |
|
|
|
336,098 |
|
|
Acquisition expenses and foreign currency (gains) losses, net from unconsolidated entities |
|
|
31,460 |
|
|
|
107,388 |
|
|
|
51,956 |
|
|
|
107,388 |
|
|
Contingent earnout adjustment (3) |
|
|
800,000 |
|
|
|
400,000 |
|
|
|
1,313,821 |
|
|
|
2,519,744 |
|
|
Write-off of equity interest and preexisting relationships upon acquisition of control |
|
|
2,049,682 |
|
|
|
— |
|
|
|
2,049,682 |
|
|
|
8,389,573 |
|
|
Accretion of fair market value of secured debt |
|
|
(7,556 |
) |
|
|
(31,250 |
) |
|
|
(42,198 |
) |
|
|
(63,116 |
) |
|
Net loss on extinguishment of debt (4) |
|
|
2,393,475 |
|
|
|
— |
|
|
|
2,393,475 |
|
|
|
2,444,788 |
|
|
Foreign currency and interest rate derivative losses, net (5) |
|
|
251,804 |
|
|
|
(643,547 |
) |
|
|
76,272 |
|
|
|
(425,549 |
) |
|
Adjustment of deferred tax liabilities (1) |
|
|
(1,040,711 |
) |
|
|
(56,880 |
) |
|
|
(799,123 |
) |
|
|
(1,929,746 |
) |
|
Offering related expenses (8) |
|
|
1,387,760 |
|
|
|
— |
|
|
|
1,387,760 |
|
|
|
— |
|
|
Adjustment for noncontrolling interests (6) |
|
|
(744,709 |
) |
|
|
(1,784 |
) |
|
|
(876,681 |
) |
|
|
(1,435,079 |
) |
|
FFO, as adjusted (attributable to common stockholders) |
|
$ |
14,951,443 |
|
|
$ |
8,463,081 |
|
|
$ |
29,050,370 |
|
|
$ |
13,232,157 |
|
|
(1) |
These items represent the amortization, accretion, or adjustment of intangible assets or deferred tax liabilities. |
|
|
(2) |
This represents acquisition expenses associated with investments in real estate that were incurred prior to the acquisitions becoming probable and therefore not capitalized in accordance with SmartStop’s capitalization policy. |
|
|
(3) |
The contingent earnout adjustment represents the adjustment to the fair value during the period of the Class A-2 Units issued in connection with the self administration transaction. |
|
|
(4) |
The net loss associated with the extinguishment of debt includes prepayment penalties, the write-off of unamortized deferred financing fees, and other fees incurred. |
|
|
(5) |
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. |
|
|
(6) |
This represents the portion of the above stated adjustments in the calculations of FFO and FFO, as adjusted, that are attributable to SmartStop’s non-controlling interests. |
|
|
(7) |
This gain relates to the mark up in fair value of SmartStop’s preexisting equity interests in SSGT II as a result of SmartStop’s acquisition of control in the SSGT II Merger. |
|
|
(8) |
Such costs relate to SmartStop’s filing of an S-11 registration statement and SmartStop’s pursuit of a potential offering of SmartStop’s common stock. As this item is non-recurring and not a primary driver in SmartStop’s decision-making process, FFO is adjusted for its effect to arrive at FFO, as adjusted, as a means of determining a comparable sustainable operating performance metric. |
SMARTSTOP SELF STORAGE REIT, INC. AND SUBSIDIARIES
NON-GAAP MEASURE – COMPUTATION OF FUNDS FROM OPERATIONS, AS ADJUSTED ATTRIBUTABLE TO SHARES AND OP UNITS OUTSTANDING – DILUTED
The following is a reconciliation of FFO and FFO, as adjusted (attributable to common stockholders), to FFO and FFO, as adjusted (attributable to common stockholders and OP Unit holders), for each of the periods presented below:
|
|
|
Three Months |
|
|
Three Months |
|
|
Six Months |
|
|
Six Months |
|
||||
|
FFO (attributable to common stockholders and OP unit holders) Calculation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FFO (attributable to common stockholders) |
|
$ |
9,359,921 |
|
|
$ |
8,446,169 |
|
|
$ |
22,366,514 |
|
|
$ |
2,378,057 |
|
|
Net income (loss) attributable to the noncontrolling interests |
|
|
1,758,141 |
|
|
|
(546,092 |
) |
|
|
2,161,963 |
|
|
|
(2,023,086 |
) |
|
Adjustment for noncontrolling interests(1) |
|
|
(58,107 |
) |
|
|
1,500,869 |
|
|
|
1,540,958 |
|
|
|
2,616,924 |
|
|
FFO (attributable to common stockholders and OP unit holders) |
|
$ |
11,059,955 |
|
|
$ |
9,400,946 |
|
|
$ |
26,069,435 |
|
|
$ |
2,971,895 |
|
|
FFO, as adjusted (attributable to common stockholders and OP unit holders) Calculation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FFO, as adjusted (attributable to common stockholders) |
|
$ |
14,951,443 |
|
|
$ |
8,463,081 |
|
|
$ |
29,050,370 |
|
|
$ |
13,232,157 |
|
|
Net income (loss) attributable to the noncontrolling interests |
|
|
1,758,141 |
|
|
|
(546,092 |
) |
|
|
2,161,963 |
|
|
|
(2,023,086 |
) |
|
Adjustment for noncontrolling interests(1) |
|
|
686,602 |
|
|
|
1,502,653 |
|
|
|
2,417,639 |
|
|
|
4,052,003 |
|
|
FFO, adjusted (attributable to common stockholders and OP unit holders) |
|
$ |
17,396,186 |
|
|
$ |
9,419,642 |
|
|
$ |
33,629,972 |
|
|
$ |
15,261,074 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average Class A & T shares outstanding |
|
|
88,982,266 |
|
|
|
83,955,753 |
|
|
|
87,010,958 |
|
|
|
74,196,569 |
|
|
Weighted average OP units outstanding |
|
|
11,496,892 |
|
|
|
10,270,455 |
|
|
|
10,959,537 |
|
|
|
9,762,238 |
|
|
Weighted average other dilutive securities |
|
|
525,907 |
|
|
|
239,279 |
|
|
|
478,616 |
|
|
|
200,546 |
|
|
Weighted average shares & OP units outstanding – diluted(2) |
|
|
101,005,065 |
|
|
|
94,465,487 |
|
|
|
98,449,111 |
|
|
|
84,159,353 |
|
|
FFO, as adjusted per share & OP unit outstanding – diluted |
|
$ |
0.17 |
|
|
$ |
0.10 |
|
|
$ |
0.34 |
|
|
$ |
0.18 |
|
|
(1) |
This represents the portion of the above stated adjustments in the calculations of FFO and FFO, as adjusted, that are attributable to our non-controlling interests. |
|
|
(2) |
Includes all Class A Shares, Class T Shares and OP Units, as well as the dilutive effect on FFO and FFO, as adjusted of both unvested restricted stock and long term incentive plan units (both time-based units and performance based-units), and is calculated using the two-class, treasury stock or if-converted method, as applicable. The outstanding convertible preferred stock was excluded as the conversion of such shares was antidilutive to FFO and FFO, as adjusted. This excludes Class A-2 OP Units, the conversion of which is contingent on growth in assets under management or other contingent events before being converted to a class of OP Units equivalent to a common share. |
SMARTSTOP SELF STORAGE REIT, INC. AND SUBSIDIARIES
COMPUTATION OF SAME-STORE OPERATING RESULTS
(Unaudited)
Same-Store Facility Results – Three Months Ended June 30, 2022 and 2021
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, 2021, excluding three lease-up properties SmartStop owned as of January 1, 2021) for the three months ended June 30, 2022 and 2021. 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 |
|
||||||||||||||||||||||||||
|
|
|
2022 |
|
|
2021 |
|
|
% |
|
|
2022 |
|
|
2021(6) |
|
|
% |
|
2022 |
|
|
2021 |
|
|
% |
|
||||||||
|
Revenue (1) |
|
$ |
34,694,481 |
|
|
$ |
30,396,194 |
|
|
|
14.1 |
% |
|
$ |
12,039,007 |
|
|
$ |
8,022,875 |
|
|
N/M |
|
$ |
46,733,488 |
|
|
$ |
38,419,069 |
|
|
|
21.6 |
% |
|
Property operating expenses (2) |
|
|
9,543,263 |
|
|
|
9,488,105 |
|
|
|
0.6 |
% |
|
|
4,093,968 |
|
|
|
2,991,864 |
|
|
N/M |
|
|
13,637,231 |
|
|
|
12,479,969 |
|
|
|
9.3 |
% |
|
Net operating income |
|
$ |
25,151,218 |
|
|
$ |
20,908,089 |
|
|
|
20.3 |
% |
|
$ |
7,945,039 |
|
|
$ |
5,031,011 |
|
|
N/M |
|
$ |
33,096,257 |
|
|
$ |
25,939,100 |
|
|
|
27.6 |
% |
|
Number of facilities |
|
|
109 |
|
|
|
109 |
|
|
|
|
|
|
44 |
|
|
|
30 |
|
|
|
|
|
153 |
|
|
|
139 |
|
|
|
|
||
|
Rentable square feet (3) |
|
|
8,036,285 |
|
|
|
8,034,200 |
|
|
|
|
|
|
3,758,445 |
|
|
|
2,543,800 |
|
|
|
|
|
11,794,730 |
|
|
|
10,578,000 |
|
|
|
|
||
|
Average physical occupancy (4) |
|
|
95.5 |
% |
|
|
95.8 |
% |
|
|
|
|
|
92.5 |
% |
|
|
88.9 |
% |
|
|
|
|
94.5 |
% |
|
|
94.6 |
% |
|
|
|
||
|
Annualized rent per occupied square foot (5) |
|
$ |
18.47 |
|
|
$ |
16.02 |
|
|
|
|
|
N/M |
|
|
N/M |
|
|
|
|
$ |
18.09 |
|
|
$ |
15.76 |
|
|
|
|
||||
| N/M Not meaningful | ||
|
(1) |
Revenue includes rental revenue, certain ancillary revenue, administrative and late fees, and excludes Tenant Protection Program revenue. |
|
|
(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 1,016,000 square feet and 937,000 square feet as of June 30, 2022 and 2021, respectively. On a same-store basis, for the same periods, parking represented approximately 680,000 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, which was consolidated by SmartStop from March 10, 2021 until May 1, 2021. |
|
Contacts
David Corak
VP of Corporate Finance
SmartStop Self Storage REIT, Inc.
949-542-3331
investors.smartstopselfstorage.com
ir@smartstop.com