SmartStop Self Storage REIT Listing on NYSE
- jackkearney54
- Apr 18
- 5 min read
Highlights
On March 24, 2025, SmartStop Self Storage REIT, Inc. (“SmartStop”), formerly Strategic Storage Trust II, Inc., announced the launch of its public offering of 27 million common shares on the New York Stock Exchange (“NYSE”).
On April 1, 2025, SmartStop announced the pricing of the shares at $30.00 per share. The most recent net asset value for SmartStop’s common stock was calculated as of June 30, 2024 at $58.00 per share.
SmartStop is a self-managed REIT that owns and operates self-storage facilities in the United States and Canada. SmartStop was formed in 2013 and originally raised capital through a public offering between January 2014 and January 2017, raising gross proceeds of approximately $554.0 million, excluding its DRIP.
On March 24, 2025, SmartStop, an internally managed, non-traded real estate investment trust (“REIT”) that owns and operates self-storage facilities, announced the launch of its first listed public offering of 27 million common shares on the NYSE under the ticker symbol “SMA.” The shares were expected to be listed at a price range of between $28.00 and $35.00 per share and, on April 1, 2025, SmartStop announced the pricing at $30.00 per share. Additionally, SmartStop granted the underwriters of the offering a 30-day option of purchasing up to 4.1 million additional shares. The shares began trading on the NYSE on April 2, 2025 and the closing of the offering occurred on April 3, 2025, resulting in net proceeds of approximately $874.4 million. SmartStop’s stock opened at $32.40 each, above the initial public offering price.
SmartStop was originally formed in 2013 and conducted a public offering of Class A and Class T common stock between January 2014 and January 2017, raising gross proceeds of approximately $554.0 million, excluding its DRIP. On June 28, 2019, SmartStop internalized management by acquiring the self-storage advisory, asset management, property management and tenant insurance businesses of its then sponsor, SmartStop Asset Management, LLC, in exchange for total consideration of approximately $150.0 million in cash, assumption of existing debt, and newly issued limited partnership units of SmartStop’s operating partnership. As a result of the internalization, SmartStop became a self-managed REIT and currently serves as the sponsor for three non-traded self-storage REITs: Strategic Storage Trust VI, Inc., Strategic Storage Growth Trust III, Inc., and Strategic Storage Trust X. Additionally, SmartStop has completed the following transactions with certain of its affiliated non-traded REITs:
On January 24, 2019, SmartStop acquired Strategic Storage Growth Trust, Inc. (“SSGT”) for approximately $350 million in an all-cash transaction. SSGT raised $287 million through private and public offerings and acquired a portfolio of 28 self-storage facilities for $240 million prior to the transaction with SmartStop. SSGT stockholders received $12.00 per share in cash, net of fees, representing a 3.6% premium over SSGT’s final estimated NAV per share of $11.58 as of December 31, 2017. Given that this was an all-cash transaction, SmartStop’s listing does not impact the returns SSGT’s investors received.
On March 17, 2021, SmartStop acquired Strategic Storage Trust IV, Inc. (“SST IV”) in an all-stock transaction valued at $350 million. SST IV raised $269 million through private and public offerings and acquired a portfolio of 24 self-storage facilities and interests in six joint ventures for $306 million prior to the SmartStop transaction. SST IV stockholders received 2.1875 shares of SmartStop common stock for each share of SST IV share owned, which was based on SmartStop’s estimated NAV per share of $10.40 as of December 31, 2019 and represented a $0.10 per share premium (or 0.4%) to SST IV’s final estimated NAV per share of $22.65 as of March 31, 2020, but a $2.25 discount (or 9.0%) to the original purchase price of $25.00 per Class A common stock.
On June 1, 2022, SmartStop acquired Strategic Storage Growth Trust II, Inc. (“SSGT II”) in an all-stock transaction valued at $250 million. SSGT II raised $111 million through a private offering and acquired a portfolio of 10 self-storage facilities and interests in two joint ventures for $146 million prior to the SmartStop transaction. SSGT II stockholders received 0.9118 shares of SmartStop common stock for each SSGT II share owned, equal to $13.75 per share based on SmartStop’s estimated NAV per share of $15.08 as June 30, 2021, which represented an approximate 37% premium over SSGT II’s most recent offering price.
On March 20, 2025, SmartStop effected a 1-for-4 reverse split of its common shares and, as a result, every four shares of SmartStop common stock was automatically combined into one share of SmartStop common stock. SmartStop’s most recent NAV per share of $14.50 was calculated as of June 30, 2024; after giving effect to the reverse stock split, the NAV as of that date would have been estimated to be $58.00 per share.
The following table presents a summary of estimated hypothetical returns for Class A investors in SmartStop in connection with the listed public offering, based on the following scenarios, assuming an exit on the listing date of April 2, 2025, at: (i) the opening price of $32.40 per share; (ii) 20% below the opening price; and (iii) 20% above the opening price:
The following table presents a summary of estimated hypothetical returns with respect to the listing for Class T investors from SmartStop’s primary offering:
The following table presents a summary of estimated hypothetical returns with respect to the listing for Class A investors from SST IV’s primary offering:
The following table presents a summary of estimated hypothetical returns with respect to the listing for Class T investors from SST IV’s primary offering:
We were not able to estimate returns for investors in SSGT II because it was a private company and the necessary data is not available.
The estimated returns presented above reflect the impact of any up-front sales commissions and dealer manager fees, as well as stockholder servicing fees. While these estimated returns present a range of potential returns based on the initial price and certain assumed increases or decreases, actual returns will be based on the price at which the common stock trades after listing, which may be outside of the range presented. In addition, existing Class A and T shareholders are subject to a restricted period or “lock-up” of 180 days after the IPO. During this lock-up period, these shareholders will be unable to redeem or sell their shares.
Sources
SEC Company Filings for:
BusinessWire, SmartStop Self Storage REIT Announces Launch of Underwritten Public Offering
BusinessWire, SmartStop Self Storage REIT Announces Pricing of Underwritten Public Offering
BusinessWire, SmartStop Self Storage REIT Announces Closing of Underwritten Public Offering and Full-Exercise of Over-Allotment Option
Disclaimer: The information contained in this research note has been assembled using publicly available information. While SK Research and Due Diligence, LLC (“SKRADD”) believes it to be reliable, there is no guarantee that all of the information contained in this research note is or will be accurate. This research note does not constitute investment advice and is intended for informational purposes only. This research note does not constitute an offer to sell or the solicitation of an offer to purchase, nor should it be considered a recommendation of any security referenced herein. This publication is copyrighted, and no person is authorized to make use of the information presented herein without the express written permission of SKRADD. SKRADD is under common ownership and control with Snyder Kearney, LLC, a law firm that conducts due diligence reviews of alternative investment programs, including non-traded real estate investment trusts.
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