LADERA RANCH, Calif. -- (Business Wire)

SmartStop Self Storage REIT, Inc. (“SmartStop” or “the Company”), a self-managed and fully-integrated self storage company, announced its overall results for the three and nine months ended September 30, 2026.

Three Months Ended September 30, 2026 Financial Highlights:

• Net income attributable to common stockholders was approximately $9.0 million. This represents an increase of approximately $3.8 million when compared to the same period in 2025. Net income per share of Common Stock, (basic and diluted) was $0.16. This represents an increase of approximately $0.07 per share when compared to the same period in 2025.
• Total self storage-related revenues were approximately $68.2 million, an increase of approximately $3.6 million when compared to the same period in 2025.
• FFO, as adjusted (attributable to common stockholders and Operating Partnership (“OP”) unit holders), was approximately $30.3 million, an increase of approximately $2.9 million when compared to the same period in 2025.
• FFO, as adjusted per share and OP unit outstanding – diluted was $0.51, an increase of approximately $0.04 per share when compared to the same period in 2025.
• Same-store revenues increased by 2.0%, same-store property operating expenses decreased by 3.8%, and same-store net operating income (“NOI”) increased by 4.9% compared to the same period in 2025.
• On a constant currency basis for SmartStop’s Canadian properties included in its wholly-owned same-store pool, its aggregate same-store revenues for all properties included in the pool increased by 2.1%, same-store expenses decreased by 3.6%, and same-store NOI increased by 5.1% compared to the same period in 2025.
• Same-store average physical occupancy was 92.2%, a decrease of approximately 0.4% compared to the same period in 2025.
• Same-store annualized rent per occupied square foot was approximately $20.99, an increase of approximately 2.6% when compared to the same period in 2025.

Nine Months Ended September 30, 2026 Financial Highlights:

• Net income attributable to common stockholders was approximately $29.8 million. This represents an increase of approximately $41.4 million when compared to the same period in 2025. Net income per share of Common Stock, (basic and diluted) was $0.53. This represents an increase of approximately $0.80 per share when compared to the same period in 2025.
• Total self storage-related revenues were approximately $198.8 million, an increase of approximately $14.2 million when compared to the same period in 2025.
• FFO, as adjusted (attributable to common stockholders and OP unit holders), was approximately $88.4 million, an increase of approximately $25.4 million when compared to the same period in 2025.
• FFO, as adjusted per share and OP unit outstanding – diluted was $1.49, an increase of approximately $0.18 per share when compared to the same period in 2025.
• Same-store revenues increased by 1.6%, same-store property operating expenses decreased by 2.2%, and same-store NOI increased by 3.6% compared to the same period in 2025.
• On a constant currency basis for SmartStop’s Canadian properties included in its wholly-owned same-store pool, its aggregate same-store revenues for all properties included in the pool increased by 1.5%, same-store expenses decreased by 2.3%, and same-store NOI increased by 3.5% compared to the same period in 2025.
• Same-store average physical occupancy was 92.3%, a decrease of approximately 0.3% compared to the same period in 2025.
• Same-store annualized rent per occupied square foot was approximately $20.48, an increase of approximately 1.9% when compared to the same period in 2025.

“SmartStop delivered another strong quarter, with sector-leading same-store NOI growth of 4.9% and FFO as adjusted per share growth of over 9%, even with a currency headwind,” said H. Michael Schwartz, Founder, Chairman and Chief Executive Officer of SmartStop. “2.0% same-store revenue growth and a 3.8% reduction in same-store operating expenses expanded our operating margin by 190 basis points, our third consecutive quarter of margin improvement. These results allowed us to raise our full-year same-store NOI guidance for the fourth time this year.”

“We also put the Deca Initiative to work,” continued Mr. Schwartz. “We are expanding our Canadian platform by over 30% through our pending investment in Strategic Storage Canada, launched a programmatic investment partnership, and issued a $200 million CAD Maple Bond at attractive long term pricing, all while reducing our leverage. We entered the fourth quarter with momentum and remain focused on compounding long-term value per share for our shareholders.”

Acquisitions

SmartStop is under contract to acquire two stabilized properties in Las Vegas, Nevada, and Asheville, North Carolina, for approximately $37 million, comprising more than 186,000 net rentable square feet and approximately 1,600 units. These acquisitions are expected to close in the fourth quarter of 2026.

Strategic Asset Management Program

During the quarter, SmartStop initiated a strategic asset management program to pursue potential opportunistic dispositions of selected wholly-owned properties located in non-core markets, initially targeting $75 million to $125 million of property sales beginning in early 2027. These non-core markets are generally markets in which SmartStop owns only a single or handful of properties and where management believes the Company is unlikely to achieve the scale necessary to realize meaningful operating efficiencies or clustering benefits. SmartStop intends to use net proceeds from these dispositions to recycle capital into its core markets, where greater density allows SmartStop to leverage shared on-site staffing, marketing spend, and revenue management across multiple properties.

Strategic Storage Canada Joint Venture

On September 29, 2026, SmartStop agreed to an investment of approximately $74.3 million CAD (approximately $52.3 million USD as of September 30, 2026) into a Canadian joint venture fund (“Strategic Storage Canada”), subject to various closing and other conditions. The investment will provide SmartStop with a 50% general partner interest in the fund and an immediate expected approximate 34% limited partnership interest in the fund that SmartStop expects to own at close, or shortly thereafter, 14 self storage properties in Canada, comprising approximately 961,000 net rentable square feet and 9,600 units. The portfolio is in early lease-up and is approximately 50% physically occupied. The investment is structured as approximately (i) $49.3 million CAD of limited partnership interests and (ii) $25.0 million CAD of convertible preferred partnership interests bearing a 6.5% rate to be paid quarterly in-kind, convertible (at the election of the other shareholders of the general partner) to limited partnership interests in stages over the 24 months following the closing at the net asset value of the fund established at close, which, if converted, would provide an ultimate expected limited partner ownership of approximately 44% at the end of year two. SmartStop also committed to make additional investments of up to $228.0 million CAD (approximately $160.5 million USD as of September 30, 2026) during the three years following the closing, primarily to fund additional self storage properties that may be acquired by the fund, all subject to the approval of the general partner of the fund. Within that amount, it is contemplated that approximately $5.0 million CAD may be requested for working capital and other permitted general purposes of the fund, and up to approximately $10.0 million CAD may be requested in connection with refinancings of fund indebtedness and other long-term items. Any such additional investment, including those working capital and refinancing amounts, requires general partner approval, which requires SmartStop’s separate specific approval in SmartStop’s capacity as a shareholder of the general partner, and the same approval of one of the other shareholders. However, if the fund's pending sale of one of its existing properties is not completed within 30 days following the closing, SmartStop will be required, without any further approval on SmartStop’s part, to contribute the amount of working capital that the fund's general partner, acting reasonably, determines the fund requires as a result of continuing to hold that property, which contribution would count against the $228.0 million CAD additional investment amount.

Additionally, SmartStop expects to provide guarantees directly to certain lenders of the fund’s subsidiaries, proportionate to its common ownership interest in the fund.

In connection with the investment, SmartStop will provide property management services on properties in the fund under five-year contracts, and will receive a right of first offer on all fund properties. Separately, but related to this relationship, we have otherwise been awarded third-party management contracts on three additional Canadian properties outside the fund, along with exclusivity on future third-party management for future development projects from certain affiliates.

The investment is expected to position SmartStop as Canada’s third-largest self-storage operator, with 70 operating properties, expanding SmartStop’s presence in the existing markets of Vancouver, British Columbia, Calgary, Alberta, and the Greater Toronto Area, and establishing a new presence in the markets of Halifax, Nova Scotia and Quebec City, Quebec. Strategic Storage Canada will also serve as a Canadian-domiciled vehicle, which may be utilized for future contributions from Canadian self-storage owners in a tax-efficient manner.

As of September 30, 2026, SmartStop began property managing all 17 of the properties related to the transaction. All 17 properties are currently included in the Company’s third party management platform. Upon closing the investment, 14 of those assets (those expected to be owned by Strategic Storage Canada), will be taken out of the Third-Party Management property count, and instead be included in the Joint Venture Owned property count.

The investment and related transactions pertaining to this closing are subject to approval under the Canadian Competition Act and certain other closing conditions customary in transactions of this nature. Due to these closing conditions, SmartStop cannot make any assurances that the investment and all of the related transactions pertaining to this closing will occur. SmartStop anticipates completing the transaction in the fourth quarter of 2026.

As of September 30, 2026, SmartStop had not made any investment or deposit, nor had it provided any guarantees, related to this potential joint venture investment.

Bridge Lending and Preferred Investment Platform

During the quarter, the Company closed on two preferred investments with our joint venture partner AXCS Capital totaling $18.2 million. Additionally, the Company closed one bridge loan totaling $16.7 million. The weighted average yield between the investments is approximately 17.6%, before accounting for AXCS Capital’s management fee and promoted interest.

In October, SmartStop entered into a $10.0 million CAD (approximately $7.0 million USD as of September 30, 2026) delayed draw loan facility (the “Canadian Portfolio Delayed Draw Loan”) to provide capital for two self storage projects in Ontario, Canada. The loan bears interest at a fixed rate of 8.5% and matures on October 9, 2029. On October 9, 2026, SmartStop advanced $0.8 million CAD under the Canadian Portfolio Delayed Draw Loan.

Financing Activities

During the quarter, SmartStop closed a $200 million CAD (approximately $140.8 million USD as of September 30, 2026) aggregate principal amount of Series C senior unsecured notes, due February 18, 2031 (the “2031 Canadian Notes”). The 2031 Canadian Notes were issued by SmartStop’s operating partnership, SmartStop OP, L.P. The 2031 Canadian Notes bear interest at a rate of approximately 4.32% per annum, payable in cash in equal semiannual installments commencing on February 18, 2027. The 2031 Canadian Notes are rated BBB with a Stable Outlook by Morningstar DBRS and BBB with a Stable Outlook by Kroll Bond Rating Agency.

During the quarter, SmartStop utilized its at-the-market equity program to sell approximately 2.4 million shares on a forward basis at an initial gross average price of $32.01 per share for gross proceeds of up to approximately $78.1 million. SmartStop anticipates settling the forward shares in the fourth quarter of 2026, consistent with the timing of the above investment activity.

Third Party Management

As of the quarter ended September 30, 2026, SmartStop managed approximately 230 stores, representing approximately 17.0 million net rentable square feet on its third-party platform.

Managed REIT Platform Update

As of September 30, 2026, SmartStop, through an indirect subsidiary, served as the sponsor of Strategic Storage Growth Trust III, Inc. (“SSGT III”), Strategic Storage Trust VI, Inc. (“SST VI”), and Strategic Storage Trust X (“SST X” together with SSGT III and SST VI, the “Managed REITs”). Subsequent to September 30, 2026, SST VI acquired SSGT III, as described below. SmartStop receives asset management fees, property management fees, acquisition fees, and other fees, as applicable and receives substantially all of the tenant protection program revenue earned by the Managed REITs, which had a combined portfolio of 52 operating properties and approximately 43,000 units and 4.6 million rentable square feet at quarter end. Assets under management for the Managed REITs was approximately $1.0 billion at quarter end.

Effective on November 1, 2026, and pursuant to a definitive Agreement and Plan of Merger (the “SST VI-SSGT III Merger Agreement”), SST VI acquired SSGT III by way of a merger of SSGT III with and into a wholly-owned subsidiary of SST VI, with such subsidiary surviving (the “SST VI-SSGT III Merger”). As a result of the SST VI-SSGT III Merger, each outstanding share of SSGT III common stock or limited partnership interest was converted into the right to receive one share of SST VI common stock or one limited partnership interest in SST VI, as applicable.

As a result of the SST VI-SSGT III Merger, SST VI acquired or assumed all of the real estate, other assets, debt and other liabilities of SSGT III. The assets became subject to the SST VI Advisory Agreement, whose terms are substantially the same as those of the SSGT III Advisory Agreement. The SSGT III Advisory Agreement terminated immediately prior to the closing of the SST VI-SSGT III Merger, as described below, and no further fees will be paid thereunder. Following the SST VI-SSGT III Merger, SmartStop is no longer entitled to receive a subordinated distribution pursuant to the special limited partnership interest it held in SSGT III OP. However, the former SSGT III assets are now subject to the similar special limited partnership interest SmartStop holds in SST VI OP.

Concurrently with the entry into the SST VI-SSGT III Merger Agreement, SSGT III, SSGT III OP, and the SSGT III advisor entered into a termination agreement with respect to the SSGT III Advisory Agreement. Under that agreement, the SSGT III Advisory Agreement terminated immediately prior to the closing of the SST VI-SSGT III Merger. Notwithstanding the disposition fee and related calculations under the SSGT III Advisory Agreement, the termination agreement fixed the amount payable to the SSGT III advisor immediately prior to closing at $2.0 million, which was paid in units of limited partnership interest in SSGT III OP. Pursuant to certain post-merger assignments, these units were exchanged into an equivalent amount of limited partnership interests in SST VI OP.

Eminent Domain Update

On April 27, 2026, the North Carolina Department of Transportation (the “NC DOT”) took the majority of SmartStop's Asheville III property and paid SmartStop approximately $7.0 million, based on the NC DOT's estimated valuation. On July 27, 2026, the NC DOT took approximately 20% of the Asheville IV property and paid SmartStop approximately $1.7 million, based on the NC DOT's estimated valuation. Both of these properties were removed from the 2026 same-store pool during the second quarter of 2026.

Declared Distributions

For the months of September, October and November 2026, SmartStop’s board of directors approved a distribution amount such that all holders of its outstanding common stock will receive a distribution equivalent to an annualized distribution of $1.60 per share. Each monthly distribution was paid, or will be paid, on or about October 15, 2026, November 13, 2026 and December 15, 2026, respectively.

Webcast & Conference Call

Management will host a conference call and webcast to discuss the results on Thursday, November 5, 2026, at 12:00 p.m. Eastern Time. During the call, company officers will review operating performance, discuss recent events, and conduct a question-and-answer period. The question-and-answer period will be limited to registered financial analysts. All other participants will have listen-only capability.

A live webcast of the call will be available in the Investor Relations section of the Company’s website at investors.smartstopselfstorage.com. To access the live webcast, participants are encouraged to visit the site at least 15 minutes before the start time to register and download any necessary software.

Same-Store Facility Results - Three Months Ended September 30, 2026 and 2025

The following table sets forth operating data for SmartStop’s same-store facilities (stabilized and comparable properties that have been included in the consolidated results of operations since January 1, 2025, excluding seven other properties) for the three months ended September 30, 2026 and 2025. SmartStop considers the following data to be meaningful as this allows generally for the comparison of results without the effects of acquisition, dispositions, eminent domain proceedings, development activity, properties impacted by casualty events, lease up properties or similar other such factors (dollars in thousands, except per occupied square foot amounts):

SmartStop’s same-store revenue increased by approximately $1.1 million, or 2.0%, for the three months ended September 30, 2026 compared to the three months ended September 30, 2025, primarily due to an approximately 2.6% increase in annualized rent per occupied square foot and, to a lesser extent, increased administrative and late fees, slightly offset by a decrease in occupancy of approximately 0.4%. SmartStop’s same-store property operating expenses decreased by approximately $0.7 million, or 3.8%, for the three months ended September 30, 2026 compared to the three months ended September 30, 2025, primarily due to decreased property insurance costs, property taxes, and repairs and maintenance expense.

NOI is a non-GAAP measure that SmartStop defines as net income (loss), computed in accordance with GAAP, generated from properties before corporate general and administrative expenses, asset management fees, interest expense, depreciation, amortization, acquisition expenses, tenant protection economics, stock compensation related to SmartStop's IPO Grant and other non-property related income and expense, as applicable. SmartStop believes that NOI is useful for investors as it provides a measure of the operating performance of its operating assets because NOI excludes certain items that are not associated with the ongoing operation of the properties. Additionally, SmartStop believes that NOI (sometimes referred to as property operating income) is a widely accepted measure of comparative operating performance in the real estate community. However, its use of the term NOI may not be comparable to that of other real estate companies as they may have different methodologies for computing this amount. In addition, NOI is not a substitute for net income (loss), cash flows from operations, or other related financial measures, in evaluating SmartStop’s operating performance.

The following table presents a reconciliation of net income (loss) as presented on SmartStop’s consolidated statements of operations to net operating income, as stated above, for the periods presented (in thousands):

Same-Store Facility Results - Nine Months Ended September 30, 2026 and 2025

The following table sets forth operating data for SmartStop’s same-store facilities (stabilized and comparable properties that have been included in the consolidated results of operations since January 1, 2025, excluding seven other properties) for the nine months ended September 30, 2026 and 2025. SmartStop considers the following data to be meaningful as this allows generally for the comparison of results without the effects of acquisition, dispositions, eminent domain proceedings, development activity, properties impacted by casualty events, lease up properties or similar other such factors (dollars in thousands, except per occupied square foot amounts):

SmartStop’s same-store revenue increased by approximately $2.6 million, or 1.6%, for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025, primarily due to an approximately 1.9% increase in annualized rent per occupied square foot and, to a lesser extent, increased administrative and late fees, slightly offset by a decrease in occupancy of approximately 0.3%. SmartStop’s same-store property operating expenses decreased by approximately $1.2 million, or 2.2%, for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025, primarily due to decreased property insurance costs and repairs and maintenance expense.

NOI is a non-GAAP measure that SmartStop defines as net income (loss), computed in accordance with GAAP, generated from properties before corporate general and administrative expenses, asset management fees, interest expense, depreciation, amortization, acquisition expenses, tenant protection economics, stock compensation related to SmartStop's IPO Grant and other non-property related income and expense, as applicable. SmartStop believes that NOI is useful for investors as it provides a measure of the operating performance of its operating assets because NOI excludes certain items that are not associated with the ongoing operation of the properties. Additionally, SmartStop believes that NOI (sometimes referred to as property operating income) is a widely accepted measure of comparative operating performance in the real estate community. However, SmartStop’s use of the term NOI may not be comparable to that of other real estate companies as they may have different methodologies for computing this amount. In addition, NOI is not a substitute for net income (loss), cash flows from operations, or other related financial measures, in evaluating its operating performance.

The following table presents a reconciliation of net income (loss) as presented on SmartStop’s consolidated statements of operations to net operating income, as stated above, for the periods presented (in thousands):

The following tables present a reconciliation of same-store as reported net operating income to same-store constant currency net operating income (dollars in thousands):

Reconciliation of the Range of Estimated GAAP Fully Diluted Net Income Per Share and OP Unit to Estimated Fully Diluted FFO, As Adjusted Per Share and OP Unit

The following table presents a reconciliation of the range of estimated GAAP net income (loss) per share to estimated fully diluted FFO, as adjusted per share, as provided in SmartStop’s Outlook for Full Year 2026:

Reconciliation of Estimated GAAP Net Income to Estimated Same-Store Net Operating Income

The following table presents a reconciliation of the range of estimated GAAP net income (loss) to total same-store net operating income, as provided in SmartStop’s Outlook for Full Year 2026 (in thousands):