Matt Kornack's questions to SmartStop Self Storage REIT Inc (SMA) leadership • Q2 2025
Question
Matt Kornack from National Bank Financial asked if very low cap rate transactions in Toronto were making acquisitions difficult and if capital recycling was being considered. He also asked for a key forward-looking indicator for a rebound in the U.S. market.
Answer
CEO H. Michael Schwartz acknowledged the low cap rates but stated the company is in a growth mode in Canada, not a recycling mode, viewing it as a 'marathon.' CFO James Barry positioned the Maple Bond issuance as a form of capital recycling, leveraging the Canadian portfolio to fund U.S. deals. For a U.S. rebound, Schwartz identified supply absorption as the key indicator, noting that the current slow recovery will keep new development muted, a long-term positive for the sector.