Matt Kornack's questions to SmartStop Self Storage REIT (SMA) leadership • Q2 2025
Question
Matt Kornack of National Bank Financial asked if low-cap-rate transactions in Toronto affect their acquisition strategy and if they have considered capital recycling. He also asked for key forward-looking indicators for a U.S. storage market rebound.
Answer
CEO H. Michael Schwartz stated they are focused on long-term growth in Canada, not short-term sprints influenced by low-cap deals. CFO James Barry described their Maple Bond issuance as a form of capital recycling, leveraging the Canadian portfolio at low rates to fund higher-yielding U.S. acquisitions. For U.S. indicators, Schwartz pointed to the normalization of new supply and the company's own operational sophistication as key factors for future performance, even without a full housing recovery.