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SmartStop Self Storage REIT, Inc. (SMA)·Q1 2025 Earnings Summary

Executive Summary

  • SmartStop’s first quarter as a listed REIT showed resilient operations: total revenues were $65.45M, same-store revenue grew 3.2% YoY, and ending occupancy reached 93.0% .
  • Non-GAAP profitability held firm: FFO, as adjusted per share and OP unit (diluted) was $0.41; management introduced inaugural FY25 guidance with FFO, as adjusted of $1.84–$1.92 per diluted share .
  • Balance sheet and cost of capital improved post-IPO: $931M gross raised and $875.6M net proceeds used to redeem preferreds, reduce revolver, and repay acquisition facility; senior facility and 2032 notes flipped to unsecured with lower spreads .
  • Versus Street: Q1 revenue beat consensus ($62.85M actual in S&P vs $54.50M est.; definitional differences vs 8-K total revenue), EPS slightly missed (-$0.309 vs -$0.295 est.), and FFO/share tracked in line at ~$0.41*.

What Went Well and What Went Wrong

What Went Well

  • Same-store metrics stabilized: revenue +3.2%, NOI +2.3%, average physical occupancy up 50 bps to 92.6%; ending occupancy 93.0% (+100 bps YoY) .
  • External growth momentum: acquired three properties in Q1 for $82.5M and added a Kelowna property post-quarter ($28.3M USD), with nine assets/development sites under contract totaling ~$157.8M .
  • Capital structure catalysts: NYSE listing (April 2), $875.6M net proceeds deployed, and Credit Facility/2032 notes moved fully unsecured, reducing spreads and unused fees; “a significant milestone” per CEO .

What Went Wrong

  • GAAP profitability: net loss to common widened to $(8.41)M and EPS to $(0.35), reflecting higher interest expense and depreciation .
  • Operating cost headwinds: same-store property operating expenses +5.2%, driven by property insurance, taxes, payroll, and repairs/maintenance, compressing same-store NOI growth .
  • Street EPS miss: Primary EPS slightly below consensus (-$0.309 vs -$0.295 est.) despite revenue beat; highlights ongoing rate/expense pressures in the quarter*.

Financial Results

Income Statement Summary and Per-Share Metrics

MetricQ1 2024Q1 2025Q2 2025
Total Revenues ($USD Millions)$57.04 $65.45 $66.82
Net Loss to Common ($USD Millions)$(4.65) $(8.41) $(8.36)
Net Loss per Share (Common/Class A & T) ($)$(0.20) $(0.35) $(0.16)
FFO, as adjusted per share & OP unit – diluted ($)$0.40 $0.41 $0.42

Revenue Breakdown (Q1 comparisons)

Revenue Component ($USD Millions)Q1 2024Q1 2025
Self Storage Rental Revenue$50.47 $56.59
Ancillary Operating Revenue$2.19 $2.61
Managed REIT Platform Revenues$2.73 $4.11
Reimbursable Costs from Managed REITs$1.65 $2.14
Total Revenues$57.04 $65.45

Same-Store KPIs and Portfolio Scale

KPIQ1 2024Q1 2025
Same-Store Revenues ($USD Millions)$49.51 $51.12
Same-Store Property Operating Expenses ($USD Millions)$16.52 $17.38
Same-Store NOI ($USD Millions)$32.99 $33.73
Same-Store Avg Physical Occupancy (%)92.1% 92.6%
Ending Occupancy (%) (company commentary)92.0% 93.0%
Annualized Rent per Occupied Sq Ft ($)$19.45 $19.84
Total Facilities (incl. non same-store)154 164
Total Rentable Square Feet (Millions)11.93 12.83

Constant Currency (Canadian same-store subset, Q1)

MetricQ1 2024Q1 2025 (as reported)FX ImpactQ1 2025 (constant currency)
Revenues ($USD Millions)$49.51 $51.12 $0.34 $51.46
Expenses ($USD Millions)$16.52 $17.38 $0.11 $17.49
NOI ($USD Millions)$32.99 $33.73 $0.23 $33.96
YoY % (Constant Currency)———Rev +3.9%, Exp +5.9%, NOI +3.0%

Guidance Changes

MetricPeriodPrevious Guidance (May 7, 2025)Current Guidance (Aug 6, 2025)Change
Same-Store Revenue Growth (USD)FY 20251.5%–3.5% 1.8%–2.8% Narrowed; midpoint slightly lower
Same-Store Operating Expense GrowthFY 20254.8%–6.3% 4.3%–5.3% Lowered (favorable)
Same-Store NOI Growth (USD)FY 20250.0%–2.2% 0.6%–1.6% Midpoint raised
Same-Store Revenue Growth (Constant Currency)FY 20252.0%–4.0% 2.2%–3.2% Narrowed
Same-Store OpEx (Constant Currency)FY 20255.2%–6.7% 4.7%–5.7% Lowered
Same-Store NOI (Constant Currency)FY 20250.5%–2.7% 1.0%–2.3% Raised
FFO, as adjusted per diluted shareFY 2025$1.84–$1.92 $1.85–$1.93 Midpoint +$0.01
Non Same-Store NOI (ex. TPP)FY 2025NA $18.75–$19.95M Added; favorable
Tenant Protection Program Net RevenueFY 2025$8.73–$8.85M $8.80–$9.20M Raised
Managed REIT EBITDAFY 2025$10.75–$11.25M $11.50–$12.50M Raised (new Orchard deal, higher AUM)
G&A (ex IPO equity comp/transactional)FY 2025$29.6–$30.4M $30.5–$31.3M Higher (performance-based comp)
Interest ExpenseFY 2025$62.75–$64.25M $60.70–$62.70M Lower (Maple bond, unsecured spreads)
Interest IncomeFY 2025$3.50–$4.00M $4.10–$4.40M Raised
AcquisitionsFY 2025$325–$425M $350–$400M Narrowed; midpoint unchanged
Monthly DividendMay 2025$0.13589041/sh (annualized $1.60) Jul 2025 $0.1359/sh; Jun $0.1315/sh Affirmed monthly cadence

Earnings Call Themes & Trends

TopicPrevious Mentions (Q-2 and Q-1)Current Period (Q1 2025)Trend
AI/Technology InitiativesPrior two quarters not available in corpusIdentified ~37 AI use cases; implementing AI over data warehouse for machine-learning driven pricing Increasing investment; strategic priority
Supply/Demand NormalizationPrior two quarters not availableManagement “called the bottom” in Q4; moving rates stabilizing; occupancies at/better than historical; entering rental season from strength Gradual recovery; steady improvement
Rates vs Occupancy StrategyPrior two quarters not availableWeb/move-in rates dynamic; promotions down; optionality to push rate at 93% occupancy entering season Optimizing mix; less discounting
Canada (Toronto/GTA)Prior two quarters not availableOutperformer: Q1 same-store revenue +7% cc; ending occupancy ~93%; durable demand drivers Continuing outperformance
Acquisitions & ClusteringPrior two quarters not availableMid-5% yields; focus on clusters (Houston, Denver); pipeline active Scaling markets; margin leverage
Managed REIT PlatformPrior two quarters not available~$3.9M fees; AUM ~$900M; robust pipeline; Orchard partnership later (Q2) Accretive growth; AUM rising
Macro/Tariffs & HousingPrior two quarters not availableMinimal customer health impact; US housing anemic; demand choppy but improving Cautious optimism

Management Commentary

  • “We are excited to report our first earnings as a publicly traded REIT… same-store revenue growth of 3.2%… occupancy ended the quarter at 93.0%, 100 basis points ahead of last year.” — H. Michael Schwartz, CEO .
  • “We believe 2025 will be incrementally better than 2024… For the first time since spring of 2022, moving rates are stabilizing and occupancies are in line or better than historical averages.” — CEO prepared remarks .
  • “Our technology-driven platform… we have invested an outsized amount of capital… data warehouse making millions of pricing changes monthly.” — CEO prepared remarks .
  • “With the IPO proceeds, we were able to reduce our leverage… net debt to EBITDA under five times… and reduce our cost of capital.” — CEO prepared remarks .
  • “Artificial intelligence… we identified ~37 areas… implementing AI over our data warehouse so we can have machine decisions.” — CEO on AI strategy .

Q&A Highlights

  • April/May cadence: occupancy ended April at 93.1% (+100 bps YoY) and early May at 93.2%; promotions down ~1,300 bps YoY; systems balancing rate vs occupancy .
  • Acquisitions under contract: primarily Houston (five assets) plus Denver; clustering to lift margins ~300 bps in 10+ property markets .
  • Rate strategy: optionality to push rates with strong occupancy; achieved move-in rates down in Q1 but stabilizing; lower concessions .
  • Toronto specifics: Q1 move-in rates down ~3% cc; April down ~9% YoY but improving; Canadian portfolio remains an outperformer .
  • Managed REITs: AUM ~900M; diversified capital pools; competitive fundraising landscape; continued growth outlook .

Estimates Context

  • Q1 2025 vs S&P Global consensus: Revenue $62.85M actual vs $54.50M estimate (beat); Primary EPS -$0.309 actual vs -$0.295 estimate (slight miss); FFO/share (REIT) est. $0.401* (in line with $0.41 reported) — number of estimates: EPS (2), Revenue (6)*.
  • Note: S&P’s “Revenue” definition may differ from 8-K “Total revenues” ($65.45M) due to inclusion/exclusion of certain line items; we anchor estimate comparisons on S&P Global’s standardized definitions*.
MetricQ1 2025 ConsensusQ1 2025 Actual (S&P)# of Estimates
Revenue ($USD)$54,497,830*$62,849,000*6*
Primary EPS ($)-$0.295*-$0.3086*2*
FFO / Share (REIT) ($)$0.40143*——

Values marked with * retrieved from S&P Global.

Key Takeaways for Investors

  • Operating stabilization: same-store revenue/NOI improved with 93% ending occupancy; Canada remains a relative bright spot .
  • Pricing discipline: fewer promotions and dynamic rate management should support margin resilience through rental season .
  • Accretive external growth: mid-5% going-in yields with clustering in Houston/Denver point to incremental NOI and margin leverage .
  • Deleveraging and capital flexibility: unsecured facilities, Maple bond, and redemption of preferreds lower cost of capital and create runway for growth .
  • FY25 guidance improved at the margin: higher FFO, as adjusted midpoint; lower interest expense; higher managed REIT EBITDA .
  • Dividend visibility: monthly distributions reaffirmed around $0.1315–$0.1359 per share through mid-year, supporting income profile .
  • Near-term trading: watch rental season cadence, rate vs occupancy mix, and acquisition closings; Street revisions likely modestly positive on revenue/FFO, with EPS constrained by depreciation/interest headwinds .

Additional Press Releases and Corporate Actions (Q1 Context)

  • Flip to fully unsecured credit facility and 2032 notes; commitment reduced to $600M; spreads/unused fees lowered .
  • Dividend declarations: May record date $0.13589041/sh (annualized ~$1.60); June/July monthly distributions at $0.1315–$0.1359 .
  • Termination of SRP (share redemption program) and DRP (distribution reinvestment plan) post-listing .

Prior Quarters Search Note

  • We searched for the prior two quarters’ earnings materials (Q3 and Q4 2024) and did not find them in the current corpus [ListDocuments queries returned none]. As a trend proxy, we included Q2 2025 results and call to contextualize trajectory – –.