Executive Summary

Q2 2025 delivered stable operations with same-store revenue up 0.4% YoY, average occupancy at 93.1% (+90 bps YoY), and FFO, as adjusted per diluted share of $0.42; management raised full-year FFO, as adjusted guidance midpoint by $0.01 to $1.89 and narrowed several guidance ranges .
Revenue came in at $66.8M, ahead of S&P Global consensus ($62.3M), while GAAP EPS was a loss of $0.16 vs a small positive consensus; definitional differences (company “total revenues” vs standardized revenue and “Primary EPS”) contribute to variance—nonetheless, the print was a revenue beat and an EPS miss relative to S&P consensus *.
Balance sheet and funding catalysts: $931M IPO and CAD500M Maple Bond at 3.91% (hedged to 3.85%) lowered funding costs, flipped facilities to unsecured, and set up ~$2M quarterly accretion as these proceeds refinanced higher-cost debt and funded mid-5% yield acquisitions; ratings at DBRS BBB (stable) and KBRA BBB (stable) support access to capital .
External growth is tracking to guidance: $232M acquisitions YTD through June, with ~$70M CAD portfolio targeted to close late August and acquisitions narrowed to $350–$400M for FY25 (midpoint unchanged at $375M) .
Near-term stock catalysts: guidance raise, funding accretion from Maple Bond and unsecured revolver, and evidence of rate stabilization with lower concessions; watch for late-August Canada portfolio close and October 1 lock-up expiry for retail shareholders (potential recycling) .

What Went Well and What Went Wrong

What Went Well

“We posted a strong second quarter… average occupancy 93.1% and FFO as adjusted per share of $0.42” with guidance midpoint for FFO, as adjusted raised; same-store NOI guidance maintained at midpoint .
Capital formation and cost of capital improvements: $931M IPO, CAD500M Maple Bond at 3.91% (3.85% effective), facilities flipped to unsecured, revolver pricing stepped down ~65 bps; ratings confirmed/raised (DBRS BBB, KBRA BBB) .
Rate stabilization with materially reduced concessions: web rates +2.4% YoY; achieved move-in rates down a modest 2.5% YoY; concessions down ~20–25% YoY; July revenue growth re-accelerating to ~2% YoY with improving August trends early in the month .

What Went Wrong

June demand was weaker than anticipated, forcing more competitive pricing and modest pressure on move-in rates; drove tightening/lowering of the top end of same-store revenue growth guidance range (now 1.8–2.8%) .
Property operating expenses rose faster than revenue (taxes +7.8%, insurance +5.9%), resulting in same-store NOI down 1.1% YoY for Q2 .
Reported GAAP net loss widened YoY (+$4.5M) with Q2 loss per share at -$0.16; transactional and non-recurring items weighed on GAAP, though FFO, as adjusted remained healthy at $0.42 .

Financial Results

Metric	Q1 2025	Q2 2025
Total Revenues ($USD Millions)	$65.449	$66.816
GAAP EPS (Basic & Diluted, Common) ($)	-$0.35	-$0.16
FFO, as adjusted per diluted share & OP unit ($)	$0.41	$0.42
Same-store NOI Growth YoY (%)	2.3%	-1.1%
Same-store Average Occupancy (%)	92.6%	93.1%
Annualized Rent per Occupied Sq Ft ($)	$19.84	$19.89

Actual vs S&P Global Consensus (Q2 2025):

Metric	Company Actual	S&P Global Consensus	Surprise
Revenue ($USD Millions)	$66.816	$62.305*	Beat
GAAP EPS ($)	-$0.16	$0.00401*	Miss

Note: S&P Global “Revenue” and “Primary EPS” may differ from company-defined “total revenues” and EPS presentation. Values retrieved from S&P Global.*

Same-Store vs Non Same-Store (Q2 YoY):

Metric	Q2 2024	Q2 2025	YoY Change
Same-store Revenue ($000s)	$51,437	$51,637	+0.4%
Same-store Property OpEx ($000s)	$16,744	$17,327	+3.5%
Same-store NOI ($000s)	$34,693	$34,310	-1.1%
Non same-store Revenue ($000s)	$1,515	$6,837	N/M
Non same-store OpEx ($000s)	$795	$2,908	N/M
Non same-store NOI ($000s)	$720	$3,929	N/M
Average Physical Occupancy (Total) (%)	91.8%	92.8%	+1.0%
Annualized Rent/Occupied Sq Ft (Total) ($)	$20.01	$19.99	-0.1%

Selected KPI Trajectory:

KPI	Q1 2025	Q2 2025
Web Rates YoY (%)	-5%	+2.4%
Achieved Move-in Rates YoY (%)	-6.8%	-2.5%
Concessions YoY (%)	-30% (April)	-20–25%
Canada Same-store Revenue Growth (Constant Currency)	3.9%	0.5%

Guidance Changes

Metric	Period	Previous Guidance (May 7, 2025)	Current Guidance (Aug 6, 2025)	Change
Same-store Revenue Growth (USD translated)	FY 2025	1.5%–3.5%	1.8%–2.8%	Tightened; lowered top end
Same-store Operating Expense Growth	FY 2025	4.8%–6.3%	4.3%–5.3%	Lowered
Same-store NOI Growth	FY 2025	0.0%–2.2%	0.6%–1.6%	Narrowed; midpoint slightly higher
FFO, as adjusted per diluted share	FY 2025	$1.84–$1.92	$1.85–$1.93	Raised ~$0.01 at midpoint
Managed REIT EBITDA	FY 2025	$10.75–$11.25M	$11.5–$12.5M	Raised
General & Administrative	FY 2025	$29.6–$30.4M	$30.5–$31.3M	Raised modestly
Interest Expense	FY 2025	$62.75–$64.25M	$60.7–$62.7M	Lowered
Interest Income	FY 2025	$3.5–$4.0M	$4.1–$4.4M	Raised
Acquisitions	FY 2025	$325–$425M	$350–$400M	Narrowed; midpoint unchanged
Non same-store NOI	FY 2025	N/A	$18.75–$19.95M	New disclosure
Monthly Distribution per Share	June/July 2025	$0.1315 (June)	$0.1359 (July)	Raised MoM

Earnings Call Themes & Trends

Topic	Previous Mentions (Q-2, Q-1)	Current Period (Q2 2025)	Trend
AI/Technology initiatives	Defined AI roadmap (37 use cases), ML over data warehouse; millions of monthly pricing changes	Continued focus on proprietary revenue management and digital platform efficiencies	Advancing
Rate environment & promotions	Q1: rates stabilizing; promotions down ~1,300 bps YoY (April)	Web rates +2.4% YoY, move-in -2.5% YoY; concessions down ~20–25% YoY; July revenue +~2% YoY	Stabilizing with less discounting
Macro/tariffs/housing	Housing muted; supply-driven recovery; normalization expected; Canada broader resilience	June soft patch; no material tariff impact observed; demand improving vs 2019	Cautiously constructive
Canada (Toronto)	Q1: 7% same-store revenue growth (cc), occupancy ~93%	Q2: 2% same-store revenue growth in Toronto (cc); rentals strong despite recessionary feel	Outperform vs U.S., moderating comps
Managed REIT platform	AUM ~$900M; fee growth; DST programs	AUM ~$974M; new distribution via Orchard; lower cost deal improved margins	Strengthening
External growth/clustering	Q1 pipeline in Houston/Denver; mid-5% yields	$150M Q2 acquisitions; Canada 5-pack late Aug; focus on clustering for 300 bps margin uplift	Executing

Note: Q-2 (Q4 2024) documents were not available in our set; trends summarized using Q1 2025 and Q2 2025 documents.

Management Commentary

“We posted a strong second quarter with… average occupancy 93.1% and FFO as adjusted per share of $0.42… We maintained our full year 2025 same store NOI guidance… and raised our FFO as adjusted per share guidance” — H. Michael Schwartz .
“We raised CAD500 million with our inaugural Maple Bond… at a sub-four percent coupon… [which] serves to naturally hedge our Canadian FX exposure, term out our floating rate debt… and ladder out our debt maturity schedule” — James Barry .
“Concessions are down about 25% year over year… advertising lever a lot less… revenue growth in July… pushing 2%” — David Corak .
“The market has bottomed… recovering… slow, steady… not a hockey stick” — H. Michael Schwartz .

Q&A Highlights

Guidance bridge: ~$2M quarterly accretion from Maple Bond proceeds (refinancing higher-cost CAD loan, funding mid-5% yield acquisitions, revolver paydown); lower revolver spreads, expected SOFR decline; G&A run-rate ~$1M/quarter lower vs Q2 noise; JV recap to lower high-5% rates .
July/August trends: July occupancy 92.8% (+80 bps YoY), concessions down ~25% YoY; July revenue +~2% YoY; early August move-in rates flat YoY, occupancy gap ~90 bps YoY .
Managed REITs: Orchard Securities deal lowers distribution costs and supports higher managed REIT EBITDA guidance; AUM visibility for 2026 will improve in H2 2025 .
Canada operations: Toronto same-store revenue +2% (cc) in Q2; rentals up despite recession-like conditions; structural demand drivers (densification, immigration) support resilience .
Pipeline & clustering: Focus on onesies/twosies in existing clusters (Houston, Alberta) to capture ~300 bps margin uplift; bid-ask stable; Canada buyer pool distinct; disciplined approach persists .

Estimates Context

Q2 2025 S&P Global consensus: Revenue $62.305M; Primary EPS $0.004; actuals: Revenue $64.644M (S&P standardized) vs company-reported total revenue $66.816M; GAAP EPS -$0.16 (company) vs S&P Primary EPS actual -$0.0027, reflecting definitional differences. FFO per share consensus was not available via S&P in our metric set *.
Implications: Revenue beat should support modest upward revisions to FY revenue and FFO, as adjusted; EPS miss is less relevant for REITs given FFO focus, and management raised FFO, as adjusted guidance midpoint *.

Values retrieved from S&P Global.*

Key Takeaways for Investors

Revenue beat vs S&P consensus and raised FY FFO, as adjusted guidance midpoint are positives; expect modest estimate upward revisions on FFO and revenue * *.
Funding actions (Maple Bond, unsecured revolver) and ratings support lower interest expense trajectory and ~$2M quarterly accretion, a clear earnings lever into H2 2025 .
Operational stabilization: occupancy strong, web rates improving, concessions down materially—evidence of pricing power returning without sacrificing occupancy .
Watch near-term catalysts: late-Aug Canada acquisition close, JV recap, and October 1 lock-up expiry which could drive technicals (potential recycling) .
Canada remains an outperformer with structural demand drivers; U.S. demand choppiness persists, but rates and promotions trending favorable—expect gradual recovery, not a “hockey stick” .
Expense pressure (taxes/insurance) warrants monitoring; guidance lowered OpEx growth and raised NOI midpoint, suggesting better cost control outlook .
Trading setup: bias positive on guidance raise and funding accretion; pullbacks tied to macro or technical flows (lock-up) likely opportunities given improving fundamentals and clustered external growth execution .

SmartStop Self Storage REIT, Inc. (SMA)·Q2 2025 Earnings Summary