Executive Summary

Q3 2025 delivered sector-leading same-store revenue growth of 2.5% with average occupancy at 92.6%. Total revenues were $70.43 million, GAAP EPS was $0.09, and FFO, as adjusted per diluted share and OP unit, was $0.47 .
Guidance tightened: FY25 FFO, as adjusted per share narrowed to $1.87–$1.91 (from $1.85–$1.93 prior), same-store revenue 1.9–2.3%, OpEx 4.0–4.4%, and NOI 0.9–1.1%. Acquisitions guidance narrowed to $365–$385 million .
Balance sheet actions: CAD $200 million Maple Bond at ~3.89% and CAD $160 million JV term loan at 3.87% fixed; >99% of debt fixed pro forma, and Canadian FX cash flows naturally hedged .
Strategic expansion: Closed the Argus Professional Storage Management combination, launching SmartStop into third-party management with flexible branding options; integration is progressing with no employee turnover and no unexpected attrition .
Potential stock reaction catalysts: Inclusion in the MSCI US REIT Index (RMZ), implied Q4 FFO, as adjusted per share of ~$0.56 midpoint, and a disciplined occupancy strategy for slow season .

What Went Well and What Went Wrong

What Went Well

Same-store performance: “Sector leading revenue growth of 2.5% and average occupancy of 92.6%” with constant currency growth of 2.6% revenue/1.6% NOI; property insurance declined 4.5% YoY helping OpEx control .
Capital markets execution: CAD $200 million Maple Bond at ~3.89% and oversubscribed; JV term loan at 3.87% reduced weighted average JV debt cost and raised excess proceeds (CAD $27 million) .
Strategic platform scale: Argus deal immediately expands third-party management and clustering in multiple markets; “we have not experienced any attrition” and launched a $4.8 million preferred investment with a 10% coupon .

What Went Wrong

One-time expenses and tenant default: ~~$0.825 million G&A from performance-based equity units (about $0.015 per share impact), and unexpected default by an industrial tenant (~~$0.007 per share impact) pressured FFO vs internal expectations .
Rate environment and concessions: Achieved move-in rates down ~8.5% YoY in Q3; concessions usage increased modestly into Q4, though still below last year; management focused on maintaining occupancy through slow season .
Same-store cost pressure: Same-store OpEx increased 4.5% YoY in Q3 (property taxes, payroll), tempering same-store NOI growth to 1.5% .

Financial Results

Core Financials vs Prior Quarters

Metric	Q1 2025	Q2 2025	Q3 2025
Total Revenues ($USD Millions)	$65.45	$66.82	$70.43
GAAP EPS ($)	$(0.35)	$(0.16)	$0.09
FFO, as adjusted per share & OP unit – diluted ($)	$0.41	$0.42	$0.47

Revenue Segment Breakdown

Revenue Line ($USD Millions)	Q1 2025	Q2 2025	Q3 2025
Self Storage Rental Revenue	$56.59	$58.16	$61.77
Ancillary Operating Revenue	$2.61	$2.73	$2.83
Managed REIT Platform Revenues	$4.11	$4.04	$3.84
Reimbursable Costs from Managed REITs	$2.14	$1.90	$2.00
Total Revenues	$65.45	$66.82	$70.43

KPIs and Same-Store Operating Metrics

KPI	Q1 2025	Q2 2025	Q3 2025
Same-Store Revenue Growth (%)	3.2%	0.4%	2.5%
Same-Store OpEx Growth (%)	5.2%	3.5%	4.5%
Same-Store NOI Growth (%)	2.3%	(1.1%)	1.5%
Same-Store Avg Occupancy (%)	92.6%	93.1%	92.6%
Annualized Rent per Occupied Sq Ft ($)	$19.84	$19.89	$20.35

Results vs Wall Street Consensus (S&P Global)

Metric	Consensus	Actual	Beat/Miss
Primary EPS (Q3 2025)	$0.076*	$0.103*	Beat
Revenue (Q3 2025)	$69.88M*	$68.14M*	Miss (slight)

Values retrieved from S&P Global.*
Note: Company-reported total revenues for Q3 were $70.43M ; S&P’s “actual revenue” may reflect a standardized definition differing from company total.

Guidance Changes

Metric	Period	Previous Guidance (Aug 6, 2025)	Current Guidance (Nov 5, 2025)	Change
FFO, as adjusted per share (diluted)	FY 2025	$1.85–$1.93	$1.87–$1.91	Tightened (midpoint maintained; narrowed)
Same-Store Revenue Growth (%)	FY 2025	1.8–2.8%	1.9–2.3%	Narrowed
Same-Store OpEx Growth (%)	FY 2025	4.3–5.3%	4.0–4.4%	Lowered
Same-Store NOI Growth (%)	FY 2025	0.6–1.6%	0.9–1.1%	Raised (midpoint)
Acquisitions ($)	FY 2025	$350–$400M	$365–$385M	Narrowed
Interest Expense ($)	FY 2025	$60.7–$62.7M	$59.8–$60.5M	Lowered
Managed REIT EBITDA ($)	FY 2025	$11.5–$12.5M	$11.8–$12.3M	Slightly narrowed

Management highlighted drivers including Maple Bond execution, higher managed REIT EBITDA, higher G&A from performance units, and reduced non-same-store NOI due to the industrial tenant .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 & Q2)	Current Period (Q3)	Trend
Technology & Revenue Management	Stabilization of rates; reduced concessions; rising web traffic; algorithmic pricing gains	Highest-ever lead conversion; SmartPay adoption; ~50K app downloads; continued ECRI without attrition	Improving
Macro/Tariffs/Housing	Macro uncertainty; demand choppiness; housing anemic but operators more sophisticated	“Choppy” demand; normalized rental season; lock-up expiration volatility normalized	Gradual stabilization
Canada/GTA Dynamics	GTA outperformance; 2% constant-currency growth; diversified into top metros	GTA: 1.4% constant-currency same-store growth; JV assets ~5.3% growth; occupancy 92.5%	Mixed growth; JV stronger
External Growth/Acquisitions	~$232M YTD as of Q2; pipeline in U.S./Canada; mid-5% cap rates	~$318M YTD by Q3; additional Orlando acquisition; prudent pace tied to leverage	Continuing, disciplined
Balance Sheet & Financing	IPO proceeds to delever; inaugural CAD 500M Maple at 3.91%	CAD 200M Maple at ~3.89%; CAD 160M JV term loan at 3.87%; >99% fixed debt	Strengthening
Third-Party Management (Argus)	Initiated exploration; clear intent to enter 3PM	Closed Argus; menu of branding options; integration underway; lending capability	Expanding

Management Commentary

CEO framing of quarter and platform: “We posted a strong third quarter with sector-leading same-store revenue growth of 2.5% and average occupancy of 92.6%... FFO as adjusted per share of 47 cents” .
Strategy on Argus: “This deal immediately jump-starts our third-party management strategy… doubles our data sets… provides a captive pipeline of potential acquisition targets” .
IR/CFO on operations: “Property taxes were up 4.8%… property insurance down 4.5%… web rates down 3.9% YoY; achieved move-in rates down 8.5%” .
Balance sheet confidence: “Over 99% of our outstanding debt was fixed as of quarter end … we have fully hedged our Canadian FX exposure from a cash flow standpoint naturally” .

Q&A Highlights

Acquisition pacing and leverage: Target leverage 5–6x; ~10% asset base growth desirable but equity issuance must be accretive .
Argus integration: Flexible menu (SmartStop brand, legacy brand on SmartStop platform, private label); early owner reception positive; 60–90 days for technology integration .
Cluster scale benefits: Markets with 10+ properties see ~300 bps higher margins; Toronto (~35 properties) ~500 bps above portfolio .
Q4 run-rate context: Implied Q4 FFO, as adjusted per share ~$0.56 on ~59.2M diluted shares; G&A seasonality suggests ~$7M is low, $9M is high—“somewhere in the middle” .
Occupancy strategy: Emphasis on maintaining occupancy into slow season; October ended at 92.5%, up 20 bps YoY and 10 bps vs September .

Estimates Context

EPS beat: Primary EPS of ~$0.103 vs consensus ~$0.076; driven by solid operations despite one-time G&A and industrial tenant impact .
Revenue near consensus: S&P “actual revenue” ~$68.14M vs consensus ~$69.88M, while company-reported total revenue was $70.43M—differences reflect definitional standards in data providers .

Values retrieved from S&P Global.*

Key Takeaways for Investors

Operational momentum: Same-store revenue +2.5% with occupancy stable at 92.6% and rents per occupied sq ft up 0.7% YoY—evidence of platform-driven pricing and lead conversion improvements .
Quality capital structure: Maple Bond and JV refinancing lowered interest costs, fixed >99% of debt, and naturally hedged Canadian cash flows—reducing earnings volatility .
Guidance credibility: Tightening FY25 ranges with a maintained midpoint reflects improved visibility; modest upward shift in same-store NOI midpoint despite OpEx headwinds .
Strategic optionality: Argus integration expands third-party management with flexible brand models and opens lending adjacency—enhancing data scale and future clustering-driven margin potential .
Near-term setup: Implied Q4 FFO, as adjusted per share of ~$0.56 (midpoint) and occupancy-driven strategy through slow season support estimate momentum into 2026 .
Watch items: Performance unit G&A and the industrial tenant default were one-time drags; property tax/premium trends and concessions usage into Q4 warrant monitoring .
Catalysts: RMZ inclusion, continued acquisitions within leverage guardrails, and JV/3PM scaling could drive incremental investor attention and potential re-rating .

Appendix: Additional Q3 Developments and Context

Financing activities: CAD 200M Maple Notes due 2030 at 3.89%; CAD 160M RBC JV Term Loan III at 3.87% with 30-year amortization; proceeds used to refinance higher cost debt .
External growth: ~$70.3M USD Alberta portfolio; $15.3M Rahway, NJ; subsequent $15.3M Winter Garden, FL; cumulative YTD acquisitions ~$318M .
Declared distributions: $0.1315/share (September), $0.1359/share (October) .
Managed REIT platform: AUM ~$972.1M at quarter-end; gross fees ~$3.6M in Q3; interest income $1.5M from loans and preferreds .

All company figures and quotes cited from Q3 2025 Form 8-K and earnings call transcripts: ; and Q3 2025 call: . Prior-quarter context: Q2 2025 8-K/call , and Q1 2025 8-K . Argus press release: .

Values retrieved from S&P Global for consensus/actual estimates: EPS and revenue for Q3 2025.*

SmartStop Self Storage REIT, Inc. (SMA)·Q3 2025 Earnings Summary